Broadmoor v. Ernest N. Morial Authority

865 So. 2d 136, 2003 WL 22999519
CourtLouisiana Court of Appeal
DecidedDecember 22, 2003
Docket2003-C-1996
StatusPublished
Cited by2 cases

This text of 865 So. 2d 136 (Broadmoor v. Ernest N. Morial Authority) 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 v. Ernest N. Morial Authority, 865 So. 2d 136, 2003 WL 22999519 (La. Ct. App. 2003).

Opinion

865 So.2d 136 (2003)

BROADMOOR, L.L.C.
v.
ERNEST N. MORIAL NEW ORLEANS EXHIBITION HALL AUTHORITY.

No. 2003-C-1996.

Court of Appeal of Louisiana, Fourth Circuit.

December 22, 2003.

*137 Marguerite K. Kingsmill, Mark S. Senter, New Orleans, LA, for Relator, Broadmoor, L.L.C.

Michael E. Botnick, Howard E. Sinor, Jr., Ewell E. Eagan, Jr., Tina C. Santopadre, Gordon, Arata, McCollam, Duplantis & Eagan, L.L.P., New Orleans, LA, for Intervenor, W.G. Yates & Sons Construction Co./Landis Construction Co., L.L.C., A Joint Venture.

W.P. Wray, Jr., Wray & Pierce L.L.P., Baton Rouge, LA, for Amicus Curiae, Louisiana Associated General Contractors, Inc.

Kenneth M. Carter, Kenneth M. Carter, PLC, New Orleans, LA, for Intervenor, Southeast Louisiana Building and Construction Trades Council (Less and Except Plumbers and Pipefitters Local 60).

Phillip A. Wittman, Michael Q. Walshe, Jr., Julie A. Richards, Walter F. Wolf, Stone Pigman Walther Wittman, L.L.C., New Orleans, LA, for Respondent, The Ernest N. Morial New Orleans Exhibition Hall Authority And The Board of the Ernest N. Morial New Orleans Exhibition Hall Authority.

Russ M. Herman, Herman, Herman, Katz & Cotlar, New Orleans, LA, for Intervenors, *138 Frischhertz/Fisk Joiint Venture and Gallo Mechanical Contracts, Inc.

(Court composed of Judge PATRICIA RIVET MURRAY, Judge MICHAEL E. KIRBY, Judge MAX N. TOBIAS JR.).

MICHAEL E. KIRBY, Judge.

STATEMENT OF THE CASE

Broadmoor, L.L.C. seeks review of the trial court's judgment denying its request for a preliminary injunction.

This litigation arises from the bidding process for construction of Phase IV of the Ernest N. Morial New Orleans Exhibition Hall. On August 8, 2003, the Ernest N. Morial New Orleans Exhibit Hall Authority (Authority) announced its intent to receive bids on the construction of Phase IV. Bids were received and opened on October 3, 2003. Three bids were received:

Yates/Landis        $268,445,000.00
Broadmoor           $275,000,000.00
McDonnell/PLC       $278,235,000.00

The bidders were given the opportunity to review all bids. Broadmoor filed a protest to Yates/Landis' bid noting several irregularities. On October 15, 2003, the Construction Committee of the Authority held a hearing on the bids and voted to defer action on the bids to the full Authority without recommendation. The Authority held a hearing on the bids on October 22, 2003. At this hearing, the Authority was informed that Senators Boissiere and Bajoie had requested an opinion from the Attorney General on the issue of insurance provisions within a bid and the waivability of bid requirements.[1] The Authority did not accept any of the bids on that date.

Subsequently, Broadmoor filed its petition for temporary restraining order, preliminary injunction and permanent injunction on October 29, 2003. The trial court initially granted the temporary restraining order but later rescinded the order after a contradictory hearing. The Authority then accepted the bid of Yates/Landis as the lowest responsive and responsible bid and sent Yates/Landis notice of acceptance of the bid. A hearing on Broadmoor's request for a preliminary injunction was held on November 3, 2003. The trial court denied the request for a preliminary injunction, noting that while the Authority was "wrong, it was not arbitrary." Broadmoor informed the trial court of its intent to seek supervisory writs on November 12, 2003.[2] The trial court granted Broadmoor until November 22, 2003 to file its writ application. Broadmoor filed its application for supervisory writs with this Court on November 13, 2003. The Authority and Yates/Landis both filed opposition briefs on November 24, 2003. Interveners, Frischhertz/Fisk Joint Venture, Gallo Mechanical Contractors, Inc. and Southeast Louisiana Building and Construction Trade Council, filed a brief in support of the writ application on November 17, 2003. Louisiana Associated General Contractors, Inc. filed an amicus curiae brief on November 29, 2003.

DISCUSSION

Broadmoor argues that the trial court erred when it determined that the Authority was not arbitrary in its decision to accept the Yates/Landis' bid as the lowest responsive bid. Broadmoor contends that the Yates/Landis' bid is not responsive due to several irregularities: (1) failure to include a certificate of insurance or letter of insurability for builders' risk insurance; (2) failure to attend pre-bid meetings and failure to purchase full size set of bidding *139 documents; (3) failure to submit resolution of authority; (4) failure to accurately list and describe qualifications and experiences; (5) failure to submit affidavit evidencing commitment to subcontract or purchase fifteen percent of value of project from small and emerging businesses in Louisiana; and (6) failure to submit non-collusion affidavit.

Builders' Risk Insurance

Broadmoor suggests that the Yates/Landis' bid is not responsive, as it did not include a letter of insurability concerning builders' risk insurance. The Authority and Yates/Landis contend that the bid requirements did not mandate a letter of insurability concerning builders' risk insurance. Article 14 of the bid requirements state:

ARTICLE 14—INSURANCE REQUIREMENTS
14.1 Bidders shall deliver Certificates of Insurance or statement of insurability acceptable to the Owner with their bids, to demonstrate compliance with Article 11 of the Supplementary Conditions.
14.2 Failure of the Successful Bidder to deliver said Certificates of statement of insurability with the Bid may result in the Bid being deemed incomplete and non-responsive. In the event of such failure, the Owner reserves the right to offer the Contract to the next lowest responsive Bidder or re-advertise the project to request a completely new set of bids.

Article 11 of the supplementary conditions provide for the insurance and bonds that must be obtained by the contractor. Section 11.0 of Article 11 deals with the general insurance requirements. Section 11.1 sets forth the requirements for contractor's liability insurance, which includes comprehensive general liability, workers' compensation and employers' liability insurance, comprehensive automobile liability, watercraft liability and an umbrella policy. Section 11.2 provides that the Owner will also purchase liability insurance. Section 11.3 requires that the Contractor purchase and maintain property insurance, which includes "`all risk' (as defined in the policy form) insurance for physical loss or damage in the amount equal to the Contract Sum," which is also known as builders' risk insurance. Section 11.4 states that the Owner may purchase loss of use insurance. Section 11.5 mandates that the Contract provide a "good and solvent Performance Bond acceptable to the Owner in the amount of one hundred percent (100%) of the amount of the Contract Sum, to assure the faithful performance of the Contractor's duties." The section also requires the Contractor to furnish the Owner with a payment bond. Section 11.6 requires the Contractor to obtain contractual liability insurance to protect the Owner for any indemnification claims the Owner may assert.

Article 14 states that there must be an indication of compliance with all of Article 11 of the supplementary conditions. Article 14 does not specifically limit compliance to certain provisions of Article 11.

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Related

J.S. Rugg Construction, Inc. v. Ouachita Parish School Board
895 So. 2d 713 (Louisiana Court of Appeal, 2005)
Broadmoor, LLC v. ERNEST N. MORIAL EXHIBITION
867 So. 2d 651 (Supreme Court of Louisiana, 2004)

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