Donahue (SB 316) Act No. 487
Prior law required all public entities to promptly pay all obligation arising under public
contracts. Required public entities to pay progressive stage payments and final payments
when they become due and payable under the contract.
Prior law provided that any public entity failing to make any final payments after formal final
acceptance and within 45 days following receipt of a clear lien certificate by the public entity
is liable for reasonable attorney fees.
New law retains prior law and adds liability for reasonable attorney fees when a public entity
fails to pay any progressive stage payment within 45 days following receipt of a certified
request for payment by the public entity without reasonable cause.
Prior law provided that any public entity who fails to pay any progressive stage payments
arbitrarily or without reasonable cause, or any final payment when due under existing law,
is subject to mandamus to compel the payment of the sums due under the contract up to the
amount of the appropriation made for the award and execution of the contract.
New law retains prior law and adds that a public entity is subject to mandamus to compel
payment of authorized plan changes.
Effective August 1, 2014.
(Amends R.S. 38:2191(B) and (D))