City of New Orleans v. Advanced Environmental Consulting, Inc.

131 So. 3d 912, 2013 La.App. 4 Cir. 0409, 2013 WL 6327480, 2013 La. App. LEXIS 2484
CourtLouisiana Court of Appeal
DecidedDecember 4, 2013
DocketNos. 2013-CA-0409, 2013-CA-0410
StatusPublished
Cited by1 cases

This text of 131 So. 3d 912 (City of New Orleans v. Advanced Environmental Consulting, Inc.) 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.

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City of New Orleans v. Advanced Environmental Consulting, Inc., 131 So. 3d 912, 2013 La.App. 4 Cir. 0409, 2013 WL 6327480, 2013 La. App. LEXIS 2484 (La. Ct. App. 2013).

Opinions

TERRI F. LOVE, Judge.

|, This appeal arises from two bid solicitations by the City of New Orleans for the removal of material from a demolished apartment complex. The City of New Orleans deemed that the lowest bidder on the second bid solicitation was non-responsible and non-responsive and disqualified the lowest bidder. An administrative hearing officer affirmed the City of New Orleans’ decision. The lowest bidder sought relief from the trial court in several forms, which included the request for a declaratory judgment. The trial court found that the lowest bidder was responsible and responsive. The trial court reversed the City of New Orleans’ decision and the administrative hearing officer’s ruling and granted a declaratory judgment in favor of the lowest bidder. We find that the trial court did not abuse its discretion in finding that the City of New Orleans’ decision that the lowest bidder on the second bid solicitation was non-responsible and non-responsive was arbitrary and capricious. Therefore, we affirm.

FACTUAL BACKGROUND AND PROCEDURAL HISTORY

The City of New Orleans (“City”) adjudicated the Higgins Gate Apartments (“Higgins”) as a public nuisance and a blighted property. Higgins was demolished without asbestos abatement, which left the former site (“Site”) of Higgins covered with debris from the demolition. The City then issued a solicitation for bids (“Bid |;>1”) on May 25, 2011, to clear the demolished debris from the Site. Bid 1 required that the contractor “assess [the] site for the presence of materials requiring special removal or otherwise not suited for landfill disposal.” Further, Bid 1 specified that “[t]he Contractor will test all assigned structures and facilities for Regulated Asbestos Containing Material.”

Hamp’s Enterprises, L.L.C. (“Hamp’s”) and Advanced Environmental Consulting, Inc. f/k/a Advanced Environmental Consulting, L.L.C. (“Advanced”), combined as [915]*915a joint venture1 (“Hamp’s/AEC”), were awarded the project as the lowest responsible bidder with a bid of $508,100.002 on July 18, 2011. The award letter included the following: “DEQ has already determined that this debris is RACM and must be managed, in accordance with LAC 83:111.5151.” The City’s Notice to Proceed, dated October 4, 2011, was signed by Charlie Hampton for Hamp’s/AEC on October 10, 2011. Hamp’s/AEC began removing the demolition debris and was required to complete removal within sixty days.

The Louisiana Department of Environmental Quality (“LDEQ”) and Hamp’s/ AEC began to disagree upon the proper method for the removal of the demolition debris and the percentage of the demolition debris that was Regulated Asbestos Contaminated Material3 (“RACM”). By January 20, 2012, the LDEQ threatened Hamp’s/AEC with “civil penalties of up to $32,000 per day” if it failed pto dispose of all of the demolition debris “in compliance with LAC 33:III.5151.J.” The LDEQ prevented Hamp’s/AEC from continuing to clear the Site after disapproving of Hamp’s/AEC proposed method of removal and attempt to comply with the LDEQ’s instructions.

Hamp’s/AEC requested an adjudicatory hearing on April 20, 2012, regarding “whether the entire demolition debris pile” at the Site was properly classified as RACM and whether “LAC 33:111.5151.-J.l.c” applies to the Site. On May 11, 2012, the City informed Hamp’s/AEC that it was in default on the contract for Bid 1.

The City filed a Petition for Damages and Declaratory Judgment against Hamp’s/AEC and Hartford Fire Insurance Company (“Hartford”), as the surety that provided the bid bond, “seeking damages, attorney’s fees, and costs for multiple egregious breaches of contract and bad faith failures to perform under a contract to remove hazardous, asbestos-containing demolition debris.”

While the City’s lawsuit was pending, the City issued a second solicitation for bids (“Bid 2”) to clear the Site. Hamp’s/ AEC was, again, the lowest bidder. However, the City mailed a letter dated August 15, 2012, informing Hamp’s/AEC that it was a non-responsible bidder. On August 16, 2012, the City e-mailed Mr. Hampton and attached an interoffice memorandum, both of which stated that Hamp’s/AEC was also deemed a non-responsive bidder. Hamp’s/AEC requested a hearing to refute the disqualification.

A hearing occurred on October 1, 2012, and the administrative hearing officer subsequently affirmed the City’s decisions. Hamp’s/AEC then filed a Verified Petition for Injunction, Judicial Review of Administrative Ruling, Declaratory Judgment, and a Writ of Mandamus against the City and Mary Kay 14Kleinp eter-Z amor a, in her official capacity as the Chief Procurement [916]*916Officer of the City of New Orleans, seeking to enjoin the City from awarding Bid 2 to another contractor, a declaration that Hamp’s/AEC was the lowest responsible and responsive bidder on Bid 2, and a writ of mandamus directing the City to award the contract for Bid 2 to Hamp’s/AEC. Thereafter, the parties filed a Consent Motion to Transfer and Consolidate the City’s and Hamp’s/AEC’s lawsuits, which was granted. The trial court granted Hamp’s/ AEC’s “Verified Petition for Injunction, Judicial Review of Administrative Ruling, Declaratory Judgment and Writ of Mandamus” and entered “a Declaratory Judgment as follows:”

1. that AEC/Hamp’s is a responsive bidder to City Bid No. 2144-01829.
2. Any contract for the project awarded to and/or executed with a bidder other than AEC/Hamp’s is null and void.
8. That the contract for the Project be awarded to AEC/Hamp’s as the lowest responsive and responsible bidder.

The City’s suspensive appeal followed.

The City contends that the trial court erred by reversing the decision of the administrative hearing officer and by failing to deem Hamp’s/AEC a non-responsive bidder.

STANDARD OF REVIEW

“Courts of record within their respective jurisdictions may declare rights, status, and other legal relations whether or not further relief is or could be claimed.” La. C.C.P. art. 1871. “Use of the word ‘may,’ rather than ‘shall’ evidences the legislature’s intent to afford the trial court substantial discretion in deciding whether or not to render declaratory judgment.” In re Interment of LoCicero, 05-1051, p. 4 (La.App. 4 Cir. 5/31/06), 933 So.2d 883, 886, quoting La. C.C.P. art. 1871. “A declaratory judgment is a vehicle used to ‘declare rights, status, and other legal relations whether or not further relief is or could be claimed.’ ” Lo-Cicero, 05-1051, p. 5, 933 So.2d at 886, quoting La. C.C.P. art. 1874. “A trial court must render declaratory judgment where such judgment would terminate uncertainty or controversy giving rise to proceeding; however, within its sound discretion, it may choose or refuse to render declaratory judgment which would not terminate such uncertainty.” LoCicero, 05-1051, p. 5, 933 So.2d at 886.

Appellate courts review a trial court’s grant or denial of a declaratory judgment by determining whether the trial court abused its discretion. Battle v. Watson Invs., Inc., 06-0202, p. 2 (La.App. 4 Cir. 11/21/06), 946 So.2d 226, 228. “Moreover, the Louisiana Supreme Court has held that ‘[tjrial courts are vested with wide discretion in deciding whether to grant or refuse declaratory relief.’ ” Id., 06-0202, p. 3, 946 So.2d at 228, quoting Edgar Benjamin Fontaine Testamentary Trust v.

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131 So. 3d 912, 2013 La.App. 4 Cir. 0409, 2013 WL 6327480, 2013 La. App. LEXIS 2484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-new-orleans-v-advanced-environmental-consulting-inc-lactapp-2013.