Weitz Co. LLC v. MacKenzie House, LLC
665 F.3d 970
| 8th Cir. | 2012Background
- Weitz Company, LLC sued MacKenzie House, LLC and MH Metropolitan, LLC for breach of a construction contract.
- MH Metropolitan counterclaimed for liquidated damages and the cost to complete; Arrowhead and Concorde also asserted counterclaims.
- Jury awarded MH Metropolitan $3,022,520 in liquidated damages, $1,969,450.87 for completion, Arrowhead $556,110, and Concorde prevailed on its claims against Weitz.
- Project delays and termination for cause occurred after Weitz allegedly breached by poor performance, unpaid applications, and blocking lien waivers.
- Weitz challenged district court rulings on damages, evidence, and liability, and appealed to the Eighth Circuit, which affirmed the judgment.
- District court judgment remains in place; post-judgment motions were denied.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether MH Metropolitan proved breach and damages as a matter of law | Weitz asserted no substantial breach by MH Metropolitan; damages miscalculated | MH Metropolitan argued Weitz breached and damages were proper | No; jury reasonably found MH Metropolitan breached and damages supported |
| Admission of other projects evidence | Weitz argued prior projects showed breach patterns | MH Metropolitan argued evidence was irrelevant or prejudicial | Exclusion proper; no substantial rights affected |
| Liquidated damages and cost to complete calculations | Damages overstated; Moore v. Board of Regents controls | Damages reasonable forecast; ambiguity for jury | Venue supports the jury verdict; calculation preserved by contract ambiguity |
| Entry of judgment as a matter of law against Arrowhead | Arrowhead breached; JMOL warranted | Evidence supported Arrowhead's position; jury verdict was reasonable | Denied; jury's credibility findings upheld |
| Default judgment against Concorde for failing to appear | Concorde default should be entered | Concorde participated through counsel for much of litigation; no default | Default judgment not warranted; damages left to jury and district court discretion |
Key Cases Cited
- Brockman v. Soltysiak, 49 S.W.3d 740 (Mo.App.2001) (substantial compliance required for breach of contract)
- Moore v. Board of Regents, 115 S.W.6 12-13 (Mo.1908) (liquidated damages context pre-termination)
- Gilstrap v. Amtrak, 998 F.2d 559 (8th Cir.1993) (predict Missouri high court would decide otherwise today)
- Twin River Const. Co. v. Public Water Dist. No. 6, 653 S.W.2d 682 (Mo.App.1983) (intermediate appellate decision not controlling when highest court would decide differently)
- Bogan v. General Motors Corp., 500 F.3d 828 (8th Cir.2007) (follow best evidence of state law when high court decision unclear)
- Browning v. President Riverboat Casino-Missouri, Inc., 139 F.3d 631 (8th Cir.1998) (appellate deference to jury verdict on damages)