Newman Marchive Partnership, Inc. v. City of Shreveport

979 So. 2d 1262, 2008 La. LEXIS 793, 2008 WL 928426
CourtSupreme Court of Louisiana
DecidedApril 8, 2008
Docket07-C-1890
StatusPublished
Cited by27 cases

This text of 979 So. 2d 1262 (Newman Marchive Partnership, Inc. v. City of Shreveport) 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
Newman Marchive Partnership, Inc. v. City of Shreveport, 979 So. 2d 1262, 2008 La. LEXIS 793, 2008 WL 928426 (La. 2008).

Opinion

979 So.2d 1262 (2008)

The NEWMAN MARCHIVE PARTNERSHIP, INC.,
v.
CITY OF SHREVEPORT.

No. 07-C-1890.

Supreme Court of Louisiana.

April 8, 2008.

*1263 Weems, Schimpf, Gilsoul, Haines, Landry & Carmouche, Carey Thomas Schimpf, *1264 Kenneth Patrick Haines, Brian D. Landry, Shreveport, for Applicant.

Weiner, Weiss & Madison, Michael Allyn Stroud, John M. Madison, Jr., Shreveport, for Respondent.

Frank J. Gremillion and Edmond Wade Shows, for City of Baton Rouge and East Baton Rouge Parish Amicus Curiae.

Richard Lee McGimsey, Hon. James D. Caldwell, and Lindsey K. Hunter, for State of Louisiana Amicus Curiae.

CALOGERO, Chief Justice.

We granted certiorari in this case to decide whether the judicial branch may, through a writ of mandamus, compel a political subdivision of the state to pay a judgment rendered against it when that subdivision has appropriated funds to an account established to pay claims and judgments against the subdivision, but not for the payment of that specific judgment. Because we hold that LSA-R.S. 13:5109(B)(2) requires a specific appropriation or disbursement of funds to pay a particular judgment, we find that the funds found in this account were "public funds" until they were to be paid by the entity managing that account, and, until that time, were not subject to seizure under the clear language of our state constitution. Accordingly, we reverse the decision of the court of appeal.

Factual and Procedural History

The genesis of this matter is a separate action where The Newman Marchive Partnership, Inc. ("Newman") sued the City of Shreveport ("the City") for breach of contract relative to renovations to Independence Stadium in Shreveport. After the trial court awarded Newman $251,304.34, the Court of Appeal, Second Circuit, amended the judgment by increasing it to $263,674.10 together with legal interest from the date of judicial demand, February 11, 2002. Newman Marchive P'ship v. City of Shreveport, 40,512, p. 18 (La.App. 2 Cir. 2/24/06), 923 So.2d 852, 855, 862. This court denied the City's writ application. Newman Marchive P'ship v. City of Shreveport, XXXX-XXXX (La.6/23/06), 930 So.2d 983.

When the City failed to pay the judgment, Newman brought the instant litigation, filing a Petition for Writ of Mandamus on September 19, 2006 to compel the City through its chief executive officer, then Mayor Keith Hightower, to pay the judgment. The trial court issued an alternative writ of mandamus directing the City to pay the judgment with interest by September 22, 2006, or show cause on September 25, 2006, why the writ should not be made peremptory. On September 22, 2006, the City made an unconditional tender to Newman of the principal amount of the judgment, but it refused at the same time to pay the legal interest, which amounted to $70,301.66. The City also filed exceptions and an opposition to Newman's petition.

At the mandamus hearing, the trial court denied the City's exceptions, but nonetheless found that mandamus was not appropriate and entered judgment recalling the alternative writ of mandamus and dismissing Newman's petition. On appeal, a three-judge panel of the Second Circuit affirmed the trial court's ruling, holding it lacked constitutional or statutory authority to compel the City to pay the entire judgment. Newman Marchive P'ship v. City of Shreveport, 42,073, p. 6 (La.App. 2 Cir. 8/22/07), 962 So.2d 1075, 1078-79. However, on rehearing a five-judge panel reversed the trial court and ordered that a peremptory writ of mandamus issue, requiring the mayor of Shreveport to pay the remainder of the judgment (the unpaid interest) from city funds. Id. at pp. 8-9, 962 So.2d at 1084-85. A divided court *1265 reasoned that, because the City had appropriated up to $15 million to a "Retained Risk Fund" — a fund established specifically to pay legal settlements and judgments — mandamus was appropriate. Id. at pp. 4-5, 962 So.2d at 1082-83. From that judgment, the City applied to this court for a writ of certiorari, which was granted. Newman Marchive P'ship v. City of Shreveport, XXXX-XXXX (La.11/21/07), 967 So.2d 527.

Discussion

This case requires us to interpret Louisiana constitutional articles and statutes relative to the enforcement of money judgments against a political subdivision of the state. Because the proper interpretation of a statute is necessarily a question of law, we apply a de novo standard of review. See Holly & Smith Architects, Inc. v. St. Helena Congregate Facility, Inc., XXXX-XXXX, p. 9 (La.11/29/06), 943 So.2d 1037, 1045.

We begin our analysis by referring in part to the framework of our state government. Article II, section 1 of the Louisiana Constitution establishes three distinct branches of government: legislative, executive, and judicial. Section 2 of that article provides: "Except as otherwise provided by this constitution, no one of these branches, nor any person holding office in one of them, shall exercise power belonging to either of the others." La. Const. art. II, § 2. Thus, "[t]his trichotomous branching of authority furnishes the basis for the existence of an inherent judicial power which the legislative and executive branches cannot abridge." Hoag v. State, XXXX-XXXX, p. 4 (La.12/1/04), 889 So.2d 1019, 1022. Similarly, the judicial branch may not usurp those powers which are vested in the other two branches. Id.

The separation of powers is not always defined precisely, however. See id. at p. 8, 889 So.2d at 1024 ("Admittedly, there is some inevitable overlap of the functions"). Evidencing this is the clause at the beginning of article II, section 2 — "Except as otherwise provided by this constitution" — a clause which establishes that the constitution in a separate provision may have one branch encroaching on another.

The constitution allocates the judiciary some power over the other branches through article XII, section 10(A), where it waives the State's immunity in suits in contract and tort. See Jones v. City of Baton Rouge, 388 So.2d 737, 740 (La.1980).[1] Thus, the judicial branch is empowered to render judgments against the state. Hoag, XXXX-XXXX, pp. 4-5, 889 So.2d at 1022. However, the constitution does not provide the judiciary with the ability to execute those judgments. The constitution reserves that power to the legislature:

[The legislature] shall provide a procedure for suits against the state, a state agency, or a political subdivision and provide for the effect of a judgment, but no public property or public funds shall be subject to seizure. The legislature may provide that such limitations, procedures, and effects of judgments shall be applicable to existing as well as future claims. No judgment against the state, *1266 a state agency, or a political subdivision shall be exigible, payable or paid except from funds appropriated therefor by the legislature or by the political subdivision against which the judgment is rendered."

La. Const. art. XII, § 10(C) (emphasis added). The legislature largely parroted this language when it enacted LSA-R.S. 13:5109(B)(2):

Any judgment rendered in any suit filed against the state, a state agency, or a political subdivision,

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Bluebook (online)
979 So. 2d 1262, 2008 La. LEXIS 793, 2008 WL 928426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-marchive-partnership-inc-v-city-of-shreveport-la-2008.