APAC-Mississippi, Inc. v. James Construction Group, L.L.C.

370 F. Supp. 2d 528, 2005 U.S. Dist. LEXIS 8777, 2005 WL 1077557
CourtDistrict Court, S.D. Mississippi
DecidedMay 6, 2005
Docket3:04-cr-00026
StatusPublished
Cited by1 cases

This text of 370 F. Supp. 2d 528 (APAC-Mississippi, Inc. v. James Construction Group, L.L.C.) is published on Counsel Stack Legal Research, covering District Court, S.D. Mississippi primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
APAC-Mississippi, Inc. v. James Construction Group, L.L.C., 370 F. Supp. 2d 528, 2005 U.S. Dist. LEXIS 8777, 2005 WL 1077557 (S.D. Miss. 2005).

Opinion

OPINION AND ORDER

BARBOUR, District Judge.

Before the Court are three motions. The first is Plaintiffs Motion for Partial Summary Judgment, filed December 10, 2004. The second is Defendants’ Motion for Partial Summary Judgment, filed December 13, 2004. The third is Defendants’ Motion to Strike the Affidavit of John Terry May and Exhibits, filed January 5, 2005. Having considered the Motions, Responses, Rebuttals, attachments to each, and supporting and opposing authority, the Court finds that Defendants’ Motion for Partial Summary Judgment is well taken and should be granted. The Court further finds that Plaintiffs Motion for Partial Summary Judgment is not well taken and should be denied, and that Defendants’ *530 Motion to Strike Affidavit of John Terry May and Exhibits should be denied as moot.

I. Background and Procedural History

The Mississippi Department of Transportation (“MDOT”) awarded Defendant James Construction Group, L.L.C., formerly known as Angelo Iafrate Construction, L.L.C. (“Iafrate”), a contract to construct the Nissan — 1-55 interchange in Madison County, Mississippi (“the Project”). As required under Mississippi law, Iafrate obtained a performance and payment bond from co-Defendant National Fire Insurance Company (“National”), and National thereby served as surety to Iaf-rate.

On June 19, 2001, Iafrate entered into a contract (“the Purchase Order”) with Plaintiff APAC-Mississippi, Inc. (referred to as “APAC” or Plaintiff), whereby APAC agreed to supply construction project materials to Iafrate. The dispute in this case centers around payments that Iafrate sent to APAC for those materials.

Miss.Code Ann. § 31-5-27 (referred to as “ § 31-5-27” or “the statute”), as fully recited infra, provides that generally a prime contractor such as Iafrate is to pay a subcontractor such as APAC within fifteen days from when Iafrate receives project monies from MDOT. If a contractor fails to make the necessary payments to a subcontractor within this time frame, § 31-5-7 provides for interest to accrue on the unpaid principal.

APAC contends that Iafrate failed to adhere to the dictates of § 31-5-27. Although at this date Iafrate has paid the entire principal amount due APAC, APAC contends that pursuant to § 31-5-27, it is entitled to $1,173,013.47, in statutory damages. APAC argues that this amount reflects the amount in interest due APAC for payments received outside of the applicable fifteen day time limit for payments.

Iafrate contends that under the terms of the Purchase Order, APAC contracted away its rights under § 31-5-27, and therefore is entitled to no damages.

The parties seek diametrically opposed results. Plaintiff seeks a determination that, as a matter of law, the terms of the Purchase Order do not trump § 31-5-27, and that it is therefore entitled- to § 1,173,-013.47 in statutory damages. Defendant seeks a determination that the claim of APAC under § 31-5-27 must be dismissed because APAC has contractually waived its rights under the statute.

II. Legal Standard

Rule 56 of the Federal Rules of Civil Procedure provides, in relevant part, that summary judgment “shall be rendered forthwith if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” FED. R. CIV. P. 56(c). The United States Supreme Court has held that this language “mandates the entry of summary judgment, after adequate time for discovery and upon motion, against a party who fails to make a sufficient showing to establish the existence of an element essential to that party’s case, and on which that party will bear the burden of proof at trial.” Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); see also Moore v. Mississippi Valley State Univ., 871 F.2d 545, 549 (5th Cir.1989); Washington v. Armstrong World Indus., 839 F.2d 1121, 1122 (5th Cir.1988).

The party moving for summary judgment bears the initial responsibility of informing the district court of the basis for its motion and identifying those portions of the record in the case which it believes demonstrate the absence of a genuine is *531 sue of material fact. Celotex, 477 U.S. at 323, 106 S.Ct. 2548. The movant need not, however, support the motion with materials that negate the opponent’s claim. Id. As to issues on which the non-moving party has the burden of proof at trial, the moving party need only point to portions of the record that demonstrate an absence of evidence to support the non-moving party’s claim. Id. at 323-24, 106 S.Ct. 2548. The non-moving party must then go beyond the pleadings and designate “specific facts showing that there is a genuine issue for trial.” Id. at 324, 106 S.Ct. 2548.

Summary judgment can be granted only if everything in the record demonstrates that no genuine issue of material fact exists. It is improper for the district court to “resolve factual disputes by weighing conflicting evidence, ... since it is the province of the jury to assess the probative value of the evidence.” Kennett-Murray Corp. v. Bone, 622 F.2d 887, 892 (5th Cir.1980). Summary judgment is also improper where the court merely believes it unlikely that the non-moving party will prevail at trial. National Screen Serv. Corp. v. Poster Exchange, Inc., 305 F.2d 647, 651 (5th Cir.1962).

III. Analysis

Section 31-5-27 provides that generally a contractor is to make payment to its subcontractors within fifteen days of receipt of payment from MDOT. Section 31-5-27 specifically states:

When a contractor receives any payment under a public construction contract, the contractor shall, upon receipt of that payment, pay each subcontractor and material supplier in proportion to the percentage of work completed by each subcontractor and material supplier. If for any reason the contractor receives less than the full payment due under the public construction contract, the contractor shall be obligated to disburse on a pro rata basis those funds received, with the contractor, subcontractors and material suppliers each receiving a prorated portion based on the amount due on the payment.

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Related

APAC-Mississippi, Inc. v. James Construction Group, L.L.C.
386 F. Supp. 2d 725 (S.D. Mississippi, 2005)

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Bluebook (online)
370 F. Supp. 2d 528, 2005 U.S. Dist. LEXIS 8777, 2005 WL 1077557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/apac-mississippi-inc-v-james-construction-group-llc-mssd-2005.