Lafourche Parish Water Dist. v. Carl Heck Engrs.

346 So. 2d 769, 1977 La. App. LEXIS 4566
CourtLouisiana Court of Appeal
DecidedMay 9, 1977
Docket11309
StatusPublished
Cited by40 cases

This text of 346 So. 2d 769 (Lafourche Parish Water Dist. v. Carl Heck Engrs.) 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
Lafourche Parish Water Dist. v. Carl Heck Engrs., 346 So. 2d 769, 1977 La. App. LEXIS 4566 (La. Ct. App. 1977).

Opinion

346 So.2d 769 (1977)

LAFOURCHE PARISH WATER DISTRICT NO. 1
v.
CARL HECK ENGINEERS, INC.

No. 11309.

Court of Appeal of Louisiana, First Circuit.

May 9, 1977.

*772 Randolph H. Parro, Block, Block & Parro, Thibodaux, for plaintiff and appellant.

Philip J. McMahon, and Jerry H. Schwab, Houma, for defendant and appellee.

Before LANDRY, EDWARDS and COLE, JJ.

COLE, Judge.

The plaintiff-appellant, Lafourche Parish Water District No. 1, filed a suit for a declaratory judgment against the defendant-appellee, Carl Heck Engineers, Inc., seeking to have a contract with the defendant declared null and void. In the alternative, the plaintiff sought to have the contract declared non-exclusive. The plaintiff appeals the judgment of the trial court which upheld the validity of the contract and also found the contract to be exclusive.

Various enumerated grounds were urged by the plaintiff to support its position that the contract was invalid. Each ground alleged was individually discussed and disposed of by the trial court, as was the alternative contention that the contract was non-exclusive, in its meticulously written reasons quoted in substantial part below:

"It might be well to set out here a brief summary of the events leading to the filing of this suit. The Lafourche Parish Water District Number One is governed by an eleven man Board of Commissioners, as authorized by the provisions of R.S. 33:3812(C). On July 7th, 1975, at a special meeting this Board, by a vote of six (6) to five (5), authorized the signing of a contract with defendant, Carl Heck Engineers, Inc., wherein defendant would provide the necessary professional engineering services in connection with the planning, design, and construction of all public improvements required by plaintiff and specifically authorized by plaintiff. The contract was for a term of five (5) years from date and would be deemed renewed on a year to year basis unless either party elected to terminate the renewed contract by giving written notice to the other party three (3) months prior to the expiration date of the current contract period.

"Apparently the Lafourche Parish Police Jury, the governing authority which appointed *773 the Board of Commissioners, was unhappy with this action of the Board for it expressed its displeasure almost immediately on July 9, 1975, removed Commissioner Terry Ordoyne, one of the six who voted for the contract and replaced him with a member of the Police Jury, W. H. `Bill' Trosclair. On July 12, 1975, the Water District Board was again convened and at this meeting the former minority, now the majority, passed a resolution of the Board by a six (6) to five (5) vote to seek the cancellation of the contract with defendant which had been authorized and accepted on July 7, 1975.

"The case for the plaintiff was presented over a two day period and when the plaintiff rested, the defendant rested without calling any witnesses. Inasmuch as the defendant had exercised its option to conduct a direct examination of two witnesses called by plaintiff under cross-examination, the Court permitted rebuttal testimony to be presented in connection with the direct examination defendant had made of these two witnesses. The matter was submitted to the Court on briefs, and at the suggestion of the Court the briefs were segmented so that each allegation of nullity would be treated separately, and since that method made for greater clarity in reviewing the respective arguments and the authorities cited by counsel, the Court will adopt the same procedure in presenting these written Reasons for Judgment.

"1. THE MOTION AUTHORIZING THE PRESIDENT OF THE WATER DISTRICT TO SIGN THE CONTRACT WAS INVALID, SINCE IT WAS IMPROPERLY PRESENTED AT A SPECIAL MEETING WHEREIN THE CALL FOR THE MEETING DID NOT REASONABLY NOTIFY THE COMMISSIONERS THAT THIS CONTRACT WOULD BE BROUGHT UP FOR A VOTE.

"There is no question concerning the fact that the meeting of July 7, 1975, was a special meeting. It is also true that the Call for the meeting sent out over the President's signature on July 2, 1975, did not specifically list as one of the purposes of the meeting that the Heck contract would be brought to the floor for a vote. Four matters were listed in this Call, the fourth of which was `4. Any other business to legally come before the Board.'

"It is plaintiff's contention that while there are no specific statutory provisions relating to the call of special meetings of water districts, a jurisprudential rule has evolved that action taken at special meetings is null and void if general corporate provisions are not followed. Many cases are cited both from Louisiana and from other jurisdictions in support of this position. Admitting that there are no cases precisely in point, plaintiff cites R.S. 12:73(D) requiring the notice of shareholders' meeting to state `purpose' of meeting and that it must be given at least ten days prior to meeting, but if this statutory provision can be extended to meetings of water district boards, we cannot take this one section out of context but should consider the entire subsection referred to. Further in R.S. 12:73(D) we find `. . . and such shall be deemed to have been given to, or waived by, all shareholders present or represented at any such meeting, except any shareholder who, at the beginning of the meeting, objects to the transaction of any business because the meeting is not lawfully called or convened. . ..'

"It would appear, therefore, that even if the notice required to be sent for shareholders' meetings applied to meetings of the Water District Board of Commissioners, the lack of proper notice (if the notice which issued was deficient) was waived since no one objected to voting when the vote was called or to holding the meeting because of lack of proper notice.

"Cases cited by plaintiff, Jones v. Shreveport Lodge No. 122, [221 La. 968], 60 So.2d 889 [1952]; Blum v. Latter, 163 So.2d 189 [La.App. 4th Cir. 1964]; and Phillips v. Newland, 166 So.2d 357 [La.App. 3rd Cir. 1964], which were cited in support of plaintiff's argument that the Louisiana cases have generally held that action taken at *774 special meetings is null and void if general corporate provisions are not followed, can be distinguished. The charters of these private corporations were silent as to requirements for calling special meetings of stockholders so the court applied general corporate provisions, but Exhibit D-4, filed in evidence in this suit, the By-Laws of the Water District, provided for the calling of special meetings and did not require that the purpose be stated. Further, as the Court recalls the testimony, the Board members testified that this was not the first occasion on which matters not specifically set out in a Call were discussed or voted on at a special meeting. The specific language of the By-Laws of the Water District regarding its provision for special meetings is found in Section 3 of Article 2, and it states:

"Special meetings of the board may be called by the President, Vice-President, or Secretary-Treasurer on three days notice either personal or written by mail or telegram to each member; however, notice may be waived by a two-thirds vote of the whole board. Special meetings shall be called by the President or Secretary in like manner and on like notice of the written request of two board members.'

It would appear that the Board, in formulating its By-Laws did not feel that there was a necessity to state the precise purpose of the Call of a special meeting.

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Lafourche Parish Water District No. One v. Carl Heck Engineers, Inc.
349 So. 2d 873 (Supreme Court of Louisiana, 1977)

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Bluebook (online)
346 So. 2d 769, 1977 La. App. LEXIS 4566, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafourche-parish-water-dist-v-carl-heck-engrs-lactapp-1977.