United States Ex Rel. Capps v. Fidelity & Deposit Co.

875 F. Supp. 803, 1995 U.S. Dist. LEXIS 1601, 1995 WL 56621
CourtDistrict Court, M.D. Alabama
DecidedFebruary 7, 1995
DocketCV-94-A-648-N
StatusPublished
Cited by3 cases

This text of 875 F. Supp. 803 (United States Ex Rel. Capps v. Fidelity & Deposit Co.) is published on Counsel Stack Legal Research, covering District Court, M.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States Ex Rel. Capps v. Fidelity & Deposit Co., 875 F. Supp. 803, 1995 U.S. Dist. LEXIS 1601, 1995 WL 56621 (M.D. Ala. 1995).

Opinion

MEMORANDUM OPINION & ORDER

ALBRITTON, District Judge.

I. INTRODUCTION

This cause is now before the court on the following Motions for Summary Judgment: Defendant Fidelity and Deposit Company of Maryland’s Motion for Partial Summary Judgment filed on August 26, 1994; Defendant Roy Anderson Corporation’s Motion for Summary Judgment filed on September 30, 1994; and Plaintiffs Motion for Partial Summary Judgment filed October 24, 1994.

Donald E. Capps (“Capps”) does business as an individual proprietorship in the state of Alabama; this enterprise is known as Capps’ Customs. On May 26, 1994, Capps filed a two count complaint seeking to recover under a Miller Act bond. Capps named the following defendants: Fidelity and Deposit Company of Maryland (“Fidelity”), Roy Anderson Corporation (“Anderson”), United Stage Equipment, Inc. (“United”), and Buzz Howell (“Howell”). Capps seeks the balance which he claims United owes him for work he did on a government construction project. Specifically, Capps alleges in Count One that Defendants owe him $7,285.18 for work he performed as a subcontractor of United on the construction project at Gunter Air Force Base. Capps also claims that he is due interest on that sum and attorney’s fees. In Count Two, Capps alleges that Fidelity failed to make payment of his claim and refused to investigate the claim to determine if payment should be made. Capps asks for $100,000 for Fidelity’s alleged bad faith refusal to investigate or pay.

On July 29, 1994, Anderson, the general contractor on the construction project, filed a counterclaim against Capps and crossclaims against its surety, Fidelity, and its subcontractor, United and Howell. Anderson alleges that these claims are appropriate as this is properly an interpleader suit. Anderson alleges that the complex nature of the dispute between Capps and United cause it to doubt which of these two parties is due the subcontract balance. Anderson brings these claims in an attempt to avoid multiple liability on these funds. It also seeks to limit its liability to $7,285.18. Anderson seeks to tender this amount to the court and be relieved of any further liability. Anderson asserts that it would then be due to be dismissed with prejudice from the case.

United filed a counterclaim against Capps alleging that Capps installed a track system which was insufficient to support the weight of the curtain system and that United had to replace the track system at its own expense. The replacement cost United $2,500.00. United contends that the installation of the faulty track system constituted a breach of the contract between United and Capps. United seeks a judgment of $2,500.00 against Capps.

As previously noted, this cause is now before the court on several motions for summary judgment. Fidelity seeks summary judgment on Count Two only the bad faith claim. Fidelity contends that its submissions establish that there is no genuine issue of fact and that it is entitled to judgment as a matter of law on this count. Anderson’s Motion for Summary Judgment is based on its contention that only the $7,285.18 is at issue and that its payment of this sum to the court, as is appropriate in interpleader cases, warrants its dismissal from the case. The basis of Anderson’s contention is that attorney’s fees are not due as a matter of law. Capps contends that he is due summary judgment on both Count One and Count Two and that the only issue remaining which need go to a jury is the amount of punitive damages for Count Two. ■

For the reasons stated below, the court finds that: 1) Fidelity’s Motion for Partial Summary Judgment is due to be GRANTED; 2) Anderson’s Motion for Summary Judgment is due to be DENIED; and 3) *806 Capps’ Motion for Partial Summary Judgment is due to be GRANTED in part and DENIED in part.

II. FACTS

The court has carefully considered the answers, affidavits, and documents submitted in support of and in opposition to the pending motions. The submissions establish the following facts:

Anderson was the general contractor for construction of the Gunter Air Force Base SNCO Academy and Dormitory Project (“the Project”) in Montgomery, Alabama. Anderson entered into a contract with Fidelity whereby Anderson was the principal and Fidelity was the surety. Fidelity issued payment and performance bonds for this construction project. Anderson and Fidelity executed the contract for the issuance of the bond pursuant to the requirements of 40 U.S.C. § 270a.

Anderson entered into a contract with United whereby United would furnish and install curtains and blinds on the Project. It is undisputed that Capps submitted a proposal to United in August of 1993. This proposal listed the price for drapery systems for the Project. The proposal bears the signature of Donald Capps on behalf of Capps’ Customs. Buzz Howell’s signature appears on the line below the paragraph which describes the terms of United’s acceptance of the proposal. 1 The proposal puts the total price for the specified work at $35,028.35 and requires a deposit of $10,508.51. The proposal specifies that the balance is due upon completion.

Capps furnished and installed a curtain track in the auditorium that was not substantial enough to support the weight of the curtain. The curtain and the track fell due to the weight of the curtain. Capps avers the track which he installed was the one specified. Anderson admits that the track installed by Capps pursuant to its contract with United and Howell conformed with plans and specifications. By failing to respond to Capps’ requests for admissions, Howell and United also admit that the track conformed with plans and specifications and that the curtain track conformed with the requirements of the United/Capps contract. 2 Capps contends that prior to installing the track, he informed United that the capacity of the track was not sufficient to support the curtain and that the project required a heavier rod. United refused to approve any addendum or make any change in the track. United failed to respond to Capps’ requests for admissions, and therefore, this court deems it to have admitted Capps’ contentions regarding the discussion of the appropriateness of the track. After the aforementioned discussions, Capps installed the track according to specifications.

After the curtain fell, Anderson took the position that no one had advised it that the track would not support the curtain. Consequently, Anderson directed United to furnish and install a track that was substantial enough to support the weight of the curtain at no extra cost to the government or to Anderson. United apparently installed another track and then requested that Capps credit its bill for the cost of the replacement track. Capps has taken the position that United is not due a credit. Anderson advised United that it would make no further payments to United on the contract until the dispute between United and Capps is settled *807 and Anderson receives formal notice of the settlement.

*806

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875 F. Supp. 803, 1995 U.S. Dist. LEXIS 1601, 1995 WL 56621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-capps-v-fidelity-deposit-co-almd-1995.