On June 13, 2012 a
Motion-Secondary
was filed
involving a dispute between
Aggregate Technologies Inc,
and
Federal Insurance Company,
Fidelity & Deposit Company Of Maryland,
Goldshire Developers Llc,
Granite Construction Incorporated (Doing Business As Houston Rapid,
Houston Rapid Transit Jv,
Kiewit Texas Construction L P (Doing Business As Houston Rapid,
Parsons Transportation Group Inc (Doing Business As Houston Rapid,
Safeco Insurance Company Of America,
Stacy And Witbeck Inc,
Travelers Casualty And Surety Company Of America,
Zurich American Insurance Company,
for BREACH OF CONTRACT
in the District Court of Harris County.
Preview
CAUSE NO. 2012 34382
AGGREGATE TECHNOLOGIES, INC. IN THE DISTRICT COURT OF
HARRIS COUNTY, TEXAS
GOLDSHIRE DEVELOPERS, LLC, §
etal 152nd J UDICIAL DISTRICT
DEFENDANTS’ RESPONSE IN OPPOSITION TO
MOTION FOR ENTRY OF J UDGMENT
Defendants submit that plaintiff is not entitled to entry of judgment for the full
amount it has requested, and in support would show:
No Breach of Contract J udgment for Payment Application No. 8
Defendants agree that, based upon the jury’s verdict (without admitting or co
ceding that the verdict itself was proper), ATI would be entitled to judgment for the
amounts represented by its ayment Applications Nos. 6 and 7 in the amount of
$98,831.65However, for the reasons set forth in Defendants’ Motion to Disregard J ury
Answers and forJ udgment N.O.V. (which is incorporated by reference for all purposes),
ATI is not entitled to judgment on its breach of contract claim for ayment Application
No. 8 because ATI's President, Ronnie W , conclusively admitted that there was no
agreement by Goldshire to pay those amounts. Without an agreement to pay those
amounts, (which exceed the amount of the original agreed contract price) there was no
contract to pay any additional amounts for the additional work done by ATI on Bents 38
and 40. Because there was no contract to pay those amounts, and no jury question was
submi ted that could have attempted to establish the existence of such an agreement,
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ATI is not entitled to judgment for breach of contract for the amounts represented by
Payment pplication No. 8.
No Quantum Meruit J udgment for Payment Application No. 8
ATI is further not entitled to judgment on its quantum meruit claim for Payment
Application No. 8 because the subject matter of that payment application was already
the subject of its express contract with Goldshire. It was undisputed that ATI was obl
gated by its agreement with Goldshire to completely remove Bents 38 and 40, including
the footings. It is fu ther undisputed that the work and associated charges represented
by Pa ment A plic tion No. 8 were all related to costs incurred by ATI in connection
with the remo al of Bents 38 and 40. As such, the subject matter of payment application
No. 8 was aready included within the express contract between ATI and Goldshire.
ment cation No. 8 is nothing more or less than an attempt to recover cost ove
runs by ATI for work it was already required to complete. Even if, as Mr. Wills admitted,
Gol shire did not agree to pay these additional costs, the work was still already required
to be co pleted under the original contract. No quantum meruit claim exists merely b
cause the work to be completed cost ATI more than the original contract price.
No Payment Bond J udgm ent for Payment Application No. 8
Finally, ATI is not entitled to any judgment on its payment bond claim. Payment
bonds are limited only to an undertaking by the sureties to pay the amount of the co
tract price owed to the claimant. The payment bond does not apply to or extend to
amounts not due and owing under the construction contract. ATI admitted that there
was no contract modification or agreement to pay the amount of Payment Application
No. 8, which is undisputedly more than the amount of the origina contract price and the
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amount that the jury determined was a perfected bond claim. The payment bond statute
(or, to be more precise, Chapter 2253 of the Texas Government Code) does not apply
or extend to quantum meruit recoveries as a matter of law. Where there is no basis fora
breach of contract claim to ATI, its quantum meruit/compensable work claim may be e
tered, if at all, only as against Goldshire, and not against the surety defendants on the
payment bond.
Defendants accordingly pray that any judgment in favor of ATI be limited only to
the amounts represented by Payment Applications Nos. 6 and 7; that no judgment be
entere in favor of ATI on the payment bond claim against any of the bond/surety d
fendants; and that any attorneys’ fees, interest, and costs be limited in accordance with
that judgment.
Respectfully submitted,
FFICE ATTE. UBIN
/s/ MattE. Rubin
Matt E. Rubin
State Bar No. 17361620
12 Greenway Plaza, Suite 1100
Houston, TX 77046 1201
Telephone: 713 335 0300
Facsimile: 713 425 4999
Email: mrubin@ mrubinlaw.com
ATTORNEY FOR DEFENDANTS
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Certificate of Service
| hereby certify that on the day of December, 2014, a true and correct
copy of the foregoing was served upon counsel of record by electronic delivery through
the State of Texas e filing system, addressed as follows:
William B. Westcott
William B. Davis
ANDREWS MYERS, P.C.
3900 Essex Lane, Suite 800
Houston, TX 77027
Attorneys for ATI
/s/ MattE. Rubin
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Document Filed Date
December 11, 2014
Case Filing Date
June 13, 2012
Category
BREACH OF CONTRACT
Status
Case On Appeal - Civil
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