Andrews v. Government of the Virgin Islands

25 V.I. 284, 132 F.R.D. 405, 1990 WL 140700, 1990 U.S. Dist. LEXIS 12572
CourtDistrict Court, Virgin Islands
DecidedAugust 14, 1990
DocketCivil Action No. 87-421
StatusPublished
Cited by17 cases

This text of 25 V.I. 284 (Andrews v. Government of the Virgin Islands) is published on Counsel Stack Legal Research, covering District Court, Virgin Islands primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andrews v. Government of the Virgin Islands, 25 V.I. 284, 132 F.R.D. 405, 1990 WL 140700, 1990 U.S. Dist. LEXIS 12572 (vid 1990).

Opinion

WOLIN, District Judge

In times when judicial resources are increasingly at a premium, judicial patience with parties who obstruct rather than assist the prosecution of claims is put to the greater test. Although trial courts must be cautious lest their concerns over crowded dockets override considerations of fairness, in some cases courts cannot and should not tolerate parties’ behavior. This is such a case.

This is an action for breach of contract and tortious interference with a contractual relationship. Before the Court are motions of all defendants for summary judgment under Fed. R. Civ. P. 56(c), or for dismissal under Fed. R. Civ. P. 41(b) for want of prosecution and violation of court rules and court orders. For the reasons that follow, the Court will grant defendants’ motion and dismiss plaintiffs’ complaint with prejudice.

I. BACKGROUND

In December 1983, the Government of the Virgin Islands (“the Government”) and the Virgin Islands Port Authority (“VIPA”) each [287]*287entered into turn-key contracts1 with Rogge General Contractors, G.m.b.h. (“Rogge”) and Rogge General Caribbean Construction Co., Inc. (“Rogge Caribbean”). Under the contracts, Rogge and Rogge Caribbean agreed to construct certain schools and homes for the Government, and a seaport facility and airport for VIPA. To secure payment for these projects, the Government placed in escrow for Rogge and Rogge Caribbean over $54 million, which were the proceeds of bonds issued specifically to finance the projects. Under the escrow agreement, these funds could not be released without both parties’ consent.

By June 1987, nearly three and one-half years after the contract was awarded, Rogge and Rogge Caribbean had not obtained construction financing nor commenced construction of the projects as required under the contracts. As a result of the delay and inability to finance the projects, the Government and VIPA initiated suit against Rogge and Rogge Caribbean (“the Rogge action”), seeking a declaration that the contracts had been breached and were invalid, and also a release of the escrow funds. Rogge and Rogge Caribbean filed an answer and counterclaims, contending that the Government and VIPA had prevented the performance of and breached the agreement. They sought approximately $20 million in compensatory damages.

Plaintiffs Ashley R. Andrews (“Andrews”), a practicing New York lawyer, and Ashley R. Andrews, P.C., his law firm, filed a motion to intervene in the Rogge action in August 1987, claiming an interest in the suit based on several contracts they had entered with Rogge. Andrews sought to uphold the validity of the Turn-key contracts and protect his right to commissions and fees to be paid by Rogge in installments as the Turn-key contracts were performed. All parties opposed the motion, and it was denied by Chief Judge Christian in November 1987, who found that Andrews did not have a sufficient interest in the outcome of the suit. The action was subsequently settled by the parties in November 1988, and dismissed by the court on December 2 of that year. The ruling denying Andrews’ motion to intervene was affirmed by the Third Circuit in an unpublished decision dated December 16, 1988.

[288]*288On November 16,1987, after the motion to intervene in the Rogge action was denied, Andrews commenced this lawsuit based substantially on the same contracts relied upon in the motion to intervene. The complaint contains four counts. Counts one and four assert claims against the Government and the VIPA, and counts two and three assert claims against Rogge and Rogge Caribbean. Count one sought a declaratory judgment that the Turn-key contracts between Rogge and the Government and VIPA were valid and enforceable. The second and third counts assert claims against Rogge and Rogge Caribbean for breach of contract and for payment of services rendered. In the fourth count of the complaint, plaintiffs assert a claim against the Government and VIPA for tortious interference with their contractual relationship with Rogge, seeking compensatory and punitive damages. This count alleges that the Government intentionally terminated its contracts with Rogge and Rogge Caribbean for the purpose of interfering with plaintiffs’ agreements with Rogge. All the defendants filed motions in lieu of answers.

In an order dated December 28, 1987, after considering a joint motion regarding Count Four by the Government and VIPA, Chief Judge Christian granted the Government’s request to strike the punitive damages claim and to limit compensatory damages to $25,000 in accordance with the Virgin Islands Torts Claim Act. In that order, the court reserved decision on VIPA’s request to strike the punitive damages claim asserted against it.

On December 29,1987 Rogge and Rogge Caribbean filed a motion to dismiss or alternatively to stay the prosecution of counts one, two and three. One day later, Andrews filed a motion to consolidate his action with the Rogge action and sought to sequester any settlement funds that resulted in the Rogge action. In a Memorandum and Order dated March 30,1988, Chief Judge Christian: (1) denied the motion to consolidate because of a lack of common issues, and so as not to delay resolution of the Rogge action; (2) denied without prejudice the motion to sequester the settlement funds as unsupported by plaintiffs’ offer of proof; (3) granted the motion to dismiss the first claim substantially for the reasons that leave to intervene was previously denied; and (4) granted the motion to stay proceedings in the matter while the Rogge action was pending.

Apparently prompted by news of an impending settlement between the parties, Andrews renewed the request to sequester settlement funds in the Rogge action in a motion filed on October 31,1988. [289]*289On November 2,1988, Andrews additionally sought a writ attaching those funds. Rogge, Rogge Caribbean, the Government, and VIPA all opposed Andrews’ motions. After hearing oral argument, Chief Judge O’Brien denied relief to Andrews in an order dated November 15, 1988. Two weeks later, in an order dated November 29, 1988, Chief Judge O’Brien vacated the stay of proceedings previously entered in this case. Soon thereafter, in December 1988, all defendants filed answers to Andrews’ complaint. Rogge and Rogge Caribbean additionally filed counterclaims.

From November 29, 1988, the day that the stay in this action was lifted, until July 4,1990, plaintiffs took no affirmative steps to move their case forward. Not a single document was requested by plaintiffs during this period, nor interrogatory served, deposition noticed or pleading or motion filed.

More than one year after the stay was lifted, on December 21, 1989, in an attempt to prompt some action on plaintiffs’ part, the Government and VIPA filed a joint motion for summary judgment or alternatively to dismiss the action for want of prosecution. A similar joint motion for summary judgment or to dismiss was filed by Rogge and Rogge Caribbean in January 1990. The following facts form the basis for the Court’s decision today.

On January 31,1990, after plaintiffs failed to respond to either of the outstanding motions within the time prescribed by court rule, the Government and VIPA filed a motion to deem their outstanding unopposed motion conceded.

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Cite This Page — Counsel Stack

Bluebook (online)
25 V.I. 284, 132 F.R.D. 405, 1990 WL 140700, 1990 U.S. Dist. LEXIS 12572, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andrews-v-government-of-the-virgin-islands-vid-1990.