United States Ex Rel. Wallace v. Flintco Inc.

143 F.3d 955, 42 Cont. Cas. Fed. 77,324, 1998 U.S. App. LEXIS 14507
CourtCourt of Appeals for the Fifth Circuit
DecidedJune 29, 1998
Docket96-11360
StatusPublished
Cited by83 cases

This text of 143 F.3d 955 (United States Ex Rel. Wallace v. Flintco Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit 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. Wallace v. Flintco Inc., 143 F.3d 955, 42 Cont. Cas. Fed. 77,324, 1998 U.S. App. LEXIS 14507 (5th Cir. 1998).

Opinion

EWING WERLEIN, Jr., District Judge:

This case presents cross-appeals by a contractor and a subcontractor, and their respective bond sureties, from an Amended Judgment entered after a two-week jury trial. After a careful review of the trial proceedings, we conclude that those portions of the Amended Judgment of the district court. that award costs to both sides against their respective adversaries, should be VACATED and REMANDED for further proceedings, and that the Amended Judgment, as reformed herein for clarification, should otherwise be AFFIRMED.

Background

The United States Army Corps of Engineers (“Corps”) engaged Flintco, Inc. (“Flint-co”), a general contractor, to build an enlisted dormitory at Sheppard Air Force Base, Texas, (“the Project”). Flintco, in turn, subcontracted with -Marshall E. Wallace d/b/a Wallace Construction Company (“Wallace”) for Wallace to perform dirt and paving work on the Project. Flintco and American Home Assurance Co. (“AHAC”), Flintco’s surety, furnished a payment bond pursuant to the Miller Act, 40 U.S.C. § 270a; Wallace and Victore Insurance Co. (“Victore”), Wallace’s surety, furnished private payment and performance bonds.

Wallace began work on the Project in March 1992. In July 1992, August 1992, and January 1993, Wallace submitted change orders No. 1, No. 2, and No. 3, respectively, for additional compensation. . Each was approved, and pursuant to each, Wallace was compensated.

In July 1993, the Corps issued a directive that the compaction of the subgrade of the parking lots be increased from 90% to 95% density. Wallace began this work before submitting a claim to the Corps, through Flintco, for additional compensation. Wallace later submitted the claim, but before the claim was fully processed, Wallace ceased work on the Project and left the Project site on December 23, 1993, leaving his own subcontractors unpaid to the extent of approximately $101,000. Flintco contracted with another dirt and paving subcontractor to complete the unfinished work.

In April 1994, Wallace submitted a “Request for Equitable Adjustment” in which he sought $ 215,292.50 in compensation for the increased compaction. The Corps responded with an award of only $7,000.00. Wallace later submitted an amended claim which was denied.

Wallace filed this suit against Flintco and AHAC for breach of contract and for quantum meruit. Wallace alleged that Flintco, the Corps, and other subcontractors interfered with his work on the Project, and caused him “productivity impact” damages. Flintco and AHAC counterclaimed against Wallace for breach of the subcontract, and filed a third party action against Victore on the performance and payment bonds.

A two-week jury trial resulted in a special verdict for Wallace on all questions submitted. Among other things, the jury found that Flintco breached, its contract with Wallace; that Wallace was entitled to a quantum meruit recovery; that Wallace had fulfilled alb contractual conditions precedent to filing suit against Flintco, and AHAC; and that Flintco and AHAC had breached the Miller Act bond by failing to pay Wallace. Conversely, the jury also found that Wallace had not breached his contract with Flintco; that Wallace was not negligent in performing his work; that Wallace had not waived his claims *959 against Flintco; that Flintco had not fulfilled all contractual conditions precedent to filing suit against Wallace and Victore; that Flint-co did not acquire from Wallace’s subcontractor creditors their claims against Victore; and that Wallace and Victore did not breach their obligations to Flintco under the payment bond. The jury awarded $197,777.00 to Wallace and awarded nothing to Flintco.

Wallace moved for entry of judgment; and Flintco and AHAC filed a “Motion for Judgment Notwithstanding the Verdict” under Fed.R.Civ.P. 50(b). 1 The trial court granted in part Flintco’s and AHAC’s Rule 50(b) motion, holding as a matter of law that they were entitled to recover from Wallace and Victore approximately $101,000 that they had paid to Wallace’s subcontractors whom Wallace had not paid when he ceased work on the Project. The trial court ultimately signed an Amended Judgment, which is summarized as follows:

• Judgment for Wallace against Flintco on Wallace’s state law quantum meruit claim for:
“1. Actual damages in the amount of $197,777.00;
“2. Pre-judgment interest thereon in the amount of $62,681.85;
“3. Post-judgment interest on all amounts awarded in item numbers one and two above at the currently prevailing rate pursuant to 28 U.S.C. § 1961 of 5.90% per annum, compounded daily, from the date of this judgment until paid.”

R. Vol. 13 at 3776-77 (footnotes omitted).

• A take nothing Judgment on Wallace’s claim for breach of contract against Flint-co; 2
• Judgment for Wallace and against Flint-co and AHAC, jointly and severally, on Wallace’s Miller Act payment bond claim for:
“1. Actual damages in the amount of $197,777.00;
“2. Pre-judgment interest thereon in the amount of $62,681.85;
“3. Post-judgment interest on all amounts awarded in .item numbers one and two above at the currently prevailing rate pursuant to 28 U.S.C. § 1961 of 5.90% per annum, compounded daily, from the date of this judgment until paid.”

Id at 3777. 3

• A take nothing judgment on Flintco and AHAC’s breach of contract claim against Wallace;
• Judgment for Flintco and AHAC and against Wallace and Victore, jointly and severally, on their third-party payment bond claim in the amount of $101,187.30, plus pre-judgment interest in the amount of $30,834.13, and post-judgment interest at a rate of 5.90%;
• A take nothing Judgment on Flintco and AHAC’s third party performance bond claim against Victore;
*960 • $73,778.43 in costs recoverable by Flinteo and AHAC from Wallace and Victore, jointly and severally;
• $90,091.00 in costs recoverable by Wallace from Flinteo and AHAC, jointly and severally;
• $256,338.00 in attorneys’ fees recoverable by Wallace from Flinteo; and
• $183,425.78 in attorneys’ fees recoverable by Flinteo from Wallace.

It is this Amended Judgment that is the subject of the cross appeals in almost every respect.

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Bluebook (online)
143 F.3d 955, 42 Cont. Cas. Fed. 77,324, 1998 U.S. App. LEXIS 14507, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-wallace-v-flintco-inc-ca5-1998.