SARAH S. VANCE, District Judge.
Before the Court is the motion of FEDCON Joint Venture, David Boland, Inc., JT Construction Enterprise Corporation, and Western Surety Company to stay pending the completion of contractual dispute resolution procedures.
This dispute arises out of a construction contract between the United States, by and through the US Army Corps of Engineers (USACE), and defendant FEDCON, a joint venture consisting of David Boland, Inc. and JT Construction.
On or about January 22, 2014, GLF Construction entered into a subcontract with FEDCON to furnish labor, materials, and services on the project and complete a portion of FEDCON's scope of work under the Prime Contract for the agreed price of $10,517,859.50.
On July 20, 2016, GLF Construction filed this Miller Act lawsuit alleging that FEDCON breached its subcontract with GLF Construction.
The Court has "broad discretion to stay proceedings as an incident to its power to control its own docket." Clinton v. Jones, 520 U.S. 681, 706 (1997) (citation omitted); see also United States v. Colomb, 419 F.3d 292, 299 (5th Cir. 2005); Ali v. Quarterman, 607 F.3d 1046, 1049 (5th Cir. 2010) (recognizing that "district courts have inherent authority to control their dockets"). Further, in the decision of whether a stay should be granted, the Court is guided by the factors of judicial economy and convenience for the Court, for counsel, and for the parties. See Landis v. N. Am. Co., 299 U.S. 248, 254 (1936). How this "can best be done calls for the exercise of judgment, which must weigh competing interests and maintain an even balance." In re Beebe, 56 F.3d 1384, 1995 WL 337666, at *2 (5th Cir. 1995) (quoting Landis, 299 U.S. at 254-55); see also Kansas City So. R. Co. v. United States, 282 U.S. 760, 763 (1931).
In their motion to stay, defendants argue that the subcontract between FEDCON and GLF Construction explicitly provides for a stay of all litigation against FEDCON and Western Surety in Paragraph 23.
Paragraph 13, in turn, explains the applicable dispute resolution provisions. It reads:
Paragraph 13A. Instead, it argues that Paragraph 13A is not applicable because none of its claims against FEDCON "relate[s] to claims for which the Owner, the Corps of Engineers, may be responsible."
GLF Construction's claims against defendants arise out of defendants' alleged failure to construct a temporary access road and two temporary work platforms.
This finding is buttressed by other court decisions staying similar Miller Act proceedings based on either similar or identical language covering stays in the subcontract. For example, in United States v. David Boland, Inc., Target Construction, a subcontractor, sued David Boland, Inc. under the Miller Act, as well as for breach of contract. Boland and the surety moved to stay the case based the language in its subcontract with Target, language identical to the subcontract at issue here. No. 11-2813, 2014 WL 345293, at *1-2 (E.D. La. Jan. 30, 2014). Relying on the language in Paragraph 13A and 23 of the subcontract, the court stayed the matter because "these provisions are clear and unambiguous and must be enforced." Id. at 2. Other courts stayed Miller Act claims in similar situations with similar contract language at issue. See, e.g, Gabriel Fuentes Jr. Const. Co. v. Carter Concrete Structures, Inc., No. 14-1473, 2014 WL 7046519, at *5-7 (D.P.R. Dec. 12, 2014) (granting stay of Miller Act proceedings between general contractor and subcontractor based on stay provision in subcontract); Bhate Envtl., 2016 WL 544406, at *3 (same); see also United States v. Balfour-Walton, No. 16-2484, 2016 WL 7229269, at *2-4 (D. Kan. Dec. 14, 2016) (vacating Magistrate Judge's order denying request for stay in contractor-subcontract Miller Act dispute because Magistrate Judge did not properly consider language in subcontract when deciding if stay was appropriate).
Further, the Court finds that judicial economy will be served, and that parties will not be unduly prejudiced, by a stay. In terms of judicial economy, the use of the contract dispute resolution procedure may resolve all or part of the dispute, making further proceedings limited or unnecessary. See Bhate Envtl., 2016 WL 544406, at *4 (finding that stay is supported by judicial economy). In terms of prejudice, while completion of the dispute resolution procedure will undoubtedly delay this matter, the delay was a reasonably foreseeable event given the language of the subcontract, and it does not rise to a level sufficient to deny the stay. See id.; Gabriel Fuentes, 2014 WL 7046519, at *6 (rejecting argument of prejudice based on delay). Further, if the dispute resolution procedure does not resolve GLF Construction's claims, its Miller Act claims will not be barred or waived. See, e.g., United States, for & on behalf of Portland Const. Co. v. Weiss Pollution Control Corp., 532 F.2d 1009, 1012 (5th Cir. 1976); United States v. Dick/Morganti, No. 07-2564, 2007 WL 3231717, at *3-4 (N.D. Cal. Oct. 30, 2007) (noting that stay pending contractual dispute resolution procedure will not waive subcontractors' right to bring subsequent Miller Act claim).
Based on the language in the subcontract and the above caselaw, the Court grants defendants' motion to stay the proceedings pending the completion of the dispute resolution procedure in Paragraph 13A.
For the foregoing reasons, defendants' motion to stay is GRANTED pending the completion of the contractual dispute resolution procedure. This matter is administratively closed pending the stay.