United States ex rel. Keller Painting Corp. v. Torcon, Inc.

64 F. Supp. 3d 371, 2014 U.S. Dist. LEXIS 166101, 2014 WL 6769234
CourtDistrict Court, E.D. New York
DecidedNovember 29, 2014
DocketNo. 12-CV-1061 (ADS)(ARL)
StatusPublished
Cited by1 cases

This text of 64 F. Supp. 3d 371 (United States ex rel. Keller Painting Corp. v. Torcon, Inc.) is published on Counsel Stack Legal Research, covering District Court, E.D. New York 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. Keller Painting Corp. v. Torcon, Inc., 64 F. Supp. 3d 371, 2014 U.S. Dist. LEXIS 166101, 2014 WL 6769234 (E.D.N.Y. 2014).

Opinion

SPATT, District Judge.

This case arises from a subcontract agreement entered into by the Plaintiff Keller Painting Corp. (“Keller”) with the Defendant Torcon, Inc. (“Torcon”) to provide painting services for a construction project at a federal government building. On December 21, 2012, the Plaintiffs the United States of America, for the use and benefit of Keller, and Keller (collectively, the “Plaintiffs”) commenced this action against the Defendants Torcon and Travelers Casualty and Surety Company (“Travelers”) (collectively, the “Defendants”). The action seeks damages allegedly owed to the Plaintiff Keller for services performed under the subcontract and asserting claims for (i) breach of the subcontract, (ii) payment on a bond provided by Travelers, and (iii) unjust enrichment. On January 28, 2013, the Defendants filed an answer to the Plaintiffs’ complaint and asserted two counterclaims against the Plaintiffs for breach of the subcontract.

Presently before the Court is a motion by the Plaintiffs for summary judgment pursuant to Federal Rule of Civil Procedure (“Fed. R. Civ.P.”) 56 to dismiss the Defendants’ counterclaims and a cross-motion for summary judgment by the Defendants pursuant to Fed.R.Civ.P. 56 for summary judgment on their counterclaims against the’ Plaintiffs. For the following reasons, the Court denies both motions.

I. BACKGROUND

Unless stated otherwise, the following facts are drawn from the parties’ Rule 56.1 statements. Triable issues of fact are noted.

A. Underlying Facts

1. The NSLS-II and Specification 09904

In 2008, Brookhaven Scientific Associates, LLC (“BSA”), acting under an agreement with the United States government, submitted a request for proposal (“RFP”) to construction firms for the construction of the National Synchrotron Light Source II Ring Building (“NSLS-II”) (Beatrice Aff. at ¶ 5.) NSLS-II was designed to be a “new, state-of-the art, medium energy electron storage ring,” which was “expected to have a broad impact on a wide range of disciplines and scientific initiatives.” (Id. at ¶¶ 3, 6.)

The RFP contained specifications for the materials to be used in the construction of NSLS-II. ■ (Id. at ¶ 9.) Relevant to the instant case, Specification 09904 con[374]*374tains requirements for interior painting on the NSLS-II. Section 3.1(B) of the speci.fication, entitled, “Inspection,” provides, in part, that “[c]ommencing ... work in a specific area constitutes acceptance of surfaces, and responsibility for performance.” (The Pis.’ Mot. for Summ. J., Ex. A.). Section 3.10, entitled, “Application — General,” provides directions for the application of paint to interior surfaces. In particular, Section 3.10(d) states, “Mix and apply [paint] as recommended by [the] manufacturer.”

Section 3.13 of Specification 09904 is entitled, “Schedule — Interior Paint Systems.” Section 3.13(F) states that for “Miscellaneous metals” a “[w]ater based urethane, gloss” paint is required in three different coats: (i) “First coat: Pro-Cryl Universal Acrylic Primer, B66-310 Series”; (ii) “Second Coat: Hydrogloss Water Based Urethane Gloss, B65”; and (iii) “Third Coat: Hydrogloss Water Based Urethane Gloss, B65.” Although not mentioned by name in this provision, the parties agree that the all three coats of paint specified by this provision called for a brand of paint made by the paint manufacturer, Sherman Williams.

2. General Contract with Torcon and Subcontract with Helmark

On February 18, 2009, BSA entered into a general contract with the Defendant Tor-con, a construction management firm, for the construction of the NSLS-II. Pursuant to the general contract, the RFP and associated documents, including Specification 09904, were incorporated in the general contract.

Torcon began negotiations with Hel-mark Steel, Inc. (“Helmark”) to provide services related to steel and metal decking on the NSLS — II. The parties do not make clear the date or underlying circumstances of those negotiations.

On March 31, 2009, prior to entering into a contract with Torcon, Helmark submitted a request for information (“RFI”) to Torcon related to “metal roof decking.” In that document, Helmark asked, “[I]t is our understanding that all of the metal deck work is to be prime painted' as part of our scope of work and finish painted in the field. Please confirm.” (The Pis.’ Mot. for Summ. J., Ex. C.) In addition, Helmark asked, “Can you please provide information on the required paint product for the metal deck, or are we to submit the deck manufacturer standard primer for review and approval?” (Id.)

On April 9, 2009, HDR Arehitecture/En-gineering, Inc. (“HDR”), the master architect for the construction of the NSLS-II, responded with respect to the first question, “This is confirmed. [Metal deck work is to be] shop primed, field painted.” (Id.) With respect to the second question, HDR responded, “For primer and paint, see sec- ■ tion 09904, 3.13F. Please submit primer for approval as specified.” (Id.)

3. The Application of First Coat of Prime Paint by Helmark

On April 29, 2009, Torcon entered into a subcontract with Helmark Steel, Inc. (“Helmark”) pursuant to which Helmark was required to provide, among other things, “shop primer paint” for metal roof decking and structural components to be used in the NSLS-II. The parties agree that pursuant to this subcontract, Helmark was required to paint the metal roof decking in conformance with Specification 09904.

On May 15, 2009, Helmark entered into a subcontract with Vulcraft of New York, Inc. (‘Wulcraft”) to supply the metal decking and steel joists, which were to be prime painted by Helmark.

[375]*375On June 4, 2009, Helmark submitted a “data sheet” to Torcon for approval of the primer paint to be used on the deck and joists. (The Pis.’ Mot. for Summ. J., Ex. D.) The primer that Torcon submitted for approval was a grey coating made by “Ar-morChem WC,” a paint company manufacturer. (Id.) On June 17, 2009, Torcon reviewed the submittal and forwarded it to HDR for approval.

The parties agree that the use of Armor-Chem paint deviated from the Sherman Williams paint called for by Specification 09904 § 3.13(F). However, on July 29, 2009, HDR stamped the submittal as approved and checked a box that stated, “No exceptions taken.” (Id.) The stamp also included a notation stating that “[cjorrec-tions or comments made on show drawings during the review do not relieve [the] contractor from compliance with the requirements of the drawing and specifications ....’’(Id.)

Thereafter, Helmark delivered and installed metal decking to ‘Tenants 1 through 5” of the NSLS-II. Helmark used ArmorChem, not Sherman Williams, as the first coat of prime paint on the metal decking. The parties agree that Helmark’s use of Armorchem contravened Specification 09904 § 3.13(F) and constituted a violation of Helmark’s subcontract with Torcon.

4. The Keller Subcontract

On October 13, 2009, the Defendant Tor-con entered into a written subcontract with the Plaintiff Keller (the “Subcontract”).

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Bluebook (online)
64 F. Supp. 3d 371, 2014 U.S. Dist. LEXIS 166101, 2014 WL 6769234, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-keller-painting-corp-v-torcon-inc-nyed-2014.