Gilbane Building Co. v. Nemours Foundation

568 F. Supp. 1085, 1983 U.S. Dist. LEXIS 14887
CourtDistrict Court, D. Delaware
DecidedAugust 4, 1983
DocketCiv. A. 83-192
StatusPublished
Cited by8 cases

This text of 568 F. Supp. 1085 (Gilbane Building Co. v. Nemours Foundation) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gilbane Building Co. v. Nemours Foundation, 568 F. Supp. 1085, 1983 U.S. Dist. LEXIS 14887 (D. Del. 1983).

Opinion

OPINION

LATCHUM, Chief Judge.

This diversity action involves a dispute between Gilbane Building Company (“Gil-bane”), on the one hand, and The Nemours Foundation (“Nemours"), Saxelbye, Powell, Roberts & Ponder, Inc. (“Saxelbye”), and Furlow Associates, Inc. (“Furlow”) on the other, relating to the construction of a new hospital building for the Alfred I. duPont Institute located near Wilmington, Delaware (the “Institute”). 1 The plaintiff, Gil-bane, has brought this action (the “Delaware action”) against the defendants, Nemours, Saxelbye, and Furlow, seeking: (1) preliminary injunctive relief compelling the defendants to process work change orders and to issue updated contract drawings, (2) declaratory relief interpreting the rights and responsibilities of the parties under a construction contract, and (3) a judgment for damages against the defendants. (Docket Item [“D.I.”] 1 & 2.) The defendants have moved to dismiss, or in the alternative to stay, this action on the grounds that such a dismissal or stay will promote the interest of federal-state comity and will avoid interference by a federal court with a state court proceeding. (D.I. 3.)

I. BACKGROUND FACTS

The Institute is a non-profit hospital facility located near Wilmington, Delaware, established by Nemours under and by virtue of the Will of the late Alfred I. duPont. The hospital, which provides services for the care and treatment of crippled children, has operated since the 1940’s. (D.I. 1 & 15, ¶¶ 6 & 7.). The present addition to the hospital is intended to increase the outpatient care capacity and to provide room for additional services. The architectural design includes, within the hospital building and grounds, a school (grades 1-12) to be attended by patients undergoing long-term rehabilitation therapy, recreational facilities, including a gymnasium, auditorium, Olympic size swimming pool, handball courts and full facilities for special handicapped Olympics. (D.I. 26 at 9.) The addition will also contain research facilities, physicians’ offices, and other general hospital services.

The hospital is being built by phased construction. (D.I. 1 & 15, ¶ 11.) Different contractors have been engaged by Nemours for each phase of construction, and each *1088 contractor is responsible only for a specific portion of the construction work. On January 21, 1980, Gilbane and Nemours entered into a contract (the “Contract”) whereby Gilbane agreed to perform certain work as a contractor in connection with the construction of Phase 5B of the new hospital building. Phase 5B follows at least six other separate phases (phases 1, 2, 3, 4, 5 and 5EXT), which have been or are being performed by other contractors and involves the construction of certain interior portions of the hospital, such as interior services, walls, ceiling, finishes, together with certain procurement services. (D.I. 1, Ex. A, Art. 2.) Gilbane has subcontracted major contract work to Pierce Associates, Inc. (“Pierce”) and Dynalectric Company (“Dynalectric”) whereby Pierce is responsible for the mechanical, plumbing and fire protection facilities and Dynalectric is responsible for the electrical work. (D.I. 28 at 9.)

On February 28, 1983 Nemours filed suit in Equity Court in the Circuit Court for the Fourth Judicial Circuit in and for Duval County Florida against Gilbane, Pierce and Dynalectric (see D.I. 18, Ex. A) (the “Florida action”). In that action, Nemours seeks specific performance of the Contract with Gilbane, specific performance of Gilbane’s contract with Pierce and Dynalectric, as well as damages for breach of contract and an accounting. Id. On April 5, 1983 Gil-bane filed the instant action.

II. DISMISSAL OR STAY OF PARALLEL ACTION

The defendants argue that all of the relief sought by. Gilbane in this action can be obtained in the Florida action. The defendants thereby contend that, because of the existence of a prior parallel litigation which presents non-federal issues substantially identical to those presented here, this Court should exercise its discretion and dismiss or stay this case.

Federal district courts have the inherent discretionary power to dismiss or stay proceedings pending the disposition of a parallel proceeding in a state court. See Guenveur v. State Farm Mutual Automobile Insurance Co., 551 F.Supp. 1044, 1045 (D.Del.1982); United States v. Cargill, Inc., 508 F.Supp. 734, 747 (D.Del.1981). This power is incidental to the power of every court to “control the disposition of the causes on its docket with economy of time and effort for itself, for counsel, and for litigants.” Landis v. North America, 299 U.S. 248, 254, 57 S.Ct. 163, 166, 81 L.Ed. 153 (1936). The district court’s discretion in this regard however, “is narrowly circumscribed, and in general only with the presence of exceptional circumstances will the existence of concurrent state proceedings warrant the abdication of the ‘virtually unflagging obligation of the federal courts to exercise the jurisdiction given them’.” Cargill, supra, 508 F.Supp. at 748, quoting Colorado River Water Conservation District v. United States, 424 U.S. 800, 817-18, 96 S.Ct. 1236, 1246-47, 47 L.Ed.2d 483 (1976).

The party seeking such a dismissal or stay has the burden of demonstrating that grounds exist to justify its grant. Landis, supra, 299 U.S. at 255, 57 S.Ct. at 166; Guenveur, supra, 551 F.Supp. at 1046; Cargill, supra, 508 F.Supp. at 748. The defendants, therefore, must “demonstrate either ‘exceptional circumstances’ or ‘a clear case of hardship or inequity in being required to go forward’ before” a dismissal or a stay may issue. Guenveur, supra, 551 F.Supp. at 1046, quoting Landis, supra, 299 U.S. at 255, 57 S.Ct. at 166.

No set formula exists for determining the existence of exceptional circumstances. Although there must be parallel proceedings, this alone is insufficient to warrant the grant of a stay or dismissal. Cargill, supra, 508 F.Supp. at 748-49.

Beyond this the Court must consider all relevant factors, engaging in a balancing process. In this process, however, the unflagging obligation to exercise jurisdiction is a factor to be given heavy weight:
No one factor is necessarily determinative; a carefully considered judgment taking into account both the obligation to exercise jurisdiction and the combi *1089 nation of factors counselling against that exercise is required.
Colorado River Water Conservation Dist. v. United States, supra, 424 U.S. at 818-19, 96 S.Ct. 1246-47. Among the various factors that have been considered in other cases are the inconvenience of the federal forum, Colorado River Water Conservation Dist. v. United States, supra, the desirability of avoiding piecemeal litigation, id.,

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Bluebook (online)
568 F. Supp. 1085, 1983 U.S. Dist. LEXIS 14887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilbane-building-co-v-nemours-foundation-ded-1983.