l & w supply corporation v. pipeline & industrial group, inc. et al complaint

7/28/2019 L & W SUPPLY CORPORATION v. PIPELINE & INDUSTRIAL GROUP, INC. et al Complaint

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UNITED STATES DISTR ICT COURTEASTERN DISTRICT OF VIRGIN IA

Nor fo lk Div is ion

L&W SUPPLY CORPORATION d/b/aBUILDING SPECIALTIES,a Delaware CorporationPlaintiff,

_ FILEDMAY 2 3 2013

LCLERK, U.S. DISTRICT COURTNORFOLK. VA

Case No. Z:(3cVaQSPIPELINE & INDUSTRIAL GROUP, INC.,a Virginia corporation,

SERVE: Edward R. StolleRegistered Agent2101 Parks Avenue, Suite 700Virginia Beach, VA 23451(City ofVirginia Beach)

and

WESTCHESTER FIRE INSURANCE COMPANYa Pennsylvania corporation,SERVE: CT Corporation System4701 Cox Road, Suite 301

Glen Allen, VA 23060(County ofHenrico)Defendants .

COMPLAINT

The plaintiff, L&W Supply Corporation, d/b/a Building Specialties, by counsel, inaccordance with the provisions ofRule 3 of the Federal Rules ofCivilProcedure, statesthe following as its Complaint against the defendants, Pipeline & Industrial Group, Inc.,and Westchester Fire Insurance Company.

Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 1 of 8 PageID# 1


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The Pa r t i e s

1. The plaintiff, L&W Supply Corporation, d/b/a Building Specialties("L&W Supply"), is a Delaware corporation duly organized and existing under the lawsof the State ofDelaware which maintains its principal place of business in Chicago,Illinois and a local office at 5600 E. Virginia Beach Blvd., Norfolk, VA 23502. L&WSupply furnished building construction materials to Pipeline & Industrial Group, Inc.which utilized and incorporated the materials to fulfill its contractual obligations asgeneral contractor on a federal construction project known as the Renovations toRestroom & Breakroom, Building Y-109 Project at the Naval Station in Norfolk, Virginia(the "Building Y-109 Project"). L&W Supply is duly authorized to conduct business inthe Commonwealth ofVirginia.

2. Defendant Pipeline & Industrial Group, Inc. ("Pipeline") was at all timespertinent to this proceeding a Virginia corporation with its principal place ofbusinesslocated at 2669 Production Road, Suite 103, Virginia Beach, Virginia 23454. Pipelineserved as the general contractor on the BuildingY-109 Project. According to the recordsof the Virginia State Corporation Commission, Pipeline was automatically terminated onMay 31, 2012 for failure to file the requisite annual report.

3. Defendant Westchester Fire Insurance Company ("Westchester Fire") isand was at all times pertinent to this proceeding a Pennsylvania corporation dulyauthorized to conduct business in the Commonwealth ofVirginia, and maintains itsprincipal place ofbusiness at 436 Walnut Street, P.O. Box 1000, Philadelphia, PA 19106.Westchester Fire serves as the contract bond surety for Pipeline on the Building Y-109Project.



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Ju r i sd i c t i on a nd Venue

4. This Court has jurisdiction under the provisions of TheMiller Act, 40U.S.C. 3131, etseq., specifically 40 U.S.C. 3133(b), and 28 U.S.C. 1352 in that thisComplaint asserts a claim against and seeks recovery under a contract payment bondexecuted and furnished in accordance with the Provisions of TheMillerAct, 40 U.S.C. 3131, etseq.

5. Venue in this Court is proper as it is specifically conferred by theprovisions of 40 U.S.C. 3133(b)(3) of The MillerAct as the federal construction projectat issue and fo r which the mate r ia ls were furn i shed i s situated in this dist r ic t and divi s ion .

S t at em e n t o f F a c ts

6. On or about April 5, 2011, the United States ofAmerica (the "UnitedStates") awarded its general contract to Pipeline under the terms and conditions ofwhichPipeline agreed to furnish labor and material, and perform all work required inconnection with the Building Y-109 Project (Contract No. N400085-09-D-4230-0010)for the original contract sum of $610,222.56.

7. In conjunction with the performance of its contractual obligations to theUnited States, and as required by the provisions of 40 U.S.C. 3133(b) of The MillerAct,Pipeline furnished its contract payment bond (Bond No. K08575988) (the "Bond") in theamount of $610,222.56, which bond was issued to secure the payment of all labor andmaterial used or reasonably required for use in the performance of Pipeline's contractualobligations to the United States on the Building Y-109 Project. The Bond was issued byWestchester Fire, as surety, naming Pipeline as its principal and co-obligor, and the



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United States as its obligee. A true and correct copy of the Bond is attached as Exhibit Aand is incorporated by reference as if specifically set forth in this paragraph

8. During the course of construction and in conjunction with the performanceof its contractual obligations to the United States, Pipeline requested that L&W Supplyfurnish materials for use on Building Y-109 Project. At Pipeline's request and in relianceupon a Credit Application and Guarantee executed by Pipeline on August 30, 2006 (the"Pipeline Credit Application"), and the representations and covenants provided byPipeline in the Pipeline Credit Application, L&W Supply honored Pipeline's request,extended credit to and furnished materials directly to Pipeline for use on the Building Y-109 Project. Upon information and belief, all materials furnished by L&W Supply wereincorporated by or on behalfofPipeline on the Building Y-109 Project. A true andaccurate copy of the Pipeline Credit Application, as redacted in accordance with theprovisions ofRule 5.2 of the FederalRulesofCivilProcedure, is attached to thisComplaint as Exhibit B and is incorporated by reference as if specifically set forth in thisparagraph.

9. L&W Supply issued its invoices for the materials it furnished to Pipelineon the Building Y-109 Project in the collective amount of $8,594.61. Pipeline has paid$219.24 of that amount, leaving an outstanding balance of $8,375.37. True and correctcopies ofL&W Supply's outstanding invoices for materials it provided to Pipeline on theBuilding Y-109 Project are attached as Exhibit C.

10. The last day L&W Supply furnished materials to Pipeline for you on theBuilding Y-109 Project was May 23, 2012.



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11. Notwithstanding its contractual obligations to L&W Supply, the issuanceof the invoices, and repeated inquiries and demands for payment, Pipeline has failed andotherwise refused, without legal or contractual right or justification, to honor itsobligations to L&W Supply. The unpaid principal balance for the construction materialsfurnished by L&W Supply to Pipeline and used by Pipeline on the Building Y-109Project totals Eight Thousand Three Hundred Seventy Five Dollars and 37/100($8,375.37), exclusive of service charges, attorneys' fees, costs, expenses and interest.The amount due to L&W Supply is set forth in further detail in the Affidavit ofAccountand Detailed Aged Account Receivables which are collectively attached as Exhibit D andare incorporated by reference as though set forth in this paragraph.

COUNT IB r e a c h ofContract

P i pe l i n e

12. L&W Supply restates and incorporates the allegations contained in 1fl[ 1-11 above as if fully set forth in this paragraph.

13. Pipeline has breached its contractual obligations to L&W Supply and hasfailed and refused, without legal excuse or justification, to make timely and properpayment as required by the terms and conditions of each of the applicable invoices andthe Pipeline Credit Application, which breaches are material in nature.

14. As a direct, natural and proximate result of Pipeline's breaches of its

contractual obligations, L&W Supply has sustained losses in the principal amount of$8,375.37.

WHEREFORE, L&W Supply demands judgment against Pipeline in the principalamount of $8,375.37, plus all applicable service charges and late fees, as well as all of itattorneys' fees, costs and expenses, plus pre- and post-judgment interest at the rate



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authorized by law from the date of each invoice which has not been paid in full, untilpaid.

COUNT I IP a yme n t Bond Ob l i g a t i o nP ipe l i n e an d W es t c h e s t e r F i r e

15. L&W Supply restates and incorporates the allegations contained in ffl[ 1-14 above as if fully set forth in this paragraph.

16. In conjunction with the performance of its obligations to the United Statesunder the general contract, and in accordance with 40 U.S.C. 3133(b) of The MillerAct,

Pipeline furnished its Bond in the amount of$610,222.56 issued by Westchester Fire, assurety, naming Pipeline as its principal and co-obligor, and the United States as itsobligee.

17. The Bond was furnished for the protection of all persons and/or entitiesfurnishing labor and materials for the prosecution of the work required by the generalcontract between the United States and Pipeline, including L&W Supply which had adirect contractual relationship with Pipeline and furnished directly to Pipeline materialsfor prosecution of the work on the Building Y-109 Project.

18. L&W Supply is a proper claimant under the Bond, is a member of theclass entitled to assert a claim under the Bond, and has made a proper claim under theBond.

19. At all times pertinent to this proceeding, the Bond was in full force andeffect, and this Complaint has been filed within the time and in the manner required bylaw.

20. All conditions precedent, if any, to asserting a claim under the Bond havebeen satisfied and/or waived.



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21. This Complaint has been filed and the cause of action asserted more thanninety (90) days, but less than one year after the date on which L&W Supply lastfurnished materials to Pipeline in connection with the Building Y-109 Project and forwhich L&W Supply claims payment.

22. Westchester Fire and Pipeline have failed and refused to fulfill theirobligations under the Bond.

WHEREFORE, L&W Supply demands judgment against Pipeline andWestchester Fire, jointly and severally, in the principal amount of $8,375.37, plus allapplicable service charges and late fees, as well as all of its costs, expenses and attorneys'fees, plus pre- and post-judgment interest at the rate authorized by law from the date ofeach invoice until paid.

C OUN T II IQuantum Merui t

P i p e li n e a n d Westchester F i r e

23. L&W Supply restates and incorporates the allegations contained in f l 1-22 above as if fully set forth in this paragraph.

24. L&W Supply performed all conditions required of it and supplied allmaterials and other things requested by Pipeline in connection with the construction ofthe Building Y-109 Project and the performance of Pipeline's contractual obligations tothe United States. Notwithstanding the performance of its obligations to Pipeline and thevalue of the improvements its services, materials and other things have added to theproject, from which Pipeline has derived benefit, Pipeline has refused and otherwisefailed to authorize full payment or otherwise pay for the materials and other goodsprovided by L&W Supply, yet has retained the benefit and use of those materials all tothe detriment and at the expense of L&W Supply.

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25. Pipeline has been unjustly enriched since L&W Supply extended credit,and furnished materials and other goods enabling Pipeline to perform its contractualobligations to the United States on the Project, and from which it has received andretained substantial value, but for which L&W Supply has not been paid undercircumstances in which justice demands that payment be made.

26. Both Pipeline and Westchester Fire, as its surety, are jointly and severallyliable under the Bond for the materials L&W Supply furnished and any claims inquantum meruit.

WHEREFORE, L&W Supply demands judgment against Pipeline andWestchester Fire, jointly and severally, in the principal amount of $8,375.37, plus allapplicable service charges and late fees, as well as all of its costs, expenses and attorneys'fees, plus pre- and post-judgment interest at the rate authorized by law from the date ofeach invoice until paid.

Respectfully Submitted,L&W Supply Corporation, d/b/aBu i l d ing Spe c i a lt ie s

By Counsel

Richard T. Pledger (VSB #28102)Thomas J. Moran (VSB #71296)Christopher A. Cheuk (VSB #70891)WallacePledge r , PLLC7100 Fores t AvenueSu it e 302Richmond, Virginia 23226Telephone: (804) 282-8300Facsimile : (804) 282-2555email: [email protected]

[email protected]@wallacepledger.com


l & w supply corporation v. pipeline & industrial group, inc. et al complaint

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