Harris Builders, L.L.C. v. URS Corp.

861 F. Supp. 2d 746, 2012 U.S. Dist. LEXIS 36275, 2012 WL 928712
CourtDistrict Court, E.D. Louisiana
DecidedMarch 19, 2012
DocketCivil Action No. 11-569
StatusPublished
Cited by10 cases

This text of 861 F. Supp. 2d 746 (Harris Builders, L.L.C. v. URS Corp.) is published on Counsel Stack Legal Research, covering District Court, E.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Harris Builders, L.L.C. v. URS Corp., 861 F. Supp. 2d 746, 2012 U.S. Dist. LEXIS 36275, 2012 WL 928712 (E.D. La. 2012).

Opinion

ORDER AND REASONS

CARL J. BARBIER, District Judge.

Before the Court are Defendant’s Rule 12(c) Motion for Judgment on the Pleadings to Dismiss Plaintiffs Complaint (Rec. Doc. 12), Plaintiffs Opposition (Rec. Doc. 13), Defendant’s Reply (Rec. Doc. 21), and Plaintiffs Sur-reply (Rec. Doc. 27). Having considered the motion and legal memoranda, the record, and the applicable law, the Court finds that the motion should be [748]*748GRANTED IN PART and DENIED IN PART, as set forth below.

PROCEDURAL HISTORY AND BACKGROUND FACTS

Plaintiff Harris Builders, L.L.C. (“Harris”) initiated this lawsuit alleging that Defendant URS Corporation (“URS”) is liable to Harris for damages it has incurred due to URS’s acts regarding a construction contract to build a warehouse for the Port of South Louisiana (the “Owner”). The complaint, which was filed on March 11, 2011, alleges that Harris was the general contractor for the project and entered into a public contract (the “Contract”) with the Owner worth $5,994,600. URS is alleged to have prepared the plans and specifications for the project and to have served as an engineer, consultant, construction manager, and representative of the Owner during the bid, Contract, and construction phases of the project.

Harris’s complaint alleges that URS intentionally and negligently violated a number of duties owed to Harris, which caused Harris economic harm. Among those duties alleged are URS’s duties to manage the project in a fair manner, approve completed work when warranted, develop plans and specifications to appropriate standards of quality, not to interfere with Harris’s ability to perform the project, and to timely and fairly review and approve additional time and compensation for work performed by Harris that is outside the scope of the plans, specifications, and Contract documents. Harris alleges that as a result of URS’s actions, it has incurred damages, including liquidated damages, extended overhead costs, and general condition costs. Harris alleges that URS continues to invoice the Owner for URS’s work, and the Owner continues to use funds earned by Harris to pay URS for its improper conduct.

The complaint contains three counts. Count I arises under “Louisiana Civil Code articles 2815 et seq.” Rec. Doc. 1, at 6, ¶ 26. Count II arises under “La.Rev.Stat. 9:2771.” Id. at 8, ¶ 33. Count III arises under “Louisiana Civil Code article 2298.” Id. at 9, ¶42. Additionally, all three counts are said to arise under “other aspects of Louisiana law.” Id. at 6, ¶ 26; at 8, ¶ 33; at 9, ¶ 42. Harris demanded a jury trial. URS filed the instant motion for judgment oh the pleadings, which has been noticed for submission on February 29, 2012.

THE PARTIES’ ARGUMENTS

URS argues that the entire action should be dismissed. URS characterizes Count I as a claim for tortious interference with contract that, under the facts pleaded, finds no basis under Louisiana law. URS avers that this count is focused upon URS’s alleged interference with Harris’s performance and completion of the construction project. It argues that under Louisiana law, tortious interference with contract is only recognized where a corporate officer intentionally causes his own corporation to breach the corporation’s contract with the complaining party. Because there is no allegation of any contract between Harris and URS, URS argues that the tortious interference claim in Count I should be dismissed. URS also argues that Harris’s claim of negligent interference fails as a matter of law.

As to Count II, URS asserts that the statute cited in the complaint, Louisiana Revised Statutes section 9:2771, does not provide a cause of action, but rather provides only for the statutory immunity of a contractor in certain circumstances. URS argues that the statute is purely defensive in nature, and therefore Harris may not use it as the basis of its lawsuit. URS argues that Count III, a claim for unjust [749]*749enrichment, should be dismissed because there are other legal remedies available to Harris and because any enrichment in this case was justified. URS argues that Harris has an available breach of contract claim against the Owner, which forecloses any remedy for unjust enrichment. Further, URS argues, because other counts have been asserted in the complaint, the unjust enrichment count should be dismissed. Additionally, it argues that any enrichment was justified because URS’s contract with the Owner permitted the actions URS took.

Harris argues that Louisiana law recognizes the causes of action in its complaint and that it has pled sufficient facts to state claims in each count. Rather than respond to URS’s arguments concerning a claim for tortious interference with contract under Louisiana law, Harris characterizes Count I as a claim for negligence and negligent professional undertaking, which it alleges have long been recognized under Louisiana law. Haras argues that the facts alleged state a claim for negligent professional undertaking: URS’s defective plans and specifications caused Harris economic injury, it was foreseeable that Harris would be injured by URS’s acts, and there is a closeness between Harris’s injury and URS’s actions based on URS’s approval of Harris’s payment applications and URS’s management of the construction project.

Concerning Count II, Harris argues that section 9:2771 does not merely grant immunity, but also implicitly provides a cause of action. It avers that it was “held liable” within the meaning of the statute because it was required to re-perform work rejected by URS and was charged additional administration and engineering fees by URS. It also argues that it needs the statute to support its other claims and defeat URS’s defenses. As to the unjust enrichment claim in Count III, Harris argues that where the Contract is not pled in the complaint, there is no way to ascertain whether Harris could bring a breach of contract action against the Owner, and therefore no way to tell whether other legal remedies are available so as to foreclose an unjust enrichment claim in this case. Additionally, there is a factual issue as to whether URS’s actions under its contract with the Owner were justified so as to defeat an unjust enrichment claim. Finally, Harris points out that the complaint states the unjust enrichment claim as providing recovery to the extent there is no other available legal remedy.

In reply, URS argues that Harris now improperly attempts to add a new cause of action, or to convert the tortious interference claim in Count I into a new claim for negligence and negligent professional undertaking.' URS argues that this untimely attempt to add a new cause of action should be rejected and that Harris has not shown good cause for amending his complaint beyond the expiration date for filing pleading amendments. As to Count II, URS asserts that Harris cannot be “held hable” because URS has not asserted a counterclaim against Harris. Therefore, URS argues, section 9:2771 does not provide a cause of action. As to Count III, in support of its argument that other legal remedies are available, URS argues that Harris has put the Contract at issue in the complaint, and that URS could submit a copy to the Court if necessary.

In its sur-reply, Harris argues that the complaint fairly put URS on notice of its cause of action for negligence, including a claim for negligent professional undertaking.

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Bluebook (online)
861 F. Supp. 2d 746, 2012 U.S. Dist. LEXIS 36275, 2012 WL 928712, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-builders-llc-v-urs-corp-laed-2012.