Wallace C. Drennan, Inc. v. Sewerage & Water Bd.

798 So. 2d 1167, 2001 La. App. LEXIS 2378, 2001 WL 1329225
CourtLouisiana Court of Appeal
DecidedOctober 3, 2001
Docket2000-CA-1146
StatusPublished
Cited by19 cases

This text of 798 So. 2d 1167 (Wallace C. Drennan, Inc. v. Sewerage & Water Bd.) 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
Wallace C. Drennan, Inc. v. Sewerage & Water Bd., 798 So. 2d 1167, 2001 La. App. LEXIS 2378, 2001 WL 1329225 (La. Ct. App. 2001).

Opinion

798 So.2d 1167 (2001)

WALLACE C. DRENNAN, INC.,
v.
SEWERAGE & WATER BOARD OF NEW ORLEANS.

No. 2000-CA-1146.

Court of Appeal of Louisiana, Fourth Circuit.

October 3, 2001.

*1170 John I. Hulse IV, Hulse & Wanek, New Orleans, LA, Counsel for Plaintiff/Appellant.

Roy J. Rodney, Jr., Richard B. Ehret, Rodney, Bordenave, Boykin, Bennette & Boyle, New Orleans, LA, Counsel for Defendant/Appellee.

Court composed of Chief Judge WILLIAM H. BYRNES, III, Judge MIRIAM G. WALTZER, and Judge MICHAEL E. KIRBY.

WILLIAM H. BYRNES, III, Chief Judge.

The plaintiff, Wallace C. Drennan, Inc. ("Drennan") appeals a judgment denying injunctive relief to prevent the award of a contract to another bidder and denying Drennan's writ of mandamus to compel the Sewerage and Water Board of New Orleans ("S & WB") to award the contract to Drennan. We reverse.

On March 16, 1998, the S & WB publicly advertised for bids to perform electrical duct bank work, Contract No. 6216, and on April 15, 1998, bids were opened. Drennan, the third numerically low bidder, contested the award to Robinson Electrical Company, Inc. ("Robinson") and John J. Hazard Drayage & Construction Company ("Hazard") in two letters dated April 17, 1998 and April 21, 1998. The General Counsel and Special Counsel for the S & WB issued two memoranda dated May 5, 1998, to the S & WB.

The first memorandum agreed that Robinson's bid bond was made payable to the "City of New Orleans" in error instead of "The Sewerage and Water Board of New Orleans," and this was in violation of the mandatory requirements of the bid specifications. The memorandum found that violation was not an informality and could not be waived. Robinson's bid was non-responsive.

The second memorandum agreed that the Disadvantaged Business Enterprise ("DBE") specifications required the use of certified DBE's from the approved list, that Robinson did not use certified DBE's, and that the bid was unresponsive. The second memorandum also found that Robinson failed to meet the certified DBE requirement to submit an affidavit describing good faith efforts to meet the DBE goal.

Further, the second memorandum held that Drennan's bid was non-responsive because it did not submit documentary evidence with its bid in addition to the "goodfaith" affidavit.

In May 1998, the S & WB voted to waive the mandatory bid requirements as "informalities", to allow a post-bid amendment of the bid bond and the DBE program forms, and to award the contract to Robinson.

Drennan filed suit, seeking injunctive relief under La. R.S. 38:2220B, to prevent award of the contract in violation of the Public Bid Law, and mandamus to seek to compel the S & WB to award the contract to Drennan as the lowest responsible bidder who bid according to the specifications. Robinson intervened, and the S & WB filed exceptions, as well as a motion for summary judgment. After a hearing on May 29, 1998, the trial court rendered its June 17, 1998 judgment, granting the S & WB's peremptory exceptions of no cause and/or right of action, and dismissing Drennan's petition for preliminary injunction *1171 and mandamus with prejudice. Drennan's first appeal followed.

On September 22, 1999, this Court reversed the judgment of the trial court, finding that Drennan's petition stated a cause of action, alleging a violation of the Public Bid Law by the S & WB; and that Drennan had a right of action as an interested party in the litigation. Drennan v. Sewerage and Water Board, 98-2423 (La. App. 4 Cir. 9/22/99), 753 So.2d 861. This Court found that: "if [Drennan] proved that the other two lower bids should have been rejected, and that [Drennan's] bid was in compliance with the bid specifications, then [Drennan] is the lowest responsible bidder to which the job should have been awarded." Id., 753 So.2d at 866. This case was remanded to the trial court.

After a hearing on December 9, 1999, the trial court rendered its judgment on December 17, 1999, finding that Drennan failed to satisfy its burden of proof. The trial court dismissed Drennan's petition for preliminary injunction and writ of mandamus with prejudice, and Drennan appealed.

In the present appeal, Drennan contends that the Robinson bid contained three violations of the mandatory requirements of the advertised bid specifications. Drennan maintains that the trial court erred in: (1) failing to require the S & WB to perform the ministerial duty of rejecting the Robinson bid pursuant to the Public Bid Law, La. R.S. 38:2212A(1)(b); (2) permitting the S & WB to waive as informalities violations of the mandatory provisions of the Public Bid Law; and (3) failing to award the contract under the Public Law to Drennan as the lowest, responsible bidder.

Standard of Review

The denial or dissolution of a preliminary injunction should not be overturned on appeal absent a clear abuse of the trial court's great discretion. HCNO Services, Inc. v. Secure Computing Systems, Inc., 96-1693 (La.App. 4 Cir. 4/23/97), 693 So.2d 835, writ denied, 700 So.2d 513. The reviewing court should not substitute its judgment for the good faith judgment of an administrative agency's reasonable award of public works contracts. J.W. Rombach v. Parish of Jefferson, 95-829 (La.App. 5 Cir. 2/14/96), 670 So.2d 1305. The appellate court will grant a writ of mandamus only when there is usurpation of judicial power or clear abuse of discretion. Marinechance Shipping, Ltd. v. Sebastian, 143 F.3d 216 (C.A.5 (La.) 1998), certiorari denied 525 U.S. 1055, 119 S.Ct. 620, 142 L.Ed.2d 559 (1998).

The Public Bid Law is intended to advance the interests of the taxpaying citizens and to prevent public officials from awarding contracts on an arbitrary basis. La. R.S. 38:2211 et seq. A public entity can not waive deviations that are substantive in nature when awarding a public contract to the lowest responsible bidder. Boh Bros. Const. Co, L.L.C. v. Dept. of Transp. and Development, 97-0168 (La. App. 1 Cir. 7/14/97), 698 So.2d 675, writ denied, 97-2113 (La.11/21/97), 703 So.2d 1309.

Bid Errors or Omissions

Drennan argues that Robinson's bid bond violated the mandatory substantive requirements and was unenforceable as written. The bid specifications state in pertinent part:

Form of Proposals
(1) All proposals must be made on the Form of Proposal embodied in the special Specifications for each contract and this form must not be detached from the specifications....
*1172 * * *
Proposals
(3) ... Any proposal which does not fully comply with all of the provisions of the "Information for Bidders" and of the specifications will be considered informal and may be rejected. [Emphasis added.]
The bid specifications provide in pertinent part:
1-16 DEPOSIT OR BID BOND
A. The amount of the deposit or bid bond for this contract as required in Paragraph No. 1, in Section "A" of the General Specifications shall be five per cent (5%) of the total lump sum amount of the proposal made payable to the Sewerage and Water Board of New Orleans and subject to forfeiture upon failure to sign contract and execute bond within ten (10) days after official award of the contract. [Emphasis added.]

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Opinion Number
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798 So. 2d 1167, 2001 La. App. LEXIS 2378, 2001 WL 1329225, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-c-drennan-inc-v-sewerage-water-bd-lactapp-2001.