PIONEER MECHANICAL SERVICES, LLC v. HGC CONSTRUCTION, CO.

CourtDistrict Court, S.D. Ohio
DecidedNovember 16, 2022
Docket1:18-cv-00890
StatusUnknown

This text of PIONEER MECHANICAL SERVICES, LLC v. HGC CONSTRUCTION, CO. (PIONEER MECHANICAL SERVICES, LLC v. HGC CONSTRUCTION, CO.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
PIONEER MECHANICAL SERVICES, LLC v. HGC CONSTRUCTION, CO., (S.D. Ohio 2022).

Opinion

UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF OHIO WESTERN DIVISION

PIONEER MECHANICAL SERVICES, : Case No. 1:18-cv-890 LLC, et al., : : Judge Timothy S. Black Plaintiffs, : : vs. : : HGC CONSTRUCTION, CO., : : Defendant. :

ORDER GRANTING DEFENDANT’S MOTION FOR SUMMARY JUDGMENT (Doc. 90)

This civil case is before the Court on Defendant/Counter-Plaintiff HGC Construction, Co.’s motion for summary judgment (Doc. 90). Plaintiff/Counter- Defendant Pioneer Mechanical Services, LLC did not respond and the time for doing so has expired. I. BACKGROUND A. Undisputed Facts1 HGC Construction, Co. (“HGC”) hired Pioneer Mechanical Services, LLC (“Pioneer”) to perform subcontracting work and to provide subcontracting labor on a private construction project in Allegheny County, Pennsylvania—the Artis Senior Living of South Hill project (the “Project”). (Doc. 90-1 at ¶ 1). HGC was the general contractor

1 In accordance with this Court’s standing orders, HGC submitted a proposed statement of undisputed facts, to which statement Pioneer failed to respond. (Doc. 90-1). HGC’s statement of undisputed facts is supported by the record citations provided therein. Accordingly, the Court incorporates the statement as reference and summarizes the facts herein. on the Project. (Id. at ¶ 2). Pioneer was hired as the electrical, mechanical, and plumbing subcontractor to HGC. (Id. at ¶ 3).

The contract between HGC and Pioneer consisted of the following: (1) a master services agreement dated February 2, 2016; (2) a rider for the Project dated August 2, 2016; and (3) various change orders, expanding Pioneer’s scope of work on the project to include plumbing (collectively, the “Subcontract”). (Id. at ¶ 4). Pursuant to the Subcontract, Pioneer promised to perform several scopes of work on the Project and to meet the Project’s schedule. (Id. at ¶ 5). Pioneer failed to perform

in accordance with the Subcontract, but HGC performed its obligations under the Subcontract. (Id. at ¶ 9). On April 25, 2017, HGC notified Pioneer via letter of its failure to prosecute the mechanical, electrical, and plumbing scopes of work and directed Pioneer to immediately cure the deficiencies, reserving the right to supplement Pioneer’s work at Pioneer’s

expense. (Id. at ¶ 10). The letter also requested Pioneer to submit within three days a full recovery plan for HGC’s approval, which recovery plan needed to include start dates, completion dates, durations, and manpower for Pioneer’s work. (Id. at ¶ 10). Finally, the letter notified Pioneer that its delays critically affected the timing of the Project, including up to six-week delays in certain areas of the project, and that Pioneer would be held

responsible for all liquidated and consequential damages associated with the delay. (Id.) By July 20, 2017, Pioneer had not provided HGC with a detailed recovery plan as requested in the prior letter. (Id. at ¶ 11). So, HGC again notified Pioneer of its failure to cure and its continued failure to prosecute the mechanical, electrical, and plumbing scopes of work, again directing Pioneer to immediately cure the deficiencies and reserving the right to supplement Pioneer’s work at Pioneer’s expense. (Id.) HGC

requested Pioneer to commence or expedite work on primary and secondary electrical site work; core area rough-in work for HVAC, electrical, and plumbing; the domestic hot water heaters; electrical switch gears and distribution panels; other HVAC equipment; and other plumbing fixtures, plumbing trim, electrical devices, fire alarm devices, kitchen connections, and HVAC devices. (Id.) Pioneer still did not cure the deficiencies.

On September 8, 2017, HGC again notified Pioneer of its failure to cure and its continued failure to prosecute the mechanical, electrical, and plumbing scopes of work. (Id. at ¶ 12). HGC directed Pioneer to immediately cure the deficiencies and reserved the right to supplement Pioneer’s work at Pioneer’s expense. (Id.) This time, HGC attached a completion list that it had emailed to Pioneer on September 6, but to which HGC had

received no response. (Id.) In addition to previously identified deficiencies, HGC raised problems with CT cabinet, transformer, and generator work; cable connections; main and ancillary distribution panel work and installation; exterior lighting; condensers; equipment and MEP connections; and furnaces. (Id.) On September 25, 2017, HGC again notified Pioneer that it would be responsible

for costs associated with Pioneer’s delays and requested that Pioneer provide the necessary manpower to complete the Project. (Id. at ¶ 13). On October 18, 2017, HGC again notified Pioneer of its continued failures and its continuing default. (Id. at ¶ 14). To that point, despite HGC’s multiple requests, Pioneer had still failed to provide a recovery plan. (Id.) In addition, HGC discovered that Pioneer had not properly submitted payment applications and there were various

discrepancies with the amounts Pioneer billed, resulting in approximately $214,465 of overbilling. (Id.) HGC requested Pioneer to revise its payment applications and submit those properly. (Id.) Finally, HGC warned Pioneer that if Pioneer “pulled-off” the Project and removed its manpower, as Pioneer was threatening to do, Pioneer would further delay the Project (an additional breach of the Subcontract), and HGC would have to complete the work using alternate means and back-charge Pioneer. (Id.)

On November 28, 2017, HGC, still facing deficiencies in Pioneer’s work, informed Pioneer that HGC would supplement Pioneer’s workforce due to Pioneer’s continued failure to meet the Project’s schedule and would be holding Pioneer responsible for these costs. (Id. at ¶ 15). On December 5, 2017, HGC informed Pioneer of HGC’s efforts to mitigate

damages resulting from Pioneer’s breach, which at the time totaled $816,762.00 and exceeded the remaining balance of the Subcontract. (Id. at ¶ 16). HGC provided a detailed accounting of the damages it had incurred to that point from Pioneer’s breaches. (Id.) Pioneer had still never submitted an acceptable recovery schedule to HGC. (Id.) On December 13, 2017, after continuously failing to perform under the

Subcontract and failing to meet numerous schedule milestones, HGC terminated Pioneer for default. (Id. at ¶ 17). After Pioneer’s termination, HGC and HGC’s replacement contractor discovered substantial amounts of deficient work performed by Pioneer which HGC was forced to correct. (Id. at ¶ 18). Pioneer submitted billing to HGC for labor, material, and services that were not yet provided by Pioneer, or which were deficient and non-compliant with the Subcontract. (Id. at ¶ 19). HGC paid Pioneer these unearned

amounts. (Id. at ¶ 20). Pioneer has retained the funds paid by HGC. (Id. at ¶ 21). B. Procedural History Arising from these facts, Pioneer originally initiated suit in the Court of Common Pleas of Allegheny County, Pennsylvania. (Doc. 1). Pioneer claimed that HGC breached the Subcontract by failing to pay amounts owed to Pioneer, and Pioneer asserted three claims against HGC: (1) breach of contract; (2) violation of Pennsylvania’s Prompt Pay

Act; and (3) unjust enrichment. (Doc. 1-2). In response, HGC removed the action to the Western District of Pennsylvania and asserted the following counterclaims: (1) breach of contract; (2) promissory estoppel; and (3) unjust enrichment. (Doc. 1; Doc. 12). The case was then transferred to the Southern District of Ohio. (Doc. 47). However, in March 2019, Pioneer filed for bankruptcy (Doc. 60-1), and the present

action was properly stayed (Doc. 66). Approximately two years later, the bankruptcy proceedings concluded. (Doc. 91-3; Doc. 91-4). HGC then filed its motion for summary judgment, seeking judgment in its favor on both Pioneer’s claims and its own counterclaims. (Doc. 90).

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