Weitz Co. LLC v. MacKenzie House, LLC

665 F.3d 970, 2012 WL 18018
CourtCourt of Appeals for the Eighth Circuit
DecidedJanuary 5, 2012
Docket10-3713
StatusPublished
Cited by33 cases

This text of 665 F.3d 970 (Weitz Co. LLC v. MacKenzie House, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Weitz Co. LLC v. MacKenzie House, LLC, 665 F.3d 970, 2012 WL 18018 (8th Cir. 2012).

Opinion

665 F.3d 970 (2012)

The WEITZ COMPANY LLC, Appellant,
v.
MacKENZIE HOUSE, LLC; MH Metropolitan, LLC; Arrowhead Contracting, Inc.; Concorde Construction Co., Inc., Appellees.

No. 10-3713.

United States Court of Appeals, Eighth Circuit.

Submitted: September 20, 2011.
Filed: January 5, 2012.

*973 Andrew M. DeMarea, argued, Overland Park, KS, William E. Quirk, Heber O. Gonzalez, on the brief, Kansas City, MO, for Appellant.

Robin K. Carlson, argued, Michael E. Callahan, on the brief, Kansas City, MO, for Arrowhead Contracting.

James Scott Kreamer, argued, Dylan L. Murray, on the brief, Kansas City, MO, for MacKenzie House and MH Metropolitan.

Barry L. Pickens, on the brief, Kansas City, MO, for Concorde Construction Co., Inc.

Before MELLOY, SMITH, and BENTON, Circuit Judges.

BENTON, Circuit Judge.

The Weitz Company, LLC sued MacKenzie House, LLC and MH Metropolitan, LLC for breach of a construction contract. Arrowhead Contracting, Inc. and Concorde Co., Inc. are third-party defendants. MH Metropolitan counterclaimed for breach of the same contract, seeking liquidated damages and the cost to complete the project. Arrowhead also counterclaimed. The jury returned a verdict of $4,991,970.87 for MH Metropolitan, of $556,110 for Arrowhead, and for Concorde on Weitz's claim. The district court[1] denied post-judgment motions. Weitz appeals. Jurisdiction being proper under 28 U.S.C. § 1291, this court affirms.[2]

I.

MacKenzie House was the developer of a multi-building apartment project known as the Metropolitan Apartments. MacKenzie was also the managing member of MH Metropolitan, the owner of the Apartments. MH Metropolitan hired Weitz as the general contractor. Weitz initially agreed to complete the project within 458 days for a maximum price of $13,498,006. The time for completion was ultimately extended to 507 days, with the maximum price increased to $14,401,609. Weitz subcontracted with Arrowhead and Concorde, among others.

Work on the Apartments was delayed. Weitz attributes the delays to its subcontractors. MH Metropolitan blames Weitz, asserting several material breaches, including failing to provide required lien waivers, allowing liens to be filed against the project, providing poor quality construction, and falsifying a pay application. MH Metropolitan contends it exercised its contractual right to withhold payment on two of Weitz's applications. Weitz stopped work on December 26, 2006. By then, the first Building of the project was four months late, and the entire project two months late. On January 18, 2007, MH Metropolitan terminated Weitz for cause, finishing the project without Weitz.

The next month, Weitz sued MacKenzie House and MH Metropolitan for the unpaid contract balances. MH Metropolitan counterclaimed for breach of contract, seeking liquidated damages and the cost to complete. According to MH Metropolitan, Weitz's mismanagement was cause to stop payment and cancel the contract. Weitz made third-party claims against Arrowhead and Concorde for their allegedly defective *974 work, the cost to complete their work, and the delays they allegedly caused. Arrowhead counterclaimed for amounts due under its subcontract, arguing Weitz terminated it improperly.

The jury awarded MH Metropolitan liquidated damages of $3,022,520 due to project delay, and $1,969,450.87 for the cost of completion. The jury also awarded Arrowhead $556,110, and found for Concorde. The district court denied post-judgment motions, entering judgment on the jury's verdict. Weitz appeals.

II.

Weitz contends that the district court erred as a matter of law in six ways by: not granting judgment as a matter of law against MH Metropolitan; excluding evidence of two other construction projects involving the parties; miscalculating the liquidated damages and completion costs; declining to enter judgment on Weitz's breach-of-contract claims against Arrowhead; not entering a default judgment against Concorde for failing to appear at trial; and ruling that MacKenzie House could not be vicariously liable for the acts of MH Metropolitan.

A.

Weitz argues that the district court erred in failing to grant it judgment as a matter of law on MH Metropolitan's breach-of-contract claim.

This court reviews de novo a denial of a motion for judgment as a matter of law. Chalfant v. Titan Distrib., Inc., 475 F.3d 982, 988 (8th Cir.2007). Judgment as a matter of law is granted if "a party has been fully heard on an issue and there is no legally sufficient evidentiary basis for a reasonable jury to find for that party on that issue." Fed.R.Civ.P. 50(a)(1). This court makes all reasonable inferences in favor of the nonmoving party and views the facts most favorably to that party. Chalfant, 475 F.3d at 988.

During the twelve-day trial, MH Metropolitan presented evidence that Weitz committed several material breaches—failing to provide the required lien waivers, allowing liens to be filed against the project, causing substantial delays in the project, completing poor quality construction, and falsifying a pay application. MH Metropolitan submitted testimony and videos showing Weitz's poor quality construction. The jury also heard that Weitz could not properly prepare, update, or follow its schedules, which contributed to delaying the project. The project architect concluded that Weitz breached the contract in at least these respects. The evidence at trial also established other breaches. As a result, MH Metropolitan exercised the contractual right to withhold payment and terminate Weitz for cause. As the jury instructions noted, to recover for breach of contract, a party must show its own substantial compliance with the contract. Brockman v. Soltysiak, 49 S.W.3d 740, 745 (Mo.App.2001). Weitz alleges that it complied with the contract, but whether a contract has been substantially performed depends on the facts and circumstances of the particular case. In re Estate of English, 691 S.W.2d 485, 489 (Mo.App.1985). The jury as fact finder resolved this issue against Weitz. See Browning v. President Riverboat Casino-Missouri, Inc., 139 F.3d 631, 634 (8th Cir. 1998) ("Appellate review of a jury verdict is extremely deferential"). There was a legally sufficient evidentiary basis for the jury's verdict. See 8th Cir. R. 47B.

B.

Weitz maintains that the district court incorrectly excluded evidence of two *975 other construction projects—one ending in litigation[3]—involving the parties.

This court respects the district court's "`wide discretion in admitting and excluding evidence, and its decision will not be disturbed unless there is a clear and prejudicial abuse of discretion.'" McPheeters v. Black & Veatch Corp., 427 F.3d 1095, 1101 (8th Cir.2005) (citation omitted).

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665 F.3d 970, 2012 WL 18018, Counsel Stack Legal Research, https://law.counselstack.com/opinion/weitz-co-llc-v-mackenzie-house-llc-ca8-2012.