Waldinger Corp. v. WorldCom, Inc. (In Re WorldCom, Inc.) , 466 F. App'x 28 ( 2012 )


Menu:
  •      11-1975
    In Re: WorldCom, Inc.
    UNITED STATES COURT OF APPEALS
    FOR THE SECOND CIRCUIT
    SUMMARY ORDER
    RULINGS BY SUMMARY ORDER DO NOT HAVE PRECEDENTIAL EFFECT. CITATION TO A SUMMARY ORDER FILED
    ON OR AFTER JANUARY 1, 2007, IS PERMITTED AND IS GOVERNED BY FEDERAL RULE OF APPELLATE
    PROCEDURE 32.1 AND THIS COURT’S LOCAL RULE 32.1.1. WHEN CITING A SUMMARY ORDER IN A
    DOCUMENT FILED WITH THIS COURT, A PARTY MUST CITE EITHER THE FEDERAL APPENDIX OR AN
    ELECTRONIC DATABASE (WITH THE NOTATION “SUMMARY ORDER”). A PARTY CITING A SUMMARY ORDER MUST
    SERVE A COPY OF IT ON ANY PARTY NOT REPRESENTED BY COUNSEL.
    1            At a stated term of the United States Court of Appeals
    2       for the Second Circuit, held at the Daniel Patrick Moynihan
    3       United States Courthouse, 500 Pearl Street, in the City of
    4       New York, on the 8th day of March, two thousand twelve.
    5
    6       PRESENT: DENNIS JACOBS,
    7                              Chief Judge,
    8                DENNY CHIN,
    9                SUSAN L. CARNEY,
    10                              Circuit Judges.
    11
    12       - - - - - - - - - - - - - - - - - - - -X
    13       IN RE: WORLDCOM, INC.
    14
    15       WALDINGER CORPORATION,
    16                Creditor-Appellant,
    17
    18                    -v.-                                               11-1975
    19
    20       WORLDCOM, INC.,
    21                Debtor-Appellee.
    22       - - - - - - - - - - - - - - - - - - - -X
    23
    24       FOR APPELLANT:                        Bennette D. Kramer, Schlam Stone
    25                                             & Dolan LLP, New York, N.Y.;
    26                                             James B. Cavanagh (on the
    27                                             brief), Lieben, Whitted,
    1
    1                               Houghton, Slowiaczek & Cavanagh,
    2                               P.C., Omaha, Neb.
    3
    4   FOR APPELLEES:              Mark S. Carder, Stinson Morrison
    5                               Hecker LLP, Kansas City, Mo.;
    6                               David C. McGrail (on the brief),
    7                               McGrail & Bensinger LLP, New
    8                               York, N.Y.
    9
    10        Appeal from a judgment of the United States District
    11   Court for the Southern District of New York (Sullivan, J.).
    12
    13        UPON DUE CONSIDERATION, IT IS HEREBY ORDERED, ADJUDGED
    14   AND DECREED that the judgment of the district court be
    15   AFFIRMED.
    16
    17
    18        The Waldinger Corporation (“Waldinger”) appeals the
    19   affirmance of the bankruptcy court’s (1) reclassification of
    20   its claim against WorldCom, Inc. (“WorldCom”) as unsecured
    21   and (2) quantum meruit calculation, as modified by the
    22   district court. We assume the parties’ familiarity with the
    23   underlying facts, the procedural history, and the issues
    24   presented for review.
    25
    26        “In an appeal from a district court’s review of a
    27   bankruptcy court decision, we review the bankruptcy court
    28   decision independently, accepting its factual findings
    29   unless clearly erroneous but reviewing its conclusions of
    30   law de novo.” In re AroChem Corp., 
    176 F.3d 610
    , 620 (2d
    31   Cir. 1999).
    32
    33        “A person who furnishes services or materials pursuant
    34   to a real estate improvement contract has a construction
    35   lien . . . to secure the payment of his or her contract
    36   price.” 
    Neb. Rev. Stat. § 52-131
    (1). “To create a
    37   contract, there must be both an offer and an acceptance;
    38   there must also be a meeting of the minds or a binding
    39   mutual understanding between the parties to the contract.”
    40   Tilt-Up Concrete, Inc. v. Star City/Federal, Inc., 
    255 Neb. 41
       138, 147, 
    582 N.W.2d 604
    , 610 (1998). The bankruptcy court
    42   found that WorldCom did not assent to the installation of
    43   three air handling units. Waldinger fails to show that this
    44   finding is clearly erroneous.1 Although WorldCom may have
    1
    “Whether a contract exists is a question of fact.”
    Gerhold Concrete Co. v. St. Paul Fire & Marine Ins. Co. , 269
    2
    1   assented to its pre-installation preparations and to its
    2   upgrade of a fourth unit, Waldinger does not show that the
    3   bankruptcy court clearly erred in holding that there was no
    4   meeting of the minds to contract for this scope of work, or
    5   the price to be paid for it. Cf. Tilt-Up Concrete, 
    225 Neb. 6
       at 146-48, 
    582 N.W.2d at 610-11
     (finding a contract--even
    7   though the parties did not agree on the price of some
    8   “extras” to be performed by the contractor--because the
    9   parties “had a meeting of the minds sufficient to establish
    10   a lump-sum contract for [the contractor’s] normal scope of
    11   work, plus the extra . . . work”).
    12
    13        The bankruptcy court did not clearly err in excluding
    14   salary paid to a Waldinger manager and Waldinger’s overhead
    15   from its quantum meruit calculation. Waldinger did not
    16   establish that either was an actual cost incurred in the
    17   project. See S. A. Sorenson Constr. Co. v. Broyhill, 165
    
    18 Neb. 397
    , 406, 
    85 N.W.2d 898
    , 904 (1957) (denying recovery
    19   for a supervisor’s work when there was “no evidence as to
    20   the amount required or reasonable value”). The bankruptcy
    21   court did not err in excluding Waldinger’s projected profits
    22   from its quantum meruit calculation. See Gee v. City of
    23   Sutton, 
    149 Neb. 603
    , 609, 
    31 N.W.2d 747
    , 751 (1948)
    24   (“Generally, the courts will not allow profits which might
    25   have been obtained if the contract had been legal and valid
    26   . . . but confine[] recovery to such sum as will reasonably
    27   compensate the party whose services or property have been
    28   devoted to the advantage of the other.”).
    29
    30        Finding no merit in Waldinger’s remaining arguments, we
    31   hereby AFFIRM the judgment of the district court.
    32
    33                              FOR THE COURT:
    34                              CATHERINE O’HAGAN WOLFE, CLERK
    35
    
    36 Neb. 692
    , 696, 
    695 N.W.2d 665
    , 670 (2005); see also Connolly
    v. Clark, 
    457 F.3d 872
    , 875 (8th Cir. 2006).
    3