Dept. of Agriculture v. STATE LICENSING BD.

837 So. 2d 726, 2003 WL 183775
CourtLouisiana Court of Appeal
DecidedJanuary 29, 2003
Docket36,694-CA
StatusPublished
Cited by5 cases

This text of 837 So. 2d 726 (Dept. of Agriculture v. STATE LICENSING BD.) 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
Dept. of Agriculture v. STATE LICENSING BD., 837 So. 2d 726, 2003 WL 183775 (La. Ct. App. 2003).

Opinion

837 So.2d 726 (2003)

LOUISIANA DEPARTMENT OF AGRICULTURE AND FORESTRY and Louisiana Agricultural Finance Authority, Plaintiffs-Appellants,
v.
LOUISIANA STATE LICENSING BOARD FOR CONTRACTORS, Defendant-Appellee.

No. 36,694-CA.

Court of Appeal of Louisiana, Second Circuit.

January 29, 2003.

*727 Gelpi and Associates by C. James Gelpi, David McFadden, Dan Zimmerman, James Marvin Montgomery, New Orleans, for Appellants.

Paul J. McMahon, III, Lafayette, for Appellee Louisiana State Licensing Board for Contractors.

Virgil Russell Purvis, Jr., Jonesville, for Intervenor/Appellee, Everett Mayo.

Before STEWART, GASKINS & PEATROSS, JJ.

PEATROSS, J.

This appeal arises from a trial court judgment awarding partial relief to plaintiffs, Louisiana Department of Agriculture and Forestry ("Department") and Louisiana Agricultural Finance Authority ("LAFA"), under the Contractors Licensing Law exemption found in La. R.S. 37:2157(A)(2).[1] Plaintiffs, Department and LAFA, now appeal the judgment of the trial court. For the reasons stated herein, we amend the judgment of the trial court and, as amended, affirm.

FACTS

LAFA, under La. R.S. 36:629(K), is an agency created within the Department. Under La. R.S. 3:266(14), LAFA has the power to acquire immovable property and to own and construct public work projects on the property.[2] LAFA is the owner of *728 various properties around the state, including properties in Monroe, Winnsboro, Jonesville, Minden and Oak Grove, on which it has constructed or is planning to construct a number of public work projects.[3] The public work projects on these various properties are the public work projects at issue in this case. The goal of these projects is to carry out Louisiana's Boll Weevil Eradication Program. The Legislature authorized LAFA to use its powers to implement this program.[4] LAFA, using its own employees, equipment and material, began construction of office and related work space at the aforementioned properties after it received approval from the State Bond Commission to sell bonds to finance these public work projects.

Soon after construction of the various public work projects began, the defendant, Louisiana State Licensing Board for Contractors ("Licensing Board"), issued a series of cease and desist orders directing the Department and LAFA to cease and desist any activity, conduct or practice then being undertaken concerning the public work projects at issue. Created under La. R.S. 37:2150, et seq. ("Contractors Licensing Law"), the Licensing Board has the authority to monitor construction projects to ensure compliance with contractors licensure requirements.[5] In the instant case, the Licensing Board objected to LAFA's use of its own public employees, equipment and material in carrying out the public work projects at issue, insisting that LAFA had to retain a licensed contractor, who, in turn, would provide the workers, equipment and materials needed in carrying out these public work projects. LAFA disagreed with the Licensing Board's actions, but agreed to retain a licensed contractor, Mr. Everett Mayo ("Mayo"), to supervise, superintend and oversee the public works at issue. The Licensing *729 Board, however, continued its efforts to enforce the cease and desist orders it had previously issued, arguing that, in effect, Mayo had allowed his license to be used by LAFA because Mayo had provided only one employee for only one project site, while all other personnel on the various projects continued to be employees of the Department and LAFA. Moreover, the Licensing Board asserted that, because these actions showed that LAFA was acting as a contractor, which is prohibited by La. R.S. 37:2154(A)(4), it was violating the Contractors Licensing Law.[6]

The Department and LAFA filed suit on April 21, 1999, asking the trial court for a declaratory judgment, to issue a temporary restraining order and to issue a preliminary and permanent injunction against the Licensing Board in order to prevent further enforcement of its cease and desist orders. Specifically, the Department and LAFA asked the trial court for a declaratory judgment that would give LAFA the authority to use its own employees, equipment and material in carrying out the public work projects at issue in this case. On the same day the suit was filed, the trial judge granted a temporary restraining order against the Licensing Board; and, on April 27, 1999, the trial judge granted a preliminary injunction prohibiting the Licensing Board from taking any action to enforce the cease and desist orders. Trial on the permanent injunction was set for May 18, 1999. Before the trial, the Licensing Board filed an answer and reconventional demand against the Department, LAFA and Mayo, seeking a permanent injunction to prohibit them from utilizing any public employees on the public works projects in Monroe or Oak Grove or any other site designated as a "Boll Weevil" project.

On May 14, 1999, the Department and LAFA filed a motion to continue the trial, asserting that legislation was then pending in the Legislature that would directly affect the issues in this case. The motion was granted and the trial was then set for July 12, 1999. Before the trial, the Legislature enacted what is now La. R.S. 3:266(21), which provides:

The authority (LAFA) shall have all the powers necessary to give effect to and carry out the purposes and provisions of this Chapter, including, in addition to all other powers granted by other provisions of this Chapter, the powers to:
Notwithstanding any other law, supervise and utilize public employees, equipment, and material in carrying out public work, including public work in furtherance of Formosan termite suppression. (Emphasis added.)

After the enactment of this legislation, the Department and LAFA argued to the trial court that, unequivocally, La. R.S. 3:266(21) allows LAFA to use its own public employees, equipment and materials in carrying out all the public work projects at issue, notwithstanding the requirements of the Contractors Licensing Law.

On April 10, 2002, the trial judge rendered judgment, granting a permanent injunction against the Licensing Board, prohibiting it from enforcing the cease and desist orders or from taking any action against the Department, LAFA and Mayo concerning the public works in Monroe, Winnsboro, Jonesville, Minden or Oak Grove that are ongoing or had been completed *730 as of July 12, 1999. Further, the trial judge denied the Licensing Board's request for a permanent injunction against the Department, LAFA and Mayo. Finally, the trial judge issued a declaratory judgment which stated:

1. The purpose of the Contractors Law, La. R.S. 37:2150, et seq., is to protect the general public from unscrupulous persons "engaging in the contracting vocation." The Department and LAFA are not holding themselves out to the public to construct buildings for a fee.
2. The issuance of cease and desist orders by the Contractors Board against the Department and LAFA with respect to the projects located in Monroe, Winnsboro, Jonesville, Minden and Oak Grove do nothing to protect the health, safety, and general welfare of those persons dealing with persons engaged in the contracting vocation.
3. It is not the duty of the Contractors Board to regulate the deployment of state employees.
4.

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Bluebook (online)
837 So. 2d 726, 2003 WL 183775, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dept-of-agriculture-v-state-licensing-bd-lactapp-2003.