UNITED STATES, ETC. v. EJT Const. Co., Inc.

453 F. Supp. 435
CourtDistrict Court, D. Delaware
DecidedJune 8, 1978
DocketCiv. A. No. 76-41
StatusPublished

This text of 453 F. Supp. 435 (UNITED STATES, ETC. v. EJT Const. Co., Inc.) is published on Counsel Stack Legal Research, covering District Court, D. Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
UNITED STATES, ETC. v. EJT Const. Co., Inc., 453 F. Supp. 435 (D. Del. 1978).

Opinion

453 F.Supp. 435 (1978)

UNITED STATES of America for the Use of JOSEPH T. RICHARDSON, INC., Plaintiff,
v.
E.J.T. CONSTRUCTION COMPANY, INC., and Hydro-Mechanical Contractors, Inc., a/k/a Hydro-Mechanical Co., Inc. and American Casualty Company of Reading, Pennsylvania, Defendants.

Civ. A. No. 76-41.

United States District Court, D. Delaware.

June 8, 1978.

*436 Roy A. Shiels, of Brown, Shiels & Barros, Dover, Del., for plaintiff.

Robert B. Young, of Young & Schwartz, Dover, Del., for defendant Hydro-Mechanical.

George F. Gardner, III, of Biondi & Babiarz, Wilmington, Del., for defendants E.J.T. Construction Co. and American Casualty Co.

OPINION

STAPLETON, District Judge:

This is an action brought pursuant to the Miller Act, 40 U.S.C. § 270a, et seq., involving claims arising out of two construction projects at Dover Air Force Base in Delaware.[1] Plaintiff, Joseph T. Richardson, Inc. ("Richardson"), was the supplier of labor and materials for defendant Hydro-Mechanical Contractors, Inc. ("Hydro-Mechanical"), a subcontractor of the prime contractor, defendant E.J.T. Construction Company ("E.J.T."). The defendant American Casualty Company of Reading, Pennsylvania, ("American Casualty" or "the surety") is the surety for E.J.T. Richardson alleges that it has not received full payment for its performance under its contract with Hydro-Mechanical in the amounts of $64,050 on the dining hall project and $76,933 on the personnel office project. Presently before the Court is the motion of defendants E.J.T. and American *437 Casualty to dismiss the action on the ground that it is time barred by the limitations provisions of 40 U.S.C. §§ 270b(a) and 270b(b), and on the ground of lack of written notice, under 40 U.S.C. § 270b(a). Since I must go outside of the pleadings in order to dispose of the motion, it will be treated as one for summary judgment under Rules 12(b) and 56 of the Federal Rules of Civil Procedure.

In dealing with the motion, it is necessary to begin with the statutory provisions relied upon. 40 U.S.C. § 270b(b) provides:

Every suit instituted under this section shall be brought in the name of the United States for the use of the person suing, . . . but no such suit shall be commenced after the expiration of one year after the day on which the last of the labor was performed or material was supplied by him.

40 U.S.C. § 270b(a) provides:

Every person who has furnished labor or material in the prosecution of the work provided for in such contract, in respect to which a payment bond is furnished under section 270a of this title and who has not been paid in full therefor before the expiration of a period of ninety days after the day on which the last of the labor was done or performed by him or material was furnished or supplied by him for which such claim is made, shall have the right to sue on such payment bond for the amount, or the balance thereof, unpaid at the time of institution of such suit and to prosecute said action to final execution and judgment for the sum or sums justly due him: Provided, however, That any person having direct contractual relationship with a subcontractor but no contractual relationship express or implied with the contractor furnishing said payment bond shall have a right of action upon the said payment bond upon giving written notice to said contractor within ninety days from the date on which such person did or performed the last of the labor furnished or supplied the last of the material for which such claim is made, stating with substantial accuracy the amount claimed and the name of the party to whom the material was furnished or supplied or for whom the labor was done or performed. Such notice shall be served by mailing the same by registered mail, postage prepaid, in an envelope addressed to the contractor at any place he maintains an office or conducts his business, or his residence, or in any manner in which the United States marshal of the district in which the public improvement is situated is authorized by law to serve summons.

I. THE FACTS.

On July 17, 1973, E.J.T. entered into two construction contracts with departments of the United States government, whereby E.J.T. agreed to perform all labor and furnish all materials required for the construction of a dining hall and a personnel office at Dover Air Force Base, Delaware. Pursuant to the Miller Act, 40 U.S.C. § 270a, et seq., E.J.T. and its surety, American Casualty, executed payment bonds to the United States. E.J.T. subsequently contracted the mechanical portions of both contracts to Hydro-Mechanical. Hydro-Mechanical, in turn, subcontracted a sizeable portion of its contracts to Richardson. Richardson claims that it has not received full payment from Hydro-Mechanical on either contract. It filed the complaint in this action on January 23, 1976. The other relevant facts will be discussed in the course of this Opinion.

II. THE WORK OF SUBCONTRACTORS.

To some extent, Richardson relies upon the labor of firms to which it subcontracted portions of its contracts, for the purposes of meeting both the one year provision of Section 270b(b) and the ninety day provision of Section 270b(a). Defendants argue that Richardson may rely only upon the labor performed or materials supplied by its own employees and may not rely upon the dates upon which its subcontractors worked. I dealt with the same argument in United States for the Use of H. T. Sweeney & Son, Inc. v. E.J.T. Construction *438 Co., Inc., 415 F.Supp. 1328, 1333 (D.Del. 1976), and concluded with regard to Section 270b(b) that:

. . . the most reasonable interpretation of the limitations provision permits a subcontractor to rely on the work done by his subcontractor in computing the limitations period.

The defendants have not pointed to any reason why a similar interpretation should not also be applied to Section 270b(a). I believe that the most reasonable interpretation of Section 270b(a) also leads to the result that the plaintiff may rely on the work of its subcontractors in meeting the ninety day provision.

Accordingly, the Court must look to the dates of the labor performed and/or materials supplied both by Richardson and by its subcontractors in determining whether this action is barred, as a matter of law, by either the one year provision of Section 270b(b) or the ninety day provision of Section 270b(a).

III. THE LIMITATIONS CLAIMS.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
453 F. Supp. 435, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-etc-v-ejt-const-co-inc-ded-1978.