ELR Citation: ELR 21325
No(s). 83-2669 (La. Ct. App. Jan 30, 1990)

The court holds that a provision in the Louisiana Constitution that affords public notice and public bidding before the leasing or selling of state-owned mineral rights supersedes leases between a state agency and a shell dredging company awarded outside the public bid process. In the underlying litigation, the trial court ruled that leases awarded outside the statutory public bid process allowing shell dredging from water bottoms that belong to the state of Louisiana are unlawful. On the same day that the trial court preliminarily enjoined further shell dredging activities, new leases were enacted under a state statute allowing shell dredging during the public bidding process. The court holds that the legality of the new leases is an issue for the trial court to decide. The court holds that although the statute was a temporary measure that has already expired, the industry must abide by state constitutional precepts, even in the face of financial hardship. The court also holds that the trial court exceeded its jurisdiction when it held that the shell dredgers were subject to "other applicable Louisiana regulatory laws."

Counsel for Appellees
Michael Osborne, Christopher Gobert
Osborne & McComiskey
3439 Prytania St., New Orleans LA 70115
(504) 891-4418

Counsel for Appellant
James A. Burton, Susan F. Clade, J. Thomas Hamrick Jr.
Simon, Peragine, Smith & Redfearn
1100 Poydras St., 30th Fl., New Orleans LA 70163
(504) 569-2030