Quality Design & Construction, Inc. v. City of Gonzales

146 So. 3d 567, 2013 La.App. 1 Cir. 0752, 2014 WL 3534701, 2014 La. App. LEXIS 621
CourtLouisiana Court of Appeal
DecidedMarch 11, 2014
DocketNo. 2013 CA 0752
StatusPublished
Cited by12 cases

This text of 146 So. 3d 567 (Quality Design & Construction, Inc. v. City of Gonzales) 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
Quality Design & Construction, Inc. v. City of Gonzales, 146 So. 3d 567, 2013 La.App. 1 Cir. 0752, 2014 WL 3534701, 2014 La. App. LEXIS 621 (La. Ct. App. 2014).

Opinions

PETTIGREW, J.

|2The defendant, the City of Gonzales (the City), appeals a January 3, 2013 judgment granting a writ of mandamus. The mandamus compels the City to pay a contract balance of $51,200.00, previously adjudged by the trial court (and affirmed by this court) to be due and owing to the plaintiff, Quality Design and Construction, Inc. (QDC). QDC also appeals that judgment, assigning error to the court’s failure to include an order compelling the City additionally to pay interest on the amount owed and due.

PROCEDURAL BACKGROUND

Prior Litigation

Prior to the mandamus underlying this appeal, this matter was litigated regarding QDC’s right to collect a money judgment [569]*569from the City for the unpaid balance on a public works construction project (a municipal water park for children), for which QDC was the successful low bidder. The trial court rendered judgment on March 9, 2006, against the City, awarding QDC the amount retained, $54,000.00, subject to a deduction for the liquidated damages of a 14-day overrun of the project, in the amount of $2,800.00, for a total judgment of $51,200.00, together with all costs. The trial court denied QDC’s claim for attorney’s fees. In written reasons for that judgment, the trial court stated that any future work authorized by the City to remedy or repair defective products or workmanship would be considered warranty work, which was not and would not be covered by that March 9, 2006 judgment. The trial court further found the City’s claim to recover amounts it had yet to expend for warranty work constituted a separate action, and the trial court expressly reserved the City’s right to pursue such warranty claims.

In an opinion rendered on November 28, 2007, this court affirmed the portion of the trial court’s judgment finding that QDC was entitled to payment of the contract balance in the total amount of $51,200.00. This court reversed that part of the trial court’s judgment that denied QDC’s claim for attorney’s fees, remanding the matter to the trial court for a determination of the appropriate award for attorney’s fees. Finally, this court also amended the trial court’s judgment to include legal interest on the award of $54,000.00 from July 30, 2004 (the date of judicial demand) to the date of substantial | ^completion of the contract. Quality Design and Construction, Inc. v. City of Gonzales, 2006-2211 (La.App.l Cir. 11/28/07), 977 So.2d 87. Neither party sought review of that judgment; thus, it became final.

Current Litigation

On October 26, 2012, QDC filed a Petition for Alternative Writ of Mandamus, alleging that notwithstanding the trial court’s judgment, having been largely affirmed by this court and rendered final, no amount whatsoever had been paid by the City to QDC. Relying on La. R.S. 38:2191(D), QDC sought to enforce the payment of the contract balance by writ of mandamus compelling the payment of the sums due, together with attorney’s fees, legal interest, and costs.

After a hearing, the trial court, finding as. a matter of law that mandamus lies to compel payment of the contract balance, rendered judgment on January 3, 2013, granting the writ of mandamus, making it peremptory, and ordering Barney Arcen-eaux, in his capacity as Mayor of the City of Gonzales, to pay QDC the sum of $51,200.00.

As noted earlier, both parties have appealed.

THE CITY’S APPEAL

As appellant, the City asserts that mandamus is not an appropriate remedy pursuant to La. R.S. 38:2191(D), since the substantial majority of the funds budgeted for the construction of the project have been exhausted, through payments to QDC as well as payments to subsequent contractors and suppliers, hired to correct and/or complete the scope of QDC’s work. The City further asserts that mandamus is also not an appropriate remedy pursuant to that same statute because QDC failed to prove that the City is withholding payment “arbitrarily and without reasonable cause” as required by the statute. Thus, the City maintains the trial court erred in granting mandamus.

STANDARD OF REVIEW

As revealed below, the City’s appeal requires us to interpret a Louisiana statute [570]*570relative to the enforcement of a money judgment against a political subdivision of the state. Because the proper interpretation of a statute is necessarily a question of law, 14we apply a de novo standard of review. Newman Marchive Partnership, Inc. v. City of Shreveport, 2007-1890, p. 3 (La.4/8/08), 979 So.2d 1262, 1265.

APPLICABLE LAW

The payments for public contracts are governed by Louisiana Revised Statutes Title 38, Chapter 10. Specifically, La. R.S. 38:2191, on which QDC’s arguments rely, provides as follows:

A. All public entities shall promptly pay all obligations arising under public contracts when the obligations become due and payable under the contract. All progressive stage payments and final payments shall be paid when they respectively become due and payable under the contract.
B. Any public entity failing to make any final payments after formal final acceptance and within forty-five days following receipt of a clear lien certificate by the public entity shall be liable for reasonable attorney fees.
C. The provisions of this Section shall not be subject to waiver by contract.
D. Any public entity failing to make any progressive stage payments arbitrarily or without reasonable cause, or any final payment when due as provided in this Section, shall be subject to mandamus to compel the payment of the sums due under the contract up to the amount of the appropriation made for the award and execution of the contract.

(Emphasis added.)

The issuance of mandamus generally is governed by La. C.C.P. art. 3862, which provides:

A writ of mandamus may be issued in all cases where the law provides no relief by ordinary means or where the delay involved in obtaining ordinary relief may cause injustice; provided, however, that no court shall issue or cause to be issued a writ of mandamus to compel the expenditure of state funds by any state department, board or agency, or any officer, administrator or head thereof, or any officer of the state of Louisiana, in any suit or action involving the expenditure of public funds under any statute or law of this state, when the director of such department, board or agency, Or the governor shall certify that the expenditure of such funds would have the effect of creating a deficit in the funds of said agency or be in violation of the requirements placed upon the expenditure of such funds by the legislature,

Because the City’s arguments present a question of the proper interpretation of La. R.S. 38:2191(D), the following principles of statutory interpretation are relevant and applicable herein. The function of statutory interpretation and the construction to be given to legislative acts rests with the judiciary. Livingston Parish Council on Aging v. Graves, 2012-0232, p. 3 (La.12/4/12), 105 So.3d 683, 685. The fundamental [ r,question in all cases of statutory interpretation is legislative intent and the ascertainment of the reason or reasons that prompted the legislature to enact the law. In re: Succession of Boyter, 99-0761, p. 9 (La.1/7/00), 756 So.2d 1122, 1128.

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146 So. 3d 567, 2013 La.App. 1 Cir. 0752, 2014 WL 3534701, 2014 La. App. LEXIS 621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quality-design-construction-inc-v-city-of-gonzales-lactapp-2014.