State v. Maestri

5 So. 2d 499, 199 La. 49, 1941 La. LEXIS 1202
CourtSupreme Court of Louisiana
DecidedDecember 1, 1941
DocketNo. 36292.
StatusPublished
Cited by11 cases

This text of 5 So. 2d 499 (State v. Maestri) 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. Maestri, 5 So. 2d 499, 199 La. 49, 1941 La. LEXIS 1202 (La. 1941).

Opinion

*27 ROGERS, Justice.

The State of Louisiana, through its Attorney General, and the Crime Commission, created by Act 13 of 1940, and the Departments of Conservation and Minerals brought this suit against Robert S. Maestri, formerly Conservation Commissioner, and the Canal Oil Company, Inc. The action, as disclosed by the prayer of the petition, is in declaration of forfeiture and for the money and property claimed to have been forfeited to the plaintiffs under Section 7 of Act 127 of 1912.

The defendants excepted to the petition on the ground, among others, that it failed to disclose any right or cause of action. The trial judge sustained the exception of no cause of action and dismissed the suit. The State of Louisiana and the Department of Minerals have appealed from the judgment. The defendants have answered the appeal, and ask that the judgment appealed from be affirmed so far as concerns the exception of no cause of action, and that the judgment be amended so as to sustain certain other exceptions filed by them.

The question presented on this appeal is: Can the appellants’ action be maintained on the allegations of their petition, to which we must look in order to understand the nature of plaintiffs’ demands?

Plaintiffs allege, in substance, that the defendant, Robert S. Maestri, was Commissioner of Conservation for the State of Louisiana, and as such a salaried officer from December 1, 1929, to August 17, 1936, inclusive; that the Canal Oil Company, Inc., was created as a Louisiana corporation on December 21, 1934, the object of the corporation being to produce, refine, and market oil, gas, and other minerals; to purchase or lease lands and other property, and to do all things permitted to be done generally by corporations under the provisions of Act 250 of 1928; that on December 26, 1934, the defendant Maestri advanced to William Helis the sum of $225,000, and in May, 1935, the sum of $60,000 for the purpose of acquiring certain oil and mineral properties situated within this State.

Plaintiffs allege, on information and belief, that the money so advanced was to be used, and was used, in exploiting the natural resources of the State, particularly oil or gas, or other liquid or gaseous hydrocarbon minerals by the Canal Oil Company in the New Iberia and Little Bayou fields in Iberia Parish and the Leeville field in Lafourche Parish; that the money advanced by the defendant Maestri was to be repaid and was actually repaid out of the profits made by the Canal Oil Company.

Plaintiffs allege that from December 26, 1934, until October 11, 1940, the defendant Maestri owned a one-half interest, or 500 shares of the capital stock of the Canal Oil Company and that he received dividends from the Canal Oil Company during the period of his ownership of the stock amounting in the aggregate to the sum of $825,000. Plaintiffs allege that on November 30, 1938, certificate No. 8 for 500 shares of the Canal Oil Company, representing one-half of the total authorized capital *28 stock of the company, was issued to and received by Maestri, and on October 10, 1940, he received and receipted for stock certificate No. 9, representing 500 shares of the capital stock of the Oil Company; that on October 15, 1940, certificate No. 10 for 500 shares of the capital stock of the Oil Company was issued to that company upon the surrender of stock certificate No. 9 held by Maestri and are now treasury shares. Plaintiffs allege that on December 31, 1940, a dividend of $200 on each outstanding share of stock, excluding treasury shares, was declared by the Board of Directors of the Canal Oil Company and that the dividend so declared was paid to William Helis, the owner of all outstanding stock, exclusive of treasury shares, and on that date and continuing to the present time, the undistributed and unappropriated surplus of the Canal Oil Company did and does exceed $200,000.

Plaintiffs allege that betwe'en December 21, 1934, and August 17, 1936, and up- to the time of filing the suit, the Canal Oil Company produced and sold oil and gas from the sub-surface of the State of Louisiana, and that as shown by statements attached to the petition it produced and exploited oil in excess of the original allowable orders as set for the exploited fields.

Plaintiffs allege that the Canal Oil Company, Inc., its officers and stockholders well knew that the defendant Maestri was Commissioner of Conservation and also a salaried officer of the Department of Conservation from December 21, 1934,- to and including August 17, 1936, and that the defendant Maestri was actively interested for personal gain in the operations and exploitations of the Canal Oil Company.

Plaintiffs allege that the defendant Maestri, while a salaried officer of the Department of Conservation, due to and by his active interest in the exploitation of the natural resources of the State of Louisiana, with particular reference to the Canal Oil Company, was unjustly enriched in contravention of Section 7 of Act 127 of 1912 to the extent of a one-half interest in the Canal Oil Company, or 500 shares of the capital stock of that company now issued as treasury shares, as represented by stock certificate No. 10, and monies and dividends accruing to the one-half interest and stock received by the ’defendant Maestri from the Canal Oil Company from December 11, 1935, to and including September 30, 1939, in the sum of $825,000. ■

Plaintiffs allege that the 500 shares of the capital stock of Canal Oil Company acquired by Maestri, together with all credits, dividends and monies accruing to the stock, have been, were and are forfeited to plaintiffs as of the date they were acquired by Maestri; that plaintiffs claim the ownership and right of possession of stock certificate No. 10 in the Canal Oil Company, and that a writ of sequestration is necessary, to protect their rights therein.

Plaintiffs pray for citation of the defendants, Maestri and Canal Oil Company, Inc., and for judgment after due proceedings, decreeing a forfeiture in their favor and against the defendants for any and all rights acquired by Maestri while a sal *29 aried officer of the Department of Conservation in contravention of Section 7 of Act 127 of 1912, and particularly the forfeiture of one-half interest in the defendant, Canal Oil Company, Inc., evidenced by 500 shares of its capital stock, and for a further judgment against the defendant, Maestri, in the sum of $825,000, with interest, as monies and dividends received by Maestri by reason of his ownership of a one-half interest in the Canal Oil Company, Inc., from the date of its incorporation until October 15, 1940.

Plaintiffs pray for certain relief against the Canal Oil Company, Inc., which, for the purpose of considering the major issues presented on this appeal, it is unnecessary to set forth.

In response to defendants’ exception of vagueness, the plaintiffs amended their petition by the following admission dictated into the record on the trial of the case: “That at all times pertinent to this lawsuit, i.e., December 21, 1934, to and inclusive of August 17, 1936, the fee simple title of the property covered by the Sabatier and Bernard leases owned by the Canal Oil Company in the Iberia Field and the Deramee-Nicoll, Cenac leases in the Lee-ville Field, was not in the State of Louisiana.

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Bluebook (online)
5 So. 2d 499, 199 La. 49, 1941 La. LEXIS 1202, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-maestri-la-1941.