Jack A. Parker & Assoc., Inc. v. STATE, ETC.

454 So. 2d 162
CourtLouisiana Court of Appeal
DecidedJune 26, 1984
Docket83 CA 0877
StatusPublished
Cited by14 cases

This text of 454 So. 2d 162 (Jack A. Parker & Assoc., Inc. v. STATE, ETC.) 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
Jack A. Parker & Assoc., Inc. v. STATE, ETC., 454 So. 2d 162 (La. Ct. App. 1984).

Opinion

454 So.2d 162 (1984)

JACK A. PARKER & ASSOCIATES, INC.
v.
STATE of Louisiana, Through the DEPARTMENT OF CIVIL SERVICE, et al.

No. 83 CA 0877.

Court of Appeal of Louisiana, First Circuit.

June 26, 1984.
Rehearing Denied August 24, 1984.
Writ Denied November 9, 1984.

*163 Phillip Canova, Plaquemine, for plaintiff-appellant Jack A. Parker & Associates, Inc.

Tommy D. Teague, Baton Rouge, for defendant-appellee Board of Trustees of the State Employees Group Benefits Program.

Robert R. Boland, Jr, Baton Rouge, for defendant-appellee State of La., Through the Dept. of Civil Service.

Thomas A. Warner, III, Baton Rouge, for defendant-appellee Div. of Administration.

Before PONDER, WATKINS and CARTER, JJ.

*164 CARTER, Judge.

This is a suit for breach of contract filed by Jack A. Parker & Associates (Parker) against the State of Louisiana, through the Department of Civil Service; State of Louisiana, through the Division of Administration; and the Board of Trustees of the State Employees Group Benefit Program, within the Department of Treasury, State of Louisiana.

The Division of Administration entered into a joint contract with Parker and Werntz & Associates, Inc. to provide professional, actuarial, and technical services required to organize and maintain the state group insurance program for the sum of $407.496.00, payable in twelve (12) monthly payments of $18,948.00 to Werntz & Associates, Inc. and $15,010.00 to Parker. The contract further provided that reimbursable expenses shall not exceed $36,464.00. The contract was for an initial one-year period from December 1, 1978, to November 30, 1979, with an automatic extension for subsequent equal periods unless prior notice was given.

Sometime after the effective date of the contract, the Director of Civil Service requested that the Division of Administration provide him with copies of contracts for professional services entered into by the Division of Administration, maintaining that Civil Service Rules required approval of such contracts for professional services. The Division of Administration, however, refused to submit the requested contracts to the Civil Service, claiming that the Division of Administration was not subject to the Civil Service Rules.

On June 19, 1979, the Louisiana Civil Service Commission issued a stop pay order mandating that neither the Governor, nor the Treasurer, nor any other person within the state government issue any payments on approximately thirty-eight (38) contracts which the Commission had under consideration. One such contract was the joint contract between the Division of Administration and Parker and Werntz & Associates, Inc. The reason given for issuing the stop pay order was that the contracts for professional services had not been approved by the Director of Civil Service.

By letter dated July 11, 1979, the Commissioner of the Division of Administration requested approval by the Civil Service Commission of several of the questioned contracts, including the contract with Parker and Werntz & Associates, Inc. However, the Director of Civil Service declined to approve the contract on the basis that the contract did not meet the established criteria for a contract for personal services to be performed by persons outside the classified service.[1]

The Division of Administration later submitted to the Civil Service Commission a new contract between itself and Werntz & Associates, Inc. to provide the same basic service as the previous joint contract for $243,288.00, which was approved by the Commission.

Parker received payment under the original contract from December, 1978, through May, 1979. However, as a result of the June stop pay order, payment was discontinued. Plaintiff subsequently filed this suit for monies due under the contract and for damages to its business reputation.

The trial court found that the Civil Service Commission had the authority under the Louisiana State Constitution to adopt rules affecting persons possessing contracts for personal services with the State of Louisiana, which rules have the force and effect of law. The trial court also held that absent approval of the Parker-Werntz contract by the Civil Service Commission as required by Civil Service Rules 3.1(o) and 4.1(e), the contract was null and unenforceable. The trial court accordingly rendered judgment in favor of defendants and dismissed plaintiff's action. From this judgment, plaintiff appeals.

*165 The following issues are presented:

(1) Does the Louisiana Constitution of 1974 grant the Civil Service Commission the authority to make rules regulating classified service?
(2) Do Civil Service Rules 3.1(o) and 4.1(e) exceed that constitutional grant of authority?
(3) Absent of approval of a contract for professional services by the Civil Service Commission, is the contract valid?
(4) Was the action of the Civil Service Commission in declining to approve the Parker contract arbitrary and capricious?

ASSIGNMENTS OF ERROR NOS. 1 & 2

Article 10, Section 10(A)(1) of the Louisiana Constitution of 1974 provides that:

"Each commission is vested with broad and general rule-making and subpoena powers for the administration and regulation of the classified service....

This provision gives the Civil Service Commission rule making authority to fulfill its duties. This authority was broadened from the "authority and power" granted to such commissions under Article 14, Section 15(I) of the Louisiana Constitution of 1921.

Appellant contends that without classification as a member of Civil Service or status as a classified employee, the rules enacted pursuant to Article 10, section 10(A)(1) of the Louisiana Constitution of 1974 can have no application to prospective public service contractors.

The primary rule at issue in the case sub judice is Civil Service Rules 3.1(o) which provides that the director of Civil Service shall:

"Review and approve or disapprove, in advance of their effective dates, contracts for personal services between the State, or any instrumentality thereof, and any person in order to insure that such agreements do not provide for the performance of such services for the State of Louisiana which could and should be performed by classified employees."

The rules of the Commission have the force and effect of law. La. Const. 1974, Article 10, Section 10(A)(4); Mayeaux v. Dept. of State Civil Service, 421 So.2d 948 (La.App. 1st Cir.1982); Pelletier v. Executive Department, Division of State Buildings and Grounds, 331 So.2d 72 (La. App. 1st Cir.1976). Thus, so long as the Commission's rules are reasonable and not violative of basic constitutional rights, they must be recognized and given effect by the courts. Heinberg v. Department of Employment Security, 256 So.2d 747 (La.App. 1st Cir.1971), writ refused, 260 La. 1135, 258, So.2d 381 (1972).

In Bazley v. Tortorich, 397 So.2d 475 (La.1981) the Louisiana Supreme Court recognized a list of rights which have been found to be fundamental. This listing includes freedom of expression and association, right to vote and participate in the electoral process, right to interstate travel, right to fairness in the criminal process, and right to fairness in procedures concerning governmental deprivations of life, liberty and property.

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