Greenberry Industrial, LLC v. ESI, Inc. of Tennessee

District Court, N.D. Georgia·Decided December 12, 2022·No. 1:22-cv-00206·Unknown

Opinion

IN THE UNITED STATES DISTRICT COURT FOR THE NORTHERN DISTRICT OF GEORGIA ATLANTA DIVISION

GREENBERRY INDUSTRIAL, LLC,

Plaintiff,

v. CIVIL ACTION FILE

NO. 1:22-CV-206-TWT

ESI, INC. OF TENNESSEE,

Defendant.

OPINION AND ORDER This is a breach of contract action. It is before the Court on the Defendant’s Motion for Partial Judgment on the Pleadings [Doc. 27]. For the reasons set forth below, the Defendant’s Motion for Partial Judgment on the Pleadings [Doc. 27] is DENIED. I. Background The Plaintiff, Greenberry Industrial, LLC (“GBI”), is an industrial fabricator that offers a variety of processing piping services. (Am. Compl. ¶ 2). The Defendant, ESI, Inc. of Tennessee (“ESI”), is a general contractor that provides engineering, procurement, and construction services to support energy projects. ( ¶ 4). In the present case, ESI subcontracted GBI to provide certain services in support of a boiler replacement project in Port Hudson, Louisiana (“the Project”), and the parties memorialized their agreement in a final purchase order (“the Subcontract”). ( ¶¶ 5, 8, 16). After entering into the Subcontract, GBI and ESI also executed six Change Orders that altered the scope of GBI’s work on the Project—though the parties dispute the validity of certain wording in the Change Orders. (

¶¶ 23–31). And in addition to the work under the six Change Orders, GBI claims that it performed Extra Work, beyond the scope of the Change Orders, for which ESI has refused to provide compensation. ( ¶¶ 32–34). GBI also claims that it is entitled to an Early Completion Bonus because it achieved Mechanical Completion under the Subcontract prior to July 2, 2021, which it claims was the effective early completion deadline. ( ¶¶ 35–39). Between the

Subcontract, the Early Completion Bonus, the Change Orders, and the Extra Work, GBI alleges that ESI failed to pay the full amount owed for the services it performed. ( ¶¶ 40–46). In response to GBI’s allegations in the Amended Complaint, ESI counterclaims for damages, alleging that GBI failed to perform its duties under the Subcontract and the Change Orders. ESI claims that it is entitled to liquidated damages for GBI’s failure to reach Mechanical Completion by June

17, 2021, which ESI claims was the effective completion deadline as established in Change Order 2. ( ¶¶ 30, 34). ESI also claims that GBI breached the Subcontract by issuing eleven “frivolous” Change Orders for the Extra Work that GBI claims it completed on the Project. ( ¶¶ 41–44). Finally, ESI claims damages for its defense of a lien claim that GBI filed in Louisiana, for its defense of the present lawsuit, and for various expenses it 2 incurred after GBI allegedly breached the Subcontract. ( ¶¶ 45–51). ESI now moves for partial judgment on the pleadings as to GBI’s claims and its counterclaims.

II. Legal Standard Federal Rule of Civil Procedure 12(c) allows a party to move for judgment on the pleadings “[a]fter the pleadings are closed—but early enough not to delay trial.” A court should grant a motion for judgment on the pleadings where “there are no material facts in dispute and the moving party is entitled to judgment as a matter of law.” , 405 F.3d 1251, 1253 (11th Cir.

2005). “A motion for judgment on the pleadings is governed by the same standard as a motion to dismiss under Rule 12(b)(6).” , 910 F.3d 1345, 1350 (11th Cir. 2018). A complaint should be dismissed under Rule 12(b)(6) only where it appears that the facts alleged fail to state a “plausible” claim for relief. , 556 U.S. 662, 678 (2009); Fed. R. Civ. P. 12(b)(6). A complaint may survive a motion to dismiss for failure to state a claim, however, even if it is “improbable” that a plaintiff would be

able to prove those facts; even if the possibility of recovery is extremely “remote and unlikely.” , 550 U.S. 544, 556 (2007). In ruling on a motion for judgment on the pleadings, the Court must accept the facts pleaded in the complaint as true and construe them in the light most favorable to the nonmoving party. , 405 F.3d at 1253.

3 III. Discussion ESI moves for partial judgment on the pleadings, arguing that GBI is not entitled to recover damages under either its breach of contract theory or

its quasi-contractual theories. (Br. in Supp. of Def.’s Mot. for Partial J. on the Pleadings, at 1). Specifically, ESI argues that GBI is barred from recovering an Early Completion Bonus, that the relief GBI seeks is barred by the Subcontract or has been waived, that GBI’s quasi-contract theories fail because an express contract exists, and that ESI is entitled to recovery on its liquidated and direct damages counterclaims. ( at 2). In response, GBI argues generally

that ESI’s motion rests largely on its Answer and fails to address GBI’s Amended Complaint. (Pl.’s Resp. Br. in Opp’n to Def.’s Mot. for Partial J. on the Pleadings, at 1). The Court first considers GBI’s contractual theories of relief, then GBI’s quasi-contractual theories, and lastly ESI’s counterclaims. A. GBI’s Contractual Theories of Relief ESI makes several arguments regarding its contention that GBI’s breach of contract claim is barred by the Subcontract. (Br. in Supp. of Def.’s

Mot. for Partial J. on the Pleadings, at 5 (citing , 349 Ga. App. 374, 377–78 (2019) (“The cardinal rule of contract construction is to ascertain the parties’ intent and where the contract terms are clear and unambiguous, the court will look to that alone to find the true intent of the parties.” (citation omitted)))). ESI argues (1) that the Subcontract expressly bars GBI from recovering indirect or consequential damages, (2) that 4 GBI has waived its right to additional recovery for its claimed Extra Work by agreeing to certain Change Orders, (3) that GBI is not entitled to a price increase or deadline extension because it failed to provide timely notice,

(4) that the Subcontract negates GBI’s claim to recover the Early Completion Bonus, (5) and that GBI was not entitled to deadline extensions due to weather delays. ( at 5–15). The Court addresses each of these arguments and GBI’s responses thereto in turn. 1. Indirect and Consequential Damages ESI argues that the following terms of the Subcontract expressly bar

GBI’s recovery of indirect or consequential damages and thus that it is entitled to judgment as a matter of law as to such claims made by GBI: Limitation of Liability – Notwithstanding any other provision to the contrary in this Subcontract . . . neither party shall be liable to the other for any indirect, incidental, consequential, special, exemplary or punitive damages arising from or related to this Subcontract Agreement, its performance, enforcement, breach or termination, such as, but not limited to, loss of revenue, anticipated profits, or loss of business . . . .

( at 6 (quoting Ans. ¶ 33; Doc. 20-2 ¶ 29)). ESI claims that GBI seeks to recover such damages “as impact costs due to delay or Extra Work” and its “alleged inefficiency and productivity losses.” ( at 7). GBI argues, in response, that ESI’s argument fails for several reasons. (Pl.’s Resp. Br. in Opp’n to Def.’s Mot. for Partial J. on the Pleadings, at 9). First, GBI argues that ESI fails to specify which of GBI’s claims are for indirect or consequential damages. ( ).

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Greenberry Industrial, LLC v. ESI, Inc. of Tennessee, (N.D. Ga. 2022).

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