Donahue v. BOARD OF LEVEE COM'RS OF ORLEANS, ETC.

413 So. 2d 488
CourtSupreme Court of Louisiana
DecidedApril 5, 1982
Docket81-C-2761, 81-C-2762
StatusPublished
Cited by10 cases

This text of 413 So. 2d 488 (Donahue v. BOARD OF LEVEE COM'RS OF ORLEANS, ETC.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Donahue v. BOARD OF LEVEE COM'RS OF ORLEANS, ETC., 413 So. 2d 488 (La. 1982).

Opinion

413 So.2d 488 (1982)

Oliver J. DONAHUE d/b/a O. J. Donahue Construction Company
v.
BOARD OF LEVEE COMMISSIONERS OF the ORLEANS LEVEE DISTRICT, et al.

Nos. 81-C-2761, 81-C-2762.

Supreme Court of Louisiana.

April 5, 1982.

Art J. Lentini, and Stephen T. Wimberly, of Hall, Lentini, Mouledoux & Wimberly, Metairie, for plaintiff-applicant in No. 81-C-2761 and for defendant-respondent in No. 81-C-2762.

Richard J. McGinity, of McGinity & McGinity, Gordon F. Wilson, Jr., of Dodge, Friend, Wilson & Spedale, Gary L. Keyser, Asst. Atty. Gen., A. Kell McInnis, III, Staff Atty., New Orleans, for defendants-respondents in No. 81-C-2761.

H. Bruce Shreves, and Lloyd N. Shields, of Simon, Peragine, Smith & Redfearn, New Orleans, for plaintiffs-applicants in No. 81-C-2762 and for defendants-respondents in No. 81-C-2761.

Richard J. McGinity, of McGinity & McGinity, Gordon F. Wilson, of Dodge, Friend, Wilson & Spedale, Gary L. Keyser, *489 Asst. Atty. Gen., A. Kell McInnis, Staff Atty., New Orleans, for defendant-respondent in No. 81-C-2762.

MARCUS, Justice.

This action involves a dispute over the letting of a contract to demolish a bridge under the public contracts law.

The Board of Levee Commissioners of the Orleans Levee District sought to demolish the Bayou St. John bridge on Lakeshore Drive in New Orleans and, in accordance with the public contracts law,[1] advertised for bids. On April 29, 1980, the sealed bids were opened. Oliver J. Donahue, d/b/a O. J. Donahue Construction Company, was the lowest of seven bidders. The next lowest bid, which was $26,860 higher than the Donahue bid, was submitted by Stephen Lambert, d/b/a Stephen Lambert, Contractor.[2] On April 30, 1980, the State Licensing Board for Contractors notified the Levee Board that Donahue did not, in its opinion, have the appropriate contractor's license. It advised the Levee Board that either a "Class II" or "Class VII" license was necessary, rather than a "Class I" license such as was held by Donahue. Based on this information, the Levee Board passed a formal resolution on May 21, 1980, rejecting Donahue's bid and acknowledging that Lambert, the second lowest bidder, had agreed to extend his bid for an additional thirty days or a total of ninety days from the date of the bid opening.

Donahue instituted this action against the Levee Board and the Contractors Board to enjoin the Levee Board from awarding the contract to demolish the bridge to anyone other than plaintiff and for a declaratory judgment on the validity of the opinion of the Contractors Board concerning the sufficiency of plaintiff's license. Vaughn intervened in opposition to both plaintiff and defendants alleging that since neither Donahue nor Lambert possessed the proper license or qualifications to perform the work contemplated by the contract, the Levee Board should award the contract to intervenor. After a hearing, the trial court enjoined the Levee Board from awarding the contract to anyone other than Donahue and ordered said Board to award the contract to Donahue. The court further ordered that the opinion expressed by the Contractors Board be annulled insofar as it held that Donahue was not properly licensed or classified to perform the project. The judgment was signed on July 14, 1980. Two days later (July 16), the Levee Board, pursuant to said judgment, awarded the contract to Donahue.

On July 29, 1980, within the delay for taking an appeal from a preliminary injunction,[3] Lambert was granted permission to *490 intervene and take a suspensive appeal.[4] As a result of this action, the Levee Board became concerned about the additional delay involved and, in an effort to expedite the matter, formally adopted a resolution on August 20, 1980, rejecting all bids and ordering that the project be readvertised.[5] Subsequently, both the Levee Board and the Contractors Board perfected devolutive appeals.

The Levee Board filed a motion to dismiss all appeals because of mootness created by the action of the Board on August 20, 1980 rejecting all bids on the project. The court of appeal dismissed all appeals on the ground that the Levee Board acquiesced in the injunction by awarding the contract to Donahue on July 16.[6] The court of appeal then granted a rehearing[7] and held on rehearing that the trial court abused its discretion in ordering that the contract be awarded to Donahue and that the August 20, 1980 action by the Levee Board rejecting all bids be maintained. Therefore, it vacated the judgment of the district court.[8] We granted the applications of both Donahue and Lambert to review the correctness of that decision.[9]

The issues presented for our determination are: (1) whether the Levee Board was correct in rejecting the bid of Donahue, who was otherwise the lowest responsible bidder, because he was not properly licensed and (2) whether, once the Levee Board had accepted Donahue's bid, it could thereafter reject all bids.

La.R.S. 37:2150-63 set out the procedure for licensing contractors and La.R.S. 37:2156.1(c) establishes the following major classifications of licenses:

(1) Building construction
(2) Highway, street and bridge construction
(3) Heavy construction
(4) Municipal and public works construction
(5) Electrical work
(6) Mechanical work
(7) Specialty—A contractor performing work other than in the above major classifications must qualify as a specialty contractor in a subclassification as provided for in R.S. 37:2156.2 hereafter.

All parties agree that categories 3 through 6 are not relevant here. They do not agree, however, on which one of the remaining three categories (1, 2 and 7) is the proper one for the demolition of a bridge. La.R.S. 37:2156.2 lists the subclassifications of each major classification and provides in pertinent part:

I. Building construction
. . . .
19. Rigging, house moving, wrecking and dismantling
. . . .
II. Highway, Street and Bridge Construction
. . . .
12. Concrete bridges, over and underpasses
*491 . . . .
[VII]. A person may obtain a specialty classification under any of the above listed subclassifications or under any other subclassification not so listed in which he is presently performing work.

La.R.S. 37:2159 provides:

A. The board before issuing a license to any contractor, shall state the contractor's classification on such license, according to the classification requested by said contractor and for which he has completed all of the requirements.
B. After classification, the licensee shall not be permitted to bid or perform any type or types of work not included in the classification under which his license was issued.
C. After classification as above provided for, the licensee is restricted in his bidding and his construction, to his proper classification. However, a licensee may apply for and receive additions to or changes in his classification by making application therefor, successfully completing the written examination, and paying the required fees.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Concrete Busters of Louisiana, Inc. v. Board of Commissioners
69 So. 3d 484 (Louisiana Court of Appeal, 2011)
Duty Free Air & Ship Supply Co. v. City of Atlanta
646 S.E.2d 48 (Supreme Court of Georgia, 2007)
Wallace C. Drennan, Inc. v. Sewerage & Water Bd.
798 So. 2d 1167 (Louisiana Court of Appeal, 2001)
New Orleans Rosenbush Claims Service, Inc. v. City of New Orleans
653 So. 2d 538 (Supreme Court of Louisiana, 1995)
Thigpen Const. Co. v. Parish of Jefferson
560 So. 2d 947 (Louisiana Court of Appeal, 1990)
Dotd v. Standard Const. Co. of Ga.
550 So. 2d 1327 (Louisiana Court of Appeal, 1989)
Bill Roberts, Inc. v. City of New Orleans
485 So. 2d 988 (Louisiana Court of Appeal, 1986)
GRACE CONST. CO. v. St. Charles Parish
467 So. 2d 1371 (Louisiana Court of Appeal, 1985)
Hogan v. Hogan
465 So. 2d 73 (Louisiana Court of Appeal, 1985)

Cite This Page — Counsel Stack

Bluebook (online)
413 So. 2d 488, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donahue-v-board-of-levee-comrs-of-orleans-etc-la-1982.