A.M.E. Disaster Recovery Services, Inc. v. City of New Orleans
72 So. 3d 454
La. Ct. App.2011Background
- City of New Orleans solicited bids for the Interim Nuisance Abatement Program (Project) around Oct 2009; A.M.E. submitted a bid and was initially deemed successful for districts B and E.
- On Aug 4, 2010, City notified A.M.E. it was no longer deemed a responsible bidder and withdrew its prior determination.
- A hearing to adjudicate A.M.E.'s status was set for Aug 13, 2010; A.M.E. did not attend and instead sought TRO, preliminary and permanent injunction, and writ of mandamus.
- Trial court granted a temporary restraining order but denied injunctive relief and writ of mandamus; City opposed, arguing actions premature and lacking cause of action.
- Appellate review proceeded; court agreed LPBL did not apply and that A.M.E. failed to exhaust administrative remedies, leading to affirmance of trial court's denial.
- Key issue: whether the LPBL applied, whether the hearing process was adequate, and whether mandamus could compel execution of a contract.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does LPBL apply to the Project? | AME contends LPBL applies to secure contract. | City argues the Project is a service contract not within LPBL. | LPBL not applicable; contract not public works. |
| Was AME's injunctive relief premature or proper given the hearing process? | AME argues immediate relief warranted despite hearing. | City asserts due process via administrative hearing was required and AME declined to participate. | Discretionary hearing process conducted; no irreparable injury shown; no injunctive relief. |
| Is mandamus appropriate to compel contract execution? | AME seeks mandamus to force award under LPBL. | City retains discretion in bidder responsibility; mandamus inappropriate where discretion exists. | Writ of mandamus not warranted; discretion of city upheld. |
Key Cases Cited
- J.W. Rombach v. Parish of Jefferson, 670 So.2d 1305 (La.App. 5 Cir. 1996) (courts defer to agency's fair, good faith bid-discretion)
- Limousine Livery, Ltd. v. A Airport Limousine Serv., L.L.C., 980 So.2d 780 (La.App. 4 Cir. 2008) (abuse of discretion standard for injunctions)
- H Hamp's Const., L.L.C. v. Housing Authority of New Orleans, 52 So.3d 970 (La.App. 4 Cir. 2010) (mandamus limited to ministerial duties)
- Lemoine/Brasfield & Gorrie Joint Venture, LLC v. Orleans Parish Criminal Sheriff's Office, 63 So.3d 1068 (La.App. 4 Cir. 2011) (courts defer to public entity's bidder-responsibility determinations)