Hospital Service District No. 1 v. Louisiana State Licensing Board for Contractors

723 So. 2d 1110, 97 La.App. 1 Cir. 2800, 1998 La. App. LEXIS 3756, 1999 WL 4496
CourtLouisiana Court of Appeal
DecidedDecember 28, 1998
DocketNo. 97 CA 2800
StatusPublished
Cited by1 cases

This text of 723 So. 2d 1110 (Hospital Service District No. 1 v. Louisiana State Licensing Board for Contractors) 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
Hospital Service District No. 1 v. Louisiana State Licensing Board for Contractors, 723 So. 2d 1110, 97 La.App. 1 Cir. 2800, 1998 La. App. LEXIS 3756, 1999 WL 4496 (La. Ct. App. 1998).

Opinion

_JjFOGG, J.

By this appeal, the Hospital Service District No. 1 of Tangipahoa Parish d/b/a North Oaks Medical Center challenges the determination that it has violated LSA-R.S. 37:2160(A)(1) by acting as a contractor without a license in the construction of additions and renovations to the North Oaks Medical Center. For the following reasons, we affirm.

[1111]*1111This dispute arises out of the ongoing construction of additions and renovations to the North Oaks Medical Center in Hammond, Louisiana, which is owned, managed and operated by the Hospital Service District No. 1 of Tangipahoa Parish d/b/a North Oaks Medical Center (the Hospital). The project involves a 250,000 square foot addition to the existing Medical Center facility, the construction of a new medical office building and renovations to certain parts of the Medical Center’s existing buildings.

The construction of the project was divided into approximately twelve separate trade packages which were competitively bid in accordance with the applicable provisions of the Louisiana Public Bid Law, LSA-R.S. 38:2181 et seq. Contracts were then awarded and entered into between the Hospital and the low bidders for each of the twelve packages. Each of these contractors was required by the bid documents to hold a current and valid contractor’s license issued by the Louisiana State Licensing Board for Contractors in the appropriate classification.

The bid packages covered several different building trade categories, including electrical, fire sprinkler system installation, site work, auger cast piling, plumbing and HVAC, general trades, elevators, drywall, finish carpentry, millwork and pre-manufactured casework, acoustical work, and resilient flooring and carpet.

bThe Hospital contracted with Centex-Rodgers Construction Company (Centex) to serve as its construction manager to assist in the planning, development and construction of the project. Centex was contractually responsible for coordinating and scheduling the work of all contractors and determining in general if the work of the contractors was being performed in accordance with the requirements of the plans and specifications. It was not responsible for the means, techniques or procedures used by the contractors to perform their respective work and was not financially responsible for the work to be performed by the separate contractors. Centex did hold at the time, and still holds, a current and valid contractor’s license issued by the Licensing Board.

Once this multiple prime contractors/construction manager approach to constructing the project was finalized, the Hospital met with the Licensing Board to discuss the project. Subsequently, the Board sent a certified letter to the Hospital requesting that it appear at an administrative hearing at the Board’s offices and issued a subpoena for the Hospital to produce certain records and documents. An administrative hearing was convened on February 20, 1997 to consider an alleged violation of LSA-R.S. 37:2160 and 2162. The Board found that the actions of the Hospital were in violation of LSA-R.S. 37:2160(A)(1) in not hiring a general contractor; the Board declined to subject the Hospital to penalties under LSA-R.S. 37:2162.1 Pursuant to LSA-R.S. 49:964, the Hospital sought judicial review of the matter in the Nineteenth Judicial District Court, where the judge upheld the decision of the Licensing Board. This appeal followed.

bThe record reflects that the Licensing Board made the following findings of fact and conclusions of law:

FINDINGS OF FACT:
(1) North Oaks Medical Center, a public entity, after competitive bidding as required by law, entered into at least 12 separate contracts with individual licensed Contractors to build a $24,000,000 plus addition to facilities owned by them in Hammond, Louisiana.
(2) North Oaks Medical Center, entered into a Construction Manager Contract with a licensed Contractor, Centex-Rodgers Construction Company, on the same job.
(3) The Centex-Rodgers Construction Manager Contract at Section 1.2.7.1, specified “The Construction Manager shall not be responsible for construction means, methods, techniques, sequences and procedures employed by Contractors in the performance of their contracts, and shall not be responsible for the failure of any Contractor to carry out work in accordance with the contract documents.”
[1112]*1112(4) The Board found that there was no “General Contractor” or “Primary Contractor” on the job to coordinate the work of the various “Trade Contractors” and no “General Contractor” or “Primary Contractor” on the job with responsibility for the work of any of the separate “Trade Contractors” and that therefore North Oaks Medical Center, as Owner, was improperly acting as an unlicensed Contractor on the job in violation of the rules and regulations and statutes of Louisiana with regard to such activities.
CONCLUSIONS OF LAW:
(1) North Oaks Medical Center under Title 37:2150.1(4) is acting as a “Contractor[,]” as Owner, without a license and therefore in violation of Title 37:2160, Section A(l) and also subject to the provisions contained in Title 37:2162 for such violation.

Judicial review of a decision of an administrative governmental agency is set forth in LSA-R.S. 49:964. The Administrative Procedure Act specifies that judicial review shall be confined to the record, as developed in the administrative proceedings. LSA-R.S. 49:964(F). The district court may reverse or modify the agency decision if substantial rights of the appellant are prejudiced because the administrative findings, inferences, conclusions, or decisions feare: (1) in violation of constitutional or statutory provisions; (2) in excess of the agency’s statutory authority; (3) made upon unlawful procedure; (4) affected by error of law; (5) arbitrary, capricious, or characterized by an abuse of discretion or clearly unwarranted exercise of discretion; or (6) not supported and sustainable by a preponderance of evidence as determined by the reviewing court. LSA-R.S. 49:964(G); Pacificorp Capital, Inc. v. State, Through Div. of Admin., 92-1729 (La.App. 1 Cir. 8/11/94); 647 So.2d 1122, writ denied, 94-2315 (La.11/18/94); 646 So.2d 387.2 On legal issues, the reviewing court gives no special weight to the findings of the administrative tribunal, but conducts a de novo review of questions of law and renders judgment on the record. State, Through Louisiana Riverboat Gaming Comm’n v. Louisiana State Police Riverboat Gaming Enforcement Div., 95-2355 (La.App. 1 Cir. 8/21/96); 694 So.2d 316.

On appeal, the Hospital contends the district court and the Licensing Board erred in concluding that, under LSA-R.S. 37:2160(A)(1) and 2162, the Hospital was acting as a “contractor” without a valid and current contractor’s license. The Hospital contends that, rather than hire one general contractor, it hired many general contractors each of whom performed a distinct function, the cost of which exceeds the statutory minimum of $50,000.00, and each of whom held a valid contractor’s license in the appropriate classification.

LSA-R.S.

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723 So. 2d 1110, 97 La.App. 1 Cir. 2800, 1998 La. App. LEXIS 3756, 1999 WL 4496, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hospital-service-district-no-1-v-louisiana-state-licensing-board-for-lactapp-1998.