Central Louisiana Bank & Trust Co. v. Avoyelles Parish Police Jury

493 So. 2d 1249, 1986 La. App. LEXIS 7599
CourtLouisiana Court of Appeal
DecidedSeptember 4, 1986
Docket86-709
StatusPublished
Cited by6 cases

This text of 493 So. 2d 1249 (Central Louisiana Bank & Trust Co. v. Avoyelles Parish Police Jury) 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
Central Louisiana Bank & Trust Co. v. Avoyelles Parish Police Jury, 493 So. 2d 1249, 1986 La. App. LEXIS 7599 (La. Ct. App. 1986).

Opinion

493 So.2d 1249 (1986)

CENTRAL LOUISIANA BANK & TRUST COMPANY, et al., Plaintiffs-Appellants,
v.
AVOYELLES PARISH POLICE JURY, et al., Defendants-Appellees.

No. 86-709.

Court of Appeal of Louisiana, Third Circuit.

September 4, 1986.

*1250 Chris J. Roy, Alexandria, for plaintiffs-appellants.

Darrel D. Ryland, John T. Bennett, Thomas E. Papale, Marksville, Martha S. Hess, Baton Rouge, for defendants-appellees.

Before DOMENGEAUX, GUIDRY and YELVERTON, JJ.

YELVERTON, Judge.

Three banks and a private citizen of Avoyelles Parish filed suit against the police jury, its president, the parish sheriff, the Avoyelles Parish Law Enforcement District, another bank, and the attorney general of Louisiana, attacking the issuance and sale of $750,000 in a certificate of indebtedness under an intergovernmental agreement for improvements to the parish jail. A number of exceptions and rules were heard on June 27, 1986, all decided adversely to the petitioners, who appealed. We gave the case a preferential docketing as permitted by LSA-R.S. 13:5128, because it involves the validity of the issuance and sale of bonds of a governmental unit.

By means of the Omnibus Bond Authorization Act of 1985 (Act 745), the Louisiana Legislature made provision for certain priority bonds to the Louisiana Commission on *1251 Law Enforcement for parish jails, the share specifically included in the act for Avoyelles Parish being set at $2.1 million. The act further provided that before the sale of any bonds or approval of any line of credit, the parish governing authority was required to submit evidence of availability and commitment of a 30 percent local share to the Louisiana Commission on Law Enforcement and Administration of Criminal Justice, the Commissioner of Administration, and the State Bond Commission.

In order to avail themselves of the state funds, the Avoyelles Parish Police Jury, the sheriff of Avoyelles Parish, and the Law Enforcement District of Avoyelles Parish, met on April 17, 1986, and entered into an intergovernmental agreement for the acquisition, construction, operation and maintenance of an addition and renovation to the parish jail. This was done pursuant to Article VI, Section 20 of the Louisiana Constitution of 1974, and the Local Services Law, R.S. 33:1321, et seq. Approval of the bond issue had previously been obtained from the State Bond Commission.

At the same meeting on the same date, the police jury passed a resolution providing for the incurring of debt and issuance of a $750,000 certificate of indebtedness. There was an agreement between the parish and the sheriff, described in the intergovernmental agreement, that because the sheriff had an annual surplus of revenue over operating expenses, by dedicating that surplus to the police jury for use by it in paying its debt service, there would be money available each year for the police jury to retire the 10 year certificate of indebtedness. To comply with the statutory requirement, LSA-R.S. 33:2922 et seq. and to show that there in fact existed excess revenues sufficient to support the debt service, the police jury amended its current budget to reflect revenues of approximately $100,000 from the sheriff of Avoyelles Parish.

At the same meeting, that is, April 17, 1986, there was presented to the police jury from The Union Bank, one of the defendants herein, a written offer to purchase the certificate of indebtedness. Because of the relative size issue, it was a negotiated sale between the police jury and whomsoever it selected as the buyer. That offer, by a separate resolution, was accepted by the police jury. Finally, at this meeting a resolution was passed authorizing the dedication and expenditure of the funds that had already been expended for improvements on the parish jail, as well as the proceeds to be received from the sale of the certificate of indebtedness, (sums which together were sufficient to comprise the 30 percent match of the total funding), and authorizing the president of the police jury to execute a cooperative endeavor agreement with the State of Louisiana in order to receive the $2.1 million representing the state's share of the total project cost.

At the time the suit was filed attacking these proceedings, the certificate had been sold to the Union Bank, but it was not delivered, and, of course, has not been delivered because of the pending litigation.

The present suit was filed June 2, 1986. The petitioners in this suit were Central Louisiana Bank & Trust Company (CENLA), Mansura State Bank, Cottonport Bank, and Anthony J. Roy, Jr., an individual and a citizen, as well as president of CENLA. The three banks described themselves as members of a consortium, CENLA describing itself as the "lead bank and/or attorney in fact for the consortium."

The petition was styled "Petition for Declaratory Judgment, Injunctive Relief, and Breach of Contract." The petition prayed for a rule to show cause and ultimately an injunction prohibiting all defendants from selling, authorizing, transferring or conveying the certificate of indebtedness on the ground that the issuance of the certificate was ultra vires; in the alternative, if the bond issue was legal, petitioners prayed that they and not The Union Bank, be declared the fiscal agents of the police jury by virtue of a fiscal agency contract they had with the jury and, as such, entitled to all of The Union Bank's rights, title and interest to the agreement and/or resolutions; *1252 finally, petitioners prayed that there be judgment against The Union Bank in the amount of $1 million. The petitioners prayed for a jury trial of the merits of its claim against The Union Bank.

When the petition was filed there was presented to the district court, and signed by it, an order setting for hearing on June 27, 1986, a rule to show cause why a preliminary injunction should not issue, in the following language:

"I. Mandating, enjoining and restraining the Avoyelles Parish Police Jury from authorizing the sale of certificates, bonds or other securities for the purpose of constructing, operating and maintaining a prison (jail) in Avoyelles Parish to incarcerate statewide prisoners and other personnel other than those convicted for crimes in Avoyelles Parish, Louisiana, whether said conduct occurs as a consequence of the actions of Avoyelles Parish Police Jury, Bill Belt, Sheriff of Avoyelles Parish, Louisiana and/or the Law Enforcement District of Avoyelles Parish, Louisiana as being ultra vires, illegal and unconstitutional;
"II. Bill Belt, Sheriff of Avoyelles Parish, Louisiana and as director of the Law Enforcement District of Avoyelles Parish, Louisiana, should not be enjoined from constructing, maintaining or operating a prison system in Avoyelles Parish, Louisiana as ultra vires and unconstitutional;
"III. Mandating The Union Bank to comply with its fiscal agency agreement entered into between it, the consortium banks and the Avoyelles Parish Police Jury and why The Union Bank should not be mandated to deliver, convey and assign all its rights, titles and interests in the proposed certificates of indebtedness unto the consortium banks, should the Avoyelles Parish Police Jury be authorized to construct, maintain and operate a prison (jail) in Avoyelles Parish, Louisiana."

The sheriff, the Avoyelles Parish Law Enforcement District, The Union Bank, and William J.

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Bluebook (online)
493 So. 2d 1249, 1986 La. App. LEXIS 7599, Counsel Stack Legal Research, https://law.counselstack.com/opinion/central-louisiana-bank-trust-co-v-avoyelles-parish-police-jury-lactapp-1986.