EDI Precast, LLC v. Carnahan

982 F. Supp. 2d 616, 2013 WL 6064719, 2013 U.S. Dist. LEXIS 160865
CourtDistrict Court, D. Maryland
DecidedNovember 12, 2013
DocketCivil Case No. PWG-12-122
StatusPublished
Cited by6 cases

This text of 982 F. Supp. 2d 616 (EDI Precast, LLC v. Carnahan) is published on Counsel Stack Legal Research, covering District Court, D. Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
EDI Precast, LLC v. Carnahan, 982 F. Supp. 2d 616, 2013 WL 6064719, 2013 U.S. Dist. LEXIS 160865 (D. Md. 2013).

Opinion

MEMORANDUM OPINION

PAUL W. GRIMM, District Judge.

This Memorandum Opinion disposes of Plaintiff EDI Precast, LLC’s (“EDI”) Partial Motion for Summary Judgment, ECF [620]*620No. 52, and accompanying Memorandum, ECF No. 52-1; Defendants Raymond K. Carnahan, Jr. and Northern Virginia Erectors, LLC’s (“NVE”)1 Opposition, ECF No. 58; Plaintiffs Supplement (“Pl.’s Supp.”), ECF No. 61; and Defendants’ Response to Plaintiffs Supplement (“Defs.’ Supp. Resp.”), ECF No. 63.

I also have received Defendants’ Request for a Hearing, ECF No. 53. Having reviewed the filings, I find that a hearing is unnecessary. See Loe. R. 105.6. For the reasons stated herein, Plaintiffs Motion is GRANTED in part and DENIED in part.

I. FACTUAL BACKGROUND

In reviewing a motion for summary judgment, the Court considers the facts in the light most favorable to the non-movant, drawing all justifiable inferences in that party’s favor. Ricci v. DeStefano, 557 U.S. 557, 585-86, 129 S.Ct. 2658, 174 L.Ed.2d 490 (U.S.2009); George & Co., LLC v. Imagination Entm’t Ltd., 575 F.3d 383, 391-92 (4th Cir.2009); Dean v. Martinez, 336 F.Supp.2d 477, 480 (D.Md.2004). Unless otherwise stated, this background is composed of undisputed facts. Where a dispute exists, I consider the facts in the light most favorable to Defendants. See Ricci 557 U.S. at 585-86, 129 S.Ct. 2658; George & Co., 575 F.3d at 391-92; Dean, 336 F.Supp.2d at 480.

Plaintiff is a “specialized labor service company in the business of installation and erection of structural and architectural precast stone and concrete in mostly commercial projects.” Second Am. Compl. ¶ 12, ECF No. 49-1; see Raymond Carnahan, Jr. and N. Va. Erectors, LLC Answer to Second Am. Compl. for Declaratory and Inj. and Other Relief and for Damages (“Answer”) ¶ 12 (admitting same), ECF No. 50.2 EDI is a Maryland limited liability company formed in 2007 by Thomas E. Nicholson. Nicholson Dep. 19:16-20:11, Pl.’s Mem. Ex. 1, ECF No. 52-2; Entity Detail for EDI Precast LLC, Defs.’ Opp’n Ex. 1, ECF No. 58-1. Before 2007, Nicholson operated an entity with a similar name, namely EDI, Inc., which also specialized in precast concrete work. Nicholson Dep. 15:10-20.

Defendant Carnahan worked for EDI, Inc. from the time of its formation in about 2001, and continued to work for EDI Precast, LLC until he was terminated in January 2012.3 Carnahan Dep. 16:18-20, 18:4-11, PL’s Mem. Ex. 2, ECF No. 52-3. When Carnahan began working [621]*621for EDI, he was a job-site foreman, but in around 2008 he was promoted to a position that has been described as “field superintendent,” id. 20:4-17, or “job superintendent / senior project manager,” Second Am. Compl. ¶ 16; see Answer ¶ 16 (admitting same). “At all times relevant to [this action], Mr. Carnahan ... [held] a position of trust and leadership. He directed] and overs[aw] EDI’s operations on the job site, supervised] the employees, and [was] the direct liaison with the vendors and customers.” Second Am. Compl. ¶ 16; see Answer ¶ 16 (admitting same). In 2007, Carnahan executed a Covenant not to Compete on which the counterparty was identified as “EDI, LLC, a Maryland corporation (the ‘Employer’)” and for which Nicholson signed as president. Covenant not to Compete (the “Noncompete Agreement”), PL’s Mem. Ex. 5, ECF No. 52-6.4

At some point in time, Carnahan began doing precast concrete jobs on the side, in addition to his work for EDI. Carnahan Dep. 44:17-20. In 2009, Carnahan created NVE, a Virginia limited liability company, through which he “d[id] some of this side work.” Carnahan Dep. 91:8-16; see Certificate of Organization of N. Va. Erectors, LLC, PL’s Mem. Ex. 6, ECF No. 52-7. Plaintiff has provided a Table of Jobs (“Job List”) that sets forth work done by Carnahan or NVE that was not done under the auspices, or with approval, of EDI. Job List, PL’s Mem. Ex. 5; Carnahan Dep. 48:2-12.5 According to the Job List, Defendants have performed twenty-two precast jobs for Arban Precast Stone Ltd. (“Arban”) between 2007 and 2011, totaling $336,407 worth of work. Job List. Although Carnahan testified at his deposition that the Job List “containfs] all of the precast or steelwork that [he] did either as an individual or through Northern Virginia Erectors ... and not through EDI,” Carnahan Dep. 48:6-12, it also is undisputed that Carnahan and/or NVE performed precast work at the National Zoo in December 2011, even though that work was not listed on the Job List. See Second Am. Compl. ¶¶ 29, 31-32; Answer ¶¶ 29, 31-32 (admitting certain factual allegations contained therein).

Nicholson testified, and Defendants have not disputed, that prior to 2007, Arban was one of the top three or four manufacturers of precast stone that would employ EDI and Arban gave EDI somewhere between [622]*622three and five jobs per year. Nicholson Dep. 48:2-21. Nicholson has asserted that Plaintiff was “doing a fair amount of work with [Arban], then it stopped,” id. at 37:1-15, which Carnahan also is not able to confirm or dispute. See Carnahan Dep. (Defs.’ Excerpts) 53:3-8, Defs.’ Opp’n Ex. 2, ECF No. 58-2.

Carnahan acknowledges that he did work for Arban. Carnahan Dep. 44:17-20, 48:6-49:2. According to Carnahan, this began when Allen Massey of Arban approached Carnahan about work on the Prince William Adult Detention Center. Id. (Defs.’ Excerpts) 53:10-54:18. Carnahan testified that the jobs “were offered directly to Mr. Carnahan by entities which knew he worked for the plaintiff.” See Defs.’ Opp’n 2. He did not, at any time, inform Massey that he was doing those jobs as an independent contractor and not as an employee of EDI, and in fact, Carnahan believed that Massey “knew and understood [Carnahan was] an employee of EDI.” Carnahan Dep. (Defs.’ Excerpts) 55:15-21. Carnahan did not speak with anyone at EDI before taking work from Arban in his individual capacity, id. at 56:14-18, and he did not know whether those jobs ever were offered to EDI, id. at 69:11-14.

It is undisputed that Carnahan used EDI employees to perform work for Ar-ban, although Carnahan maintains that any such employees were doing Arban projects only during their time off from EDI, and were not paid by EDI for any of Carnahan’s side work. See Defs.’ Opp’n 2; see also NVE General Ledger for Jan. 1, 2011 to Dec. 3, 2011 (the “NVE Ledger”) 1, Pl.’s Mem. Ex. 9, ECF No. 52-10.6 Plaintiff has submitted a supplement that it argues shows that certain employees “listed in the [US Army Corps of Engineers (‘USACE’) ] Payroll Reports as working for NVE ... also reported hours on EDI precast concrete jobs on the same days.” PL’s Supp. 3. However, Defendants maintain that those employees were working on evenings and weekends, and that they “were physically capable of working the proscribed [sic] ours [sic] for both employers, and being paid by both employers, on those days.” Def.’s Supp. Resp. 2. And Carnahan has so testified. See Carnahan Dep. (Defs.’ Supp. Excerpt) 112:8-17, Defs.’ Supp. Opp’n Ex., ECF No. 63-1.

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982 F. Supp. 2d 616, 2013 WL 6064719, 2013 U.S. Dist. LEXIS 160865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edi-precast-llc-v-carnahan-mdd-2013.