Barr Inc. v. Studio One, Inc.

146 F. Supp. 3d 375, 2015 U.S. Dist. LEXIS 156007, 2015 WL 7295492
CourtDistrict Court, D. Massachusetts
DecidedNovember 18, 2015
DocketCivil Case No. 15-40056-MGM
StatusPublished
Cited by1 cases

This text of 146 F. Supp. 3d 375 (Barr Inc. v. Studio One, Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Massachusetts primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Barr Inc. v. Studio One, Inc., 146 F. Supp. 3d 375, 2015 U.S. Dist. LEXIS 156007, 2015 WL 7295492 (D. Mass. 2015).

Opinion

MEMORANDUM AND ORDER REGARDING DEFENDANT’S ■ MOTION TO DISMISS

MARK G. MASTROIANNI, United States District Judge

I. Introduction

Barr Incorporated (“Plaintiff’) brings this suit against Studio One, Inc. (“Defendant”) for tortious interference with contractual and advantageous relations and unfair and deceptive trade practices in violation of Massachusetts General Laws Chapter 93A (“Chapter 93A”). Defendant has filed a motion to dismiss Plaintiffs amended complaint, arguing that Plaintiff has failed to state a claim upon which relief can be granted and that Plaintiffs suit is barred under a theory of claim preclusion. For the reasons discussed below, Defendant’s motion to dismiss is denied.

II. Jurisdiction

Plaintiff brings this suit based on diversity jurisdiction pursuant to 28 U.S.C. § 1332(a), as it is a Connecticut corporation and Defendant is a Massachusetts corporation. Plaintiff seeks' damages of $1,000,000, which is well above the amount-in-controversy requirement of $75,000 imposed by 28 U.S.C. § 1332(a). '

III.Facts as Alleged By Plaintiff

Plaintiff is a general contracting firm and Defendant is an architectural firm. (Am. Compl., Dkt. No. 11, ¶¶" 1-2.) This dispute arises out of work done for North-brook Village II, Inc. (“Owner”) in connection with the Northbrook Village II Project in Berlin, Massachusetts (the “Project”). On November 29, 2011, Plaintiff entered into a contract (the “Contract”) with Owner to serve" as general contractor and to perform certain commercial improvements, upgrades, additions, and renovations to the Project. (Id. ¶ 6.) Around the same time, Owner entered into a design and contract administration agreement with Defendant (the “ALA Contract”) to administer the Contract. (Id. ¶ 7.) The Contract identified Defendant a,s- the “Initial Decision Maker” to review certain claims that might arise under the Contract. (Id. ¶ 8.) The Contract required Defendant to “interpret and decide matters concerning performance under, and requirements of, the Contract Documents on written request of either the Owner or [Plaintiff],” and further required Defendant to respond to any such requests in writing .within a reasonable time. (Id. ¶ 10.) Such interpretations and decisions were required to be consistent with the intent of the Contract, made in good faith, and rendered without partiality to either Owner or Plaintiff. (Id. ¶ 11.) Pursuant to the Contract, Owner could not terminate Plaintiff “for cause” absent a certification by Defendant properly made pursuant to the procedural and substantive provisions of the Contract. (Id. ¶ 9.)

Plaintiff began work on the Project in December 2011, and asserts that it “prop[378]*378erly performed” its work and “otherwise performed its Contract obligations.” (Id. ¶ 23.) Prior to execution of the Contract, Owner and Defendant became aware the Project would require changes to the paving and water delivery systems to be provided under the Contract. (Id. ¶¶ 12-21.) Owner and Defendant did not prepare timely alternative designs and obtain all requisite approvals from the United States Department of Housing and Urban Development (“HUD”) for orders associated with these changes, leading to delays on the Project. (Id. ¶¶ 22, 24-29.) The delays pushed back the original completion date of January 29, 2013, and certain HUD approvals were not granted until February 5, 2013. (Id. ¶¶ 25-26.) As a result of such delays, Plaintiff was entitled to an extension of time and an increase in payment under the Contract. (Id. ¶¶ 30-31.) Plaintiff asserted claims under the Contract for an extension of time and an increase in payment, but it states that Owner and Defendant “wrongfully delayed and withheld” all such relief. (Id. ¶¶ 32-33.) Under the AIA Contract, Defendant was not entitled to additional compensation for the delays. (Id. ¶ 34.) Defendant was, however, entitled to additional compensation in the event Plaintiff was terminated by Owner under the Contract. (Id. ¶ 35.)

During the course of Plaintiffs performance of the Contract, Owner encountered funding issues, failed to make complete and timely payments to Plaintiff, and failed to ensure it had sufficient funding to fulfill its own obligations under the Contract. (Id. ¶ 36.) Plaintiff cites a specific example of an “Owner Project meeting” on March 20, 2013 at which “Owner’s fiscal mismanagement and lack of capital was discussed in detail.” (Id. ¶ 37.) Although it is unclear which parties attended this meeting, Plaintiff asserts Defendant knew of the meeting and Owner’s financial troubles. (Id. ¶ 38.)

Plaintiff asserts that, in early 2013, “Owner and [Defendant] colluded to fabricate grounds for terminating [Plaintiff] from the Project.” (Id. ¶ 39.) According to Plaintiff, Owner “decided that the only way to excuse its mismanagement of the Project and avoid paying [Plaintiff] would be to terminate [Plaintiffs] Contract.” (Id. ¶ 40.) To that end, Owner required Defendant to certify that sufficient cause existed to terminate Plaintiff. (Id. ¶ 41.) At the same time, Defendant required Owner to terminate Plaintiff in order to receive compensation for delays on the Project. (Id. ¶ 42.) Defendant ultimately agreed to certify that sufficient grounds existed for terminating Plaintiff, even though Defendant knew no such grounds existed. (Id. ¶ 43.) Owner refused to pay Plaintiff for requisitions between March and May of 2013. (Id. ¶ 44.) Plaintiff claims “Owner asserted its breach of Contract ’ma[de] the bonding company happy,”’ although Plaintiff is not specific regarding what alleged breach this refers to. (Id. ¶ 45.)

On June 3, 2013, Owner advised Plaintiff that it intended to terminate the Contract. (Id. ¶ 46.) According to Plaintiff, Owner and Defendant “fabricated the bases for terminating [Plaintiff] by asserting that [Plaintiff] materially breached the Contract by repeatedly refusing or failing to supply enough properly skilled workers or proper materials,” which is a specific ground for termination provided by the Contract. (Id. ¶ 47; Def. Mem. Supp. Mot. to Dismiss (“Def. Mem.”), Dkt. No. 16, Ex. C § 14.2.1) Plaintiff asserts that Owner and Defendant “knew these allegations were false.” (Am. Compl. ¶ 47.) In support of this claim, Plaintiff states that Defendant knew the HUD delays were not Plaintiffs fault, that Defendant confirmed in writing on January 24, 2013 that the Project delays were not Plaintiffs fault, and that the minutes of the March 20, 2013 [379]*379Owner Project meeting do not indicate any failure to perform on Plaintiff's part. (Id. ¶¶ 48-50.) Plaintiff alleges Defendant caused Owner “to breach the Contract for financial gain and to secure benefits to which it would not otherwise be entitled ... including, among other things, substantial compensation for post-termination services and opportunities that would not have been available to [Defendant] absent the wrongful termination of [Plaintiff].” (Id. ¶ 63.)

The termination notice sent on June 3, 2013 included a “Corrective Action Plan.” (Id.

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146 F. Supp. 3d 375, 2015 U.S. Dist. LEXIS 156007, 2015 WL 7295492, Counsel Stack Legal Research, https://law.counselstack.com/opinion/barr-inc-v-studio-one-inc-mad-2015.