Sewell v. Huey

779 So. 2d 1003, 2001 WL 126233
CourtLouisiana Court of Appeal
DecidedJanuary 24, 2001
Docket2000-CA-0385
StatusPublished
Cited by5 cases

This text of 779 So. 2d 1003 (Sewell v. Huey) 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
Sewell v. Huey, 779 So. 2d 1003, 2001 WL 126233 (La. Ct. App. 2001).

Opinion

779 So.2d 1003 (2001)

Stephen Scott SEWELL
v.
James HUEY, Commissioner and President of the Board of the Orleans Levee District and Orleans Levee District.

No. 2000-CA-0385.

Court of Appeal of Louisiana, Fourth Circuit.

January 24, 2001.

*1004 Malcolm R. Petal, New Orleans, LA, Counsel for Plaintiff/Appellant.

Frank A. Milanese, and David C. Treen, James A. Nugent, Deutsch, Kerrigan & Stiles, New Orleans, LA, Counsel for Defendants/Appellees.

Richard B. Sobol, Slidell, LA, and Lolis Edward Elie, New Orleans, LA, Counsel for Intervenor/Appellee.

Court composed of BAGNERIS, TOBIAS and GORBATY, Judges.

TOBIAS, Judge.

The plaintiff, Steven Scott Sewell, appeals from a trial court judgment denying his petition for a writ of mandamus filed against the defendants, James P. Huey, president of the Board of Commissioners of the Orleans Levee District, and the Board of Commissioners of the Orleans Levee District ("Orleans Levee Board").

In 1993, the Orleans Levee Board leased a portion of South Shore Harbor on Lake Pontchartrain to Star Casino, Inc. ("Star Casino"), for the purpose of operating a riverboat casino. Pursuant to the 1993 contract of lease, the riverboat casino operator agreed to pay the Orleans Levee Board a fixed amount of annual rent, plus $2.50 per patron boarding the casino boat. In February 1995, the Orleans Levee Board, Star Casino, and Belle of Orleans, L.L.C. ("Belle of Orleans") entered into an agreement whereby Star Casino assigned its interest in the 1993 lease to Belle of Orleans, and the Orleans Levee Board consented to the assignment.

On 15 May 1996, the Orleans Levee Board passed Resolution 3 051596 ("Resolution No. 1"), conditionally approving an amendment to the 1993 lease with Belle of Orleans. The proposed amendment deleted the $2.50 per patron obligation and substituted the following language:

III. C. (1) In addition to the fixed rent provided for in paragraph A, as amended, above, Lessee agrees to pay to Lessor a base rent of $110,000 per month, plus 3 per cent of monthly gross revenues above $5.5 million, which shall be paid monthly to the Orleans Levee Board.

Resolution No. 1 stated that the purpose of the change was "to provide rent relief." It also provided:

[T]his resolution shall not become effective unless the Orleans Levee Board has, within sixty days from the date hereof, identified alternative funds to replace those funds lost under the above proposal, and should said replacement funds not be identified within sixty days, this resolution shall not go into effect.

The Orleans Levee Board failed to identify any replacement funds during the sixty-day period and, as a result, the proposed lease amendment in Resolution No. 1 never took effect.

On 17 July 1996, several days after the expiration of the sixty-day period, the Orleans Levee Board adopted Resolution No. 2-071796 ("Resolution No. 2"), again amending the lease with Belle of Orleans. *1005 The stated purpose of the amendment was to "increas[e] the amount of revenue previously enjoyed by the Board...." The amendment deleted the $2.50 per patron obligation, and provided the following substitute obligation:

In addition to [the fixed annual rent], Lessee agrees to pay to Lessor rent based on monthly Gross Gaming Revenue as follows:
a. For the period, July 1, 1996 through June 30, 2000 inclusive, an amount equal to three percent (3%) of monthly Gross Gaming Revenue, with a minimum monthly rental in the amount of $110,000.00.
b. For the period, July 1, 2000 and thereafter for the duration of the lease, an amount equal to five percent (5%) of monthly Gross Gaming Revenue, with a minimum monthly rental in the amount of $110,000.00.

Upon execution of the amendment, Belle of Orleans agreed to advance all of the fixed rent for the three quarters commencing 1 October 1996 in lieu of the quarterly payments provided for in the existing lease. In addition to the third amendment, Resolution No. 2 provided that Belle of Orleans would use its best efforts to carry out the objective of the 1996-1997 Marketing Plan regarding the marketing and construction of a restaurant at South Shore Harbor. On 19 July 1996, the Orleans Levee Board and Belle of Orleans executed the amendment provided for in Resolution No. 2. The lease, as amended pursuant to Resolution No. 2, has been in effect since that date.

On 18 August 1999, more than three years later, the plaintiff filed a petition for writ of mandamus to compel the Orleans Levee Board to cease and desist the policy of rent relief and to collect all unpaid rents from the casino since the "unauthorized" granting of rent relief. The plaintiff argued that the "forgiveness of rent" as a result of the amendment in Resolution No. 2 was, in effect, the "forgiveness of a tax," an illegal gift, and a loss of $5,000,000.00 in revenue for the Orleans Levee District. The plaintiff further asserted that the Board of Commissioners failed to comply with its own by-laws when it passed Resolution No. 2. He alleged that the board had incorporated Roberts Rules of Order in its by-laws, which required the board to either rescind or reconsider and reject Resolution No. 1 before adopting conflicting Resolution No. 2. Finally, the plaintiff alleged that the Orleans Levee Board's failure to exercise its duty to collect [unpaid rents] to prevent flood and hurricane damage put him and his home at risk.

In response, the Orleans Levee Board answered the petition and filed peremptory exceptions of no right of action, no cause of action, and nonjoinder of a party and the declinatory exception of [unauthorized] use of summary proceedings. The Belle of Orleans intervened in the mandamus suit on 15 September 1999 and filed an exception of no right of action in this Court on 30 March 2000.

A hearing was held on 21 September 1999, but no testimony was taken. After considering the pleadings, the argument of counsel, and the law, the trial court overruled the defendants's exceptions and denied the plaintiffs petition for a writ of mandamus. The trial court gave no written reasons for its judgment.

LSA C.C.P. art. 3862 provides in part:

A writ of mandamus may be issued in all cases where the law provides no relief by ordinary means or where the delay involved in obtaining ordinary relief may cause injustice....

Mandamus is an extraordinary remedy that is to be used sparingly to compel the performance of a ministerial duty that is clearly required by law. Plaquemines Parish Council v. Petrovich, 629 So.2d 1322 (La.App. 4 Cir.1993), writ denied, 94-0151 (La.3/11/94), 634 So.2d 390. A writ of mandamus may not be issued to compel a public official to exercise discretionary authority. Connick v. City of New Orleans, 543 So.2d 66 (La. App. 4 Cir.1989).

*1006 A taxpayer may resort to judicial authority to enjoin public servants from transcending their lawful powers or violating their legal duties in any unauthorized manner that would increase the burden of taxation or otherwise unjustly affect the taxpayer or his property. Alliance for Affordable Energy v. Council of the City of New Orleans, 96-0700 (La.7/2/96), 677 So.2d 424, 428. The fact that a taxpayer's interest may be small and insusceptible of accurate determination is not sufficient to deprive him of the right. Id.

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Cite This Page — Counsel Stack

Bluebook (online)
779 So. 2d 1003, 2001 WL 126233, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sewell-v-huey-lactapp-2001.