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Project Is A 'Public Work' -- And Protected By State Law -- Though The City Didn't Spend A Dime

Monday, November 01, 2010 04:38 am

 

Payment Bond

Paul Davis National v. City of New Orleans, 2010 U.S. App. Lexis 17023 (5th Cir. Aug. 11, 2010)

Nothing in life is free. Thanks to a deal with a media company that wanted to build a set for a television series, a City got a community recreation center at no cost. Or so it thought, until an unpaid contractor came knocking.

After Paul Davis National (PDN) completed site preparation work for a $3.2 million recreation center in New Orleans' Comisky Park, it submitted its final invoice for approximately $700,000. Project owner, DNA Creative Media DNA Media Productions LLC (DNA Media), paid only $35,000. PDN brought action against the City of New Orleans for failing to require that DNA Media post a payment bond, in compliance with Louisiana's Public Works Act. (Such bonds are designed to guard against claims for nonpayment from those supplying labor and material to a construction project.)

DNA Media and the City had an agreement that DNA Media woul [...]

 
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