Public Belt Railroad Commission v. Department of Highways

132 So. 2d 645, 1961 La. App. LEXIS 1316
CourtLouisiana Court of Appeal
DecidedJune 30, 1961
DocketNo. 5213
StatusPublished
Cited by1 cases

This text of 132 So. 2d 645 (Public Belt Railroad Commission v. Department of Highways) 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
Public Belt Railroad Commission v. Department of Highways, 132 So. 2d 645, 1961 La. App. LEXIS 1316 (La. Ct. App. 1961).

Opinion

JONES, Judge.

This is an action by the City of New Orleans acting through the Public Belt Railroad Commission for the City of New Orleans against the Department of Highways of the State of Louisiana. In order that a clear understanding of the issues may be had, it is necessary to recapitulate the facts giving rise to the instant law suit.

On November 5, 1932, a contract for the construction of the Huey P. Long Bridge over the Mississippi River at New Orleans, Louisiana, was entered into. This agreement, which for the sake of brevity we will hereinafter refer to as “bridge contract”, was entered into by and between: (1) The State of Louisiana acting through the State Advisory Board by authority of Act No. 3 of Extra Session of 1930, an amendment to the Constitution of the State of Louisiana; (2) The City of New Orleans, acting through the Public Belt Railroad Commission by authority of Act 154 of 1928, an amendment to the Constitution of the State of Louisiana; (3) Morgan’s Louisiana and Texas Railroad and Steamship Company; (4) Texas and New Orleans Railroad Company; and (5) Southern Pacific Company. Neither the Department of Highways, which was not then in existence, nor its predecessor, the late Louisiana Highway Commission, was a party to the Bridge Contract. Under the provisions of the bridge contract, the State of Louisiana agreed to contribute toward the construction of said bridge and approaches the sum of $7,000,000. In conformity with the provisions of the bridge contract, on December 30, 1932, an “indenture” was executed by the City of New Orleans in favor of the Hibernia Bank and Trust Company, as trustee, securing the “City of New Orleans Public Belt Railroad Bridge Revenue 5% Gold Bonds”. The State of Louisiana was not a party to the indenture, nor was the Department of Highways or its predecessor, the Louisiana Plighway Commission.

Under the provisions of the bridge contract, the bridge to be constructed was a combination bridge planned for both rail and highway service, the railroad section thereof to provide a double track line over the bridge and the approaches thereto. The contract further provides that:

“All expenditures for maintenance and repair directly applicable to the railroad section of said bridge and approaches shall be borne by ‘Public Belt’, and all expenditures for maintenance and repair directly applicable to the highway section of said bridge and approaches shall be borne by ‘State’ as a part of its Highway System. It shall be the joint duty of ‘State’ and ‘Public Belt’ to maintain and keep in repair all those portions of said bridge and approaches not coming within the foregoing definitions of highway section and railroad section respectively, such maintenance and repair to be at all times accomplished by ‘State’ and ‘Public Belt’ in an efficient and economical manner, ‘State’ to assume and pay forty per cent. (40%) of such maintenance and repair and ‘Public Belt’ sixty per cent. (60%) thereof.”

The bridge contract, which was executed in 1932, was, of necessity, entered into before the construction of the bridge.

It appears from the record that in about 1936, the State of Louisiana and the City of New Orleans decided that it would be better and more economical for one of them to do all of the maintenance and repair of the bridge, rather than handling the matter jointly. Accordingly, on July 1, 1936, [647]*647another contract, designated as the “joint maintenance contract”, was entered into. The parties to the contract are: (1) The State of Louisiana, acting through the State Advisory Board; (2) The City of New Orleans, acting by and through the Public Belt Railroad Commission for the City of New Orleans; and the Louisiana Highway Commission, which was the predecessor of the Department of Highways. The joint maintenance contract provides that the City of New Orleans, through its Public Belt Railroad Commission, shall perform all maintenance and repair on the bridge and that the State, through the Louisiana Highway Commission, shall pay to the Public Belt Railroad Commission in equal monthly installments, so long as the agreement remained in effect, the sum of $28,045 per annum, “which payment shall be in lieu of any amount payable by the State pursuant to the Bridge Contract for the maintenance and keeping in repair of any part of the bridge and for any insurance on the bridge”.

The contract further provides as follows:

“3. It is recognized by the parties hereto that the amount to be paid by the Highway Commission pursuant to Section 2 of this agreement was arrived at by estimates which may prove to be too high or too low. Accordingly, the right is reserved to any party hereto at any time to seek an amicable agreement with the other parties for reducing or increasing, as the case may be, the monthly amount paid by the Highway Commission. If such agreement results in a reduction of the amount payable by the Highway Commission, there shall be no refund by the Public Belt but the amount to be paid by the Highway Commission in the future shall be adjusted in such fashion as to take into consideration the amount which the Highway Commission may have overpaid in the past; similarly if such agreement results in increasing the amount paid by the Highway Commission, there shall be no lump sum payment by the Highway Commission for the past period, but the amount to be paid by the Highway Commission in the future shall be adjusted in such fashion as to take into consideration the amount which the Highway Commission may have underpaid in the past.
“4. If at any time any party hereto desires, whether because of dissatisfaction with the amount which the Highway Commission is obligated to pay, or because the parties are unable to arrive at an amicable agreement as set forth in Section 3 thereof, or for any other reason, to terminate this contract, such party may terminate this contract at any time effective at the end of any calendar month, provided, however, that in order to terminate this agreement the party desiring to terminate the same shall give written notice to the other parties specifying the end of the month on which termination is to be effective, which notice must be given at least sixty (60) days prior to the time on which termination is to be effective.
“5. Upon the termination of this agreement as provided in Section 4 hereof, the parties hereto shall revert to their respective rights and obligations under the Bridge Contract as if this agreement had never been entered into. Pending such termination, this agreement is intended to supplant, as herein-above set forth, the provisions of the Bridge Contract with respect to the maintenance and keeping in repair of the Bridge and the contribution by the State of the cost of such maintenance and keeping in repair, as well as the cost of insurance.”

As will be noted in Section 3, the parties recognized that the sum agreed upon in the maintenance contract was an estimated figure; therefore, the contract provided for a method of adjustment if the annual [648]*648payment based on experience proved to be either too low or too high.

On August 13, 1936, the State Highway Engineer for the Louisiana Highway Commission, by letter to the Secretary-Treasurer of the Public Belt Railroad, suggested that the annual maintenance cost should be revised. Again on September 13, 1939, the State Highway Engineer wrote the Public Belt Railroad Commission and suggested that there be an accounting in connection with the apportionment of the maintenance cost on the Pluey P. Long Bridge.

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Bluebook (online)
132 So. 2d 645, 1961 La. App. LEXIS 1316, Counsel Stack Legal Research, https://law.counselstack.com/opinion/public-belt-railroad-commission-v-department-of-highways-lactapp-1961.