Bakken Contracting, LLC v. The Venue at Werner Park, LLC

District Court, D. Nebraska·Decided September 17, 2024·No. 8:21-cv-00269·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE DISTRICT OF NEBRASKA

BAKKEN CONTRACTING, LLC, d/b/a BC Contracting,

Plaintiff(s), 8:21CV269 vs.

THE VENUE AT WERNER PARK, LLC,

Defendant/Third-Party Plaintiff,

vs.

WESTERN SURETY COMPANY, MEMORANDUM AND ORDER Third-Party Defendant. REGARDING SNC’S MOTION FOR ATTORNEY FEES AND INTEREST BAKKEN CONTRACTING, LLC, d/b/a BC Contracting, Third-Party Plaintiff, vs. SEAN NEGUS CONSTRUCTION, LLC; R2 PLUMBING, LLC; GRAND RAPIDS POURED WALLS, INC., d/b/a Cherry Valley Concrete; and MAHONEY FIRE SPRINKLER, INC., Third-Party Defendants.

This litigation originated as a lawsuit by a contractor (BCC) to recover the remaining payment allegedly due from a developer (The Venue) for construction of an apartment complex and related structures in Papillion, Nebraska. The litigation eventually embroiled many more parties, counterclaims, crossclaims, and third-party claims. In a Memorandum and Order Regarding Motions for Summary Judgment, the Court among other things granted summary judgment in favor of Sean Negus Construction, LLC, (SNC), a subcontractor on the project, on the causes against SNC in BCC’s third-party complaint, on SNC’s counterclaim against BCC, and on SNC’s crossclaim against the bond company (Western). Filing 196 at 53. This case is now before the Court on SNC’s Motion for Attorney Fee Award and Interest. Filing 197.1 For the reasons stated below, SNC’s Motion for Attorney Fee Award and Interest is granted,

although the Court awards somewhat less for attorney’s fees than SNC claimed. I. INTRODUCTION A. Factual Background The factual background presented here is limited to the context of the claims for attorney’s fees and interest now at issue. This context is drawn primarily from the parties’ various statements of facts in support of and opposition to the various motions for summary judgment, all of which the Court has previously resolved. It involves only facts that are undisputed, unless indicated otherwise. Plaintiff Bakken Contracting, LLC, d/b/a BC Contracting (BCC), is a limited liability company organized and existing under the laws of the state of North Dakota with its principal place of business in Fargo, North Dakota. Filing 168 at 2 (¶ 2). Defendant The Venue is a limited

liability company organized and existing under the laws of the state of Wyoming with its principal place of business in Austin, Texas. Filing 168 at 2 (¶ 1). On August 21, 2018, The Venue and BCC entered into a construction contract (the Contract) for BCC’s construction of an apartment complex located at 120th Street and Ballpark Way in Papillion, Sarpy County, Nebraska, known as The Venue at Werner Park (the Project), financed through the United States

1 SNC’s Motion for Entry of Final Judgment under Rule 54(b), Filing 225, is also pending before the Court, but that Motion will be resolved in a separate order. Department of Housing and Urban Development. Filing 168 at 2 (¶ 4). The Project contains several apartment buildings, a community area, a parking lot with drive lanes, and various other surrounding structures and landscaping. Filing 168 at 2 (¶ 4). Western Surety Company (Western) is a corporation organized and existing under the laws of the state of South Dakota and doing business within the State of Nebraska. Filing 168 at 2 (¶ 3). On August 21, 2018, Western

issued Bond No. 30035690 (the Bond) comprised of a performance bond and a payment bond in the amount of $21,122,904.00, in part performance of the Contract between The Venue and BCC. Filing 168 at 2–3 (¶ 5). To complete its work on the Project, BCC hired various subcontractors. Filing 168 at 3 (¶ 7). One such subcontractor was Sean Negus Construction, LLC, (SNC). BCC alleges, and SNC admits, that SNC is organized under the laws of the state of Nebraska and maintains its principal place of business in Omaha, Nebraska. Filing 45 at 2 (¶ 2); Filing 72 at 2 (¶ 2). In a contract dated September 6, 2018, SNC agreed with BCC to perform work on the Project generally described as site clearing, demolition, mass excavation, earth work, site utilities, rough

grading, and fine grading. Filing 165-1 at 4 (¶ 6); see also Filing 165-1 at 5 (¶ 10) (“SNC contracted with BCC to perform the grading operations for the project and for the installation of site utilities. . . .”). SNC began its operations on the Project in September 2018, performing the mass grading operation and site utilities including storm, sanitary, and water lines, but the parties disputed in this litigation whether SNC’s work was performed in conformance with City of Omaha standards. Filing 165-1 at 5 (¶ 11); Filing 180 at 3 (¶ 11). SNC alleged that it substantially completed its work in December of 2019 and presented its final pay application in June 2020, but BCC withheld the application for final payment and that payment remained unpaid by BCC. Filing 165-1 at 5 (¶ 13). SNC also alleged that after substantial completion of the work required pursuant to the contract, SNC was recalled to the job site for additional work at the request of BCC. Filing 165-1 at 5 (¶ 14). The affidavit of Ryan Schaefer, a Vice President of SNC, states that the last warranty work by SNC on the Project was performed in April 2021. Filing 165-3 at 604 (¶¶ 9-10). BCC disputed that SNC’s work was substantially completed. Filing 180 at 3

(¶¶ 13–14). The parties did not dispute that SNC and BCC executed nine change orders for additional work with BCC increasing its contracted amount from $875,000.00 to a total of $1,025,004.27. Filing 165-1 at 4 (¶ 15). SNC alleged that BCC has paid SNC a total of $999,379.69 leaving an unpaid balance as of June 15, 2020, in the amount of $25,625.11, which has been due and owing from and after June 15, 2020, for work that had been substantially completed in December of 2019. Filing 165-1 at 5 (¶ 16). BCC denied that the work was substantially completed and/or that it was in conformance with the requirements of the subcontract. Filing 180 at 3 (¶ 16). B. Procedural Background On July 20, 2021, BCC filed the Complaint initiating this lawsuit against The Venue.

Filing 1. On September 1, 2021, The Venue filed an Answer and Counterclaim denying BCC’s claims and asserting five counterclaims. Filing 8. On April 20, 2022, BCC filed a Third-Party Complaint against third-party defendants including SNC. Filing 45. BCC’s first three causes of action in its Third-Party Complaint were against SNC alleging, respectively, breach of contract, breach of warranty, and indemnity and/or contribution. Filing 45 at 3–5 (¶¶ 15–27). On August 1, 2022, SNC filed its Answer and Counterclaim against BCC and a Crossclaim against Western alleging BCC’s failure to issue final payment of its retainage plus interest pursuant to the Nebraska Construction Prompt Pay Act and Western’s failure to pay SNC’s claim against the bond. Filing 72 at 6–7 (¶¶ 40–43 and Prayer). There were other counterclaims, crossclaims, third-party claims, and interpleader claims at issue in this litigation, but they need not be described for present purposes. On April 15, 2024, SNC filed its Motion for Summary Judgment. SNC’s Motion for Summary Judgment first sought summary judgment on BCC’s three causes of action against

SNC in BCC’s Third-Party Complaint, that is, BCC’s claims for breach of contract, breach of warranty, and indemnity and/or contribution. Filing 165. SNC also sought summary judgment on its Counterclaim against BCC for payment of the unpaid balance due of $25,625.11 under the contract between SNC and BCC. Filing 165 at 2. Other parties also filed motions for summary judgment. See Filing 166; Filing 170. The Court addressed all three motions for summary judgment in a Memorandum and Order Regarding Motions for Summary Judgment filed on June 28, 2024. Filing 196.

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Bakken Contracting, LLC v. The Venue at Werner Park, LLC, (D. Neb. 2024).

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