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United States v. Blinderman Construction Co.

Citations: 735 F. Supp. 272; 1990 U.S. Dist. LEXIS 5369Docket: No. 89 C 4654

Court: District Court, N.D. Illinois; March 21, 1990; Federal District Court

Narrative Opinion Summary

In this case, the plaintiff, Mid Seven Transportation, filed a motion for summary judgment under the Miller Act against defendants Blinderman Construction and Fidelity and Deposit Company of Maryland, seeking payment for transportation services amounting to $16,576.67. The court evaluated the motion pursuant to Federal Rule of Civil Procedure 56, which permits summary judgment when material facts are undisputed. Defendants contended that discrepancies existed regarding the delivery sites of the transported materials, suggesting some deliveries were not covered under the Miller Act. However, the court found the majority of shipments were indeed intended for the Naval Training Center, undermining the defendants' arguments. The court also dismissed the defense’s claim that prior payments constituted full settlement. Consequently, the court granted summary judgment for Mid Seven, awarding the claimed amount. The court ruled against the award of attorneys' fees, as the Miller Act does not allow such fees absent bad faith, which was not present. Nevertheless, Mid Seven was entitled to prejudgment interest from the date of notice, calculated according to federal law, specifically 28 U.S.C. § 1961(a) and (b). A status conference was scheduled, but defendants’ counsel did not attend, and judgment was rendered in favor of Mid Seven.

Legal Issues Addressed

Attorneys' Fees under the Miller Act

Application: The court denied attorneys' fees to the plaintiff, as the Miller Act does not provide for such fees absent a demonstration of bad faith.

Reasoning: Regarding attorneys' fees, the Miller Act does not provide for such fees unless bad faith is demonstrated, which was not the case here.

Miller Act Coverage

Application: The court found that the transportation services claimed by the plaintiff were covered under the Miller Act, as most shipments were destined for the Naval Training Center.

Reasoning: An examination of the submitted invoices revealed that most shipments were indeed destined for the Naval Training Center, contradicting the defendants' assertions.

Payment and Prior Payments Defense

Application: The court rejected the defendants' argument that prior payments equated to full payment for job site deliveries, finding this defense illogical.

Reasoning: The court found that Mid Seven had been paid for several shipments but noted that the defendants' argument—that prior payments equated to full payment for job site deliveries—lacked logic.

Prejudgment Interest and Federal Law

Application: The court awarded prejudgment interest to the plaintiff from the date of notice to the defendant, applying federal law under 28 U.S.C. § 1961(a) and (b) for interest calculations.

Reasoning: Mid Seven was entitled to prejudgment interest from August 25, 1988, the date of notice to Blinderman, to the judgment date. The court determined that federal law should apply for interest calculations, specifically referencing 28 U.S.C. § 1961(a) and (b) for determining the rate and method of computation.

Summary Judgment under Federal Rule of Civil Procedure 56

Application: The court granted summary judgment in favor of the plaintiff, as there were no genuine disputes regarding material facts about the transportation services provided.

Reasoning: The court reviewed the motion under Federal Rule of Civil Procedure 56, which allows for summary judgment when there are no genuine disputes regarding material facts.