Barclay White Skanska, Inc. v. Battelle Memorial Institute

262 F. App'x 556
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 29, 2008
Docket07-1084
StatusUnpublished
Cited by64 cases

This text of 262 F. App'x 556 (Barclay White Skanska, Inc. v. Battelle Memorial Institute) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barclay White Skanska, Inc. v. Battelle Memorial Institute, 262 F. App'x 556 (4th Cir. 2008).

Opinion

GREGORY, Circuit Judge:

This case involves whether a plaintiff contractor presented genuine issues of material fact, sufficient to overcome the owner defendant’s motion for summary judgment. We hold that it did. Accordingly, we reverse the district court’s grant of summary judgment with respect to $300,000 withheld for alleged incomplete work, for the failure to execute the approved change orders, and for general costs; however, we affirm the district court’s grant of summary judgment with respect to the disputed change orders, and remand for proceedings consistent with this opinion.

I.

Barclay White Skanska, Inc. (“Barclay White”), and Battelle Memorial Institute (“Battelle”) negotiated a construction contract, which provided that Battelle would pay Barclay White a contractor’s fee and the cost of work to manage the construction of a technology center. The contract included a “Guaranteed Maximum Price” (“GMP”) of $13,350,00o. 1 Battelle, however, could request an increase in the scope *558 of the work, which would increase Barclay White’s costs, and in turn raise the GMP. This process was done through change orders: Barclay White would submit a request for a change order, 2 Battelle would approve or deny the request, and the GMP would be adjusted accordingly.

During construction, Barclay White submitted several change order requests with regard to the additional work and its costs, which Battelle approved. 3 However, Battelle did not execute the approved change orders and the GMP never increased. 4

In Spring 2003, Barclay White submitted its last payment application, valuing the contract at $13,426,444.72. 5 Conversely, according to Battelle, the company owed Barclay White only $13,224,405. 6 On May 10, 2004, Battelle responded to Barclay White’s last payment application with a letter and final installment payment of $387,315, indicating that after being paid that amount, Barclay White would have been paid in full for its work under the contract. (J.A. 80.) Battelle arrived at the final amount by subtracting the installment payments made to Barclay White in the course of construction, as well as an additional $300,000 for incomplete work, from the total contract amount. See supra note 6.

On June 4, 2004, Barclay White replied with a letter stating it did not accept the check as final payment for the project. Barclay White then filed its original complaint in Maryland court, alleging that Battelle had not paid Barclay White for the costs associated with two particular change orders and that Battelle had withheld the balance of the contract by failing to pay Barclay White the entire GMP. The original complaint contained a breach of contract claim for nonpayment of the change orders 7 for $624,870, a breach of contract *559 claim for $125,595 (the balance between the GMP and the amount paid), an unjust enrichment claim, a quantum meruit claim, and a claim for the violation of the Maryland Prompt Payment Act. Battelle answered, filed a counterclaim, and removed to federal court. 8

Following discovery, both parties moved for summary judgment. The district court rejected Barclay White’s motion and granted Battelle’s motion. Barclay White moved for reconsideration of its breach of contract claim, which the court denied. Battelle and Barclay White then stipulated to dismiss Battelle’s counterclaim without prejudice. Consequently, the district court dismissed the counterclaim. On the same day, Barclay appealed to this Court, challenging the district court’s order and grant of summary judgment, but only with respect to Count I of the Amended Complaint, the breach of contract claim. Thus, the grant of summary judgment on the breach of contract allegation is Barclay White’s sole claim before us on appeal. 9

II.

We review a grant of summary judgment de novo, “employing the same legal standards applied by the district court.” Elliott v. Sara Lee Corp., 190 F.3d 601, 605 (4th Cir.1999) (citing Brogan v. Holland, 105 F.3d 158, 161 (4th Cir.1997)). In evaluating a motion for summary judgment, this Court reviews the evidence in the light most favorable to the nonmoving party, in this case Barclay White. See Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 255, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986).

Summary judgment is proper when there is no genuine issue of material fact to warrant a trial. Fed. R. Civ. P. 56(c); Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). Battelle argues that it is entitled to summary judgment because it has already paid Barclay White all the amounts owed under the contract. Barclay White counters that the district court erred by limiting its breach of contract claim and that it raised genuine issues of material fact. We agree.

A. Scope of Claim

The district court began its analysis by limiting the scope of Barclay White’s breach of contract claim to three change orders. 10 The court then found that Battelle “correctly notes that this disputed evidence clearly shows that [Barclay White] has been paid the appropriate amounts owed under Change Orders one, two, and three,” and that Barclay White “has not presented evidence indicated [sic] that these amounts were not included as part of the $13,224,405 paid by Battelle to Barclay.” (J.A. 2388.) As a result, the court concluded that Barclay White did not present sufficient probative evidence to *560 overcome summary judgment on its breach of contract claim.

Barclay White argues that the district court incorrectly narrowed the breach of contract claim to an allegation that Battelle did not pay for the extra work indicated on the three changes orders. Rather Barclay White maintains that it pled a far more general breach of contract claim, growing out of Battelle’s failure to pay all amounts due under the contract. We agree.

Notice pleading rests on the principle that the defendant should have “fair notice of what [a] plaintiffs claim is and the grounds upon which it rests.” Conley v. Gibson, 355 U.S. 41, 47, 78 S.Ct. 99, 2 L.Ed.2d 80 (1957).

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Bluebook (online)
262 F. App'x 556, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barclay-white-skanska-inc-v-battelle-memorial-institute-ca4-2008.