Fisk Electric Company v. Webcor Builders, Inc.

CourtDistrict Court, N.D. California
DecidedJanuary 20, 2021
Docket3:18-cv-07671
StatusUnknown

This text of Fisk Electric Company v. Webcor Builders, Inc. (Fisk Electric Company v. Webcor Builders, Inc.) is published on Counsel Stack Legal Research, covering District Court, N.D. California primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Fisk Electric Company v. Webcor Builders, Inc., (N.D. Cal. 2021).

Opinion

1 2 3 4 UNITED STATES DISTRICT COURT 5 NORTHERN DISTRICT OF CALIFORNIA 6 7 FISK ELECTRIC COMPANY, Case No. 18-cv-07671-EMC

8 Plaintiff, ORDER DENYING WOJV’S MOTION 9 v. TO STAY, AND GRANTING TJPA’S MOTION TO DISMISS 10 OBAYASHI CORPORATION, et al., Docket Nos. 97, 99 11 Defendants.

12 13 14 The instant case concerns disputes related to the construction of the Transbay Transit 15 Center ( “Transbay Project” or “Project”). In March 2009, the Transbay Joint Powers Authority 16 (“TJPA”) entered into a Prime Contract with the Webcor/Obayashi Joint Venture (“WOJV”), 17 under which WOJV agreed to perform certain preconstruction services, serve as the construction 18 manager/general contractor, and manage and administrator subcontracts with trade subcontractors 19 who would construct Phase 1 of the Project. Subsequently, in November 2014, WOJV and Fisk 20 Electric Company (“Fisk”) entered into a Subcontract under which Fisk agreed to perform certain 21 electrical subcontract work for the Project. 22 Fisk initiated the instant case in December 2018, suing WOJV, the joint venture members 23 (two companies), and sureties. WOJV responded with counterclaims against Fisk and also filed a 24 third-party complaint against the TJPA. 25 Currently pending before the Court are two motions: (1) WOJV’s motion to stay this case1 26 and (2) the TJPA’s motion to dismiss, strike, or stay WOJV’s third-party complaint. Having 27 1 considered the parties’ briefs and accompanying submissions, as well as all other evidence of 2 record, the Court hereby DENIES WOJV’s motion to stay and GRANTS the TJPA’s motion to 3 dismiss. 4 I. WOJV’S MOTION TO STAY 5 The pending motion is WOJV’s second attempt to stay proceedings in this case based on 6 related proceedings in state court. The state court litigation began before this case – specifically, 7 in October 2018, when WOJV filed suit against the TJPA for, inter alia, breach of contract 8 (hereinafter, the “Lead State Action”). In the Lead State Action, WOJV accused the TJPA of 9 being responsible for Project delay and cost overruns and improperly trying to pass on 10 responsibility for such to WOJV and its subcontractors. See Docket No. 60-1 (Dillon Decl., Ex. 11 A) (WOJV Compl. ¶ 9). The TJPA responded with a cross-complaint against WOJV, placing 12 blame on WOJV and its subcontractors, including but not limited to Fisk. See Docket No. 60-1 13 (Dillon Decl., Ex. B) (TJPA Cross-Compl. ¶¶ 88-94). Thereafter, WOJV filed a cross-complaint 14 against Fisk and other subcontractors. See Docket No. 60-1 (Dillon Decl., Ex. C) (WOJV Cross- 15 Compl.). Fisk then filed a cross-complaint against, inter alia, WOJV. (Fisk’s cross-complaint 16 appears to be largely duplicative of the instant action.) 17 In addition to the Lead State Action, there are five other state lawsuits that are related to 18 the Project and that have been consolidated with the Lead State Action (collectively, 19 “Consolidated State Action”). This includes lawsuits brought against WOJV by other 20 subcontractors. 21 Based on the overlap with the consolidated state court litigation, the Court granted 22 WOJV’s first motion to stay, citing the Colorado River doctrine. The Ninth Circuit reversed and 23 vacated the Colorado River stay. WOJV now has filed a second motion to stay, this time invoking 24 different grounds as bases to stay. In the motion, WOJV makes two arguments: (1) the case 25 should be stayed pursuant to the Landis doctrine and (2) the case should be stayed because the 26 Subcontract contemplates that a dispute between the contractor and subcontractor that also 27 implicates the project owner “would be part of a single action against [the project owner].” Reply 1 The Court rejects both arguments. As to the Landis doctrine, see Landis v. North 2 American Co., 299 U.S. 248 (1936), it applies only where the parallel case is another federal 3 district court case. See Colo. River Water Conservation Dist. v. United States, 424 U.S. 800, 817- 4 18 (1976) (citing Landis in support of the statement that, “[a]s between federal district courts, . . . 5 though no precise rule has evolved, the general principle is to avoid duplicative litigation”); 6 Ambrosia Coal & Constr. Co. v. Morales, 368 F.3d 1320, 1328 (11th Cir. 2004) (noting that the 7 general principle to avoid duplicative litigation, which applies when there are multiple federal 8 district court cases, “does not apply . . . when the duplicative litigation arises between state and 9 federal courts”). When the parallel case is a state court action, as here, a stay may be granted 10 pursuant to the Colorado River doctrine only. See AIIRAM LLC v. KB Home, No. 19-CV-00269- 11 LHK, 2019 U.S. Dist. LEXIS 136744, at *16-17 (N.D. Cal. Aug. 12, 2019) (rejecting the 12 argument that Landis provides a basis for a stay when a Colorado River stay is not merited; noting 13 that Colorado River would otherwise be undermined). In the instant case, the Ninth Circuit has 14 rejected application of the Colorado River doctrine.2 15 As for WOJV’s second argument – i.e., that the Subcontract contemplates a dispute 16 between WOJV and Fisk that also implicates the project owner (i.e., the TJPA) must be resolved 17 in a single action – it also lacks merit. Section 13.02 of the Prime Contract, which is incorporated 18 by reference into the Subcontract – is simply a venue provision. It does not address or mandate 19 consolidated proceedings. Other provisions likewise make no reference to or otherwise suggest 20 consolidated proceedings. See, e.g., Subcontract § 4.1.4 (“In the event the Owner fails, neglects or 21 refuses to pay the Contractor for any reasons whatsoever (except on account of defaults solely 22 attributable to the Subcontractor), Contractor and Subcontractor agree to pursue their rights to 23 payment from the Owner.”); Subcontract § 5.2 (“In the event that Contractor prosecutes a claim 24 against the Owner for additional compensation for any delay, Subcontractor shall cooperate fully 25 with Contractor in the prosecution thereof . . . .”). To the extent WOJV has placed special 26 2 Although WOJV has cited Patel v. City of L.A., 594 F. App’x 415, 416 (9th Cir. 2015), in 27 support of its argument for a Landis stay, that case is not dispositive. In addition to the fact that 1 emphasis on § 5.2, the Court notes that Fisk is fully capable of cooperating with WOJV in 2 litigation between WOJV and the TJPA without formally becoming a party to that litigation as 3 well. 4 Accordingly, for the reasons stated above, the Court denies WOJV’s second motion to stay 5 proceedings. 6 II. TJPA’S MOTION TO DISMISS, STRIKE, OR STAY 7 The TJPA has filed a motion to dismiss, strike, or stay with respect to the third-party 8 complaint (“3PC”) that the WOJV has asserted against it. The TJPA’s primary argument is that 9 the Court should decline to exercise supplemental jurisdiction over the 3PC. 10 To assess the TJPA’s argument, the Court must first bear in mind the scope of: (1) the 11 allegations in Fisk’s complaint against WOJV and (2) the allegations in WOJV’s 3PC against the 12 TJPA. As to Fisk’s complaint against WOJV, Fisk charges WOJV with violating the terms of the 13 contract between the two companies (i.e., the Subcontract). According to Fisk, the Subcontract 14 provided that Fisk would receive additional compensation “for extra work and added cost required 15 due to changes in the scope, conditions or requirements for performance of the Subcontract work, 16 and for delays, disruptions, and acceleration of the work of Fisk and its subcontractors and 17 suppliers.” SAC ¶ 23.

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Bluebook (online)
Fisk Electric Company v. Webcor Builders, Inc., Counsel Stack Legal Research, https://law.counselstack.com/opinion/fisk-electric-company-v-webcor-builders-inc-cand-2021.