 |
||||||||||
Iberville School Board wins Case against Seimens on legality of Energy Efficiency Contract BATON ROUGE, LA- District 17 State Senator Robert Marionneaux, Jr., (D-Livonia), has called upon the Legislative Audit Advisory Council to review the legality of the Energy Efficiency Contracts, in light of the recent Louisiana Supreme Court ruling, in accordance with the Louisiana Revised Statute 33:4547.1. The issue was raised due to the ruling in the case of Siemens Building Technologies, Inc., v. Iberville Parish School Board, which has statewide ramifications and could effect almost one billion dollars in contracts mostly between local governments, school districts as well as state buildings and Siemens . In December of 2002, the Iberville Parish School Board entered into a ten-year Performance-Based Energy Efficiency Contract with Siemens Building Technologies, Inc. for $3.5 million. The Legislative Auditor's Office issued a report in 2006 concluding that the contract did not comply with Louisiana law. Subsequently, the Attorney General issued a written opinion at the request of the Legislative Auditor, and also concluded that the contract was not valid because it did not comply with Louisiana Performance-Based Energy Efficiency Contract laws. Due to the questions raised by the Attorney General and Legislative Auditor the Iberville Parish School Board ceased paying Siemens due to the questions raised regarding the validity of the contract and the multiple breaches of the contract by Siemens. Sen. Marionneaux was hired by the Iberville Parish School board to represent them in the lawsuit Siemens filed against them. Marionneaux filed a Motion for Summary Judgment claiming that the Contract was illegal and contrary to law. That motion was heard by Judge Robin Free in the 18th judicial district court whereby he ruled that the contract was in fact illegal and contrary to law. Siemens appealed that ruling to the First Circuit Court of Appeals. The Court of Appeals upheld the ruling of the trial court and Siemens sought relief from the Louisiana Supreme Court. The Louisiana Supreme Court, by a vote of 7-0, agreed that the stipulated savings clause contained in the contract is null and void and does not comply with the statute contained in R.S. 33:4547.1. Due to the ruling in the case, all contracts may be in jeopardy of being invalid under this rule. It is estimated that there are more than $720 million in contracts throughout the State which are affected by this ruling. Sen. Marionneaux said, "I have requested a meeting with the Legislative Advisory Audit Council to discuss this impending statewide problem. There are too many dollars at stake. Companies can not expect to circumvent the state’s public bid law, reek millions of dollars in profits and not be expected to repay those sums of monies to the taxpayers throughout the state of Lousiaiana." Senator Marionneaux has requested that the Energy Efficiency Contracts issue be on the agenda at the next Legislative Audit Advisory Council meeting. And he will appear at the Iberville Parish School Board meeting Monday night, April 15, 2008, at 6 p.m..
-30- |
||||||||||
|
|
||||||||||
