Broadmoor, LLC v. ERNEST N. MORIAL

896 So. 2d 251, 2005 WL 372513
CourtLouisiana Court of Appeal
DecidedFebruary 2, 2005
Docket2004-CA-1274, 2004-CA-1275, 2004-CA-1276
StatusPublished
Cited by2 cases

This text of 896 So. 2d 251 (Broadmoor, LLC v. ERNEST N. MORIAL) 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
Broadmoor, LLC v. ERNEST N. MORIAL, 896 So. 2d 251, 2005 WL 372513 (La. Ct. App. 2005).

Opinion

896 So.2d 251 (2005)

BROADMOOR, L.L.C.
v.
ERNEST N. MORIAL NEW ORLEANS EXHIBITION HALL AUTHORITY.
McDonnel/PCL, a Joint Venture
v.
The Ernest N. Morial New Orleans Exhibition Hall Authority by and through its Board of Commissioners.
McDonnel/PCL, a Joint Venture
v.
The Ernest N. Morial New Orleans Exhibition Hall Authority by and through its Board Of Commissioners.

Nos. 2004-CA-1274, 2004-CA-1275, 2004-CA-1276.

Court of Appeal of Louisiana, Fourth Circuit.

February 2, 2005.

*252 Marguerite K. Kingsmill, John M. Dubreuil, J. Geoffrey Ormsby, Kingsmill Riess, L.L.C., and Harry T. Lemmon, New Orleans, LA, for Plaintiff/Appellee.

Leonard L. Levenson, Colleen Boyle-Gannon, New Orleans, LA, for Plaintiff/Appellant.

Roy C. Cheatwood, Paul L. Peyronnin, Baker Donelson Bearman Caldwell & Berkowitz, PC, and Bernard L. Charbonnet, Jr., Meri M. Hartley, Law Office of Bernard L. Charbonnet, Jr., New Orleans, LA, for Defendant/Appellant.

Howard E. Sinor, Jr., Ewell E. Eagan, Jr., Michael E. Botnick, Tina Crawford White, Gordon Arata McCollam Duplantis & Eagan, LLP, New Orleans, LA, for Intervenor/Appellant.

Kenneth M. Carter, Kenneth M. Carter, PLD, New Orleans, LA, and Russ M. Herman, Herman Herman Katz & Cotlar, LLP, New Orleans, LA, for Intervenor/Appellee.

Sherry M. Landry, City Attorney, Evelyn F. Pugh, Chief Deputy City Attorney, Deborah M. Henson, Assistant City Attorney, New Orleans, LA, Amicus Curiae (City of New Orleans).

W.P. Wray, Jr., Wray & Pierce, LLP, Baton Rouge, LA, Amicus Curiae (Louisiana Associated General Contractors, Inc.).

(Court composed of Judge CHARLES R. JONES, Judge TERRI F. LOVE, Judge DAVID S. GORBATY).

DAVID S. GORBATY, Judge.

FACTS AND PROCEDURAL HISTORY

Three bidders competed for the Ernest N. Morial New Orleans Exhibition Hall Authority ("Authority") Phase IV expansion project. The bids were received, and the Authority examined the bids, evaluated them, classified them, and tabulated them. The bid tabulation reflected W.G. Yates & Sons Construction Company/ Landis Construction Co., L.L.C., A Joint Venture ("Yates/Landis") as the lowest numerical bidder, Broadmoor, L.L.C. ("Broadmoor") as the second lowest numerical bidder, and McDonnel/PCL, a Joint Venture ("McDonnel") *253 as the highest numerical bidder. Yates Landis was awarded the contract. Broadmoor protested the award of the contract to Yates and sought judicial intervention. Ultimately, the Louisiana Supreme Court adjudicated the contract award of the Authority to Yates/Landis to be violative of the Public Bid Law, and the award was nullified.

The Authority then held a meeting, at which it rejected all remaining bids. Broadmoor subsequently sought a hearing in Civil District Court for the Parish of Orleans, arguing that it should have been awarded the contract as the remaining low responsible bidder. Broadmoor further asserted that the Authority was neither authorized nor empowered to reject the bids after the expiration of the time period provided for in La. R.S. 38:2215. Broadmoor also contended that the Authority was bound, beyond any discretion, to award the contract to Broadmoor, the "lowest responsible bidder," under the law on the authority of La. R.S. 38:2214 and New Orleans Rosenbush Claims Service, Inc. v. City of New Orleans, 94-2223 (La.4/10/95), 653 So.2d 538 (hereafter "Rosenbush"). The trial court found, as a matter of fact, that the Authority improperly rejected all bids, and that under section 2215, it had neither the power nor the authority to do so. In written reasons, the Court found, "[O]n April 8, 2004, the Authority convened in executive session and voted to reject all remaining bids and readvertise the project."

The Court held that where the public entity either awards the contract as in the case at bar or fails to act as in Rosenbush, the remaining bids cannot be rejected and readvertised after the statutory period. Based on the jurisprudence, the trial court found that the intent of Section 2215 of the Public Bid Law is to finalize the awarding of public contracts in an expeditious manner. The trial court ordered that the contract be awarded to Broadmoor.

The Authority subsequently filed this appeal. McDonnel and Yates/Landis also filed appeals. As well, McDonnel answered the appeals of the Authority, Yates/Landis, and the answer to the appeal filed by Broadmoor. Broadmoor answered the appeals of the Authority, McDonnel, and Yates/Landis and filed cross-appeals to the appeals of Yates/Landis and McDonnel. Frischhertz/Fisk Joint Venture, Gallo Mechanical Contractors, Inc., and the Southeast Louisiana Building and Construction Trade Council ("Frischhertz/Fisk"), intervenors below, joined in and adopted Broadmoor's cross-appeals as well as Broadmoor's answers to the appeals.

DISCUSSION

Responsiveness of Broadmoor's bid

The Authority argues that the trial court's judgment is based on its flawed interpretation of La. R.S. 38:2215 as prohibiting the Authority from rejecting non-responsive bids because forty-five days had passed since the bids were opened. The trial court erred because the Authority did not reject all bids for "cause" pursuant to Section 2214(B) such that the 45-day period of Section 2215 was triggered, as Broadmoor argued below, the Authority urges. The record reflects that the Authority rejected both remaining bids (the Broadmoor and McDonnel bids) as non-responsive under Section 2212(A)(1)(a).

Central to the Authority's argument is the contention that Broadmoor's bid was non-responsive. First, the Authority argues that Broadmoor's bid bond is defective because it is "not countersigned." However, the requisite of countersigning bid bonds was repealed in July 2001 and is no longer required under the Public Bid Law. La.R.S. 38:2218B repealed by Acts *254 2001 No. 138 § 1, eff. July 1, 2001. Further, the Louisiana Attorney General has previously opined that the countersigning of a bid bond is of no consequence in evaluating a bid. La. Attorney General Op. No. 97-89, 1997 WL 529810 (La.A.G.) Even so, Warren Perkins, the individual who signed the bid bond, is a Louisiana licensed resident agent and an attorney-in-fact for the surety. Considering his authority, his signature on the bid bond satisfied any requirement that ever existed that the bid bond be countersigned.

The Authority next argues that Broadmoor's $25.00 late payment for the annual fee to Secretary of State renders the bid non-responsive. However, the fees payable to the Secretary of State are not requirements of the Public Bid Law. In addition, the Authority cites to the wrong statute: L.S.A. 12:163(F)(2) does not apply to limited liability companies. Even so, L.S.A. 12:1308(E) mandates that the cure, a $25.00 annual late fee, is retroactive.

The Authority contends that it can now reject Broadmoor's bid because Broadmoor did not "type out" John Stewart's name and title below every signature on every page of the bid. This is not a requirement of the Advertisement for Bid or Bid Form. Any alleged "typos" could not render the bid nonresponsive. Further, the provision cited by the Authority pertains to the "execution of bids" and states: "All names and titles must be typed or printed below the signature," referring to the signature on the execution page. Broadmoor complied with this requirement.

Next, the Authority argues that Broadmoor's bid was not signed by the proper person.

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