TLC Realty 1 LLC v. Belfor USA Group, Inc.

166 F. Supp. 3d 919, 2016 WL 98599, 2016 U.S. Dist. LEXIS 2389
CourtDistrict Court, S.D. Ohio
DecidedJanuary 8, 2016
DocketCase No. 3:13-cv-56
StatusPublished
Cited by5 cases

This text of 166 F. Supp. 3d 919 (TLC Realty 1 LLC v. Belfor USA Group, Inc.) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
TLC Realty 1 LLC v. Belfor USA Group, Inc., 166 F. Supp. 3d 919, 2016 WL 98599, 2016 U.S. Dist. LEXIS 2389 (S.D. Ohio 2016).

Opinion

DECISION AND ENTRY GRANTING IN PART DENYING IN PART DEFENDANT’S MOTION FOR SUMMARY JUDGMENT (DOC. 41)

Michael J. Newman, United States Magistrate Judge

This civil consent case — concerning claims of racial discrimination in contracting under 42 U.S.C. § 1981, and unjust enrichment under Ohio law — is before the Court on the motion for summary judgment filed by Defendant Belfor USA Group, Inc. (“Belfor”). Doc. 41. Both sides are represented by counsel, and have fully completed discovery. Plaintiff TLC Realty 1 LLC doing business as TLC General Contracting, LLC (“TLC”) filed a memorandum in opposition. Doc. 43. Thereafter, Belfor filed a reply memorandum. Doc. 50. The Court has carefully considered all of the documents before it, and Belfor’s motion for summary judgment is now ripe for decision.

I.

A motion for summary judgment should be granted if the evidence submitted to the Court demonstrates that there is no genuine issue as to any material fact and that the movant is entitled to summary judgment as a matter of law. Fed. R. Civ. P. 56; see also Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986); Anderson v. Liberty Lobby, Inc., 477 U.S. 242, 247-48, 106 S.Ct. 2505, 91 L.Ed.2d 202 (1986). “Summary judgment is only appropriate ‘if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.’” Keweenaw Bay Indian Comm. v. Rising, 477 F.3d 881, 886 (6th Cir.2007) (quoting Fed. R. Civ. P. 56(c)). “Weighing of the evidence or making credibility determinations are prohibited at summary judgment — rather, all facts must be viewed in the light most favorable to the non-moving party.” Id.

Once “a motion for summary judgment is properly made and supported, an opposing party may not rely merely on allegations or denials in its own pleading[.]” Viergutz v. Lucent Techs., Inc., 375 Fed.Appx. 482, 485 (6th Cir.2010) (citation omitted). Instead, the party opposing summary judgment “must — by affidavits or as otherwise provided in this rule — set out specific facts showing a genuine issue for trial.” Id. (citation omitted). Under Fed. R. Civ. P. 56(c), “[a] party asserting that a fact.. .is genuinely disputed must support the assertion by...citing to particular parts of materials in the record. . .or.. .showing that the material cited do not establish the absence... of a genuine dispute[.]” Where “a party fails.. .to properly address another party’s assertion of fact as required by Rule 56(c), the court may.. .consider the fact undisputed for purposes of the motion.” Fed. R. Civ. P. 56(e)(2). If the “evidence is such that a reasonable jury could [find] for the nonmoving party[,]” then summary judg[923]*923ment should be denied. Anderson, 477 U.S. at 248, 106 S.Ct. 2505.

II.

In support of its motion for summary judgment, Belfor cites to excerpts of deposition testimony from a number of party representatives and other witnesses, including Teaven Curtiss (“Curtiss”), Chuck Steele (“Steele”), and Tanja Curtiss, and submits affidavits from Steele, Sam Malone (“Malone”), Brandon Carr, Caitlin Kashef, Rhonda Johnson, and Heather Muzumdar. Doc. 41 at PagelD 190, 194-213. In opposing Belfor’s motion, TLC relies on Curtiss’s deposition testimony, an affidavit from Demond Hall (“Hall”), evidence submitted by Belfor in support of its arguments, and evidence produced by Bel-for in discovery. Doc. 43 at PagelD 491-501. Except where otherwise noted, the following summary of the evidence sets forth the material undisputed facts, as well as the disputed facts viewed in a light most favorable to TLC.

TLC is a contracting business owned by Curtiss, who is African American. Doc. 43-1 at PagelD 506-07. Curtiss started the business in 2001.1 Id. Belfor is a disaster recovery and property restoration company with locations around the country, including an office in Fairfield, Ohio. Doc. 41-6 at PagelD 362. The parties’ business relationship began in August 2012, when Mike Desparios (“Desparios”), who at that time worked for Belfor as a project manager, approached Curtiss about TLC potentially becoming a Belfor subcontractor. Doc. 43-1 at PagelD 512-13. Notably, Des-parios and Curtiss previously worked together before Desparios joined Belfor. Id.

Desparios, and Steele, another Belfor project manager at that time, held an initial meeting with Curtiss on or around August 12, 2012. Id. at PagelD 513; doc. 47 at PagelD 1105, 1108. Steele and Despar-ios told Curtiss that he would need to meet with Malone, the general manager of the Fairfield office, to further discuss TLC becoming a Belfor subcontractor. Doc. 43-1 at PagelD 513. Additionally, they advised Curtiss that certain Belfor paperwork, the “vendor pack,” would need to be prepared at that time, including a statement that TLC would only utilize employees paid via withholdings and a W-2 tax form, rather than subcontractors paid via no withhold-ings and a 1099 form. Id. at PagelD 514; doc. 47 at PagelD 1114. According to TLC, Desparios and Steele knew that TLC only used subcontractors, and advised Curtiss to tell Malone that TLC had W-2 employees and to indicate the same on the paperwork — i.e., tó intentionally misrepresent the status of his workforce. Doc. 43-1 at PagelD 514. On August 22, 2012, Curtiss completed the vendor pack, including a Master Subcontract Agreement (“MSA”) and Affidavit of Subcontractor, on which he affirmed that he would utilize only W-2 employees on Belfor jobs. Id. at PagelD 516-17; doc. 41-1 at PagelD 216-31. Significantly, the MSA contains a provision requiring subcontractors to obtain advance written authorization from Belfor before performing work outside the scope of any work order, ie., supplemental work. Doc. 41-1 at PagelD 222. TLC was approved by Belfor’s corporate office, and Malone met with Curtiss on August 31, 2012 to assign TLC work. Id. at PagelD 233.

Belfor initially assigned TLC several small jobs. Doc. 43-1 at PagelD 524. On or around September 20, 2012, Belfor assigned TLC a large fire restoration job in Lima, Ohio involving a new roof and repairs to the interior of a residence owned by Dennis Wireman (“the Wireman job”). Id. at PagelD 524-25, 528. Belfor and TLC [924]*924met and reviewed the scope of work. Id. at PagelD 524. According to Belfor, Steele subsequently observed TLC performing supplemental work on the Wireman job, and not performing specific work that Steele requested be done. Doc. 41-4 at PagelD 328-29.

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166 F. Supp. 3d 919, 2016 WL 98599, 2016 U.S. Dist. LEXIS 2389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tlc-realty-1-llc-v-belfor-usa-group-inc-ohsd-2016.