District court rules against Team Contractors in renovation contract dispute

By Tomas Kassahun | Apr 30, 2019

NEW ORLEANS – The U.S. District Court Eastern District of Louisiana has ruled against Team Contractors LLC in a case involving contracts made in connection with the construction and renovation of a property at 1250 Poydras St.

In the March 20 ruling, the district court said Team Contractors didn’t bring a claim for breach of an implied warranty in its complaint against Waypoint Nola LLC.

“The court denies Team’s motion for summary judgment on the basis that Waypoint breach an implied warranty,” the opinion stated.

The district court said Waypoint NOLA entered into a contract in 2014 with Development Construction Management LLC, represented by Steve Laski, under which Laski agreed to provide project management services for the project.


The US District Court Eastern District of Louisiana has ruled against Team Contractors, LLC, in a lawsuit involving contracts made in connection with the construction and renovation of a property at 1250 Poydras St. in New Orleans.   pexels.com

“On Sept. 24, 2014, Team and Waypoint entered into a construction contract, under which Team became the general contractor for the project,” the opinion stated.

Waypoint also entered into a contract with HC Architecture Inc., under which HCA agreed to serve as the project’s architect, according to the opinion. HCA, in turn, subcontracted the mechanical, electrical, and plumbing design work to KLG LLC. According to the opinion, Team Contractors filed a complaint against HCA, KLG and Waypoint, alleging there were errors in the plans and specifications provided by Waypoint for the mechanical, electrical and plumbing systems relating to the construction project, which were prepared by KLG.

Team Contractors also alleged Waypoint didn’t compensate it for the additional costs it incurred as a result of mechanical and electric plan modifications, the district court said. 

“Team brought a breach of contract claim against Waypoint, alleging Waypoint’s failure to compensate Team breached the construction contract,” the opinion said. “Team also brought negligence claims against Waypoint, HCA and KLG.” 

In response to Waypoint opposing Team Contractors’ motion for summary judgement, Team does not bring a cause of action based on Waypoint’s alleged breach of an implied warranty. “The only cause of action for breach of contract is a claim that Waypoint withheld a ‘portion of the contract sum past the date of substantial completion’ and that it failed to compensate Team for ‘labor, overhead and supervision’ costs,” the opinion said. 

According to the ruling, the Federal Rules of Civil Procedure state that a party moving for summary judgment must “identify each claim or defense — or the part of each claim or defense — on which summary judgment is sought.”

“Team has not identified a claim asserted in its complaint for Waypoint’s breach of an implied warranty by providing Team with defective designs," the opinion said. "The court will not permit Team to expand the pleadings on the eve of trail to assert a new cause of action. As a result, the court denies Team’s motion for summary judgment in its favor that Waypoint breached an implied warranty.”

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