Ja Dan, Inc. v. L-J, Inc.

898 F. Supp. 894, 1995 U.S. Dist. LEXIS 12941, 1995 WL 526536
CourtDistrict Court, S.D. Florida
DecidedAugust 18, 1995
DocketNo. 93-2135-CIV
StatusPublished
Cited by10 cases

This text of 898 F. Supp. 894 (Ja Dan, Inc. v. L-J, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Florida primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ja Dan, Inc. v. L-J, Inc., 898 F. Supp. 894, 1995 U.S. Dist. LEXIS 12941, 1995 WL 526536 (S.D. Fla. 1995).

Opinion

FINDINGS OF FACT AND CONCLUSIONS OF LAW

K. MICHAEL MOORE, District Judge.

This cause was tried before the Court non-jury. Having considered the testimony of witnesses, the documentary evidence and the stipulations of the parties, the Court enters its findings of fact and conclusions of law pursuant to Federal Rule of Civil Procedure 52.

I.Findings of fact

1. On August 24,1992, Hurricane Andrew struck south Florida, downing trees, scattering debris, and causing widespread destruction. The City of Miami Springs, Florida (the “City”) was one of the communities in Hurricane Andrew’s wake. To clean up the storm’s damage, the City put a debris removal contract out for bid (the “Springs job”).

2. Lawrence Holliday (“Holliday”), a representative of L-J, Inc. (“L-J”), a South Carolina corporation, traveled to south Florida after Hurricane Andrew had passed to get cleanup work for L-J.

3. Holliday initially decided not to bid on the Springs job. However, Earl Wheeler (“Wheeler”), a person who had worked with L-J in the past, convinced Holliday to submit a bid for him under L-J’s name. Wheeler gave Holliday a price quote for the Springs job. Holliday took this quote, added profit for L-J, and obtained approval from David Jordan, L-J’s president, to bid the total amount with the City.

4. Wheeler was to be the prime subcontractor for the Springs job if L-J was awarded the City contract. L-J then would finance the job. Under this arrangement, L-J would pay Wheeler’s expenses and would debit the payments from Wheeler’s price quote. When the City paid L-J at the end of the job, L-J would pay Wheeler his price quote, reduced by payments L-J made on his behalf. L-J would not pay for Wheeler’s expenses in excess of his price quote.

5. This financing arrangement is common among contractors in cleanup projects. Like many contractors, Wheeler did not have the resources to do the job himself and did not have a sufficient payment/performanee bond to obtain the City’s contract on his own. Wheeler thus needed to work the Springs job through L-J.

6. On Thursday, October 1, 1992, Holli-day told Wheeler that he wanted a list of the equipment Wheeler had lined up for the Springs job; that he wanted this list the next day; and that he wanted Wheeler’s equipment to be on the site Sunday evening, ready to work the following morning.

[896]*8967. L-J was the lowest bidder for the City’s contract. Consequently, on Friday, October 2, 1992, the City entered into a bid award contract with L-J for removal of debris from public streets and rights of way.

8. Upon award of the contract, American Insurance Company (“American”) issued a payment and performance bond guaranteeing L-J’s obligations to the City and its workers.

-'9. At approximately the same time, L-J also obtained a contract to remove debris at Homestead Air Force Base. This was the biggest Hurricane Andrew project that L-J obtained. L-J subcontracted the Homestead job to Wheeler.

10. Contrary to Holliday’s request, Wheeler did not contact Holliday on Friday; October 2, 1992 to identify his equipment for the Springs job. Instead, Wheeler was busy arranging his replacement at the Springs job and was still seeking equipment for the site.

11. On Saturday, October 3, 1992, Wheeler contracted with Charles McQueen (“McQueen”) to take over the Springs job. In a one-page, handwritten contract, Wheeler and McQueen entered into an agreement for the Springs job “per same agreement that Earl Wheeler, L-J Incorporated, and Miami Springs had.” McQueen agreed to pay $3000 to Wheeler “and his two partners” and $3500 to Ja Dan for one day’s work. Wheeler signed the agreement as “Earl Wheeler L-J Incorporated.” McQueen signed the contract on behalf of McQueen Contracting.

12. Wheeler had not met McQueen prior to the Springs job. McQueen was a friend of Holliday, and Holliday had asked McQueen if he wanted to work on the cleanup.

13. McQueen had no men or equipment to start the Springs job by Monday, October 5, 1992, which was the commencement date under L-J’s City contract. Wheeler thus needed to find a crew to work that day.

14. On Sunday, October 4, 1992, Wheeler contacted Jeff Griffin (“Griffin”), a principal of Ja Dan, Inc. (“Ja Dan”), to obtain Ja Dan’s assistance with the Springs job. Ja Dan possessed heavy equipment, a service truck, and a full crew.

15. Wheeler and Griffin drove out to the job site that evening. Wheeler called himself a supervisor for L-J, believing he was acting on L-J’s behalf to secure equipment. He told Griffin that L-J would lose its contract with the City unless a crew was working Monday morning. Wheeler asked Griffin to show up Monday for at least one day’s work, and he agreed to Ja Dan’s hourly charges for its equipment. Wheeler told Griffin that L-J would pay Ja Dan directly for its work and remarked that he would soon be replaced by another L-J supervisor.

16. Griffin agreed to mobilize Ja Dan by Monday morning. Soon thereafter, Holliday contacted Wheeler over Wheeler’s car phone. Wheeler informed Holliday that he had Griffin in the car and was getting equipment ready. Holliday told Wheeler to get Griffin to the job site by the morning.

17. The City debris removal job had been divided into two sections — the north and south sections. Ja Dan was assigned to the north section. By early Monday morning, Ja Dan had set up its equipment at the “staging area” for the north section and was in attendance at a preconstruction meeting. Holliday, Wheeler and City officials also were at the meeting.

18. Because the City was satisfied by Ja Dan’s presence at the job site, L-J was not declared in default of the City contract. Hol-liday thus thanked Griffin at the end of the day for helping L-J keep the Springs deal. Although there is conflicting testimony, the greater weight of the evidence shows that Holliday also told Griffin that Ja Dan would be paid a full twelve hours for the day’s work and asked Griffin to work the following day. Holliday remarked that Ja Dan might have to accept a reduction in the hourly rates it was charging for its equipment.

19. Ja Dan attended the preconstruction meeting on the next day, Tuesday, October 6, 1992. Holliday, Wheeler and McQueen also were present. After the meeting, Holliday informed Griffin that McQueen was replacing Wheeler and would set new hourly rates for Ja Dan’s equipment. Holliday said he would assign Ja Dan to the City’s north section and McQueen’s crew to the south section. On or about this time, Wheeler left the Springs job [897]*897site to work at the Homestead Air Force Base.

20. Ja Dan continued work on October 7, 1992, still under the hourly rates agreed to by Wheeler. Near the middle of the day, Holliday told Griffin that Ja Dan’s pay structure would be changed so that Ja Dan would be paid by the hour for some equipment and by cubic yardage of debris for other equipment. He told Griffin and McQueen to work out the details of this new arrangement.

21. McQueen and Griffin went to a nearby diner and entered into a one-page “reneT gotiated contract,” which McQueen dictated and Griffin hand-wrote.1 This contract specified hourly rates for certain of Ja Dan’s equipment and established a rate of $1.349 per cubic yard of debris for other pieces of equipment.

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Bluebook (online)
898 F. Supp. 894, 1995 U.S. Dist. LEXIS 12941, 1995 WL 526536, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ja-dan-inc-v-l-j-inc-flsd-1995.