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Keywords

contractplaintiffdefendantindemnitypleamotionbailcivil procedure
contractplaintiffindemnitypleamotioncivil procedure

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Sahara Wireless International, Inc.; U.S. v.

Facts

Financing and construction of a specialty surgical hospital in Idaho Falls, Idaho, began in 1999. That hospital, later named Mountain View Hospital, received its Certificate of Occupancy on January 15, 2003. However, problems with the humidification system and insulation, among other concerns, led to this law suit involving the project's general contractor, and various sub- and sub-subcontractors. The parties are as follows: Plaintiff: Mountain View Hospital; Defendant: Sahara – design-build general contractor; Defendant: Davis – architect per subcontract with Sahara; Cross-Claimant: Encompass – mechanical systems installer per subcontract with Sahara; Defendant: Siemens – building controls installer per sub-subcontract with Encompass; Third-Party Plaintiff: United Team Mechanical (UTM) – HVAC installer per sub-subcontract with Encompass; UTM later assumed Encompass's subcontract; Third-Party Defendant: Bingham – plumbing installer (medical gas piping and wet side plumbing) per sub-subcontract with Encompass; Third-Party Defendant: E.K. Bailey – framing, insulation, and drywall installer, per subcontract with Sahara; Third-Party Defendant: Ballard – mechanical engineer, per subcontract with Sahara.

Financing and construction of a specialty surgical hospital in Idaho Falls, Idaho, began in 1999. That hospital, later named Mountain View Hospital, received its Certificate of Occupancy on January 15, 2003. However, problems with the humidification system and insulation, among other concerns, led to this law suit involving the project's general contractor, and various sub- and sub-subcontractors.

Issue

The main legal issue was whether the third-party plaintiff properly pleaded a claim for contractual indemnity and whether the claims for equitable indemnity could proceed.

The main legal issue was whether the third-party plaintiff properly pleaded a claim for contractual indemnity and whether the claims for equitable indemnity could proceed.

Rule

The court applied the legal standard for reconsideration under Federal Rule of Civil Procedure 59(e), which allows for reconsideration if there is newly discovered evidence, clear error, or an intervening change in controlling law.

The court applied the legal standard for reconsideration under Federal Rule of Civil Procedure 59(e), which allows for reconsideration if there is newly discovered evidence, clear error, or an intervening change in controlling law.

Analysis

The court found that Sahara failed to properly plead a claim for contractual indemnity, as its third-party complaint did not mention indemnity in the context of a contractual claim. However, the court recognized that Sahara's claims for equitable indemnity remained viable. The court clarified that its previous remarks regarding indemnity were intended as background and not as a finding that Sahara had a valid contractual indemnity claim.

The court found that Sahara failed to properly plead a claim for contractual indemnity, as its third-party complaint did not mention indemnity in the context of a contractual claim. However, the court recognized that Sahara's claims for equitable indemnity remained viable.

Conclusion

The court granted in part and denied in part the motions for clarification and reconsideration. Sahara's request to recognize its indemnity claims as contractual was denied, but its claims for equitable indemnity were allowed to proceed.

The court granted in part and denied in part the motions for clarification and reconsideration. Sahara's request to recognize its indemnity claims as contractual was denied, but its claims for equitable indemnity were allowed to proceed.

Who won?

Mountain View Hospital prevailed in that the court allowed its claims for equitable indemnity to proceed, while denying Sahara's request for contractual indemnity.

Mountain View Hospital prevailed in that the court allowed its claims for equitable indemnity to proceed, while denying Sahara's request for contractual indemnity.

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