NEWMAN MARCHIVE PARTNERSHIP v. Shreveport

944 So. 2d 703, 2006 La. App. LEXIS 2761, 2006 WL 3079096
CourtLouisiana Court of Appeal
DecidedDecember 8, 2006
Docket41,460-CA
StatusPublished
Cited by7 cases

This text of 944 So. 2d 703 (NEWMAN MARCHIVE PARTNERSHIP v. Shreveport) 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
NEWMAN MARCHIVE PARTNERSHIP v. Shreveport, 944 So. 2d 703, 2006 La. App. LEXIS 2761, 2006 WL 3079096 (La. Ct. App. 2006).

Opinion

944 So.2d 703 (2006)

The NEWMAN MARCHIVE PARTNERSHIP, INC., Plaintiff-Appellee,
v.
CITY OF SHREVEPORT, Defendant-Appellant.

No. 41,460-CA.

Court of Appeal of Louisiana, Second Circuit.

November 1, 2006.
Opinion Amending Judgment on Rehearing December 8, 2006.

*705 Weems, Schimpf, Harris, Landry & Carmouche, by Brian D. Landry, Carey T. Schimpf, Kenneth P. Haines, Shreveport, for Appellant.

Wiener, Weiss & Madison, by John M. Madison, Jr., M. Allyn Stroud, Shreveport, for Appellee.

Before STEWART, DREW and MOORE, JJ. STEWART, CARAWAY, DREW, MOORE and SEXTON (Pro Tempore), JJ.

STEWART, J.

This matter arises from a breach of contract suit by The Newman Marchive Partnership, Inc., ("TNMP"), against the City of Shreveport (the "City"). TNMP provided architectural services related to the development of a "Campus Plan" for the city government facilities. The trial court awarded TNMP additional fees and termination expenses totaling $476,146.89. Both parties have appealed the judgment. For the following reasons, we amend the trial court's judgment to reduce the award to $414,200.45. Also, we remand the matter *706 for the trial court to assess costs against the City in accordance with La. R.S. 13:5112.

FACTS

In August 1994, the City advertised for architectural services for a Campus Plan for the city government facilities located at 1234 Texas Street. After the City's Architectural Selection Committee reviewed proposals by three applicants, it selected The Newman Partnership, Inc., now TNMP, as the architect for the project.[1] Although the Campus Plan was to involve multiple projects, the parties entered only one agreement for the entirety of the work. Mayor Hazel Beard and Michael Newman, president of TNMP, executed a written contract on September 12, 1994, using the American Institute of Architects' B141 Standard Form of Agreement Between Owner and Architect, 1987 Edition.

The contract identifies the project as "Additions and Renovations to City Hall facilities." Paragraph 12.4.1 of the contract explains the project as follows:

The project will provide for new buildings, renovations and additions to the existing City facilities located at and adjacent to 1234 Texas Avenue, and adjacent and surrounding properties as may be acquired by the City. The purpose of the project is to provide for facilities for the physical space needs of all the various departments of the City.

Paragraph 12.4.2 describes the services to be provided by TNMP as "programming, site selection consultation, master planning, comprehensive architectural services, . . . and extended construction contract services." Under the contract, the architect's services are considered either basic or additional. Basic services are comprised of the following five phases of the project — schematic design phase, design development phase, construction documents phase, bidding or negotiation phase, and construction phase (contract administration). The fee for basic services is a fixed percentage of the construction cost — eight percent for new buildings and ten percent for renovations. A percentage of the fee is charged at each phase of the project. Additional services are charged as either a percentage fee or an hourly rate depending on the particular service.

Upon confection of the contract, TNMP provided services to the City under three administrations, those of Mayors Beard, Bo Williams, and Keith Hightower. By letter dated July 17, 2000, the City terminated its contract with TNMP. Paragraph 8.7 of the contract provides for payment of termination expenses in the event of termination not the fault of the architect.

On September 19, 2003, TNMP filed suit against the City for breach of contract. TNMP sought damages totaling $1,243,339.23 for payments owed for services, reimbursable expenses, termination expenses, and loss of profits. TNMP amended its petition twice, dropping its claim for loss of profits and otherwise reducing its demand to $793,948.20.[2] A bench trial ensued, after which the trial court rendered written reasons for judgment that thoroughly addressed the issues and claims presented at trial. The trial *707 court's judgment awarded TNMP the amount of $476,146.89, plus legal interest, and divided costs between the parties by assessing seventy-five percent to the City and twenty-five percent to TNMP. Both parties appealed.

The City asserts that the trial court erred in finding TNMP entitled to the following:

1. Basic services fee for redesign of the police building.
2. Basic services fee for renovation of the engineering and customer service building.
3. Basic services fee for design of the court plaza.
4. Additional services fee for delays in construction of the court building and central energy plant.
5. Additional services fees for work on punch list items.
6. Termination expenses.

TNMP answered the appeal to assert error in the trial court's denial of its claims for the following:

1. Basic services fee for design of a proposed new police building.
2. Basic services project management fee for the proposed new police building.
3. Basic services fee for governmental center signage.
4. Additional services fee for a master plan cost comparison.
5. Additional services fee for a campus plan energy study.

TNMP also argues that the trial court erred in failing to assess all costs of the trial court proceedings to the City.

DISCUSSION

Applicable Law

Contracts are the law between the parties and must be performed in good faith. La. C.C. art.1983. Interpretation of a contract requires determination of the common intent of the parties. La. C.C. art. 2045. When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation is needed to determine the parties' intent. La. C.C. art.2046. Each provision in the contract must be interpreted in light of the other provisions so that each is given the meaning suggested by the contract as a whole. La. C.C. art.2050. A doubtful provision must be interpreted in light of the nature of the contract, equity, usages, the conduct of the parties before and after formation of the contract, and of other contracts of a like nature between the parties. La. C.C. art.2053. In cases of doubt, contracts executed in a standard form of one party must be interpreted in favor of the other party. La. C.C. art. 2056. However, if doubt arises from lack of a necessary explanation that one party should have given, or from negligence or fault of one party, the contract must be interpreted in a manner favorable to the other party, whether obligee or obligor. La. C.C. art.2057. See also Total Minatome Corporation v. Union Texas Products Corp., 33,433 (La.App.2d Cir.8/23/2000), 766 So.2d 685.

Factual findings pertinent to interpretation of a contract are not to be disturbed in the absence of manifest error. The Newman Marchive Partnership, Inc., supra; Mount Mariah Bapist Church v. Pannell's Associated Electric, Inc., 36,361 (La.App.2d Cir.12/20/02), 835 So.2d 880, writ denied, 03-0555 (La.05/02/03), 842 So.2d 1101.

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Bluebook (online)
944 So. 2d 703, 2006 La. App. LEXIS 2761, 2006 WL 3079096, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-marchive-partnership-v-shreveport-lactapp-2006.