KOSTMAYER CONST. v. Sewerage & Water Bd.

943 So. 2d 1240, 2005 La.App. 4 Cir. 1184, 2006 La. App. LEXIS 2648, 2006 WL 3349533
CourtLouisiana Court of Appeal
DecidedOctober 18, 2006
Docket2005-CA-1184
StatusPublished
Cited by2 cases

This text of 943 So. 2d 1240 (KOSTMAYER CONST. v. Sewerage & Water Bd.) 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
KOSTMAYER CONST. v. Sewerage & Water Bd., 943 So. 2d 1240, 2005 La.App. 4 Cir. 1184, 2006 La. App. LEXIS 2648, 2006 WL 3349533 (La. Ct. App. 2006).

Opinion

943 So.2d 1240 (2006)

KOSTMAYER CONSTRUCTION, INC.
v.
SEWERAGE & WATER BOARD OF NEW ORLEANS.

No. 2005-CA-1184.

Court of Appeal of Louisiana, Fourth Circuit.

October 18, 2006.

*1242 George B. Recile, Chehardy Sherman Ellis Breslin Murray Recile & Griffith, L.L.P., Metairie, LA, for Plaintiff/Appellee, Kostmayer Construction, Inc.

Harold D. Marchand, Attorney IV, Jacob Taranto III, Deputy Special Counsel, Gerard M. Victor, Special Counsel, Sewerage & Water Board of New Orleans, New Orleans, LA, for Defendant/Appellant, Sewerage and Water Board of New Orleans.

(Court composed of Judge JAMES F. McKAY, III, Judge TERRI F. LOVE, Judge LEON A. CANNIZZARO, JR.).

LEON A. CANNIZZARO, JR., Judge.

The defendant, the Sewerage and Water Board of New Orleans ("S & WB"), appeals from a district court judgment rendered in favor of the plaintiff, Kostmayer Construction, LLC ("Kostmayer")[1]. We affirm the judgment of the trial court.

FACTS

Kostmayer has been a marine contractor in the New Orleans area for 20 years. Pursuant to a public bid, the S & WB awarded Kostmayer a $1,169,200.00 contract to build improvements and refurbishments to Drainage Pumping Station No. 13 ("DPS 13") located in Algiers, Louisiana. Burk-Kleinpeter, Inc. ("BKI"), a civil engineering firm under contract to the S & WB, and its subcontractor, C & S Consultants, prepared the plans and specifications for the project.

The contract contained three major line items of work: driving new steel pile walls to strengthen the bulkhead between the pump station and the Intracoastal Canal; pouring concrete on the bottom of the discharge basin; and revising the levees on either side of the pump station and the discharge basin.

Kostmayer began driving the steel sheet piles in April 2002, using a large crane mounted on a barge, which floated in the Intracoastal Canal at the discharge basin. Sometime thereafter, Kostmayer's work crew experienced an electrical current or shock as they were guiding the piles into place. Initially, it was merely an irritant, but as the job progressed, the current became stronger and posed a safety hazard to the workers.

In addition to providing the plans and specifications, BKI also provided contract administration for the project. On May 22, 2002, Kostmayer contacted BKI's chief field engineer, Adam Mehn, requesting permission to shut down the job until the safety hazard could be corrected; BKI agreed.

BKI notified the S & WB of the shutdown, and the parties, including the S & WB, immediately began an investigation to find the source of the current. They first suspected a stray current from the pump station or an unknown underground wire, or a malfunction in the crane's electrical system. These possible sources were excluded *1243 within the first day or two of the investigation.

Within the next few days, employees from the S & WB's electrical department ran tests, which indicated that the probable culprit was Radio Frequency Interference ("RFI"), a relatively obscure phenomenon. RFI will occur when a structure of conductive metal located in a field of transmitted radio waves acts as a receiving antenna and absorbs those radio waves into electrical energy in the structure. In this case, the investigators believed Kostmayer's 180-foot steel crane boom was acting as a giant radio antenna, collecting and focusing the electrical energy from three radio station transmission towers in the vicinity[2].

Kostmayer immediately hired an expert from Highlines Construction Company, a contractor specializing in building towers for electric utility companies, to assist. The Highlines expert recommended that Kostmayer use nylon straps to lift the steel piles in the hopes of breaking the electrical current. Kostmayer tried this, using a simple strap around the load, rather than a steel cable. While this simple change reduced the voltage, it did not reduce it enough to ameliorate the hazard.

BKI then requested the S & WB to authorize BKI to hire an electrical expert at the S & WB's expense, to recommend a solution to the problem; the S & WB agreed. BKI hired a local electrical engineer, David Kanter. After initial inquiry, Mr. Kanter determined that the problem was too specialized for him, so he hired an expert from North Carolina, Lawrence Behr.

Mr. Behr confirmed the problem was RFI and, after conducting several tests, recommended a much more complex arrangement of nylon straps and slings to insulate the crane and break the electrical circuit in the boom antenna. With Mr. Behr's help, Kostmayer immediately implemented the suggestion. It was successful and Kostmayer resumed work immediately.

By then, however, the project had been shut down from May 22 through June 18, 2002, a total of 27 days. Kostmayer submitted a proposed change order or claim for $108,247.48, which included the cost of repairing or replacing the crane boom hoist cable damaged by the current ($10,683.10), and $97,614.38 for costs of personnel and equipment maintained during the down-time. BKI, believing the change order was justified, recommended that the S & WB approve it. After the S & WB refused the change order, Kostmayer filed suit.

Following trial, the court awarded Kostmayer damages in the amount of $108,297.48, as well $79,963.66 for the retainage[3] owed under the contract and reasonable attorney's fees to be determined at a later hearing. In her reasons for judgment, the trial judge stated that Kostmayer had not breached the standard of care owed by a contractor, and the electrical arcing which caused the delays and damages was an unforeseeable event. The trial court further held that pursuant to the contract the parties did not expect the contractor to bear the burden imposed by the unforeseen condition. The S & WB appealed.

*1244 ASSIGNMENTS OF ERROR

The S & WB raised nine assignments of error:

1. The trial court erred in determining that "the fact that the Board approved the hiring of experts to solve the electrical problem undercuts its entire defense to this case."
2. The trial court erred in its interpretation of paragraph 26 of the contract between the S & WB and Kostmayer where the court said, "it is recognized that the Contractor is not to be charged with liquidated damages or any excess cost for delay in completing work when the delay is due to unforeseen causes beyond the control of the contractor and without fault or negligence on [its] part."
3. The court erred in determining that radio frequency interference was a changed or differing condition.
4. The court erred in its interpretation of paragraph 31 of the specifications entitled "Extra Work."
5. The court erred in applying paragraph 26 of the contract specifications to the facts of this case relative to "unforeseeable causes."
6. The court erred in determining that "it [had] not been established that Kostmayer had a duty to conduct any testing with regard to these towers given their distance from the site."
7. The court erred in finding that "the S & WB breached its agreement with Kostmayer when it refused Kostmayer's claim for additional costs and damage to the crane and that it owes Kostmayer the sum of $108,297.48."
8. The court erred in awarding Kostmayer attorney fees for "withholding the retainage."
9.

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943 So. 2d 1240, 2005 La.App. 4 Cir. 1184, 2006 La. App. LEXIS 2648, 2006 WL 3349533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kostmayer-const-v-sewerage-water-bd-lactapp-2006.