Taber Partners I v. Insurance Co. of North America, INc.

917 F. Supp. 112, 1996 U.S. Dist. LEXIS 2438, 1996 WL 91646
CourtDistrict Court, D. Puerto Rico
DecidedFebruary 16, 1996
DocketCivil 91-1220 (JP), 91-1211 (JP)
StatusPublished
Cited by15 cases

This text of 917 F. Supp. 112 (Taber Partners I v. Insurance Co. of North America, INc.) is published on Counsel Stack Legal Research, covering District Court, D. Puerto Rico primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taber Partners I v. Insurance Co. of North America, INc., 917 F. Supp. 112, 1996 U.S. Dist. LEXIS 2438, 1996 WL 91646 (prd 1996).

Opinion

OPINION AND ORDER

PIE RAS, District Judge.

The Court has before it Taber Partners I’s (hereinafter “Taber”) second motion for a new trial pursuant to Fed.R.Civ.P. 59(a)(1), renewed motion for judgment as a matter of law pursuant to Fed.R.Civ.P. 50(b); motion to alter or amend judgment through remitti-tur pursuant to Fed.R.Civ.P. 59(e); and motion to amend judgment regarding prejudgment interest; Insurance Company of North *114 America, Inc.’s (hereinafter “INA”) opposition, and Merit Builders, Inc.’s (hereinafter “Merit”) opposition (docket Nos. 569, 577 and 607). For the following reasons, Taber’s motion is hereby DENIED.

I. INTRODUCTION

This case arises out of the renovation and expansion of the Ambassador Plaza Hotel and Casino, in Condado, Puerto Rico. The owner of the hotel, Taber, first filed a complaint against Merit, the general contractor, asserting that Merit had performed its construction duties in a defective and late manner, thereby breaching its contractual obligations under the three construction contracts, the Cost Plus Contract, the Tower Lump Sum Contract, and the Specialty Contracts, as well as the Interim Agreement. Taber also alleged that Merit engaged in allegedly tortious activity and fraud. Taber also sued INA, the insurance company which issued a performance bond guaranteeing the performance of Merit’s work under the Tower Lump Slum Contract. Merit in turn, counterclaimed against Taber for the collection of monies for certifications of payment for work performed under the contracts and retainages, breach of contract for failure to pay pending change orders, including the chase claim, and fraud. In addition, Merit filed a third party complaint against Desarrollos Metropolitanos, Inc. (hereinafter “Desarrol-los”), the subcontractor responsible for the, concrete, plaster and masonry work, asserting that if any of the concrete, plaster or masonry work in the construction project were found to be defective, then Desarrol-los had the contractual obligation to indemnify Merit for any damages incurred as a result of Desarrollos’ defective performance. Finally, Merit filed a third party complaint against Victor Torres & Associates (hereinafter “VTA”), the engineering inspector of the project, asserting that VTA had breached its contractual duties, and had tortiously interfered with the performance of the principal contracts, and conspired to defraud.

Prior to trial, the Court found that due to the complexity of the factual issues, it was necessary to ensure that all claims as presented to the jury were void of ambiguity and in conformity with the law. Therefore, this Court disallowed Taber’s claims regarding “Taber’s alleged loss of the hotel’s value, the alleged extra expenditures spent on repair and maintenance costs, as well as any other allegation of consequential damages which were clearly not foreseeable by Merit when the construction contract was signed.” Further Pretrial Conference Order (docket No. 313). Thus the Court limited Taber’s claims to breach of contract based upon Merit’s allegedly defective and late performance, and to the resulting damages.

The Court equally limited Merit’s evidence and causes of action by preventing the presentation at trial of any evidence regarding consequential damages such as the alleged damages to Merit’s, reputation, and its inability to invest and profit from the monies illegally withheld by Taber. These alleged consequential damages were not foreseeable at the time the parties entered into the contracts. Finally, this Court held that both parties had failed to plead their allegations of fraud with specific particularity as required by Rule 9(b) of the Federal Rules of Civil Procedure. Therefore, both parties were prevented from presenting claims of fraud to the jury during trial.

After Taber and Merit had presented all their evidence, the Court found that there was no evidence upon which a reasonable jury could find that VTA had tortiously inter.fered with the contracts between Taber and Merit, or had breached its contractual obligations with Merit. Consequently, the Court granted VTA’s Rule 50 motion- for judgment as a matter of law and dismissed all claims against VTA. -

Therefore, the only questions which were presented to the jury were as follows: whether Merit breached its contractual obligations by performing defectively and late; whether INA was liable to Taber under the performance bond; whether Desarrollos had obligation to indemnify Merit for the defects in the concrete, plaster or masonry work; and whether Taber had breached its contractual obligations with Merit. After a fourteen week trial, the jury returned its verdict, holding that Merit had not breached any of the *115 contracts since Merit’s performance was neither late nor defective. Consequently, neither INA nor Desarrollos were liable .to Ta-ber. As to the last issue, the jury found that Taber had breached the contracts by failing to pay Merit for work performed and determined the amount of damages at $1,597,-414.00, the amount that Merit was seeking on its counterclaim against Taber. Pursuant to a pre-verdict agreement of the parties, the Court included interest in the amount of the judgment, calculated according a provision in the parties’ contracts.

II. TABER’S ALLEGATIONS

Taber alleges that the jury verdict cannot stand for various reasons. First, Taber moves for a renewed motion for judgment as a matter of law contending that no reasonable jury could have disregarded the evidence presented, which demonstrated that Merit’s work was defective and late. Second, Taber moves for a new trial asserting that the jury disregarded the evidence when reaching its verdict, and that this Court erred in denying Taber’s request to call three individuals as witnesses. Third, Taber moves, in the alternative, for remittitur of the amount of the judgment, to reflect a reduction in the contract price, by the amount of the deductive change orders submitted by Taber and approved by VTA. Fourth, Taber moves to amend the final judgment to remove the amount of interest assessed on the certifications of payment and pending change orders that Taber owes Merit, and to add interest calculated on the deductive change orders from the date they were approved by VTA.

III. MERIT’S AND INA’S ALLEGATIONS

Merit argues that Taber’s motion is both procedurally and substantively defective. First, Merit asserts that Taber failed to move this Court for judgment as a matter of law upon the close of Merit’s evidence based upon the grounds which it now raises. Therefore, Merit asserts, Taber has waived its right to seek judgment as a matter of law based upon these newly raised arguments. Second, Merit contends that Taber has failed to raise any valid basis for a new trial or for an amendment of the judgment, since the jury verdict is based upon the evidence.

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Cite This Page — Counsel Stack

Bluebook (online)
917 F. Supp. 112, 1996 U.S. Dist. LEXIS 2438, 1996 WL 91646, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taber-partners-i-v-insurance-co-of-north-america-inc-prd-1996.