Scott v. Red River Waterway Commission

926 So. 2d 830, 2006 WL 932060
CourtLouisiana Court of Appeal
DecidedApril 12, 2006
Docket41,009-CA
StatusPublished
Cited by5 cases

This text of 926 So. 2d 830 (Scott v. Red River Waterway Commission) 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
Scott v. Red River Waterway Commission, 926 So. 2d 830, 2006 WL 932060 (La. Ct. App. 2006).

Opinion

926 So.2d 830 (2006)

Eddie T. SCOTT and Karen P. Scott, Plaintiff-Appellee,
v.
RED RIVER WATERWAY COMMISSION and The City of Bossier City, Defendants-Appellants.

No. 41,009-CA.

Court of Appeal of Louisiana, Second Circuit.

April 12, 2006.

*832 Lemle & Kelleher, L.L.P. by Robert W. Kyle, Leland G. Horton, Shreveport, James D. Hall, Bossier City, for The City of Bossier City.

Cook, Yancey, King & Galloway by Kenneth Mascagni, Shreveport, for The City of Bossier City and Nationwide Mutual Insurance Co.

Montgomery, Barnett, Brown, Read, Hammond & Mintz, L.L.P. by Gary J. Rouse, Ron Riggle, Jason A. Cavignac, J. Scott Loeb, New Orleans, for Continental Casualty Company.

Sam N. Gregorio, Shreveport, A.J. Gregory, Jr., for Eddie T. Scott & Karen P. Scott.

Preston and Covan, L.L.P. by Scott P. Yount, Randall C. Mulcahy, New Orleans, for Service Construction & Supply and Colony Insurance Company.

The Smitherman Law Firm, L.L.C. by Donald Lee Brice, Jr., W. James Hill, III, Shreveport, for Demopulos & Ferguson, Inc.

Henry H. LeBas, Barry J. Rozas, Mamou, for Zurich American Insurance Co.

Before BROWN, C.J., and CARAWAY and LOLLEY, JJ.

CARAWAY, J.

The City of Bossier City ("the City") filed a third party demand against the bonding company for a defaulted roadway contractor in a personal injury action filed against the City as the result of a vehicular accident occurring on the roadway. The City contended that in securing the roadway's completion after the default, the bonding company stepped into the shoes of *833 the original contractor and exposed itself to liability for defective conditions of the roadway. The trial court dismissed the bonding company from the suit on the exception of no cause of action. The City has appealed. We affirm.

Facts

On August 24, 2002, Jason David Scott was driving his truck south on the Arthur Ray Teague Parkway ("the Parkway") in Bossier City, Louisiana, when he failed to maneuver a curve in the roadway. Scott lost control of his vehicle and was propelled across the grassy median and two lanes of travel into a road sign owned by the Red River Waterway Commission. He died from the injuries received in the one-vehicle accident. The Parkway was designed and constructed as a City roadway and is maintained by the City. Scott's parents sued the City and the Red River Waterway Commission seeking damages for the wrongful death of their son from defects in both the road sign and the Parkway.[1]

The City filed a third party demand against Continental Casualty Insurance Company ("Continental"), the performance bond company for the original contractor, Plaquemines Contracting Inc. ("Plaquemines"). Plaquemines had defaulted in its work on the initial construction contract for the Parkway. The City alleged that Continental's agreement to complete the project exposed it to potential liability for any defective conditions of the Parkway. On September 22, 1999, Continental entered into a "Completion Agreement" with the City and tendered a joint venture, CW & W Contractors, Inc. and J.A. Long, Inc. ("the Joint Venture"), as the completion contractor.[2] The City agreed to work directly with the Joint Venture which provided its own performance and payment bonds.

Additionally, Continental and the Joint Venture entered into a "Completion Construction Contract," dated December 28, 1999. That contract provided that the Joint Venture, as the "Completion Contractor," "shall be bound in the same manner and to the same extent that the surety [Continental] . . . would be bound to the Owner [the City] had the Completion Contractor been the Former Contractor under the Original Contract, including but not limited to the conditions or determinations by the Owner with respect to all work performed by the Completion Contractor." Although the City was not a signatory party to the agreement, the contract further stated that the "Owner has agreed to treat Completion Contractor just as if Completion contractor were the former contractor and such former contractor had not defaulted." Eventually, upon the conclusion of the Parkway project on May 10, 2000, the City executed a "Certificate of Substantial Completion" which acknowledged that the work on the December 28, 1999 Completion Construction Contract had been substantially performed by the Joint Venture as contracted.

Continental filed peremptory exceptions of no cause of action and peremption on the grounds that it had performed solely in accordance with the bonding agreement it *834 had with Plaquemines for the benefit of the City and not as a contractor. The City contended that by assuming the responsibility for completing the Parkway after Plaquemines' default, Continental took over the role of general contractor and subjected itself to liability to injured third parties for any defective condition in the Parkway independent of any bond claims.

The trial court sustained Continental's exceptions and dismissed it from the suit on the grounds that the contract agreements showed that the Joint Venture, and not Continental, was the general contractor for the completion of the Parkway project. This appeal by the City ensued.

Discussion

A peremptory exception of no cause of action is used by the defendant to test the legal sufficiency of the petition by determining whether the law affords a remedy to the plaintiff on the facts that are alleged in the petition. Mack v. Evans, 35,364 (La.App.2d Cir.12/5/01), 804 So.2d 730, writ denied, 02-0422 (La.4/19/02), 813 So.2d 1088. In determining whether a plaintiff has stated a cause of action, the court looks to the facts set out in the petition, accepting them as true without regard to extrinsic evidence. Id. The purpose of the exception is only to determine if a cause of action is pled and not whether the plaintiff will ultimately prevail at trial. When it can reasonably do so, the court should maintain a petition against a peremptory exception so as to afford the litigant an opportunity to present his evidence. Id. An appellate court reviews a trial court's ruling on an exception of no cause of action de novo because the exception raises a question of law and the lower court's decision is based only on the sufficiency of the petition. City of New Orleans v. Board of Directors of Louisiana State Museum, 98-1170 (La.3/2/99), 739 So.2d 748.

Ordinarily, the meaning and intent of the parties to a written instrument should be determined within the four corners of the document, and its terms cannot be explained or contradicted by extrinsic evidence. Brown v. Drillers, Inc., 93-1019 (La.1/14/94), 630 So.2d 741. When a contract may be construed from the four corners of the instrument, that interpretation is a matter of law for the court to determine. NAB Natural Resources, L.L.C. v. Willamette Industries, Inc., 28,555 (La. App.2d Cir.8/21/96), 679 So.2d 477.

A contracting party may stipulate a benefit for a third person, who is called a third party beneficiary. Once the third party has manifested his intention to avail himself of the benefit, the parties may not dissolve the contract by mutual consent without the beneficiary's agreement. La. C.C. art. 1978. The law does not require express acceptance or consent by the third party beneficiary or a particular form of acceptance or consent. Cooper v. Louisiana Department of Public Works, 03-1074 (La.App. 3d Cir.3/3/04), 870 So.2d 315, writ not considered, 04-1431 (La.9/24/04), 882 So.2d 1146.

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Cite This Page — Counsel Stack

Bluebook (online)
926 So. 2d 830, 2006 WL 932060, Counsel Stack Legal Research, https://law.counselstack.com/opinion/scott-v-red-river-waterway-commission-lactapp-2006.