M&J General Contractors Inc. v. Symbiont Construction Inc

CourtDistrict Court, E.D. Wisconsin
DecidedMay 25, 2021
Docket2:20-cv-00945
StatusUnknown

This text of M&J General Contractors Inc. v. Symbiont Construction Inc (M&J General Contractors Inc. v. Symbiont Construction Inc) is published on Counsel Stack Legal Research, covering District Court, E.D. Wisconsin primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
M&J General Contractors Inc. v. Symbiont Construction Inc, (E.D. Wis. 2021).

Opinion

UNITED STATES DISTRICT COURT EASTERN DISTRICT OF WISCONSIN

M&J GENERAL CONTRACTORS, INC.,

Plaintiff, Case No. 20-CV-945-JPS

v.

ORDER SYMBIONT CONSTRUCTION, INC. formerly known as TV JOHN & SON, INC.,

Defendant.

On June 24, 2020, Plaintiff M&J General Contractors, Inc. (“M&J”) filed this breach-of-contract action against Defendant Symbiont Construction, Inc. (“Symbiont”). (Docket #1). On September 8, 2020, Symbiont filed a motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) and the Colorado River Abstention Doctrine. (Docket #6). This motion is now fully briefed, and, for the reasons explained below, the Court will deny it. 1. LEGAL STANDARD Motions to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(1) allow a party to challenge a court’s subject matter jurisdiction. Fed. R. Civ. P. 12(b)(1). When reviewing such a motion, a court must “accept[] as true all well-pleaded factual allegations and draw[] reasonable inferences in favor of the plaintiffs.” Bultasa Buddhist Temple of Chi. v. Nielsen, 878 F.3d 570, 573 (7th Cir. 2017). Further, a court “may properly look beyond the jurisdictional allegations of the complaint and view whatever evidence has been submitted on the issue to determine whether in fact subject matter jurisdiction exists.” Evers v. Astrue, 536 F.3d 651, 656– 57 (7th Cir. 2008) (internal quotation and citation omitted). 2. RELEVANT ALLEGATIONS 2.1 Factual Background This action arises out of the termination of a written contract agreement between M&J and Symbiont. In April 2017, M&J and Symbiont entered into a subcontract agreement (the “Agreement”). (Docket #1 at 2, #1-1 at 1–10). The Agreement outlined various improvements to be made on a Kroger grocery store in West Lafayette, Indiana; the Agreement defined the improvements as the “Kroger J-824 Expansion (W Lafayette, IN)” (the “Project”). (Docket #1 at 2). Symbiont was the general contractor for the Project, and it hired M&J to complete the carpentry and painting work. (Id.) M&J and Symbiont agreed that, for $725,000.00, M&J would complete the work contained in the “Scope of Work” clause of the Agreement. (Id.) The total contract was broken down into two parts: (1) $575,000.00 for the carpentry work, and (2) $150,00.00 for the painting and coatings. (Id.) The Agreement also contained a choice-of-law provision which stated that the Agreement “shall be governed and construed in accordance with the laws of the State of Wisconsin.” (Docket #1-1 at 6). It further noted that each party submitted to the “exclusive jurisdiction of the state and federal courts located in Milwaukee County, Wisconsin.” (Id.) The Project commenced on or about April 17, 2017, and, shortly thereafter, M&J began its work. (Id.) At some point, M&J entered into a subcontract agreement with Premier Commercial Cleaning, LLC (“Premier”) to perform certain portions of M&J’s work under the Agreement (the “Premier Subcontract”). (Docket #7 at 2). Like Symbiont, M&J required its subcontractors and materialmen to perform in a workmanlike manner and to submit invoices prior to being paid for their work on the Project. (Docket #1 at 3). M&J alleges that, by August 2018, the Project was over 80% complete and that M&J was current with all of its obligations to vendors and contractors. (Id.) M&J states that it regularly provided Symbiont with detailed financial payouts that included the amounts paid to each of its painting and carpentry suppliers and subcontractors, along with lien waivers when necessary. (Id.) M&J provided this information with its monthly invoicing and pay applications in a manner that conformed with the Agreement. (Id.) On August 22, 2018, Max Dobson (“Dobson”), the president of M&J, received an email from Chad R. Johnson (“Johnson”), the senior project manager for Symbiont. (Id., Docket #1-2). This email purported to terminate the Agreement, effective immediately. (Id., Docket #1-2). Johnson stated that Symbiont was terminating the Agreement because M&J was not paying its subcontractors. (Docket #1-2). The termination email did not provide M&J any procedure by which it could contest Symbiont’s allegations or review the allegedly outstanding amounts. (Id.) Premier subsequently submitted an invoice (dated November 24, 2018) to Symbiont for $264,593.88, apparently seeking monies from Symbiont owed to Premier by M&J. (Id., Docket #6-1 at 5). On February 20, 2019, Premier recorded a “Sworn Statement and Notice of Intention to Hold a Mechanic’s Lien” in the Office of Recorder of Tippecanoe County, Indiana with regard to the Property (the “Mechanic’s Lien”). (Docket #7 at 2). M&J made multiple demands to continue work on the Project and sought to contest Johnson’s allegations, but Symbiont refused to reinstate the Agreement. (Docket #1 at 4). Symbiont did not allow M&J to complete the Project and has refused to remit the remaining payments due under the Agreement. (Id.) 2.2 Procedural Background On April 19, 2019, M&J filed an action in the District Court for the Northern District of Illinois, and it was assigned to Judge Elaine E. Bucklo. See M&J General Contractors, Ltd. v. Symbiont Construction, Inc., 19-cv-2659, Docket #1 (N.D. Ill. Apr. 19, 2019). In that action, M&J brought a single count for breach of contract, namely that “Symbiont’s termination of the Subcontractor Agreement constitutes a material breach of the Subcontractor Agreement.” Id. at 4. M&J alleged that it had been damaged in an amount not less than $499,911.55, not inclusive of attorneys’ fees, and that Symbiont was required to pay to M&J pursuant to the Agreement. Id. Soon after, Symbiont filed a motion to dismiss pursuant to the Colorado River Abstention Doctrine or, alternatively, to dismiss under Rule 12(b)(3) for improper venue or, alternatively, to transfer venue pursuant to 28 U.S.C. § 1404(a). During the pendency of the action in the Northern District of Illinois, on June 27, 2019, Symbiont filed a state action in Tippecanoe County, Indiana against M&J and Premier (the “Indiana Action”). (Docket #6-1). The Indiana Action contains nine counts: (1) action to quiet title to real estate (an in rem action asserting that the Mechanic’s Lien is invalid); (2) action for slander of title against Premier; (3) action for declaratory judgment that the Mechanic’s Lien is void as a matter of law; (4) claim for breach of contract against Premier; (5) breach of implied duties against Premier; (6) claim for express indemnity against Premier; (7) claim for breach of contract against M&J (alleging that M&J breached the Agreement by failing to pay certain subcontractors and suppliers, including Premier); (8) breach of implied duty against M&J; and (9) claim for express indemnity against M&J. (Id.) On September 30, 2019, Judge Bucklo issued an order transferring the action pending in the Northern District of Illinois to the Eastern District of Wisconsin. (Docket #6-2). In the order, Judge Bucklo relied on the parties’ common agreement that venue would be more appropriate in the Eastern District of Wisconsin and, therefore, chose not to address Symbiont’s arguments pursuant to the Colorado River Abstention Doctrine. (Id.) For reasons unclear, Judge Bucklo’s transfer order was never effectuated by that district’s clerk’s office, nor does it appear that there was any independent follow-up by M&J.

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Bluebook (online)
M&J General Contractors Inc. v. Symbiont Construction Inc, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mj-general-contractors-inc-v-symbiont-construction-inc-wied-2021.