Allied Erecting & Dismantling Co. v. United States Steel Corp.

76 F. Supp. 3d 691, 2015 U.S. Dist. LEXIS 18162, 2015 WL 630823
CourtDistrict Court, N.D. Ohio
DecidedFebruary 13, 2015
DocketCase No. 4:12-cv-1390
StatusPublished
Cited by2 cases

This text of 76 F. Supp. 3d 691 (Allied Erecting & Dismantling Co. v. United States Steel Corp.) is published on Counsel Stack Legal Research, covering District Court, N.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allied Erecting & Dismantling Co. v. United States Steel Corp., 76 F. Supp. 3d 691, 2015 U.S. Dist. LEXIS 18162, 2015 WL 630823 (N.D. Ohio 2015).

Opinion

MEMORANDUM OPINION AND ORDER

SARA LIOI, District Judge.

Before the Court is plaintiffs motion for reconsideration’ of summary judgment on defendant’s second counterclaim (Doc. No. 178)1 and defendant’s motion to strike the motion for reconsideration as untimely (Doc. No. 182).2

For the reasons set forth herein, defendant’s motion to strike is denied; plaintiffs motion for reconsideration is granted, but, upon reconsideration, the Court adheres to its original decision regarding defendant’s second counterclaim.

I. APPLICABLE LAW

Although plaintiff cited no legal authority or rule under which it brings its motion, “district courts have authority both under common law and Rule 54(b) to reconsider interlocutory orders and to reopen any part of a case before entry of final judgment.” Rodriguez v. Tenn. Laborers Health & Welfare Fund, 89 Fed.Appx. 949, 959 (6th Cir.2004) (citing Mallory v. Eyrich, 922 F.2d 1273, 1282 (6th Cir.1991)). “This authority allows district courts ‘to afford such relief from [interlocutory orders] as justice requires.’ ” Id. (quoting Citibank N.A. v. Fed. Deposit Ins. Corp., 857 F.Supp. 976, 981 (D.D.C.1994) (alteration in original)). “Traditionally, courts will find justification for reconsidering interlocutory orders when there is (1) an intervening change of controlling law; (2) new evidence available; or (3) a need to correct a clear error or prevent manifest injustice.” Id. (citing Reich v. Hall Holding Co., 990 F.Supp. 955, 965 (N.D.Ohio 1998)). “This standard obviously vests significant discretion in district courts.” Id. at 959 n. 7.

II. BACKGROUND AND ARGUMENTS

Plaintiff Allied Erecting and Dismantling Co., Inc. (“Allied”) has performed work as an industrial dismantling contractor for defendant United States Steel Cor[693]*693poration (“U.S. Steel”) for over 30 years. Their contracts have led to various lawsuits, whose settlement documents have led to further lawsuits. This Court itself has issued several extensive opinions ruling on various matters in the latest round of disputes between these parties over the terms of their multiple, patchwork agreements.

In the most recent ruling, issued on September 30, 2014 (“Opinion” [Doc. No. 174]), the Court ruled, inter alia, that U.S. Steel was entitled to summary judgment on its second counterclaim, which meant that Allied must return to U.S. Steel a $10 Million MFG Advance payment made under their contract. The Court concluded that Allied had provided “little or no consideration” to warrant its retention of the advance payment, notwithstanding the contractual characterization of the advance payment as “non-refundable.” In particular, the Court concluded that, while Allied received its end of the parties’ bargain, namely a $63 Million Profit/Gross Margin, U.S. Steel received none of its end of the bargain, namely, $10 Million in discounted manufacturing work.

Allied’s motion for reconsideration does not argue that there has been a change in controlling law or that this Court made a clear error resulting in manifest injustice. Rather, by way of an affidavit from its long-time accountant, dated November 17, 2014, Allied presents evidence it did not previously present to the Court in support of the very same argument it made at the summary judgment stage of the proceedings, which this Court rejected. (-See Anness Affidavit [Doc. No. 179-6].) Although this evidence may be newly presented, it is not “new”- in the legal sense. “New” evidence is evidence that was not previously available. Newburgh/Six Mile Ltd. P’ship II v. Adlabs Films USA, Inc., 483 Fed.Appx. 85, 94 (6th Cir.2012) (citing CGH Transport, Inc. v. Quebecor World, Inc., 261 Fed.Appx. 817, 824 (6th Cir.2008) (finding that district court did not abuse its discretion in denying motion for reconsideration where allegedly newly discovered evidence was not previously unavailable)).

Even if Allied’s evidence were new, it would not change the Court’s conclusion, which was, and remains, based on the language of the parties’ contracts. Allied’s current argument is that, 'although U.S. Steel did not enjoy any discounted manufacturing work, it did get about $23.5 million in discounted dismantling work and, therefore, “received its bargained-for consideration for the MFG Advance.” (Motion at 8674.) Allied argues now, as it did before, that U.S. Steel had the option of meeting its $63 Million Profit/Gross Margin Commitment to Allied by providing Allied with either dismantling work or manufacturing work, and it chose to award dismantling work. Allied argues that U.S. Steel “received ample consideration under the 2004 AIP” (id. at 8678) because it enjoyed discounts on the dismantling work it awarded to Allied. In the alternative, Allied asserts that the existence or amount of discounts should be a question for a jury. (Id.)

Although U.S. Steel seeks to have the motion for reconsideration stricken as untimely,3 it also argues that the motion is [694]*694not based on any intervening change in law or facts, on errors of law, or on manifest injustice which might justify granting this kind of “extraordinary” and “disfavored” motion. (Opp’n at. 10456.) U.S. Steel correctly asserts that Allied’s current position is inconsistent with the parties’ contracts, which expressly provide that U.S. Steel should be allowed to recoup its $10 Million MFG Advance Payment in the form of discounted manufacturing work performed by Allied, notwithstanding the fact that U.S. Steel was permitted to satisfy its Profit/Gross Margin Commitment to Allied by counting both manufacturing and dismantling work.

Without citing any authority or any portion of the record before this Court, Allied replies:

U.S. Steel has opportunistically exploited language in the 2004 AIP regarding the “consideration” for the MFG Advance in order to make it seem that it eagerly wanted and bargained for discounted “manufacturing work.” Nothing could be further from the truth. What U.S. Steel bargained for was some accounting mechanism to allow it to defer the immediate recognition of a $10 million liability through a “recovery” by the receipt of some value from Allied over time.

(Reply at 10470.)

III. DISCUSSION

This Court could embark on a lengthy analysis as to whether Allied’s motion is timely and/or whether it has met the standard for reconsideration. But the Court concludes there is no need for the simple reason that Allied’s argument ignores the language of the contract between the parties — a contract entered into in settlement of previous disputes.

The 2004 AIP provides, in Section 11(B) dealing with “Long-Term Dismantling and Manufacturing Work”:

(2) Manufacturing Contracts. [Allied] agrees to perform manufacturing work for U.S. Steel under terms, conditions, and work scopes as the parties may agree at [Allied’s] facility in Youngstown, Ohio, under the Manufacturing Contracts. Until the recovery of the MFG Advance Payment, each invoice for work performed under any of the Manufacturing Contracts shall be discounted by [Allied] to permit U.S. Steel to recover the MFG Advance Payment

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Cite This Page — Counsel Stack

Bluebook (online)
76 F. Supp. 3d 691, 2015 U.S. Dist. LEXIS 18162, 2015 WL 630823, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allied-erecting-dismantling-co-v-united-states-steel-corp-ohnd-2015.