Sogeti, U.S.A., L.L.C. v. Whirlwind Building Systems, Inc.

496 F. Supp. 2d 380, 2007 U.S. Dist. LEXIS 56898, 2007 WL 2198364
CourtDistrict Court, S.D. New York
DecidedJuly 31, 2007
Docket04 Civ. 8833(RJH)
StatusPublished

This text of 496 F. Supp. 2d 380 (Sogeti, U.S.A., L.L.C. v. Whirlwind Building Systems, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sogeti, U.S.A., L.L.C. v. Whirlwind Building Systems, Inc., 496 F. Supp. 2d 380, 2007 U.S. Dist. LEXIS 56898, 2007 WL 2198364 (S.D.N.Y. 2007).

Opinion

MEMORANDUM OPINION AND ORDER

HOLWELL, District Judge.

Defendant Whirlwind Building Systems, Inc. (“Whirlwind”) moves (1) for additional, amended or supplemental findings of fact and conclusions of law pursuant to Rule 52(b) of the Federal Rules of Civil Procedure (“Rule”), and (2) for a new trial, or alternatively, to alter or amend final judgment pursuant to Rule 59(a)(2) and (e). For the reasons stated below, defendant’s motions are denied.

BACKGROUND

Plaintiff Sogeti USA LLC (“Sogeti”) initiated suit against Whirlwind for breach of contract for failure to pay for services rendered under a series of related consulting agreements. In accordance with the terms of those agreements, Sogeti was retained to advise Whirlwind on the evaluation, installation and implementation of an automated and integrated information system known as an Enterprise Resource Planning System (“ERP”). Whirlwind terminated Sogeti and refused to pay outstanding invoices asserting, primarily, that Sogeti had intentionally or negligently misrepresented the ability of the ERP system to be provided by a third-party supplier (Oracle) to track Whirlwind’s actual inventory costs.

After a two and a half day bench trial, this Court entered judgment for Sogeti, concluding that Sogeti fully performed its obligations under the consulting agreements and was entitled to recover the face amount of the unpaid invoices, subject to certain relatively minor adjustments, plus an interest charge of 1.5% per month as provided by the agreements. Concomitantly, the Court found that there was a failure of proof with respect to defendant’s counterclaims for fraud, negligent misrepresentation and unjust enrichment. See the Court’s Findings of Fact and Conclusions of Law issued from the bench on May 26, 2006 (“Opinion”).

STANDARD

Motions for reconsideration are denied unless “[the previous decision] was based on a mistake of fact or clear error of law, or ... refusal to revisit the earlier decision would work a manifest injustice.” LiButti v. U.S., 178 F.3d 114, 118 (2d Cir.1999). Furthermore, such a mistake must “reasonably be expected to alter the conclusion reached by the court.” Shrader v. CSX Transp., Inc., 70 F.3d 255, 257 (2d Cir.1995). Motions for additional, amended or supplemental findings of fact and conclusions of law pursuant to Rule 52 and motions for a new trial or amended judgments pursuant to Rule 59, therefore, will not be granted simply to reconsider issues that have already been fully litigated and upon which a legally sound decision has already been rendered. See, e.g., Id.; see also Campbell v. Cantor Fitzgerald & Co., Inc., 205 F.3d 1321, 1321 (2d Cir.1999); Wechsler v. Hunt Health Systems, Ltd., No. 94 Civ. 8294(PKL), 2004 WL 2210261, at *2 (S.D.N.Y., Sept. 30, 2004); GTFM, Inc. v. Solid Clothing Inc., No. 01 Civ. 2629(DLC), 2002 WL 31886612, at *1 (S.D.N.Y., Dec. 27, 2002).

DISCUSSION

1. The Award of the Contractual Rate of Interest

Whirlwind ascribes error to the Court’s award of a monthly interest charge of 1.5% on Sogeti’s unpaid invoices. Whirlwind contends that this charge is usurious and contrary to the terms of the relevant agreement which provides that *382 interest shall be calculated at the rate of “1.5% per month (or the maximum rate permitted by applicable law, if lower).” Defendant’s arguments are raised for the first time in its post-judgment motions and for this reason alone must be rejected. Davidson v. Scully, 172 F.Supp.2d 458, 462 (S.D.N.Y.2001) (motion to reconsider under Rule 59 cannot advance “new facts, issues or arguments not previously presented to the court.”). In any event, defendant’s usury argument lacks merit as the law of usury does no apply here because the monthly interest Sogeti charged was neither a loan nor forbearance. F.K. Gailey Co., Inc. v. Wahl, 262 A.D.2d 985, 692 N.Y.S.2d 563, 564 (N.Y.App.Div.1999) (the two percent late fee plaintiff charged for late payments was not a loan or forbearance, and therefore, the law of usury was not applicable); Waterbury v. City of Oswego, 251 A.D.2d 1060, 674 N.Y.S.2d 530, 531 (N.Y.App.Div.1998) (usury statute inapplicable because the 10% late fee defendant charged for delinquent water payments was not a loan or forbearance, but rather, a device to encourage prompt payment of bills). Sogeti did not loan money to Whirlwind and “when there is no loan, there can be no usury.” Waterbury v. City of Oswego, 674 N.Y.S.2d at 531 (quoting Feinberg v. Old Vestal Rd. Assocs., 157 A.D.2d 1002, 550 N.Y.S.2d 482, 483 (N.Y.App.Div.1990)). Moreover, the law of usury is not even applicable to agreements for the provision of goods and services as they are not considered to constitute loan agreements. In re Renshaw, 229 B.R. 552, 557 (2nd Cir.BAP 1999) (“[t]he sale of goods and services are exempt from the usury law [because] [u]like an entity which lends money, it is not illegal for an entity providing goods and services ... to charge one price for cash and another price (original price plus a Service Charge) for a sale on credit.”).

Whirlwind and Sogeti were not in a lender-borrower relationship, but even if they were, a corporation cannot assert a defense of usury to avoid payment of an obligation. Lessinger v. C.I.R., 872 F.2d 519, 521 (2d Cir.1989) (under New York General Obligations law § 5-521(1), “corporation prohibited from interposing defense of usury”); see also Intima-Eighteen v. Schreiber, 172 A.D.2d 456, 568 N.Y.S.2d 802, 804 (N.Y.App.Div.1991). 1

2. Proof of Services Provided

Defendant argues, as it did at trial, that Sogeti failed to prove that it performed the services for which it billed because it did not produce the employee timesheets upon which the invoices were based. However, the contract between the parties only required that invoices be “based upon Sogeti ... timesheets” and the undisputed testimony is that they were. (Tr. at 45, 42.) While the underlying timesheet was no longer available at trial, the evidence before the Court, which included the initial approval for payment of certain outstanding invoices by Whirlwind’s CFO, was more than sufficient to support the conclusion that Sogeti’s invoice statements were accurate. (Opinion at 379.)

3. Work Performed by Alleged Subcontractors

The primary contract between the parties provided that Sogeti’s use of subcontractors was subject to Whirlwind’s pri- or expresses written consent. Whirlwind contends that two of the workers on the ERP project (Lenore and Ballard) were subcontractors not approved by Whirlwind *383 and, therefore, it should not be required to pay for their services.

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Bluebook (online)
496 F. Supp. 2d 380, 2007 U.S. Dist. LEXIS 56898, 2007 WL 2198364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sogeti-usa-llc-v-whirlwind-building-systems-inc-nysd-2007.