M.G. Dyess v. MarkWest Liberty Midstream & Resources

CourtColorado Court of Appeals
DecidedSeptember 15, 2022
Docket20CA1742
StatusPublished

This text of M.G. Dyess v. MarkWest Liberty Midstream & Resources (M.G. Dyess v. MarkWest Liberty Midstream & Resources) 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
M.G. Dyess v. MarkWest Liberty Midstream & Resources, (Colo. Ct. App. 2022).

Opinion

The summaries of the Colorado Court of Appeals published opinions constitute no part of the opinion of the division but have been prepared by the division for the convenience of the reader. The summaries may not be cited or relied upon as they are not the official language of the division. Any discrepancy between the language in the summary and in the opinion should be resolved in favor of the language in the opinion.

SUMMARY September 15, 2022

2022COA108

No. 20CA1742, M.G. Dyess, Inc. v. MarkWest Liberty Midstream & Resources, L.L.C. — Civil Procedure — Right to Trial by Jury — Trial by Jury or By the Court — Findings by the Court — Advisory Jury and Trial by Consent; Contracts — Quantum Meruit

As a matter of first impression, a division of the court of

appeals considers whether quantum meruit claims are legal or

equitable for purposes of determining whether a party has a right to

a jury trial on such a claim. The division concludes that, where the

claimant has requested monetary damages, the quantum meruit

claim is legal, and the claimant is entitled to a jury trial under

C.R.C.P. 38(a).

The division further considers whether, pursuant to C.R.C.P.

52, a trial court may unilaterally reduce the amount of damages

awarded in a binding jury verdict. It concludes that C.R.C.P. 52 does not provide that authority. Because the trial court did so here,

it erred. Accordingly, the division reverses the judgment insofar as

the trial court reduced the damages, but it affirms the judgment

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

The division also rejects the appellant’s contention that the

trial court erred by denying its motion for judgment

notwithstanding the verdict on the appellee’s counterclaim,

concluding there was evidence upon which a verdict against the

appellant could be sustained.

It remands the case for entry of an amended judgment and an

award of pre- and post-judgment interest to both parties. COLORADO COURT OF APPEALS 2022COA108

Court of Appeals No. 20CA1742 City and County of Denver District Court No. 18CV34745 Honorable Michael J. Vallejos, Judge

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

Plaintiff-Appellant,

v.

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

Defendant-Appellee.

JUDGMENT AFFIRMED IN PART, REVERSED IN PART, AND CASE REMANDED WITH DIRECTIONS

Division IV Opinion by JUDGE RICHMAN Pawar and Brown, JJ., concur

Announced September 15, 2022

Wheeler Trigg O’Donnell LLP, Edward C. Stewart, Frederick R. Yarger, Denver, Colorado; Moore Williams PLLC, Marie E. Williams, Golden, Colorado; Kilpatrick Townsend & Stockton LLP, Adam H. Charnes, Dallas, Texas, for Plaintiff-Appellant

Snell & Willmer L.L.P., Michael E. Lindsay, James Kilroy, Ellie Lockwood, Denver, Colorado; Snell & Willmer L.L.P., Kelly H. Dove, Las Vegas, Nevada for Defendant-Appellee ¶1 In this construction contract dispute, plaintiff, M.G. Dyess,

Inc. (Dyess), appeals post-trial orders reducing the amount of

damages awarded on its quantum meruit claim and denying its

motion for judgment notwithstanding the verdict (JNOV) on

defendant’s counterclaim. Defendant, MarkWest Liberty Midstream

& Resources, L.L.C. (MarkWest), and Dyess both appeal the trial

court’s denial of their motions for pre- and post-judgment interest.

We affirm in part, reverse in part, and remand this case with

directions.

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

of the three contracts 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

1 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 Dyess failed to achieve mechanical

completion by the contractual deadlines. MarkWest brought

counterclaims for liquidated damages under the contract and

declaratory judgment. Per jury demands by both parties, the case

was set for a jury trial, which began on February 3, 2020.

¶4 During the trial, however, MarkWest asserted that Dyess’s

promissory estoppel and quantum meruit claims were not triable to

the jury because they are equitable claims. Dyess argued that its

claims were legal and contended that, in any case, MarkWest had

waived any objection to a jury trial.

¶5 The trial court concluded that Dyess had brought “a mix of

legal and equitable claims,” but the court did not specify which

claims were equitable. It stated an intention to submit all the

claims to the jury under C.R.C.P. 39(c), which permits 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 returned a verdict

2 awarding relief on an “arguably equitable claim,” it could permit

further briefing.

¶6 The jury rejected all of Dyess’s claims except its quantum

meruit claim, for which it awarded $26,039,641 in damages. It also

awarded MarkWest $4,500,000 in liquidated damages based on its

breach of contract counterclaim. When the verdict was read,

MarkWest immediately made an oral motion to treat the jury’s

quantum meruit verdict as advisory, asking the court to “decide this

issue.” The court ordered additional briefing.

¶7 In response, MarkWest filed a motion, captioned as a motion

under C.R.C.P. 52, asking the court to make findings of fact and

conclusions of law regarding the quantum meruit claim. It 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 Dyess claimed for

the items listed in Instruction 60 (the quantum meruit jury

instruction). Dyess countered that its expert had testified to overall

losses equal to or greater than the amount awarded and, therefore,

the $26,039,641 verdict was supported by evidence.

3 ¶8 The trial court concluded, in a written order titled “Order

Regarding Defendant’s Brief in Support of Motion Pursuant to

C.R.C.P. 52,” that (1) MarkWest did not waive its objection to a jury

trial; and (2) 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” insofar as the jury found that MarkWest

was liable under a quantum meruit theory, but the court concluded

that the amount awarded was not supported by the evidence. It

reduced the amount of damages to $934,436. On the same day, it

entered judgment on the jury verdict as modified by its C.R.C.P. 52

order.

¶9 Dyess subsequently filed a motion for JNOV on MarkWest’s

breach of contract counterclaim, asserting that it had achieved

mechanical completion before the final mechanical completion

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