Millgard Corp. v. White Oak Corp.

224 F. Supp. 2d 425, 2002 U.S. Dist. LEXIS 18751, 2002 WL 31190129
CourtDistrict Court, D. Connecticut
DecidedSeptember 30, 2002
DocketCiv.A. 3:00CV1685 CFD
StatusPublished
Cited by10 cases

This text of 224 F. Supp. 2d 425 (Millgard Corp. v. White Oak Corp.) is published on Counsel Stack Legal Research, covering District Court, D. Connecticut primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Millgard Corp. v. White Oak Corp., 224 F. Supp. 2d 425, 2002 U.S. Dist. LEXIS 18751, 2002 WL 31190129 (D. Conn. 2002).

Opinion

*426 RULING ON PENDING MOTIONS

DRONEY, District Judge.

I. Introduction

This action arises out of a dispute over payment for subcontracting work that Plaintiff Millgard Corporation (“Millgard”) performed at a State of Connecticut Department of Transportation (“DOT”) construction project in New Haven, Connecticut. Millgard alleges breach of contract and unjust enrichment against defendant White Oak Corporation (“White Oak”), and seeks to collect payment on a bond against defendant National Union Insurance Company of Pittsburgh, PA (“National Union”) pursuant to Conn.Gen.Stat. § 49-42, known as Connecticut’s “little Miller Act.” Currently pending are National Union’s Motion for Summary Judgment [Doc. #23], National Union’s Motion to Strike [Doc. # 28], and Millgard’s Motion to Enforce Settlement Agreement [Doc. # 35]. 1

II. Background 2

White Oak was the general contractor on a construction project of the DOT to replace a bridge over the Quinnipiac River. On June 6, 1994, National Union issued a payment bond for the project. National Union acted as surety and White Oak was the principal.

On March 22, 1996, Millgard and White Oak entered into an agreement whereby Millgard agreed to act as an excavation subcontractor for White Oak at the project. Millgard began its work on October 31, 1997, but claims that it encountered quartz and granite boulders which constituted conditions differing from those indicated in the subcontract and caused Mill-gard to incur unanticipated expenditures of time and money. Millgard contends that it informed White Oak of the problem and requested that the subcontract price be increased. White Oak then submitted a claim with the DOT for an increase in the contract price.

Millgard asserts that it met with the DOT and White Oak in September, 1998 and stated that it was entitled to suspend work due to the site conditions it had encountered. For the next several months, White Oak and the DOT engaged in mediation of White Oak’s claim with the DOT, and Millgard participated in some of those discussions. Eventually, White Oak terminated Millgard and represents that it did so, in part, because Millgard refused to return to work. The parties also dispute when this termination occurred. Although the parties dispute when Millgard last performed work on the project, Millgard admits it was no later than September 7, 1999.

National Union received written notice of a claim by Millgard on the payment bond on May 10, 2000. National Union advised Millgard that it denied its claim on the bond because it had not been timely presented in accordance with the requirements of Conn.Gen.Stat. § 49-42.

III.Discussion

A. Payment Bond Statute

Conn.Gen.Stat. § 49-41 requires that general contractors on public works pro *427 jects obtain payment bonds to ensure payment to subcontractors and materials suppliers. See, e.g., Blakeslee Arpaia Chapman, Inc. v. El Constructors, Inc., 239 Conn. 708, 687 A.2d 506 (1997). To bring an action on a payment bond, a claimant must comply with the “little Miller Act,” Conn.Gen.Stat. § 49-42, which is “a remedial statute enacted to provide security for workers and materials suppliers unable to avail themselves of the protection of a mechanic’s lien.” Okee Indus., Inc. v. National Grange Mut. Ins. Co., 225 Conn. 367, 623 A.2d 483, 486 (1993). Section 49-42 provides for a civil remedy for payment bond claims and sets forth requirements for notice to the surety and general contractor and for filing of suit.

At the time the bond in this case was issued, the statute provided, in relevant part,

(a) Every person who has furnished labor or material in the prosecution of the work provided for in such contract in respect of which a payment bond is furnished under the provisions of section 49-41 and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which the claim is made, may enforce his right to payment under the bond by serving a notice of claim within one hundred eighty days after the date on which he performed the last of the labor or furnished the last of the material for which the claim is made, on the surety that issued the bond and a copy of the notice on the contractor named as principal in the bond.
(b) Every suit instituted under this section shall be brought in the name of the person suing, in the superior court for the judicial district where the contract was to be performed, irrespective of the amount in controversy in the suit, but no such suit may be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by the claimant.

Conn.Gen.Stat. § 49-42 (1994). 3 This section “operate[s] in general conformity” with the parallel federal statute known as the Miller Act. 4 Federal precedent relating to the Miller Act is relied on by Connecticut state courts in interpreting the 49-42. American Masons’ Supply Co. v. F.W. Brown Co., 174 Conn. 219, 384 A.2d 378, 381 (1978). In construing 49-42, Connecticut courts also rely “on the rule of strict construction when the issue was whether the claimant’s notice complied with the specific time requirements of the statute ... [but rely] on the rule of liberal construction when the issue [is] the eligibility for statutory coverage of a particular class of subcontractors.” Okee Indus., 623 A.2d at 487.

In its motion for summary judgment, National Union argues that there is no genuine issue of material fact that Mill-gard did not comply with the time deadlines set forth in § 49-42 for providing notice and filing suit against a surety. 5 In *428

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cartier International, N v. v. QVC, Inc.
677 F. Supp. 2d 712 (S.D. New York, 2009)
Vacco v. HARRAH'S OPERATING COMPANY, INC.
661 F. Supp. 2d 186 (N.D. New York, 2009)
Powell v. Omnicom
Second Circuit, 2007
Omega Engineering, Inc. v. OMEGA, SA
414 F. Supp. 2d 138 (D. Connecticut, 2004)

Cite This Page — Counsel Stack

Bluebook (online)
224 F. Supp. 2d 425, 2002 U.S. Dist. LEXIS 18751, 2002 WL 31190129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/millgard-corp-v-white-oak-corp-ctd-2002.