Lumen Technologies Service Group, LLC v. CEC Group LLC
1:23-cv-00253
D. Colo.Nov 12, 2024Background
- In 2016, Lumen Technologies Service Group LLC (formerly CenturyTel) and CEC Group LLC (formerly Communications Engineering Consultant) entered into a Master Services Agreement (MSA) for telecom infrastructure engineering.
- The MSA included a Delaware choice-of-law clause and provisions making CEC liable for its subcontractors’ actions.
- In 2018, CEC subcontracted Paul J. Ford & Company (PJF) to perform a structural analysis of a building's floor capacity for Lumen; based on PJF's letter, Lumen bought the building.
- In 2020, a section of the building's second-floor slab partially collapsed, prompting Lumen to allege CEC breached the MSA.
- Lumen sued CEC in 2023 for breach of contract, breach of warranty, and breach of express indemnity.
- Both parties moved for summary judgment: CEC arguing the statute of limitations bars Lumen’s claims, and Lumen seeking a ruling that CEC is liable for damages caused by its subcontractor.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Which statute of limitations applies? | Delaware law applies per MSA; not time-barred | Florida law applies; bars claims under 2-year limit | Court needs further briefing—not enough to decide now |
| Enforceability of Delaware choice-of-law | Parties could have agreed to limitations period | No reasonable basis for choosing Delaware; invalid | Defendant failed to meet burden; further briefing required |
| CEC's liability for PJF’s acts under the MSA | CEC liable for subcontractors’ acts or omissions | Does not dispute liability for subcontractor’s actions | Granted: CEC liable for PJF’s acts/omissions if proven at trial |
| Indemnity/attorneys’ fees (“first-party” issue) | Motion not about attorney's fees | Indemnity doesn’t cover Lumen’s own claims | No express holding; issue not resolved, arguments premature |
Key Cases Cited
- Anderson v. Liberty Lobby, Inc., 477 U.S. 242 (summary judgment standard – genuine dispute of material fact)
- Celotex Corp. v. Catrett, 477 U.S. 317 (burden shifting in summary judgment motions)
- Crowe v. ADT Sec. Servs., Inc., 649 F.3d 1189 (definition of genuine dispute and material fact in summary judgment)
- Kipling v. State Farm Mut. Auto. Ins. Co., 774 F.3d 1306 (applying forum state's choice-of-law rules in diversity actions)
- Buell Cabinet Co. v. Sudduth, 608 F.2d 431 (summary judgment standards for cross-motions)
- Fogarty v. Gallegos, 523 F.3d 1147 (no weighing of evidence at summary judgment)