Red River Valley Bank & Trust Co. v. Louisiana Petrolithic Const. Co.

77 So. 763, 142 La. 838, 1918 La. LEXIS 1441
CourtSupreme Court of Louisiana
DecidedJanuary 3, 1918
DocketNo. 21951
StatusPublished
Cited by5 cases

This text of 77 So. 763 (Red River Valley Bank & Trust Co. v. Louisiana Petrolithic Const. Co.) 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
Red River Valley Bank & Trust Co. v. Louisiana Petrolithic Const. Co., 77 So. 763, 142 La. 838, 1918 La. LEXIS 1441 (La. 1918).

Opinions

Statement of the Case.

MONROE, C. J.

This is an ordinary action, unaccompanied by any seizure, in which plaintiff annexed to and made part of its petition interrogatories on facts and articles addressed to the parish of Caddo, to be answered by the president of the police. jury, for the recovery of money alleged to have, been advanced to the defendant named in the caption to enable it to execute a contract with the parish of Caddo for the building of a public road in and for that parish; the parties made defendants being the contracting company, the parish of Caddo, and the surety on a bond taken by the parish from the contracting company. Exceptions of no cause of action were filed on behalf of the company and the parish, and that filed on behalf of the parish was maintained by a judgment reading, in part, “that the exception of no cause or right of action, filed herein by the police jury of Caddo parish, one of the defendants herein, be sustained, and that plaintiff’s suit be dismissed, so far as the police jury of Caddo parish is concerned, at the cost of plaintiff herein,” from which judgment plaintiff has appealed.

The allegations of the petition which are pertinent to the issue here presented are as follows (stating them in substance, or verbatim as may appeal-best), to wit:

That the construction company entered into a written contract with the police jury (representing the parish) to build a certain public road, and found it necessary to obtain money wherewith to carry on the work; that petitioner advanced such money in amounts aggregating over $12,000, for which it received the company’s demand notes, and of which $1,799.96 were repaid and $800 were not used for the work in question.
“That, for the better protection of petitioner in making said advances and furnishing said money, said * * * company made to petitioner an assignment and transfer of its right, title, and interest in said road contract to the extent of $6,000, which is * * * evidenced by a communication * * * addressed to the police jury * * * by the * * * company, * * * and in it the police jury * * * were informed that the * * * company had been advanced by your petitioner the sum of $8,000, which had been used by the company to meet its pay rolls under its contract, * * * and that, in order to secure the bank for said amount, the company had assigned and transferred to petitioner all its right, title, interest, and equity in said contract; that said communication further stated that ‘this assignment and transfer means that, from and after this date, the said bank is to be paid the amount due me on monthly estimates, under my said contract, over and above any claim or claims which may be filed with you, or notified to you, after the date of this assignment and transfer;’ and the police jury -was asked to enter up on its records and take notice of the assignment, and to govern themselves accordingly; that the said communication was served upon the police jury and received by the president and road engineer on the day of its date, and at the same time formal notice was served upon said parties by the attorney for the bank; * * * that the police jury ignored said assignment, and failed and refused to pay over to the bank any of the funds due, and thereafter to become due, under its said contract; * * * that the * * ' * law * * * required the police jury, in executing said contract with said company, to exact from the latter a bond with good and sufficient surety to secure the payment of the claims of those who should furnish labor, materials, supplies, money, etc., needed and used in the prosecution of the work of the contract; that petitioner is advised, and being so advised, charges that the police jury failed to exact such [841]*841a boncl, in the particular mentioned, as the statute provides for, and that such failure renders the parish of Caddo personally, or as a political corporation, liable to petitioner for the said sums hereinbefore set forth, * * * with 8 per cent, interest; * * * that said company, so petitioner is informed and believes * * * has gone to pieces, is no longer a going concern, has ceased to maintain an office, * * * has :no assets or property, owes large debts, and is insolvent ; that ' * * said police jury did take and accept from said company a bond in the sum of $20,500, with the South Western Surety Insurance Company of Oklahoma, * * * as surety. As heretofore stated, petitioner has been advised, and, on such advice, has charged that the police jtíry failed to exact such a bond , as meets the requirements of the law, but, in the alternative, if it (petitioner) be mistaken in this and the bond exacted as aforesaid is held to be sufficient in law to secure payment of those who furnished labor, paid labor bills, supplied materials, money, etc., in the prosecution of the work of the contract, including petitioner, then petitioner alleges that it is entitled to judgment in solido, against the principal^ and surety on said bond, for the amount of its said claims, with interest as aforesaid; that the parish of Caddo is indebted to petitioner in the amount of $6,000, for which the assignment hereinbefore set forth was given, because said parish, acting through its police jury, ignored the said assignment and failed to pay the amount due petitioner thereunder, and which amount. said assignment was intended to secure; and the said parish is indebted to petitioner in the full and aggregate amount of the several notes mentioned in article 111 of this petition, less the credits on said notes, and less the $800 referred to in said article as not having been used in road construction, because said parish failed to exact and take from the contractor the bond required by law for the protection of those who aided the contractor, by; labor, material, money, etc., in the prosecution of the work of the contract; that at the time said assignment was served on the parish, there was sufficient balance of the contract price, still unexpended, to meet petitioner’s said claim, which balance was thereafter paid out by said parish to the detriment of petitioner’s rights under said assignment ; that, instead of paying the then creditors of the contractor * * * out of the funds still to the credit of the contract price at the time the assignment was made to petitioner and at the time the parish, or the bond company, took over the completion of the road, and then in ease of shortage of funds calling on the bond company to make up the deficiency, they (the police jury and its representatives) took all the fund and paid it out in defiance of the rights of said creditors, not calling on the bond company for anything. Petitioner charges that this was done pursuant to an arrangement of their own between the bond company and the police jury and its road engineer, which arrangement was made after the company had fallen down on its road contract, and that in this way preference was given by the parish to the bond company, while creditors of, the contractor were left with the ‘bag to hold’; that petitioner is entitled, because of its said assignment, to payment by preference over all those whose claims aróse subsequent to the date of said assignment, but that, notwithstanding, the parish and the bond company paid the funds out to others, thereby refusing to recognize petitioner’s superior rights.”

The interrogatories annexed to and made part of the petition add nothing to the matter to be here considered.

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Bluebook (online)
77 So. 763, 142 La. 838, 1918 La. LEXIS 1441, Counsel Stack Legal Research, https://law.counselstack.com/opinion/red-river-valley-bank-trust-co-v-louisiana-petrolithic-const-co-la-1918.