State ex rel. National Broadway Bank v. City of New Orleans

25 So. 421, 51 La. Ann. 699, 1899 La. LEXIS 454
CourtSupreme Court of Louisiana
DecidedMarch 7, 1899
DocketNo. 13,063
StatusPublished

This text of 25 So. 421 (State ex rel. National Broadway Bank v. City of New Orleans) 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. National Broadway Bank v. City of New Orleans, 25 So. 421, 51 La. Ann. 699, 1899 La. LEXIS 454 (La. 1899).

Opinion

The. opinion of the court was delivered by

Watkins, J.

This is a proceeding by mandamus directed to the ■ city of New Orleans, commanding it through its proper disbursing officers, the mayor, comptroller and treasurer, forthwith to pay over ■to petitioner, out of funds appropriated therefor, in cash on the surrender and delivery thereof, the amount of certificates Nos. 1 and 2, . as set out and particularly described in its petition, bearing date September 10th, 1895, issued to the Eosetta Gravel, Paving and Improvement Company, amounting in the aggregate to $5,477.14 with six per cent, per annum interest from date.

On the trial there was a judgment mailing the mandamus peremptory, and the respondent city prosecutes this appeal therefrom.

The substantial representation of the relator is as follows, viz.:

That by virtue of a notarial contract made and entered into between the city of New Orleans and the Eosetta Gravel, Paving and Improvement Company, bearing date May 10th, 1895, the latter contracted and agreed to do certain paving work on Poland street, to be done at prices therein specified, partly by the front or abutting proprietors, and partly for certificates due on demand by the city.

That said paving and other work was duly performed by the gravel • company, the same was accepted by the city, and certificates were duly issued for the city’s portion of said work; and same were signed by the commissioner of public works, the city engineer, and the mayor of the city and delivered to the gravel company.

That among these so issued were certificates Nos. 1 and 2, each dated September 10th, 1895, one for $2,170.67 and the other for '$3,256.52.

[701]*701That on. the 9th of April, 1896, for value received, the gravel company transferred and assigned said certificates to relator, and, upon the same day, said transfer was registered in the office of the comptroller of the city in pursuance of ordinance No. 2066, Administration Series; and that, ever since, the city of New Orleans has recognized relator as the owner and holder of same.

That by ordinance No. 11,347, O. S., adopted since said assignment, the city made due and’proper appropriations to pay said certificates in their respective order and rank, under which there are, at this time, ample funds in the city treasury applicable to the payment and satisfaction thereof, capital and interest.

That relator presented said certificates to the city comptroller for such payment, and he “refused to make such payment until (itj had “ presented him the certificate required by ordinance No. 13,338, O. S; “ and, that thereupon, its counsel addressed a letter to the comptroller “making a formal demand of him for payment of said certificates, “ and to which he replied that he was prepared to pay same when re- “ lator complied with the requirements of said ordinance No. 13,338,. “0. S.”

Relator specially avers that said ordinance was adopted by the city council long subsequent to the execution and fulfillment of the aforesaid contract by the gravel company; long after the passage of ordinance No. 11,347, C. S., making appropriation for the payment of said certificates; and long after said certificates had been by the gravel company assigned to the relator, and to the knowledge of said city and its officers.

The following is a copy of the provision of said ordinance No.-13,338, to which relator refers, viz.:

“That no certificate for the city’s portion of the cost of any street “ or banquette; paving of streets or banquettes, in which there is a “ clause requiring the contractor to maintain the street or banquette “ in good condition for any term, shall be paid to any beneficiary or “ assign until the beneficiary shall file with the comptroller a eertifi- “ cate signed by the commissioner of public works that the mainten- “ anee clause in the contract under which said paving certificate is “ issued has been fully complied with.”

The relator, thereupon, represents and avers, that said ordinance is-null and void, and of no effect as against it, because:

1st. It imposes upon the assignee or beneficiary of such certificates [702]*702.as those upon which its demand is founded as a prerequisite to their payment a burden not imposed on the contractor itself, thereby making the position of an assignee worse than that of its assignor, and is, therefore, discriminative and unreasonable.

2nd. It imposes upon the payment of those certificates onerous terms and conditions which did not exist at the time the original contract out of which said certificates originated, was made, and after same had been assigned to relator with the küowledge and consent of the city, and is, therefore, violative of the obligation of the contract and divests vested rights, in contravention of the constitutions of the State and United States.

Finally, the relator avers, “that the sole and only reason why the “ city authorities refuse to pay said certificates in cash out of the “ funds now in the city treasury appropriated and applicable thereto, “ is the fact that (it) has declined to submit to the provisions of said “ ordinance No. 13,338 ,C. S.;” and that said pretension is illegal and unconstitutional.

The following are extracts from the return of the respondents, viz.:

“1. That certificates Nos. 1 and 2, held by relator and described in “ its petition, are certificates issued by the municipality of New Or- “ leans, for work done for said municipality, and, under the laws gov- “ erning the issuance of such certificates or scrip.

“That said scrip is non-negotiable in its character, and that, on their “ faces, said certificates bore notice to relator that they were subject “to all the equities between the city of New Orleans and the person “ to whom they were originally issued.

“2. That the Rosetta Gravel, Paving and Improvement Company, * to whose order said certificates were issued, agreed in the contract, “ which is referred to in relator’s petition, and made a part thereof, to “ maintain Poland street in good order and condition for the term of “five years after said company had finished paving said street; that “ said five years have not yet elapsed; that the Rosetta Gravel, Paving “ and Improvement Company has failed to comply with the terms of “its contract to maintain Poland street in good condition, and that “ the money is not due under said contract, and on the certificates here “sued upon, until the said contract is complied with and the street “ maintained in good order and condition.

* * " * * * * * *

“4. That ordinance' No. 13,338, C. S., is not burdensome, illegal, [703]*703“ unauthorized, null or void. That the certificates therein provided “ for are issued by city officials without cost or charge. That said “ ordinance is merely administrative in its nature and authorized by “ the city charter, and is useful in the expedition of the business of “ the city with private contractors.”

The purport of the return appears to be, that the gravel company has engaged with the city, as a part of its contract “to maintain Po- “ land street in good order and condition for a term of five years, “ after it had finished paving said street;” and that said time has not elapsed, and said company “has failed to comply with the terms of its u contract to maintain

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25 So. 421, 51 La. Ann. 699, 1899 La. LEXIS 454, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-ex-rel-national-broadway-bank-v-city-of-new-orleans-la-1899.