Paterson-Leitch Company, Inc. v. Massachusetts Municipal Wholesale Electric Company

840 F.2d 985, 10 Fed. R. Serv. 3d 902, 1988 U.S. App. LEXIS 1960, 1988 WL 10181
CourtCourt of Appeals for the First Circuit
DecidedFebruary 16, 1988
Docket87-1657
StatusPublished
Cited by785 cases

This text of 840 F.2d 985 (Paterson-Leitch Company, Inc. v. Massachusetts Municipal Wholesale Electric Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Paterson-Leitch Company, Inc. v. Massachusetts Municipal Wholesale Electric Company, 840 F.2d 985, 10 Fed. R. Serv. 3d 902, 1988 U.S. App. LEXIS 1960, 1988 WL 10181 (1st Cir. 1988).

Opinion

SELYA, Circuit Judge.

The United States District Court for the District of Massachusetts granted summary judgment on various claims asserted by plaintiff-appellant Paterson-Leitch Company, Inc. (Palco) against the present appel-lees, Massachusetts Municipal Wholesale Electric Company (Mass. Electric) and Bechtel Power Corporation (Bechtel). Pal-co brings the district court’s handiwork before us, assigning numerous supposed errors. Having inspected the dimensions and angles of the case from foundation to superstructure, we find the decision below to have been soundly constructed. Hence, we affirm.

I. SITE WORK

Some years ago, Mass. Electric engaged Bechtel to prepare plans, specifications, and contract documents for the erection of the Stony Brook Energy Center, a generating plant in Ludlow, Massachusetts. Palco successfully bid the steel work and entered into a contract with Mass. Electric in July 1979. Bechtel, which had agreed to manage construction of the project, also signed the pact as Mass. Electric's agent. The heart of the bargain was Palco’s commitment to design, fabricate, and erect five dual-wall steel stacks complete with the necessary platforms, transitions, flexible connections, and safety devices. The contract price was in excess of two million dollars. The completion date was September 1, 1980.

The best-laid plans of corporate entrepreneurs, like those of mice and men, ofttimes go a-gley; plaintiff was almost two years late in finishing the job. Though tardy, Palco had an explanation. With appellees’ approval, it had subcontracted certain work to Springfield Steel Erectors (SSE). Early in June of 1980, SSE became aware that other subcontractors’ employees were taking preplanned forty-five minute coffee breaks twice daily. SSE believed this practice to countervail the Project Labor Agreement (PLA), 1 and brought it to the attention of Palco and Bechtel in early July. The coffee breaks were but a part of Pal-co’s problem. It claimed to have experienced and brought to Bechtel’s attention, previously, other labor-related difficulties. In plaintiff’s eyes, Bechtel was unsympathetic, unresponsive, and at bottom, uncaring. By the end of the summer, Palco had concluded that the delays attributable to the labor slowdowns were irreversible and that appellees did not intend to take corrective measures. Palco wrote to Bechtel on September 11, 1980. The billet-doux stated:

On numerous occasions, while Paterson-Leitch and/or Springfield Steel supervision was in the work area, interferences occurred delaying our boilermakers from continuing work. We will continue to observe this problem and plan to document and record all such interferences for settlement of damages incurred.

It was not until some nine months later, however, that plaintiff wrote to Bechtel to request additional payments (beyond the contract price) for these construction delays. This missive bore a date of June 26, 1981. A second letter was sent on August 25, amplifying the demand. Bechtel was unmoved. On October 15, 1981, it formally denied plaintiff’s beseechment for extra recompense. The rejection letter expressly advised Palco that “[a]ny further pursuit of this matter should be handled [by you] in accordance with the contract protest procedure (Ref. Contract Article GC-3).” 2 This *987 pointed reference was to the undeniable fact that, by the terms of plaintiffs contract, dual notification was compulsory: notice of any claim by Palco had to be given initially to the construction manager, Bechtel, and later — if the claim was to be pressed — to the owner, Mass. Electric. It is no exaggeration to say that the dual notice paradigm comprised the core structure of the contractual protest procedure. Yet, Palco flouted it. Instead of responding to Bechtel’s October 15 rejection letter within the stipulated fourteen day period, plaintiff did nothing.

On June 7, 1982, as its work belatedly wound down, Palco’s president executed a certificate of final payment, which embodied a release. He unilaterally added to the document the notation that the release did not extend to “any monies that may become due [Palco] as a result of [Palco’s] request for relief as expressed in letters of 6/26/81 and 8/25/81_” Plaintiff finished its work and left the job. Another hiatus ensued. On November 10,1982, Demand Construction Services, Inc. (Demand), a consulting engineering firm retained by Palco, wrote to the owner requesting some equitable adjustment of Palco’s contract price on account of the slowdown. This overture was spumed.

Time marched on. It was not until March 4, 1985 that Palco sued in the district court. Jurisdiction was premised upon diversity of citizenship and the existence of a controversy in the requisite amount. 28 U.S.C. § 1332. The complaint contained four statements of claim. It sought damages for breach of contract (Count I), for negligent supervision of the work of other subcontractors (Count II), for fraud, because appellees were said to have vouchsafed that organized coffee breaks would not be permitted (Count III), and for perpetrating unfair and deceptive business practices in derogation of an applicable statute (Count IV).

After issue was joined, a United States magistrate held a pretrial scheduling conference on July 19, 1985. At this session, the defendants indicated their intention to file dispositive motions. Although Palco’s counsel argued that any such initiatives would be premature, the magistrate established a regimen for the filing of motions and stayed discovery pending resolution of the same. These rulings were embodied in a scheduling order entered on July 24, 1985. See Appendix. Notwithstanding that the order was immediately appealable to the district judge, see Fed.R.Civ.P. 72(a), and that plaintiff was on notice that its provisions would “control the subsequent course of the action unless modified,” Fed. R.Civ.P. 16(e), Palco chose not to contest it. Each defendant thereafter filed a disposi-tive motion. On October 21, 1986, following briefing and argument, the magistrate recommended that both motions be granted.

Plaintiff filed a timely objection to the magistrate’s report and changed its game plan. On December 1, 1986, before the district judge reached the matter, Palco filed a motion and affidavit under Fed.R. Civ.P. 56(f) requesting additional time for discovery. 3 The judge refused. He subsequently adopted the magistrate’s report, *988 approved the recommendation, and allowed the defendants’ motions. This appeal followed.

Appellant raises a potpourri of issues, procedural and substantive, in its effort to demonstrate that the district court was in error. We deal infra with certain of these sallies. The rest we dismiss summarily as altogether meritless.

II. DENIAL OF DISCOVERY

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Bluebook (online)
840 F.2d 985, 10 Fed. R. Serv. 3d 902, 1988 U.S. App. LEXIS 1960, 1988 WL 10181, Counsel Stack Legal Research, https://law.counselstack.com/opinion/paterson-leitch-company-inc-v-massachusetts-municipal-wholesale-electric-ca1-1988.