KANSAS CITY – A subcontractor was only granted some of its requests for summary judgment in a breach of contract dispute with an insurance company.
Judge Stephen R. Bough of the U.S. District Court for the Western District of Missouri in the Southern Division on May 13 granted defendant ARC Steel summary judgment on the counts of unjust enrichment, equitable contribution, equitable subrogration and negligent misrepresentation, but did not grant summary judgment on the breach of contract and negligence claims.
Plaintiff Steadfast Insurance Co. insured Killian Construction Co., a general contractor in a hotel project In Colorado. Killian subcontracted defendant ARC Steel for the project.
U.S. District Court Judge Stephen R. Bough
On May 20, 2013, Killian told ARC to complete its part of the contract as soon as possible, giving it until June 3, 2013, to do so. The ruling states Killian was already considering filing an insurance claim against ARC, saying that it defaulted under the subcontract.
Steadfast alleged it paid Killian a minimum of $989,055 for Kilian’s efforts to complete the project after ARC allegedly breached the contract.
Steadfast sued ARC over allegations of breach of contract, negligence, negligent misrepresentation, equitable subrogation, equitable contribution and unjust enrichment.
Bough denied summary judgment for the breach of contract claim, pointing out that Steadfast proved via a written notice enough evidence that would create an issue proper for trial. It also denied summary judgment on the negligence claim, stating the economic loss doctrine doesn’t preempt the negligence allegation as the defendant alleged. The ruling also noted Steadfast’s negligence claim has more to do with damage ARC allegedly caused when it installed steel, and less with any defect the actual steel possibly had.
As for ARC’s motion for partial summary judgment, ARC said it doesn’t owe Steadfast $301,589.50 that Steadfast paid Killian to reimburse it for payments to a consulting company. Bough said ARC isn’t owed partial summary judgment on this count either.