Gibson & Associates, Inc. v. State, Department of Transportation & Development

68 So. 3d 1128, 2010 La.App. 1 Cir. 1696, 2011 La. App. LEXIS 586, 2011 WL 2670087
CourtLouisiana Court of Appeal
DecidedMay 18, 2011
Docket2010 CA 1696
StatusPublished
Cited by5 cases

This text of 68 So. 3d 1128 (Gibson & Associates, Inc. v. State, Department of Transportation & Development) 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
Gibson & Associates, Inc. v. State, Department of Transportation & Development, 68 So. 3d 1128, 2010 La.App. 1 Cir. 1696, 2011 La. App. LEXIS 586, 2011 WL 2670087 (La. Ct. App. 2011).

Opinions

WHIPPLE, J.

| aIn this appeal, the Louisiana Department of Transportation and Development (hereinafter referred to as “the DOTD”) challenges the trial court’s judgment that: (1) issued a preliminary injunction restraining and prohibiting the DOTD from awarding a particular construction contract to any bidder other than plaintiff, Gibson & Associates, Inc. (referred to herein as “Gibson”); and (2) issued a writ of mandamus directing the DOTD to award the contract for the projects at issue to Gibson as the low responsible bidder and to execute a contract with Gibson in accordance with the bid proposal and the contract plans and specifications as advertised.

The intervenor, Lamplighter Construction, L.L.C., (referred to herein as “Lamplighter”) answered the appeal, aligning itself with, and adopting the position taken by, the DOTD.

For the following reasons, we amend in part and affirm, as amended; reverse in part and remand; and deny Gibson’s motion to strike brief.

FACTS AND PROCEDURAL HISTORY

This matter involves the awarding of a DOTD construction contract on State Project Nos. 450-07-0089 and 452-92-0055, for bridge joint repairs and replacements on Interstates 10 and 110 in East Baton Rouge and Iberville Parishes.1 Because the project was a federal aid project, compliance with the required contract provisions for a IsDisadvantaged Business Enterprise (“DBE”) was mandatory.2 Thus, [1131]*1131the Construction Proposal included the “Required Contract Provisions for DBE Participation in Federal Aid Construction Contracts (DBE Goal Project),” which provided that Form CS-6AAA (the “Bidder’s Assurance of DBE Participation” form) and attachments “shall” be timely submitted to the DOTD and that the apparent low bidder’s failure to submit the Form CS-6AAA “shall” constitute just cause for the rejection of the bid.

On January 27, 2010, the project was first let, and the apparent low bidder was TOPCOR Services, Inc. (“TOPCOR Services”), which was thereafter notified that its completed Form CS-6AAA must be submitted within ten days of the letting date. However, TOPCOR Services did not timely submit to the DOTD the required CS-6AAA, thus resulting in its disqualification. Moreover, because of its failure to comply with the requirements of the DBE regulations, TOPCOR Services was barred from rebidding on the project should the project be re-advertised.

Gibson was the next lowest bidder, but the DOTD did not accept its bid. Instead, the DOTD rejected all other bids and re-advertised the project |4in the spring of 2010, with a letting date of April 14, 2010. When the bids were opened on April 14, 2010, Lamplighter Construction, L.L.C. (“Lamplighter”) was the apparent low bidder. However, the DOTD project control administrator was then notified that Lamplighter should be disqualified from bidding because it and the previously disqualified TOPCOR Services were possibly affiliated entities or controlled or owned by the same individuals. The DOTD then researched any connections between the companies through the Louisiana Secretary of State website and the Louisiana Contractors Licensing Board filings.

Based on this independent research, the project control administrator determined that a principal officer or owner of Lamplighter was also a principal officer or owner of TOPCOR Services, the original apparent low bidder which was disqualified from bidding. Thus, the DOTD concluded that Lamplighter was also ineligible to bid and its bid would be rejected as irregular, in accordance with Louisiana Standard Specifications for Roads and Bridges, Specification § 102.08(g).3 Accordingly, Lamplighter was then listed as “irregular” on the bid tabulation, and Gibson, which had again been the second lowest bidder, became the apparent low bidder.

Lamplighter then protested the DOTD’s determination that its bid should be considered irregular, asserting that it was a “distinct and separate contracting entity” from TOPCOR Services. Following a review of documentation submitted by Lamplighter in support of its protest,4 the | sDOTD chief engineer determined that Lamplighter should be reinstated as the low bidder and awarded the contract.

After the DOTD made its decision to reinstate Lamplighter as the low bidder, it notified Gibson that its status had again changed to second low bidder. Gibson then filed a protest of the DOTD’s decision to reinstate Lamplighter as the low bidder. Following a hearing on Gibson’s protest, the DOTD chief engineer notified Gibson, by letter dated May 27, 2010, that he had [1132]*1132reaffirmed his prior decision to reinstate Lamplighter as the apparent low bidder for the project at issue. The following day, the DOTD notified Lamplighter that it had been awarded the contract.

On the same day that Lamplighter was notified that it had been awarded the contract, May 28, 2010, Gibson filed a petition for a temporary restraining order, preliminary injunction, permanent injunction, declaratory judgment, and mandamus. Through its petition, Gibson sought to enjoin the DOTD from awarding and executing the construction contract to any bidder other than Gibson. It further sought a declaratory judgment, declaring: (1) that the bid submitted by Lamplighter is irregular pursuant to Standard Specification § 102.08(g); (2) that pursuant to LSA-R.S. 48:250, et seq., Lamplighter’s bid must be rejected; (3) that any contract entered into by the DOTD with Lamplighter is null and void; and (4) that Gibson is the low responsible bidder to bid according to the contract, plans, and specifications and, as such, is entitled to be awarded the project. Finally, Gibson sought a writ of mandamus ordering the DOTD to accept Gibson’s bid and execute the contract with Gibson for the construction of this project.

A TRO was issued that day, prohibiting the DOTD from awarding the contract to any bidder other than Gibson or, if the contract had been awarded, from implementing or executing the terms and conditions of any | fisuch contract, and a hearing on Gibson’s request for a preliminary injunction was set for June 15, 2010. The TRO was subsequently continued in full force and effect by order dated June 7, 2010.

In response to Gibson’s petition, the DOTD filed exceptions of nonjoinder of an indispensable party, i.e., Lamplighter, and improper use of summary proceedings, an answer, and a reconventional demand for dissolution of the TRO, damages for its wrongful issuance, and attorney’s fees.

At the June 15, 2010 hearing, the trial court considered and denied the exceptions filed by the DOTD. Lamplighter then orally intervened for purposes of opposing the injunctive relief requested.5 At the conclusion of the hearing, the trial court extended the TRO and took the matter of the preliminary injunction under advisement. The TRO was again extended on June 24, 2010.

Thereafter, on June 25, 2010, the trial court issued written reasons for judgment, finding that TOPCOR Services and Lamplighter have a principal officer and/or owner in common and, thus, that the plain language of Standard Specification § 102.08(g) mandated a finding that Lamplighter was ineligible to bid.

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Cite This Page — Counsel Stack

Bluebook (online)
68 So. 3d 1128, 2010 La.App. 1 Cir. 1696, 2011 La. App. LEXIS 586, 2011 WL 2670087, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gibson-associates-inc-v-state-department-of-transportation-lactapp-2011.