John E. Ballenger Const. Co. v. State Board of Adjustment

175 So. 387, 234 Ala. 377, 1937 Ala. LEXIS 273
CourtSupreme Court of Alabama
DecidedJune 17, 1937
Docket3 Div. 215.
StatusPublished
Cited by29 cases

This text of 175 So. 387 (John E. Ballenger Const. Co. v. State Board of Adjustment) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
John E. Ballenger Const. Co. v. State Board of Adjustment, 175 So. 387, 234 Ala. 377, 1937 Ala. LEXIS 273 (Ala. 1937).

Opinion

*379 FOSTER, Justice.

Appellant filed a petition in the circuit court for mandamus against the members of the State Board of Adjustment, in which it sought to require the board to hear and consider a claim which it asserted for damages, which are alleged to have resulted from a refusal on the part of the State Highway Department to perform its contract for paving in a way and manner in which it had the right under its contract with that state agency. The contract with the state stipulated that the decision of the State Highway Commission upon any question connected wth the execution of the contract shall be final and conclusive.

The claim was presented to the State Highway Commission on June 3, 1935, and was heard by said commission, and on September 19, 1935, it allowed it in part and denied the remainder, but would not cause to be paid that part which was allowed unless it would be received in full settlement. This, appellant refused to do.

On April 11, 1936, appellant filed its petition with the State Board of Adjustment praying that it hear the merits of its claim and adjudge that it is entitled to be paid the full amount of it. The Highway Commission moved the board to dismiss the claim for a want of jurisdiction to hear and determine it. The board ■concluded that it had no jurisdiction, and dismissed the petition without a hearing ■on the merits. Wherefore appellant filed this petition in the circuit court-to-compel the board to take jurisdiction and pass on it.

The board filed demurrer. The state intervened by the Attorney General, and demurred also. The demurrers seem to present substantially the same legal questions. The court sustained the demurrer, and petitioner declining to plead further a judgment was rendered for respondents, and petitioner has appealed to this court.

By act approved September 14, 1935 (Gen.Acts 1935, p. 1164) the State Board of Adjustment was created and upon it was conferred the power and duty to hear and consider all claims for damages done by any agencies of the state or its commissions or boards. The claims included damages to person or property, and referred to those which had previously occurred without time limit. State Board of Adjustment v. State ex rel. Sossaman, 231 Ala. 520, 165 So. 761. It also in terms embraced claims against the state arising out of contracts with it or its agencies and commissions, but with a proviso that it should not have jurisdiction to settle any matter or claim of which the courts have jurisdiction.

On March 1, 1937, the Governor signed an act which amended section 2 of the original act. (Gen. Acts 1936-37, Ex. Sess., p. 205). In so far as the amendment affects the question we are considering, it provides that the board shall have no jurisdiction over claims growing out of contracts with any state agency, commission, or board where by contract said agency, commission, or board is made the final arbiter of any disagreement growing out of the contract with such agency, commission, or board, and particularly the Board of Adjustment shall have no jurisdiction of disagreements arising out of contracts made by the State Highway Department. The amendment became operative after the rendition of the judgment from which this appeal was taken, and also after the appeal was taken.

We learn from the brief of the Attorney General that his contentions, which were sustained by the board and the trial court, were that (1) appellant had an adequate remedy at law by mandamus against the Highway Commission, and that, therefore, the courts of the state had jurisdiction of appellant’s claim, so that under the proviso, as first enacted, the board had no jurisdiction; and that (2) by the contract the decision of the Highway Commission was made conclusive between the parties; and that (3) the act shows a manifest intent not to substitute the decision of the Board of Adjustment for that of the Highway Commission as to questions arising out of highway construction (and which has now been expressly written into the act).

Another question is that if appellant was entitled to a hearing under the act before it was amended, has the amendment cut it off under the protection of section 95 of the Constitution?

The fundamental power of the Board of Adjustment conferred by the act is predicated upon the right of the Legislature to confer upon an administrative commission or board the authority for it to act in respect to details not convenient to be done by the Legislature in session. The cases are cited in 4 Alabama Digest, Constitutional Law, 719, 62 and 72, *380 <&=5 63 (1), (2) and (3). If it be conceived that the act attempted to create any sort of agency or court with the power to render judgment which would fix a liability against the state, it would violate section 14, Constitution.

This does not conflict with the power of a court to require an officer to perform a clear legal duty even though it is to pay money of the state required by law to be paid. The Board of Adjustment is not in the nature of a court with power to settle unliquidated disputes between citizens and the state as to whether the state must discharge its obligations as a citizen is required by the courts to do. But the Legislature recognizes that certain circumstances justly call for an appropriation to satisfy moral and legal duties which ought to be met by legislative enactment, since money of the state can only be paid by legislative appropriation. Section 72, Constitution. Certain appropriations are made to meet those obligations. The Legislature has specified, as it must, the nature of claims which are to be paid out of the appropriations and set up the Board of Adjustment to ascertain the persons who are included in the appropriations, the nature of their 'claims, and their amount. When this is done, the status of a claimant is as though the Legislature had passed an act appropriating that amount to be paid him out of the treasury. As long as that appropriation remains unrepealed, there is a legal duty imposed upon executive officers to pay it out of moneys in the treasury subject to its payment. But it does not become a debt of the state, and cannot be so. Section 213, Constitution, as amended Const. 1901, Amend, art. 23 (see Gen.Acts 1933, Ex.Sess., p. 196); Hall v. Blan, 227 Ala. 64, 148 So. 601(13), (14). Until the appropriation is paid it is subject to repeal. Medical College of Alabama v. Muldon, 46 Ala. 603. No authority can prevent the Legislature from effectually repealing it.

So, the Legislature can repeal the whole appropriation out of which claims may be paid as allowed by the Board of Adjustment, and no one could gainsay that right, even though the board had found that appellant’s claim was one of those designated for payment, and that it was true and just. If those powers are within legislative competency what would deny the right of the Legislature to reclassify claimants to be paid out of the appropria-i tion, and to exclude some of them even after the claim has accrued, and the claimant has begun proceedings before the board to have his claim fixed and determined ?

Section 95, Constitution, is thought to be an answer in that it provides that, after a suit has been commenced, the Legislature shall have no power to take away the cause of action on which it is founded. But in Ex parte State, 52 Ala. 231, 23 Am.Rep.

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Bluebook (online)
175 So. 387, 234 Ala. 377, 1937 Ala. LEXIS 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-e-ballenger-const-co-v-state-board-of-adjustment-ala-1937.