Neighborhood Action Committee v. State

652 So. 2d 693, 1995 WL 124645
CourtLouisiana Court of Appeal
DecidedMarch 3, 1995
Docket94 CA 0807
StatusPublished
Cited by4 cases

This text of 652 So. 2d 693 (Neighborhood Action Committee v. State) 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
Neighborhood Action Committee v. State, 652 So. 2d 693, 1995 WL 124645 (La. Ct. App. 1995).

Opinion

652 So.2d 693 (1995)

The NEIGHBORHOOD ACTION COMMITTEE and Kevin Smith
v.
STATE of Louisiana and The City of Kenner.

No. 94 CA 0807.

Court of Appeal of Louisiana, First Circuit.

March 3, 1995.

*694 Timothy W. Cerniglia, New Orleans, for plaintiffs-appellants The Neighborhood Action Committee and Kevin Smith.

Robert H. Carpenter, Jr., Baton Rouge, for defendant-appellee State.

Michael J. Power, Kenner, for defendantappellee City of Kenner.

Before FOIL, WHIPPLE and KUHN, JJ.

KUHN, Judge.

This appeal is taken from the trial court's action in sustaining peremptory exceptions of no cause of action and no right of action which dismissed the petition seeking specific performance of a state lease and related injunctive relief. We affirm.

FACTS

Defendants-appellees, the State of Louisiana ("State") and the City of Kenner ("City"), entered into State Lease Number 1298 ("Lease 1298") for a term of twenty-five years in 1981. Lease 1298 obligated the City to develop a public recreational facility on a plot of state-owned waterbottoms at the foot of Williams Boulevard on Lake Ponchartrain.

In 1993, the Kenner City Council approved a lease agreement between the City and Treasure Chest Casino, L.L.C. ("Treasure Chest"), which permitted the operation of a riverboat at a Mississippi River site in Kenner. The lease allows Treasure Chest to *695 relocate its vessel to property owned by or in the control of the City. After the Mississippi River site was declared unsafe for riverboat gaming operations by the United States Coast Guard and the Army Corps of Engineers, the premises of Lease 1298 were proposed as an alternative site. The Kenner City Council approved a resolution authorizing an amendment to Lease 1298 to facilitate the relocation of the riverboat gaming operation to the leased premises on Lake Ponchartrain at the Williams Boulevard site.

In response, the petitioners-appellants, the Neighborhood Action Committee ("NAC"), a Jefferson Parish non-profit corporation consisting of residents of the City, and Kevin Smith, a domiciliary of the City, filed a petition which seeks the specific performance of Lease 1298. Additionally, the petition requests injunctions prohibiting the defendants from amending Lease 1298 to allow for the establishment of riverboat gaming on any portion of the leased premises, and from using any portion within or near the leased premises for a riverboat gaming operation.[1]

The defendants filed peremptory exceptions of no right of action and no cause of action which the trial court sustained. A judgment dismissing appellants' lawsuit was rendered on December 28, 1993. From this judgment, NAC appeals.

ANALYSIS

The sole issue for consideration is whether the appellants have the right to demand specific performance of Lease 1298 or to enjoin the State and the City from amending Lease 1298. The appellants assert the existence of such a right under several theories.

The first contention the appellants raise is a claim of the status of third party beneficiaries to Lease 1298. La.Civ.Code art. 1978 provides:

A contracting party may stipulate a benefit for a third person called a third party beneficiary.
Once the third party has manifested his intention to avail himself of the benefit, the parties may not dissolve the contract by mutual consent without the beneficiary's agreement.

The stipulation, known as a stipulation pour autrui, "gives the third party beneficiary the right to demand performance from the promisor[,]" under La.Civ.Code art. 1981. Appellants contend that Lease 1298 evidences an intent by the State and the City to confer third party beneficiary status on each member of NAC individually in the following provisions:

This lease is made for and in consideration of the benefits, uses and advantages that the citizens in the State of Louisiana will gain by the development of this public recreational area.
The property herein leased shall be used as a public recreation area and all of its facilities shall be accessible to the publicat-large.

Relying on Allen & Currey Mfg. Co. v. Shreveport Waterworks Co., 113 La. 1091, 37 So. 980 (1905), the trial court found that the City, in becoming a party to Lease 1298, intended to do no more than to discharge its governmental function of providing adequate recreational lands/facilities to its inhabitants and concluded that no true stipulation pour autrui existed in favor of the petitioners.

In Allen the court considered whether a contract to keep fire hydrants in good working order between Shreveport Waterworks and the City of Shreveport conferred a stipulation pour autrui in favor of the plaintiff whose plant had been destroyed by fire. The Allen court stated,

[t]he contracts of [a] city ... are entered into for the public benefit ... but these contracts are not stipulations pour autrui in favor of the inhabitants individually ... [A] municipal corporation is nothing more than a fictitious being created for the purpose of administering the affairs of the public, and necessarily all its contracts are for `the public benefit'; but it does not *696 follow that they are all stipulations pour autrui in favor of the inhabitants individually, and that the latter may bring suit thereon.

Allen v. Currey Mfg. Co., 37 So. at 986. In dismissing the plaintiff's lawsuit, the Louisiana Supreme Court concluded that no cause of action in contract had been alleged and that the contract between the City of Shreveport and the defendant did not contain a stipulation pour autrui.

The reasoning in Allen applies with equal force to the instant case. Although by the terms of the agreement, the State and the City agreed that the leased property "shall be used as a public recreation area and all of its facilities shall be accessible to the public at large," the duty to carry out the contract did not extend to anyone other than the parties to the contract. Any benefit appellants expected to, or did, receive from Lease 1298 was merely an incident of the agreement between the State and the City. See Burdis v. Lafourche Parish Police Jury, 542 So.2d 117 (La.App. 1st Cir.1989). To hold otherwise would stop governmental action and bring municipal governance to a standstill. No theory of law or republican government supports the approach taken by the appellants. Accordingly, we find that the appellants are not third party beneficiaries to Lease 1298.

Appellants' next argument in support of their contention that they have the requisite "standing" to demand specific performance of Lease 1298 relies on La.Civ.Code art. 458, which states, in pertinent part:

Works built without lawful permit on public things, including the sea, the seashore, and the bottom of natural navigable waters, or on the banks of navigable rivers, that obstruct the public use may be removed at the expense of the persons who built or own them at the instance of the public authorities, or of any person residing in the state.

Essentially, the appellants assert that the language of La.Civ.Code art.

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953 So. 2d 968 (Louisiana Court of Appeal, 2007)
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Bluebook (online)
652 So. 2d 693, 1995 WL 124645, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neighborhood-action-committee-v-state-lactapp-1995.