QUALITY DESIGN v. City of Gonzales

977 So. 2d 87, 2007 WL 4181286
CourtLouisiana Court of Appeal
DecidedNovember 28, 2007
Docket2006 CA 2211
StatusPublished
Cited by4 cases

This text of 977 So. 2d 87 (QUALITY DESIGN 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 v. City of Gonzales, 977 So. 2d 87, 2007 WL 4181286 (La. Ct. App. 2007).

Opinion

977 So.2d 87 (2007)

QUALITY DESIGN AND CONSTRUCTION, INC.
v.
CITY OF GONZALES Through Its Duly Elected Mayor, Johnny BERTHELOT.

No. 2006 CA 2211.

Court of Appeal of Louisiana, First Circuit.

November 28, 2007.

*88 Rick A. Alessi, Christian T. Avery, Gonzales, LA, and Joseph C. Wiley, Baton Rouge, LA, for Plaintiff-Appellant Quality Design And Construction, Inc.

Robert Ryland Percy, III, Katherine Tess Percy, Gordon Dallon Bush, II, Gonzales, LA, For Defendant-Appellee City of Gonzales.

Before CARTER, C.J., PETTIGREW, and WELCH, JJ.

PETTIGREW, J.

The instant appeal arises out of a public works construction contract in which appellant contractor was the successful low bidder on a municipal water park for children. A date for the substantial completion of the project was fixed, and when the project was not completed by the deadline, the city withheld payment on a portion of the contract as retainage.[1]

The contractor subsequently filed suit claiming that unforeseen obstacles and/or items not contained in the contract had increased costs and lengthened construction time. The trial court rendered judgment awarding the contractor the amount retained, subject to a deduction for 14 days of liquidated damages. From this judgment, the contractor has appealed.

FACTS

In late 2003, the City of Gonzales ("City") solicited bids on a public works project for the construction of a children's "sprayground" and other improvements ("the facility") at a public recreational facility located within the City known as Jambalaya Park. The bid specifications were written around water fixtures and products manufactured by Raindrop Manufacturing; however, the bid specifications allowed a contractor to substitute equivalent engineering-approved products.

The City ultimately received three bids for the construction of the facility with the bid submitted by Quality Design and Construction, Inc. ("Quality") being considerably lower than the other two. As the successful low bidder, Quality entered into a written contract with the City on January *89 14, 2004. The total price specified in the contract for the construction of the facility was $390,663.00.

Throughout the course of its construction, the facility was plagued with delays and other obstacles that caused additional expenses to be incurred and delayed the construction process. On or about August 4, 2004, Quality presented an application for final payment to the City and thereafter submitted a clear lien certificate obtained from the Ascension Parish Clerk of Court. Following the City's approval of Change Order Number 1, the total price of the adjusted contract was $407,487.24. Quality received payments totaling $350,246.70, leaving a final balance of the contract price of $57,240.54. On August 6, 2004, Quality was presented with a punch list that identified sixty-six items that needed to be addressed with respect to the project. It is undisputed that the punch list, prepared on behalf of the City, failed to set forth an estimate of the costs necessary to complete the items identified on the punch list.

Ultimately, a Certificate of Substantial Completion, signed by the project engineer and the City's mayor, fixed July 30, 2004, as the date that the project was substantially complete. Said certificate was thereafter recorded in the mortgage records of Ascension Parish on August 20, 2004. The facility at issue in this litigation has been continuously used for its intended purpose since on or about the date of substantial completion.

The City thereafter refused to pay the outstanding balance and made no payments subsequent to the date of substantial completion.

ACTION OF THE TRIAL COURT

On October 20, 2005, Quality filed a Petition for Mandatory Injunction against the City in the 23rd Judicial District Court. Quality alleged that the City was in violation of Louisiana Public Works statutes that prohibit a public entity from withholding more than 10 percent of the contract price after the expiration of forty-five days from the date of substantial completion. Quality sought to recover the full amount of the unpaid balance of the contract price together with legal interest from the date payment was due, reasonable attorney fees based upon the City's failure to pay as set forth in La. R.S. 38:2191, and for all costs of these proceedings. Quality further prayed that the City be ordered to appear and show cause why a mandatory injunction should not be issued ordering the City to make the full final payment owed pursuant to the public works contract at issue.

The City answered the lawsuit and put forth a reconventional demand to recover funds in excess of $15,000.00 that the City alleged it was required to expend in order to complete the project. The City further alleged that it was entitled to "delay" and/or "liquidated" damages in excess of $60,000.00 as a result of Quality's failure to properly complete the project in a timely manner.

On December 14, 2005, Quality filed an Amended and Supplemental Petition against the City wherein Quality re-asserted the demands set forth in its original Petition for Mandatory Injunction and sought additional expenses documented on the written change orders in an amount to be determined by the court. Quality further sought any and all applicable statutory penalties based upon the City's failure to comply with the provisions of the Louisiana Public Works Act, together with damages representing the additional costs and financial losses occasioned by Quality's attempts to satisfy the unreasonable demands of the City.

*90 Following a trial on January 30, 2006, the trial court rendered judgment on March 9, 2006, ruling that Quality was entitled to $54,000.00 from the City together with all costs. With respect to the City's reconventional demand against Quality, the trial court ruled that the City was entitled to recover $2,800.00 from Quality as liquidated damages for the overrun of the completion date. Following rendition of this judgment, both parties requested that the court issue written reasons for its judgment.

In its written reasons, the trial court noted that the work performed by Quality with respect to the "sprayground" facility "was done in a timely manner, with the exception of the twenty-one (21) days for which liquidated damages were awarded." The court further ruled that any future work authorized by the City to remedy or repair defective products or workmanship would be considered warranty work, which would not be covered by the March 9, 2006 judgment. Similarly, the trial court ruled that the City's claim to recover amounts it had yet to expend for warranty work constituted a separate action; however, the court reserved the City's right to pursue said warranty claims. Finally, noting an absence of evidence in the record that would support the reasonableness of the fees requested, the trial court denied Quality's request for attorney fees.

Quality filed a motion for a partial new trial seeking an opportunity to present evidence as to the total amount of legal fees that it incurred as well as the reasonableness of such fees. Quality further prayed that the trial court render judgment awarding a reasonable attorney fee. The City opposed the motion for a partial new trial on the ground that same was not timely filed.

On May 2, 2006, the trial court issued a judgment finding that while a Certificate of Substantial Completion had been recorded for the construction project at issue, the court could find no evidence of the City's formal, final acceptance of the work as required by La. R.S.

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977 So. 2d 87, 2007 WL 4181286, Counsel Stack Legal Research, https://law.counselstack.com/opinion/quality-design-v-city-of-gonzales-lactapp-2007.