Filed: May 26, 2005
Latest Update: Mar. 28, 2017
Summary: UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT No. 04-2098 UNITED STATES OF AMERICA, for the use and benefit of East Coast Contracting, Incorporated, a Maryland corporation, Plaintiff - Appellant, versus UNITED STATES FIDELITY AND GUARANTY COMPANY, Defendant - Appellee. Appeal from the United States District Court for the District of Maryland, at Baltimore. Catherine C. Blake, District Judge. (CA- 03-3200-1-CCB) Submitted: April 25, 2005 Decided: May 26, 2005 Before MICHAEL, T
Summary: UNPUBLISHED UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT No. 04-2098 UNITED STATES OF AMERICA, for the use and benefit of East Coast Contracting, Incorporated, a Maryland corporation, Plaintiff - Appellant, versus UNITED STATES FIDELITY AND GUARANTY COMPANY, Defendant - Appellee. Appeal from the United States District Court for the District of Maryland, at Baltimore. Catherine C. Blake, District Judge. (CA- 03-3200-1-CCB) Submitted: April 25, 2005 Decided: May 26, 2005 Before MICHAEL, TR..
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UNPUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 04-2098
UNITED STATES OF AMERICA, for the use and
benefit of East Coast Contracting,
Incorporated, a Maryland corporation,
Plaintiff - Appellant,
versus
UNITED STATES FIDELITY AND GUARANTY COMPANY,
Defendant - Appellee.
Appeal from the United States District Court for the District of
Maryland, at Baltimore. Catherine C. Blake, District Judge. (CA-
03-3200-1-CCB)
Submitted: April 25, 2005 Decided: May 26, 2005
Before MICHAEL, TRAXLER, and KING, Circuit Judges.
Affirmed by unpublished per curiam opinion.
Thomas A. Baker, THOMAS A. BAKER, P.A., Baltimore, Maryland, for
Appellant. Cynthia E. Rodgers-Waire, Adam Cizek, WHITEFORD, TAYLOR
& PRESTON, L.L.P., Baltimore, Maryland, for Appellee.
Unpublished opinions are not binding precedent in this circuit.
See Local Rule 36(c).
PER CURIAM:
United States Fidelity and Guaranty Company (USF&G) acted
as surety for performance and payment of an East Coast Contracting
(ECC) subcontract to perform installation of concrete at Andrews
Air Force Base in Maryland. ECC completed its work in July 2002
and in September submitted a claim of $145,397.08 to USF&G. In
January 2003, USF&G apologized that the bankruptcy of the principal
had delayed its response and asked for ECC’s patience as USF&G
reviewed claims. In April 2003, USF&G requested additional
information from ECC, which ECC provided in May. In August 2003,
thirteen months after ECC completed its work on the project, USF&G
denied ECC’s claim as untimely because the one year statute of
limitations of the Miller Act, 40 U.S.C.A. § 3133(b)(4) (West
2005), had elapsed and ECC had not filed an action. The district
court granted USF&G’s motion for summary judgment, finding no
material issue of fact existed that ECC filed an untimely action
and that no equitable estoppel existed. ECC timely appealed,
claiming that equitable estoppel applied.
This court reviews de novo a district court’s grant of
summary judgment. Higgins v. E.I. DuPont de Nemours & Co.,
863
F.2d 1162, 1167 (4th Cir. 1988). Summary judgment may only be
granted when “there is no genuine issue as to any material fact and
the moving party is entitled to a judgment as a matter of law.”
Fed. R. Civ. P. 56(c). For contracts under the Miller Act, this
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court has applied equitable estoppel “to aid a party who, in good
faith, has relied, to his detriment, upon the representations of
another.” United States ex rel. Humble Oil & Refining Co. v.
Fidelity and Casualty Co. of New York,
402 F.2d 893, 897 (4th Cir.
1968). This court analyzes the totality of the circumstances of a
Miller Act contract to find if “there has been a representation,
reliance, change of position and detriment.” Id. at 898.
ECC argued that it reasonably relied on USF&G’s promise
to investigate its claim because ECC knew the investigation would
result in USF&G’s payment of the debt. The surety in Humble Oil
agreed to pay “properly proven” claims; ECC argues that this
promise is effectively the same as the promise to investigate.
Humble Oil, 402 F.2d at 896. USF&G’s promise to investigate is not
the same as the surety’s promise in Humble Oil because in that case
the surety acknowledged it would pay and was engaged in lengthy
negotiations over which claims to pay. USF&G never acknowledged it
would pay anything, and the minimal contact between ECC and USF&G
pales in comparison to the negotiations in Humble Oil. ECC could
not reasonably rely on USF&G’s promise to investigate to satisfy
Humble Oil’s test for equitable estoppel.
Moreover, in USF&G’s letters to ECC, USF&G expressly
reserved the statute of limitations defense. Unlike in Humble Oil,
ECC did not agree to forbear a suit while negotiating the claim.
Humble Oil, 402 F.2d at 897. ECC hinted at possible litigation and
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knew time was running out to file an action. ECC cannot claim it
detrimentally relied on USF&G’s actions when it had no impediment
to timely filing this action. Based on the totality of the
circumstances, the district court correctly ruled that USF&G was
not estopped from asserting a statute of limitations defense.
Accordingly, we affirm the district court’s order. We
dispense with oral argument because the facts and legal contentions
are adequately presented in the materials before the court and
argument would not aid the decisional process.
AFFIRMED
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