Crystal Steel Fabricators, Inc. v. AMEC Foster Wheeler Programs, Inc.

349 F. Supp. 3d 1364
CourtDistrict Court, N.D. Georgia
DecidedJune 1, 2017
DocketCIVIL ACTION FILE NO. 1:16-CV-3284-MHC
StatusPublished

This text of 349 F. Supp. 3d 1364 (Crystal Steel Fabricators, Inc. v. AMEC Foster Wheeler Programs, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Crystal Steel Fabricators, Inc. v. AMEC Foster Wheeler Programs, Inc., 349 F. Supp. 3d 1364 (N.D. Ga. 2017).

Opinion

MARK H. COHEN, United States District Judge

This case comes before the Court on Defendant AMEC Foster Wheeler Programs, Inc.'s ("AMEC") Motion to Dismiss [Doc. 7]. For the reasons explained below, AMEC's motion is DENIED.

I. BACKGROUND

In June 2015, the United States Army Corps of Engineers issued a solicitation for a construction project in Poland (the "Project"). Compl. ¶ 6. Hoping to put together a proposal for the Project, AMEC asked subcontractors Crystal Steel Fabricators, Inc. and Memco, Inc. (collectively, "Plaintiffs") to submit proposals for supplying and erecting the Project's structural steel *1367work. Id. ¶¶ 7-9. Plaintiffs agreed, and in September 2015, the parties entered into a contract-titled the "Teaming Agreement"-concerning the joint preparation and submission of a proposal for the Project. Id. ¶¶ 9-11; see Teaming Agreement, attached as Ex. A to Compl. [Doc. 1-1] ("Teaming Agreement").

According to the terms of the Teaming Agreement, Plaintiffs promised (1) to support AMEC's proposal for the structural steel work described in its statement of work, (2) to support only AMEC in its efforts to submit a successful proposal, and (3) to give up their rights to support other bidders for the Project as well as their rights to independently bid for the Project. Compl. ¶ 12; Teaming Agreement § I.C, II. In exchange, AMEC promised that, if awarded a contract, it would use its best efforts to negotiate in good faith with Plaintiffs to enter a subcontract for the Project's structural steel work. Compl. ¶ 12; Teaming Agreement § I.D, IV. In relevant part, the Teaming Agreement provided:

[§ I.A] Prime Contractor [AMEC] shall submit, as prime contractor, a proposal for the project. Subcontractor shall support the proposal for the types of work identified in the Subcontractor Statement of Work attached hereto as Exhibit 1 ("Exhibit 1" or "SOW") ...
[§ I.C] Subcontractor agrees that it is entering into this agreement on an exclusive basis. Subcontractor shall not furnish support to any other party competing as a prime contractor nor compete independently for work under the project.
[§ II] Subcontractor will furnish for incorporation into Prime Contractor's proposal all appropriate materials pertinent to the work assigned to Subcontractor described in Exhibit 1 ...
[§ I.D] In the event Prime Contractor is successful in its proposal for obtaining the contract for the Project ("Prime Contract"), the parties shall ... use their best efforts and negotiate in good faith to enter into a subcontract under which Subcontractor agrees to perform the types of work described in Exhibit 1 ...

Plaintiffs allege that, although they fully performed their duties under the Teaming Agreement-and although AMEC relied on their proposal in successfully obtaining a contract for the Project-AMEC subsequently "failed to use any efforts" to negotiate in good faith with Plaintiffs to enter into a subcontract for the structural steel work and instead entered into a contract with another subcontractor. Compl. ¶¶ 14-20. Plaintiffs further allege that they incurred direct and indirect expenses and costs of at least $150,000.00 "in preparing and submitting to AMEC all appropriate materials, including price proposals, pertinent to the work assigned to 'Subcontractor' described in the Statement of Work." Id. ¶¶ 21, 56.

Plaintiffs now bring claims against AMEC for breach of contract (Count One), promissory estoppel (Count Two), unjust enrichment (Count Three), and quantum meruit (Count Four).

II. LEGAL STANDARD

Federal Rule of Civil Procedure 8(a)(2) requires that a pleading contain a "short and plain statement of the claim showing that the pleader is entitled to relief." Under Federal Rule of Civil Procedure 12(b)(6), a claim will be dismissed for failure to state a claim upon which relief can be granted if it does not plead "enough facts to state a claim to relief that is plausible on its face." Bell Atl. Corp. v. Twombly, 550 U.S. 544, 547, 127 S.Ct. 1955, 167 L.Ed.2d 929 (2007). The Supreme Court has explained this standard as follows:

*1368A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged. The plausibility standard is not akin to a "probability requirement," but it asks for more than a sheer possibility that a defendant has acted unlawfully.

Ashcroft v. Iqbal, 556 U.S. 662, 678, 129 S.Ct. 1937, 173 L.Ed.2d 868 (2009) (internal citation omitted). Thus, a claim will survive a motion to dismiss only if the factual allegations in the pleading are "enough to raise a right to relief above the speculative level." Twombly, 550 U.S. at 555, 127 S.Ct. 1955.

At the motion to dismiss stage, the court accepts all the well-pleaded facts in the plaintiff's complaint as true, as well as all reasonable inferences drawn from those facts. McGinley v. Houston, 361 F.3d 1328, 1330 (11th Cir. 2004) ; Lotierzo v. Woman's World Med. Ctr., Inc., 278 F.3d 1180, 1182 (11th Cir. 2002). Not only must the court accept the well-pleaded allegations as true, they must be construed in the light most favorable to the pleader. Powell v. Thomas, 643 F.3d 1300, 1302 (11th Cir. 2011).

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Bluebook (online)
349 F. Supp. 3d 1364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crystal-steel-fabricators-inc-v-amec-foster-wheeler-programs-inc-gand-2017.