Castille v. City of Opelousas

509 So. 2d 723, 1987 La. App. LEXIS 9566
CourtLouisiana Court of Appeal
DecidedMay 13, 1987
DocketNo. 86-565
StatusPublished
Cited by2 cases

This text of 509 So. 2d 723 (Castille v. City of Opelousas) 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
Castille v. City of Opelousas, 509 So. 2d 723, 1987 La. App. LEXIS 9566 (La. Ct. App. 1987).

Opinion

FORET, Judge.

Plaintiff, Alfred Castille, has appealed a judgment rendered in his favor awarding damages for tortious interference with his right to contract with others, totaling $335.75, against the City of Opelousas.

FACTS

Plaintiffs residence is situated outside of the City of Opelousas. The home was bought in September of 1946, at which time Southwest Louisiana Electric Membership Corporation (SLEMCO) supplied electrical power to the residence. After purchasing the home, the electrical power account was transferred to the City of Opelousas, even though the house was outside of the city limits. Plaintiffs electrical bill from the City progressively increased, and when it began to rise inordinately, plaintiff began, in September of 1975, his request to the City for a written release to enable him to secure cheaper electrical power from SLEMCO.

SLEMCO would not furnish electrical power to plaintiff’s residence without the written release from the City. Plaintiffs requests to the City spanned six years, and each request was met with either inaction or direct refusal by the city council. No reasonable explanation for the refusal to give the needed release was ever offered by the City. Eventually, plaintiff was told that in order to get the release he would have to file suit. Consequently, plaintiff filed suit for declaratory judgment and in-junctive relief. He subsequently amended his petition when the City of Opelousas sold jts power plant and facility to SLEM-CO. Plaintiff requested only damages reflecting the difference in the cost of utility services from the initial date of demand, September 1975, to September of 1980.

The trial court found that the City of Opelousas had a duty to give plaintiff a release, upon request, to permit him to secure electrical power from SLEMCO and thereby minimize his utility bill. However, the court held that because plaintiffs cause of action rested on tortious interference with contract, it was a delictual claim and governed by a one-year prescriptive period. Accordingly, the trial court ruled that all but $335.75 of plaintiff's claim had prescribed. This appeal by plaintiff ensued.

EXISTENCE OF CONTRACT OR SERVICE AGREEMENT

Castille contends that the trial court erred in concluding that no contract existed between plaintiff and the City. LSA-R.S. 33:1326 provides:

“§ 1326. Service agreements
A. (l)(a) Any parish, municipality, or political subdivision, or combination thereof, operating a gas, water, or electric light or power system, sewerage plant, or transportation system may extend such services to persons and business organizations located outside its territorial bounds, or to any other parish or municipality.
(b) Such extension shall be in accordance with the terms of service agreements entered into by the parish, municipality, or political subdivision, or combination thereof, supplying the service and the persons, business organizations, parishes, or municipalities receiving the service.
(2) No parish, municipality, or political subdivision, or combination thereof, operating an electric utility system shall sell electric power at retail outside its territorial bounds unless such power is transmitted from such electric utilities distribution system and delivered to retail customers solely through facilities owned by such parish, municipality, or political subdivision, or combination thereof.
B. (1) Nothing in this Section shall prohibit or mandate the performance by any parish, municipality, or political subdivision, or combination thereof, of any [725]*725agreement for the sale of electric power to persons and business organizations located outside its territorial bounds under an agreement executed prior to January 1, 1984 or any renewal of such an agreement.
(2) Nothing in this Section shall prohibit or mandate the delivery or transmission of power in furtherance of such an agreement through facilities owned by others if the request had been communicated to the electric public utility prior to January 1, 1984.”

In LeBlanc v. City of Plaquemine, 448 So.2d 699 (La.App. 1 Cir.1984), the court found that a written agreement is not required by LSA-R.S. 33:1326. In LeBlanc, supra, the court held that LSA-R.S. 33:1326 in no event requires any more than the basic requirements of a contract under Louisiana law.

The court went on to state that La. C.C. art. 1779 provides the four requirements of a valid contract: (1) competent parties, (2) their consent, (3) a certain object, and (4) a lawful purpose. All of the elements are met in this case, forming a valid contract or “service agreement” between the City and its customers. For example, in Grein v, Hawkins, 295 So.2d 219 (La.App. 3 Cir.1974), the court stated that the use of sewerage utility services, billings, and payment of bills evidenced a binding contract in that case. The request for utility service, combined with service, billing, and payment — certainly an accord reached between the City and plaintiff — is a “service agreement.”

The service agreement in question contains no agreement as to duration of term. In the absence of an express stipulation as to the term of a contract, Louisiana courts infer a reasonable term from the nature of the contract and the circumstances of the case. La.C.C. art. 2050; LeBlanc v. City of Plaquemine, supra, and cases cited therein. Among those circumstances are the manner of the parties’ execution of their obligations and pertinent usage and custom. LeBlanc v. City of Plaquemine, id.

The record reflects that plaintiff did not have any particular intention as to the duration of the service at the time he requested it. Consequently, because there was no intention, there was nothing to communicate to the City at the time service was requested. The record contains conflicting evidence as to whether or not any other case of a city customer transferring to another utility was managed without the express consent of the City. It is obvious from an economical point of view, keeping in mind the substantial investment in electric facilities, these types of service agreements are not generally terminable at the customer’s will for the purpose of obtaining the same service from another utility provider. The city-customer relationship is one of considerable value to the City.1

In regard to the employment of custom and usage in defining terms of agreements, La.C.C. art. 1903 provides:

“The obligation of contracts extends not only to what is expressly stipulated, but also to everything that, by law, equity or custom, is considered as incidental to the particular contract, or necessary to carry it into effect.”

Furthermore, La. C.C. art. 1953 provides that:

“Whatever is ambiguous is determined according to the usage of the country where the contract is made.”

Additionally, La.C.C. art. 1964 provides that:

“Equity, usage and law supply such incidents only as the parties may reasonably be supposed to have been silent upon from a knowledge that they would be supplied from one of these sources.”

Art. 1966 states in pertinent part that the word “usage” means that which is generally practiced in affairs of the same nature with that which forms the subject of the contract.

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Related

Castille v. City of Opelousas
520 So. 2d 971 (Louisiana Court of Appeal, 1987)
Castille v. City of Opelousas
512 So. 2d 426 (Supreme Court of Louisiana, 1987)

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Bluebook (online)
509 So. 2d 723, 1987 La. App. LEXIS 9566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castille-v-city-of-opelousas-lactapp-1987.