Oelrich Construction, Inc. v. PRC Precast, LLC ( 2023 )


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  • USCA11 Case: 22-10305    Document: 57-1     Date Filed: 07/13/2023   Page: 1 of 6
    [DO NOT PUBLISH]
    In the
    United States Court of Appeals
    For the Eleventh Circuit
    ____________________
    No. 22-10305
    ____________________
    OELRICH CONSTRUCTION, INC.,
    Plaintiff-Counter Defendant-
    Appellee,
    versus
    PRC PRECAST, LLC,
    Defendant-Counter Claimant-
    Appellant.
    ____________________
    Appeal from the United States District Court
    for the Northern District of Florida
    D.C. Docket No. 1:20-cv-00169-RH-GRJ
    USCA11 Case: 22-10305      Document: 57-1     Date Filed: 07/13/2023     Page: 2 of 6
    2                      Opinion of the Court                 22-10305
    ____________________
    Before WILSON, NEWSOM, and LAGOA, Circuit Judge.
    PER CURIAM:
    In this breach of contract action under Florida law, PRC Pre-
    cast, LLC (PRC) appeals the district court’s final judgment, after a
    bench trial, finding that Oelrich Construction, Inc. (Oelrich)
    properly terminated the parties’ contract. PRC further appeals the
    district court’s calculation of damages. After careful review, and
    with the benefit of oral argument, we find no reversible error.
    I.
    Oelrich was a subcontractor in a federal boiler-plant project
    in Gainesville, Florida. Oelrich was hired by the general contractor
    to construct the shell of the plant. Oelrich subcontracted with PRC
    to manufacture and install precast concrete slabs for the shell. A
    dispute arose from PRC’s failure to timely manufacture the slabs.
    The parties kept extending the deadlines in the contract and, even-
    tually, PRC expressed uncertainty about complying with the dead-
    lines. After several delays, back-and-forth, and extended deadlines,
    Oelrich terminated the contract and hired a substitute to complete
    the job. Oelrich sent PRC an email asking for notification if the un-
    derstanding was incorrect, and PRC failed to respond.
    In an appeal from a bench trial, we review conclusions of
    law de novo. PlayNation Play Sys., Inc. v. Velex Corp., 
    924 F.3d 1159
    ,
    1165 (11th Cir. 2019). We review factual findings under a clear error
    standard of review. 
    Id.
     “A factual finding is clearly erroneous ‘when
    USCA11 Case: 22-10305      Document: 57-1       Date Filed: 07/13/2023    Page: 3 of 6
    22-10305               Opinion of the Court                          3
    although there is evidence to support it, the reviewing court on the
    entire evidence is left with the definite and firm conviction that a
    mistake has been committed.’” Morrissette-Brown v. Mobile Infirmary
    Med. Ctr., 
    506 F.3d 1317
    , 1319 (11th Cir. 2007) (quoting Holton v. City
    of Thomasville Sch. Dist., 
    425 F.3d 1325
    , 1350 (11th Cir. 2005)).
    II.
    PRC first argues that Oelrich breached the contract first by
    failing to satisfy three invoices for PRC’s materials, excusing PRC’s
    further performance. But the district court determined that PRC
    waived Oelrich’s breach by thereafter accepting delayed payments,
    failing to inform Oelrich that it was suspending work because of
    the breach, and continuing to participate in arranging new installa-
    tion dates. These findings are supported by the record. PRC has not
    shown clear error in the district court’s factual findings that support
    the determinations that PRC’s failure to perform was not excused
    by Oelrich’s prior breach and that PRC breached the contract by
    non-performance.
    PRC also argues that Oelrich failed to give twenty-four
    hours’ prior notice of termination or a formal opportunity to cure,
    as provided in the parties’ contract. But the district court deter-
    mined that it was too late to cure performance and, given the cir-
    cumstances at the time, PRC would have been unable to complete
    performance. Consequently, notice for an opportunity to cure was
    USCA11 Case: 22-10305          Document: 57-1           Date Filed: 07/13/2023           Page: 4 of 6
    4                           Opinion of the Court                          22-10305
    not material as it would have been futile. 1 Upon consideration of
    the record, we cannot say that this determination is based on
    clearly erroneous findings.
    III.
    In a separate order, PRC was ordered to pay $200,188.76 in
    damages. The court found that Oelrich was entitled to (1) 100% of
    the replacement contractor’s setup price: $106,749.00; (2) 47% of
    the new contractor’s manufacture price: $23,519.00; (3) the amount
    by which the replacement contractor’s installation price exceeded
    PRC’s: $21,083.00; (4) the damages caused by having to hire the
    new contractor as a replacement: $151,351.00; (5) and delay dam-
    ages: $78,235.76. After applying offsets of $10,365.00 for improp-
    erly withheld retainage and $19,033.00 for the cost of disposing of
    materials already made by PRC, the district court arrived at the
    $200,188.76 total.
    PRC argues on appeal that the district court mis-calculated
    damages for essentially the following three reasons: (1) damages
    were not proven by a reasonable certainty; (2) the damages should
    have been limited to the difference in price between PRC’s contract
    and the replacement contractor’s price, and (3) Oelrich did not
    prove “delay” damages with substantial evidence.
    1“[T]he law does not require that a party to a contract take action that would
    clearly be futile.” Waksman Enters., Inc. v. Or. Props., Inc., 
    862 So. 2d 35
    , 43 (Fla.
    Dist. Ct. App. 2003).
    USCA11 Case: 22-10305      Document: 57-1     Date Filed: 07/13/2023     Page: 5 of 6
    22-10305               Opinion of the Court                         5
    We find no reversible error in the district court’s calculation
    of damages. All that is required is that “the evidence affords a suf-
    ficient basis for estimating an amount in money with reasonable
    certainty.” United Steel & Strip Corp. v. Monex Corp., 
    310 So. 2d 339
    ,
    342 (Fla. Dist. Ct. App. 1975). “Where damages cannot be precisely
    determined, the trial judge is vested with reasonable discretion in
    making the award of damages.” Clearwater Assocs. v. Hicks Laundry
    Equip. Corp., 
    433 So. 2d 7
    , 8 (Fla. Dist. Ct. App 1983). The district
    court’s findings upon which it based its damages calculation are not
    clearly erroneous, and the court calculated damages within the
    bounds of its discretion.
    IV.
    We thus affirm the judgments of the district court.
    AFFIRMED.
    USCA11 Case: 22-10305        Document: 57-1         Date Filed: 07/13/2023        Page: 6 of 6
    22-10305             NEWSOM, J., dissenting in part                          1
    NEWSOM, Circuit Judge, concurring in part and dissenting in part:
    With one quibble, I concur in the Court’s opinion.
    Here’s the quibble: I think the district court awarded Oelrich
    too much in manufacturing damages. It gave Oelrich $23,519, re-
    lieving the company of all but $4,516.39 of the cost of the manu-
    facturing work left incomplete by PRC’s breach.1 Had PRC not
    breached, though, Oelrich would have paid it $20,415.39 to finish
    that work. The district court’s award thus left Oelrich paying less
    for manufacturing than it would have paid had PRC performed.
    As I understand things, that’s not lawful. A party who has
    suffered a breach of contract “is not entitled to be placed, because
    of that breach, in a position better than that which he would have
    occupied had the contract been performed.” School Bd. v. Pierce
    Goodwin Alexander & Linville, 
    137 So. 3d 1059
    , 1070 (Fla. 4th Dist.
    Ct. App. 2014) (quoting Lindon v. Dalton Hotel Corp., 
    49 So. 3d 299
    ,
    305 (Fla. 5th Dist. Ct. App. 2010)). The district court’s award im-
    permissibly put Oelrich in a position better than it would have been
    in had PRC performed. I would reverse to the extent that it did so.
    1 $4,516.39 is what Oelrich paid PRC for manufacturing work that PRC never
    finished. Through October 2019, PRC billed $27,538 in manufacturing costs.
    See Doc. 55-2 at 4; Doc. 96 at 11. PRC effectively paid those bills—because the
    district court offset Oelrich’s damages award by the unpaid portion. See Doc.
    98 at 7. The 53% of the manufacturing that PRC completed cost $23,021.61—
    53% of the total manufacturing cost, $43,437. See Doc. 98 at 2–3, 4. The dif-
    ference between these figures, therefore—$4,516.39—is all that Oelrich actu-
    ally paid toward the uncompleted portion.