MG Dyess v. MarkWest

CourtColorado Court of Appeals
DecidedMay 22, 2025
Docket24CA0585
StatusUnpublished

This text of MG Dyess v. MarkWest (MG Dyess v. MarkWest) is published on Counsel Stack Legal Research, covering Colorado Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
MG Dyess v. MarkWest, (Colo. Ct. App. 2025).

Opinion

24CA0585 MG Dyess v MarkWest 05-22-2025

COLORADO COURT OF APPEALS

Court of Appeals No. 24CA0585 City and County of Denver District Court No. 18CV34745 Honorable Andrew J. Luxen, Judge

M.G. Dyess, Inc., a Mississippi corporation,

Plaintiff-Appellee,

v.

MarkWest Liberty Midstream & Resources, L.L.C., a Delaware limited liability corporation,

Defendant-Appellant.

JUDGMENT AFFIRMED

Division II Opinion by JUDGE FOX Gomez and Hawthorne*, JJ., concur

NOT PUBLISHED PURSUANT TO C.A.R. 35(e) Announced May 22, 2025

Wheeler Trigg O’Donnell LLP, Meghan Frei Berglind, Denver, Colorado; Kilpatrick Townsend & Stockton LLP, Adam H. Charnes, Dallas, Texas; Kilpatrick Townsend & Stockton LLP, R. Lee Mann III, Atlanta, Georgia, for Plaintiff-Appellee

Snell & Wilmer L.L.P., James D. Kilroy, Ellie Lockwood, Denver, Colorado, for Defendant-Appellant

*Sitting by assignment of the Chief Justice under provisions of Colo. Const. art. VI, § 5(3), and § 24-51-1105, C.R.S. 2024. ¶1 In this construction contract dispute, defendant, MarkWest

Liberty Midstream & Resources, L.L.C. (MarkWest), appeals the

remand court’s order setting the amount of quantum meruit

damages awarded to plaintiff, M.G. Dyess, Inc. (Dyess), at

$31,702,197.14 and denying MarkWest’s motion for a new trial. We

affirm the district court’s judgment.

I. Background

¶2 MarkWest, a corporation that processes and transports

natural gas, entered into three contracts with Dyess, a pipeline

construction company, to install thousands of feet of pipeline. Each

contract concerned a particular length of pipeline, called a “spread,”

and each spread was assigned a lump sum payment amount and a

“mechanical completion date” after which liquidated damages would

accrue if the spread remained incomplete.

¶3 According to Dyess, MarkWest materially hindered its work,

increasing the costs and duration of the project. Dyess sued

MarkWest, asserting claims for breach of contract, negligent

misrepresentation, fraudulent nondisclosure, fraud, promissory

estoppel, and quantum meruit. MarkWest countered that it had

not hindered Dyess’s work and that Dyess had failed to achieve

1 mechanical completion by the contractual deadlines. MarkWest

counterclaimed for liquidated damages under the three operative

contracts. Both parties demanded a jury trial, and the multi-day

trial began February 3, 2020.

¶4 MarkWest maintained that Dyess’s promissory estoppel and

quantum meruit claims were not triable to the jury because they

were equitable claims. Dyess argued that these claims were legal

and that MarkWest had waived any objection to a jury trial.

¶5 Concluding that Dyess had brought “a mix of legal and

equitable claims,” the trial court submitted all the claims to the jury

under C.R.C.P. 39(c), which allows courts to “try any issue with an

advisory jury” in “all actions not triable by a jury.” The court also

noted that, if the jury awarded relief on an “arguably equitable

claim,” the court could allow further briefing.

¶6 The jury rejected Dyess’s claims, except its quantum meruit

claim, and awarded $26,039,641 in damages. It also awarded

MarkWest $4,500,000 in liquidated damages for its counterclaim.

MarkWest immediately moved to treat the jury’s quantum meruit

verdict as advisory, asking the court to decide the issue.

2 ¶7 MarkWest urged the court to conclude that MarkWest was not

liable to Dyess for the quantum meruit claim, and in the

alternative, that Dyess could only recover $934,436, the

approximate amount for the items listed in Jury Instruction 60 —

outlining the elements for a quantum meruit recovery. Dyess

countered that its expert had testified to overall losses equal to or

greater than the amount awarded, so the $26,039,641 verdict had

evidentiary support.

¶8 As relevant here, the trial court concluded that quantum

meruit is “an equitable theory of recovery . . . triable by the court

and not by a jury, subject to the right of the court to impanel an

advisory jury under C.R.C.P. 39(c).” It accepted the jury’s “advisory

verdict” — finding that MarkWest was liable under a quantum

meruit theory — but reduced the damages to $934,436.1

¶9 Dyess next asked for a judgment notwithstanding the verdict

(JNOV) on MarkWest’s counterclaim, asserting that it had achieved

mechanical completion before the final mechanical completion

dates, which it claimed MarkWest had extended. The trial court did

1 Dyess submitted six invoices — totaling $934,436 — that

MarkWest failed to pay.

3 not rule on the motion, and it was therefore deemed denied by

rule.2 See C.R.C.P. 59(j).

¶ 10 Dyess appealed (1) the order treating the verdict in its favor as

advisory and reducing the damages award; (2) the denial of its

motion for JNOV on MarkWest’s counterclaim; and (3) the denial of

its motion for pre- and post-judgment interest. MarkWest cross-

appealed the denial of its motion for pre- and post-judgment

interest.

¶ 11 A division of this court reversed the judgment insofar as the

trial court (1) “reduced the amount of damages awarded to Dyess on

its quantum meruit claim” and (2) “failed to award pre- and post-

judgment interest.” M.G. Dyess, Inc. v. MarkWest Liberty Midstream

& Res., L.L.C., 2022 COA 108, ¶ 38. It affirmed the judgment

insofar as the trial court accepted the jury’s liability verdict on the

quantum meruit claim and denied Dyess’s motion for JNOV. Id. at

¶¶ 23, 34. The case was then remanded for further proceedings.

Id. at ¶ 38.

2 Both parties filed C.R.C.P. 59(c)(4) motions to amend the judgment

to include pre- and post-judgment interest. These motions were also deemed denied. See C.R.C.P. 59(j).

4 ¶ 12 On remand, the court recognized that the court of appeals had

affirmed the finding of liability on quantum meruit damages in favor

of Dyess. Because the jury had awarded $26,039,641 in favor of

Dyess (on quantum meruit) and $4,500,000 in favor of MarkWest

(on its contract counterclaim), the remand court subtracted the

latter from the former to arrive at a judgment of $21,539,641 in

favor of Dyess. The court then added prejudgment interest of

$2,712,319.08 (eight percent, compounded annually) and

postjudgment interest of $7,450,237.06, for a total judgment of

$31,702,197.14.

¶ 13 As expected, MarkWest asked for a new trial and Dyess

opposed that request. MarkWest continued to argue that, unless

Dyess agreed to a reduced judgment of $934,436, the court should

grant a new trial because the jury’s damage award was manifestly

5 excessive and unsupported by the evidence.3 MarkWest’s theory at

trial, and on remand, was that any excess charges by Dyess were

subject to the contract’s change order process.

¶ 14 Dyess countered that the jury heard ample evidence that

MarkWest directed Dyess to perform out-of-scope work, work which

benefited MarkWest and for which Dyess was not paid. Moreover,

Dyess refuted MarkWest’s suggestion that Jury Instruction 60

limited (to $934,436) the recoverable out-of-scope work expenses.

¶ 15 Indicating that it had reviewed the record, the remand court

(with a new judge presiding after the trial judge retired) concluded

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