Brennan v. Sewerage & Water Board & Board of Liquidation

108 La. 569
CourtSupreme Court of Louisiana
DecidedJuly 1, 1902
DocketNo. 14,512
StatusPublished
Cited by13 cases

This text of 108 La. 569 (Brennan v. Sewerage & Water Board & Board of Liquidation) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brennan v. Sewerage & Water Board & Board of Liquidation, 108 La. 569 (La. 1902).

Opinions

Monroe, J.

In the first of the above entitled cases, James A. Bren-nan and James H. Douglas seek, by injunction, to prohibit the consummation of a contract entered into between the Sewerage and Water Board and the New Orleans Sewer Company, and ratified by the City of New Orleans, whereby the Board has undertaken to acquire, for the City, certain tangible property, and franchises, of which the company claims to be the owner; the grounds relied on being, that the Board Í3 without authority in the premises, and that the price agreed on is excessive. When these plaintiffs appeared in court, there was already pending a suit which had been brought by the City, in July, 18D6, to annul the ordinance and contract under which, as transferree, the New [571]*571Orleans Sewer Company now claims to be the owner of the franchises in question, .and to recover certain damages alleged to have been sus-.tained by reason of the non-execution of that contract, and the suit last .mentioned was transferred to the division to which the other had been .alotted, pursuant to an agreement, containing, among others, the following stipulations: “1. These cases shall be and are consolidated, and they shall be heard and determined in Division A, before Judge Ellis, at one and the same time. 2. At the trial, the evidence on the issues in .said suit No. 67,254, entitled Brennan vs. Sewerage and Water Board, shall be first taken. 3. The evidence on the issues in suit No. 50,365, entitled City of New Orleans vs. New Orleans Sewerage Company, shall then be taken. 4. The matters at issue shall be argued at one time, at the earliest practicable moment. 5. The court shall then render one judgment and decree disposing of all the issues in each of the •consolidated suits; and there shall be but one record on an appeal by •either, or all, parties, and all issues shall be considered as before the Supreme Court when the cause is taken on appeal of any or all parties.”

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And this agreement appears to have been carried into effect in all Tespects, save that separate judgments were rendered in the two cases, of which, however, no complaint is here made. There was judgment in favor of Brennan and Douglas “forever restraining * * * the defendants * * * from carrying into execution the proposed pur-chase of the property, rights and supposed franchise of the Sewer Company, and from paying them * * * any sum of money towards said purchase under the proposition” attacked by the plaintiffs. And there was judgment in favor of the City, and of certain intervenors who had joined the City, in the case last mentioned in the above caption, “annulling ordinance 6142 C. S., adopted March 22, 1892, and the contract thereunder by act before J. D. Taylor, notary public, April 13, 1892, as being illegal, null, and void, and of no effect. * * * Dismissing and rejecting the intervention of N. W. Jordan and of his assignee, the New Orleans Sewer Company,” and dismissing, as in ease -of non-suit, the claim of the City, for damages. And from these judg-ments, the parties cast have appealed. The facts, as we find them, from •the transcript and from the admissions of counsel, and which, in the main, are undisputed, .are as follows: Act 125 of 1880, amending cer[572]*572tain sections of the Revised Statutes, -authorizes the establishment o£ corporations for sewerage, among other, purposes, and provides that, such corporations shall not construct their works through the streets-of any city or town without the consent of the council thereof. It further provides that the council giving the necessary consent “may, in the-interest of the public health and cleanliness, pass all needful ordinances- and police regulations to make effective the system of sewerage * * *" adopted with reference to all houses and lands within the municipal, limits.”

It further provides that such corporations may borrow the money “required for the construction, repairs, or acquisition of property, or franchises, and, for this purpose, may issue bonds, or other obligations, secured by mortgage upon the franchises and all the property * * *" of said1 companies, * * * with power to sell, pledge, or otherwise-dispose of, said bonds.”

On March 24, 1892, the City Council of New Orleans, by ordinance 6142 C. S., authorized the mayor to enter into a contract granting to A. A. Woods and his associates the privilege of constructing, and maintaining, for fifty years, a system of sewers through the streets of New Orleans; and the contract was entered into accordingly, by act before Taylor, notary, April 13, 1892. It was provided that, within six month® from the passage of the ordinance, Woods should transfer said contract to a corporation to be organized under act 125 of 1880; and he made the-transfer, within the time specified, to the New Orleans Sewerage Company, which was organized September 19, 1892. It was also provided that the company should begin its surveys within six months from the-date of its organization, and should complete one-fifth of the entire work contemplated by the contract within each year thereafter, for five-years. In January, 1894, however, an 'extension of “two additional years,” was granted to the company “within which to begin and to complete the sewerage system.” The company first undertook to accomplish-the work called for by its contract through the New Orleans Construction Company, but subsequently employed the contracting firm off Stewart & McDermott, who abandoned the job in October, or November, 1895. In the meanwhile, and in order to raise the necessary funds* the company had caused to be executed bonds, secured by mortgage on its property and franchises, to the amount of $2,000,000, of which some-[573]*573•$386,500 had been issued, $375,000 of that amount having been negotiated in the city of Boston, and, possibly, the larger proportion of the proceeds having been put into the work. Upon the withdrawal of •Stewart & McDermott, active operations were suspended; and; on May 22, Í896, the president of the company appeared before a committee •of the City Council and made a statement of its .affairs, from which it appeared that it was not in a condition to go' on with the work, and in the course of which he said “that unless the company was controlled By ..gentlemen of higher standing, he would be glad to have the franchise returned to the City.” It does not appear, however, that he was .authorized by the company to make such a statement, or that it was made with the approval of the -bondholders. On May. 26th, a motion offered by the committee just mentioned, was adopted by the council, •directing the city attorney to take “necessary steps to have the New Orleans Sewerage Company put in default, and institute the necessary legal proceedings to have their charter declared forfeited, and to annul the ordinance granting all privileges to A. A. Woods, his successors, transferees, and assigns.” In June, following, certain creditors of the •company filed a petition alleging that it was insolvent, that its operations had been suspended, .and that it had grants and franchises which would be lost, to it and to its creditors, unless the court would appoint •a receiver. And, the petition having been accompanied by a resolution of the board of directors of the company, virtually admitting the truth ■of its allegations, and service thereof having been accepted by its president, a receiver was appointed. Thereafter, in July, the city attorney instituted suit, according to his instructions, praying that ordinance ■6142 C. S.

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Bluebook (online)
108 La. 569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brennan-v-sewerage-water-board-board-of-liquidation-la-1902.