Pierce Foundations, Inc. v. Jaroy Construction, Inc.

190 So. 3d 298, 2016 WL 2338054, 2016 La. LEXIS 1051
CourtSupreme Court of Louisiana
DecidedMay 3, 2016
Docket2015-C -0785
StatusPublished
Cited by56 cases

This text of 190 So. 3d 298 (Pierce Foundations, Inc. v. Jaroy Construction, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pierce Foundations, Inc. v. Jaroy Construction, Inc., 190 So. 3d 298, 2016 WL 2338054, 2016 La. LEXIS 1051 (La. 2016).

Opinions

CRICHTON, Justice.

_JjThis case involves the interpretation of two provisions of the Public Works Act (“Act”), La. R.S. 38:2241, et seq. We granted.the writ application to determine whether, under La. R.S,, 38:2247, the notice and recordation requirements of La. R.S. 38:2242(B) are necessary conditions for a claimant’s right of action against a bond furnished pursuant -to La. R.S. 38:2241. Consistent, with the stated purpose .of the Act, we hold that the claimant’s failure to file a sworn statement with the public authority did not affect the right of the subcontractor, in contractual privity with the general contractor, to proceed directly against the contractor and its surety. We therefore reverse the decision of the court [300]*300of appeal and reinstate the decision of the trial court. , .

BACKGROUND

This matter arises out of a public works project for the construction of a gymnasium' in Terrytown, Louisiana. Pursuant to a contract between JaRoy Construction Inc. (“JaRoy” or “contractor”) and Jefferson Parish Council (“Jefferson Parish”), JaRoy was to serve as the general contractor, In compliance with La. R.S. 38:2241, et seq., the contractor furnished to Jefferson Parish a bond, on .which the Ohio Casualty Insurance Company (“Ohio Casualty”) was the surety.

JaRoy thereafter entered into a written subcontract with Pierce Foundations, Inc. (“Pierce”) to provide and install pilings on the project. On November 3, 2008, | gPierce completed the pile driving as called for in the contract. The contractor failed to pay to Pierce certain funds Pierce contended were due under the contract.1

In July 2009, Pierce filed a “Petition for Damages in Contract” against the contractor, and, in July 2010, amended the petition to add Ohio Casualty as a defendant. Pierce alleged that Ohio Casualty and the contractor were “jointly and severally liable” to Pierce for1 the failure of thé- contractor ■ to perform under the contract. Ohio Casualty asserted several affirmative defensés to these allegations, one of which was that Pierce failed to comply with conditions precedent to 'filing a claim against the surety. When the ‘Contractor filed a petition for bankruptcy protection in December 2010," the lawsuit proceeded solely against'Ohio Casualty:"'

On October 17, 2011, when the project was substantially completed, the Jefferson Parish government filed a notice, of acceptance' of work with the Jefferson Parish mortgage records office. This occurred over a year after Pierce amended its lawsuit to add Ohio Casualty as a defendant. It is undisputed that Pierce never filed a sworn statement of claim in the mortgage records.

Before trial, Ohio Casualty filed a motion for summary judgment, contending that Pierce was required to comply with the notice and recordation requirements of La. R.S. 38:2242(B) and, because it failed to do so within 45 days of Jefferson Parish’s acceptance of the project, Pierce could not recover from Ohio Casualty under La. R.S, 38:2247. Pierce opposed the motion, asserting that the statute does not affect the right to proceed in contract, and the Act never contemplated a situation in which notice would be given and suit filed before the events outlined in R.S. 38:2242. Pierce contended that the Act does not contemplate any loss .of rights, other than the privilege against the public entity. The trial court granted Ohio Casualty’s motion' in part, “only’ to the extent that | ¡¡there is no privilege in favor of [Pierce],” and otherwise permitted the suit to proceed. Ohio Casualty sought supervisory reviéw, and the court of appeal denied relief,' stating:

On the showing made, we decline to exercise our supervisory jurisdiction. K Construction, Inc. v. Burko Construction, Inc., 629 So.2d 1370 (La.App. 4 Cir.1993); Wilkin v. Dev Con Builders, Inc., 561 So.2d 66 (La.1990).

Pierce Founds., Inc. v. The Ohio Casualty Ins. Co., 12-0859 (La.App. 5 Cir. 11/09/12) (unpublished).

On December 13, 2012, after a bench trial, the trial court rendered judgment in [301]*301favor of Pierce in the amounts ■ of $59,428.96 for sums owed under the contract and $57,000.00 for idle time, plus judicial interest from the date of the original judgment. As to Ohio Casualty’s, argument that Pieree’s exclusive right of action against it was limited to the relief granted by the Act and subject to compliance with its requirements, the trial court noted that it had “already rejected” this defense and stated that there was “no reason for this court to revisit that issue.” Following several motions for a new trial and amended judgments, the finhl judgment was signed on May 19, 2014.

Ohio Casualty suspensively appealed the judgment, contending that the trial court erred in failing to dismiss it prior to trial, because Pierce’s failure to comply with the notice provisions of La. R.S. 38:2242(B) resulted in forfeiture of its right of action against the surety. Pierce devolutively appealed, asserting the trial court erred by awarding interest only from the date of judgment. The Court of Appeal, Fifth Circuit, concluded that Pierce’s failure to comply with the relevant notice provisions deprived it of a right of action against Ohio Casualty, reversed the trial court judgment, and dismissed the suit as to Ohio Casualty. Pierce Founds., Inc. v. JaRoy Constr., Inc., 14-669 (La.App. 5. Cir. 3/25/15), 169 So.3d 580.

|4We then granted Pierce’s application for a writ of certiorari. Pierce Founds., Inc. v. JaRoy Constr., Inc., 15-0785 (La.6/5/15), 171 So.3d 938.

RELEVANT LAW

In 1918, the legislature enacted Act 224, the precursor to the modern Public Works Act, La. R.S. 38:2241, et seq., to “protect those performing labor and furnishing materials for public works.” Wilkin v. Dev Con Builders, Inc., 561 So.2d 66, 70 (La.1990). The laws do not grant beneficiaries a lien on the public work itself, but rather gives them “a privilege against the unex-pended fund in the possession of the public entity with whom the original contractwas entered irito.” Id. (quoting Pigeon-Thomas Iron Co. v. Drew Bros., 162 La. 836, 111 So. 182, 183 (1926)). As .this Court stated:

The effect of these provisions is to give certain classes of persons not enjoying privity of contract with the general contractor or with the.governing authority a claim nevertheless against the general contractor and his surety and in some instances a .claim against thq governing authority itself. t

Id. at 70. The laws also protect a public authority complying with the requirements of the statute from expenses caused by the failure of the contractor to perform the contract. 561 So.2d at 71. ;

The statutory framework set forth in the Act accomplishes this purpose, first/ 'by mandating that, when a public entity enters into a contract in excess of $25,000.00 for the construction, alteration, or repair of any public works, the contractor is required to post a bond “in a sum of not-less than fifty percent of the contract price for the payment by- the contractor or subcontractor to claimants • as ■ .defined in . R.S. 38:2242.” • La. R.S. 38:2241(A)(2). - .The law further establishes a means for asserting a claim under the Act, set forth in La. R.S. 38:2242(B): .<■

Any claimant2

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

Related

State of Louisiana in the Interest of N.T. Vs.
Louisiana Court of Appeal, 2025
Ward v. Rasier, LLC
E.D. Louisiana, 2025
Kenneth L. Harper v. Lauren T. Harper
Louisiana Court of Appeal, 2024
Batiste v. Walmart Inc.
M.D. Louisiana, 2024
Interdiction of Carroll Leblanc Constance
Louisiana Court of Appeal, 2024
Nelson v. Landry
M.D. Louisiana, 2024
Abshire v. Livingston Parish
M.D. Louisiana, 2023
Richard Hollyfield v. Amanda Tullos, M.D.
Louisiana Court of Appeal, 2022

Cite This Page — Counsel Stack

Bluebook (online)
190 So. 3d 298, 2016 WL 2338054, 2016 La. LEXIS 1051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pierce-foundations-inc-v-jaroy-construction-inc-la-2016.