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FOR IMMEDIATE NEWS RELEASE NEWS RELEASE # 9 FROM: CLERK OF SUPREME COURT OF LOUISIANA

The Opinions handed down on the 22nd day of February, 2006 , are as follows:

BY VICTORY, J. :

2005-C -0131

LOUISIANA ASSOCIATED GENERAL CONTRACTORS, INC. v. LOUISIANA DEPARTMENT OF AGRICULTURE AND FORESTRY, LOUISIANA AGRICULTURAL FINANCE AUTHORITY, AND BOB ODOM, COMMISSIONER (Parish of E. Baton Rouge) For the reasons stated herein, the judgments of the lower courts are affirmed. AFFIRMED. JOHNSON, J., concurs.

02/22/2006

SUPREME COURT OF LOUISIANA
No. 2005-C-0131 LOUISIANA ASSOCIATED GENERAL CONTRACTORS, INC., VERSUS LOUISIANA DEPARTMENT OF AGRICULTURE AND FORESTRY, LOUISIANA AGRICULTURAL FINANCE AUTHORITY, AND BOB ODOM, COMMISSIONER ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, FIRST CIRCUIT, PARISH OF EAST BATON ROUGE VICTORY, J. We granted this writ application to determine whether the Louisiana Agricultural Finance Authority ("LAFA") is exempt from the requirements of La R.S. 38:2211, et seq. (the "Public Bid Law"), and if so, whether by undertaking the public works at issue, LAFA is unlawfully undertaking works on behalf of the Louisiana Department of Agriculture and Forestry (the "Department") and Bob Odom (the "Commissioner"), using LAFA's exemption from the Public Bid Law. After reviewing the record and the applicable law, we affirm the judgments of the lower courts and hold that LAFA is expressly exempt from the requirements of the Public Bid Law and that the public works projects undertaken by LAFA fit within LAFA's stated statutory purpose. FACTS AND PROCEDURAL HISTORY On November 22, 1999, Louisiana Associated General Contractors, Inc. ("LAGC"), filed a petition for declaratory judgment and permanent injunction, alleging that the defendants were required to comply with the Public Bid Law and that certain construction projects were undertaken by defendants in violation of that

law.1 The defendants filed a reconventional demand for declaratory judgment that LAFA as owner of property is authorized to carry out public works on its property, to do so utilizing public employees, equipment and materials, and to do so employing a bidding procedure different from that contained in the Public Bid Law, and that no further conduct is required of LAFA or the Department beyond that presently employed to exercise LAFA's legislative authority; or if any further conduct is required of LAFA or the Department to lawfully exercise its legislative authority, a declaration of what that conduct is. The parties submitted the matter on stipulated

1

Specifically, LAGC seeks that declaratory judgment be rendered decreeing:

A. That Bob Odom, the Louisiana Department of Agriculture and Forestry and the Louisiana Agricultural Finance Authority are each public entities and each is bound by and required to comply with the Public Bid Law; B. That defendants are required to submit any and all public works projects which involve labor, equipment, materials and overhead in excess of $100,000 to public competitive bidding under the Public Bid Law and to award the contract for such public works project as specified by the Public Bid Law; C. That the construction projects of Department, LAFA and/or Odom described in the above and foregoing petition and referred to as the Monroe, Hammond and Laccasine projects are such as to be mandated for award under public competitive bidding as specified by the Public Bid law and that all actions of Department, LAFA and Odom in such construction, including all contracts or obligations resulting from such transactions, are null and void, ab initio, and D. That the purchase of materials, supplies and contracts entered into or transactions or obligations incurred for construction of public works by defendants, which are herein declared contrary to the provisions fo the Public Bid Law, are herewith declared null and void, ab initio and all contracts for labor, materials, equipment, supervision or supplies in connection with construction projects at Monroe, Hammond and Laccasine be in the same and are hereby nullified. LAGC seeks a permanent injunction as follows: That a permanent injunction be issued herein restraining and enjoining Department, LAFA and Odom, individually or in concert, from undertaking the construction of public works (as the same is defined by the Public Bid Law) for defendants, or any one of them, or for anyone else, using the employees of any of the defendants or equipment, materials or supplies of any of the defendants wherein such public works involve in excess of $100,000 in labor, materials, equipment and including overhead and said defendants are further enjoined from performing such public work in any means or fashion except by and under the requirements of the Public Bid Law which requires public competitive bidding and award of the contract to the lowest responsible bidder who had bid in accordance with the plans, specifications and contract documents as advertised. 2

facts and exhibits, which are summarized in the following paragraphs.

LAGC is a state-wide association of construction contractors which exists, inter alia, for the purposes of fostering, promoting, and protecting the common interests of its member contractors and competitive bidding under the Public Bid Law. The Commissioner exercises all functions of the state relating to the promotion, protection, and advancement of agriculture. La. Const. art. 4,

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