Cajun Constructors, Inc. v. Ecoproduct Solutions, LP

182 So. 3d 149, 2015 La.App. 1 Cir. 0049, 2015 La. App. LEXIS 1737, 2015 WL 5474883
CourtLouisiana Court of Appeal
DecidedSeptember 18, 2015
DocketNo. 2015 CA 0049
StatusPublished
Cited by6 cases

This text of 182 So. 3d 149 (Cajun Constructors, Inc. v. Ecoproduct Solutions, LP) 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
Cajun Constructors, Inc. v. Ecoproduct Solutions, LP, 182 So. 3d 149, 2015 La.App. 1 Cir. 0049, 2015 La. App. LEXIS 1737, 2015 WL 5474883 (La. Ct. App. 2015).

Opinion

DRAKE, J.

Un this dispute concerning the scope and payment for work performed constructing, a chemical processing plant, Cajun Constructors, Inc. (Cajun) appeals a motion for summary judgment granted in favor of Syngenta Crop Protection, Inc. (Syngenta), dismissing Cajun’s claims against Syngenta, with prejudice. Cajun also seeks review of the trial court’s interlocutory ruling denying its motion for partial summary judgment. For the reasons that follow, we affirm.

FACTS AND PROCEDURAL HISTORY

This case involves a state law contract dispute between two Louisiana companies and a lien filed pursuant to the Louisiana Private Works Act (LPWA). See La. R.S. 9:4801 et seq. Syngenta owns and operates a large industrial plant in St. Gabriel, Louisiana in Iberville Parish (Syngenta plant), that synthesizes and formulates certain compounds used in products for agricultural use. One of the byproducts of operations at the Syngenta plant is hydrochloric acid. Around 2003, Syngenta was approached by individuals from Texas who asserted they-could convert the hydrochloric acid by-product. Syngenta produced at its plant into marketable liquid calcium chloride' (CaCl2). These individuals eventually formed an entity called EcoProduct.1

Subsequently, Syngénta and EcoProduct entered into a lengthy, detailed agreement dated September 29, 2004. The agreement granted to EcoProduct a lease of approximately five acres of immovable property within the Syngenta plant for the construction of a CaCl2‘ conversion facility (CaCl2 facility). The 2004 agreement between Syrigenta and EcoProduct stated that the CaCL facility would be “engineered, designed, constructed!,] ánd owned by EcoProduct' on Syngenta | ^property leased to EcoProduct.” During Phase I of the agreement, EcoProduct would construct' the' CaCl2 facility; during Phase II, EcoProduct would complete the start-up of the CaCl2 facility; and during Phase III, the CaCl2 facility would be fully operational and commercial.

EcoProduct issued a request to Cajun to bid on the project to build the CaCl2 facility. Ón June 30, 2005, EcoProduct issued three separate purchase orders to Cajun to perform the (i) site preparation work; (ii) fabrication and erection of structural steel; and (iii) mechanical construction services required for the construction of the CaCl2 [152]*152facility. The bid proposal and other documents pertinent to the construction of the facility.identified EcoProduct as “owner” and Cajun as “contractor.” EcoProduct is not a licensed contractor in the State of Louisiana.2

Construction of the facility, Phase I, was completed by December 2005. Cajun submitted . invoices for payment to EcoPro-duct, identifying EcoProduct as owner. Cajun was paid by EcoProduct for the work it had performed pursuant.to the June 30, 2005 purchase orders, less a re-tainage amount for the mechanical construction services, which was disputed by EcoProduct.

Following the completion of construction of the CaCl2 facility, EcoProduct asked Cajun to assist with the stai’t-up of the facility, Phase II. EcoProduct agreed that Cajun would be paid on a time .and material basis for the start-up work it performed. Cajun subsequently performed start-up related work on the CaCl2 facility, but contended that EcoProduct failed to pay all of the invoices submitted for the start-up work, Specifically, Cajun contends Eco-Product failed to pay fourteen of twenty-eight invoices submitted for the start-up work. In total, Cajun claimed ⅜ was owed approximately $1.5 million for the June 30, 2005 purchase order retainage and for its performance of start-up work on the CaCl2 facility.

|4On August 8, 2006, Cajun timely recorded a statement of claim and privilege against- Syngenta’s property for the sums allegedly owed to Cajun for woi’k it performed on the CaCl2 facility.

On October 13, 2006, Cajun filed a petition to enforce lien. and for damages against EcoProduct, Syngenta, and numerous other parties3 in the Eighteenth, Judicial District Court for the State of Louisiana. On November 22, 2006, Cajun filed an amended statement of claim and privilege, increasing its-claim to $1,547,152.08. Cajun also sought damages for breach of contract, fraudulent inducement, negligent misrepresentation, unjust enrichment, as well as costs and attorneys’ fees. EcoPro-duct removed the case to the United States District Court for the Middle District of Louisiana on the basis of diversity jurisdiction; however, the case was remanded to state court in May 2007.

By written correspondence dated October 16, 2007, Syngenta terminated the September 29, 2004 agreement with Eco-Product for numerous breaches, including the fact that the Ca^ facility was not fully operational and commercial. Syn-genta demanded that EcoProduct begin the process of removing the CaCl2 facility from the. Syngenta plant. When EcoPro-duct failed to remove its CaCl2 facility, Syngenta noticed EcoProduct, via written correspondence dated April 3, 2008, that Syngenta was taking ownership of Eeo-Product’s CaCl2 facility.

Syngenta filed a motion for summary judgment in February 2009, addressing all of Cajun’s claims. The trial court denied Syngenta’s motion without prejudice so as to afford the parties opportunity for further discovery. . . ■

Cajun filed its first supplemental, amended, and restated petition to enforce lien and for damages, on July 23, 2009, adding claims for recovery based on intentional interference with contractual relations, single- business entity doctrine,-Land [153]*153a joint-venture theory.4 Cajun subsequently filed its second supplemental, amended, and restated petition to enforce lien and for damages on October 19, 2009, adding a claim for attorneys’ fees and costs pursuant to the open .account, statute.5 .

On August 2, 2010, EcoProduct filed a voluntary petition for bankruptcy in the United States Bankruptcy Court .for the Southern District of Texas.6 See Í,1 U.S.C. § 101 et seq. Based on EcoProduct’s bankruptcy filing, on November 12, 2010, Syngenta removed the case to the United States District Court for the Middle District of Louisiana, stating in its notice of removal that Syngenta intended to transfer the instant case to the bankruptcy proceeding in Texas.7

Following a motion for modification of the automatic stay filed by Cajun,, the Texas bankruptcy court entered an order on April 8, 2011, permitting Cajun to resume litigation against Syngenta in the United States District Court for the’ Middle District of Louisiana. Syngenta had also requested a modification of the stay, requesting that it be permitted to initiate litigation addressing the ownership and the validity and ranking of encumbrances on the CaCl2 facility.

Cajun then filed a motion'to transfer venue to the Texas bankruptcy court. Syngenta . subsequently dismissed - its claims against EcoProduct’s bankruptcy estate and opposed the transfer of the case. The United States District Court for |fithe Middle .District of Louisiana remanded the case to state court on August 13, 2012.8

Syngenta filed a motion for partial summary judgment on April 25, 2013, seeking dismissal of Cajun’s joint venture'claims.

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182 So. 3d 149, 2015 La.App. 1 Cir. 0049, 2015 La. App. LEXIS 1737, 2015 WL 5474883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cajun-constructors-inc-v-ecoproduct-solutions-lp-lactapp-2015.