In Re Gulf Oxygen Welder's Sup. Prof. Shar. P. & TA

297 So. 2d 663
CourtSupreme Court of Louisiana
DecidedJuly 1, 1974
Docket54622
StatusPublished
Cited by24 cases

This text of 297 So. 2d 663 (In Re Gulf Oxygen Welder's Sup. Prof. Shar. P. & TA) 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
In Re Gulf Oxygen Welder's Sup. Prof. Shar. P. & TA, 297 So. 2d 663 (La. 1974).

Opinion

297 So.2d 663 (1974)

In re GULF OXYGEN WELDER'S SUPPLY PROFIT SHARING PLAN AND TRUST AGREEMENT, Petitioner-Appellant.

No. 54622.

Supreme Court of Louisiana.

July 1, 1974.

*664 Edwin K. Hunter, M. Dennis Daugherty, Camp, Carmouche, Palmer, Carwile & Barsh, Lake Charles, for appellant.

TATE, Justice.

The trustee of a trust applied to the district court of proper venue for instructions construing the trust instrument. The application was made in ex parte proceedings, as authorized by La.R.S. 9:2233 (1964).

The district court held this statute unconstitutional, as requiring it to render advisory opinions. The appeal to the court of appeal was transferred to this court, 291 So.2d 887 (La.App.3d Cir.1974), since this court has appellate jurisdiction where a statute is declared unconstitutional. La. Const. Art. VII, Section 10(2) (1921, as amended).

Facts

In 1966, ten corporations established the present profit-sharing plan and trust for the benefit of their employees. In 1972, the participant companies agreed to its termination. The trustee applied to the federal Internal Revenue Service for a determination as to the effect of each company's termination in the plan. The federal agency held that, as to one of the companies ("Baton Rouge"), the plan had terminated in 1970, and that certain funds allocated to Baton Rouge's former employees should have been held vested and distributed at that time.

The trustee set forth these facts in full and applied to the district court for certain *665 instructions, such as (see Footnote 7 below) whether Baton Rouge's participation in the trust had terminated in 1970 because of its failure to make contributions.

The application was made pursuant to a provision of the Louisiana Trust Code of 1964, La.R.S. 9:1721-9:2252. The provision authorizes a trustee to apply to the court "for instructions concerning the trust instrument, the interpretation of the instrument, or the administration of the trust." La.R.S. 9:2233 (quoted in full in Footnote 3 below). Subsection A of the provision authorizes adversary proceedings, by which a trustee is fully protected from subsequent claims; subsection B (that presently utilized) authorizes ex parte proceedings, which will protect a third party relying on the order, but which does not exonerate the trustee from liability to a settlor or beneficiary.

Unconstitutionality or not of 2233 B

On its own motion, the conscientious district court held Section 2233, subd. B, unconstitutional as requiring it to render ex parte advisory opinions in violations of Articles II and VII of the Louisiana Constitution of 1921. In so doing, our learned trial brother relied upon Abbott v. Parker, 259 La. 279, 249 So.2d 908 (1971), Petition of Sewerage & Water Board of New Orleans, 248 La. 169, 177 So.2d 276 (1965), and State v. Board of Supervisors, 228 La. 951, 84 So.2d 597 (1955).

These decisions concern whether a "justiciable controversy" existed for purposes of permitting relief under the declaratory judgments procedure, La.C.Civ.P. arts. 1871-1883. For purposes of that act, a justiciable controversy requires a true interest of the plaintiff (i. e., "standing") and the defendant in having the issue resolved, as well as an adversity of interest between them. Louisiana Independent Auto Dealers Assn. v. State, 295 So.2d 796 (La.1974) (rendered April 29, 1974). The holding of these decisions is only that, in the absence of these requirements, the relief authorized by the declaratory judgments statute is not available to an applicant. The decisions are thus not authority for holding the present statute, La.R.S. 9:2233, unconstitutional.[1]

A general principle of judicial interpretation of a state constitution is that, unlike the federal constitution, a state charter's provisions are not grants of power, they are rather limitations on the power of the people exercised through the state legislature. In its exercise of the entire legislative power of the state, the legislature may enact any legislation that the state constitution does not prohibit. Thus, to hold legislation invalid under the state constitution, it is necessary to rely upon some particular constitutional provision that limits the power of the legislature to enact the statute assailed.

See, e. g.: Kane v. Louisiana Commission on Governmental Ethics, 250 La. 855, 199 So.2d 900 (1967); State v. Guidry, 247 La. 631, 173 So.2d 192 (1965); State v. Macaluso, 235 La. 1019, 106' So.2d 455 (1958); State ex rel. Labauve v. Michel, 121 La. 374, 46 So. 430 (1908); and the many other decisions cited in these opinions.

The present statute authorizes the trustee to apply to a district court of appropriate venue for instructions as to doubtful legal questions arising in connection with the trust instrument and its interpretation and administration. We find no authority *666 that such is not a judicial function, whatever discretion (see below) the court may have in its exercise or whether to exercise it. Nor can we find authority holding that performance of the judicial function necessarily requires an adversary proceeding.[2]

We find nothing in the constitutional articles cited that restrict the power of the legislature to enact the statute now attacked. Article II provides for the distribution of governmental powers into the legislative, executive, and judicial branches. Article VII provides for the exercise of the judicial power by the judicial branch. Section 35 thereof provides that district courts "shall have original jurisdiction in all civil matters regardless of the amount in dispute... and in all cases where no specific amount is in contest, except as may be otherwise provided in this Constitution." See Section 81 for similar provision with regard to the civil district court in Orleans Parish. Section 3 thereof provides that "No function shall ever be attached to any court of record, or to the judges thereof, except such as are judicial * * *."

None of these provisions, nor any other we can find in our state constitution, prohibit the legislature from vesting jurisdiction in the district courts to make judicial interpretations on the application of trustees, concerning the legal interpretation or application of the trust instruments under which they operate, or that requires such trustee-instruction proceedings to be adversary in character. Under the principles of constitutional interpretation earlier set forth, we are therefore unable to find unconstitutional the present statute.

Trustee-Instruction Proceedings

Nevertheless, we do not feel to be unwarranted the concern of the trial court in being asked, on ex parte application, to issue instructions relating to the interpretation or application of trust provisions. Since the present is a case of first appellate impression on the issue in this state, we deem it appropriate to set forth by way of background some of the purposes for, and limitations upon, the utilization of the trustee-instruction proceedings authorized by the statute at issue.

As earlier noted, Section 2233 of the Louisiana Trust Code of 1964 (La.R.S. 9:2233) authorizes a trustee to apply to a district court of appropriate venue for instructions "concerning the trust instrument, the interpretation of the instrument, or the administration of the trust."[3] Subsection A was intended to provide for adversary proceedings which fully protect the trustee from subsequent claims against him based upon the action, as provided by our previous trust statutes.[4]

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Bluebook (online)
297 So. 2d 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-gulf-oxygen-welders-sup-prof-shar-p-ta-la-1974.