State ex rel. First Nat. Bank v. Police Jury

77 So. 503, 142 La. 691, 1918 La. LEXIS 1419
CourtSupreme Court of Louisiana
DecidedJanuary 3, 1918
DocketNo. 22639
StatusPublished
Cited by3 cases

This text of 77 So. 503 (State ex rel. First Nat. Bank v. Police Jury) 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
State ex rel. First Nat. Bank v. Police Jury, 77 So. 503, 142 La. 691, 1918 La. LEXIS 1419 (La. 1918).

Opinion

LECHE, J.

Relators appeal from a judgment maintaining an exception of no cause of action.

The police jury of Beauregard parish, having in its custody the sum of $455,679.96, cash proceeds of sale of good-road bonds, invited bids for the deposit of said funds or any portion thereof, with a view of selecting depositary banks in accordance with the terms of Act 205 of 1912 and its amendments.

In due time bids were received from the Continental Bank & Trust Company of Shreveport, the Commercial National Bank of Shreveport, and from the relators. The [693]*693proposal submitted by relators is evidenced by the following communication:

“To the Honorable President and Members of the Police Jury, Parish of Beauregard, Louisiana:
‘‘Dear Sirs: In compliance with your notice to select depositary bank or banks for the deposit of the proceeds of the sale of the good roads bonds of said parish, amounting to approximately $455,679.96, we herewith submit our bid subject to the terms of Act No. 205 of 1912 and its amendments.
“The Lumberman’s Bank & Trust Company of De Ridder, $50,000; the Eirst National Bank of De Ridder, $30,000; the West Louisiana Bank of Leesville, $22,500; the First National Bank of Shreveport, the balance, approximately $353,179.96, or any part thereof.
“We propose to pay you at the rate of 3.75 per cent, interest on your daily balances, the interest to be credited monthly. Annexed hereto the sworn statement of our respective institutions at close of business March 1, 1917.
“Lumberman’s Bank & Trust Company.
“First National Bank of De Ridder.
“West Louisiana Bank.
“First National Bank of Shreveport.”

The police jury having considered all said bids, selected as its depositary banks, the Continental Bank & Trust Company of Shreveport, to whom it- awarded a deposit of $200,000, at 4 per cent, interest on the first $100,000 and 3.75 per cent, interest on the second $100,000 and the Commercial National Bank of 'Shreveport, to whom it awarded the balance of said fund at 3.5 per cent, interest.

Thereupon relators, after averring tbe above facts, alleged further that their hid was the highest and most advantageous for the parish of Beauregard, that,,it was the plain ministerial duty of the police jury of said parish to declare relators as the successful bidder for said funds, and that the selection of depositary banks as made by said police jury will cause relators an irreparable injury for which they have no adequate remedy at law, wherefore they prayed for writs of injunction and mandamus and made the Continental Bank & Trust Company and the Commercial National Bank, both of the city of Shreveport, as well as the police jury of the parish of Beauregard, parties defend-; ants.

The district judge, in compliance with the prayer- of relators’ petition, ordered the issuance of a preliminary writ of injunction and of an alternative writ of mandamus.

Defendant banks, alleging their domiciles to be in the city of Shreveport, parish of Cad-do, excepted to the jurisdiction of the - district court sitting in and for the parish of Beauregard, and all the defendants pleaded the additional exception of no right and no cause of action.

The district court overruled the exception to its jurisdiction, but maintained that of no cause of action, and dismissed relators’ suit.

The Continental Bank & Trust Company having answered this appeal, and prayed for a reversal of tbe trial court’s ruling on the question of jurisdiction, both rulings are therefore before us for review.

The wrong of which relators complain and for which they demand redress is charged to have been committed by the police jury of Beauregard parish. The defendant banks were made parties not because any affirmative relief is prayed for against them, but because, as beneficiaries of tbe contract which is sought to be declared null and void, they might be given the opportunity to defend and to uphold the action of the defendant police jury to the extent of their interest therein. The Fifteenth judicial district court for the parish of Beauregard is the competent and only tribunal in which relators could have brought the present action against the defendant police jury. Should the relators succeed in their demand and 'obtain ,a decree preventing the allotment of the deposits as proposed by the said police jury, the defendant banks would be compelled to resort to that same tribunal, were they not parties hereto, in any attempt to hold the said police jury liable for not per [695]*695forming its engagements towards them, Pretermitting, therefore, any expression of opinion as to whether said hanks are necessary parties hereto-, and considering that no moneyed judgment has been prayed for against them, they have no good reason to complain for having been notified of the action of relators and invited to enter, now, that same forum to protect such rights as they might h,ave in the matters at issue. One of them, the Continental Bank & Trust Company, has declined this invitation, and as we find no exception in article 165, C. P., under which it may be compelled to litigate its rights, if any, in the manner ¡and place proposed by relators, its objection to being sued im a court not having jurisdiction over its domicile must be sustained.

The law providing for the selection of fiscal agencies for the state of Louisiana, and all parishes, municipalities, boards* commissions, and other public bodies therein, is contained in Act No. 205, page 415, of the Acts of the General Assembly of 1912.

The exception of no right and no cause of action pleaded by defendants is urged upon the grounds:

(1) That the relators, as unsuccessful bidders, have no interest, and therefore no right of action.

(2) That the powers and duties conferred upon the police jury by said Act 205 of 1912, being discretionary and not ministerial, cannot be controlled by the courts.

(3) That the bid of the relators being a combination bid in, contravention of subsection 1 of section 4 of Act 205 of 1912, as amended by Act 265 of 1916, could not be considered by the police jury.

The title of Act 205 of 1912 shows that its object and purposes are to provide for the selection) of fiscal agencies, not only for the state of Louisiana, but for all parishes, municipalities, etc., therein; and its provisions may be summarized as follows:

Section 1, deposits to be made daily with fiscal agents.

Section 2, what banks are fiscal agents.

Section 3, paragraph 1, how funds from state treasury shall be let; paragraph 2, funds from tax collector; paragraph 3, funds from any parish, municipality, etc., which are not required to be placed in the custody of the state treasurer, and paragraph 4, funds belonging to boards or bodies controlled by parochial or municipal governments.

Section 4 is couched in the following language:

“That the conditions under which the funds of the state of Louisiana and all parishes and municipalities thereof, and all public boards, commissioners, and bodies created by or under the authority of the state or of any parish or municipality thereof, shall be deposited, ate as follows:

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Bluebook (online)
77 So. 503, 142 La. 691, 1918 La. LEXIS 1419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-first-nat-bank-v-police-jury-la-1918.