CALLIE V. S. GRANADE, District Judge.
This matter is before the court on plaintiff's motion for summary judgment (Docs. 64, 65), the motion of Don Brady Construction Company, Inc. ("Don Brady Construction") to strike the affidavit of Mike Dill (Doc. 80), Don Brady Construction's opposition to summary judgment (Doc. 81), and plaintiff's reply (Doc. 83). For reasons which will be further explained below, the court finds that Mike Dill's affidavit is admissible and may be considered by the court on summary judgment. The court further finds that plaintiff has sufficiently supported its claims in its motion for summary judgment and that Don Brady Construction has failed to raise a genuine issue of material fact. Accordingly, plaintiff's motion for summary judgment will be granted.
The defendants in this case each executed a General Application and Agreement of Indemnity ("GAAI") in favor of plaintiff in which the defendants promised to indemnify plaintiff against any and all liability for losses and expenses which plaintiff may sustain or incur by reason of having issued any bonds on behalf of Don Brady Construction or for the failure of the defendants to perform or comply with the conditions of the GAAI, or in enforcing any of the conditions of the GAAI. (Doc. 65-1, ¶ 3; Doc. 65-2, p. 1, ¶ 1). Plaintiff issued a series of performance and payment bonds on behalf of Don Brady Construction on various federal construction projects. (Doc. 65-1, ¶ 2). Pursuant to the terms of the GAAI, the defendants also agreed to collateralize any reserve established by plaintiff in anticipation of any loss under any bond issued on behalf of Don Brady Construction. Specifically, the defendants agreed as follows:
(Doc. 65-2, ¶ 2). The defendants further agreed, upon the occurrence of an event of default as defined by the GAAI, to assign, transfer and convey to plaintiff all monies due or to become due to Don Brady Construction under any bonded contract, including but not limited to progress payments, deferred payments, retained percentages and compensation for extra work. (Doc. 65-2, ¶ 5).
Plaintiff reports that it has received notice of claims for non-payment from laborers and material suppliers of Don Brady Construction on the above-referenced projects. Plaintiff believes that one or more of the claims may be meritorious and plaintiff intends to discharge any obligations which it may owe to the claimants in accordance with the requirements of its bonds and applicable law. (Doc. 65-1, ¶ 4). According to an affidavit sworn to by Mike Dill as Assistant Vice President for plaintiff, as of January 9, 2012, plaintiff has incurred losses in the amount of $523,683.82 in the performance of its obligations under the aforementioned bonds and has incurred legal, consulting and traveling expenses in the amount of $308,482.31. (Doc. 65-1, ¶ 5). Thus, plaintiff has reportedly suffered a total loss of $832,166.13. Additionally, Mr. Dill, declares that based upon its investigation, plaintiff has established a remaining loss and expenses reserve in the amount of $872,499.33 in anticipation of further losses under the aforesaid bonds. (Doc. 65-1, ¶ 5).
Mr. Dill also reports that, in accordance with the provisions of the GAAI, it has previously requested that Don Brady Construction deposit collateral, money, or other security in the amount of its loss reserve pending final disposition of the claims and the Don Brady Construction has failed to honor this request and has otherwise refused to perform its obligations under the GAAI. (Doc. 65-1, ¶ 7).
Don Brady Construction moves to strike the affidavit of Mike Dill which was submitted by plaintiff in support of its motion for summary judgment. Don Brady Construction contends that Mr. Dill's attestation to the amounts of losses and anticipated losses are conclusory statements without any supporting documentation and of which he has no personal knowledge. As such, Don Brady Construction argues that the affidavit is inadmissible. However, as plaintiff points out, Mr. Dill's affidavit states that he has personal knowledge of the matters and explains that he has been "primarily responsible for the administration of various claims which have arisen under bonds issued by Mid-Continent on behalf of Don Brady Construction Company, Inc." (Doc. 65-1, ¶ 1). The amounts attested do not appear to be speculative or conjectural as Don Brady Construction contends, but are reportedly based on Mr. Dill's administration of the claims made against the performance bonds issued pursuant to the GAAI. The court notes that Don Brady Construction has not attacked Mr. Dill's qualifications or submitted any evidence or reason for the court to questioned his veracity. There is no allegation that the affidavit is a fraud.
Moreover, "[a]s a matter of law, `[P]ersonal knowledge can come from review of the contents of [business] files and records.'"
Federal Rule of Civil Procedure 56(c) provides that summary judgment shall be granted: "if the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to judgment as a matter of law." The trial court's function is not "to weigh the evidence and determine the truth of the matter but to determine whether there is a genuine issue for trial."
The basic issue before the court on a motion for summary judgment is "whether the evidence presents a sufficient disagreement to require submission to a jury or whether it is so one-sided that one party must prevail as a matter of law."
Once the movant satisfies his initial burden under Rule 56(c), the non-moving party "must make a sufficient showing to establish the existence of each essential element to that party's case, and on which that party will bear the burden of proof at trial."
Don Brady Construction's sole basis for opposing summary judgment is its contention that plaintiff has failed to support its motion with admissible evidence regarding the amount due under the GAAI. Don Brady Construction disputes the admissibility of Mr. Dill's affidavit and argues that facts should be construed in its favor and that a factual dispute is genuine if a reasonable jury could return a verdict for the non-moving party. However, the court found above that Mr. Dill's affidavit was admissible and could be considered on summary judgment. A copy of the GAAI was also submitted as support for plaintiff's summary judgment motion. The affidavit from an officer of the plaintiff company attests to the existence of the GAAI, to the relevant terms, to Don Brady Construction's failure to perform its obligations and to the amounts owed under the GAAI. Don Brady Construction has submitted nothing to undermine those assertions, and the court is aware of no independent reason to doubt the veracity of Mr. Dill's sworn statements. Don Brady Construction has completely failed to provide "specific facts showing that there is a genuine issue for trial."
Don Brady Construction does not contend that it did not enter into the GAAI, or that it is not in breach of the GAAI, nor has it alleged that the amounts due and owing, set forth in the affidavit and alleged in the motion for summary judgment, are incorrect. Put another way, there is no evidence (admissible or otherwise) tending to show that the amount due is anything other than the amount specified in plaintiff's motion for summary judgment and supported by Mr. Dill's affidavit. Don Brady Construction's opposition does not demonstrate fraud or show why any of the alleged facts are false or inaccurate. Accordingly, the court finds that summary judgment is due to be granted in favor of plaintiff.
For the reasons stated above, the motion of Don Brady Construction Company, Inc. to strike the affidavit of Mike Dill (Doc. 80), is
The court notes that the summary judgment motion is directed at Don Brady Construction Company, Inc. only and that claims remain against the other named defendants in this case. However, the case is stayed as to four of the individual defendants, Elizabeth Brady Lindley, Robert Lindley, Donald Brady and John Collins who have all filed bankruptcy. (Docs. 22, 23, 25, 40, 41). There is one individual defendant, Linda Brady, against whom claims remain active. However, Linda Brady appeared
The court finds that there is no just reason for delay in entering judgment against Don Brady Construction, Inc. and accordingly, the court will enter judgment against Don Brady Construction, Inc. by separate order.
However, this case is currently set for pretrial on May 14, 2012, and for trial in June 2012 and active claims remain against Linda Brady.