L.W. Matteson, Inc. v. Sevenson Environmental Services, Inc.

831 F. Supp. 2d 608, 2011 WL 5597353, 2011 U.S. Dist. LEXIS 132663
CourtDistrict Court, W.D. New York
DecidedNovember 17, 2011
DocketNo. 10-CV-168S
StatusPublished
Cited by2 cases

This text of 831 F. Supp. 2d 608 (L.W. Matteson, Inc. v. Sevenson Environmental Services, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
L.W. Matteson, Inc. v. Sevenson Environmental Services, Inc., 831 F. Supp. 2d 608, 2011 WL 5597353, 2011 U.S. Dist. LEXIS 132663 (W.D.N.Y. 2011).

Opinion

DECISION AND ORDER

WILLIAM M. SKRETNY, Chief Judge.

I. INTRODUCTION

In this action, Plaintiff L.W. Matteson, Inc. (“Matteson”) brings suit against Defendant Sevenson Environmental Services, Inc. (“Sevenson”) claiming that Defendant breached its contract with Plaintiff by failing to pay the agreed upon amount following Plaintiffs completion of dredging services on Defendant’s behalf. Defendant counterclaims alleging Plaintiff negligently misrepresented its ability to perform the contract. Defendant also makes a cross-motion for sanctions claiming that Plaintiff destroyed evidence critical to its defense. Presently before this Court is Plaintiffs Motion for Summary Judgment on its breach of contract and prompt payment claims.1 Also before this Court is Defen[611]*611dant’s Cross-Motion for Sanctions.2 Additionally, this Court has before it Plaintiffs Motion for Status Conference and Suggestions in Support.3 For the reasons discussed below, Plaintiffs Motion for Summary Judgment is granted in part and denied in part, Defendant’s Cross-Motion for Sanctions is denied, and Plaintiffs Motion for Status Conference and Suggestions in Support is denied as moot.

II. BACKGROUND

A. Facts

Plaintiff Matteson is an Iowa corporation with its principal place of business in Burlington, Iowa. (Complaint (“Comp.”), Docket No. 1, ¶ 1.) Matteson is in the business of dredging materials from waterways and major bodies of water throughout the United States, in the role of general contractor, subcontractor, and lessor. (Plaintiff L.W. Matteson’s Reply to Defendant’s Response to the Statement of Material Facts in Support of Mattesoris Motion for Summary Judgment (“Statement”), Docket No. 54, ¶ 1.) Defendant Sevenson is a New York corporation with its principal place of business in Niagara Falls, New York. Sevenson is in the business of environmental remediation projects and acts as a general contractor. (Id. at ¶ 2; Comp. ¶ 2.)

The TVA is a corporate agency and instrumentality of the United States engaged in electrical power generation. (Statement ¶ 4.) The TVA had been storing fly ash waste in a storage cell adjacent to the Emory River. (Id. ¶¶ 5, 6.) This storage cell failed on December 22, 2008, releasing fly ash into the Emory River, prompting the TVA to issue a Request for Proposal for dredging the Emory River of fly ash. (Id. ¶ 7, 9.)

Sevenson submitted a proposal which included the use of two dredging vessels, as well as a third vessel as needed, to meet the TVA’s specifications that an average minimum of 9,000 cubic yards be dredged per day, for a total of 1.5 million cubic yards over the course of the project. (Id. ¶¶ 10, 11, 12.) Sevenson and the TVA entered into a contract on July 15, 2009 for dredging operations in the Emory River, with an effective date of July 1, 2009. (Id. ¶ 16.)

Prior to entering the contract with the TVA, Sevenson executed a Purchase Order (“PO”) with Matteson, in which Matteson agreed to provide a dredging vessel, equipment, and personnel, and perform dredging work as directed by Sevenson at a per hour unit price. (Id. ¶¶ 20, 23.) The PO provided that Matteson would provide good and merchantable equipment, and would repair and replace equipment that Sevenson found faulty or defective. (Id. ¶ 23.) The PO also included a series of rental rates that set a payment schedule [612]*612dictating how Matteson would be paid. (Id. ¶ 24.) Pursuant to this schedule, Matteson would be paid 100% “pay time” ($2,100) per hour its dredge was in operation with the cutterhead turning and the main pump moving material through the pipeline. (Id.) Matteson would be compensated 70% ($1,470) per hour while it was moving anchors, cleaning swing lines, or other similar work. (Id.) Finally, Matte-son would only receive 40% ($840) per hour the dredge was down due to inclement weather, and 0% for any time relating to operating repairs and mechanical breakdowns in excess of 2 hours per event. (Id.) A similar percentage breakdown was calculated for use of a booster pump. (Id. ¶ 26.) The PO estimated 2000 hours of dredging at a 100% payment rate, 500 hours at a 70% rate, and 200 hours at a 40% rate. (Id.) However, the PO also stated that Matteson would be paid a unit price regardless of whether the final quantities were more or less than the estimated quantities. (Id.) Additionally, Matteson was to receive lump payments of $625,000 and $310,000 for mobilization and demobilization of the drill, respectively. (Id. ¶ 25.)

Sevenson retained the right to terminate the contract for any reason and did so on February 1, 2010 after dredging operations were completed. (Id. ¶ 35.) Matte-son calculated that the total hours of operation under the 100%, 70%, and 40% pay categories added up to a final cost of $5,173,273.50. (Id. ¶ 44.) This included 1,709.96 hours at 100% pay time, 776.01 hours at 70% pay time, and 85.42 hours at 40% pay time. (Id.) Sevenson reevaluated Matteson’s calculations and paid Matteson only $2,931,587.11. (M ¶¶44, 47.) Matte-son brings this action to recover the difference, plus interest. (Comp^ 53.) Seven-son counterclaims alleging that Matteson misrepresented its ability to dredge 1.5 million cubic yards of fly ash at an average daily rate of 12,000-20,000 in situ cubic yards. (Answer with Counterclaim, Docket No. 8, ¶ 15.) Sevenson also claims Matteson was responsible for the destruction of evidence crucial to Sevenson’s defense. (Memorandum of Law in Opposition to Plaintiffs Motion for Summary Judgment and in Support of Defendant’s Cross-Motion for Sanctions (“Defl’s Opp’n”), Docket No. 52,14.)

B. Procedural History

Plaintiff commenced this action on March 2, 2010 by filing a complaint in the United States District Court for the Western District of New York. On April 5, 2010, Sevenson filed an Answer and Counterclaim. Matteson responded with its Reply on April 26, 2010 and this Court referred non-dispositive pre-trial matters to the Honorable H. Kenneth Schroeder, Jr., United States Magistrate Judge. After a series of amended case management orders, discovery was set to close by June 1, 2011. Immediately prior to the close of discovery, Sevenson moved Judge Schroeder to grant an extension of time to complete discovery, as well as a motion to amend/eorrect its Answer to include a recalculation of damages and clarification of its negligent misrepresentation counterclaim. The motions were fully briefed. Before Judge Schroeder could issue a decision resolving Sevenson’s motions, Matteson filed its Motion for Summary Judgment. This Court stayed Judge Schroeder’s amended case management order of March 4, 2011 pending resolution of Plaintiffs motion. Sevenson filed its Opposition to Matteson’s motion on August 12, 2011, including a Cross-Motion for Sanctions. Matteson filed a reply to Sevenson’s Opposition on September 2, 2011, and a Response to Sevenson’s cross-motion on September 6, 2011. Sevenson filed an Affidavit in reply on September 16, 2011. Most recently, on October 27, [613]*6132011 Matteson filed a Motion for Status Conference and Suggestions in Support, requesting that this Court set a trial date.

III. DISCUSSION AND ANALYSIS

A. Summary Judgment Standard

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831 F. Supp. 2d 608, 2011 WL 5597353, 2011 U.S. Dist. LEXIS 132663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lw-matteson-inc-v-sevenson-environmental-services-inc-nywd-2011.