Crosby Construction Services Inc v. Rigid Constructors L L C

CourtDistrict Court, W.D. Louisiana
DecidedOctober 30, 2024
Docket6:23-cv-00438
StatusUnknown

This text of Crosby Construction Services Inc v. Rigid Constructors L L C (Crosby Construction Services Inc v. Rigid Constructors L L C) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crosby Construction Services Inc v. Rigid Constructors L L C, (W.D. La. 2024).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAFAYETTE DIVISION

CROSBY CONSTRUCTION CIVIL DOCKET NO. 6:23-cv-00438 SERVICES, INC.

VERSUS JUDGE DAVID C. JOSEPH

RIGID CONSTRUCTORS, LLC, MAGISTRATE JUDGE DAVID J. AYO ET AL

MEMORANDUM RULING Before the Court is a MOTION FOR PARTIAL SUMMARY JUDGMENT (the “Motion”) filed by Defendants, Rigid Constructors, LLC (hereinafter, “Rigid”) and Philadelphia Indemnity Insurance Company (collectively, “Defendants”). [Doc. 25]. Plaintiff, Crosby Construction Services, Inc., (hereinafter, “Plaintiff” or “Crosby”), filed an Opposition on September 24, 2024 [Doc. 34] and Defendants filed a Reply on September 26, 2024 [Doc. 36]. For the following reasons, the Defendants’ Motion is GRANTED. FACTUAL BACKGROUND AND PROCEDURAL HISTORY On August 20, 2020, the United States Army Corps of Engineers (“USACE”) awarded Contract Number W912HY20C0028 (“Prime Contract”) to Rigid as the general contractor for a project referred to as “Unrestricted Procurement for Houston Ship Channel, Texas Lost Lake Placement Area in Harris County, Texas” (“the Project”). [Doc. 34-2, p. 1]. Following execution of the Prime Contract, Rigid entered into a Master Subcontract Agreement (“MSA”) with Crosby on December 15, 2020, for the performance of work on the Project. Id. at p. 2. See [Doc. 9, p. 4]. However, in February 2021, after the MSA was signed, Crosby alleges that it became “aware of a dramatic increase in steel pricing in the range of +15% on structural materials to +40% on piping materials due to the COVID-19 pandemic lockdown[.]” [Doc. 34-2, p.

2]. Crosby promptly notified Rigid of this problem and “inquired as to whether there was a process to submit a change order for commodities fluctuations to the USACE[.]” Id. On February 23, 2021, Rigid “responded by indicating that Crosby may have grounds for requesting a material price adjustment per FAR Clause 52.216- 4[.]”1 [Doc. 25-2, p. 2]. A series of related emails were exchanged between the parties.

[Doc. 25-1, pp. 55-75]. The parties then met to discuss the issue on June 22, 2021, and a subsequent email was sent summarizing this meeting. Id. On September 21, 2021, Rigid contacted USCAE, requesting the Prime Contract be amended to add a “material escalation clause.”2 [Doc. 25-2, p. 3]. On October 4, 2021, USACE denied this request. Id.

1 The federal acquisition regulation system “is established for the codification and publication of uniform policies and procedures for acquisition by all executive agencies. The Federal Acquisition Regulations System consists of the Federal Acquisition Regulation (FAR), which is the primary document, and agency acquisition regulations that implement or supplement the FAR.” 48 C.F.R. § 1.101. Subchapter H of Title 48 of the Code of Federal Regulations “(a) gives instructions for using provisions and clauses in solicitations and/or contracts, (b) sets forth the solicitation provisions and contract clauses prescribed by this regulation, and (c) presents a matrix listing the FAR provisions and clauses applicable to each principal contract type and/or purpose (e.g., fixed-price supply, cost-reimbursement research and development).” 48 C.F.R. § 52.000. (Emphasis added). The parties refer to these clauses as “FAR clauses.”

2 A material escalation clause, such as FAR Clause 52.216-4, “provides for upward and downward revision of the stated contract price upon the occurrence of specified contingencies.” Lakeshore Eng’g Servs., Inc. v. United States, 110 Fed. Cl. 230, 241 (2013), aff’d, 748 F.3d 1341 (Fed. Cir. 2014). On April 4, 2023, Crosby, filed this lawsuit against Defendants, asserting claims under the Miller Act3 and breach of contract under state law. Plaintiff alleged jurisdiction for its Miller Act Claim pursuant to 40 U.S.C. § 3133(b)(3), and

supplemental jurisdiction for its state law claims under 28 U.S.C. § 1367. On June 1, 2023, Defendants filed an answer and counterclaim, asserting that Plaintiff’s breach of contract claim was barred by the doctrine of res judicata, and that Rigid was damaged because it had to pay increased prices for work to be completed because of Crosby’s delays in not paying its vendors and/or employees. [Doc. 6, pp. 7-8]. Defendants filed the instant Motion on August 21, 2024, seeking to have

Plaintiff’s state law breach of contract claim for “escalation costs” dismissed. [Doc. 25]. Plaintiff was permitted an extension of time to respond, after which it filed its brief in opposition to the Motion and Defendant filed a Reply Memorandum. [Docs. 27, 28, 34, 36]. The Defendants’ Motion is now ripe for ruling.4 SUMMARY JUDGMENT STANDARD “A party may move for summary judgment, identifying […] the part of each claim or defense […] on which summary judgment is sought.” Fed. R. Civ. P. 56. A

3 “The Miller Act, 49 Stat. 793, as amended, 80 Stat. 1139, 40 U.S.C. [§] 270a et seq., requires a Government contractor to post a surety bond ‘for the protection of all persons supplying labor and material in the prosecution of the work provided for’ in the contract. The Act further provides that any person who has so furnished labor or material and who has not been paid in full within 90 days after the last labor was performed or material supplied may bring suit on the payment bond for the unpaid balance. 40 U.S.C. [§] 270b(a).” F. D. Rich Co. v. U. S. for Use of Indus. Lumber Co., 417 U.S. 116, 118, 94 S. Ct. 2157, 2159–60, 40 L.Ed.2d 703 (1974).

4 Here, the contract between the parties contains a Louisiana choice of law provision. [Doc. 25-1. p. 28]. Accordingly, the Court will apply Louisiana law to Plaintiff's claims for breach of contract. court should grant a motion for summary judgment when the pleadings, including the opposing party’s affidavits, “show that there is no dispute as to any material fact and that the movant is entitled to judgment as a matter of law.” Fed. R. Civ. P. 56;

see also Celotex Corp. v. Catrett, 477 U.S. 317, 323-24 (1986). A genuine dispute of material fact exists “if the evidence is such that a reasonable jury could return a verdict for the nonmoving party.” Hefren v. McDermott, Inc., 820 F.3d 767, 771 (5th Cir. 2016) (quoting Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248 (1986)). A fact is “material” if proof of its existence or nonexistence would affect the outcome of the lawsuit under applicable law in the case. Anderson v. Liberty Lobby, Inc., 477 U.S.

242, 248, 106 S. Ct. 2505, 91 L.Ed.2d 202 (1986). The movant bears the burden of demonstrating the absence of a genuine dispute of material fact but need not negate every element of the nonmovant’s claim. Hongo v. Goodwin, 781 F. App’x 357, 359 (5th Cir. 2019) (citing Duffie v. United States, 600 F.3d 362, 371 (5th Cir. 2010)).

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Oliver v. Scott
276 F.3d 736 (Fifth Circuit, 2002)
Condrey v. Suntrust Bank of GA
431 F.3d 191 (Fifth Circuit, 2005)
Chaney v. Dreyfus Service Corp.
595 F.3d 219 (Fifth Circuit, 2010)
Duffie v. United States
600 F.3d 362 (Fifth Circuit, 2010)
Anderson v. Liberty Lobby, Inc.
477 U.S. 242 (Supreme Court, 1986)
Lakeshore Engineering Services, Inc. v. United States
110 Fed. Cl. 230 (Federal Claims, 2013)
Placid Refining Co. v. Privette
523 So. 2d 865 (Louisiana Court of Appeal, 1988)
Russellville Steel Co., Inc. v. a & R EXCAVATING, INC.
624 So. 2d 11 (Louisiana Court of Appeal, 1993)
First State Bank & Trust Co. v. SEVEN GABLES CO.
501 So. 2d 280 (Louisiana Court of Appeal, 1986)
DeMoss v. PINE HILLS GOLF AND COUNTRY CLUB
954 So. 2d 316 (Louisiana Court of Appeal, 2007)
Cajun Constructors v. Fleming Const. Co.
951 So. 2d 208 (Louisiana Court of Appeal, 2006)
Belle Pass Terminal, Inc. v. Jolin, Inc.
634 So. 2d 466 (Louisiana Court of Appeal, 1994)
Sims v. Mulhearn Funeral Home, Inc.
956 So. 2d 583 (Supreme Court of Louisiana, 2007)
Lakeshore Engineering Services, Inc. v. United States
748 F.3d 1341 (Federal Circuit, 2014)
Zan Green v. JP Morgan Chase Bank, N.A.
562 F. App'x 238 (Fifth Circuit, 2014)
Angus Chemical Company v. Glendora Plantation, Inc
782 F.3d 175 (Fifth Circuit, 2015)

Cite This Page — Counsel Stack

Bluebook (online)
Crosby Construction Services Inc v. Rigid Constructors L L C, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crosby-construction-services-inc-v-rigid-constructors-l-l-c-lawd-2024.