SNC-Lavalin America, Inc. v. Alliant Techsystems, Inc.

858 F. Supp. 2d 620, 2012 WL 1563992, 2012 U.S. Dist. LEXIS 61787
CourtDistrict Court, W.D. Virginia
DecidedMay 3, 2012
DocketCivil Action No. 7:10CV00540
StatusPublished
Cited by1 cases

This text of 858 F. Supp. 2d 620 (SNC-Lavalin America, Inc. v. Alliant Techsystems, Inc.) is published on Counsel Stack Legal Research, covering District Court, W.D. Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SNC-Lavalin America, Inc. v. Alliant Techsystems, Inc., 858 F. Supp. 2d 620, 2012 WL 1563992, 2012 U.S. Dist. LEXIS 61787 (W.D. Va. 2012).

Opinion

MEMORANDUM OPINION

GLEN E. CONRAD, Chief Judge.

This case is presently before the court on the renewed motions for judgment as a matter of law filed by SNC-Lavalin America, Inc. (“SNC”) and Alliant Techsystems, Inc. (“ATK”). For the reasons set forth below, SNC’s motion will be granted in part and denied in part, and ATK’s motion will be denied.

Background

This diversity action stems from the design and construction of a new nitric acid and sulfuric acid concentration plant (“NAC/SAC”) at the Radford, Virginia arsenal owned by the United States Army and operated by ATK. ATK and SNC entered into a multi-million dollar design-build contract (“the Contract”), pursuant to which SNC agreed to provide engineering, procurement, and construction services.

SNC began its work on October 2, 2008. Pursuant to the Contract, SNC had 642 days to complete the work required under the Contract, in the absence of any time extensions. Unfortunately, the path to completion was wrought with delays, disputes, and alleged plan alterations. In the end, SNC did not meet the deadline set forth in the Contract, and the parties dispute where to place the blame for the delays.

On December 6, 2010, SNC filed the instant action, seeking reimbursement for extra work that it was allegedly required to perform; delay damages resulting from ATK’s decision to use acid-resistant concrete on the first floor of the NAC/SAC; additional costs incurred as a result of unusually severe winter weather; and acceleration costs incurred as a result of the [624]*624denial of SNC’s weather-related request for extension of time. ATK then filed counterclaims against SNC, seeking damages for the delay in the project’s completion and for incomplete and/or inadequate work.

On September 7, 2011, ATK moved for partial summary judgment with respect to certain categories of damages identified by SNC. The categories included delay damages resulting from the change to acid-resistant concrete; additional costs incurred as a result of the severe winter weather; and acceleration costs. On October 13, 2011, ATK’s motion was granted in part and denied in part. SNC-Lavalin America, Inc. v. Alliant Techsystems, Inc., Case No. 7:10CV00540, 2011 WL 4895217, at *10, 2011 U.S. Dist. LEXIS 118312, at *28 (W.D.Va. Oct. 13, 2011). Based on its review of the terms of the parties’ Contract,1 the court held that ATK was entitled to summary judgment with respect to SNC’s claim for delay damages resulting from the change to acid-resistant concrete. Id. at *8, 2011 U.S. Dist. LEXIS 118312 at *21. Likewise, the court held that SNC was barred from recovering certain costs that were incurred during the period of unusually severe winter weather, such as the costs of additional items that became necessary for SNC to perform as a result of the weather conditions. Id. at *8-9, 2011 U.S. Dist. LEXIS 118312 at *23. On the other hand, the court concluded that SNC was entitled to proceed to trial on its claim for acceleration costs resulting from the denial of its weather-related request for extension of time. Id. at *8-9, 2011 U.S. Dist. LEXIS 118312 at *23-24.

A jury trial commenced on October 17, 2011 and spanned thirteen days. The court bifurcated the case into liability and damages phases. In the liability phase, the jury found in favor of SNC on its acceleration claim. The jury also found in favor of ATK on its related claim that SNC breached the contract by failing to complete the project on time, finding that ATK was entitled to recover liquidated damages for 30 days of delay. Additionally, the jury found in favor of ATK on several deficiency claims, including its counterclaims related to the mass notification system, chiller, steam skid, Richter pump, and control valves.

Before the jury reached a verdict on liability, the parties entered into a written agreement pursuant to which they stipulated to the amount of damages associated with certain claims, including ATK’s deficiency claims. Accordingly, during the damages phase, the jury was only tasked with determining the amount of damages for which SNC was entitled to recover on its acceleration claim. On November 3, 2011, the jury awarded SNC damages in the amount of $332,800.00. That same day, the court entered a judgment implementing the jury’s verdicts and the parties’ written agreement on damages.2

Both parties subsequently filed motions for judgment as a matter of law under Rule 50(b) of the Federal Rules of Civil Procedure. The court held a hearing on the motions on January 11, 2012. During the hearing, the parties were granted the opportunity to file supplemental briefs. The motions have now been fully briefed and are ripe for review.

Standard of Review

Rule 50(b) of the Federal Rules of Civil Procedure permits the parties to [625]*625file renewed motions for judgment as a matter of law following the jury’s verdict and the entry of judgment. The court must grant a Rule 50(b) motion if there is no legally sufficient evidentiary basis for a reasonable jury to find for the prevailing party on a particular issue. Fed.R.Civ.P. 50(a)(1). In ruling on the motion, the court must view the evidence and draw all reasonable inferences in the light most favorable to the nonmoving party, Lack v. Wal-Mart Stores, Inc., 240 F.3d 255, 259 (4th Cir.2001), and may not substitute its judgment for that of the jury or make credibility determinations, Price v. City of Charlotte, 93 F.3d 1241, 1249 (4th Cir.1996). The verdict must be upheld if there is evidence upon which a reasonable jury could return a verdict in favor of the non-moving party. Price, 93 F.3d at 1249-50.

Discussion

I. SNC’s Rule 50(b) Motion

SNC has renewed its motion for judgment as a matter of law with respect to ATK’s mass notification, Richter pump, control valves, and chiller claims. The court will address each of these claims in turn.

A. Mass Notifícation

ATK’s mass notifícation claim is one for breach of contract. Specifically, ATK claims that SNC breached the parties’ Contract by failing to provide a fire alarm system that provides for mass notification.

To support this claim at trial, ATK presented a copy of a report prepared by William N. Brooks, a professional engineer retained by SNC to perform a fire protection design analysis. The analysis was required by Unified Facilities Criteria3 (“UFC”) 3-600-01 and the Engineering Functional Specifications (“EFS”) incorporated into the parties’ Contract. In the fire protection report, which was prepared in August of 2009, Brooks indicated that the “building fire alarm system” installed at the NAC/SAC “will be a voice type system with mass notification capability,” and that “[sjpeakers will be installed on the interior and exterior of the building.” (Def s Trial Ex.

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Bluebook (online)
858 F. Supp. 2d 620, 2012 WL 1563992, 2012 U.S. Dist. LEXIS 61787, Counsel Stack Legal Research, https://law.counselstack.com/opinion/snc-lavalin-america-inc-v-alliant-techsystems-inc-vawd-2012.