Stone & Webster, Inc. v. Georgia Power Company

965 F. Supp. 2d 56, 2013 WL 4616430, 2013 U.S. Dist. LEXIS 124187
CourtDistrict Court, District of Columbia
DecidedAugust 30, 2013
DocketCivil Action No. 2012-1783
StatusPublished
Cited by13 cases

This text of 965 F. Supp. 2d 56 (Stone & Webster, Inc. v. Georgia Power Company) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stone & Webster, Inc. v. Georgia Power Company, 965 F. Supp. 2d 56, 2013 WL 4616430, 2013 U.S. Dist. LEXIS 124187 (D.D.C. 2013).

Opinion

MEMORANDUM OPINION

COLLEEN KOLLAR-KOTELLY, District Judge.

This contract action comes before the Court following a highly choreographed “race-to-the-courthouse” in which the counterparties to an agreement concerning the design and construction of nuclear electrical generating units in Waynesboro, Georgia sought to file their mirror-image complaints first in the forum of their choice. On November 1, 2012, Plaintiffs Stone & Webster, Inc. and Westinghouse Electric Company LLC (together “Plaintiffs”) filed the instant [1] Complaint against Defendants Georgia Power Company, Oglethorpe Power Corporation, Municipal Electric Authority of Georgia, and the City of Dalton, Georgia (collectively “Defendants”), asserting claims for breach of contract and violation of the Georgia Prompt Payment Act, O.C.G.A. §§ 13 — 11— 1 et seq, arising from Defendants’ alleged refusal to agree to adjustments to the contract price and project schedule to which Plaintiffs claim they are entitled. That same date, November 1, 2012, Defendants filed their own action in Augusta, Georgia, in the United States District Court for the Southern District of Georgia, seeking a declaratory judgment that Plaintiffs are not entitled to the price and schedule adjustments for which Plaintiffs previously submitted change orders, as well as refunds of amounts paid by Defendants to Plaintiffs pursuant to the parties’ provisional payment agreement governing those change orders. See generally Georgia Power Co. et al. v. Westinghouse Electric Company LLC et al., Civ. A. No. 112-167 (S.D.Ga.)(JRH-WLB).

Presently before the Court are Plaintiffs’ [11] Motion to Enjoin the Prosecution of Defendants’ Duplicative Georgia Action and Defendants’ [13] Motion to Dismiss the Complaint, or in the Alternative, Stay this Action. Upon consideration of the parties’ submissions, 1 the applicable authorities, and the entire record, the Court shall DENY Plaintiffs’ motion to enjoin and GRANT Defendants’ motion to dismiss. Accordingly, this action is hereby *59 dismissed, without prejudice, in its entirety. 2

I. BACKGROUND

The disputes between the parties arise out of the design and construction of two nuclear electrical generating units at an electric generating plant in Waynesboro, Georgia (the “Project”). Defendants, who are the owners of the Project, and Plaintiffs, who collectively are the contractor on the Project, entered into an Engineering, Procurement and Construction Agreement (“EPC Agreement”), pursuant to which Plaintiffs allegedly agreed to design, engineer, procure, construct, and test the nuclear electrical generating units and related facilities and structures at the plant. Compl. ¶ 10.

The instant Complaint asserts claims for breach of contract and violation of the Georgia Prompt Payment Act, O.C.G.A. §§ 13-11-1 et seq, arising from Defendants’ alleged failure to agree to adjustments to the contract price and project schedule to which Plaintiffs claim they are entitled. In essence, Plaintiffs claim that, subsequent to the effective date of the EPC Agreement, the United States Nuclear Regulatory Commission (“NRC”) imposed various unforeseen directives, requirements, and regulatory changes that required Plaintiffs to make substantial design changes (hereinafter “Regulatory Changes”), thereby incurring considerable cost and delay. Plaintiffs contend that the NRC-imposed Regulatory Changes they made constitute compensable changes under the terms of the EPC Agreement, entitling them to adjustments to the contract price and project schedule. See generally Compl. For their part, Defendants contend that the EPC Agreement requires them to pay Plaintiffs a fixed price for designing, building, and making the Project operational within a guaranteed time limit and that Plaintiffs’ invoices for amounts greatly exceeding the contractual fixed price are “unjustified.” Defs’ Reply at 3-4. Defendants further argue that Plaintiffs’ prayer for adjustments to the project schedule and contract price is simply a request for judicial modification of the EPC Agreement so that Plaintiffs will be relieved of liability for their delay on the Project and permitted to submit otherwise unjustified invoices associated with such delay. Id.

Prior to commencement of the instant action, Plaintiffs submitted written notices of the Regulatory Changes. Subsequently, the parties undertook mediation pursuant to the EPC Agreement, which requires the parties to first mediate all disputes under the contract and prohibits the commencement of a civil action until such mediation concludes. As both Plaintiffs and Defendants represent in their pleadings and supporting declarations, the parties were aware of the “first-to-file” race to the courthouse that would likely result upon conclusion of an unsuccessful mediation. See Pis’ Mem. at 8; Defs’ Mem. at 1. For this reason, the parties agreed that mediation would conclude at a date and time certain — specifically on November 1, 2012, at 8:00 p.m. — and that no lawsuit could be initiated before that time. Id. The events that ensued are of the kind scarcely encountered outside of the pages of a law school exam.

Plaintiffs filed the instant Complaint by way of this Court’s electronic filing system. Plaintiffs contend that they, through counsel, clicked the “submit” button at precisely 8:00:00 p.m. on November 1, *60 2012, according to the United States Naval Observatory Master Clock. Pis’ Mem. at 8-9; id,., Ex. 9 (Deck of Shawn Chick), ¶ 4; id., Ex. 10 (Deck of David C. Smith), ¶ 4. The transaction log generated by the electronic filing system, a copy of which Plaintiffs have submitted with their motion to enjoin, lists “11/01/2012 20:00:01” as the “date” corresponding to the Complaint. Id., Ex. 11.

Defendants, to the contrary, opted to file their own complaint — which both parties describe as a “mirror image” of Plaintiffs’ Complaint in this Court, see Pis’ Mem. at 1; Defs’ Mem. at 1 — in person and manually in the United States District Court for the Southern District of Georgia (the “Georgia action”). According to the declaration of Defendants’ counsel, when both the minute hand and second hand on an iPhone clock indicated the time to be 8:00:00 p.m., counsel filed the Georgia action by simultaneously transferring possession of the original complaint and all requisite accompanying filings to the deputy clerk, whom noted the date (“November 1, 2012”) and filing time (“8:00 p.m.”) on the documents. Defs’ Mem., Ex B. (Deck of Benjamin H. Brewton); see also Pis’ Mem., Ex. 1 (copy of original complaint in Georgia action).

In view of this duplicative litigation, Plaintiffs have filed a [11] motion requesting that the Court enjoin Defendants from prosecuting the Georgia action.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Trilogy Federal, LLC v. Civitasdx LLC
District of Columbia, 2025
Faizi v. Garland
District of Columbia, 2024
Lockey v. Carson
District of Columbia, 2021
United States v. Al-Nashiri
374 F. Supp. 3d 1190 (Special Court under the Regional Rail Reorganization Act, 2018)
Does v. Hills
217 F. Supp. 3d 199 (District of Columbia, 2016)
Wise v. United States
128 F. Supp. 3d 311 (District of Columbia, 2015)
Stone & Webster, Inc. v. Georgia Power Company
779 F.3d 614 (D.C. Circuit, 2015)
Stone & Webster, Inc. v. Georgia Power Company
968 F. Supp. 2d 1 (District of Columbia, 2013)
Blackhawk Consulting, LLC v. Federal National Mortgage Association
975 F. Supp. 2d 57 (District of Columbia, 2013)

Cite This Page — Counsel Stack

Bluebook (online)
965 F. Supp. 2d 56, 2013 WL 4616430, 2013 U.S. Dist. LEXIS 124187, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stone-webster-inc-v-georgia-power-company-dcd-2013.