BAMBURG STEEL BLDS., INC. v. Lawrence Gen. Corp.

817 So. 2d 427, 2002 WL 892154
CourtLouisiana Court of Appeal
DecidedMay 8, 2002
Docket36,005-CA
StatusPublished
Cited by13 cases

This text of 817 So. 2d 427 (BAMBURG STEEL BLDS., INC. v. Lawrence Gen. Corp.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BAMBURG STEEL BLDS., INC. v. Lawrence Gen. Corp., 817 So. 2d 427, 2002 WL 892154 (La. Ct. App. 2002).

Opinion

817 So.2d 427 (2002)

BAMBURG STEEL BUILDINGS, INC., Plaintiff-Appellee,
v.
LAWRENCE GENERAL CORPORATION and Caldwell Parish School Board, Defendants-Appellants.

No. 36,005-CA.

Court of Appeal of Louisiana, Second Circuit.

May 8, 2002.

*429 Iley H. Evans, Caldwell Parish District Attorney, Columbia, for Appellant, Caldwell Parish School Board.

Carl B. Duke, Jr., Assistant District Attorney, Donald L. Kneipp, Monroe, for Appellee.

Before BROWN, PEATROSS & KOSTELKA, JJ.

PEATROSS, J.

This appeal arises from a judgment of the trial court in favor of general contractor Bamburg Steel Buildings, Inc. ("Bamburg") and against Caldwell Parish School Board ("School Board") for $275,111 (representing the amount sought by Bamburg for completion of the rebuilding of Kelly Elementary School located in Caldwell Parish), less a credit of $149,000 (representing funds from the Louisiana Insurance Guaranty Association), with legal interest. The School Board appeals, asserting nine assignments of error. For the reasons stated herein, we reverse the judgment of the trial court and render judgment in favor of Defendant School Board.

FACTS

In May 1993, Kelly Elementary School ("Kelly"), located in Caldwell Parish, was struck by lightning and destroyed by fire. The loss was covered by a contract of insurance between United Community Insurance Company ("UCIC") and the School Board. The insurance policy provided for four "options" in the event of such loss:

4. Loss Payment
a. In the event of loss or damage covered by this Coverage Form, at our option, we will either:
(1) Pay the value of lost or damaged property;
(2) Pay the cost of repairing or replacing the lost or damaged property;
(3) Take all or any part of the property at an agreed or appraised value; or
(4) Repair, rebuild or replace the property with other property of like kind and quality.

The parties dispute whether UCIC or the School Board was entitled to, and actually made, the election between the above options; but, there is no dispute that the option chosen was for UCIC to rebuild the structure.

*430 UCIC hired its sister corporation, Lawrence General Corporation[1] ("Lawrence General") to consult and assist UCIC on issues including whether or not the school could and should be rebuilt, assessing the total loss to the School Board and on-site adjusting. Once the decision was made to rebuild, Gerald Gesser was hired as the architect for the project and Bamburg was selected as the general contractor. A contract of construction was executed in Ouachita Parish on March 22, 1994, with Lawrence General listed as the owner and Bamburg as the general contractor. The School Board was not a party to the contract of construction.

During the construction process, four applications for payment were submitted by Bamburg to Lawrence General, the first three of which were paid in full by UCIC. The fourth application for payment, however, was not paid by UCIC as that entity, along with Lawrence General, had been experiencing financial difficulties and ultimately went into receivership in the state of New York. Consequently, neither Bamburg nor Mr. Gesser was fully compensated for work on the project. Bamburg subsequently filed suit against UCIC, Lawrence General and the School Board asserting three causes of action: (1) breach of contract, (2) unfair trade practices and (3) unjust enrichment.

The School Board then requested and received $149,000 from the Louisiana Insurance Guaranty Association ("LIGA") to assist in paying Bamburg. In exchange for the LIGA funds and the School Board's agreement to use its best efforts to obtain funds from legislative sources, Bamburg agreed to dismiss its suit against the School Board and further agreed to a forum selection clause providing that any additional litigation would be brought in Caldwell Parish. The parties disagree as to the diligence of the School Board to obtain a legislative appropriation, but agree that none was secured. Bamburg maintained its suit in Ouachita Parish against the School Board and Lawrence General, which was in bankruptcy by this time in New York. All proceedings against Lawrence General, therefore, were automatically stayed. 11 U.S.C.A. § 362. UCIC was released from the law suit with the payment of the LIGA funds. The action against the School Board proceeded.

ACTION OF THE TRIAL COURT

Two pretrial rulings of the trial court have been raised as issues on appeal. First, the School Board filed a "Motion to Dismiss or Transfer" seeking a dismissal or transfer of the suit from Ouachita Parish to Caldwell Parish under the terms of the above-mentioned forum selection clause in the settlement agreement. The trial court denied the motion, finding that venue was proper in Ouachita Parish. Second, at the opening of trial, the School Board objected to proceeding in the absence of Lawrence General, arguing that Lawrence General was a necessary and indispensable party, made unavailable due to the automatic stay. After discussion with counsel on this issue, the trial court allowed the trial to proceed.

Trial commenced with Bamburg claiming that the School Board was contractually obligated because Lawrence General was its agent, which bound the School Board for the obligation. As previously stated, in the alternative, Bamburg pled unjust enrichment and unfair trade practices. At the close of Bamburg's evidence, the trial court granted a directed verdict in favor of the School Board on *431 the unfair trade practices claim. Ultimately, however, the trial court found that the School Board was "intimately involved" in the rebuilding project and that, as far as Bamburg was concerned, an agency relationship was implied between Lawrence General and the School Board. Judgment was cast in favor of Bamburg in the amount of $275,111, less a credit of $149,900 (the LIGA funds), with legal interest. The issue of unjust enrichment was not reached or discussed by the trial court.

DISCUSSION

As previously stated, the School Board has assigned nine alleged errors on the part of the trial court in this case. In light of our decision in this appeal to reverse the judgment of the trial court and render judgment in favor of the School Board, we pretermit any discussion of certain pre-trial and evidentiary rulings raised by the School Board. As a preliminary matter, however, we will briefly address the assignments of error regarding venue.

Venue

The denial of the motion to transfer the suit from Ouachita to Caldwell Parish was clearly an adverse ruling for the School Board; however, the School Board did not appeal that interlocutory judgment. It is a well-established rule that the overruling of an exception to venue may cause irreparable harm and, therefore, is an appealable interlocutory Judgment either by ordinary appeal under La. C.C.P. art.2083 or through the supervisory writ process under La. C.C.P. art. 2201. See also Chambers v. LeBlanc, 598 So.2d 337 (La.1992); Danny Weaver Logging, Inc. v. Norwel Equipment Company, 33,793 (La.App.2d Cir.8/23/00), 766 So.2d 701; Caldwell v. VAC Federal Credit Union, 545 So.2d 697 (La.App. 2d Cir. 1989), and cases cited therein. This is so because the effect of such a judgment may be litigating a case in a parish of improper venue, which cannot, as a practical matter, be corrected on appeal. Danny Weaver Logging, supra; Caldwell, supra.

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Bluebook (online)
817 So. 2d 427, 2002 WL 892154, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bamburg-steel-blds-inc-v-lawrence-gen-corp-lactapp-2002.