Gilchrist Construction Co. v. State, Department of Transportation & Development

166 So. 3d 1045, 2013 La.App. 1 Cir. 2101, 2015 La. App. LEXIS 483, 2015 WL 1020860
CourtLouisiana Court of Appeal
DecidedMarch 9, 2015
DocketNo. 2013 CA 2101
StatusPublished
Cited by6 cases

This text of 166 So. 3d 1045 (Gilchrist Construction Co. 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
Gilchrist Construction Co. v. State, Department of Transportation & Development, 166 So. 3d 1045, 2013 La.App. 1 Cir. 2101, 2015 La. App. LEXIS 483, 2015 WL 1020860 (La. Ct. App. 2015).

Opinion

GUIDRY, J.

|2In this dispute concerning the scope of work and payment of delay damages on a public highway project, the Louisiana Department of Transportation and Development (DOTD) appeals an adverse judgment holding it liable for additional compensation.

FACTS AND PROCEDURAL HISTORY

This dispute arises out of a public works contract executed on February 6, 2007, by the defendant public entity, the DOTD, and the plaintiff contractor, Gilchrist Construction Company, LLC, for the performance of work necessary to widen Interstate 10 east of Lake Charles, Louisiana, in accordance with plans and specifications provided by the DOTD. Gilchrist completed the project1 ahead of time and was paid the contract price, plus additional compensation for change orders and an early completion bonus, for a total payment of $76,558,550.55.

Nonetheless, on September 10, 2009, Gilchrist filed suit seeking to recover additional “construction delay costs” in the [1049]*1049amount of $5,230,672.00,2 which Gilchrist alleged were incurred due to the DOTD’s gross miscalculation of the quantity of embankment required to perform the project properly. Gilchrist alleged that but for the gross miscalculation by the DOTD, it would have bid 180 more days to complete the project. Additionally, Gilchrist alleged that “acts or omissions” by the DOTD caused Gilchrist increased costs, “including daily project overhead, acceleration costs, freight costs, home office overhead and bond costs.” On October -2, 2009, the DOTD answered the suit, denying Gilchrist’s allegations and asserting as affirmative defenses: (1) that the issues had been compromised by |3the parties during the project by plan changes or amendments to the contract; and (2) that any indebtedness to Gilchrist by the DOTD had been extinguished. Thereafter, on July 5, 2012, the DOTD filed a motion for leave to file a supplemental answer that included a request for a jury trial. In that motion, the DOTD alleged that through discovery, it had obtained information that it did not have at the time of filing its original answer, based upon which it sought to assert additional exceptions and defenses to Gilchrist’s petition. The DOTD asserted that discovery provided a better understanding of Gilchrist’s claims, as well as revealed Gilchrist’s own negligent mismanagement of the project, resulting in extensive construction delays for which Gilchrist, and not the DOTD, was liable. In a memorandum in support of the motion for leave to file a supplemental answer, the DOTD asserted the matter had not yet been set for trial and that the parties were preparing the pre-trial order, so Gilchrist would not be prejudiced by allowing the supplemental answer.

As to the new defenses, the DOTD claimed to have discovered, during Gilchrist’s deposition, that there were allegations of negligence being levied against the DOTD to which the DOTD sought to assert that it owed no legal duty to warrant the estimates of embankment quantities, and in the alternative, to the extent that the DOTD would be found negligent, that Gilchrist was comparatively negligent. Additionally, the DOTD asserted that during Gilchrist’s deposition, it was revealed that Gilchrist was seeking recovery of extra costs associated with the alleged increase in embankment work, to which it sought to assert the affirmative defense of extinguishment of debt. Following a hearing on the motion, the trial court denied the DOTD’s motion for leave to file a supplemental answer, and this court denied the DOTD’s writ application seeking supervisory review of that ruling. See Gilchrist Construction Company, LLC v. Department of Transportation and Development, State of Louisiana, 12-1459 (La.App. 1st Cir. 12/17/12) |4(unpublished writ action). The DOTD then filed a motion for summary judgment seeking dismissal of Gilchrist’s suit, which was likewise denied.

Thus, the matter proceeded to a six-day bench trial on the merits. At the conclusion of the trial, the trial court instructed the parties to submit proposed findings of facts and conclusions of law, along with post-trial memoranda. Thereafter, in a judgment signed August'21, 2013, the trial court rendered judgment in favor of Gilchrist and against the DOTD for the full sum of $4,195,127.00, for the reasons articulated by Gilchrist in its proposed findings of fact and conclusions of law. The DOTD sought and was granted a suspensive appeal of the August 21, 2013 judgment.

ASSIGNMENTS OF ERROR

The DOTD appeals the August 21, 2013 judgment based on the following alleged errors:

[1050]*1050A. The trial court’s denial of [DOTD’s] motion for leave to file a supplemental answer with request for trial by jury is clear and reversible legal error.
B. The trial court’s denial of the [DOTD’s] motion for summary judgment is clear and reversible legal error.
... 3
E. The trial court’s evidentiary ruling, rejecting [DOTD’s] tender of Daryl Ivy, P.E., as an expert witness and finding that Mr. Ivy is not qualified to testify with respect to the Critical Path Method of construction scheduling, is clear and reversible legal error.
F. The trial court’s adoption of [Gilchrist’s] legal argument that [Gilchrist] is seeking recovery of damages for construction delay and, therefore, the provisions of La. R.S. 38:2216 H apply to the contractual defenses asserted by the [DOTD], is clear and reversible legal error.
G. The trial court’s adoption of [Gilchrist’s] legal argument that the [DOTD’s] estimate of the embankment material quantity is an error or deficiency in the plans and specifications for the project is clear and reversible legal error.
|aH. The trial court committed manifest error in finding that the evidence of record, consisting exclusively of so-called “impacted”' Critical Path Method Schedules based on false information and incorrect data, established, by a preponderance of the evidence, a one hundred and eighty (180) day construction delay for which [Gilchrist] was entitled to recover delay damages.
I.The trial court committed manifest error in finding that embankment work or Type C Lime Treatment Work controlled the duration of the project after June of 2007.
J. The trial court committed manifest error in finding that the extra work performed by [Gilchrist] extended the duration of the project.
K. The trial court committed manifest error by failing to find that [Gilchrist’s] mismanagement of the work, rather than the performance of the extra embankment work, extended the duration of the project.
L. The trial court’s adoption of [Gilchrist’s] claim for recovery of home office and other overhead costs, is clear and reversible legal error.
M. The trial court committed manifest error [in] finding that the evidence of record established by a preponderance that [Gilchrist] sustained any loss in connection with operation of [Gilchrist’s] asphalt plant. [Record references omitted.]

DISCUSSION

In its first assignment of error, the DOTD argues that the trial court erred in failing to grant it leave to file a supplemental answer and thereby denied it the opportunity to assert a request for a jury trial.

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166 So. 3d 1045, 2013 La.App. 1 Cir. 2101, 2015 La. App. LEXIS 483, 2015 WL 1020860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gilchrist-construction-co-v-state-department-of-transportation-lactapp-2015.