Alpha Contracting Services, Inc. v. Professional Retail Services, Inc.

CourtSuperior Court of Delaware
DecidedJanuary 9, 2019
DocketK18C-08-034 NEP
StatusPublished

This text of Alpha Contracting Services, Inc. v. Professional Retail Services, Inc. (Alpha Contracting Services, Inc. v. Professional Retail Services, Inc.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Alpha Contracting Services, Inc. v. Professional Retail Services, Inc., (Del. Ct. App. 2019).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

ALPHA CONTRACTING SERVICES, . INC., : C.A. No. Kl 8C-08-034 NEP

In and for Kent County Plaintiff,

V.

PROFESSIONAL RETAIL SERVICES, : INC., and ANN, INC. '

Defendants. wl

Submitted: December 21, 2018 Decided: January 9, 2019

Before the Court is Defendant Ann, Inc.’s (hereinal°cer “Ann”) Motion to

Dismiss and Plaintiff Alpha Contracting Services, LLC’s (hereinafter “Alpha”)

response. Alpha filed its Complaint on August 17, 2018, against Ann and

Professional Retail Services (hereinal°cer “PRS”). In its Complaint, Alpha asserted

four counts: (l) breach of contract; (2) unjust enrichment; (3) quantum meruit; and

(4) violation of 6 Del. C. § 3501 et. seq. Ann’s motion requests dismissal of all

Counts asserted in the Complaint. For the reasons set forth beloW, Defendant Ann’s

motion is DENIED in part and GRANTED in part.

Alpha Contracting Services, lnc. v. Professional Retail Services, lnc., et al C.A. No. K18C-08-034 NEP January 9, 2019

A. Factual Background and Procedural History

The facts recited are those as alleged in Plaintiff’s Complaint.l PRS, as prime contractor for Ann, entered into a contract on April 4, 2018, with Alpha (hereinafter “the Contract”) for renovations at the Ann Taylor Loft Store (hereinaf°cer “the Store”) located in the Tanger Outlets in Rehoboth Beach, Delaware. PRS was hired by Ann to act as general contractor and oversee the work performed at the Store. The scope of the work included furnishing drywall, paint, trim, lumber, mud, hardware, ceiling tiles, equipment, rentals and labor for restoration. The original contract amount was to be between $70,000.00 and $80,000.00; however, PRS approved changes that were in addition to the contracted scope of work in the amount of $4,070.00. Thus, the agreed contract price between Alpha and PRS was $84,070.00. The Contract provided for installment payments to be made upon certain dates and upon completion of certain work. Alpha alleges that it completed all of the contracted work in a timely manner but has been paid only $40,000.00.

On April 19, 2018, Alpha emailed Kathleen Larmour at PRS to inquire as to the payment status of the remaining $44,070.00 owed. Ms. Larmour responded via email on Apn`l 20, 2018, and stated that she disagreed with the project completion percentage and would contact Alpha within a few weeks. On April 25, 2018, Alpha sent a final invoice via first class mail to PRS for $44,070.00. PRS did not pay this

invoice, prompting Alpha to bring the instant suit.

B. Standard of Review On a motion to dismiss, the moving party bears the burden of demonstrating

that “under no set of facts which could be proven in support of its [complaint] would

l Savor, Inc. v. FMR Corp., 812 A.2d 894, 896-97 (Del. 2002) (on a motion to dismiss “all well- pleaded factual allegations are accepted as true”). 2

Alpha Contracting Services, Inc. v. Professional Retail Services, Inc., et al C.A. No. K18C-08-034 NEP January 9, 2019

the [plaintiff] be entitled to relief.”2 Upon this Court’s review of a motion to dismiss, “(i) all well-pleaded factual allegations are accepted as true; (ii) even vague allegations are well-pleaded if they give the opposing party notice of the claim; (iii) the Court must draw all reasonable inferences in favor of the non-moving party; and (iv) dismissal is inappropriate unless the plaintiff would not be entitled to recover

under any reasonably conceivable set of circumstances susceptible of proof.”3

C. Discussion I. Count I: Breach of Contract Claim The parties agree that Alpha seeks no relief against Ann under Count I.

Therefore, Ann’s motion to dismiss is moot as to Count I.

II. Counts II and III: Unjust Enrichment and Quantum Meruit Claims

As to Counts II and Ill of its Complaint, Alpha alleges that Ann was unjustly enriched under the Contract and that Alpha may recover under a theory of quantum meruit. The Court will address the unjust enrichment claim first, followed by the quantum meruit claim.

Pursuant to the Restatement of Restitution, a person who has been unjustly enriched at the expense of another must make restitution to the other person.4 However, “[a] person [i.e., Alpha] who has conferred a benefit upon another [i.e., Ann] as the performance of a contract with a third person [i.e., PRS] is not entitled

to restitution from the other merely because of the failure of performance by the third

2 Daisy Constr. Co. v. W.B. Venables & Sons, Inc., 2000 WL 145818, at *l (Del. Super. Jan. 14, 2000).

3 Savor, 812 A.2d ar 896-97.

4 Restatement of Restitution § 1 (1988).

Alpha Contracting Services, Inc. v. Professional Retail Services, Inc., et al C.A. No. K18C-08-034 NEP January 9, 2019

person.”5 In order to recover under a theory of unjust enrichment, the plaintiff must prove five elements: “(1) an enrichment, (2) an impoverishment, (3) a relation between the enrichment and the impoverishment, (4) the absence of justification, and (5) the absence of a remedy provided by law.”6

Ann asserts two primary arguments against the viability of Alpha’s unjust enrichment claim. First, Ann argues that there is already a remedy at law for Alpha, as it may sue PRS, the other party to the Contract, for damages. Ann asserts that the Contract set forth the work that Alpha was to perform in exchange for money owed by PRS. Because this Contract was entered into between PRS and Alpha, Ann argues that Alpha’s breach of contract claim against PRS is a sufficient remedy at law. Second, Ann asserts that it was not unjustly enriched to the detriment of Alpha, particularly as it paid PRS for the work performed at the Store.

In Delaware, it is well established that a subcontractor is barred from recovery under an unjust enrichment theory where an owner has made full payment to a general contractor.7 “When that occurs, a subcontractor who is not paid by the general contractor cannot complain about the owner’s benefit. The benefit was purchased, and, therefore, its receipt is just.”8 However, this is not the case where an owner has not paid the general contractor. Rather, this Court has permitted recovery for a subcontractor under an unjust enrichment theory where the general

contractor was not paid or was not paid in full.9 ln order for a subcontractor to

5 J.O.B. Const. C0. v. Jennings & Churella Ser'vices, Inc., 2001 WL 985106, at *4 (Del. Super. Aug. 9, 2001) (quoting Restatement of` Restitution § 110); Chrysler Corp. v. Airtemp Corp., 426 A.2d 845, 855 (Del. Super. 1980). 6 Total Care Physicians, P.A. v. O’Hara, 798 A.2d 1043, 1056 (Del. Super. 2001). 7 J.O.B., 2001 WL 985106, at *4 (emphasis added); see also Cohen v. Delmar Drive-In Theater, Inc., 84 A.2d 597, 98 (Del. Super. 1951). 8 J.O.B., 2001 wL 985106, at *4. 9 Ia'. (citing Buila'ers Supply of Delmarva, Inc. v. Manbeck, 1998 WL 442845, at *3 (Del. Super. June 23, 1998); Galvagna v. Marty Miller Construction, Inc., 1997 WL 720463, at *3-4 (Del. Super. Sept. 19, 1997)).

Alpha Contracting Services, Inc. v. Professional Retail Services, Inc., et al C.A. No. K18C-08-034 NEP January 9, 2019

recover in that instance, it must demonstrate an inability to collect under the subcontract combined with the owner’s failure to pay the general contractor.10

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Related

Marta v. Nepa
385 A.2d 727 (Supreme Court of Delaware, 1978)
State v. Pierson
86 A.2d 559 (Superior Court of Delaware, 1952)
Total Care Physicians, P.A. v. O'Hara
798 A.2d 1043 (Superior Court of Delaware, 2001)
Cohen v. Delmar Drive-In Theatre, Inc.
84 A.2d 597 (Superior Court of Delaware, 1951)
Chrysler Corp. v. Airtemp Corp.
426 A.2d 845 (Superior Court of Delaware, 1980)
Gilbane Building Co. v. Nemours Foundation
606 F. Supp. 995 (D. Delaware, 1985)
Savor, Inc. v. FMR Corp.
812 A.2d 894 (Supreme Court of Delaware, 2002)
State v. Tabasso Homes, Inc.
28 A.2d 248 (New York Court of General Session of the Peace, 1942)

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