MARTIN MARIETTA MATERIALS v. US Fidelity

940 So. 2d 152, 2006 WL 2741988
CourtLouisiana Court of Appeal
DecidedSeptember 27, 2006
Docket41,280-CA
StatusPublished
Cited by2 cases

This text of 940 So. 2d 152 (MARTIN MARIETTA MATERIALS v. US Fidelity) 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
MARTIN MARIETTA MATERIALS v. US Fidelity, 940 So. 2d 152, 2006 WL 2741988 (La. Ct. App. 2006).

Opinion

940 So.2d 152 (2006)

MARTIN MARIETTA MATERIALS OF LOUISIANA, INC., Plaintiff-Appellant,
v.
UNITED STATES FIDELITY AND GUARANTY COMPANY, et al, Defendant-Appellee.

No. 41,280-CA.

Court of Appeal of Louisiana, Second Circuit.

September 27, 2006.

*153 McMichael, Medlin, D'Anna & Wedgeworth, L.L.C. by James C. McMichael, Jr., Shreveport, Mark S. Kavanaugh, Jr., for Appellant, Martin Marietta Materials of Louisiana, Inc.

Cheryl L. Duvieilh, Baton Rouge, for Appellee State of Louisiana DOTD.

Krebs, Farley & Pelleteri, P.L.L.C. by David Joseph Krebs, Alberta Louise Adams, Shashauna Marie Dermody, New Orleans, for Appellee United States Fidelity & Guaranty Company.

Before GASKINS, PEATROSS and DREW, JJ.

DREW, J.

In this suit against the Louisiana Department of Transportation ("DOTD") and its surety on a highway project, Martin Marietta Materials appeals a judgment granting DOTD and the surety's motions for summary judgment. We affirm.

FACTS

In 1998, DOTD entered into a contract with Neosho Construction Company, Inc. ("Neosho") to act as the contractor on a highway construction project ("project") in DeSoto Parish. USF & G executed a bond in the amount of $23,107,716.35 to secure the full and timely payment by Neosho of all claimants under the contract. Under this bond, Neosho was named as the principal and DOTD was named as the obligee. *154 Martin Marietta Materials ("Martin Marietta") provided labor and paving materials to Neosho that were used in the project. Neosho ultimately failed to pay $656,009.61 that it owed to Martin Marietta.

On August 23, 2001, Martin Marietta filed a Statement of Claim and Privilege in the mortgage records of DeSoto Parish for the amount owed by Neosho. Martin Marietta erred in identifying the contractor on this lien as Neosho Railworks instead of as Neosho Construction Company, Inc. A copy of the lien was mailed by Martin Marietta to USF & G on August 29, 2001. On August 31, 2001, Martin Marietta mailed a copy of the lien to Michael Murphy, a DOTD Project Engineer, at his field office in Mansfield, Louisiana. The letter to Murphy was stamped as received on September 11, 2001.

Neosho filed for bankruptcy in Maryland on September 20, 2001. On October 3, 2001, DOTD gave formal notice to Neosho that it was in default on the contract, and also gave notice to USF & G that as surety it was required to complete the remaining work.

On October 11, 2001, DOTD recorded notice of Neosho's default on the project in the records of DeSoto Parish. This triggered a 45-day period in which Martin Marietta was required by law to deliver a copy of the sworn statement of the amount due to the Undersecretary of DOTD in Baton Rouge. Martin Marietta failed to do this.

On October 30, 2001, Martin Marietta sent an affidavit of claim to USF & G. Although the letter sent with the affidavit referred to a claim against Neosho Construction Company, Inc., the affidavit itself stated that materials had been furnished to Neosho Railworks on the project.

In February of 2002, DOTD and USF & G executed a takeover agreement. DOTD withheld over $450,000 in earned funds from Neosho and transferred that amount to USF & G.

On February 11, 2002, USF & G notified Martin Marietta that it did not consider the notice to DOTD to be in compliance with the statutory notice requirements.

In August of 2002, Martin Marietta filed a petition for concursus and for damages against DOTD, USF & G, and various subcontractors and suppliers which had provided labor and/or materials for the project and who had claims that remained unpaid. Third-party demands were filed by DOTD and USF & G against one another.

USF & G filed a motion for summary judgment in December 2002 against Martin Marietta on the grounds that Martin Marietta failed to timely provide notice of its claim to DOTD in the manner required by law, and that Martin Marietta failed to identify Neosho by its proper name on the lien that Martin Marietta had recorded. The trial court denied USF & G's motion for summary judgment.

In April of 2005, USF & G filed a second motion for summary judgment on essentially the same grounds urged in the earlier motion. In September of 2005, DOTD filed a motion for summary judgment also seeking a dismissal of Martin Marietta's claim. The trial court granted DOTD's and USF & G's motions for summary judgment. Martin Marietta appealed.

DISCUSSION

A motion for summary judgment shall be granted if "the pleadings, depositions, answers to interrogatories, and admissions on file, together with the affidavits, if any, show . . . that mover is entitled to judgment as a matter of law." La. C.C.P. art. 966(B). Appellate courts review summary judgments de novo under the same criteria *155 that govern the district court's consideration of whether summary judgment is appropriate. NAB Natural Resources, L.L.C. v. Willamette Industries, Inc., 28,555 (La.App.2d Cir.8/21/96), 679 So.2d 477.

Martin Marietta raises three arguments on appeal. First, they contend that the issue surrounding notice to DOTD is one of sufficiency of notice, not timeliness of notice, and therefore, the statutory notice requirements should not be applied so as to bar its claim. Second, it argues that even if it failed to comply with the relevant statutes regarding its claim, that error only affects the concursus claim against DOTD and USF & G under La. R.S. 48:256.8. Martin Marietta maintains that it still has a viable claim against USF & G under La. R.S. 48:256.12 because the notice requirements do not apply to that statute. Third, Martin Marietta argues that the notice of default is void ab initio because it was filed in violation of the automatic stay of proceedings that occurred when Neosho filed bankruptcy.

Statutory Notice Requirements

Regarding the mechanism by which a claimant is to assert his claim, La. R.S. 48:256.5(B) states:

Any claimant shall, after the maturity of his claim and within forty-five days after the recordation of final acceptance of the work by the department or of notice of default of the contractor or subcontractor, file a copy of sworn statement of the amount due him with the department having the work done and record the original sworn statement of the amount due him in the office of the recorder of mortgages for the parish in which the work is done.

La. R.S. 48:256.5(D) sets forth DOTD's obligations once a claimant complies with paragraph (B):

(1) The department shall withhold from progress payments and the final payment one hundred twenty-five percent of the amount claimed after receipt by the undersecretary of the department at the location specified in the recorded contract of a sworn statement of amount due from a claimant to the extent of payments due and owed the contractor after receipt of said claim.
(2) When the department makes final payment to the contractor without deducting such amounts as required in this Subsection of all outstanding claims so served on it or without obtaining a bond from the contractor to cover the total amount of all outstanding claims, the department shall become liable for the amount of these claims to the extent of its failure to withhold funds as required in this Subsection.

At the time that the DOTD entered into the contract with Neosho, it was required by law that:

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

Related

In Re Succession of Franklin
968 So. 2d 811 (Louisiana Court of Appeal, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
940 So. 2d 152, 2006 WL 2741988, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-marietta-materials-v-us-fidelity-lactapp-2006.