Crosby Dredging L L C v. I F G Port Holdings L L C

CourtDistrict Court, W.D. Louisiana
DecidedSeptember 28, 2020
Docket2:18-cv-01645
StatusUnknown

This text of Crosby Dredging L L C v. I F G Port Holdings L L C (Crosby Dredging L L C v. I F G Port Holdings 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 Dredging L L C v. I F G Port Holdings L L C, (W.D. La. 2020).

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION

CROSBY DREDGING LL C CASE NO. 2:18-CV-01645 VERSUS JUDGE SUMMERHAYS IF G PORT HOLDINGS LLC MAGISTRATE JUDGE KAY

MEMORANDUM RULING Presently before the Court are (1) Crosby Dredging LLC’s Motion for Summary Judgment (“Crosby Motion”) [ECF No. 19] and (2) IFG’s Motion for Summary Judgment (“IFG Motion”) [ECF No. 20]. For the following reasons, the Crosby Motion is DENIED and the IFG Motion is GRANTED. 1. BACKGROUND On May 3, 2017, Mark Coyle, a marine consultant for Crosby Dredging LLC (“Crosby”) sent an email to the Port of Lake Charles inquiring about an upcoming dredging project of IFG Port Holdings, LLC (“IFG”).! Eventually, Mr. Coyle contacted IFG CEO Kabir Ahmad. Mr. Coyle and Mr. Ahmad began discussing the project and the possibility of Crosby performing the dredging work.” On May 10, 2012, Mr. Ahmad sent Mr. Coyle various documents to prepare a bid proposal, including stamped drawings, a survey, permit modification letter from the USACE and a USCE letter to the Port of Lake Charles, and the dredging permit.’ In the weeks that followed, various

' May 3, 2017 Email from Coyle to McGinnies, [ECF No. 20, Ex. 1]. 2 Affidavit of Kabir Ahmad, CEO of IFG (“Ahmad Affidavit”) 3 May 10, 2017 Email from Ahmad to Coyle with attachments [ECF No. 20, Ex], See also Ahmad Affidavit.

proposals were sent by Crosby to IFG. Ultimately, Crosby offered IFG a reduced cost because of the fact that it was seeking other dredging work in the area.* The parties then began negotiating and drafting the actual Dredging Agreement. Starting on June 19, 2017, the parties negotiated the terms and conditions of the Dredging Agreement and exchanged various redline drafts. Specific comments and input were provided by Roland Maturin, the Crosby project manager who was going to be in charge of the IFG project. Comments and drafts were sent back to Mr. Ahmad through Mr. Coyle.° The Dredging Agreement, dated July 11, 2017, was executed by IFG CEO Kabir Ahmad and Crosby CFO Farrell Trosclair.© The Dredging Agreement includes the following pertinent provisions: Section 2: Related to Mobilization IFG shall pay to Contractor, as full contribution for the faithful performance by Contractor of the aforementioned dredging work within 30 days of completion of the dredging work in accordance with the Contract Documents and acceptance of the work by IFG. With respect to mobilization only, IFG shall pay the Contractor 60% of the mobilization cost (total mobilization cost will be $165,000.00 as per Contractor’s proposal and 60% is equal to $99,000.00) within 7 days of the Contractor giving IFG written notice that mobilization is fully complete to allow for dredging to commence in accordance with the Contract Documents. Section 3: Related to Commencement of Work and Written Notice to Proceed The Contractor agrees to commence the work upon receipt of a notice to proceed from IFG (notice to proceed form is attached as Exhibit C) and thereafter work continuously for a period of up to 30 days to fully complete the work in accordance with the Contract Documents. The parties hereto agree that time is of the essence.

4 Revised proposal with transmittal email from Coyle to Ahmad [ECF No. 20, Ex. 3]; Final proposal with transmittal email from Coyle to Ahmad [ECF No. 20, Ex. 4] 5 Draft dredging agreement with Crosby comments [ECF No. 20, Ex. 5]; Late June email exchange between Ahmad and Coyle [ECF No. 20, Ex. 6]; July 10, 2017 redline draft dredging agreement with transmittal emails [ECF No. 20, Ex. 7]; Mark Coyle depo P. 13 [ECF No. 20, Ex. 32]; Kabir Ahmad depo P. 20-26 [ECF No. 20, Ex. 36]; Roland Maturin depo P. 13 [ECF No. 20, Ex. 40]. 6 Dredging agreement dated July 11, 2017 (fully executed) [ECF No. 20, Ex. 9]; Ex 30. Kurt Crosby depo P. 8 [ECF No. 20, Ex. 30].

Section 9: Related to Standby Time Standby Time. Any Standby Time incurred by the Contractor and charged in accordance with the Contractor’s proposal will be applicable only to the extent the Contractor is incapable of performing of the Dredging Work and must halt all work due to matters outside the Contractor’s control such as debris encountered in the dredging area. However if the Contractor is capable of continuing to perform the Dredging Work outside the affected area no Standby Time will accrue, in case Standby Time does accrue, Contractor will immediately give written notice to IFG informing IFG of the cause of the Standby Time and the expected length of time. Standby Time is only intended for period of less than 12 hours, any Standby Time greater than this be reviewed and agreed by the Contractor and IFG in writing executed by the parties hereto. Section 11: Related to the Modification of the Agreement Modification. No oral agreement, statement, promise, undertaking, understanding, arrangement, and or omission of any Party, occurring subsequent to the date hereof may be deemed an amendment or modification of the Agreement unless reduced to writing and signed by the Parties hereto or their respective successors or assigns. This Agreement shall be construed as if the Parties jointly prepared it, and say any uncertainty or ambiguity shall not be interpreted against any one Party. The Dredging Agreement also includes various Exhibits, namely: (1) Exhibit A: The map of the dredging area. (2) Exhibit B: The permits, plans, and drawings for the project. (3) Exhibit C: Written Notice to Proceed form.’ Approximately one week prior to the execution of the Dredging Agreement, on July 3, 2017, Mr. Ahmad emailed Tracy Falk, Operations Manager with the USACE, New Orleans Office, to inquire about the availability of the dredge spoil area in order to confirm an approximate start date for the dredging to begin.* On July 5, 2017, Mrs. Falk responded to Mr. Ahmad in an email stating that “the contractor completed the dike work on 20 Jun 17. Our dredging contractor plans

No. 20, Ex. 9. 8 Ahmad email exchange with Faulk July 3-5, 2017 [ECF No. 20, Ex. 10]

to have the dredge working in Clooney Island Loop at the beginning of August, and we have about 2 to 3 weeks of dredging.”? Upon receiving this response from the USACE, Mr. Ahmad immediately forwarded the email exchange to his primary contact person with Crosby, Mr. Mark Coyle.!° On or about July 10, 2019 — before the Dredging Agreement was executed — Crosby equipment and personnel arrived at the Port of Lake Charles. In order for Crosby to transport its equipment to the site at the Port of Lake Charles by July 10, 2019, Crosby had to depart its previous work site in the Houston area several days before the 10th.'! According to Crosby’s representatives, a “pre-dredge” meeting was held on July 12, 2019. The meeting attendees included Mark Coyle, Crosby’s marine consultant, Roland Maturin, Crosby’s operations manager, and Philip Rogers.'* Crosby’s representatives state that during the pre-dredge meeting, Rogers verbally instructed Crosby to mobilize.!? According to both IFG and Philip Rogers, Mr. Rogers is not an employee or representative of IFG.'* On August 1, 2017, Mr. Mark Coyle emailed IFG to inform them that Crosby had finally secured other work and was going to start work on a nearby project under another contract. This nearby project was located at the Rain C2 Carbon dock a few miles down the Calcasieu River. Crosby subsequently departed the vicinity of the IFG work site in order to perform work at the Rain C2 Carbon facility!> Mr. Coyle also stated that he had yet to hear from Mike Hooks or the

Id. 0 7d: Mark Coyle forwarded the Ahmad/Faulk exchange to Roland Maturin on July 17, 2017. Roland Maturin depo P. 40 & P. 91 [ECF No. 20, Ex. 42] 2 Deposition of Roland Maturin, page 33 [ECF No. 19, Ex. D]. 3 Td, at page 33. \4 See ECF No. 20, Ex. 3 and 4. 15 August 1, 2017 E-mail from Coyle to Ahmad [ECF No. 20, Ex. 13].

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Crosby Dredging L L C v. I F G Port Holdings L L C, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crosby-dredging-l-l-c-v-i-f-g-port-holdings-l-l-c-lawd-2020.