Welded Construction, L.P. v. The Williams Companies, Inc.

United States Bankruptcy Court, D. Delaware·Decided July 28, 2023·No. 19-50194·Unknown

Opinion

IN THE UNITED STATES BANKRUPTCY COURT FOR THE DISTRICT OF DELAWARE In re: Chapter 11 WELDED CONSTRUCTION, L.P., et al., Case No, 18-12378 (LSS) Debtors. ‘Gointly Administered)

WELDED CONSTRUCTION, L.P., Plaintiff, Adv. Pro. No. 19-50194 (LSS) □ y. Re: Docket No. 300 THE WILLIAMS COMPANIES, INC., WILLIAMS PARTNERS OPERATING LLC, and TRANSCONTINENTAL GAS PIPE LINE COMPANY, LLC., Defendants.

MEMORANDUM This Memorandum is for the benefit of plaintiff Welded Construction, L.P. (“Welded”) and defendant Transcontinental Gas Pipe Line Company, LLC (“Transco”) in advance of a trial scheduled to begin on August 22, 2023.' The dispute surrounds the construction of certain segments of a pipeline and amounts each party claims are owed by the other. The contract at issue (“Contract”) is that certain construction contract by and

1 Defendants Williams Companies, Inc. and Williams Partners Operating LLC are not the subject of the briefing or the trial.

between Transco and Welded agreed to and accepted effective as of August 10, 2016, including exhibits and as amended.” The parties filed cross motions for partial summary judgment. This Memorandum addresses Transco’s Motion.’ In support of its motion, Transco filed an Opening Brief* together with the Burwood Declaration’ and the Sztroin Declaration.® Welded filed its Answering Brief’ together with the Neiburg Declaration.* Transco then filed its Reply Brief? together with the Ewald Declaration.”

? Portions of the Contract were included as exhibits in the documentation supporting each party’s respective briefs on summary judgment. I also requested that an entire copy of the Contract be filed on the docket, which was done. Adv. Pro. Dkt. No. 386. There is some disagreement whether certain Pre-Job Conference Agreements are part of the Contract. I need not resolve the disagreement for purposes of this Memorandum. 3 Defendant Transcontinental Gas Pipe Line Company, LLC’s Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 300), 4 Defendant Transcontinental Gas Pipe Line Company, LLC’s Memorandum of Law in Support of Its Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 301). 5 Declaration of Jonathan Burwood in Support of Defendant’s Motion for Partial Summary Judgment (Ady. Pro. Dkt. No. 302). ® Declaration of David Sztroin in Support of Defendant’s Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 303). 7 Welded’s Response to Defendant Transcontinental Gas Pipe Line Company, LLC’s Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 314). 8 Declaration of Michael S. Neiburg in Support of Welded’s Response to Defendant’s Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 315). Defendant Transcontinental Gas Pipe Line Company, LLC’s Reply in Support of Its Motion for Partial Summary Judgment Declaration (Adv. Pro. Dkt. No. 318). © Declaration of Shelly L. Ewald in Support of Defendant Transcontinental Gas Pipe Line Company, LLC’s Reply to Welded Construction L.P.’s Opposition to Transcontinental Gas Pipe Line Company, LLC’s Motion for Partial Summary Judgment (Adv. Pro. Dkt. No. 319).

Since I am writing solely for the parties, | assume familiarity with the arguments made in the briefs and the supporting documentation, all of which has been reviewed. I also assume familiarity with the previous decisions in this adversary proceeding. Because there is still much to do prior to trial in this matter, this Memorandum is not as formal as it might otherwise be and may, at times, speak in shorthand. Nonetheless, I have confidence that the parties will understand the decisions and this Memorandum will, hopefully, provide some guidance for trial. Bankruptcy Jurisdiction Jurisdiction exists over this adversary proceeding pursuant to 28 U.S.C, § 1334. The parties agree that the claims between Welded and Transco which are the subject of this motion are core proceedings.'! Accordingly, I may enter a final judgment in this matter. Legal Standard A “court shall grant summary judgment if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law.”” The movant bears the initial burden of demonstrating that no material facts are in dispute by _

citing the record, including documents, affidavits or declarations, admissions and interrogatory answers.’ A fact is material if it could affect the outcome of the decision.“

Joint Final Pretrial Order at 4 (Adv. Pro. Dkt. No. 390-1). 2 Ted. R. Civ. P. 56 as made applicable to bankruptcy proceedings by Fed. R. Bankr. P. 7056. 3° In re Abeinsa Holding, Inc., 645 B.R. 680, 685 (Bankr. D. Del. 2022). In re United Tax Grp., LLC, No. 14-10486 (LSS), 2021 WL 6138214, at *2 (Bankr. D. Del. Sept. 2, 2021).

If the movant provides sufficient proof to support its motion, the burden shifts to the nonmoving party to point out the existence of genuine issues of material fact.'° The party asserting that genuine issues of material fact exist must support its contention by competent evidence “upon which a reasonable trier of fact could return a verdict in favor of the nonmoving party.”?® Choice of Law The bulk of the legal briefing in the Opening Brief is devoted to a discussion of what state law should apply to the Contract dispute with a particular emphasis on whether Welded can bring claims under Pennsylvania’s Contractor and Subcontractor Payment Act (“CASPA”). Boiled down, Transco argues that Welded cannot demonstrate that the choice of law provision in the Contract (which provides that Oklahoma law applies) is unenforceable as “Oklahoma has a significant nexus to the parties’ transaction because Oklahoma is the principal place of business for i) Transco; ii) its [sic] Transco’s sole parent company and co-Defendant, Williams Partners; and iii) Williams Partners’ sole parent company and co-Defendant Williams Company.””” Setting aside (for purposes of this Memorandum) the two previous decisions of this Court, Transco’s request for summary judgment is denied because Transco’s own

'S Td, at *3. 16 Id. 17 Opening Brief 34-5, Transco also argues that Judge Gross upheld the choice of law provision “finding that ‘all three Defendants have their principal place of business in Oklahoma.” Jd. at 35. A review of Judge Gross’s decision shows that, in the context of ruling on Transco’s motion to transfer venue of this case to Oklahoma, Judge Gross cited to Transco’s motion for support of the quoted statement. It is likely Judge Gross simply assumed the truth of the representations in the motion for purposes of the factor he was evaluating (the convenience of the parties as indicated by their physical and financial condition) as, notwithstanding, he concluded that the factor favored keeping the case in Delaware.

submissions show, at the very least, a disputed fact regarding Transco’s principal place of business.'® Notwithstanding the Sztroin Declaration, the Contract identifies Transco’s principal place of business as Houston Texas.’” Indeed, the address is part of the defined. term “Company” used throughout the Contract.” Further, notices under the Contract are to be given to Transco at the same address in Houston.” While Transco argues in its Reply □ Brief that Welded (and Judge Sontchi’s prior decision) focus too much on Transco’s principal place of business, it is Transco that has made what should be a simple knowable fact into a credibility issue (assuming the Contract, itself, does not settle the matter). Transco’s other arguments are similarly unavailing. ‘Transco argues that even if CASPA applies, Welded is not entitled to judgment because Transco properly withheld.

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Welded Construction, L.P. v. The Williams Companies, Inc., (Del. 2023).

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Related

§ 1334
28 U.S.C. § 1334