MMK attorneys, Jerry Melchiode and Renée Melchiode, obtained a judgment in excess of $1,000,000 in a construction dispute involving a design-build pump project at the NASA Stennis facility.
Representing the mechanical subcontractor, MMK sued the engineer and material supplier of an industrial pump package based on theories of detrimental reliance and negligence. This was the second trial after appeal and remand following a full trial on the merits. More specifically, prior to the first trial, the court considered and dismissed Plaintiff’s negligence claims against the engineer. The Court of Appeal reversed the granting of the Motion for Summary Judgment and remanded to consider evidence of the engineer’s negligence. After the second trial, the court found both the engineer and supplier liable for plaintiff’s economic losses. In short, the supplier was liable for knowingly misquoting the price of the pump package and concealing the error from Plaintiff while continuing to participate in the design and procurement process. The engineer was liable because it confirmed that the bid was compliant and vetted the pricing. However, although it knew of potential issues, the engineer failed to advise Plaintiff that the price could increase or that the price was “suspect.” When Plaintiff placed the purchase order 90 days later, the pump package price increased by approximately $1,000,000 despite no significant change in scope. Plaintiff, bound by its original contract price with the general contractor, was forced to purchase the pump package components from other sources. The Court awarded Plaintiff its losses incurred from resourcing the pump package at the last minute.
The matter was tried before the Honorable Judge Piper Griffin in Civil District Court for the Orleans Parish.
