District of Columbia for the Use and Benefit of Z-Modular, LLC v. McN Build, Inc.

District Court, District of Columbia·Decided July 15, 2020·No. Civil Action No. 2018-2947·Published

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

)

DISTRICT OF COLUMBIA ex rel. ) Z-MODULAR, LLC, )

)

Plaintiff, )

)

v. ) Case No. 18-cv-2947 (RJL/GMH)

)

MCN BUILD, INC., et al., )

)

)

Defendants. )

____________________________________)

MEMORANDUM OPINION AND ORDER In this action centers on two construction contracts between Plaintiff Z-Modular, LLC (“Plaintiff” or “Z-Modular”) and one of the Defendants, MCN Build (“Defendant” or “MCN”). Plaintiff has filed a motion to compel amended discovery responses from Defendant. 1 For the reasons that follow, Plaintiff’s motion is granted in part and denied in part.

I. BACKGROUND

Plaintiff designs, engineers, and constructs modular buildings. ECF No. 1, ¶ 3. In May 2017, Defendant contracted with the District of Columbia to build two multi-family housing de- velopments, one in Ward 7 (the “Ward 7 Project”) and one in Ward 8 (the “Ward 8 Project”). Id., ¶ 7. Defendant entered into two materially identical subcontracts with Plaintiff to design, engineer, and construct those buildings—the “Ward 7 Agreement” and the “Ward 8 Agreement.” Id., ¶¶ 14, 16.

1 The docket entries most relevant to the resolution of this motion are: (1) Plaintiff’s Complaint (ECF No. 1); Defendant ’s answer and counterclaims (ECF No. 15); (3) Plaintiff’s motion to compel (ECF No. 30) and its exhibits; (4) Defendant’s opposition (ECF No. 35) and its exhibits; and (5) Plaintiff’s reply (ECF No. 36) and its exhibits.

The Complaint alleges that Plaintiff completed the Ward 7 Project on June 22, 2018, and the Ward 8 Project on August 2, 2018, and that under the two agreements, Defendant was obligated to pay it a total of $8,082,401.73. Id., ¶¶ 26, 29, 31, 39. However, according to Plaintiff, Defendant has remitted only $1,402,143.75, leaving an unpaid balance of $6,680,257.98. Id., ¶40. Plaintiff alleges that Defendant has thereby breached the contracts. 2 Id., ¶¶ 52–61.

Defendant has asserted certain affirmative defenses, among them that Plaintiff’s claims are barred by the doctrines of unclean hands, estoppel, and waiver. ECF No. 15, ¶¶ 77, 81, 84. De- fendant also alleges, by way of counterclaim, that Plaintiff failed to complete its work by the dead- lines set in the Ward 7 Agreement and the Ward 8 Agreement and that Plaintiff’s submission of revised schedules projecting completion dates after those deadlines constituted anticipatory breaches of the agreements. Id., ¶¶ 105, 108, 115–116, 119–120. Plaintiff’s alleged failure to timely execute its work reportedly required Defendant to incur expenses totaling $6,443,049.00. 3 Id., ¶¶ 125–130.

In February 2020, Plaintiff filed a motion to compel contending that Defendant’s responses to eighteen of Plaintiff’s requests for admissions (RFAs), two of Plaintiff’s interrogatories, and one of Plaintiff’s requests for production of documents are insufficient. ECF No. 30-1. After that motion was fully briefed, this case was referred to the undersigned for management of all non- dispositive matters, including discovery disputes. The undersigned held a telephonic discovery hearing on the motion on July 13, 2020 (the “July 13 Hearing”), at which a ruling on each of the

2 Plaintiff also seeks recovery from Defendant in quantum meruit and asserts claims against Zurich American Insurance Co. and Fidelity and Deposit Co. of Maryland for allegedly failing to pay Plaintiff for its labor, materials, and services pursuant to payment bonds they issued on behalf of Defendant. ECF No. 1, ¶¶ 10, 42–51, 62–71. Those claims are irrelevant to the dispute here. 3 Defendant also alleges that Plaintiff is liable for payment of two performance bonds executed in favor of Defendant. ECF No. 15, ¶¶ 89, 109–110, 131–162. Those claims are also irrelevant to the dispute here.

disputes was announced from the bench. This Memorandum Opinion and Order memorializes and more fully explains those rulings.

II. DISCUSSION

A. RFAs Requests for Admissions are governed by Rule 36 of the Federal Rules of Civil Procedure.

That rule “requir[es] the respondent to ‘admit,’ ‘specifically deny,’ or ‘state in detail the reasons why the answering party cannot truthfully admit or deny [the matter]’ in response to each Request for Admission.” Light v. Carranza, No. 08-cv-1074 (RMU/AK), 2011 WL 13244745, at *2 (D.D.C. Sept. 28, 2011) (second alteration in original) (quoting Fed. R. Civ. P. 36(a)(4)). A party may provide a qualified answer as long as the answer “specif[ies] the part admitted and qualif[ies] or den[ies] the rest.” Fed. R. Civ. P. 36(a)(4); see also Mir v. Kirchmeyer, No. 12cv2340, 2016 WL 3430559, at *2 (S.D. Cal. June 22, 2016) (“Qualified answers are proper if the responding party specifies the part admitted and qualifies or denies the rest.”). If the responding party believes a request to be improper, it may object to the request or move for a protective order. See, e.g., Foretich v. Chung, 151 F.R.D. 3, 5 (D.D.C. 1993).

“The party requesting admissions ‘may move to determine the sufficiency of an answer or objection.’” Light, 2011 WL 13244745, at *2 (quoting Fed. R. Civ. P. 36(a)(6)). If the court finds that an answer does not comply with the dictates of Rule 36, “the court may order either that the matter is admitted or that an amended answer be served.” Id. (quoting Fed. R. Civ. P. 36(a)(6)). However, deeming a matter admitted is a “severe sanction” that should be imposed only “where it has been demonstrated that a party has intentionally disregarded the obligations imposed by Rule 36(a).” Stark-Romero v. Nat’l R.R. Passenger Co. (AMTRAK), 275 F.R.D. 551, 556 (D.N.M. 2011) (quoting Asea, Inc. v. S. Pac. Transp. Co., 669 F.2d 1242, 1247 (9th Cir. 1981)); see also,

e.g., Wiwa v. Royal Dutch Petroleum Co., Nos. 96 Civ. 8386 (KMW)(HBP), 01 Civ. 1909 (KMW)(HBP), 2009 WL 1457142, at *5 (S.D.N.Y. May 26, 2009) (“Deeming a matter as admit- ted is a ‘severe sanction.’” (quoting 7 Moore’s Federal Practice §36.12[3] (3d ed. 2009))); JZ Buckingham Invs. LLC v. United States, 77 Fed. Cl. 37, 46 (Fed. Cl. 2007) (“In fact, many federal courts are disinclined to deem matters admitted when they find the responding party’s answers to requests for admission to be deficient.” (citing Kendrick v. Sullivan, No. 83-3175 (CRR), 1992 WL 119125, at *5 (D.D.C. May 15, 1992))).

1. Allegedly Evasive Answers Plaintiff argues that Defendant’s answers to twelve RFAs—RFA Nos. 1, 5, 9, 11, 17, 19, 23, 24, 26, 29, 32, and 35—are “evasive.” ECF No. 30 at 5. Each of those RFAs is in a similar form, asking Defendant to admit that certain provisions in the Ward 7 Agreement and the Ward 8 Agreement required certain conduct by one or both of the parties. For example, RFA Nos. 1 and 5 concern Section 1.0 of Exhibit A in each of the agreements and ask Defendant to admit that the under that section, “Z-Modular and MCN agreed that Z-Modular would provide podium steel de- sign and engineering services on a time and materials basis.” 4 ECF No. 30-10 at 3, 4. In response, Defendant “[a]dmitted only that under Section 1.0 of Exhibit A . . . Z-Modular agreed to provide ‘podium steel design and engineering . . . on [a] T&M basis . . . [.]’” 5 Id. (quoting ECF No. 30-13 at 19 (Ward 7 Agreement, Exh. A, § 1) and ECF No. 30-14 at 19 (Ward 8 Agreement, Exh. A, § 1)). Defendant provided a similar response to each of Plaintiff’s RFAs that were similarly worded, “admitting” them by parroting the language of the agreements—or, as Defendant would have it,

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

District of Columbia for the Use and Benefit of Z-Modular, LLC v. McN Build, Inc., (D.D.C. 2020).

District of Columbia for the Use and Benefit of Z-Modular, LLC v. McN Build, Inc. (District of Columbia for the Use and Benefit of Z-Modular, LLC v. McN Build, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Carney v. Internal Revenue Service
258 F.3d 415 (Fifth Circuit, 2001)
Graske v. Auto-Owners Insurance
647 F. Supp. 2d 1105 (D. Nebraska, 2009)
United States v. Operation Rescue National
111 F. Supp. 2d 948 (S.D. Ohio, 1999)
In Re RAIL FREIGHT FUEL SURCHARGE ANTITRUST LITIGATION
281 F.R.D. 1 (District of Columbia, 2011)
JZ Buckingham Investments LLC v. United States
77 Fed. Cl. 37 (Federal Claims, 2007)
Haughton v. District of Columbia
161 F. Supp. 3d 100 (District of Columbia, 2014)
Sigmund v. Starwood Urban Retail VI, LLC
236 F.R.D. 43 (District of Columbia, 2006)
Stark-Romero v. National Railroad Passenger Co.
275 F.R.D. 551 (D. New Mexico, 2011)
Minter v. Wells Fargo Bank, N.A.
286 F.R.D. 273 (D. Maryland, 2012)
Diederich v. Department of the Army
132 F.R.D. 614 (S.D. New York, 1990)
Foretich v. Chung
151 F.R.D. 3 (District of Columbia, 1993)
In re Savitt/Adler Litigation
176 F.R.D. 44 (N.D. New York, 1997)