DeMaria Bldg. Co., Inc. v. Lab. Design, Equip. & Installations LLC

CourtCourt of Appeals of North Carolina
DecidedJune 18, 2025
Docket24-882
StatusUnpublished

This text of DeMaria Bldg. Co., Inc. v. Lab. Design, Equip. & Installations LLC (DeMaria Bldg. Co., Inc. v. Lab. Design, Equip. & Installations LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DeMaria Bldg. Co., Inc. v. Lab. Design, Equip. & Installations LLC, (N.C. Ct. App. 2025).

Opinion

An unpublished opinion of the North Carolina Court of Appeals does not constitute controlling legal authority. Citation is disfavored, but may be permitted in accordance with the provisions of Rule 30(e)(3) of the North Carolina Rules of Appellate Procedure.

IN THE COURT OF APPEALS OF NORTH CAROLINA

No. COA24-882

Filed 18 June 2025

Wake County, No. 23 CVS 008595-910

DEMARIA BUILDING COMPANY, INC., Plaintiff,

v.

LABORATORY DESIGN, EQUIPMENT & INSTALLATIONS LLC d/b/a LABORATORY DESIGN & EQUIPTMENT, Defendant.

Appeal by Defendant from order entered 12 June 2024 by Judge Hoyt G.

Tessener in Wake County Superior Court. Heard in the Court of Appeals 19 March

2025.

Williams Mullen, by attorneys Camden R. Webb and Killian K. Wyatt, for defendant-appellant.

Michael Best & Friedrich LLP, by attorneys Justin G. May and Michael G. Schietzelt, for plaintiff-appellee.

STADING, Judge.

Defendant Laboratory Design, Equipment & Installations LLC (“LDEI”)

appeals from an order granting summary judgment for Plaintiff DeMaria Building

Company, Inc. (“DeMaria”) in an action for breach of contract. On appeal, LDEI

contends the trial court erred by granting summary judgment because a genuine DEMARIA BLDG. CO. INC. V. LAB. DESIGN, EQUIP. & INSTALLATIONS LLC

Opinion of the Court

issue of material fact exists of whether the parties formed a valid contract. After

careful review, we affirm.

I. Background

The Naval Facilities Engineering Systems Command contracted with

DeMaria, a general contractor, to construct a new ambulatory care dental clinic (the

“Project”) at Marine Corps Air Station New River in Jacksonville. LDEI, a

subcontractor, is in the business of manufacturing, delivering, and installing cabinets

and countertops. On 8 August 2019, LDEI submitted a bid to DeMaria “to provide

custom-made medical casework and stainless-steel countertops” for the Project.

On 5 December 2019, LDEI received a draft “Subcontract Agreement” (the

“Contract” or “Agreement”) from DeMaria. The Agreement provided DeMaria would

pay LDEI $89,830 in exchange for LDEI manufacturing, delivering, and installing

custom medical cabinets and stainless-steel countertops for the Project:

THE SUBCONTRACTOR AGREES AS FOLLOWS:

1. To furnish in accordance with plans and specifications all labor, materials, equipment and services necessary or required for the receiving, unloading, storing, distribution to station of work, protecting, and complete installation of that part of the construction of this project as described as follows:

Work associated with . . . Ambulatory Care Center & Dental Clinic Replacement. Project located at the MCAS New River in Jacksonville, NC. . . .

....

-2- DEMARIA BLDG. CO. INC. V. LAB. DESIGN, EQUIP. & INSTALLATIONS LLC

Provide all documentation, materials, means and methods, and installation for work associated, and reasonably inferred to be included in noted specifications and scope of work.

• Spec section 123570 Healthcare Casework . . . . • Spec section 123600 Countertops . . . .

2. The Subcontractor shall commence work at the site within three (3) days of notice to proceed from the Contractor, and if interrupted for any reason, the Subcontractor shall resume work within two (2) working days from the Contractor’s notice to do so.

3. The Subcontractor agrees to all of DeMaria Building Company Subcontractor Terms and Conditions . . . .

THE CONTRACTOR AGREES AS FOLLOWS:

1. To Pay the Subcontractor for the performance of this Subcontract Agreement, subject to the terms hereof, the sum of $89,830.00.

The Agreement was printed on DeMaria’s letterhead and referenced both DeMaria

and LDEI as parties. On 10 September 2020, LDEI signed the Agreement and

returned it to DeMaria; DeMaria did not sign at this time. The Agreement did not

contain a required date for acceptance.

The Agreement’s terms and conditions provided, in pertinent part:

THESE SUBCONTRACTOR TERMS AND CONDITIONS (the “Terms”) are applicable to and shall govern the Subcontract Agreement (the “Agreement”) made by and between DeMaria Building Company, Inc., . . . on the one hand, and Subcontractor (as defined in the Agreement), on the other hand, which Agreement shall be deemed effective as of the date of the Agreement (the “Effective Date”).

-3- DEMARIA BLDG. CO. INC. V. LAB. DESIGN, EQUIP. & INSTALLATIONS LLC

Subcontractor shall begin, perform and complete the Work covered by this Contract according to the Contractor’s project work schedule as such Schedule is established or revised from time to time by Contractor (“Project Schedule”) or as directed by Contractor in accordance with the actual progress of the Work of the Project so as not to delay the work of others.

The Scope of Work for the Project shall be as set forth in the Agreement. Execution of the Subcontract Agreement, and/or commencement of the Work by Subcontractor, and/or preparation for the commencement of the Work by Subcontractor, shall constitute acceptance by the Subcontractor of the terms and conditions of said Scope of Work and the Agreement, including these Terms.

Neither the Subcontract price nor the time for performance shall be increased due to changes in taxes, tariffs or other similar charges, or material or labor price increases that are enacted after the date of the Subcontract Agreement unless the Contractor is able to obtain a corresponding increase from the Owner.

Notwithstanding any provision of the Agreement to the contrary, in the event of any dispute between Contractor and Subcontractor, Subcontractor shall continue to perform all of its obligations under the Agreement and avoid causing any delays or disruptions to the Work and/or the Project. Subcontractor shall not stop the Work, including any changed Work, in the event of a dispute as to the validity of claims for extra work payments owed as long as all uncontested amounts have been paid in accordance with the Agreement.

-4- DEMARIA BLDG. CO. INC. V. LAB. DESIGN, EQUIP. & INSTALLATIONS LLC

The incorporated terms and conditions allowed the parties to adjust LDEI’s

compensation to account for material costs through a “change order,” provided that

such changes received approval from the Naval Facilities Engineering Systems

Command. On 12 May 2022, LDEI’s president called DeMaria’s project manager,

stating the original contract price was insufficient due to COVID-19 related material

cost increases. During this call, LDEI’s president requested an “additive change

order,” stated the change order would “be used to cover the huge material price

increases only,” and added that none of these funds were for “overhead or profit.”

DeMaria acknowledged the issue in a follow-up email, stating “we understand you

are facing a material cost increase” and asked LDEI to provide “record of material

cost increase for materials that will be release[d] within the next 30 days.” As Project

discussions continued throughout 2022, DeMaria reached out multiple times to LDEI

for the required material cost documentation to no avail. LDEI began manufacturing

on 12 August 2022 and finished on 21 November 2022.

On 22 February 2023, LDEI again requested a change order of $25,582. The

next day, DeMaria countersigned the Agreement—over two years after LDEI had

signed it. On 22 March 2023, DeMaria again requested supporting documentation

for the material cost increase as required by the incorporated terms and conditions.

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DeMaria Bldg. Co., Inc. v. Lab. Design, Equip. & Installations LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/demaria-bldg-co-inc-v-lab-design-equip-installations-llc-ncctapp-2025.