American Lung Ass'n of Louisiana v. State Mineral Board

490 So. 2d 343, 1986 La. App. LEXIS 7089
CourtLouisiana Court of Appeal
DecidedMay 28, 1986
DocketNo. 85 CA 0323
StatusPublished
Cited by1 cases

This text of 490 So. 2d 343 (American Lung Ass'n of Louisiana v. State Mineral Board) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Lung Ass'n of Louisiana v. State Mineral Board, 490 So. 2d 343, 1986 La. App. LEXIS 7089 (La. Ct. App. 1986).

Opinion

SAVOIE, Judge.

Plaintiff, American Lung Association of Louisiana, Inc. (hereinafter referred to as Lung Association) appeals the judgment of the trial court sustaining defendant, State Mineral Board’s, peremptory exception pleading the objection of no cause and/or no right of action. This suit involves a question of the ownership of mineral rights and the ability of the state to alienate them.

In order to fully understand and appreciate the issues involved, a brief review of the events leading to the present litigation is essential. The origin of this controversy began on May 8, 1924. On that day, the Louisiana Anti-Tuberculosis League, predecessor of the American Lung Association of Louisiana, Inc., by act of donation dedicated to the Tuberculosis Commission for the State of Louisiana two tracts of land comprising 371.77 acres. The Tuberculosis Commission was a state agency established in 1912 by legislative enactment for the primary purpose of receiving private donations of land and money to aid in the fight against tuberculosis. The act of donation contained in part the following provisions:

The property so donated is expressly dedicated to the following purpose, to wit: for the location of sanatoria for persons suffering from tuberculosis. To have and to hold the said property unto the said Tuberculosis Commission for the State of Louisiana for the purpose above mentioned, with the understanding and under the condition that in the event that the above described property is not specifically used for the purpose set forth in this Act of Donation within a period of five years from this date, then the said property shall revert to the donor.

In 1974, litigation was initiated by the Lung Association against the State of Louisiana, through the Louisiana Health and Human Resources Administration, successor in interest to the Tuberculosis Commission. Therein, the Lung Association sought revocation of the donation, claiming that the state was no longer using the property as a tuberculosis treatment facility. The trial court found in favor of the state and dismissed the law suit. However, subsequent to that litigation, the state was persuaded to enter into a compromise with the Lung Association concerning the disputed property. On August 28, 1977, the parties signed an act entitled “Compromise Agreement,” followed by the execution of an “Act of Exchange” dated March 30, 1978. By these transactions the state transferred to the Lung Association 221.51 acres of the original 371.77 acres donated to the state, along with a cash payment of $75,000.1 The state, in its own name, received 150.26 acres of the original donation, upon which the Greenwell Springs hospital facilities are located. However, nowhere in these instruments, nor the original act of donation, was the transfer or reservation of mineral rights mentioned or discussed. Nevertheless, in October of 1979, the Lung Association executed a mineral lease on the 221.51 acres it received, which was duly recorded in the records of the Parish of East Baton Rouge.

In August 1983, the mineral rights, under the acreage received by the Lung Association, were nominated by a private party [345]*345to the State Mineral Board for public leasing. The staff of the Office of Mineral Resources recommended leasing of the subject tract. Upon protest from the Lung Association, the Mineral Board temporarily withdrew the acreage in question prior to any advertising and requested an opinion from the Attorney General’s office regarding the ownership of the mineral rights. Upon receipt of the opinion in which the Board was advised that the State of Louisiana owned the mineral rights thereunder, the Board proceeded to advertise the acreage for mineral leasing.

The Lung Association then filed the present suit seeking to enjoin the Board from advertising or executing any lease of the minerals on the property, along with a judgment quieting its title. The Board excepted to the suit on the grounds of no cause and/or no right of actions. In its peremptory exception, the Board claimed that the Lung Association had no cause of action since the State of Louisiana is constitutionally prohibited from selling or exchanging mineral rights under land it owns pursuant to Article 9, § 4 of the Louisiana Constitution of 1974. Therefore, the state could not have transferred the mineral rights to the Lung Association. Additionally, the Board asserted that the Lung Association had no right of action in that they had failed to obtain legislative authorization to sue the Board, a state agency, as required by Article 12 § 10 of the Louisiana Constitution of 1974.

Thereafter, both sides filed cross motions for summary judgment on the merits of the case, which were passed after being argued by counsel, and the court took the Board’s exceptions under advisement. Prior to disposition of the case, the Legislature enacted and the Governor signed Act 959 of 1984,2 which directed the appropriate state [346]*346official to quit claim to the Lung Association any claim to the minerals under the Lung Association’s portion of the Green-well Springs tract.

After having considered the exceptions, the court held in favor of the Board, sustaining the exception and dismissing the suit. From this ruling the Lung Association has appealed alleging eleven assignments of error. However, we elect not to address these assignments individually because we find there is only one real issue in this case, that being whether or not the state can alienate mineral rights on property by compromise, quitclaim or act of exchange, or by legislative enactment. Stated another way, does Article 9, § 4(A) of the Constitution of 1974 for the state of Louisiana prohibit the alienation of mineral rights on property which has been disposed of by exchange, compromise, quitclaim or legislative enactment, where such alienation does not fall within an exception in the constitution.

We note at the outset that regardless of whether the Louisiana Constitution of 1974 or 1921 is applied, our decision is the same. Article 9 § 4(A) of the Constitution of 1974 reads in pertinent part as follows:

The mineral rights on property sold by the state shall be reserved, except when the owner or person having the right to redeem buys or redeems property sold or adjudicated to the State for taxes.

This language is almost identical to the language used in the Constitution of 1921 Article 4 § 2, which reads in pertinent part as follows:

[347]*347In all cases the mineral rights on any and all property sold by the State shall be reserved, except where the owner or other person having the right to redeem may buy or redeem property sold or adjudicated to the State for taxes.

Thus, the first question we must face is whether or not the “Act of Exchange” was a sale within the meaning of the Constitution. In order to address this issue we must determine whether the word “sold” as used in the Constitution includes such other alienations as compromise, quitclaim or exchange. The trial court found that the act of exchange executed between the parties was in fact and in law an exchange and was the legal equivalent of a sale by the state of the property transferred to the Lung Association. As a result, the transfer or alienation of the mineral rights were prohibited by the Constitutional provision reserving them for the state. We agree with these findings.

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Related

American Lung Ass'n of Louisiana v. State Mineral Board
495 So. 2d 291 (Supreme Court of Louisiana, 1986)

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490 So. 2d 343, 1986 La. App. LEXIS 7089, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-lung-assn-of-louisiana-v-state-mineral-board-lactapp-1986.