L B H L L C v. V1Fiber L L C

District Court, W.D. Louisiana·Decided November 3, 2023·No. 2:23-cv-00436·Unknown

Opinion

UNITED STATES DISTRICT COURT WESTERN DISTRICT OF LOUISIANA LAKE CHARLES DIVISION

L B H L L C CASE NO. 2:23-CV-00436

VERSUS JUDGE JAMES D. CAIN, JR.

V1FIBER L L C MAGISTRATE JUDGE KAY

MEMORANDUM RULING Before the Court is “Plaintiff’s Second Rule 12(B)(6) Motion to Dismiss” (Doc. 42) filed by LBH, LLC, (“LBH”) wherein Plaintiff moves to dismiss Defendant/Plaintiff in Counterclaim, V1Fiber, LLC’s (“V1” or “Contractor”) claims in its First Amended and Supplemental Counterclaim1 for (1) defamation and tortious interference with Contractor’s business, (2) enforcement of a purported “settlement agreement” between the parties, and (3) indemnity regarding the state court suit filed in Texas. INTRODUCTION This matter involves a contract dispute over the construction of a Fiber-to-the-Home fiber optic network in western Louisiana. Plaintiff is a broadband and internet service provider that delivers affordable, reliable, high-speed fiber optic internet services to rural locations. Defendant/Counterclaimant, V1, is a provider of telecommunications industry construction, installation, general engineering, and maintenance services. On March 21, 2022, LBH and V1 entered into a Master Services Agreement (the “MSA”) wherein V1 (Contractor) agreed to construct a fiber broadband network and internet system in

1 Doc. 41. DeRidder, Louisiana (the “DeRidder Project”) and Leesville, Louisiana (the “Leesville Project”) (collectively, the “Louisiana Projects”).2 Under Section 1(b)(2) of the

Agreement, Contractor agreed to perform “in a timely and productive manner and in accordance with any time scheduled in the Statement of Work.”3 Contractor also agreed, per Section 1(b)(7) to provide “services … and end products that are satisfactory and acceptable to [Plaintiff] and free of defects, liens or encumbrances.”4 Following a dispute over the timeliness and quality of work performed by Contractor, LBH terminated the Statements of Work for the Louisiana Projects. LBH

initially filed suit against Contractor in April 2023 to gain possession of its materials in Contractor’s possession. 5 LBH subsequently amended its Complaint to assert damage claims against Contractor resulting from its alleged breach of the Agreement.6 Contractor asserted a Counterclaim alleging that it performed work on the Louisiana Projects in accordance with the specifications of LBH, as contemplated under the MSA.7

It further alleges that it properly and timely submitted invoices related to work it performed on the Louisiana Projects, which LBH never paid (the “Outstanding Invoices”).8 Contractor allegedly that it made payments to its subcontractors based on the Outstanding Invoices and upon reliance that LBH would reimburse it.9 Consequentially, Contractor recorded three different liens to recover payments for the Outstanding Invoices.

2 Counterclaim, Doc. 19, § 5, First Amended Complaint of LBH (Doc. 25, ¶ 12). 3 Doc. 19-1, p.2; Doc. 25, ¶ 8. 4 Id. 5 Doc. 1. 6 Doc. 19, ¶ 17; Doc. 25, ¶ 19. 7 Doc. 19, ¶ 7. 8 Doc. 19, ¶ 8-16. 9 Doc. 19. ¶ ¶ 13, 24. In its First Amended and Supplemental Counterclaim, in addition to its contract claims, Contractor asserts claims for (1) defamation and tortious interference with

Contractor’s business, (2) enforcement of a purported “settlement agreement,” and (3) indemnity regarding the state court suit filed in Texas. Specifically, Contractor asserts three separate claims for defamation and tortious interference: 1) “defamation by publication of false and harmful information to others, by claiming that V1FIBER, L.L.C., performed poor work, was in breach and failed to act to complete its work and address any possible punchlist;” 2) “tortious interference with contractual relations;” and 3) “tortious

interference with prospective economic relations.”10 RULE 12(b)(6) STANDARD Rule 12(b)(6) allows for dismissal when a plaintiff “fail[s] to state a claim upon which relief can be granted.” When reviewing such a motion, the court should focus on the complaint and its attachments. Wilson v. Birnberg, 667 F.3d 591, 595 (5th Cir. 2012). The

court can also consider documents referenced in and central to a party’s claims, as well as matters of which it may take judicial notice. Collins v. Morgan Stanley Dean Witter, 224 F.3d 496, 498–99 (5th Cir. 2000); Hall v. Hodgkins, 305 Fed. App’x 224, 227 (5th Cir. 2008) (unpublished). Such motions are reviewed with the court “accepting all well-pleaded facts as true

and viewing those facts in the light most favorable to the plaintiff.” Bustos v. Martini Club, Inc., 599 F.3d 458, 461 (5th Cir. 2010). However, “the plaintiff must plead enough facts

10 Doc. 19, ¶ 38. ‘to state a claim to relief that is plausible on its face.’” In re Katrina Canal Breaches Litig., 495 F.3d 191, 205 (5th Cir. 2007) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570

(2007)). Accordingly, the court’s task is not to evaluate the plaintiff’s likelihood of success but instead to determine whether the claim is both legally cognizable and plausible. Lone Star Fund v. (U.S.), L.P. v. Barclays Bank PLC, 594 F.3d 383, 387 (5th Cir. 2010). LAW AND ANALYSIS LBH moves to dismiss (1) Contractor’s claims for defamation and tortious interference, (2) enforcement of an alleged settlement agreement, and (3) any claim for

indemnity Contractor allegedly incurred to defend a Texas state court lawsuit brought against Contractor by a subcontractor. Defamation and tortious interference In its Counterclaim, V1 alleges that on or about March 29, 2023, it made formal demand against LBH for $2,025,170.25, which reflected outstanding invoices owed by

LBH.11 V1 further alleges that despite the invoices being approved by representatives of LBH, LBH was in breach of the MSA for failure to pay the invoices.12 Additionally, V1 alleges that LBH agreed to reimburse V1 for payments it made to its subcontractors, but failed to do so.13 The Counterclaim further alleges that in March and April 2023, LBH

representatives contacted local and/or municipal government officials in Louisiana and communicated that V1 preformed poor quality work, was in breach of the MSA, was not

11Id. ¶ 22. 12 Id. ¶ 25. 13 Id. paying its subcontractors, that it (LBH) would not work with V1, and that V1 was insolvent.14

On September 8, 2023, Contractor filed its “First Supplemental and Amended Counterclaim” (“Amended Counterclaim”).15 The Amended Counterclaim makes the following new allegations regarding an email sent to the Mayor of New Llano, Louisiana from Keith Soldan, Vice President of LBH, in which Soldan stated as follows: (A)s we highlighted, V1, our former General Contractor was terminated from the project due to repeated delays, negligence, poor quality or workmanship and not following industry standard best practices. Additionally, V1 who clearly has financial limitations has not been resolving invoices with their subcontractors and even attempted to thwart our efforts to pay the subcontractors in our attempts to keep the working members of your community whole. Cory, whom you have met, was able to reach out directly to the subcontractors whereby we are now working with them directly to resolve any of the outstanding invoices owed to them by V1.

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