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Jeff Mercer, L.L.C. v. State, Department of Transportation & Development

Citation: 174 So. 3d 1180Docket: No. 2014 CA 1752

Court: Louisiana Court of Appeal; June 5, 2015; Louisiana; State Appellate Court

Narrative Opinion Summary

This case involves two consolidated lawsuits concerning the applicability of La. R.S. 9:2780.1 to public works contracts with the Department of Transportation and Development (DOTD) in Louisiana. The primary legal issue is whether the statute, which prohibits certain insurance requirements, applies to DOTD contracts. The Mercer lawsuit initiated in 2012 challenged DOTD's requirement for contractors to procure Owners and Contractors Protective (OCP) liability insurance, arguing it violated La. R.S. 9:2780.1. The district court dismissed the Mercer case, and the Louisiana Supreme Court denied review. Subsequently, the Alpha lawsuit was filed, mirroring the Mercer claims, and the cases were consolidated. The district court sustained DOTD's exceptions of no right and no cause of action, dismissing the Alpha lawsuit with prejudice, citing the law of the case doctrine and the specific provisions of the DOTD Public Works Act, which governs DOTD contracts. The appeals of both lawsuits were consolidated, but only the Alpha contractors pursued their appeal, which the court ultimately dismissed. The court upheld the previous rulings, affirming the inapplicability of La. R.S. 9:2780.1 to DOTD contracts, and denied the Alpha contractors' request to amend their petition, concluding that no amendment would remedy the lack of a viable cause of action.

Legal Issues Addressed

Amendment of Petition

Application: The court denies the opportunity to amend the petition, as the grounds for objections are deemed non-curable.

Reasoning: The district court deemed the grounds for objections non-curable by amendment.

Applicability of La. R.S. 9:2780.1 to DOTD Contracts

Application: The court finds that La. R.S. 9:2780.1 does not apply to public works contracts with the Department of Transportation and Development (DOTD).

Reasoning: The court reaffirms its prior ruling in Mercer, L.L.C. v. State of Louisiana, stating that La. R.S. 9:2780.1 does not apply to DOTD contracts.

Law of the Case Doctrine

Application: The court applies the law of the case doctrine to decline reconsideration of issues fully litigated in prior proceedings.

Reasoning: The court declines to revisit this argument, citing the law of the case doctrine, which prevents reconsideration of fully litigated issues.

Peremptory Exception of No Cause of Action

Application: The court examines whether the petition states a claim upon which relief can be granted, concluding that the Alpha contractors do not present a viable cause of action.

Reasoning: The exception of no cause of action assesses whether the law provides a remedy based on the petition's allegations.

Peremptory Exception of No Right of Action

Application: The court assesses whether the plaintiffs have a legitimate interest in the action, finding that the contractors lack the legal capacity to pursue their claims against DOTD.

Reasoning: The legal standard for a peremptory exception of no right of action assesses whether the plaintiffs have a legitimate interest in the action.