Crochet Equipment v. Board of Sup'rs

597 So. 2d 562, 1992 WL 46328
CourtLouisiana Court of Appeal
DecidedMarch 6, 1992
Docket91 CW 0834
StatusPublished
Cited by5 cases

This text of 597 So. 2d 562 (Crochet Equipment v. Board of Sup'rs) 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
Crochet Equipment v. Board of Sup'rs, 597 So. 2d 562, 1992 WL 46328 (La. Ct. App. 1992).

Opinion

597 So.2d 562 (1992)

CROCHET EQUIPMENT COMPANY, INC.
v.
The BOARD OF SUPERVISORS OF the LOUISIANA STATE UNIVERSITY and Agricultural and Mechanical College, as Administrators of and d/b/a Louisiana State University Medical Center.

No. 91 CW 0834.

Court of Appeal of Louisiana, First Circuit.

March 6, 1992.
Writ Denied May 1, 1992.

Brian A. Eddington, Baton Rouge, for plaintiff Crochet Equipment Co. Inc.

Mary E. Tharp, Baton Rouge, for defendant Board of Supervisors, LSU, etc.

Before WATKINS, CARTER and FOIL, JJ.

CARTER, Judge.

This matter is before the court on supervisory writs of certiorari and review to determine whether petitioner is entitled to a trial de novo in the district court in this suit for breach of contract.[1]

*563 BACKGROUND

On or about March 30, 1990, petitioner, Crochet Equipment Company, Inc. (Crochet), entered into a contract with the Louisiana State University Medical Center (Medical Center) to furnish and install a medical waste incinerator. Subsequently, on July 5, 1990, the Medical Center amended its purchase order to include the furnishing and installation of an ash removal system in conjunction with the incinerator. Thereafter, on or about November 5, 1990, the Medical Center cancelled its contract with Crochet. The Medical Center claimed that Crochet breached the contract by deviating from the specifications.

Crochet protested the termination of the contract to the director of purchasing at the Medical Center. After a hearing, which was conducted on December 18, 1990,[2] the director of purchasing for the Medical Center determined that Crochet breached its contract with the Medical Center in that Crochet failed to construct the incinerator pursuant to bid specifications. The director of purchasing further found that, after being notified of its non-compliance with the bid specifications, Crochet failed to correct the deviations within the time period allowed. Additionally, the director of purchasing determined that Crochet violated the change order in the amended contract, which added the ash removal system. According to the director of purchasing, the change order required that the lower chamber of the incinerator be constructed with a monolithic refractory rather than a brick refractory, which was less expensive. Crochet was to allow the appropriate credit for the change. However, the incinerator was constructed with a monolithic refractory in the upper and lower chambers and the credit quoted by Crochet reflected the change to both chambers. Accordingly, the director of purchasing determined that the Medical Center was not arbitrary or capricious in terminating the contract with Crochet. The director of purchasing notified Crochet of his decision by letter dated December 27, 1990.

Pursuant to LSA-R.S. 39:1685, Crochet appealed this decision to the Commissioner of Administration (Commissioner). The Commissioner, in affirming the decision of the director of purchasing, determined that the Medical Center could not lawfully negotiate a change in the contract terms different from those set forth in the original bid specifications without a new advertisement to all bidders. The Commissioner stated that "[t]o allow a public entity to award a contract based on one set of specifications and then negotiate a contract for a (sic) item based on another set of specifications, without competitive bidding would violate the very principle [of] the procurement laws of this state." By letter dated January 29, 1991, Crochet was notified of the Commissioner's decision.

Thereafter, on March 12, 1991, Crochet filed a petition in the 19th Judicial District Court against the Board of Supervisors (Board) of the Louisiana State University and Agricultural and Mechanical College, as Administrators of and d/b/a Louisiana State University Medical Center. In its petition, Crochet alleged that the Medical Center's termination of its contract was without just cause and that the termination of the contract by the Medical Center constituted a breach of contract. In response, the Board filed dilatory exceptions raising the objections of vagueness and nonjoinder of a necessary party (the State of Louisiana) and a peremptory exception raising the objection of no cause of action. By judgment dated May 7, 1991, the trial court overruled the dilatory exception raising the objection of vagueness, granted the dilatory exception raising the objection of nonjoinder of a necessary party, and ordered Crochet to join the State of Louisiana as a party defendant. The exception raising the objection of no cause of action was overruled, but the trial court determined that Crochet was entitled to a trial de novo.

*564 From this adverse judgment, the Board applied to this court for supervisory writs of certiorari and review. On September 3, 1991, this court denied the writ insofar as it related to the judgment overruling the peremptory exception raising the objection of no cause of action. However, this court granted certiorari as to the issue of Crochet's entitlement to a trial de novo.

The sole issue presented in this writ application is whether Crochet is entitled to a trial de novo in the 19th Judicial District Court.

THE LOUISIANA PROCUREMENT CODE

The Louisiana Procurement Code, LSA-R.S. 39:1551 et seq., which governs certain public contracts with the State of Louisiana, was enacted, in part, to "provide for increased public confidence in the procedures followed in public procurement"; to "ensure the fair and equitable treatment of all persons who deal with the procurement system of this state"; and "[t]o provide safeguards for the maintenance of a procurement system of quality and integrity." LSA-R.S. 39:1552 B(3), (4), and (6); Alexander & Alexander, Inc. v. State of Louisiana, et al, 596 So.2d 822 (La.App. 1st Cir.1991). The Louisiana Procurement Code applies to every expenditure of public funds by the State of Louisiana for supplies, services, or major repairs. LSA-R.S. 39:1554 B. More specifically, the Louisiana Procurement Code develops a scheme for resolution of contract disputes and establishes a multi-step administrative review process. See LSA-R.S. 39:1673, 1681, 1685, 1691 C, and 1692 C.

A. STEP 1.

Under LSA-R.S. 39:1673 A, in controversies based upon breach of contract, mistake, misrepresentation, or other cause for contract modification or rescission, "[a]ny contractor who seeks a remedy with regard to such controversy shall file a complaint with the chief procurement officer."[3] The chief procurement officer, with the approval of the attorney general, has the authority to settle such contract disputes prior to the commencement of an action in court. LSA-R.S. 39:1673 B. If the controversy between the contractor and the state is not resolved by mutual agreement, the chief procurement officer is required by LSA-R.S. 39:1673 C to issue a written decision stating the reasons for the action taken and informing the contractor of its right to administrative and judicial review as set forth in the Louisiana Procurement Code. The decision rendered by the chief procurement officer under LSA-R.S. 39:1673 C is final and conclusive unless the contractor timely appeals administratively to the commissioner in accordance with LSA-R.S. 39:1685. LSA-R.S. 39:1673 E.[4]

B. STEP 2.

The decision of the procurement officer is reviewable by the commissioner of administration. LSA-R.S.

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Related

GC Services Ltd. Partnership v. Board of Supervisors
648 So. 2d 1045 (Louisiana Court of Appeal, 1994)
Johnson Controls, Inc. v. Lynch
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Crochet Equipment Co. v. Board of Supervisors
599 So. 2d 304 (Supreme Court of Louisiana, 1992)

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Bluebook (online)
597 So. 2d 562, 1992 WL 46328, Counsel Stack Legal Research, https://law.counselstack.com/opinion/crochet-equipment-v-board-of-suprs-lactapp-1992.