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Pierce Foundations, Inc. v. JaRoy Construction, Inc.

Court of Appeal of Louisiana, Fifth Circuit

March 25, 2015

PIERCE FOUNDATIONS, INC.
v.
JAROY CONSTRUCTION, INC

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA. NO. 675-829, DIVISION " G" . HONORABLE ROBERT A. PITRE, JR., JUDGE PRESIDING.

TIMOTHY G. SCHAFER, New Orleans, Louisiana, COUNSEL FOR APPELLEE, PIERCE FOUNDATIONS, INC.

LLOYD N. SHIELDS, ELIZABETH L. GORDON, ASHLEY B. ROBINSON, New Orleans, Louisiana, COUNSEL FOR APPELLANT, OHIO CASUALTY INS. CO.

Panel composed of Judges Susan M. Chehardy, Marc E. Johnson, and Stephen J. Windhorst.

OPINION

Page 581

[14-669 La.App. 5 Cir. 2] SUSAN M. CHEHARDY, J.

This appeal stems from a suit by the subcontractor, Pierce Foundations, Inc. (" Pierce" ), against the general contractor,

Page 582

JaRoy Construction, Inc. (" JaRoy" ), and its statutory bond surety, Ohio Casualty Insurance Co. (" Ohio Casualty" ) for monies owed under the subcontract. Appellant/second appellee, Ohio Casualty, appeals from a judgment of liability to appellee/second appellant, Pierce, for monies under the subcontract. Pierce appeals seeking modification of the date on which interest began to accrue on the judgment. For the reasons that follow, we reverse the judgment of the trial court and render judgment in favor of Ohio Casualty.

FACTS AND PROCEDURAL HISTORY

In the spring of 2008, Jefferson Parish contracted with JaRoy to construct a public works project, the gymnasium at Terrytown Playground in Terrytown, Louisiana, for the amount of $4,635,307.00. JaRoy furnished to Jefferson Parish the performance and payment bonds required by La. R.S. 38:2241(B). Ohio Casualty was the surety on the bonds.

On June 3, 2008, JaRoy entered into a written subcontract with Pierce to provide and install pilings for the construction of the gymnasium. This contract [14-669 La.App. 5 Cir. 3] specifically provided that Pierce would " furnish all labor, materials, installation and equipment per plans, specifications and addendums for all piles and driving of piles." The contract called for Pierce to drive 615 foundation piles at a cost of $359,987.00 and 6 test piles at a cost of $11,500.00, for a total cost of $371,487.00.

Pierce drove the test piles on July 30, 2008 and commenced driving the foundation piles on or about August 28, 2008. On November 3, 2008, Pierce completed driving all 621 pilings as called for in the contract.

Pierce remained unpaid, and on July 23, 2009, filed suit against JaRoy seeking to recover $116,716.96, plus interest, attorney fees, and costs. On July 22, 2010, Pierce amended its petition to add Ohio Casualty as a defendant, alleging that, as the surety of JaRoy under a construction bond, it guaranteed the performance of JaRoy under the contract and therefore was jointly and severally liable.

On December 17, 2010, JaRoy filed a petition for bankruptcy protection in the United States Bankruptcy Court for the Eastern District of Louisiana. Following total completion of the project, Jefferson Parish filed a notice of acceptance ...


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