Wallace C. Drennan, Inc. v. SEWERAGE & WATER

753 So. 2d 861, 98 La.App. 4 Cir. 2423, 1999 La. App. LEXIS 3091, 1999 WL 1013007
CourtLouisiana Court of Appeal
DecidedSeptember 22, 1999
Docket98-CA-2423
StatusPublished
Cited by14 cases

This text of 753 So. 2d 861 (Wallace C. Drennan, Inc. v. SEWERAGE & WATER) 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, 753 So. 2d 861, 98 La.App. 4 Cir. 2423, 1999 La. App. LEXIS 3091, 1999 WL 1013007 (La. Ct. App. 1999).

Opinion

753 So.2d 861 (1999)

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

No. 98-CA-2423.

Court of Appeal of Louisiana, Fourth Circuit.

September 22, 1999.

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

Roy J. Rodney, Jr., Kim M. Boyle, Endya E. Delpit, Rodney, Bordenave, Boykin, Bennette & Boyle, New Orleans, Louisiana, Counsel for Defendant/Appellee.

Sidney H. Cates, IV, Carter & Cates, New Orleans, Louisiana, for Intervenor-Appellee Robinson Electrical.

Court composed of Judge WILLIAM H. BYRNES, III, Judge MOON LANDRIEU, and Judge MICHAEL E. KIRBY.

LANDRIEU, Judge.

Wallace C. Drennan, Inc. appeals from the district court's judgment of June 17, 1998, sustaining the exceptions of no cause of action and no right of action filed by the Sewerage & Water Board (S&WB). The district court dismissed with prejudice Drennan's petition for a preliminary injunction and its application for a writ of mandamus. We now reverse the district court's judgment.

Drennan and four other contractors submitted bids on Contract No. 6216, which was advertised by the S&WB on March 16, 1998. When the bids were opened on April 15, 1998, two bidders, Robinson Electrical Company, Inc. and John J. Hazard Drayage & Construction Company, submitted bids lower than Drennan's bid. Contending in administrative proceedings that neither of the lower bids was in accordance with the contract, plans, and specifications as advertised, Drennan argued to the S&WB that it was the lowest bidder in conformity with the advertised contract, plans, and specifications and that it should therefore be awarded the contract.[1] Drennan *863 asserted that Robinson's bid bond was made out to the City of New Orleans rather than the S&WB as required by the bid specifications. Drennan further alleged that both Robinson and Hazard specified disadvantaged business enterprises (DBEs) that had not been included on the list of certified and approved vendors provided by the S&WB, also as required by the bid specifications. Both of these variances were cited by the S&WB's staff counsel as unresponsive to the bid specifications. Accordingly, Drennan asserted that both Robinson's and Hazard's bids were invalid and should be rejected. The S&WB refused to do so; instead, it permitted Robinson to amend the bid bond to add the S&WB as an additional obligee and allowed Robinson to seek certification of the DBEs after the bid was submitted. The S&WB then awarded the contract to Robinson.

Drennan filed a petition for a preliminary injunction to prevent commencement of the work. It also applied for a writ of mandamus directing the S&WB to reject the bids of Robinson and Hazard and to award the contract to Drennan, or alternatively, to reject all of the bids and to reopen the bid process. Robinson intervened in the action. Drennan argued that the S&WB had no discretion to waive the variances in Robinson's bid and that the S&WB should have rejected the bid as invalid.

The S&WB filed exceptions of no cause of action and no right of action.[2] It alleged that Drennan was not the lowest bidder and, therefore, had no cause of action. It also alleged that Drennan's bid was unresponsive, because Drennan, who had specified zero percent DBE participation in its bid and had submitted the required affidavit explaining its efforts to achieve such participation, had neglected to include documentation in support of the affidavit. The S&WB's staff counsel had opined that Drennan's bid was unresponsive. However, Drennan, in its affidavit submitted with the bid, had stated that such proof was available at the S&WB's request. Drennan argued in response that the bid specifications required only the affidavit and not the supporting documentation to be submitted with the bid. It argued that the S&WB in the past had merely requested the documentation after initially determining compliance with the DBE objectives.

The district court found no cause of action, because Drennan was not the lowest bidder on the contract. The court also reasoned that Drennan's bid, by Drennan's own admission, was considered by the S&WB as unresponsive to the bid specifications, because Drennan had not provided "documentary evidence" supporting its affidavit that it could not meet the DBE goals, a requirement set forth in Section 5-06 of the bid package. Citing La.Rev. Stat. 38:2212 A(1)(a),[3] the court found the S&WB had acted within its authority to reject Drennan's bid on two grounds: (1) the bid was not in compliance with the bid specifications and (2) the bid was not the lowest offer.

As to the exception of no right of action, the district court concluded Drennan did not have standing to enjoin the S&WB from awarding the contract to the intervenor, Robinson, the lowest bidder. After holding that the contracting authority has the discretion to waive insubstantial deviations in the bid submitted by the lowest bidder, the court found Drennan's petition "clearly reflects the fact that Robinson complied with the bid specifications in all respects, with the exception of minor deviations *864 which could be corrected and/or waived by the contracting authority." On this reasoning, the court found the S&WB had acted within its discretion in awarding the project to Robinson. Upon concluding Drennan did not have standing to enjoin the awarding of the contract to Robinson, the court sustained the S&WB's exception of no right of action.

The court further found that amendment of the petition could not "cure the aforementioned deficiencies" and dismissed the action with prejudice.

LAW

The purpose of the peremptory exception of no cause of action is to determine the sufficiency in law of the petition. It questions whether the petition sufficiently alleges grievances for which the law affords a remedy. All well-pleaded allegations of fact must be accepted as true when considering an exception of no cause of action. The exception of no cause of action must be decided upon the face of the petition and any attached documents. Hoskin v. Plaquemines Parish Government, 98-1825, p. 10 (La.App. 4 Cir. 8/4/99), 743 So.2d 736. No evidence may be introduced at any time to support or controvert the objection that the petition fails to state a cause of action. La.Code Civ. Proc. art. 931.

The standard for granting an exception of no cause of action is as follows:

The burden of demonstrating that no cause of action has been stated is upon the mover or exceptor. In deciding the exception of no cause of action, the court must presume all factual allegations of the petition to be true and all reasonable inferences are made in favor of the nonmoving party. In reviewing a trial court's ruling sustaining an exception of no cause of action, the [appellate court] should subject the case to de novo review, because the exception raises a question of law and the lower court's decision is based only on the sufficiency of the petition.
In appraising the sufficiency of the petition, [the reviewing court] follow[s] the accepted rule that a petition should not be dismissed for failure to state a cause of action unless it appears beyond doubt that the plaintiff can prove no set of facts in support of any claim which would entitle him to relief.

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Bluebook (online)
753 So. 2d 861, 98 La.App. 4 Cir. 2423, 1999 La. App. LEXIS 3091, 1999 WL 1013007, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wallace-c-drennan-inc-v-sewerage-water-lactapp-1999.