LA Contracting Enterprise, LLC v. South Lafourche Levee District and Keith Guidry, in his capacity as President of South Lafourche Levee District

CourtLouisiana Court of Appeal
DecidedDecember 20, 2024
Docket2024CA0272
StatusUnknown

This text of LA Contracting Enterprise, LLC v. South Lafourche Levee District and Keith Guidry, in his capacity as President of South Lafourche Levee District (LA Contracting Enterprise, LLC v. South Lafourche Levee District and Keith Guidry, in his capacity as President of South Lafourche Levee District) 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
LA Contracting Enterprise, LLC v. South Lafourche Levee District and Keith Guidry, in his capacity as President of South Lafourche Levee District, (La. Ct. App. 2024).

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

LA CONTRACTING ENTERPRISE, LLC

VERSUS

SOUTH LAFOURCHE LEVEE DISTRICT AND KEITH GUIDRY, IN HIS CAPACITY AS PRESIDENT OF SOUTH LAFOURCHE LEVEE DISTRICT

Judgment Rendered: DEC 2 0 2024

Appealed from the 17" Judicial District Court In and for the Parish of Lafourche State of Louisiana Docket No. 148539

The Honorable Marla M. Abel, Judge Presiding

Loretta G. Mince Counsel for Plaintiff/Appellant, New Orleans, Louisiana LA Contracting Enterprise, LLC

Ryan P. Collins Counsel for Defendants/ Appellees,

Ray A. Collins South Lafourche Levee District and Larose, Louisiana Keith Guidry, in his capacity as President of the South Lafourche Levee District

BEFORE: WOLFE, MILLER, AND GREENE, JJ. MILLER, J.

This matter is before us on appeal by plaintiff, LA Contracting Enterprise,

LLC, from a judgment of the trial court denying its petition for writ of mandamus

seeking to compel defendants, the South Lafourche Levee District and its

President, Keith Guidry, to pay funds allegedly due under a public works contract.

For the reasons that follow, we affirm.

Upon acceptance of its successful bid, on November 28, 2022, LA

Contracting Enterprise, LLC, (" LA Contracting") and the South Lafourche Levee

District (" the Levee District") entered into a public works contract for the Levee

District' s D -North Ramp Project (" the project") for the base bid amount of

692, 710. 00. Pursuant to the contract, LA Contracting, " the Contractor," was to

complete all work, which included providing all equipment, labor, and material

necessary for the construction of proposed repairs to the flood wall, elevation of

the current roadway ramp over the levee at Loop Road to + 16' NAVD 88, and all

civil site work noted on the drawings. The project was designed by GIS

Engineering, LLC, who was tasked with the duties and responsibilities assigned to

the Engineer" in connection with completion of the work in accordance with the

contract. The Engineer' s duties included processing applications for payment by

the Contractor for approval and recommendation for payment by the Levee

District, " the Owner."

Work on the project commenced in February of 2023. On March 1, 2023

and March 31, 2023, LA Contracting submitted its first and second payment

applications for the amounts of $ 38, 950. 00 and $ 28, 357. 50 ( less retainage)

respectively, which were approved by the Engineer, and paid by the Levee District.

Thereafter, a dispute arose as to whether the plans and specifications required use

of material stockpiled by the Levee District onsite or whether the contract provided

PJ- LA Contracting the option to utilize material from certain borrow pits in excess of

the volumes stated in the bid form for " excavation" to meet its requirements for

placement of the " embankment" material. Simply stated, the parties disputed

where the material was to be taken from, how much would be taken, and how the

material would be categorized under the contract.

Following a meeting with all parties, the Levee District issued a letter on

May 25, 2023, to Jeremy Landry, the owner of LA Contracting, explaining that LA

Contracting' s opinion that " it has the option to utilize material from an off-site

borrow source in excess of the volumes stated in the bid form for Excavation to

meet its requirements for placement of the Embankment material" triggers a

change in the contract costs in excess of the $ 250, 000. 00 change order limit

currently allowed under the Public Bid Law. The Levee District thus advised LA

Contracting that it had voted to terminate the contract for convenience pursuant to

Section I, Article 15. 4 of the General Conditions of the contract.' The termination

was effective as of the date of the letter, May 25, 2023, and LA Contracting' s

equipment was to be " demobilized" within seven days of the letter.

Section I, Article 15. 4 provides in part:

15. 4 TERMINATION FOR CONVENIENCE: Upon seven days' written notice to CONTRACTOR and ENGINEER, OWNER. may, without cause and without prejudice to any other right or remedy, elect to abandon the Work and terminate the Agreement.

15. 4. 1 In any termination for convenience, CONTRACTOR shall be paid for ( a) Work completed, in accordance with the Contract Documents, before receipt of the notice of termination, and ( b) reasonable termination settlement costs for commitments that have become firm before the termination. CONTRACTOR shall not be paid any anticipated and unrealized supplemental costs, administrative expenses and profit for uncompleted Work. If no agreement can be reached as to reasonable termination costs, OWNER. and

CONTRACTOR shall follow the provisions in federal regulation FAR 52. 249- 2 found in 48 CFR Part 52.

The Levee District held a special meeting on May 25, 2023, where it voted to terminate the contract with LA Contracting.

3 After the contract was terminated, in accordance with Article 15. 4. 1, on June

2, 20231 LA Contracting submitted its third application for payment in the amount

of $285, 569.43 accompanied with a cover letter explaining that it was seeking

payment for what it understood to be an undisputed amount due for work

performed. It further provided notice that it intended to appeal any decision by the

Engineer or the Levee District that denied payment for all work performed and that

it intended to seek all costs and damages incurred through the date of termination

of the contract, including all excavation work performed and all standby time

incurred. After review of the application, the Engineer determined that it required

amendment and resubmission and returned it to LA Contracting to implement its

suggested corrections. On June 7, 2023, LA Contracting amended and resubmitted

the payment application as to the undisputed amounts owed under the contract. In

doing so, LA Contracting expressly reserved its right to pursue payment of all

additional monies owed for work completed under the contract, including but not

limited to amounts included in previously submitted pay applications and amounts

due based on the final surveys for the project. It further reiterated its intention to

appeal any decision denying payment for the amounts it had previously submitted.

The amended third pay application for the amount of $152, 920. 93 was approved

by the Engineer and paid by the Levee District.

On July 27, 2023, LA Contracting submitted its fourth and final application

for payment in the amount of $583, 893. 88. 2 After review of the application, the

Engineer instructed LA Contracting to amend and resubmit the application in

accordance with its comments. By letter dated August 14, 2023, LA Contracting

informed the Engineer that it was submitting a revised application and that it was

also prepared to execute a change order to reduce the quantity of Bid Item 203- 02

from 2, 919 to 2, 896 cubic yards. LA Contracting further advised that it was due

2This requested amount, when added to the payments received totals more than 800,000.00 —well above the original base bid amount.

M full payment for all excavation work completed totaling 12, 093 cubic yards

pursuant to Section 203 of the contract concerning excavation, despite the

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Related

Hoag v. State
889 So. 2d 1019 (Supreme Court of Louisiana, 2004)
Wallace C. Drennan, Inc. v. St. Charles Parish
202 So. 3d 535 (Louisiana Court of Appeal, 2016)

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LA Contracting Enterprise, LLC v. South Lafourche Levee District and Keith Guidry, in his capacity as President of South Lafourche Levee District, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-contracting-enterprise-llc-v-south-lafourche-levee-district-and-keith-lactapp-2024.