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L & W SUPPLY CORPORATION v. PIPELINE & INDUSTRIAL GROUP, INC. et al Complaint

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Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 1 of 8 PageID# 1
_ FILED
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF VIRGINIA Norfolk Division
MAY 2 3 2013
L
CLERK, U.S. DISTRICT COURT
NORFOLK. VA
L&W SUPPLY CORPORATION d/b/a
BUILDING SPECIALTIES,
a Delaware Corporation
Plaintiff,
Case No.
Z:(3cVaQS
PIPELINE & INDUSTRIAL GROUP, INC.,
a Virginia corporation,
SERVE: Edward R. Stolle
Registered Agent 2101 Parks Avenue, Suite 700 Virginia Beach, VA 23451 (City of Virginia Beach)
and WESTCHESTER FIRE INSURANCE COMPANY
a Pennsylvania corporation,
SERVE: CT Corporation System
4701 Cox Road, Suite 301 Glen Allen, VA 23060
(County of Henrico)
Defendants.
COMPLAINT
The plaintiff, L&W Supply Corporation, d/b/a Building Specialties, by counsel, in accordance with the provisions of Rule 3 of the Federal Rules ofCivil Procedure, states
the 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 2 of 8 PageID# 2
The Parties
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 laws of the State of Delaware which maintains its principal place of business in Chicago,
Illinois and a local office at 5600 E. Virginia Beach Blvd., Norfolk, VA 23502. L&W Supply furnished building construction materials to Pipeline & Industrial Group, Inc. which utilized and incorporated the materials to fulfill its contractual obligations as
general contractor on a federal construction project known as the Renovations to
Restroom & 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 in
the Commonwealth of Virginia.
2.
Defendant Pipeline & Industrial Group, Inc. ("Pipeline") was at all times
pertinent to this proceeding a Virginia corporation with its principal place ofbusiness
located at 2669 Production Road, Suite 103, Virginia Beach, Virginia 23454. Pipeline
served as the general contractor on the Building Y-109 Project. According to the records
of the Virginia State Corporation Commission, Pipeline was automatically terminated on May 31, 2012 for failure to file the requisite annual report.
3. Defendant Westchester Fire Insurance Company ("Westchester Fire") is
and was at all times pertinent to this proceeding a Pennsylvania corporation duly authorized to conduct business in the Commonwealth of Virginia, and maintains its principal place of business 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-109
Project.
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 3 of 8 PageID# 3
Jurisdiction and Venue
4.
This Court has jurisdiction under the provisions of The Miller Act, 40
U.S.C. § 3131, etseq., specifically 40 U.S.C. § 3133(b), and 28 U.S.C. § 1352 in that this Complaint asserts a claim against and seeks recovery under a contract payment bond
executed and furnished in accordance with the Provisions of TheMiller Act, 40 U.S.C. §
3131, etseq.
5.
Venue in this Court is proper as it is specifically conferred by the
provisions of 40 U.S.C. § 3133(b)(3) of The Miller Act as the federal construction project
at issue and for which the materials were furnished is situated in this district and division.
Statement of Facts
6.
On or about April 5, 2011, the United States of America (the "United
States") awarded its general contract to Pipeline under the terms and conditions of which
Pipeline agreed to furnish labor and material, and perform all work required in
connection 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 the
United States, and as required by the provisions of 40 U.S.C. § 3133(b) of The Miller Act, Pipeline furnished its contract payment bond (Bond No. K08575988) (the "Bond") in the
amount of $610,222.56, which bond was issued to secure the payment of all labor and
material used or reasonably required for use in the performance of Pipeline's contractual
obligations to the United States on the Building Y-109 Project. The Bond was issued by Westchester Fire, as surety, naming Pipeline as its principal and co-obligor, and the
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 4 of 8 PageID# 4
United States as its obligee. A true and correct copy of the Bond is attached as Exhibit A
and is incorporated by reference as if specifically set forth in this paragraph 8. During the course of construction and in conjunction with the performance
of its contractual obligations to the United States, Pipeline requested that L&W Supply
furnish materials for use on Building Y-109 Project. At Pipeline's request and in reliance
upon a Credit Application and Guarantee executed by Pipeline on August 30, 2006 (the
"Pipeline Credit Application"), and the representations and covenants provided by
Pipeline 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 were incorporated by or on behalf of Pipeline on the Building Y-109 Project. A true and accurate copy of the Pipeline Credit Application, as redacted in accordance with the
provisions of Rule 5.2 of the Federal Rules ofCivilProcedure, is attached to this
Complaint as Exhibit B and is incorporated by reference as if specifically set forth in this
paragraph.
9.
L&W Supply issued its invoices for the materials it furnished to Pipeline
on 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 correct
copies of L&W Supply's outstanding invoices for materials it provided to Pipeline on the
Building Y-109 Project are attached as Exhibit C.
10. The last day L&W Supply furnished materials to Pipeline for you on the
Building Y-109 Project was May 23, 2012.
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 5 of 8 PageID# 5
11.
Notwithstanding its contractual obligations to L&W Supply, the issuance
of the invoices, and repeated inquiries and demands for payment, Pipeline has failed and
otherwise refused, without legal or contractual right or justification, to honor its
obligations to L&W Supply. The unpaid principal balance for the construction materials
furnished by L&W Supply to Pipeline and used by Pipeline on the Building Y-109
Project 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 of Account and Detailed Aged Account Receivables which are collectively attached as Exhibit D and
are incorporated by reference as though set forth in this paragraph.
COUNT I
Breach of Contract
Pipeline
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 has
failed and refused, without legal excuse or justification, to make timely and proper
payment as required by the terms and conditions of each of the applicable invoices and
the 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 principal
amount of $8,375.37, plus all applicable service charges and late fees, as well as all of it
attorneys' fees, costs and expenses, plus pre- and post-judgment interest at the rate
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 6 of 8 PageID# 6
authorized by law from the date of each invoice which has not been paid in full, until
paid.
COUNT II
Payment Bond Obligation
Pipeline and Westchester Fire
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 States
under the general contract, and in accordance with 40 U.S.C. § 3133(b) of The Miller Act,
Pipeline furnished its Bond in the amount of $610,222.56 issued by Westchester Fire, as
surety, naming Pipeline as its principal and co-obligor, and the United States as its
obligee.
17.
The Bond was furnished for the protection of all persons and/or entities
furnishing labor and materials for the prosecution of the work required by the general
contract between the United States and Pipeline, including L&W Supply which had a
direct contractual relationship with Pipeline and furnished directly to Pipeline materials
for 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 the
class entitled to assert a claim under the Bond, and has made a proper claim under the
Bond.
19.
At all times pertinent to this proceeding, the Bond was in full force and
effect, and this Complaint has been filed within the time and in the manner required by
law.
20.
All conditions precedent, if any, to asserting a claim under the Bond have
been satisfied and/or waived.
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 7 of 8 PageID# 7
21.
This Complaint has been filed and the cause of action asserted more than
ninety (90) days, but less than one year after the date on which L&W Supply last
furnished materials to Pipeline in connection with the Building Y-109 Project and for
which L&W Supply claims payment.
22.
Westchester Fire and Pipeline have failed and refused to fulfill their
obligations under the Bond.
WHEREFORE, L&W Supply demands judgment against Pipeline and
Westchester Fire, jointly and severally, in the principal amount of $8,375.37, plus all applicable 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 of
each invoice until paid.
COUNT III
Quantum Meruit
Pipeline and Westchester Fire
23.
L&W Supply restates and incorporates the allegations contained in fl 1-
22 above as if fully set forth in this paragraph.
24. L&W Supply performed all conditions required of it and supplied all
materials and other things requested by Pipeline in connection with the construction of
the Building Y-109 Project and the performance of Pipeline's contractual obligations to the United States. Notwithstanding the performance of its obligations to Pipeline and the
value of the improvements its services, materials and other things have added to the
project, from which Pipeline has derived benefit, Pipeline has refused and otherwise failed to authorize full payment or otherwise pay for the materials and other goods
provided by L&W Supply, yet has retained the benefit and use of those materials all to
the detriment and at the expense of L&W Supply.
7
Case 2:13-cv-00295-RGD-TEM Document 1 Filed 05/23/13 Page 8 of 8 PageID# 8
25.
Pipeline has been unjustly enriched since L&W Supply extended credit,
and furnished materials and other goods enabling Pipeline to perform its contractual
obligations to the United States on the Project, and from which it has received and
retained substantial value, but for which L&W Supply has not been paid under
circumstances in which justice demands that payment be made. 26. Both Pipeline and Westchester Fire, as its surety, are jointly and severally
liable under the Bond for the materials L&W Supply furnished and any claims in
quantum meruit.
WHEREFORE, L&W Supply demands judgment against Pipeline and Westchester Fire, jointly and severally, in the principal amount of $8,375.37, plus all
applicable 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 of
each invoice until paid.
Respectfully Submitted,
L&W Supply Corporation, d/b/a
Building Specialties
By Counsel
Richard T. Pledger (VSB #28102) Thomas J. Moran (VSB #71296) Christopher A. Cheuk (VSB #70891)
WallacePledger, PLLC
7100 Forest Avenue
Suite 302
Richmond, Virginia 23226 Telephone: (804) 282-8300 Facsimile: (804) 282-2555
email: rpledger@wallacepledger.com tmoran@wallacepledger.com ccheuk@wallacepledger.com

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