Jensen Const. Co. v. DEPT. OF TRANSP. OF DEV.

542 So. 2d 168, 1989 WL 35350
CourtLouisiana Court of Appeal
DecidedApril 11, 1989
DocketCA 88 1595
StatusPublished
Cited by12 cases

This text of 542 So. 2d 168 (Jensen Const. Co. v. DEPT. OF TRANSP. OF DEV.) 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
Jensen Const. Co. v. DEPT. OF TRANSP. OF DEV., 542 So. 2d 168, 1989 WL 35350 (La. Ct. App. 1989).

Opinion

542 So.2d 168 (1989)

JENSEN CONSTRUCTION COMPANY
v.
DEPARTMENT OF TRANSPORTATION AND DEVELOPMENT, State of Louisiana, Neil L. Wagoner and Rosiek Construction Company, Inc.

No. CA 88 1595.

Court of Appeal of Louisiana, First Circuit.

April 11, 1989.
Writ Denied June 2, 1989.

*169 Neil L. Wagoner, Secretary, Dept. of Transp. and Development, and William J. Doran, Jr., Baton Rouge, for plaintiffs-appellees Dept. of Transp. et al.

David J. Krebs, Timothy D. Scandurro, New Orleans, for Rosiek Const. Co. appellee.

Shelly C. Zwick, Baton Rouge, for defendant-appellant Jensen Const. Co.

Before COVINGTON, C.J., and LOTTINGER and FOIL, JJ.

FOIL, Judge.

This appeal challenges the action of the trial court in sustaining an exception of lis pendens and dismissing the lawsuit. We hold the trial court properly maintained the exception, and affirm.

INTRODUCTION

The Louisiana Public Contracts Law requires that work done by a public entity be advertised and let by contract to the "lowest responsible bidder." La.R.S. 38:2212. In 1987, defendant, State of Louisiana, Department of Transportation and Development (DOTD), advertised for and received six bids for the construction of a bridge. Rosiek Construction Company (Rosiek) submitted the lowest bid. Rosiek's bid spawned two lawsuits, brought by the second lowest bidder, Jensen Construction Company (Jensen). In the first lawsuit, Jensen sought a declaration that Rosiek's bid was illegal, an injunction prohibiting DOTD from entering into a contract with Rosiek, and a Writ of Mandamus ordering DOTD to execute the contract with Jensen. The trial court rejected Jensen's claim that Rosiek's bid was illegal and refused to enjoin DOTD from executing the contract with Rosiek. Subsequently, DOTD executed the contract with Rosiek.

Following the execution of the contract, but before the delay for taking a devolutive appeal in the first suit had expired, Jensen filed the present lawsuit, seeking to have the DOTD-Rosiek contract annulled and to be awarded the contract with DOTD. Defendants filed exceptions of lis pendens, which were maintained by the trial court. Jensen did not timely appeal the judgment in the first lawsuit.

FACTS

Jensen filed the former lawsuit on January 28, 1988, against DOTD, in the 19th Judicial District, Parish of East Baton Rouge. The case, docket number 326,288, was assigned to Judge Brown. Although Rosiek was not named as a party in this lawsuit, Rosiek did file an amicus curiae brief in defense of its bid. Significantly, on January 29, 1988, DOTD awarded the contract to Rosiek.

In the first lawsuit, Jensen sought to have Rosiek's bid declared invalid on the basis that the bid proposal submitted by Rosiek violated the Public Contracts Law, La.R.S. 38:2211, et seq., as well as the guidelines and policies established by *170 DOTD in three respects. First, Jensen charged that Rosiek's bid had not been countersigned by a resident agent of a surety licensed in Louisiana, prior to submission of the proposal, in violation of La. R.S. 38:2218(B).[1] Jensen complained that DOTD waived this requirement, considering it an "informality," and allowed Rosiek to cure the deficiency three weeks after the bids were opened. Secondly, Jensen asserted that the bid bond was not in a form similar in all respects to the bond supplied in the proposal. Thirdly, Jensen claimed the bid bond was for an indeterminate amount, and thus violated La.R.S. 48:253.[2]

Because of the foregoing deficiencies in the bid and DOTD's past actions regarding similar deficiencies, Jensen in essence argued DOTD acted arbitrarily and exhibited favoritism in accepting Rosiek's bid, in contravention of the Public Contracts Law. In an attempt to support the claim of arbitrary conduct, Jensen argued it was DOTD's policy to reject bids with irregularities similar to those in Rosiek's bid. Additionally, Jensen introduced evidence of DOTD's past out-right rejections of bids with the same type of deficiencies present in the Rosiek bid.

With respect to the relief sought, Jensen claimed it was entitled to a declaratory judgment finding the bid of Rosiek in violation of the Public Contracts Law. In accordance with La.R.S. 38:2220(B),[3] Jensen prayed for preliminary and permanent injunctions to enjoin DOTD from entering into the contract with Rosiek. Finally, Jensen requested the court to issue a Writ of Mandamus ordering DOTD to award the contract to it.

Following a full trial, the trial court refused to enjoin DOTD from executing the contract with Rosiek. The court rejected Jensen's claim that Rosiek's bid violated the Public Contracts Law, finding one of the alleged deficiencies was merely procedural rather than substantive. The court also read the condition limiting the surety's liability out of the bid proposal, and thus conformed the bid to the statutory requirements of the Public Contracts Law. Additionally, the court specifically considered Jensen's allegations of arbitrary conduct on the part of DOTD given DOTD's policies and its past rejections of bids similar to Rosiek's, and found no favoritism on the part of DOTD.

Subsequently, on March 7, 1988, DOTD and Rosiek executed the contract. Jensen's request for a new trial, filed on March 9, 1988, was denied by the trial court on April 25, 1988. Jensen filed the present lawsuit on June 1, 1988, in the 19th Judicial Court, Parish of East Baton Rouge, seeking to annul the contract and to be awarded the contract. Named defendants to this suit were DOTD and Rosiek. Because the delay for taking a devolutive appeal from the former judgment had not expired when the present lawsuit was filed, defendants filed exceptions of lis pendens, requesting that the present action be dismissed.

In the present lawsuit, Jensen again alleged that Rosiek's bid was in contravention of the Public Contracts Law on the same bases asserted in the former lawsuit. Jensen also alleged that DOTD's acceptance of the bid constituted favoritism and *171 arbitrary conduct based on events subsequent to the judgment in the first lawsuit. Specifically, Jensen alleged that since the award of the contract to Rosiek, DOTD publicly announced its policy that bid proposals will be considered irregular and rejected if the bid bond is not countersigned by a Louisiana licensed resident agent or if it contains conditions limiting the surety's liability, two of the irregularities contained in Rosiek's bid. Jensen further alleged that since the award of the contract, DOTD ruled at least one low bid to be irregular and rejected it on the sole basis that the surety on the bid bond limited its liability to an amount less than that fixed by DOTD and stated in the bid advertisement.

Judge Higginbotham maintained defendant's exceptions of lis pendens, stating that although one suit sought to enjoin execution of the contract and the other to annul an executed contract, the issue in both suits ultimately remained the same. Both suits questioned whether it was proper for DOTD to accept the Rosiek bid in the form in which it was received. Thus, because the first lawsuit thoroughly litigated the issue arising in the second lawsuit, the court dismissed the second lawsuit. We are asked to determine whether the second lawsuit was properly dismissed by the trial court on an exception of lis pendens.

LIS PENDENS

La.Code Civ.Proc. art.

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

Related

Wicker v. La. Farm Bureau Cas. Ins. Co.
257 So. 3d 817 (Louisiana Court of Appeal, 2018)
Robbins v. Delta Wire Rope, Inc.
196 So. 3d 700 (Louisiana Court of Appeal, 2016)
Code v. Department of Public Safety & Corrections
103 So. 3d 1118 (Louisiana Court of Appeal, 2012)
Pontchartrain Materials Corp. v. Quick Recovery Coatings Services, Inc.
68 So. 3d 1113 (Louisiana Court of Appeal, 2011)
Goldsmith v. Green
47 So. 3d 637 (Louisiana Court of Appeal, 2010)
Elfer v. Murphy Oil, U.S.A., Inc.
804 So. 2d 71 (Louisiana Court of Appeal, 2001)
Brown v. A.J. Barcia's Heating & Air Conditioning Inc.
657 So. 2d 762 (Louisiana Court of Appeal, 1995)
Airline Construction Co. v. Ascension Parish School Board
549 So. 2d 1240 (Louisiana Court of Appeal, 1989)
Jensen Construction Co. v. Department of Transportation & Development
544 So. 2d 408 (Supreme Court of Louisiana, 1989)

Cite This Page — Counsel Stack

Bluebook (online)
542 So. 2d 168, 1989 WL 35350, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jensen-const-co-v-dept-of-transp-of-dev-lactapp-1989.