State MacHinery v. Iberville Council

952 So. 2d 77, 2006 WL 3804686
CourtLouisiana Court of Appeal
DecidedDecember 28, 2006
Docket2005 CA 2240
StatusPublished
Cited by15 cases

This text of 952 So. 2d 77 (State MacHinery v. Iberville Council) 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 MacHinery v. Iberville Council, 952 So. 2d 77, 2006 WL 3804686 (La. Ct. App. 2006).

Opinion

952 So.2d 77 (2006)

STATE MACHINERY & EQUIPMENT SALES, INC.
v.
IBERVILLE PARISH COUNCIL.

No. 2005 CA 2240.

Court of Appeal of Louisiana, First Circuit.

December 28, 2006.

*79 Murphy J. Foster, III, Steven B. Loeb, John T. Andrishok, Yvonne Reed Olinde, Breazeale, Sachse & Wilson, L.L.P., Baton Rouge, for Plaintiff-Appellant State Machinery & Equipment Sales, Inc.

James P. Doré, Amy D. Berret, R. Benn Vincent, Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, L.L.P., Baton Rouge, for Defendant-Appellee Iberville Parish Council.

Before: PARRO, GUIDRY, and McCLENDON, JJ.

PARRO, J.

State Machinery & Equipment Sales, Inc. (State Machinery) appeals a judgment dismissing its Public Bid Law claims against the Iberville Parish Council (Iberville). For the following reasons, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

During February and March 2005, Iberville published advertisements soliciting bids for its proposed purchase of an excavator and wheel loader. Because the estimated cost of each piece of equipment exceeded $20,000, the bids were subject to the Louisiana Public Bid Law.[1] The bid opening date was specified as March 8, 2005; complete bid specifications were available at the Iberville purchasing department *80 in Plaquemine, Louisiana. State Machinery's business is construction equipment rentals and sales. It reviewed the bid specifications and submitted a timely bid on the two pieces of equipment. When the bids were opened, State Machinery was the lowest bidder on both items.[2]

However, on March 9, 2005, Iberville notified State Machinery in writing that both of its bids were being rejected. One of the specifications for both pieces of equipment was that the machine and engine be provided by the same manufacturer. Neither of the bids submitted by State Machinery met this specification. In addition, Iberville advised that the warranty for the excavator was not acceptable, and the wheel loader warranty was also insufficient, as there was no engine warranty attached to the bid. On March 15, 2005, State Machinery sent Iberville a formal protest of the disqualification of its bids, requesting a hearing on the matter. A meeting was held between the parties, at which some of the alleged deficiencies in the State Machinery bid were discussed. Iberville did not change its decision as a result of this meeting, and awarded the contract for both items to the next lowest responsive bidder, Scott Construction Equipment (Scott), whose bid using Volvo equipment met 100% of the bid specifications on both pieces of equipment.

State Machinery filed suit against Iberville on March 24, 2005, requesting preliminary, permanent, and mandatory injunctions, along with a writ of mandamus and, in the alternative, damages. The petition alleged that Iberville's disqualification of State Machinery's bids was in contravention of Louisiana's Public Bid Law. State Machinery alleged that the equipment described on its bid was the functional equivalent of the equipment in the bid specifications and, because it had submitted the lowest responsible and responsive bid, Louisiana law required that the contract be awarded to it. State Machinery also filed a motion for a preliminary injunction.

The parties stipulated that the May 5, 2005 hearing on the motion for a preliminary injunction would also serve as the trial of the request for a permanent injunction. Following that hearing, at which both sides called witnesses and submitted documentary evidence, the trial court ruled in favor of Iberville, finding it was not arbitrary and capricious and Identifying three objective reasons for Iberville's rejection of State Machinery's bids, namely: (1) the failure to include any warranty for the wheel loader engine; (2) the failure to comply with the "wet sleeve" engine design requirement in the excavator specifications; and (3) the failure to satisfy the requirement on both pieces of equipment that the engines and machines be manufactured by the same company. A judgment dismissing State Machinery's claims was signed on May 25, 2005, and this appeal followed.

APPLICABLE LAW

Injunction

An injunction shall be issued in cases where irreparable injury, loss, or damage may otherwise result to the applicant, or in other cases specifically provided *81 by law. LSA-C.C.P. art. 3601(A). Generally, a party seeking the issuance of a preliminary injunction must show that he will suffer irreparable injury, loss, or damage if the injunction does not issue and must show entitlement to the relief sought; this must be done by a prima facie showing that the party will prevail on the merits of the case. Sorrento Companies, Inc. v. Honeywell Int'l, Inc., 04-1884 (La.App. 1st Cir.9/23/05), 916 So.2d 1156, 1163, writ denied, 05-2326 (La.3/17/06), 925 So.2d 541. A showing of irreparable harm is not required in cases where the conduct sought to be restrained is unlawful, as when the conduct sought to be enjoined constitutes a direct violation of a prohibitory law. See Jurisich v. Jenkins, 99-0076 (La.10/19/99), 749 So.2d 597, 599. The issuance of a preliminary injunction addresses itself to the sound discretion of the trial court and will not be disturbed on review unless a clear abuse of discretion has been shown. Concerned Citizens for Proper Planning, LLC v. Parish of Tangipahoa, 04-0270 (La.App. 1st Cir.3/24/05), 906 So.2d 660, 663.

A petitioner seeking a preliminary injunction is required to offer less proof than is necessary in an ordinary proceeding for a permanent injunction. See Derbes v. City of New Orleans, 05-1249 (La.App. 4th Cir.8/30/06), 941 So.2d 45, 53-54. The issuance of a permanent injunction takes place only after a trial on the merits, in which the burden of proof must be founded on a preponderance of the evidence. Hughes v. Muckelroy, 97-0618 (La.App. 1st Cir.9/23/97), 700 So.2d 995, 998. The manifest error standard is the appropriate standard of review for the issuance of a permanent injunction. Parish of East Feliciana ex rel. East Feliciana Parish Police Jury v. Guidry, 04-1197 (La.App. 1st Cir.8/10/05), 923 So.2d 45, 53, writ denied, 05-2288 (La.3/10/06), 925 So.2d 515.

It is unclear which burden of proof and which standard of review are applicable when the parties have agreed, as in this case, that the hearing on the motion for a preliminary injunction will also constitute the trial on the merits for a permanent injunction. In the matter before us, the parties agreed before the hearing that it would constitute the trial on the merits for a permanent injunction, and the trial court conducted the hearing accordingly, requiring the plaintiff to satisfy its burden of proof by a preponderance of the evidence. However, in the only case specifically discussing a consolidation of such hearings, the supreme court apparently approved the treatment of the proceeding as if it were a hearing on the motion for a preliminary injunction. In Mary Moe, L.L.C. v. Louisiana Bd. of Ethics, 03-2220 (La.4/14/04), 875 So.2d 22, 29, the court stated the following:

In this case, the parties agreed to a consolidation of the trial on the merits and the rule of the preliminary injunction. Under these circumstances, the permanent injunction is not a result of a trial on the merits, but is based on a prima facie showing by the plaintiff that he is entitled to a preliminary injunction.

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Bluebook (online)
952 So. 2d 77, 2006 WL 3804686, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-machinery-v-iberville-council-lactapp-2006.