Opinion ID: 212406
Heading Depth: 1
Heading Rank: 1

Heading: facts

Text: On January 28, 2009, plaintiff Scarborough filed a declaratory action in district court against the defendants and on May 11, 2009 filed an Amended Complaint. The district court later permitted Scarborough to supplement the Amended Complaint to join additional defendants. In his Amended Complaint, Scarborough pled only diversity jurisdiction under 28 U.S.C. § 1332 and did not plead federal question jurisdiction under 28 U.S.C. § 1331. Plaintiff’s Amended Complaint, as later supplemented, alleged these facts. The defendant Carotex Construction, Inc. (“Carotex”) is a Texas corporation that is licensed as a Certified General Contractor in Florida. Joyce and Victor Blackmon own Carotex. Joyce Blackmon is the President; Victor Blackmon is the Vice President. On November 10, 2006, defendant Carotex, as the contractor, entered into a construction contract with the defendant Sunrise VA Medical, LLC (“SVAM”), as the owner, to construct a clinic, known as the VA Outpatient Clinic (the “Project”). SVAM is a foreign company authorized to conduct business in Florida. SVAM owns the real property in Broward County, Florida on which the 3 Project was to be constructed (the “Property”). SVAM is managed by Seavest, Inc. (“Seavest”), a foreign corporation that is not authorized to do business in Florida. On December 14, 2006, defendant Carotex, as principal, and plaintiff Scarborough, as individual surety, furnished a payment bond (the “Payment Bond”) and performance bond (the “Performance Bond”). Both the Payment Bond and the Performance Bond are attached as Exhibit A to the Amended Complaint. Beginning in May 2008, the defendant claimants (the “Claimants”)1 began furnishing labor, services or materials for the Project at the request of the defendant SVAM (the owner), as opposed to Carotex (the contractor). Defendant SVAM began making payments directly to certain of the Claimants for the labor, services or materials allegedly furnished. 1 The “Claimants” listed in the Amended Complaint (as supplemented) are as follows: G. Proulx, LLC; Wesco Distributions, Inc.; Stanley Access Technologies, LLC; ASA Carlton, Inc.; M&M Concrete Pumping, Inc.; Ferguson Fire & Fabrication, Inc.; American Cutting and Drilling Company; Specialties Source, Inc.; Construction Industry Associates, Inc.; Richard Flanders Enterprises, Inc.; City Electric Supply Company; Banner Supply Company Pompano; B&R Glass and Glazing, Inc.; Coral Construction of South Florida, Inc.; Coral Contracting LLC; Tri-County Building Specialties; Rauland-Borg Corporation of Florida; Sunbelt Rentals, Inc.; Windmill Sprinkler Co., Inc.; Allied Barton Security Services LLC; Continental Florida Materials, Inc.; Decon Environmental & Engineering, Inc.; Florida Designer Cabinetry; Randall Rents of Florida, Inc.; Elan Landscape, Inc.; American Equipment Rental, Inc.; All Construction Fastening Systems, Inc.; Tampco Group, Inc.; Kelly Refrigeration Services, Inc.; and Mac-Products, Inc. 4 The Claimants served notices of nonpayment to plaintiff Scarborough (the surety), alleging that they had furnished labor, services, or materials for the improvement of the Property but had not been fully paid. Scarborough’s Amended Complaint alleged that each defendant Claimant seeks payment solely for labor, services or materials it had furnished at SVAM’s behest. None of the Claimants sought payment for labor, services, or materials furnished at Carotex’s behest. In Count I, plaintiff Scarborough sought a declaratory judgment against the defendant Claimants that Scarborough was not liable under the Payment Bond to any of the Claimants for labor, services or materials furnished after the Claimants began furnishing labor, services, or materials at SVAM’s direction and behest. In Count II, plaintiff Scarborough sought a declaratory judgment against defendants HSBC Realty Credit Corporation (USA) (“HSBC”) and SVAM, obligees on the Performance Bond (the “Obligees”), as well as Seavest, that Scarborough was not liable to the Obligees or Seavest under the Performance Bond because the Obligees failed to declare Carotex to be in default, to terminate the contract, or to give Scarborough an opportunity to perform under the Performance Bond. Plaintiff Scarborough also brought claims against the defendants Carotex, Joyce Blackmon, and Victor Blackmon for breach of a General Agreement of 5 Indemnity (Count III), for specific performance (Count IV), and for preliminary injunctive relief (Count V). C. Defendant SVAM’s Motion to Dismiss On October 19, 2009, defendant SVAM filed a motion to dismiss Scarborough’s Amended Complaint for lack of subject matter jurisdiction due to the absence of complete diversity between the parties, arguing that plaintiff Scarborough is a citizen of Florida, as are fifteen of the defendants listed in Scarborough’s Amended Complaint. In response, Scarborough did not argue diversity jurisdiction. Instead, Scarborough’s response raised federal question jurisdiction, arguing that (1) the Project was a “public work of the Federal Government” under 40 U.S.C. § 3131(b), and (2) that therefore the claims against Scarborough under the Payment and Performance Bonds arose under the Miller Act, 40 U.S.C. § 3133(b), pursuant to which federal courts have exclusive jurisdiction. See 40 U.S.C. § 3133(b)(3)(B).2 2 The Miller Act requires a person awarded a contract for the construction, alteration or repair of “any public building or public work of the Federal Government” to post performance and payment bonds for the protection of the United States and persons furnishing labor or material. 40 U.S.C. § 3131(b) (emphasis added). In the event of the contractor’s nonpayment for such work or material, “[e]very person that has furnished labor or material in carrying out work provided for in a contract for which a payment bond is furnished under [§] 3131 of this title . . . may bring a civil action on the payment bond for the amount unpaid at the time the civil action is brought . . . .” 40 U.S.C. § 3133(b)(1). Federal courts have exclusive jurisdiction over claims brought under the Miller Act. 40 U.S.C. § 3133(b)(3)(B). 6 The district court concluded that there was no diversity jurisdiction or federal question jurisdiction. The district court dismissed the Amended Complaint without prejudice for lack of subject matter jurisdiction. As to federal question jurisdiction, the district court noted that “Scarborough failed to plead a federal question as the basis for this Court’s jurisdiction in its Amended Complaint . . . .” The district court concluded that in any event, the Project is not a public work for the purposes of the Miller Act and as a result, it could not exercise federal question jurisdiction.3 Plaintiff Scarborough now appeals the district court’s dismissal of the Amended Complaint. Scarborough concedes lack of diversity jurisdiction and argues only federal question jurisdiction under 28 U.S.C. § 1331.4