New Orleans Liable|for Rec Center Debt

     (CN) – New Orleans is on the hook for a media company’s failure to pay a subcontractor nearly $680,000 for its work on a recreational center to be used as the set for a TV series called “ReNew Orleans,” the 5th Circuit ruled.




     The city struck deal with DNA Creative Media and DNA Productions for the construction of a $3.2 million recreational center in Comiskey Park where the TV series would be filmed.
     The series was supposed to showcase the construction project and city life in the aftermath of Hurricane Katrina. After filming, DNA agreed to turn the center over to the city.
     DNA hired Paul Davis National to help build the center, but the subcontractor claims DNA still owes it $679,852 for its work.
     Paul Davis sued DNA and New Orleans in federal court for the remaining money.
     A federal judge found the city liable for DNA’s failure to pay its subcontractor, because the city neglected to make DNA post a bond as required by the state Public Works Act.
     The federal appeals court in New Orleans agreed, rejecting the city’s claims that it did not contract for any work, and that the contract was not a “public contract” nor Paul Davis a “claimant” under the Act.
     The 5th Circuit fully endorsed the lower court’s “clear, comprehensive, and correctly reasoned analysis” that the city was liable for the remaining bill, because it had shirked its duty to require a bond.

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