First Municipality of New Orleans v. McDonough

2 Rob. 244
CourtSupreme Court of Louisiana
DecidedMay 15, 1842
StatusPublished
Cited by8 cases

This text of 2 Rob. 244 (First Municipality of New Orleans v. McDonough) 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
First Municipality of New Orleans v. McDonough, 2 Rob. 244 (La. 1842).

Opinion

GarlaNd, J.

The petition sets forth that, in the month of February, 1837, the members composing the Council of the First Municipality, held a seeret session, in which they adopted a resolution directing the Mayor and Committee of Improvement, to purchase from the defendant, a large portion of the square of ground situated between Condé, Hospital, Barrack and Levee streets, for[245]*245a sum not exceeding $290,000, payable in the bonds of the Municipality, twenty-five years after date, bearing interest at the rate of six per cent per annum, payable semi-annually; but, if the purchase could not be effected on those terms, to conclude it by making the price payable in five annual instalments, with six per cent interest from date. This resolution was not approved by the Mayor, and the legal majority could not be found to pass it. At the meeting at which it was rejected, a resolution, similar in all respects, except as to the latter clause, was passed by the Council. This was also rejected by the Mayor, but upon a reconsideration after the veto, the resolution was passed by a legal majority of the Council.

In obedience to this last resolution, an authentic act was passed, on the 7lh of April, 1837, by which the defendant sold the lot of ground in question to the plaintiffs for $247,000, payable in their bonds twenty-five years after date, with six per cent per annum interest, payable semi-annually.

The plaintiffs now pray that this contract may be annulled, that the bonds may be given up to be cancelled, the defendant condemned to repay $51,870 wrongfully paid for interest, and that the certificates for the interest may be also surrendered and cancelled, because, in the purchase of the property, and in issuing the bonds in question, the members of the Council acted contrary to law, and transcended the powers and authority delegated by the acts of incorporation. The petitioners allege, first, that when the Mayor had returned the first resolution with his veto, and the Council did not persist in it, they had no right, at the same sitting or meeting, to introduce or pass a similar resolution; secondly, that the purchase of the property was made with a view to a resale for profit, and for speculation, and not for the attainment of any of the objects in relation to which the Council was authorized to act; thirdly, that the Council had no power or authority to acquire the property; wherefore, the execution and delivery of the bonds and interest certificates are void and of no validity, and the deed of sale also null and void. The prayer of the petition is analogous to these various allegations, and the defendant has been enjoined from disposing of the bonds and certificates in any man[246]*246ner, so as to put them beyond the reach of the process of the court.

For answer, the defendant admits the sale of the property for the consideration mentioned. He avers that it was made in good faith, at the instance and request of the corporation, for their sole and exclusive use ; that the property has long since been delivered to the Municipality, and remains in their possession, except such portions as have been sold to other persons; that the plaintiffs have entirely changed the nature of the properly, by pulling down and removing extensive and valuable buildings, by dividing the ground into small lots and selling them to various individuals, and by opening a street or streets through the same for public use and convenience. He states that the sale is legal and binding in all respects, and should not be rescinded for any of the causes stated ; but if it should be annulled, he prays that the Municipality may be condemned to restore the property in the state in which it was when sold, and to pay all just and reasonable damages for the changes that have been made, and for all other injuries done to the same.

The resolutions of the Council, and the vetoes of the Mayor, are in the record, as well as the sale from the defendant duly accepted. Two hundred and forty-seven bonds, of $1000 each, were issued, and fifty interest certificates for each bond. The resolution shows that the Council were willing to give $290,000 for the property ; but the consideration was $247,000, payable as stated. The Mayor, in his veto, informs the Council lhat'the property was not worth more than half the sum proposed to be given for it; but their resolution was persisted in, and adopted with only two dissenting votes.

Gallien Preval, who was a member of the Council, and took an active part, as it appears, in this transaction, testifies that the object in purchasing the property was to re-sell it, and that it was so understood by the Council, the public, and the people generally; that he does not know that such purpose was known to the defendant, as nothing was ever said about it. A plan of the property was made after the purchase, and a street marked through the centre, and the lots sold, in conformity to the plan, to different [247]*247persons. He says that the Council was well aware, when the purchase was made, that money would be lost by it; but that the object in purchasing was to improve that part of the city. It was the opinion of the members of the Council, at the time, that as long as the property remained in the hands of the defendant, it would not be improved ; and it was .considered a nuisance so long as it remained so. It was a detriment to other property in the neighborhood, a receptacle for dirt and filth, and considered injurious to the health of that part of the city. He says the Municipality took possession, tore down every thing that was on the ground, and caused to be sold at auction the immense brick building, formerly used as barracks by the United States. It was demolished, and the material in the foundation taken away by the municipal authorities, and used in repairing the streets.

In February, 1839, and in Jun^, 1840, a number of the lots were sold at auction, by order of the Council, for upwards of $70,000. That body, afterwards, not finding them so valuable and useful as their predecessors had supposed they would be, got all the sales annulled, released the purchasers, and in the month of October, in the latter year, commenced this suit. When the resolutions, directing the sale of the lots, were passed, they contained a condition that the lots sold should be improved, and houses built upon a plan annexed, and they were so sold; and the evidence of the plaintiffs shows, that if they had been so built on and improved, it would have been a great advantage to the surrounding property, and a great improvement to that quarter of the city.

Prieur, the Mayor of the city, says, that he did not consider this ground more a nuisance than other open lots around it. He stated fully to the Council, his views as to the inexpediency of the purchase, yet they persisted. He says that the opening of the street was a public convenience ; not a very great one, but calculated to give additional value to the lots offered for sale.

The District Court gave a judgment for the plaintiffs, annulling the sale, decreeing a restoration of the bonds and interest certificates, and condemning the defendant to pay $51,870, which he had received for interest on the bonds, from which he has appealed. The first ground upon which it is alleged that the resolu[248]*248tion is null, depends entirely upon the rules adopted by the Council for its government. They are not in evidence; but if they were, they would not affect the case, as it appears that all rules were dispensed with when the resolution was adopted.

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Cite This Page — Counsel Stack

Bluebook (online)
2 Rob. 244, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-municipality-of-new-orleans-v-mcdonough-la-1842.