United States District Court, D. Hawaii
FINDINGS OF FACT, CONCLUSIONS OF LAW, AND
Sanact, Inc., doing business as Roto Rooter,
(“Sanact”) filed a Complaint against Defendant
U.S. Pipelining LLC (“US Pipelining”).
U.S. Pipelining served as a subcontractor to the general
contractor, Johnson Controls, Inc., on a construction project
at the Kaanapali Alii condominium complex on the island of
Sanact provided Defendant U.S. Pipelining with specialized
subcontractor work and is seeking to recover payment for
services that were furnished to Defendant U.S. Pipelining.
Parties stipulated to submit the case for decision by the
Court based on their Trial Briefs and a set of 20 jointly
extent any findings of fact are more properly characterized
as conclusions of law, or any conclusions of law are more
properly characterized as findings of fact, they shall be so
Sanact, Inc. (“Sanact”), a California
corporation, is registered to do business in the State of
Hawaii as a foreign corporation, and does business under the
tradename “Roto Rooter.” 2. Defendant U.S.
Pipelining LLC (“US Pipelining”), a Pennsylvania
limited liability company, is registered to do business in
the State of Hawaii as a foreign limited liability company.
Association of Apartment Owners of Kaanapali Alii, a
condominium complex on the island of Maui, hired Johnson
Controls, Inc. as the general contractor to do a renovation
on the complex.
Johnson Controls, Inc. retained U.S. Pipelining as a
subcontractor to internally reline more than 27, 000 feet of
vertical stacks of plumbing pipes. The work involved four
buildings, each at least ten floors high.
work was performed at 50 Nohea Kai Drive, Lahaina, Maui,
Hawaii 96761, otherwise identified as Tax Map Key No.
(2)4-4-008-022-0000 (“the Property”) in the
County of Maui, State of Hawaii.
plumbing pipes at the Property were in poor condition. The
pipes required extensive hydro-jetting and other specialty
cleaning methods prior to lining and repair by U.S.
BETWEEN U.S. PIPELINING AND SANACT
During the course of the Project, U.S. Pipelining found it
necessary to retain the services of Sanact in support of U.S.
Pipelining's work at the Property.
Jeremy Bowman was U.S. Pipelining's President and was the
primary person responsible for engaging Sanact.
August 2015, Jeremy Bowman asked Rodney Wray, the President
of Sanact, to perform pipe cleaning services on the Property.
The pipe cleaning services required Sanact to provide labor
and equipment to operate drain cleaning machines, a
trail-jetter, a hydro-jetter, and to perform plumbing repair
Specifically, Sanact was instructed by U.S. Pipelining to
clean out all of the rust and calcium deposits on all of the
lines in the Project. Sanact was required to use a camera to
verify that the lines were clean and to present U.S.
Pipelining with a DVD containing photographic evidence that
each line was cleared so that U.S. Pipelining could reline
Parties agreed that Sanact would bill U.S. Pipelining on a
time-basis for actual work performed, in return for which
U.S. Pipelining agreed to pay Sanact in full per the
Sanact's cleaning process was an essential step necessary
before U.S. Pipelining could reline the pipes.
written contract was entered into between U.S. Pipelining and
Sanact performed as requested by providing manpower,
materials, and equipment for the Project, dedicating laborers
during both day and night shifts. Sanact completed the work
by operating drain cleaning machines, a trail-jetter, a
hydro-jetter, and conducting various plumbing repair services
at the Property from September 2, 2015 through November 9,
2015 as requested by U.S. Pipelining.
U.S. Pipelining has admitted that there were no significant
deficiencies in Sanact's work for U.S. Pipelining,
“other than minor issues which were addressed and
rectified in the course of ordinary business.”
(Defendant U.S. Pipelining's Answers to Interrogatories
at p. 10, Exhibit 8).
There has been no objection by Johnson Controls, Inc. to any
of the work performed by Sanact.
Sanact performed all the work on the Property requested by
SENT FROM SANACT TO U.S. PIPELINING
Sanact regularly presented invoices to U.S. Pipelining and
sought payment for its work on the Property. (Exhibits 1-4).
invoices charged for each laborer at a rate of $150.00 per
hour for the first eight hours per day and $172.50 per hour
after eight hours of work. (Exhibit 2).
invoices provided that, “[i]f not paid within 30 days
following the date indicated above, a service charge of 11/2%
per month will be charged on overdue accounts, which is 18%
annually.” (Exhibit 3).
Sanact sent U.S. Pipelining invoices for each day of work
performed. The date on the invoice was the same date that the
work was performed.
Sanact sent U.S. Pipelining invoices for all of the work
performed from September 2, 2015 through November 9, 2015.
PIPELINING PAID SANACT FOR WORK SANACT COMPLETED FROM
SEPTEMBER 2, 2015 TO OCTOBER 5, 2015 IN ACCORDANCE WITH THE
U.S. Pipelining paid Sanact a total of $94, 639.60 for work
Sanact performed during the time period from September 2,
2015 through October 5, 2015. (Exhibit 4).
October 1, 2015, U.S. Pipelining made a payment of $9, 140,
65 for the invoices dated September 14, 17, 18 and 21, 2015.
October 5, 2015, U.S. Pipelining made a payment of $4, 114.59
for the invoices dated September 2 and 10, 2015. (Exhibit 4).
October 28, 2015, U.S. Pipelining made a payment of $81,
384.36 for the invoices dated September 21, 22, 23, 25, 26,
28, 29, and 30, 2015, and October 1, 2, 3, and 5, 2015.
PIPELINING DID NOT PAY SANACT FOR WORK SANACT COMPLETED FROM
OCTOBER 6, 2015 TO NOVEMBER 9, 2015
U.S. Pipelining has not paid for work performed by Sanact
from October 6, 2015 through November 9, 2015.
U.S. Pipelining has not made any further payments to Sanact
after its last ...