Case Name: SYSTEMS ENGINEERING AND SECURITY, INC. ("SES") v. SCIENCE & ENGINEERING ASSOCIATIONS, INC. ("SEA"), Apogen, Inc., and Robert Savoie
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 2007-06-20
Citations: 962 So. 2d 1089
Docket Number: No. 2006-CA-0974
Parties: SYSTEMS ENGINEERING AND SECURITY, INC. (“SES”) v. SCIENCE & ENGINEERING ASSOCIATIONS, INC. (“SEA”), Apogen, Inc., and Robert Savoie.
Judges: (Court composed of Chief Judge JOAN BERNARD ARMSTRONG, Judge CHARLES R. JONES, Judge DENNIS R. BAGNERIS SR., Judge LEON A. CANNIZZARO, JR., Judge ROLAND L. BELSOME).
Reporter: Southern Reporter, Second Series
Volume: 962
Pages: 1089–1094

Head Matter:
SYSTEMS ENGINEERING AND SECURITY, INC. (“SES”) v. SCIENCE & ENGINEERING ASSOCIATIONS, INC. (“SEA”), Apogen, Inc., and Robert Savoie.
No. 2006-CA-0974.
Court of Appeal of Louisiana, Fourth Circuit.
June 20, 2007.
Michael R. Allweiss, Marynell L. Piglia, Lowe, Stein, Hoffman, Allweiss & Hauver, L.L.P., New Orleans, LA, for Systems Engineering and Security, Inc.
Jeffrey A. Schwartz, Jackson Lewis, L.L.P., Atlanta, GA, for Robert Savoie.
Ronald J. Sholes, Mark R. Beebe, Thomas E. Gottsegen, Lee C. Reid, Louis C. LaCour, Jr., Adams and Reese LLP, New Orleans, LA, for Science & Engineering Associates, Inc. And Apogen Technologies, Inc.
(Court composed of Chief Judge JOAN BERNARD ARMSTRONG, Judge CHARLES R. JONES, Judge DENNIS R. BAGNERIS SR., Judge LEON A. CANNIZZARO, JR., Judge ROLAND L. BELSOME).

Opinion:
BELSOME, Judge.
11 This case involves two companies that bid for a government contract awarded by the General Service Administration ("GSA") in 2000. The GSA is federal procurement agency charged with obtaining products and services for other federal agencies. The GSA regularly enters into contracts with private-sector businesses that are capable of providing necessary products and services.
In 2000, the GSA issued a Request for Quotation ("RFQ") for a Blanket Purchase Agreement ("BPA") to support the Navy's Information Technology Center in New Orleans. The RFQ was restricted to small businesses. In August 2000, Science & Engineering Associates, Inc. ("SEA") and Systems Engineering and Security, Inc. ("SES") submitted proposals in response to the GSA's RFQ. On August 31, 2000, the GSA awarded the BPA to SEA.
SES filed its petition on August 4, 2005 against Appellees, SEA, Apogen, Inc. ("Apogen") , and Robert Savoie ("Mr. Sa- voie"). SES's petition alleges that SEA and Mr. Savoie falsely represented that SEA was a small business in August 1 ⅞2000, when it submitted its proposal for and was awarded the BPA. SES further alleges that even after SEA had been awarded the BPA, Mr. Savoie repeatedly represented that SEA was a small business. SES contends that it was not until October 2004, that SES first learned of SEA's misrepresentation to the GSA.
In January 2006, the Appellees filed an exception of no cause of action and an exception of prescription. The trial court initially granted the exception of no cause of action, which was reflected in a judgment rendered on April 25, 2006. Later the trial court issued a more detailed judgment granting SEA's exception of no cause of action and dismissing SES's claims with prejudice. The judgment was followed by reasons for judgment. SES appeals the trial court's ruling.
SES asserts one assignment of error; the trial court erred in granting the Appel-lee's exception of no cause of action and in dismissing SES's claims. The question raised is whether the trial court applied the proper legal standard in granting the exception of no cause of action.
. When determining whether to sustain an exception of no cause of action, the four corners of the petition bind the trial court. See Doe v. Jo Ellen Smith Medical Foundation d/b/a Jo Ellen Smith Medical Center and Jo Ellen Smith Psychiatric Center, 2005-0653 (La.App. 4 Cir. 7/13/05), 913 So.2d 140; Z.U. Azhar Clinic v. Rafiq, 2005-0167 (La.App. 4 Cir. 7/6/05), 913 So.2d 135. The facts alleged in the petition must be considered true for purposes of deciding whether the law provides a remedy for the plaintiff if the facts are proven at trial. Bibbins v. City of New Orleans, 2002-1510 (La.App. 4 Cir. 5/21/03), 848 So.2d 686. Further, no evidence |amay be introduced at any time to support or controvert the objection that the petition fails to state a cause of action. La.Code Civ. Proc. art. 931. On appeal, the trial court's ruling sustaining an exception of no cause of action is reviewed de novo by this court. City of New Orleans v. Board of Commissioners of Orleans Levee Dist., 93-0690, pp. 47-49 (La.7/5/1994), 640 So.2d 237, 253.
SES's petition sets forth claims for intentional/fraudulent misrepresentation and negligent misrepresentation, as well as claims for oblique and revocatory actions. This Court recognizes that, when properly pled, these causes of actions are viable theories of recovery under Louisiana State law.
To succeed in a claim for intentional/fraudulent misrepresentations, the petition must contain allegations of: "(1) a misrepresentation of material fact, (2) made with the intent to deceive, (3) causing justifiable reliance with resulting injury." Goodman v. Dell Publishing Co., 1995 WL 428602 (E.D.La.1995). In support of SES's intentional/fraudulent misrepresentation claim, the petition states that SEA through its president, Mr. Savoie, knowingly misrepresented that it was a small business to the GSA in order to obtain the BPA. It is further alleged that Mr. Savoie's false representations were relied upon by both the GSA and SES, which ultimately resulted in the contract being awarded to SEA. Certainly, all of the elements necessary for that theory of recovery are alleged within the petition, Whether SES can prove such a claim against the Appellees is not an issue to be considered when determining if an exception of no cause of action should be sustained.
We give the same consideration to SES's claim of negligent misrepresentation. In Kadlec Medical Center v. Lakeview Anesthesia Assoc., 2005 WL 1309153 (E.D.La.2005), the court set forth the required elements necessary to establish a claim of negligent misrepresentation: (1) the defendant, in the course of its business or other matters in which it had pecuniary interest, supplied false information, (2) the defendant had a legal duty to supply correct information to the plaintiff, (3) the defendant breached its duty, which can be breached by omission as well as by affirmative misrepresentation, and (4) the plaintiff suffered damages or pecuniary loss as a result of the its justifiable reliance upon the omission or affirmative misrepresentation. SES reasserts its allegations of reliance on Mr. Savoie's misrepresentations of SEA's size status throughout the bid process, which caused the contract to be given to SEA rather than to SES. We find that the trial court went outside the scope of an exception of no cause of action in holding that "SES cannot maintain a misrepresentation claim because SEA did not owe a duty SEA." SES's allegations of negligent misrepresentation are sufficient to overcome an exception of no cause of action.
Lastly, the trial court addressed SES's claims for revocatory and oblique actions. Louisiana Civil Code articles 2036 and 2044 establish those actions. Louisiana state law provides an obligee with certain rights against obligors that cause or increase the obligors insolvency. SES's petition alleges that "[o]n information and belief, SEA made distributions to Apogen which caused or contributed to SEA's insolvency such that SES as a creditor may revoke those distributions." The petition also claims that Mr. Savoie's actions were a cause of SEA's insolvency, for which it would have a claim. Once again our focus is limited to the sufficiency of the allegations within the petition, which we must consider to be true. Thus, we find that a cause of action has been stated for those actions.
IsFor the reasons discussed we find that SES has competently pled viable causes of action under Louisiana state law. Thus, we are compelled to reverse the trial court's granting of Appellees' exception of no cause of action. Accordingly, this matter is remanded for further proceedings.
REVERSED AND REMANDED
ARMSTRONG, C.J., and CANNIZZARO, J., Dissent with Reasons.
. Apogen and SEA merged in the intervening period.
. Savoie was SEA's president during the pertinent time period.