Davis, Bowen & Friedel, Inc. v. DiSabatino

CourtSuperior Court of Delaware
DecidedDecember 27, 2016
DocketN14C-05-021 AML
StatusPublished

This text of Davis, Bowen & Friedel, Inc. v. DiSabatino (Davis, Bowen & Friedel, Inc. v. DiSabatino) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davis, Bowen & Friedel, Inc. v. DiSabatino, (Del. Ct. App. 2016).

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

DAVIS, BOWEN & FRIEDEL, INC., ) ) Plaintiff, ) ) C.A. No.: N14C-05-021 AML v. ) ) ) BERNARD DISABATINO, ) ) Defendant. )

Submitted: September 7, 2016 Decided: December 27, 2016

MEMORANDUM OPINION

Patrick J. Scanlon, Esquire and Darlene Wyatt Blythe, Esquire, LAW OFFICES OF PATRICK SCANLON, P.A., Wilmington, Delaware; Attorneys for Davis, Bowen & Friedel, Inc.

Leo John Ramunno, Esquire, LEO JOHN RAMUNNO, ATTORNEY AT LAW, Wilmington, Delaware; Attorney for Bernard DiSabatino.

LeGROW, J. This is a breach of contract case stemming from four separate contracts

through which the defendant retained the plaintiff to assist in developing four

distinct pieces of real estate. The plaintiff requests judgment in its favor in the

amount of $180,484.86, plus interest, attorneys’ fees, and court costs.1 The key

question in this case is one of timeliness: did the plaintiff’s claims accrue when the

defendant stopped paying or were the plaintiff’s damages uncertain until the

contracts were terminated? I conclude the plaintiff could ascertain its damages at

the time the invoices were not paid, and I therefore award damages only for those

invoices that became past due no more than three years before the complaint was

filed.

FACTUAL AND PROCEDURAL HISTORY

These are the facts as I find them after trial, taking into account the

credibility of the witnesses and the evidence presented by the parties. Defendant

Bernard DiSabatino, who is a real estate developer, retained the engineering and

surveying services of Plaintiff Davis, Bowen & Friedel (“DBF”) relating to four

real estate projects: the Chickberry Project, Jestice Farm Project, Northeast Project,

and Elkton Project (collectively, the “Projects”).2 Each project was based on a

contract that enumerated the services to be provided for that project and a proposed

1 Davis, Bowen & Friedel, Inc. v. DiSabatino, C.A. No. 14C-05-021, at 8 (Del. Super. Apr. 19, 2016) (TRANSCRIPT) (hereinafter “Trial Tr.”). 2 Id. at 7. 1 or estimated fee associated with the particular service. Each contract also stated:

“Payment terms are in accordance with our attached Schedule of Rates No. 43.

Should payments not be received in accordance with the above payment terms,

[DBF] reserves the right to stop work on this project and reassign staff until such

time as all outstanding monies are paid and staff can be reassigned to your

project.” Attached to each contract was a “schedule of rates and general

conditions,” setting forth various staff members’ hourly rates and other payment

terms (“Schedule 43”). Schedule 43 required “Payment terms: Net 30 days of

invoice date.”

On May 2, 2014, DBF filed suit against DiSabatino based on each of these

contracts. This Court held a bench trial on April 19, 2016. Two witnesses testified

at trial: William Zachary Crouch and Anthony Carrozza. Crouch, a registered

professional engineer, is DBF’s vice president and owner.3 Carrozza worked with

DiSabatino as a consultant on the Projects, attended every meeting, and handled all

email communications between DBF and DiSabatino.4 Between 2011 and 2013,

DiSabatino and Carrozza spoke to Crouch about all four Projects multiple times a

week and met with him at least twice a month.5 Carrozza testified that he kept

3 Trial Tr. 11 (Crouch). 4 Trial Tr. 71-72 (Carrozza). 5 Id. at 96: A: We communicated with Mr. Crouch in 2011, 2012, 2013. At least two, three, four - - Q: About Chickberry? 2 informal bill payment records and maintained a ledger listing amounts paid and to

whom. DiSabatino did not, however, maintain a record of invoices that were

received or outstanding.6

A. The Chickberry Project

The Chickberry Project, which involved developing approximately 381 acres

of land in Sussex County, Delaware, was based on a proposal DBF created and

revised in 2006, and which the parties signed on January 12, 2007.7 The County

preliminarily approved the project in January 2009, and extended that approval

several times, but the project never was completed.8 Crouch, who was the project

engineer for Chickberry, testified that DBF received a letter from the County

extending the project to January 14, 2012.9 He testified credibly that he never was

told to cease work on this project.10

DBF claims DiSabatino owes a total of $49,234.78 on the Chickberry

Project.11 Nearly all the invoices underlying DBF’s damages claim for Chickberry

A: About all of them. Four projects. Three, four, five times a week. Met with him at least twice a month. 6 Id. at 93-96. 7 Trial Exs. 1 (A) at 1, 7, 11. 8 Trial Tr. 16 (Crouch). 9 Id. at 14, 17. There was some discrepancy during trial about when the extension expired – January or June. See id. at 17, 47, 109, 113-14, 117; Trial Tr. 85 (Carrozza). This discrepancy is not material to my decision. 10 Trial Tr. 32 (Crouch). 11 Id. at 17. 3 relate to work completed, invoiced, and past due before May 2, 2011.12 Only one

invoice, dated March 6, 2013, relates to work done after May 2, 2011.13 Before

March 2013, the last work DBF performed on the project was attending a meeting

in March 2011 with Tidewater and Artesian relating to water and sewer

agreements.14 A year before that, in March 2010, DBF worked to obtain

preliminary approval for the extensions until 2012.15

Crouch testified that he regularly sent DiSabatino invoices, and DiSabatino

did not object to the amount or services invoiced.16 The invoices were sent on or

about the date on the invoice.17 Carrozza acknowledged receiving the March 6,

2013 invoice,18 which related to extending the previously completed wetlands

delineation.19 Because DBF does not perform wetlands consulting, it retained

outside consultants, paid those consultants, and then billed DiSabatino to be

reimbursed for the expenses.20

DiSabatino contends that, except for the March 2011 meeting, no work was

authorized after the preliminary plan was approved on January 14, 2009.21

12 DBF periodically sent past due invoices after May 2, 2011, but no new work was done. 13 Trial Tr. 15 (Crouch). The other invoices were for interest accruing on the past due amounts. 14 Id. at 44; Trial Tr. 84 (Carrozza); Trial Ex. 1 (C) at 23. 15 Trial Tr. 45-46 (Crouch); Trial Tr. 84 (Carrozza). 16 Trial Tr. 15, 17, 22 (Crouch). 17 Id. at 17. 18 Trial Tr. 81 (Carrozza). 19 Trial Tr. 16 (Crouch). “The wetlands delineation is only good for five years.” Id. 20 Id. 21 Def.’s Resp. Br. 2. 4 Carrozza testified that he instructed Crouch to stop working on Chickberry, but

concedes that his instruction was not memorialized in any letter or email.22 In

addition to asserting the work was not authorized, DiSabatino questions whether

any wetlands work actually was done at all in 2013.23 Therefore, according to

DiSabatino, the last time DBF did any work on Chickberry was in March 2011.24

B. The Jestice Farm Project

The Jestice Farm Project was based on a July 27, 2006 proposal made by

DBF, which DiSabatino signed on November 15, 2006.25 This project involved the

development of a 91-acre parcel of land in Sussex County.26 The initial work, such

as the preliminary site plan approval, was completed in 2008.27 The project

received preliminary approval in January 2009.28 Then, on March 4, 2011, DBF

invoiced DiSabatino for work done in January 2011.29 This January 2011 work

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Davis, Bowen & Friedel, Inc. v. DiSabatino, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-bowen-friedel-inc-v-disabatino-delsuperct-2016.