State MacH. Sales v. Gravity Drainage 5

742 So. 2d 26, 1999 WL 486617
CourtLouisiana Court of Appeal
DecidedJune 25, 1999
Docket98 CA 1207
StatusPublished
Cited by7 cases

This text of 742 So. 2d 26 (State MacH. Sales v. Gravity Drainage 5) 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
State MacH. Sales v. Gravity Drainage 5, 742 So. 2d 26, 1999 WL 486617 (La. Ct. App. 1999).

Opinion

742 So.2d 26 (1999)

STATE MACHINERY & EQUIPMENT SALES, INC.
v.
LIVINGSTON PARISH GRAVITY DRAINAGE # 5.

No. 98 CA 1207.

Court of Appeal of Louisiana, First Circuit.

June 25, 1999.

Steve B. Loeb, Baton Rouge, Frank W. Lagarde, Jr., Metairie, for Plaintiff-Appellant State Machinery & Equipment Sales, Inc.

Rodney N. Erdey, Livingston, for Defendant-Appellee Livingston Parish Gravity Drainage # 5.

Before: FITZSIMMONS, GUIDRY, and PETTIGREW, JJ.

PETTIGREW, J.

This action arose when defendant, a political subdivision, after inviting and receiving *27 bids for the lease-purchase of a hydraulic-crawler excavator, rejected the low bid submitted by plaintiff, a heavy equipment dealer, and awarded the contract based upon a higher bid submitted by plaintiff's competitor. Plaintiff filed suit against defendant challenging the rejection of its bid, and seeking injunctive relief. In the alternative, plaintiff sought damages and attorney's fees. Following a hearing, the district court dismissed plaintiff's suit. Plaintiff now appeals. We reverse and remand.

FACTS

The record reflects that in the latter part of 1995, defendant, Livingston Parish Gravity Drainage District # 5 ("drainage district"), determined that it would be necessary to purchase a hydraulic excavator to fulfill the drainage needs of the district. In furtherance of this proposed acquisition, drainage district foreman, Gerald Green ("Mr. Green"), contacted various equipment dealers to request information and/or brochures regarding their respective products. It should be noted that State Machinery was not one of the firms contacted by Mr. Green.

According to the testimony of Mr. Green, representatives from several firms including, Norwel Equipment Company ("Norwel") and Crawler Equipment, also sent representatives out to drainage district job sites. Thereafter, Mr. Green, along with then drainage district chairman, Donald Townsend ("Mr. Townsend"), and then drainage district vice-chairman, Lester Hall, drafted a set of specifications for an excavator that would suit the needs of the drainage district. The bid request further set forth certain bid specifications and requirements for the acquisition of the excavator under a 60-month governmental lease-purchase plan.

Shortly after publication of its bid request, a possible notice error was discovered, and the drainage district, on advice of its legal counsel, rejected the bids received, and re-advertised for bids. In response to this second bid request, plaintiff, State Machinery and Equipment Sales, Inc. (State Machinery), submitted a bid on February 19, 1996, covering a Hyundai 200 LCM (Long Crawler Modulator) Hydraulic Excavator. The State Machinery bid set forth a total sales price of $106,907.00, payable under a 60-month lease-purchase at $2,120.12 per month, with extended warranty, or $2,064.37, without the warranty.

At a March 2, 1996 public meeting, the drainage district opened the three bids received and empowered Mr. Townsend to review the bid proposals for purposes of determining the lowest bid in compliance with the bid specifications. After reviewing all three bids, Mr. Townsend ultimately concluded that the bid submitted by Norwel Equipment Company ("Norwel Equipment") substantially complied with the bid specifications and was the lowest responsive bid. The bid submitted by Norwel Equipment set forth a price of $124,732.00 for a John Deere 690E LC excavator. In a certified letter dated March 12, 1996, the drainage district, through Mr. Townsend, advised State Machinery that its bid had been rejected due to its failure to comply with bid specifications.

Upon receipt of the certified rejection letter, representatives of State Machinery requested, through numerous telephone conversations with Mr. Townsend and the drainage district's legal counsel, an opportunity to clarify the specifications contained within their bid proposal. Representatives of State Machinery further alleged that the bid specifications prepared by the drainage district were illegally "closed" in that only one particular manufacturer could satisfactorily comply with the specifications as set forth in the bid request. The drainage district, in a special meeting held on April 16, 1996, and in a regular meeting held on April 22, 1996, adopted a resolution approving the lease-purchase of the John Deere excavator from Norwel Equipment upon written approval of the bonding *28 commission. A contract to this effect was later signed on or about May 2, 1996.

Thereafter, on May 13, 1996, State Machinery filed a Petition for Preliminary Injunction and Permanent Injunction Relief against the drainage district and its chairman, Mr. Townsend. The petition filed by State Machinery alleged that the drainage district had been arbitrary and capricious in rejecting its bid. Additionally, State Machinery asserted that the language used by the drainage district in its bid request had been narrowly and specifically drafted so as to exclude true competition. In the alternative, State Machinery prayed for an award of damages. The drainage district later answered the petition and filed peremptory exceptions raising objections of no cause of action and no right of action.

ACTION OF THE DISTRICT COURT

On December 13, 1996, the district court overruled the peremptory exceptions filed by the drainage district. The drainage district, immediately prior to the hearing on State Machinery's rule for injunctive relief on December 23, 1996, filed a motion for supervisory writs as to the district court's denial of its exceptions. The district court, while declining to stay the evidentiary portion of this matter, nevertheless agreed to postpone its ruling pending this court's disposition of the writ. Subsequently, on May 30, 1997, this court declined to exercise its supervisory jurisdiction asserting that the criteria set forth in Herlitz Construction Co., Inc. v. Hotel Investors of New Iberia, Inc., 396 So.2d 878 (La.1981), had not been met.[1]

The district court, in a judgment signed on November 26, 1997, subsequently rejected the demand put forth by State Machinery and dismissed its suit. In written reasons for judgment issued October 29, 1997[2], the district court cited provisions of both the Public Bid Law (La. R.S. 38:2211 et seq.) and the Louisiana Procurement Code (La. R.S. 39:1554 et seq.). Relying upon La. R.S. 39:1671(A) of the Louisiana Procurement Code, the district court held that inasmuch as State Machinery had failed to file its protest prior to the opening of bids, it had waived any objections it may have been able to assert regarding the closed nature of the bid specifications. The district court further determined that the drainage district was not unreasonable in its rejection of State Machinery's bid. From this judgment, State Machinery now appeals.

ASSIGNMENTS OF ERROR

On appeal, State Machinery asserts that the district court erred in the following respects:

1. In holding that the State Machinery was untimely in its assertion that the drainage district's request for bid proposals constituted an illegal "closed specification;"
2. In affirming the drainage district's rejection of State Machinery's low bid;
3. In failing to award injunctive relief and/or damages.

ANALYSIS AND DISCUSSION

The basic statutory law governing the disposition of this case is contained within La. R.S. 38:2211 et seq., more commonly referred to as the Public Bid Law. Pursuant to La. R.S.

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Cite This Page — Counsel Stack

Bluebook (online)
742 So. 2d 26, 1999 WL 486617, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-mach-sales-v-gravity-drainage-5-lactapp-1999.