State v. Board of Com'rs of Port of New Orleans

3 So. 2d 622, 198 La. 283, 1941 La. LEXIS 1132
CourtSupreme Court of Louisiana
DecidedJune 30, 1941
DocketNo. 36132.
StatusPublished
Cited by5 cases

This text of 3 So. 2d 622 (State v. Board of Com'rs of Port 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 v. Board of Com'rs of Port of New Orleans, 3 So. 2d 622, 198 La. 283, 1941 La. LEXIS 1132 (La. 1941).

Opinion

McCALEB, Justice.

■ The relator, Henry M. Munsch, has prosecuted this appeal from a judgment dismissing his suit on an exception of no right or cause of action. In his petition, he alleges, in substance, as follows: That, from the year 1918 until October 23, 1940, he was employed in a clerical capacity by the Board of Commissioners of the Port of New Orleans, a governmental agency of the State of Louisiana, as a civil service employee under Act 15 of the Extra Session of the Legislature of 1915; that, at all times during the tenure of his employment, he performed the duties assigned to him faithfully, efficiently and honestly; that, in spite of the provisions of the Civil Service Tenure Law (Act 15 of 1915 Ex. Sess.), relating to employees of the Board *288 of Commissioners of the Port of New Orleans, .he was discharged without cause by the respondent Board on October 23, 1940; that he immediately protested to the Board that it lacked the right to dismiss him from the service in the absence of just grounds and that he was thereafter advised by the general counsel of the Board that, since Act 15 of 1915 had been repealed by Act 16 of the Second Extraordinary Session of the Legislature of 1935, he held his position subject to the pleasure of the Board which could dismiss him at any time without assigning cause therefor.

Claiming that, by virtue of the provisions of Act 15 of 1915, he was given a permanent contract of employment, which the Legislature in 1935 was without right or power to set aside by repeal, and that its action in so doing impaired the obligation of his contract in violation of Section 15 of Article 4 of the Constitution of Louisiana of 1921 and Article 1, Section 10 of the Constitution of the United States, the relator prayed that an alternative writ of mandamus issue commanding the Board of Commissioners of the Port of New Orleans to rescind its action in discharging him from his position and also commanding it to reinstate him in its employ and to pay him his salary of $150 per month from October 23, 1940.

The question presented for decision is whether relator’s employment under the provisions of Act Í5 of 1915 constituted a contract of permanent hiring by the Board of Commissioners of the Port of New Orleans which could not be cancelled, altered or amended by subsequent action of the Legislature and whether its action in repealing the Civil Service Law respecting Dock Board employees is violative of the applicable sections of the Constitutions of' the United States and of this State, which prohibit the passage of any law impairing or abrogating the obligation of contracts.

It is the firmly established jurisprudence that, if a State descends from the plane of its sovereignty, and enters into a contract with a private citizen, the Legislature cannot impair the obligation of such a contract by subsequent enactment. See Trustees of Dartmouth College v. Woodward, 4 Wheat. 518, 4 L.Ed. 629, and Hall v. Wisconsin, 103 U.S. 5, 26 L.Ed. 302. On the other hand, it is also well settled that legislation, which merely declares a State policy and directs a subordinate body to carry it into effect, is subject to revision or repeal in the discretion of the Legislature. See Dodge v. Board of Education, 302 U.S. 74, 58 S.Ct. 98, 100, 82 L.Ed. 57. Hence, the controversy here reduces itself to the question as to which category Act 15 of 1915 falls.

It has been said by the Supreme Court of the United States in Dodge v. Board of Education, supra, that:

“In determining whether a law tenders a contract to a citizen, it is of first importance to examine the language of the statute. If it provides for the execution of a written contract on behalf of the state, the case for an obligation binding upon the state is clear. [Hall v. Wisconsin, 103 U.S. 5, 26 L.Ed. 302.] Equally clear is the case where a statute confirms a settlement of disputed rights and defines its terms. *290 [New Jersey v. Wilson, 7 Cranch 164, 3 L.Ed. 303; New Jersey v. Yard, 95 U.S. 104, 24 L.Ed. 352.] On the other hand, an act merely fixing salaries of officers creates no contract in their favor, and the compensation named may be altered at the will of- the Legislature. [Butler v. Pennsylvania, 10 How. 402, 13 L.Ed. 472; United States v. Fisher, 109 U.S. 143, 3 S.Ct. 154, 27 L.Ed. 885; Fisk v. Jefferson, 116 U.S. 131, 133, 6 S.Ct. 329, 29 L.Ed. 587, 588; Mississippi for Use of Robertson v. Miller, 276 U.S. 174, 178, 48 S.Ct. 266, 268, 72 L.Ed. 517, 520.] This is true also of an act fixing the term or tenure of a public officer or an employe of a state agency. . [Crenshaw v. United States, 134 U.S. 99, 10 S.Ct. 431, 33 L.Ed. 825; Phelps v. Board of Education, 300 U.S. 319, 57 S.Ct. 483, 81 L.Ed. 674.] The presumption is that such a law is not intended to create private contractual or vested rights, but merely declares a policy to be pursued until the Legislature shall ordain otherwise. He who asserts the creation of a contract with the state in such a case has the burden of overcoming the presumption. [Christ Church v. Philadelphia County, 24 How. 300, 302, 16 L.Ed. 602, 604; Tucker v. Ferguson, 22 Wall. 527, 575, 22 L.Ed. 805, 815; New Jersey v. Yard, 95 U.S. 104, 24 L.Ed. 352, supra; Newton v. Mahoning County, 100 U.S. 548, 561, 25 L.Ed. 710, 712; Wisconsin & M. R. Co. v. Powers, 191 U.S. 379, 387, 24 S.Ct. 107, 48 L.Ed. 229, 231.]”

Guided by the foregoing pronouncements, we turn to the provisions of Act 15' of 1915 for aid in solving the problem. The title of the statute discloses that its object is to provide for the creation of a Board of Examiners to examine applicants for certain offices and positions of employment in such warehouses and other structures in aid of commerce as may be erected and operated by the Board of Commissioners of the Port of New Orleans under Article 322 of the Constitution of 1913 and “to provide for the tenure of office or employment of these certain employees in said warehouses and other structures, * * * ”. Under Section 1 of the Act, a Board of Examiners, which is charged with the duty of examining all applicants for positions of trust or employment in the warehouses of the Dock Board, is created. Section 2 provides for the manner by which the members of the Board of Examiners are selected and by Section 3 the Board is given the right to employ clerical help.

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3 So. 2d 622, 198 La. 283, 1941 La. LEXIS 1132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-board-of-comrs-of-port-of-new-orleans-la-1941.