North Cent. Util., Inc. v. East Columbia Water Dist.

480 So. 2d 901
CourtLouisiana Court of Appeal
DecidedDecember 4, 1985
Docket17395-CA
StatusPublished
Cited by10 cases

This text of 480 So. 2d 901 (North Cent. Util., Inc. v. East Columbia Water Dist.) 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
North Cent. Util., Inc. v. East Columbia Water Dist., 480 So. 2d 901 (La. Ct. App. 1985).

Opinion

480 So.2d 901 (1985)

NORTH CENTRAL UTILITIES, INC., Plaintiff-Appellant,
v.
EAST COLUMBIA WATER DISTRICT, Defendant-Appellee.

No. 17395-CA.

Court of Appeal of Louisiana, Second Circuit.

December 4, 1985.

*902 Joe D. Guerriero, Monroe, for plaintiffappellant.

Minard & Mixon by Cameron C. Minard, Columbia, for defendant-appellee.

Before JASPER E. JONES, SEXTON and LINDSAY, JJ.

LINDSAY, Judge.

The plaintiff, North Central Utilities, Inc., appeals the trial court's dismissal of its action to obtain a judgment recognizing an award by the American Arbitration Association in its favor and against the defendant, East Columbia Water District. Finding that the trial court erred in failing to confirm the arbitration award, we reverse.

The plaintiff and defendant entered into a contractual agreement for the extension and improvement of the water system in the East Columbia District on June 15, 1981. At the conclusion of the plaintiff's work for the defendant approximately one year later, the plaintiff claimed extra work had been performed and additional costs expended for which it was not responsible and for which it should be compensated. This included "down time" occasioned by the lack of certain right-of-way permits and the cost of construction materials needed to complete the project. This work was not specifically set forth in the original contract or authorized by change order. The plaintiff had notified the defendant of these claims and had requested a meeting to discuss these claims. The plaintiff had also requested that a change order be issued to cover these additional costs; however, the project engineer denied the request stating that until a detailed justification and specific cost breakdown was provided to them, they would not be able to obtain approval for a change order. There was a final acceptance of the project in the fall of 1982 based on the engineer's Certificate of Substantial Completion and when no action was taken with respect to the plaintiff's claims for additional costs, the plaintiff notified the defendant of its intention to resolve this issue through arbitration pursuant to the contract between the parties. Section A4-30.1 of this contract provided that:

All claims, disputes and other matters in question arising out of, or relating to, the CONTRACT DOCUMENTS or the breach thereof, except for claims which have been waived by the making and acceptance of final payment as provided by Section A4-20 shall be decided by arbitration in accordance with the Construction Industry Arbitration Rules of the American Arbitration Association. This agreement to arbitrate shall be specifically enforceable under the prevailing arbitration law. The award rendered by the arbitrator shall be final, and judgment may be entered upon it in any court having jurisdiction thereof.

The plaintiff then submitted a formal demand for arbitration with the American Arbitration Association claiming $30,171.16 for additional construction days earned under the contract and performance of repair work for which plaintiff was not responsible. The Tribunal Administrator of the American Arbitration Association notified the defendant of the plaintiff's demand for arbitration and enclosed a copy of the Construction Industry Arbitration Rules and a list of potential arbitrators. The parties were further notified of the proceedings and a hearing date was set for February 21, 1983 in West Monroe. On that date, the plaintiff, its witnesses, and the arbitrator appeared for the hearing; however the defendant did not appear. The defendant also had not answered any of the correspondence from the American Arbitration Association. After hearing the plaintiff's evidence, the arbitrator took the matter under advisement and on March 4, 1983 awarded the plaintiff $25,061.72 in settlement *903 of the claims submitted to arbitration. This award against the defendant also included payment of the arbitration costs.

The plaintiff then petitioned the trial court to recognize this award. The defendant filed an exception of no cause or right of action. After a hearing on June 2, 1983 the trial court, after considering the evidence which was admitted subject to the plaintiff's objections, accepted the defendant's contention that its representatives had not been put on notice as to the claims they had to defend against. The court found that the defendant had never been furnished with an itemized invoice of the amounts the plaintiffs were claiming. The court then dismissed the plaintiff's petition.

The judgment on the exception was then appealed by the plaintiff to this court. In North Central Utilities, Inc. v. East Columbia Water District, 449 So.2d 1186 (La. App.2d Cir.1984) the trial court's ruling was reversed, this court holding that the matters raised by the defendant went to the merits of the case and were irrelevant for purposes of determining whether plaintiff's petition stated a right or cause of action. The case was remanded to the district court for further proceedings. A hearing was then held on September 17, 1984 in the district court. After hearing the evidence and accepting the transcript of the hearing on the exception of no cause or right of action, the trial court declined to recognize the arbitration award and again dismissed the plaintiff's suit.

In its written reasons for judgment, the trial court found that the plaintiff's demand for $30,171.16 was for matters "above and outside the contract." The court stated that this demand for compensation was for work that was not included in the original contract and was never approved by change order, therefore, there was no dispute between the parties that was subject to arbitration under the provisions of the contract. The court also found the defendant had filed a final acceptance and that a check had been issued in complete payment of all the work done on the contract. The court noted that pursuant to another provision in the contract, there was no work "excepted" by the plaintiff in the final settlement as having been performed and not paid for; thus, the plaintiff had forfeited any right to arbitration. The plaintiff now appeals, contending that the trial court's judgment should be reversed. The plaintiff argues that it properly complied with the contract terms in seeking and obtaining relief through arbitration. Under the Louisiana Arbitration Law, the plaintiff's contention is correct and the award of the American Arbitration Association should have been confirmed.

The contract between the parties in this case specifically provided for arbitration of "all claims, disputes and other matters in question arising out of, or relating to, the CONTRACT DOCUMENTS...." There were no disputes over the existence of this clause in the contract and no arguments were raised in either of the lower court hearings concerning its validity. The plaintiff showed, through testimony and evidence of correspondence from the American Arbitration Association to the parties, that the proper procedures were followed in submitting its claims for arbitration, in notifying the parties of the arbitration proceedings, and in obtaining the arbitration award after presenting evidence of its claim to the selected arbitrator.

At the hearing on the plaintiff's petition to confirm and recognize the arbitration award, the trial court heard evidence relating to the defendant's claims as to why the arbitration award should not be recognized. However, the defendant did not file any responsive pleadings and, therefore, did not set forth any affirmative defenses. The Louisiana Arbitration Law is set forth in LSA-R.S. 9:4201 et seq.

LSA-R.S.

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Cite This Page — Counsel Stack

Bluebook (online)
480 So. 2d 901, Counsel Stack Legal Research, https://law.counselstack.com/opinion/north-cent-util-inc-v-east-columbia-water-dist-lactapp-1985.