185 So. 3d 935
Miss.2015Background
- In 1962 the Mississippi Legislature created the Pat Harrison Waterway District, including Lamar County, to develop water resources; funding is mainly from member counties' assessments.
- The District entered into eight contracts with federal and state agencies to operate its water parks, including LWCF, Soil Conservation Service, and National Watershed programs.
- LWCF contracts require the State to operate/maintain facilities and keep them open for public recreation; post-completion standards and obsolescence provisions are present in the LWCF manual.
- The District leased land from the Army Corps of Engineers for Okatibbee Creek Park under a long-term agreement that includes a right to terminate the lease with notice.
- In 2011 Lamar County withdrew under Mississippi Code §51-15-118 and, via independent audit, was to determine its share of outstanding obligations; the District’s claim for perpetual park costs was contested.
- The chancery court ultimately found Lamar County owed $337,088, after excluding perpetual park operating costs as contractual obligations; the District appeals this ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether perpetual park operations are contractual obligations under §51-15-118. | Lamar County | Pat Harrison WD | Perpetual park costs are not outstanding contractual obligations under §51-15-118. |
| What amount Lamar County must pay upon withdrawal. | Lamar County | Pat Harrison WD | Lamar County owes $337,088, not $18,985,536. |
| Whether other future contractual obligations must be included as outstanding. | Lamar County | Pat Harrison WD | Future, non-outstanding obligations are not charged to Lamar County; only outstanding obligations are included. |
Key Cases Cited
- City of Pflugerville v. Capital Metro. Transp. Auth., 123 S.W.3d 106 (Tex.App. 2003) (contracts subject to appropriation and the meaning of outstanding obligations in a withdrawal statute)
- Polk v. Mutual Reserve Fund Life Ass'n. of New York, 207 U.S. 310 (1907) (outstanding contracts may be valued even if not due or easily measurable)
- Broadway Nat’l Bank of Bayonne v. Parking Auth. of City of Bayonne, 40 N.J. 227, 191 A.2d 169 (1963) (outstanding contractual obligations concept in public agency context)
- Meissner v. Paulson, 212 Cal.App.3d 785 (1989) (definition of outstanding contractual obligation in accounting context)
- City of Pflugerville v. Capital Metro. Transp. Auth., 123 S.W.3d 106 (Tex.Ct.App. 2003) (reiterates interpretation of 'outstanding' obligations in withdrawal context)