RAMELLI GROUP v. City of New Orleans

997 So. 2d 612, 2008 La.App. 4 Cir. 0354, 2008 La. App. LEXIS 1369, 2008 WL 4724081
CourtLouisiana Court of Appeal
DecidedOctober 22, 2008
Docket2008-CA-0354
StatusPublished
Cited by4 cases

This text of 997 So. 2d 612 (RAMELLI GROUP v. City of New Orleans) 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.

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RAMELLI GROUP v. City of New Orleans, 997 So. 2d 612, 2008 La.App. 4 Cir. 0354, 2008 La. App. LEXIS 1369, 2008 WL 4724081 (La. Ct. App. 2008).

Opinion

997 So.2d 612 (2008)

The RAMELLI GROUP, L.L.C.
v.
The CITY OF NEW ORLEANS.

No. 2008-CA-0354.

Court of Appeal of Louisiana, Fourth Circuit.

October 22, 2008.

*613 Gladstone N. Jones III, Paul H. Villalobos, Jones Swanson Huddell & Garrison, L.L.C., New Orleans, LA, for the Ramelli Group, L.L.C.

Robert J. Ellis, Jr., Deputy City Attorney, Albert A. Thibodeaux, Chief Deputy City Attorney, Penya Moses-Fields, City Attorney, New Orleans, LA, for City of New Orleans.

Peter J. Butler, Jr., Richard G. Passler, Barrett R. Stephens, Breazeale, Sachse & Wilson, LLP, New Orleans, LA, and Peter *614 J. Butler, Peter J. Butler, L.L.C., Gretna, LA, for SDT Waste & Debris, L.L.C.

(Court composed of Judge CHARLES R. JONES, Judge DENNIS R. BAGNERIS, SR., and Judge MICHAEL E. KIRBY).

CHARLES R. JONES, Judge.

The appellant, the Ramelli Group, L.L.C. (Ramelli), appeals an adverse judgment by the district court sustaining the Appellee's, SDT Waste and Debris Service, L.L.C.'s (SDT), Peremptory Exception of Prescription, or Alternatively, Motion for Summary Judgment. We Affirm.

Pursuant to the Public Bid Law, the City of New Orleans, (the City) advertised for bids for Proposal No. 3025-00156, a sanitation contract, on or about November 3, 2006. The invitation for bids specifically required that the bidding party's Louisiana Contractor's license number be provided on Exhibit A-3 of the Sanitation Services Bid Form.

On November 17, 2006, both Ramelli and SDT submitted bids for Proposal No. 3025-00156. In compliance with the Louisiana Bid Law, Ramelli included its Louisiana Contractor's License Number (# 43664) on its bid. While SDT did not submit a Louisiana Contractor's License Number on its original bid, it subsequently filed an addendum to its bid which did provide a Louisiana Contractor's License number.

On November 27, 2006, Ramelli hand-delivered a protest letter to the City's Department of Sanitation Director, Veronica T. White, alleging substantive defects and omissions in SDT's bid that were in violation of the Public Bid Law.

Ms. White responded to Ramelli's letter on November 30, 2006, and indicated that the City "does not credit the Ramelli Group claim."

Subsequently, the City accepted SDT's bids and awarded the contract for Proposal No. 3025-00156 to SDT on or about December 18, 2006.

On August 17, 2007, Ramelli filed a Petition for Declaratory Judgment and Writ of Mandamus seeking to compel the City to reject SDT's bid as being non-responsive in failing to comply with the bid requirements and specifications for Proposal No. 3025-00156. The petition also alleged that SDT's bid did not comply with the Louisiana Public Bid Law, La. R.S. 38:2211, et seq., and that the City should award and issue Proposal No. 3025-00156 to Ramelli as the lowest responsive bidder. In the alternative, Ramelli also sought to have the district court declare the current contract between SDT and the City null and void, and direct that Proposal No XXXX-XXXXX be opened to new bids.

About one month later on September 21, 2007, SDT filed a Motion for Leave to File and a Petition of Intervention. After filing a First Amended and Supplemental Petition, SDT filed exceptions of improper cumulation of action and no cause of action. In addition, on December 17, 2007, SDT filed its Exception of Prescription, or Alternatively, Motion for Summary Judgment.

On January 15, 2008, the district court signed a judgment denying SDT's exceptions of improper cumulation of action and no cause of action. Three days later, on January 18, 2008, in open court, the district court granted SDT's Exception of Prescription, or Alternatively, Motion for Summary Judgment, and signed the judgment on January 28, 2008.

Aggrieved by the district court's judgment, which granted SDT's Exception of Prescription, or Alternatively, Motion for Summary Judgment, Ramelli now appeals. In its sole assignment of error, Ramelli *615 asserts that the district court erred in granting SDT's Exception of Prescription, or Alternatively, Motion for Summary Judgment.

DISCUSSION

In Brumfield v. McElwee, XXXX-XXXX (La.App. 4 Cir. 1/16/08), 976 So.2d 234, this court reiterated the standard of review for a peremptory exception of prescription as follows:

In reviewing a peremptory exception of prescription, an appellate court should not disturb the findings of the trial court unless it is clearly wrong. Davis v. Hibernia National Bank, 98-1164 (La. App. 4 Cir. 2/24/99), 732 So.2d 61. In the absence of manifest error, the trial court should not be reversed, since the issue to be decided by the appellate court is not whether the trial court was right or wrong, but whether the fact finder's conclusion was reasonable. Turnbull v. Thensted, 99-0025, p. 5 (La. App. 4 Cir. 3/1/00), 757 So.2d 145, 149.... "[I]n the absence of evidence, the objection to prescription must be decided upon the facts alleged in the petition and the allegations thereof are accepted as true." Waldrop v. Hurd, 39,855, p. 5 (La.App. 2 Cir. 6/29/05), 907 So.2d 890; see also, La. C.C.P. art. 931.
* * *
"Generally, prescription statutes are strictly construed against prescription and in favor of the claim sought to be extinguished by it." Bailey v. Khoury, 04-0620, 04-0647, 04-0684, p. 9 (La.1/20/05), 891 So.2d 1268, 1275. When addressing an exception of prescription, the burden of proof lies with the party asserting prescription. However, in the event the plaintiffs claim is barred on the face of the pleadings, the burden shifts to the plaintiff to show the action has not prescribed. Eastin v. Entergy Corp., 03-1030, p. 5 (La.2/6/04), 865 So.2d 49, 54.

Id., XXXX-XXXX, p. 3-4, 976 So.2d at 238.

Ramelli asserts that the district court erred.

Louisiana Revised Statute 38:2220, titled, Purchase or contract contrary to provisions of this Part void, provides:

A. Any purchase of materials or supplies, or any contract entered into for the construction of public works, contrary to the provisions of this Part shall be null and void.
B. The district attorney in whose district a violation of this Part occurs, the attorney general, or any interested party may bring suit in the district court through summary proceeding to enjoin the award of a contract or to seek other appropriate injunctive relief to prevent the award of a contract which would be in violation of this Part, or through ordinary proceeding to seek appropriate remedy to nullify a contract entered into in violation of this Part. (emphasis ours)
C. Where a judgment of nullity is rendered in any action brought by a district attorney or by the attorney general pursuant to Subsection B of this Section the district court may award a civil penalty not in excess of fifty thousand dollars against each offending member of the governing authority of the public entity who authorized the violation.

Hence, as specifically stated in La. R.S. 38:2220, to challenge the award of a state contract to a competing bidder, the aggrieved bidder must seek to nullify the state-awarded contract via ordinary proceeding. Ramelli asserts that it filed an ordinary proceeding to accomplish the objective *616 of having the contract award nullified.

Ramelli argues that SDT's exception of prescription was improper since there is no prescriptive period provided for in La. R.S. 38:2220.

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997 So. 2d 612, 2008 La.App. 4 Cir. 0354, 2008 La. App. LEXIS 1369, 2008 WL 4724081, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ramelli-group-v-city-of-new-orleans-lactapp-2008.