Scheck Mechanical Corp. v. Borden, Inc.

186 F. Supp. 2d 724, 2001 U.S. Dist. LEXIS 11978, 2001 WL 1775360
CourtDistrict Court, W.D. Kentucky
DecidedJanuary 9, 2001
DocketCIV.A.3:97CV-793-S
StatusPublished
Cited by4 cases

This text of 186 F. Supp. 2d 724 (Scheck Mechanical Corp. v. Borden, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Scheck Mechanical Corp. v. Borden, Inc., 186 F. Supp. 2d 724, 2001 U.S. Dist. LEXIS 11978, 2001 WL 1775360 (W.D. Ky. 2001).

Opinion

MEMORANDUM OPINION

SIMPSON, Chief Judge.

This matter is before the Court on each party’s motion for summary judgment. The Plaintiff, Scheck Mechanical Corporation (“Scheck”), moves for summary judgment on the issues of whether the Defendant breached the contract between the parties and whether the Defendant committed fraud, intentional and negligent misrepresentation, and fraudulent concealment. The Defendant, Borden, Inc. (“Borden”), moves for summary judgment on Scheck’s Complaint and on Count III of its counter-claim. For the reasons set forth below, we will grant Scheck’s motion with respect to its claim for breach of the construction schedule and will grant Borden’s motion with respect to Scheck’s claims for suspension of the contract, and for cardinal change and abandonment. We will deny the remaining portions of both parties’ motions.

BACKGROUND FACTS

The following facts are undisputed.

This case arises out of a construction contract between the parties. Borden planned construction of a Urethane Resole Facility at its Jefferson County plant, (the “U/R Project”). Part of the U/R Project included several major runs of piping carried in multiple levels. For this portion of the construction, Borden sought out a mechanical piping contractor.

Scheck was a mechanical piping contractor which had experience in projects similar to the U/R Project and which had a positive history with Borden. After bidding and intense negotiation on several points, Scheck and Borden entered into a contract on November 28, 1995. The contract established that Scheck’s work was scheduled to be completed on April 15, 1996. It also included a liquidated damage clause which required Scheck to pay Borden $2000 for each day that it was late in meeting the completion date. The contract bound Borden to increase the amount it paid to Scheck if Scheck did any additional work on the project or if it incurred any costs related to the suspension of work.

Scheck mobilized on the work site on December 12, 1995 to begin its contractual duties. However, due to several complications — the extent and cause of which are at issue in the present motions — it did not complete the project by the April 15, 1996 deadline. Instead, Scheck workers remained on the site until sometime after July of 1996.

It addition, during its time at the work site, Scheck completed several projects for Borden which were in addition to the projects outlined in the contract. Scheck billed Borden for at least five of these projects, and Borden paid those bills in full. Borden now claims that it was overcharged.

DISCUSSION

In order to support a motion for summary judgment, a moving party must prove the absence of a genuine issue of any material fact and that the moving party is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 817, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986). “Only disputes over facts that might affect the outcome of the suit under the governing law will properly preclude the entry of summary judgment.” Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 248, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). In deciding a summary judgment motion, a judge’s role is not to weigh the evidence or determine its truth, but to determine if a genuine question of fact exists. Id. at 249, 106 S.Ct. 2505. In *729 making these determinations, the court is to view all facts and inferences in a light most favorable to the nonmoving party. White v. Turfway Park Racing Ass’n, Inc., 909 F.2d 941 (6th Cir.1990).

In this case, both parties have moved for summary judgment, and those motions overlap in significant ways. Thus, for much of the evidence, we must view it in the light most favorable to Borden in respect to Scheck’s motion and in the light most favorable to Scheck in respect to Borden’s motion.

Breach of Contract

Scheck claims that there is no genuine factual dispute which would allow Borden to argue that it did not breach the contract. It argues that further proceedings should be limited to determining the amount of damages it suffered as a result of this breach. Borden, on the other hand, claims that there is no genuine factual dispute as to whether Borden breached the contract and that this claim should be dismissed.

Scheck argues that the contract was breached in three ways: (1) Borden failed to follow the required construction schedule, (2) Borden provided defective isometric engineering drawings, and (3) Borden, effectively, suspended Scheck’s work under the contract. Scheck alleges that these breaches caused numerous inefficiencies and increased its costs on the project. Borden denies these claims and also argues that Scheck cannot establish damages. We will consider each of these points in turn.

1. Construction Schedule

Scheck argues that Borden breached the contract by failing to follow the incorporated construction schedule. It claims that Borden failed to complete necessary precedent work in order to allow Scheck to begin piping on the dates indicated. Scheck acknowledges that there are several factual questions as to the amount of damages it suffered. However, it argues that there is no question that Borden is liable to it for breaching the contract. Borden also argues that there is no genuine issue of material fact but claims that the undisputable facts establish that it did not breach the contract.

On October 13, 1995, VITOK Engineers, Inc.(“VITOK”), one of Borden’s subcontractors, produced a memorandum of the minutes of a meeting conducted by Borden on August 18, 1995 for all companies interested in bidding on Borden’s piping work. At the end of this memorandum, VITOK listed a number of questions submitted by the potential piping subcontractors and answered those questions. Question six requested an equipment installation and pipe rack schedule. The answer provided, “November 20, 1995 Piping in the reactor building can start. November 27, 1995 Piping on the main pipe rack can start. December 18,1995 Piping in the raw materials tank farm, indoor/outdoor finished goods tank farms, warehouse and pipe racks can start.” (Scheck Motion Summ. J., Ex 3.)

On October 18, 1995, VITOK released another memorandum which amended some of the information provided at the August 18 meeting and recounted in the October 13 memorandum. This memorandum cites the four page October 13 memorandum as a “Reference.” Id. The “specifications” contained in this October 18 memorandum were expressly incorporated into the contract in ¶ 1.2.1. (Borden’s Resp. Summ. J., Ex. 1.) Thus, Scheck argues that the dates listed in the October 13 memorandum became a part of the contract between the parties. Borden, on the other hand, argues that this reference was not sufficient to make these dates mandatory.

In general, the construction and interpretation of a written instrument are *730 questions of law for the court to decide. Cinelli v. Ward, 997 S.W.2d 474, 476 (Ky.App.1998).

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Bluebook (online)
186 F. Supp. 2d 724, 2001 U.S. Dist. LEXIS 11978, 2001 WL 1775360, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scheck-mechanical-corp-v-borden-inc-kywd-2001.