Foulger-Pratt Residential Contracting, LLC v. Madrigal Condominiums, LLC

779 F. Supp. 2d 100, 2011 U.S. Dist. LEXIS 45167, 2011 WL 1576095
CourtDistrict Court, District of Columbia
DecidedApril 27, 2011
DocketCase 1:09-cv-02333 (GK)
StatusPublished
Cited by15 cases

This text of 779 F. Supp. 2d 100 (Foulger-Pratt Residential Contracting, LLC v. Madrigal Condominiums, LLC) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Foulger-Pratt Residential Contracting, LLC v. Madrigal Condominiums, LLC, 779 F. Supp. 2d 100, 2011 U.S. Dist. LEXIS 45167, 2011 WL 1576095 (D.D.C. 2011).

Opinion

MEMORANDUM OPINION

GLADYS KESSLER, United States District Judge.

This matter is presently before the Court on Foulger-Pratt Residential Contracting, LLC (“Foulger-Pratt”) and Travelers Casualty and Surety Company of America’s (“Travelers”) Application to Confirm Arbitration Award [Dkt. No. 1], under 28 U.S.C. § 1332, pursuant to 9 U.S.C. § 9 against Respondent Madrigal Condominiums, LLC (“Madrigal”), and Respondent Madrigal’s Cross-Motion to Vacate Portions of Interim Arbitration Award [Dkt. No. 27]. Upon consideration of the Application, Motion, Oppositions, Replies, Surreply, and entire record herein, Foulger-Pratt’s Application to Confirm Arbitration Award is granted and Madrigal’s Motion to Vacate is denied in its entirety.

I. Procedural Background 1

The dispute in this case arises out of a construction contract (“Contract”), consisting of the Modified General Conditions of the Contract for Construction, (“Modified Contract Conditions”) [Dkt. No. 27-4], as well as the Modified Standard Form Agreement Between Owner and Contrac *105 tor, (“Modified Form Agreement”) [Dkt. No. 27-3], and the Reconciled GMP Set of Specifications (“GMP Specifications”). 2 In 2005, Madrigal entered into these agreements with Glen Construction Company, Inc. (“Glen”), the-then general contractor, for the construction of Madrigal Lofts condominiums, located at 811 4th Street, N.W. in Washington, D.C. Applicant Travelers acted as Glen’s bonding company, providing the performance and payment bonds for the project.

The parties’ Contract included an arbitration provision providing that claims and disputes with a value exceeding $100,000 be submitted to a three-member Panel of arbitrators, and that any award be considered as final, binding, and conclusive. Modified Contract Conditions § 4.4.1. The Contract also contained a provision directing the parties to first attempt mediation of their dispute, before proceeding to arbitration. Modified Contract Conditions § 4.5.2.

In June 2007, Glen stopped paying its subcontractors who were working on the Project. As a result of Glen’s non-performance under the Contract, Travelers engaged Foulger-Pratt, one of its longtime bond customers, to assume control over the project. In mid-2007, Glen assigned the Contract and its accompanying documents to Foulger-Pratt, which assumed the role of general contractor and agreed to achieve substantial completion of the project by December 31, 2007. Although Foulger-Pratt allegedly failed to meet this completion date, it did achieve substantial completion by early June 2008, as reflected in the Certificate of Substantial Completion issued by the project’s Architect and Development Manager, effective as of June 1,2008 [Dkt. No. 30-4],

Beginning in early 2008, a variety of disputes arose between the parties regarding payments to Foulger-Pratt and various subcontractor liens on the project. The disputes came to a head in December 2008, when Foulger-Pratt filed a mechanic’s lien for $2,636,467 against the project. In response, Madrigal filed an emergency motion for a temporary restraining order (“TRO”) in D.C. Superior Court, which resulted in a court order vacating the lien.

Shortly thereafter, in January 2009, the parties engaged in mediation to resolve several claims and disputes related to their underlying written agreements and the project. As a result of these efforts, on February 2, 2009, the parties executed a partial settlement agreement, (“APS”) [Dkt. No. 27-7], resolving a number of these issues. As a part of this settlement agreement, the parties agreed to designate a “Project Neutral,” who would be a licensed architect and would certify Foulger-Pratt’s completion of a punch-list of outstanding construction-related items (“Items 1-8 Punch-List”). APS ¶ 5.3. The Punch-List had been previously designated in an expert report, The Exterior Building Envelope Review Report (“Gale Report”) [Dkt. No. 27-18]. The parties further agreed to submit to’ arbitration their remaining unresolved claims, with the exception of those items reserved in the APS for the Project Neutral, as well as any future disputes that might arise between them. Id. ¶ 11.

During the arbitration proceedings, Madrigal brought ten claims against FoulgerPratt, relating to its work as general contractor. Interim Award ¶¶ 1-10 [Dkt. No. 27-11]. Foulger-Pratt, in turn, brought three cross-claims: (1) for damages for extended direct supervision costs due to Madrigal’s alleged failure to permit final *106 completion of the project; (2) for entitlement to payment for final completion of the contract or, alternatively, for recusal from completing the project due to Madrigal’s actions or inactions; and (3) for payment to Foulger-Pratt of the entire contract balance, plus pre-award interest. Id. ¶¶ 12-13.

From May to July 2009, the parties participated in hearings on these issues before the Arbitration Panel, consisting of three lawyers who were experienced in handling construction contract disputes (“Panel”). On May 26, 2009, the Panel issued an Order, (“May 26, 2009 Order”) [Dkt. No. 27-8], resolving several matters raised by the parties. The Order noted that Madrigal had potentially discovered and was investigating additional defects in the project’s exterior skin and that it might wish to bring claims pertaining to such “potential” defects before the Panel; the Order stated that such claims were not ripe and the Panel postponed ruling on those claims if, and when, they became ripe, to a second hearing. May 26, 2009 Order ¶ 1.

On September 11, 2009, the Panel received post-hearing briefs and heard post-hearing argument on September 21, 2009. The Panel issued an “Interim Award” on November 30, 2009. In this award, the Panel concluded that Foulger-Pratt was obligated to complete Items 4-8 of the Punch-List and to cure certain deficiencies in special warranties. Interim Award ¶ 14(c)-(d). The Panel also held that Foulger-Pratt was entitled to final payment as it had either satisfied, or was excused from performance of, the remaining obligations alleged by Madrigal. Id. ¶ 14(f). In connection with this ruling, the Panel ordered Madrigal to pay $1,694,655 to FoulgerPratt within 15 business days and to deposit $1,113,000 into an interest-bearing escrow account, for payment to FoulgerPratt upon completion of its remaining obligations. Id. ¶ 16. The Panel also granted some, but not all, of Madrigal’s requests for attorneys’ fees, although it reserved final determination of the amount for an “additional Interim Award” regarding such fees. Id. ¶¶ 10, 11. In calculating the amount owed to Foulger-Pratt, the Panel subtracted $175,920 in damages awarded to Madrigal, and also permitted Madrigal to retain $30,117, pending the Panel’s issuance of an interim award regarding Madrigal’s claims to attorneys’ fees. 3 Id. ¶¶ 11,16.

On December 8, 2009, Foulger-Pratt 4

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779 F. Supp. 2d 100, 2011 U.S. Dist. LEXIS 45167, 2011 WL 1576095, Counsel Stack Legal Research, https://law.counselstack.com/opinion/foulger-pratt-residential-contracting-llc-v-madrigal-condominiums-llc-dcd-2011.