Pyro Incinerator & Supply Corp. v. Gervais F. Favrot Co.

210 So. 2d 356, 1968 La. App. LEXIS 5064
CourtLouisiana Court of Appeal
DecidedMay 6, 1968
DocketNo. 3037
StatusPublished
Cited by3 cases

This text of 210 So. 2d 356 (Pyro Incinerator & Supply Corp. v. Gervais F. Favrot Co.) 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
Pyro Incinerator & Supply Corp. v. Gervais F. Favrot Co., 210 So. 2d 356, 1968 La. App. LEXIS 5064 (La. Ct. App. 1968).

Opinion

JOHNSON, Judge.

The plaintiff, Pyro Incinerator & Supply Corp. (we will call it Pyro), a mechanical contractor, domiciled and doing business in Mineóla, Long Island, New York, and plaintiff, Pierre E. Bagur, Jr., (we will call him Bagur), a manufacturer’s representative, individually domiciled and doing business in New Orleans, have appealed from the judgment of the Civil District Court for the Parish of Orleans dismissing their suit brought against defendant, Gervais F. Favrot Co., Inc., (we will call it Favrot), to recover certain amounts for alleged contract violations.

Plaintiffs allege that Pyro had an oral agreement with defendant, whereby Pyro would submit a bid to Favrot for a subcontract for the construction of a phase or item of a refuse incinerator to be built in New Orleans, conditioned that if Pyro’s bid be low Favrot would use the bid in Favrot’s bid for the general contract and in turn would award the subcontract for that particular phase or item to Pyro, if Favrot were awarded the general contract. Favrot admits that it agreed to use Pyro’s bid if it were low for that phase of the work but Favrot denied that it had any binding agreement to award the subcontract to Pyro, though the Favrot witnesses testified that Favrot had in mind to award the subcontract to Pyro if Favrot got the contract to build the facility. The city awarded the general contract to Favrot but upon being informed that Favrot intended to give the subcontract to Pyro for the particular phase on which Pyro made its bid to Favrot the city refused to approve Pyro as a subcontractor and Pyro did not get the subcontract which it wanted and expected, for the reason that Favrot could not appoint a subcontractor not approved by the city. Pyro alleges and its witnesses testified that the oral agreement between Pyro and Favrot amounted to a joint venture, which Pyro asserts Favrot violated and Pyro claims payment of its anticipated profit, expenses, compensation for experience and for assistance and services Pyro claims it rendered to Favrot in the preparation of Favrot’s general contract bid.

The City of New Orleans desiring to construct a 400 ton refuse incinerator advertised for bids. Knowing that one of his clients, Pyro, specialized in that type of construction, and knowing that Favrot was a well-established general contractor in New Orleans who would bid for that construction, Bagur contacted Favrot to find out if Favrot would be interested in receiving a subcontract bid on certain items of the facility to be constructed. Favrot informed him that it would be interested to receive such a bid.

The city called for bids in accordance with the specifications prepared by its engineers. The city furnished to bidders forms showing that six specific items (sometimes called phases) of the work should be figured separately. Item 3 included the incinerator furnaces and other specified attachments and parts. Favrot went about preparing a bid on each item separately and also a bid for the general contract which included certain combined items, which combination was designated as item 5.

After Bagur had contacted the Favrot firm, Dan Schwartz, a mechanical engineer and President of Pyro, came to New Orleans from New York and put up at the St. Charles Hotel. He contacted Gervais F. Favrot, then president, Jack W. Wilson, vice president and other members of Favrot and they offered him a desk and the use of the telephone in their office for his convenience in assembling a bid for Favrot to subcontract item 3 of the construction. Mr. Schwartz said he brought an adding [358]*358machine and other equipment to the hotel and did work in the preparation of the bid both in his hotel room and in the Fav-rot office.

Pyro was not licensed to do business in Louisiana and it could not submit a bid direct to the city in its own name. Mr. Schwartz testified that he made an agreement with Favrot whereby Pyro and Favrot were to work together in the preparation of their respective bids and particularly that Pyro' would assist Favrot by checking and analyzing the various bids, proposals and prices submitted to Favrot, it being understood as already stated that Favrot would use Pyro’s bid if it were lower than others who might bid on item 3. It was lower and Favrot did include it in the Favrot bid for the general contract. Mr. Schwartz further said that the reason Fav-rot wanted and needed Pyro’s assistance was that Favrot had never built a unit of this kind, whereas Pyro' was experienced and specialized in the installation and construction of this very type of utility. He said further that this agreement was exclusive with Favrot. Pyro made no other bid to any other bidder.

Plaintiffs’ contention that Favrot wanted and needed Pyro’s assistance in assembling Favrot’s bid on this job because the subject was entirely foreign to1 Favrot, it never having bid on this type of work, and that Favrot used that assistance as a consideration for the agreement, is not at all impressive and is denied by Favrot’s witnesses. Favrot has been in the general contracting business in New Orleans for forty-seven years. Its volume of business is shown to be some $15,000,000.00 per year. Moreover, it is significant to note that Pyro must have known that Favrot did not have the last word in awarding subcontracts. Pyro wrote Favrot on January 15, 1960, (D-3) to say that it understood that the general contract had been awarded to Favrot and “ * * * we certainly hope that we are still in the picture with you.” This is not the language one who knows he has a contract would use.

Plaintiff Bagur was Pyro’s only supporting witness. Bagur does not seek to recover anything for himself by this suit and it never was made quite clear just why Bagur was joined as a party plaintiff, unless, as a resident of Louisiana, it was for the imaginary purpose of attempting to give some life to the suit in the face of the fact that it was apparent there would be some controversy over the procedural capacity of Pyro to make a judicial demand and stand in judgment. Of course, Bagur may have had a claim for some commission against his client, Pyro, but with that we are not here concerned.

Mr. J. W. Wilson was at that time Vice President of Favrot. He is now the president. The gist of his testimony is that Mr. Schwartz, for Pyro, came to- the Fav-rot office and said that Pyro wanted to bid on the item 3 portion of the job, and Schwartz was told that Favrot would accept a proposal with the understanding that if Pyro’s bid were low, Favrot would use the bid but Favrot reserved the right to receive bids from others and if any other were lower, Favrot would accept it. Fav-rot received other bids on item 3 but Pyro’s bid was low and Favrot did include it in Favrot’s general contract bid. This witness explained that there was no guarantee given Pyro beyond that. Plibrico also made a bid direct to the city on item 3 which was lower than Plibrico’s bid to1 Favrot on that item. Mr. Wilson was asked as to whether Mr. Schwartz assisted Favrot in preparing the Favrot general contract bid and Mr. Wilson answered: “I do- not know whether he assisted in any way at all. There’s nothing he would have done that we wouldn’t have done without him if he had not been there.” Mr. Wilson was also' asked if Mr. Schwartz did not agree with Mr. Wilson that Pyro- would not submit bids to any other bidder on item 3. Mr. Wilson said: “They didn’t agree with us. They told us they were [359]*359going to bid only to us. We didn’t make them make that stipulation. They said: ‘This is what we are going to do.’ ” He was asked whether he agreed with Mr. Bagur or Mr.

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
210 So. 2d 356, 1968 La. App. LEXIS 5064, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pyro-incinerator-supply-corp-v-gervais-f-favrot-co-lactapp-1968.