Ristroph v. Public Facilities Authority

943 So. 2d 492, 2006 WL 2627573
CourtLouisiana Court of Appeal
DecidedSeptember 14, 2006
Docket2006 CA 1669
StatusPublished
Cited by4 cases

This text of 943 So. 2d 492 (Ristroph v. Public Facilities Authority) 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
Ristroph v. Public Facilities Authority, 943 So. 2d 492, 2006 WL 2627573 (La. Ct. App. 2006).

Opinion

943 So.2d 492 (2006)

Don RISTROPH, and All Those Similarly Situated, All Taxpayers and All Other Persons Interested in or Affected in any Way by the Issuance of not to Exceed $17,500,000 Gulf Opportunity Zone Act to the Louisiana Public Facilities Authority on Behalf of Pipeline Technology VI, LLC
v.
LOUISIANA PUBLIC FACILITIES AUTHORITY, Pipeline Technology VI, LLC.

No. 2006 CA 1669.

Court of Appeal of Louisiana, First Circuit.

September 14, 2006.

Kirk A. Patrick, Holly Q. Sides, David F. Zuber, Baton Rouge, Counsel for Plaintiffs/Appellants, Don Ristroph, et al.

Gordon D. Polozola, Baton Rouge, Counsel for Defendant/Appellee, Pipeline Technology VI, LLC.

Harry J. Philips, Jr., Tracy A. Morganti, Baton Rouge, Counsel for Defendant/Appellee, Louisiana Public Facilities Authority.

Before: CARTER, C.J., WHIPPLE, PETTIGREW, DOWNING, and MCDONALD, JJ.

CARTER, C.J.

The sole issue for this court's consideration is whether plaintiff, Don Ristroph's, motion for judgment seeking invalidation of a bond issuance is perempted as a matter of law. Finding plaintiff timely exercised his right to challenge the bond issuance, we reverse and remand.

*494 Facts and Procedural History

The undisputed facts establish that on February 7, 2006, and May 8, 2006, defendant Louisiana Public Facilities Authority (LPFA), under and pursuant to the provisions of the Louisiana Public Trust Act, LSA-R.S. 9:2341-2347, adopted Resolutions granting preliminary and final approval to the issuance of up to $17,500,000 of the LPFA's Gulf Opportunity Zone Bonds (Go Zone Bonds)[1] for the benefit of defendant Pipeline Technology VI, LLC (Pipeline). The bonds were designated as "Louisiana Public Facilities Authority Taxable and/or Tax-Exempt Revenue Bonds (Pipeline Technology VI, L.L.C. Project) Series 2006." Pipeline seeks the funds to construct an underground benzene pipeline. Notice of the sale of the bonds was published in The Advocate on May 9, 2006, and in the Daily Journal of Commerce on May 11, 2006.

By Resolution dated May 18, 2006, the Louisiana State Bond Commission (Bond Commission) granted final approval to the issuance of the bonds and designated the bonds as "qualified Gulf Opportunity Zone Bonds."

On June 7, 2006, Ristroph[2] filed a "Petition for Motion for Judgment and for Injunctive Relief" against LPFA and Pipeline. Ristroph's motion for judgment states "Louisiana Revised Statute[s] 13:5121, et seq. (the "Bond Validation Act") provides a judicial mechanism by which issuers and challengers of bond issuances or governmental units may validate or challenge the issuance of governmental bonds. This suit is brought pursuant to the Bond Validation Act."

On June 28, 2006, LPFA and Pipeline filed an answer, therein raising several exceptions and affirmative defenses. Significant to this appeal, LPFA and Pipeline maintained that Ristroph's suit was perempted and absolutely null due to Ristroph's failure to submit to, or obtain from, the trial court an order for the publication of the motion for judgment. Louisiana Revised Statutes 13:5125 provides that upon the filing of a motion for judgment, "the court shall enter an order" requiring publication of the motion for judgment within five days following its filing.

Following a contradictory hearing and after taking the matter under advisement, the trial court ruled in favor of the defendants, granting their peremptory exception raising the objection of peremption and dismissing plaintiffs' suit with prejudice. This expedited appeal follows.[3]

Standard of Review

The relevant facts are not in dispute; therefore, the doctrine of manifest error does not apply to this court's review of the trial court's decision. Appellate review of questions of law is simply to determine whether the trial court was legally correct. Cangelosi v. Allstate Insurance *495 Co., 96-0159 (La.App. 1 Cir. 9/27/96), 680 So.2d 1358, 1360, writ denied, 96-2586 (La.12/13/96), 692 So.2d 375.

Discussion

The Bond Validation Act sets forth the exclusive procedures for an action seeking the invalidation of the issuance of a municipal bond. Louisiana Revised Statutes 13:5122 states in pertinent part:

All suits, actions and proceedings of whatever nature affecting the validity of bonds of any governmental unit, or the interest thereon, or the sale thereof, or the election, if any, authorizing the issuance of said bonds shall be brought only in accordance with the provisions of this Title. These provisions shall supersede all other acts and statutes on the subject and be controlling in all such cases notwithstanding the provisions of any other law or charter to the contrary; provided, however, nothing herein contained shall affect, change, alter or modify in any way any peremptive or prescriptive period for the contesting of bonds of governmental units or elections authorizing their issuance, established pursuant to the constitution and statutes of this state which shall continue to govern the time within which actions covered thereby may be filed. It is hereby declared that it is the intention of the legislature in enacting this law to provide a uniform, expeditious and equitable procedure with due regard for the public fisc and rights of persons in interest for the judicial determination of the validity of bonds and related proceedings where material and substantial questions with regard thereto are involved or a judicial determination of issues relating to bonds is necessary to insure the marketability of bonds in investment channels. It is not the intention of the legislature to require or to encourage the validation of all bonds by the judiciary. (Emphasis supplied.)

It is undisputed that the applicable peremptive period is found in LSA-R.S. 9:2347H, which provides in pertinent part:

For a period of thirty days from the date of publication of the notice of sale, any person or persons in interest shall have the right to contest the legality of the notice of sale, resolution or other proceedings authorizing the issuance of the bonds and the legality of the bond issue for any cause, after which time no one shall have any cause or right of action to contest the legality of said resolution or other proceedings or of the bonds authorized thereby for any cause whatsoever. If no suit, action or proceedings are begun contesting the validity of the bonds within the thirty days herein prescribed, the authority to issue the bonds and to provide for the payment thereof, the legality thereof and of all of the provisions of the resolution or other proceedings authorizing the issuance of the bonds shall be conclusively presumed, and no court shall have authority to inquire into such matters. (Emphasis supplied.)

Louisiana Revised Statutes 13:5125 delineates the procedure to be followed after a motion for judgment is filed. Specifically:

Any person, corporation or association desiring to contest or enjoin the issuance of any such bonds or action taken providing for a new or different source of payment for outstanding bonds shall proceed by motion for judgment brought in the court having jurisdiction as provided in R.S. 13:5123. Upon the filing of any such motion for judgment, the court shall enter an order within five days following such filing requiring the publication of the motion in some newspaper published in or having general *496

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Cite This Page — Counsel Stack

Bluebook (online)
943 So. 2d 492, 2006 WL 2627573, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ristroph-v-public-facilities-authority-lactapp-2006.