Louisiana v. McIlhenny

9 So. 2d 467, 201 La. 78
Supreme Court of Louisiana·Decided June 29, 1942·No. No. 36441.·Published·Cited by 22 cases

Opinion

PONDER, Justice.

The Attorney General, having been instructed by the Governor, under authority of Act No. 73 of 1926, brought this suit in the name of the Louisiana State Board of Education, the State of Louisiana, and the Louisiana Crime 'Commission, created by Act No. 13 of 1940, against E. Á. Mcllhenny and Richard W. Leche, in solido, asking to have a certain contract entered into between E. A. Mcllhenny and the Louisiana State Board of Education declared null and void ab initio and to recover the sum of $27,351.01, previously paid E. A. Mcllhenny under the provisions of the contract, together with interest and costs. The plaintiffs filed a supplemental petition, asking for an attachment to issue against the property of the defendant Leche, sufficient to discharge and satisfy the claim, which was excepted to on various grounds.

The defendant Leche interposed the following exceptions to the petition: (1) Want of jurisdiction based on the ground that his domicile was in St. Tammany Parish and not in the Parish of Iberia where these proceedings were instituted; (2) lack of interest in plaintiffs to prosecute the action; (3) want or lack of capacity of the plaintiffs to prosecute the action and stand in judgment, especially want of capacity in the Attorney General to prosecute the action in the name of the State of Louisiana under authority of Act No. 73 of 1926, and the want of capacity of the Louisiana Crime Commission, sought to be created by Act No. 13 of 1940, to prosecute the action in the name of the State; and (4) misjoindert of parties plaintiffs. He also filed a plea attacking the constitutionality of Act No. 13 of 1940.

The defendant Mcllhenny filed the following exceptions: (1) Estoppel; (2) no right or cause of action; (3) lack of interest in the parties plaintiffs; (4) want of capacity of the parties plaintiffs; and (5) misjoinder of the parties plaintiffs. He also attacked the constitutionality of Act No. 13 of 1940.

It is alleged in the petition that the defendant Mcllhenny is a resident of Iberia Parish and the defendant Leche is a resident of St. Tammany Parish; that the defendants are justly and truly indebted to the petitioners in the full sums of $4,281.46, $14,829.71, and $8,239.84, with legal interest thereon until paid; that the defendants unknown to plaintiffs concocted and devised a scheme and conspiracy to defraud, obtain money and property by means of various and fraudulent pretenses, representations and promises from the State of Louisiana, the State Board of Education, and the taxpayers ' of the State, set out as follows: that the defendants were close personal friends; that Mcllhenny was engaged in the business of operating a nursery and Leche was’the Governor of the State; that Leche acting on behalf of himself and Mcllhenny did convene the Board of Liquida *83 tion of the State Debt, urging the need of additional funds in the building fund in the State Treasury for the maintenance and improvement of the educational and other institutions of the State, which fund is apportioned by the Governor; he would thereby obtain the action of the Board, transferring funds out of the general fund of the State into the State building fund, to be apportioned by Leche as Governor to various charitable and correctional institutions, in the sum of $48,236.56; and he would fraudulently withhold from the Board information as to his intention to allocate the sum for landscaping purposes at , Southwestern Louisiana Institute and Southeastern Louisiana College; that it was part of the scheme that Leche, on behalf of himself and Mcllhenny, would cause a representative to appear before the State Board of Education and urge upon the Board the importance of landscape work on the grounds of certain educational institutions, with the intent to defraud, persuade and influence the members of the Board to employ Mcllhenny to do the landscaping, furnish the necessary labor and material; that it was part of the scheme that Leche would create in the minds of the members of the Board the impression that such funds as he had in his power to make available for the landscaping work would not be available unless Mcllhenny was employed to do t*he work; that it was part of the scheme that the defendants would cause the State Planning Commission to circularize the heads of all of the various educational institutions, under the control of the Board of Education, informing them of the interest of Leche, the Governor, in landscaping the grounds of the institutions, of his desire that the work be made uniform throughout the State, and to that end, his desire that they cooperate in the employment of Mcllhenny; that it was part of the scheme that the impression be created in the minds of the heads of these institutions that their cooperation with the defendants in securing the services of Mcllhenny was necessary in order to obtain the allocations from Leche for their respective institutions for carrying out any landscaping program; that it was part of the scheme that these letters should be followed up by other letters from Mcllhenny, urging his employment and stating that it was the Governor’s thought that in order to get the best possible results from, the money to be expended and to have the landscape planting of the State done under a general plan, using plants especially adapted to the State, that it would be wise to have Mcllhenny’s organization do the work; that Mcllhenny when employed should not be bound by any rigid contract, requiring performance according to any exact terms or plans, but should be given unlimited latitude in the plans adopted, in the plants to be used, their size, number and spacing, and in the prices to be charged for them, thereby permitting gross overcharges for labor, engineering and supervision and permitting the substitution of plant material smaller in size than commonly used on such projects, of inferior grade and quality, at exorbitant prices, with resulting unconscionable profits to Mcllhenny and Leche; that in pursuance to this scheme, any contract entered into between Mcllhenny and the Board of Edu *85 cation or other educational institution should he entered into without advertising for competitive bids, without any definite plans, without bond, without definite contract prices, and without the requirement of supervision by any agent or representative of the Board or institution; that in pursuance of this scheme, Leche, acting for himself and Mcllhenny, convened the Board of Liquidation of the State Debt and fraudulently advocated the necessity of transferring $48,236.56 from the general fund to the building fund, concealing from the other members of the Board his intention to allocate this sum for landscaping work on the campuses of Southwestern Louisiana Institute and Southeastern Louisiana College; he secured the action of the Board in making the transfer for the fraudulent purpose of making funds, available for carrying out the scheme and furnished the funds out of which the defendants might cheat, wrong and defraud the State, the State Board of Education and the taxpayers; that thereafter, in pursuance of the scheme, Leche allocated $49,-546 to Southwestern Louisiana Institute, and $28,105 to Southeastern Louisiana College, and made presently • available for the works, $38,000 for Southwestern Louisiana Institute and $7,736.56 for Southeastern Louisiana College, for landscaping the grounds of these institutions; that Mcllhenny and Leche had the chairman of the Planning Commission to circularize the heads of the various State educational institutions under the control of the Board of Educ

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Louisiana v. McIlhenny, 9 So. 2d 467, 201 La. 78 (La. 1942).

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