BATON ROUGE — A Baton Rouge-based construction company has filed a lawsuit against the Baton Rouge Recreation and Park Commission over payment disputes and design issues related to the construction of a community center and pool at Howell Community Park. The company accuses the park system and its design partner of engaging in fraudulent behavior.
Capitol Construction filed the lawsuit in the 19th Judicial District Court in April 2023 against Perez, the firm commissioned by BREC to design the park. An amended petition was submitted in August 2024, adding BREC as a defendant.
Capitol’s case outlines several allegations, including escalating project costs, design flaws, and inaccurate topographical and survey data.
The lawsuit states that BREC and Perez signed a contract for administrative and design services in May 2017, while Capitol Construction did not become the primary contractor until September 2020.
Capitol claims the initial project plans and specifications provided by Perez were incomplete, and that BREC failed to disclose a known water leak, which created muddy site conditions that delayed the start of the project.
Upon beginning work, Capitol alleges Perez and/or BREC provided incorrect topographical and survey data, conflicting sewer and pond designs, and incorrect pond sizes and elevations. These issues, Capitol claims, delayed the preparation of the building pad until April 2021. Further delays occurred when Perez issued new structural design drawings in late April 2021, which, according to Capitol, “further delayed the pad work and affected rebar, concrete, metal studs, and other items by altering the sizes and shapes of those items.”
BREC accused of acting in bad faith
Additional claims suggest BREC acted in bad faith by exploiting Capitol’s competitive bid.
“On information and belief, Capitol was the lowest bidder for the project and BREC was anxious to take advantage of Capitol’s competitive bid. Instead of correcting the topographical information, BREC withheld the deficiency of this information from Capitol so that Capitol would sign the construction contract and begin work.”
Capitol also claims it submitted multiple change order requests for work outside the original contract scope but that BREC and Perez improperly rejected these requests. These rejections, according to Capitol, related to delays, rework of allegedly flawed designs, and price increases for materials, which Capitol believes were unfairly denied.
The lawsuit further accuses Perez of creating a conflict of interest by failing to acknowledge design errors, allegedly to reduce the firm’s exposure to liability. Capitol claims Perez avoided approving necessary changes to avoid triggering claims against its professional liability insurance.
The most serious accusation leveled against BREC is one of fraud. Capitol claims that BREC used construction change directives, or CCDs, to force Capitol into performing additional work without any intention of paying for it.
Capitol alleges BREC’s policy prohibits payment for work under such directives without board approval—a policy Capitol claims was never disclosed when it signed the contract. The lawsuit further alleges that BREC and Perez used these CCDs to authorize hundreds of thousands of dollars in additional work, with no intention of reimbursing Capitol for those costs.
“Capitol does not comment on pending litigation, however, we believe the lawsuit speaks for itself,”
Amanda Pittman with Capitol told UWK when reached for comment.
Representatives with BREC did not call UWK back for comment despite attempts.
Ultimately, seven total counts have been brought forward against BREC and/or Perez. Those include:
- Negligence (against Perez)
- Conflict of interest and lack of neutrality (against Perez)
- Detrimental reliance (against Perez and BREC)
- Prompt pay interest and fees (against BREC)
- Breach of contract (against BREC)
- Fraud (against BREC)
- Bad faith breach of contract (against BREC)
On Nov. 5, East Baton Rouge Parish residents approved two taxes for BREC, which amounts to roughly 65% of the organization’s operating budget. Voters approved a 10-year renewal of a total of 6.2 mills, which will fund general operations and improve buildings and grounds. It passed with 61% of the total votes.
And residents also approved an extension of a 20-year tax of 3.253 mills, which will finance the organization’s “Imagine Your Parks” strategic plan, which passed with 53% of the votes.
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