Vlox, LLC v. Mirzada Transport & Logistics Co.

549 F. App'x 150
CourtCourt of Appeals for the Fourth Circuit
DecidedDecember 17, 2013
Docket20-4299
StatusUnpublished
Cited by1 cases

This text of 549 F. App'x 150 (Vlox, LLC v. Mirzada Transport & Logistics Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vlox, LLC v. Mirzada Transport & Logistics Co., 549 F. App'x 150 (4th Cir. 2013).

Opinion

Affirmed by unpublished PER CURIAM opinion.

Unpublished opinions are not binding precedent in this circuit.

PER CURIAM:

The present appeal stems from a breach of contract dispute between a federal government contractor and one of its subcontractors. Following a five day jury trial, the jury awarded the subcontractor a total of $2,814,034.12, and the district court entered judgment in favor of the subcontractor consistent with the jury’s verdict. On appeal, the federal government contractor challenges numerous rulings by the district court. Having carefully reviewed the materials before us on appeal and the relevant legal authority, we find no basis to disturb the final judgment. Accordingly, we affirm.

I.

On March 15, 2009, the United States Army (the Army) awarded VLOX, LLC (VLOX) 1 a prime contract (the Prime Contract) to provide all resources necessary to provide up to 600 trucks per day for the secure long haul distribution of reconstruction, security, and life support assets throughout the Afghanistan Theater of Operations. 2 On April 25, 2009, VLOX in turn entered into a subcontract (the Subcontract) with Mirzada Transport & Logistics Company (MTC) to perform trucking services under the Prime Contract. VLOX is a United States company and MTC is an Afghan company.

Of relevance to the issues on appeal, Article Five of the Subcontract, entitled “Payment Terms ” provides:

*152 The Prime Contractor agrees to pay the Sub Contractor on a paid as paid basis. All invoices will be submitted no later than by the 30th of each month. Sub Contractor is required to submit invoices to the Prime Contractor for Payment. Daily time sheets and performance certifications signed or otherwise authorized by a designated representative of the Prime Contractor indicating the required work has been accomplished or otherwise achieved [SIC]. Payments will be made to the Sub Contractor in response to mission number(s) invoices.

(J.A. 2690). VLOX refers to the performance certifications mentioned in this paragraph as “ ‘Mission Sheets.’ ” (J.A. 37). The Subcontract required MTC to comply with all laws of the United States and all international agreements.

On December 15, 2009, VLOX terminated the Subcontract. By this time, MTC had run at least 3,200 missions for VLOX under the Subcontract. On November 22, 2011, VLOX filed the present civil action in the United States District Court for the Eastern District of Virginia based upon diversity jurisdiction, given that VLOX is a citizen of Virginia and MTC is a citizen or subject of a foreign state and the matter in controversy exceeds $75,000. See 28 U.S.C. § 1332(a)(2). Counts 1, 5, 6, and 7 of VLOX’s complaint are at issue on appeal.

Count 1 alleged a claim for breach of contract under Virginia common law. Of relevance on appeal, VLOX alleged that MTC breached Article 5 of the Subcontract by failing to submit Mission Sheets to it for 562 specific missions that MTC performed pursuant to the Subcontract. The failure to so submit, VLOX further alleged, prevented VLOX from invoicing the Army for payment of those missions under the Prime Contract, resulting in VLOX losing $1,889,584 in net revenue.

Count 5 is also a claim for breach of contract under Virginia common law. In this count, VLOX alleged that MTC breached the Subcontract by making illegal protection payments to the Taliban in order to secure safe passage of MTC trucks on missions performed under the Subcontract. VLOX sought damages for this claim in an amount no less than $1,000,000.

Count 6 alleged a claim for tortious interference with contractual relations under Virginia common law. In this count, VLOX alleged that MTC tortiously interfered with VLOX’s contractual relations with the Army by failing to submit the required Mission Sheets and by failing to provide VLOX with information to disprove the validity of an alleged quote by MTC’s chief executive officer in the November 14, 2009 edition of the Financial Times of London that “MTC had made security payments to the Taliban.” (J.A. 41). Count 6 further alleged that MTC’s actions were a factor leading to the Army’s determination that VLOX was not eligible to be awarded a follow-on contract to the Prime Contract. VLOX sought damages for this claim in an amount no less than $1,000,000.

Count 7 alleged a claim for wrongful interference with a prospective business relationship under Virginia common law. Specifically, VLOX alleged that MTC wrongfully interfered with VLOX’s prospective business relationship with the Army by exerting improper influence over the Afghanistan Attorney General and the Ministry of the Interior to VLOX’s detriment. VLOX sought damages for this claim in an amount no less than $1,000,000.

MTC alleged two counterclaims under Virginia common law. Of relevance to the present appeal, Counterclaim 1 alleged an *153 unjust enrichment theory. MTC alleged that VLOX was unjustly enriched by MTC’s provision of shipping containers that were necessary to complete trucking missions on VLOX’s behalf and for which MTC was not contractually obligated to provide under the Subcontract.

Of relevance on appeal, Counterclaim 2 alleged breach of contract as follows:

62. Verbal communications between [VLOX] and MTC, together with various documents exchanged and the subsequent course of dealing between the parties, together effectuated a contractual relationship between the parties.
63. This contract was never reduced to an integrated writing; however, the contractual terms can be ascertained from documents exchanged, including pricing sheets, flow-down clauses from the [Prime] [C]ontract, detailed daily reports, party correspondence, and other documents and testimony subject to discovery in this action.
64. Pursuant to this contract, MTC agreed to provide transportation and security services, at negotiated prices, on an as-needed basis to support [VLOX] on its [Prime] [Contract with the U.S. Army.
65. MTC has performed all required services consistent with the agreement of the parties. MTC’s services included thousands of hazardous trucking missions throughout Afghanistan which [VLOX] requested, and the completion of which [VLOX] acknowledged by seeking payment from the U.S. Army.
66. [VLOX], however, breached its obligations under the agreement by failing to pay for services performed by MTC.
67. As a direct and proximate result of [VLOX’s] breach, MTC has sustained damages.
68. MTC is entitled to damages in an amount to be determined at trial, but in no event less than $10,000,000.00, plus interest, costs and fees, including reasonable attorneys’ fees.

(J.A. 69-70) (emphasis added).

Following discovery, the parties filed cross-motions for summary judgment. The district court denied both motions on September 21, 2012.

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Cite This Page — Counsel Stack

Bluebook (online)
549 F. App'x 150, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vlox-llc-v-mirzada-transport-logistics-co-ca4-2013.