Weigand Construction Co. v. Stephens Fabrication, Inc.

929 N.E.2d 220, 2010 Ind. App. LEXIS 1109, 2010 WL 2546482
CourtIndiana Court of Appeals
DecidedJune 25, 2010
Docket18A02-0910-CV-953
StatusPublished
Cited by3 cases

This text of 929 N.E.2d 220 (Weigand Construction Co. v. Stephens Fabrication, Inc.) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weigand Construction Co. v. Stephens Fabrication, Inc., 929 N.E.2d 220, 2010 Ind. App. LEXIS 1109, 2010 WL 2546482 (Ind. Ct. App. 2010).

Opinion

OPINION

BAKER, Chief Judge.

Appellants-defendants/cross-appellees Weigand Construction Co., Inc. (Weigand), and Ohio Farmers Insurance Co. (the Surety), appeal the trial court's orders denying their motion to dismiss the complaint against them that was filed by ap-pellee-plaintiff/eross-appellant Stephens Fabrication, Inc. (Stephens), denying their summary judgment motion, and granting *223 Stephens's summary judgment motion. Weigand argues that this lawsuit did not survive Stephens's voluntary bankruptcy proceedings and that Stephens's claim for additional compensation was not timely made pursuant to the terms of the parties' contract. Finding that the lawsuit survived bankruptcy but that the claim was not timely made, we affirm in part, reverse in part, and remand with instructions.

FACTS

At some point prior to early 2002, Ball State University (BSU) hired Weigand to be the General Contractor for the Music Instruction Building project (the Project). In early 2002, Weigand sought bids from potential subcontractors to perform strue-tural steel construction. Stephens submitted a bid, and on April 19, 2002, Weigand accepted Stephens's bid. On May 1, 2002, Weigand confirmed its acceptance with a Purchase Order, which served as the contract between Weigand and Stephens.

Among other things, the Purchase Order contained a "flow down provision," which provided, in essence, that the terms and conditions of the Weigand-BSU contract also applied to Stephens. Appellants' App. p. 117. Thus, Section 4.3.2 (the Claim Provision) of the Weigand-BSU contract applied to Stephens, and provided that if a party sought additional payment in addition to what was initially agreed upon,

[cJlaims [for the additional payment] by either party must be initiated within 21 days after occurrence of the event giving rise to such Claim or within 21 days after the claimant first recognizes the condition giving rise to the Claim, whichever is later. Claims must be initiated by written notice to the Architect and the other party.

Id. at 282.

Weigand hired Stephens to fabricate and supply the Project's structural steel. Additionally, Stephens was to engineer the connections between the structural steel members that would form the roof trusses and to create detailed "shop drawings" to be used by Stephens's production personnel in building the trusses to the engineer's dimensions. Stephens was unable to perform the engineering and detailing itself, so it hired two sub-subcontractors-Cecil Wilson (Wilson) and Argo Engineering (Argo)-to meet its contractual obligations to Weigand.

In June 2002, BSU's architect made several changes to the design of the Project's steel trusses. The architect sent revised architectural drawings to Weigand, which sent the drawings to Stephens. Stephens received the revised drawings on June 13, 2002, and sent them to its detailing subcontractor, Wilson. Wilson met with Argo on July 11, 2002, and they discussed the fact that the architect's revisions would require substantial changes to their own calculations. Among other things, they would have to make the connection plates-the heavy steel plates bolted to the intersections of the trusses' structural members-larger. According to Stephens, Wilson and Argo did not communicate these needed revisions to Stephens at that time.

Nine months later, on April 22, 2008, a Stephens employee orally informed a Wei-gand employee that the design changes would cause extra work and expense for Stephens above and beyond that originally contemplated in the Purchase Order. That conversation was the first time Stephens had informed Weigand that its work would cost more than originally contemplated. Stephens did not provide a written claim for the extra work until May 28, 2003. To keep the Project on schedule, Weigand directed Stephens to comply with *224 its contractual obligations and deliver the structural steel trusses as scheduled. Weigand agreed to submit Stephens's claim for extra payment to BSU for resolution while work on the Project progressed, as Weigand was required to do under the terms of its contract with BSU. BSU rejected the claim, determining that it was untimely because it failed to comply with the Claim Provision.

On September 3, 2004, Stephens filed a complaint against Weigand, BSU, 1 and Ohio Farmers Insurance 2 for breach of contract, alleging that it was owed $161,124.61 plus interests, attorney fees, and costs for "extra labor and materials for additional work on the Project." Id. at 107. Two months later, Stephens filed a Voluntary Petition for Relief under Chapter 7 of the U.S. Bankruptey Code. The causes of action against Weigand, its Surety, and BSU were listed as intangible assets of the bankrupt company, which stayed the litigation. On January 4, 2007, the Trustee issued a Final Report, which stated that the claims against Weigand, its Surety, and BSU had been fully administered. Id. at 156. The final bankruptcy decree was entered on May 18, 2007.

On June 8, 2007, Stephens filed a motion for a status conference in the instant litigation. Stephens alleged that its claims had survived the bankruptcy despite the Trustee's filings that represented that the claims had been fully administered. On January 29, 2008, Weigand filed a motion to dismiss the complaint, arguing that because the Trustee had fully administered the causes of action, Stephens no longer had any causes of action in its possession. Stephens responded, attaching an affidavit from the Trustee, who attested that his intent had been to abandon the lawsuit back to Stephens. Id. at 168-72. The Trustee attached a revised Report, which indicated that the lawsuit was now "deemed abandoned" rather than fully administered. Id. at 171. Neither the bank-ruptey court nor Stephens's creditors were given any notice of the change in the asset's classification. On April 9, 2008, the trial court denied Weigand's motion, concluding that the Trustee had "indicate[d] the Claim in question hald] been abandoned back to Stephens, and Stephens is now free to pursue the Claim." Id. at 15. Weigand now appeals that order.

On September 24, 2008, Weigand filed a motion for summary judgment, arguing that Stephens's claim for payment was untimely because it did not comply with the Claim Provision. Stephens responded and filed a cross-motion for summary judgment. Following a hearing, the trial court granted summary judgment in Stephens's favor on January 6, 2009. On July 17, 2009, the trial court held a hearing to determine the amount of Stephens's damages, ultimately awarding $268,179.85 in Stephens's favor. Weigand now appeals the order granting summary judgment in Stephens's favor and the amount of damages. Stephens eross-appeals, arguing that the trial court erred by excluding prejudgment interest during the period before and during the bankruptcy proceeding.

DISCUSSION AND DECISION

I. Effect of Bankruptcy Proceedings

Weigand first argues that this lawsuit did not survive Stephens's bankruptcy *225 proceedings and that the trial court should have granted its motion to dismiss the complaint on this basis.

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929 N.E.2d 220, 2010 Ind. App. LEXIS 1109, 2010 WL 2546482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weigand-construction-co-v-stephens-fabrication-inc-indctapp-2010.