Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_11-cv-08012/USCOURTS-azd-3_11-cv-08012-0/pdf.json

Nature of Suit Code: 130
Nature of Suit: Miller Act
Cause of Action: 40:270 Miller Act

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WO

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Cemex Construction Materials South,

LLC; United States for the use and benefit

of Cemex Materials South LLC, 

Plaintiffs, 

vs.

Grady’s Quality Excavating Inc.; Grady L.

Hopson; Cheryl L. Hopson; Ronald F.

Wilson; Montana Builders LLC, 

Defendants. 

_________________________________

Cheryl L. Hopson; Grady L. Hopson;

Grady’s Quality Excavating Inc.

Cross Claimants

vs.

Montana Builders LLC; Ronald F. Wilson

Cross Defendants

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No. CV-11-8012-PCT-FJM

ORDER

The United States, through the Department of Agriculture, entered into a contract with

defendant Montana Builders, LLC, for a construction project at Oak Creek Complex-Pine

Flat Campground (the “Project”). Montana Builders, as the general contractor on the Project

and pursuant to the Miller Act, 40 U.S.C. § 3131(b)(2), furnished a payment bond to the

United States. Defendant Ronald Wilson is surety on the payment bond. Montana Builders

Case 3:11-cv-08012-FJM Document 42 Filed 08/22/11 Page 1 of 3
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contracted with defendant Grady’s Quality Excavating as subcontractor on the Project.

Grady’s in turn contracted with plaintiff Cemex Construction Materials South, LLC, for the

purchase of construction materials. Cemex has now filed this action against Grady and its

principals for their failure to pay Cemex for materials in the principal amount of $48,465.58.

Pursuant to the Miller Act, Cemex also named as defendants Montana Builders and its surety

under the payment bond. See 40 U.S.C. § 3133(b)(2).

The court has before it the United States of America for the Use and Benefit of Cemex

Construction Materials South, LLC’s (“Cemex”) application for entry of default judgment

against Montana Builders, LLC, and Ronald F. Wilson (doc. 37). Also before us is Cemex’s

motion for attorney’s fees in the amount of $14,213.51 (doc. 39). 

Cemex served copies of the summons and complaint on defendant Montana Builders

on February 13, 2011, and on defendant Ronald F. Wilson on March 27, 2011. Both

Montana Builders and Wilson have failed to plead or otherwise defend within the time

prescribed by Rule 12(a)(1), Fed. R. Civ. P. The clerk entered default against these

defendants in favor of Cemex on June 8, 2011. Cemex now seeks entry of default judgment

and contends that its claims against Montana Builders and Ronald Wilson is for a sum certain

in the principal amount of $48,465.58, plus interest at the legal rate of 10% per annum from

the date payment was due until paid in full (doc. 37 at 2). Cemex’s claim is sufficiently

supported by affidavit (doc. 27, ex. A). Therefore, IT IS ORDERED GRANTING

Cemex’s motion for entry of default judgment in the amount of $48, 465.58, plus interest at

the legal rate of 10% per annum (doc. 37).

Cemex also seeks attorney’s fees in the amount of $14,213.51 pursuant to A.R.S. §

12-341.01 and the Miller Act (doc. 39). Other than to cite the two statutes, however, Cemex

does not explain its eligibility for recovery of fees. 

Attorney’s fees are not available under the Miller Act unless expressly provided for

by the terms of the direct contract between the parties or in the Miller Act bond itself. United

States v. ex rel. Reed v. Callahan, 884 F.2d 1180, 1185 (9th Cir. 1989). Moreover, fees are

not available under A.R.S. § 12-341.01 in the absence of a contractual relationship. Ayres

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v. Red Cloud Mills, Inc., 167 Ariz. 474, 481, 808 P.2d 1226, 1233 (Ct. App. 1990). Cemex

had no contractual relationship with Montana Builders or Ronald Wilson and the payment

bond does not provide for attorney’s fees. See Complaint ex. A. Because Cemex has failed

to establish any theory to support its claim for attorney’s fees against Montana Builders or

Wilson, Cemex’s motion for attorney’s fees is denied (doc. 39). 

IT IS ORDERED GRANTING Cemex’s motion for entry of default judgment in the

amount of $48, 465.58, plus interest at the legal rate of 10% per annum (doc. 37).

IT IS ORDERED DENYING Cemex’s motion for attorney’s fees (doc. 39).

DATED this 22nd day of August, 2011.

Case 3:11-cv-08012-FJM Document 42 Filed 08/22/11 Page 3 of 3