Barker Industrial Contracting et al v. GPS Consulting LLC et al

Filing 38

MEMORANDUM OPINION Signed by Chief Judge Karon O Bowdre on 11/3/14. (SAC )

FILED
2014 Nov-03 PM 02:28
U.S. DISTRICT COURT
N.D. OF ALABAMA

IN THE UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF ALABAMA
MIDDLE DIVISION
BARKER INDUSTRIAL
CONTRACTING and SELLERS
MECHANICAL SERVICES, INC.,
Plaintiffs,
v.
GPS CONSULTING, LLC, a limited
liability company; JBB, LLC, a limited
liability company; BUDDY MILLER,
and JESSICA DUKE,
Defendants.

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CIVIL ACTION NO.:
4:12-cv-1877-KOB

MEMORANDUM OPINION
This matter is before the court on Plaintiff Barker Industrial Contracting and Plaintiff
Sellers Mechanical Services, Inc.’s “Application for Entry of Default Judgment.” (Doc. 32). The
Plaintiffs sued Defendant Buddy Miller and two companies, Defendant GPS Consulting, LLC
and Defendant JBB, LLC, for breaching contracts, committing fraud, and making
misrepresentations about various plumbing and conveyor system installation jobs in poultry
processing plants across the United States in 2010.1 (Doc. 1). Miller and his companies failed to
respond to the complaint or otherwise defend the case. The court entered default judgment
against Miller and his companies on July 31, 2014. (Doc. 29).
The only remaining issue to determine as to the Defendants in default is the amount of
damages to award the Plaintiffs. On October 15, 2014, the court held an evidentiary hearing to
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The Plaintiffs also sued defendant Jessica Duke, but the Plaintiffs’ claims against Duke
are not implicated in this judgment.
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determine the amount of damages to award the Plaintiffs. At the hearing, the court heard
evidence reflecting the commingling of funds between Miller, GPS Consulting, LLC, and JBB,
LLC sufficient for the court to disregard the companies’ corporate structures and to hold Miller
individually liable for damages. For the reasons discussed below, the court enters judgment
against the defaulting Defendants for Barker in the amount of $1,337,609.00, and enters
judgment against the defaulting Defendants for Sellers in the amount of $1,505,486.27. The court
awards costs of $775.27 to the Plaintiffs.
I.

Background

Buddy Miller is the owner of GPS Consulting, LLC and JBB, LLC. Miller has a history
working in the poultry processing industry as a broker for plant installations. Barker and Sellers
worked with Miller as subcontractors for several years leading up to 2010. Historically, Miller
paid the Plaintiffs on time. Around 2010, however, Miller and his companies only partially paid
the Plaintiffs for jobs in Delaware, Wisconsin, and Virginia. Miller and his companies also
under-supplied jobs by failing to provide equipment and labor, which caused further delays in
payment to the Plaintiffs. Miller lied to the Plaintiffs, saying the poultry plants had not paid him
and, thus, he could not pay the Plaintiffs when, in fact, they had paid him. At the same time,
however, Miller bragged to the Plaintiffs about his extravagant purchases, including a new farm
and new vehicles for his family.
Miller lied to the Plaintiffs about his business problems rather than owning up.
Throughout late 2009 and early 2010, Miller and his companies operated while undercapitalized.
The Plaintiffs received payments from both GPS Consulting, LLC and JBB, LLC and were never
quite sure exactly for whom they worked. Miller floated checks between projects to keep up with
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the demands of his customers and subcontractors. All the while, he assured the Plaintiffs that
they would be paid soon. Finally, however, his house of cards collapsed. He stopped returning
phone calls and text messages from the Plaintiffs and completely stopped paying the Plaintiffs’
invoices. Miller ran and hid.
Throughout this time, the Plaintiffs put their own reputations on the line. The Plaintiffs
sank more money and labor into the projects in Delaware, Wisconsin, and Virginia to stay on
schedule and have any hope of ultimately being paid directly by the poultry processing plants.
Sellers could not give bonuses to employees, could not pay its bills, missed out on other jobs, and
had to pay overtime to its stressed-out work crews, who often worked eighteen hour days to make
up for the manpower Miller failed to provide.
Barker was in even worse shape. While Miller bought new trucks for his family, Barker
sold company vehicles, including a truck and a passenger van. Barker also laid off most of its
employees, and its reputation as having a reliable work crew was ruined. Both Barker and Sellers
borrowed substantial sums of money to stay afloat.
Finally, the Plaintiffs filed a complaint against Miller and his companies. Miller and his
companies never answered their complaint, however, and failed to defend the case. The court
entered default judgment against Miller and his companies.
The Plaintiffs requested the following categories and amounts of damages:
1.

Sellers Mechanical Services, Inc.
A. Breach of Contract
B. Misrepresentation/Fraud

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$255,486.272

At the hearing, Sellers reduced its original claim of $424,561.27 for breach of contract to
$255,486.27 because it received $169,075.00 in compensation for Miller’s breach of contract
from a non-party to this lawsuit.
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1. Compensatory Damages
2. Punitive Damages
Total
2.

$750,000.00
$500,000.00
$1,505,486.27

$750,000.00
$500,000.00

Total
II.

Barker Industrial Contracting
A. Breach of Contract
B. Misrepresentation/Fraud
1. Compensatory Damages
2. Punitive Damages

$1,337,609.00

$87,609.00

Compensatory Damages for Breach of Contract

The Plaintiffs presented evidence establishing that Miller breached the contracts between
Barker and Miller and between Sellers and Miller. Miller damaged the Plaintiffs as a result of
those breaches. The evidence presented at the hearing confirmed the amount of damages
sustained by each Plaintiff because of Miller’s breach of contract. Therefore, the court finds that
Miller breached the contracts between the parties for which they may recover damages. The court
ENTERS judgment for Barker’s claim for breach of contract in the amount of $87,609.00 in
favor of Barker and against Miller, GPS Consulting, LLC and JBB, LLC. The court ENTERS
judgment for Sellers’ claim for breach of contract in the amount of $255,486.27 in favor of
Sellers and against Miller, GPS Consulting, LLC and JBB, LLC.
III.

Compensatory Damages for Fraud/Misrepresentation

The Plaintiffs presented evidence establishing that Miller made misrepresentations and
participated in a scheme to defraud the Plaintiffs and others, as previously recounted by the court.
The court finds that Miller made misrepresentations to the Plaintiffs on which they relied to their
detriment that resulted in damages for which they may recover. The court finds that, in addition
to contract losses, the Plaintiffs suffered additional damages because of the fraud including loss
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of goodwill and lost business opportunities. The court ENTERS judgment for Barker’s claim for
compensatory damages for fraud and misrepresentation in the amount of $750,000.00, in favor of
Barker and against Miller, GPS Consulting, LLC and JBB, LLC. The court ENTERS judgment
for Sellers’ claim for compensatory damages for fraud and misrepresentation in the amount of
$750,000.00, in favor of Sellers and against Miller, GPS Consulting, LLC and JBB, LLC.
IV.

Punitive Damages

The Plaintiffs presented clear and convincing evidence establishing that Miller acted with
malice, fraud, oppression, and with reckless indifference to each of the Plaintiffs’ rights.
Therefore, the court finds that the Plaintiffs are entitled to punitive damages. The court ENTERS
judgment for Barker’s claim for punitive damages in the amount of $500,000.00, in favor of
Barker and against Miller, GPS Consulting, LLC and JBB, LLC. The court ENTERS judgment
for Sellers’ claim for punitive damages in the amount of $500,000.00, in favor of Sellers and
against Miller, GPS Consulting, LLC and JBB, LLC.
V.

Costs

The court heard testimony and received documentation regarding costs incurred in
prosecuting this litigation from the Plaintiffs. Therefore, the court AWARDS $775.27 as costs to
the Plaintiffs, which the court finds to be just and reasonable.
VI.

Conclusion

In summary, for the reasons discussed above, the court enters judgment against the
defaulting Defendants for Barker in the amount of $1,337,609.00 and enters judgment against the
defaulting Defendants for Sellers in the amount of $1,505,486.27. The court awards $775.27 in
costs to the Plaintiffs.
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DONE and ORDERED this 3rd day of November, 2014.

____________________________________
KARON OWEN BOWDRE
CHIEF UNITED STATES DISTRICT JUDGE

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