Justia Real Estate & Property Law Opinion Summaries

Esplanade Properties Corporation, a subsidiary of R.H. Macy & Co., owned the Macy’s Parcel in Kenner, Louisiana. In 1992, while Esplanade Properties was under bankruptcy protection and subject to an automatic stay, Jefferson Parish assessed ad valorem taxes for that year. In 1993, the Sheriff conducted a tax sale for nonpayment of those taxes, but the sale was later nullified because it occurred during the bankruptcy stay. For nearly two decades, the Parish took no action to collect the 1992 taxes. After subsequent transfers, the property was acquired by Esplanade Mall Realty Holding, LLC, which in 2018 received notice of a large sum due for past taxes, including the 1992 taxes, interest, and costs. The company disputed the collectibility of the old taxes, citing a statutory three-year limitation on tax sales.The 24th Judicial District Court initially dismissed the suit on procedural grounds, and the Louisiana Fifth Circuit Court of Appeal affirmed. The Louisiana Supreme Court reversed and remanded. While proceedings continued, the property was sold to Pacifica Kenner, LLC, which was substituted as plaintiff. The trial court ultimately ruled that La. R.S. 47:2131—which prohibits tax sales for taxes more than three years overdue—was unconstitutional because it conflicted with Louisiana constitutional provisions regarding tax collection and prescription. The trial court denied declaratory relief to the plaintiff.The Supreme Court of Louisiana reviewed the case and chose to avoid the constitutional issue, finding it unnecessary to resolve the dispute. Interpreting the relevant statutes, the court concluded that the Sheriff was required to include all statutory impositions, including the 1992 taxes, interest, and costs, in the 2020 tax sale price. The court held that the redemption price for the property must likewise include these amounts. The judgment was reversed, rendered, and remanded to the trial court to calculate the redemption price consistent with this interpretation. View "ESPLANADE MALL REALTY HOLDINGS, LLC VS. LOPINTO" on Justia Law

A public port authority sought to acquire approximately twenty-nine acres of private, unimproved land owned by an individual in Plaquemines Parish, Louisiana. The expropriation was initiated as part of a larger project to develop a liquified natural gas (LNG) and container port complex. The authority intended to lease the acquired property to a private LNG company, Venture Global, for its exclusive development and use, including construction of LNG facilities and docks. The port authority asserted that the expropriation would serve public interests such as economic growth, job creation, energy security, and environmental stewardship, and advanced its mission of expanding port operations.After the port authority deposited the alleged just compensation in court, the landowner filed a motion to dismiss the expropriation, arguing that the taking lacked a public purpose under Louisiana law because its sole intent was to lease the land for private use. The Twenty-Fifth Judicial District Court for the Parish of Plaquemines held a contradictory hearing and granted the motion, finding the expropriation unconstitutional since the property would be used exclusively by Venture Global and not by the public port. The Louisiana Court of Appeal, Fourth Circuit, reviewed the decision and affirmed, concluding the port authority did not meet the public purpose requirement set by the Louisiana Constitution.The Supreme Court of Louisiana granted certiorari to address whether a public port authority may lawfully expropriate property for leasing to a private entity. The court held that such a taking, when the property is to be used predominantly by a private company, does not constitute a public purpose as defined in the Louisiana Constitution. The court affirmed the lower courts’ rulings, finding the expropriation prohibited and the motion to dismiss properly granted. View "PLAQUEMINES PORT HARBOR & TERMINAL DISTRICT VS. NGUYEN" on Justia Law

Koch Methanol St. James, LLC sought approval from St. James Parish for a land use permit to upgrade its methanol production facility, including the installation of a connecting pipeline that would traverse a wetlands area. The Parish’s Land Use Plan includes specific provisions for allowable uses in wetlands, stating that such areas should remain unoccupied except for unique situations requiring a location in the water. The Parish Planning Commission interpreted this language as permitting Koch’s project under Tier 2 review, since the pipeline was considered a unique situation due to its necessity in connecting to an existing pipeline already located in the wetlands.After the Planning Commission approved the application, plaintiffs appealed to the Parish Council, which unanimously rejected the appeal. Plaintiffs then sought judicial review in the District Court for St. James Parish. The district court upheld the Council’s decision, finding that the Parish’s interpretation of the Plan was reasonable, the process was not arbitrary or capricious, and that Tier 2 review was appropriate for the project. The court also noted that the procedures followed were adequate and left room for reasonable differences of opinion.On appeal, the Louisiana Court of Appeal, Fifth Circuit, reversed the district court’s ruling, applying what it termed “de novo review.” The appellate court determined that the Plan required Tier 3 review for any use in wetlands unless specifically listed as allowable, and concluded that the Parish had failed to follow its own ordinance by applying Tier 2 review. The appellate court remanded the matter for further proceedings.The Supreme Court of Louisiana held that the appellate court erred by applying a de novo standard rather than the proper arbitrary and capricious standard of review. The Supreme Court vacated the appellate court’s ruling and reinstated the district court’s judgment, emphasizing deference to the Parish’s interpretation and decision-making authority in land use matters. View "ALEXANDER VS. ST. JAMES PARISH" on Justia Law

A company acquired a tax title to certain immovable property in St. Martin Parish, Louisiana, after the original owners failed to pay property taxes. Following the expiration of the redemptive period, the company mailed post-tax sale notice to the executrix of the former owner’s succession at the address listed in the succession proceedings. The company then filed a petition to quiet title, and the executrix was personally served. In response, she filed a reconventional demand seeking to annul the tax sale, alleging she had not received adequate pre-tax and post-tax sale notice. The City, which had previously held a small interest in the property, was also named as a third-party defendant.The 16th Judicial District Court sustained exceptions of prescription raised by the company and the City, dismissing the executrix’s claims as untimely. On appeal, the Louisiana Third Circuit Court of Appeal reversed, finding the reconventional demand was timely because it was filed within six months of service of the petition to quiet title, as required by La. R.S. 47:2266. The appellate court also held that the failure to provide pre-tax sale notice could render the tax sale absolutely null, and that the company and the City bore the burden of proving the reconventional demand was prescribed.The Supreme Court of Louisiana reviewed the case and held that, following the 2008 revision to Louisiana’s tax sale statutes, failure to provide pre-tax sale notice for tax sales occurring after January 1, 2009, no longer results in an absolute nullity. Instead, such defects are relative nullities, subject to specific prescriptive periods under La. R.S. 47:2287. The Court further held that a nullity action brought as a reconventional demand in a quiet title action must also comply with the six-month limitation in La. R.S. 47:2266. The Court affirmed the appellate ruling regarding prescription but reversed on the issue of absolute nullity, remanding for further proceedings. View "BELAIRE DEVELOPMENT & CONSTRUCTION, LLC VS. SUCCESSION OF SHELTON" on Justia Law

James and Kim McCormick own a 128.75-acre tract in Bossier Parish, Louisiana, accessed by a private driveway from Modica Lott Road. The property was part of a larger tract subdivided without adhering to the Bossier Parish Subdivision Code, which requires a plat description for split-out tracts. The McCormicks' deed, recorded in 2014, did not comply with these regulations. After a fire damaged their home in 2018, they applied for a building permit in 2020, which was denied by the Bossier Parish Police Jury (BPPJ) due to non-compliance with subdivision regulations.The McCormicks filed a mandamus action against Joe E. Ford, the Parish Engineer, seeking a court order for the permit. The trial court ruled in favor of the McCormicks, requiring the BPPJ to issue the permit, subject to certain conditions regarding the driveway. The Court of Appeal affirmed the trial court's decision to issue the permit but removed the conditions, stating that the five-year prescriptive period for enforcing subdivision regulations had expired, making the property non-conforming.The Supreme Court of Louisiana reviewed the case to determine if the McCormick Tract enjoyed non-conforming status under La. R.S. 9:5625, which provides a five-year prescriptive period for enforcement actions. The Court held that the prescriptive period began when the deed was recorded in 2014, and since no action was taken within five years, the property attained non-conforming status. Consequently, the McCormicks were entitled to the building permit without additional conditions. The Court affirmed the Court of Appeal's decision, confirming that the McCormick Tract complied with relevant statutes and regulations. View "MCCORMICK VS. FORD" on Justia Law

In August 2010, the Board of Supervisors of Louisiana State University filed a suit to expropriate property in New Orleans for constructing an academic medical center. The property owners, Allen Bickham and others, were named as defendants. A default judgment was obtained in March 2011, setting compensation for the property. In October 2011, James Alderdice intervened, claiming a mortgage on the property and seeking damages for lack of notice and demolition of the building.The Orleans Civil District Court granted a peremptory exception of no right of action against Alderdice in March 2014, dismissing his intervention. The Court of Appeal reversed this decision in March 2015, allowing Alderdice to assert his rights as a mortgagee. Alderdice then moved for a status conference and later for a trial date. In March 2017, a joint motion to continue the trial without date was filed and granted. Subsequent motions were filed, including a motion to set for trial in March 2020. The Board moved to dismiss the intervention as abandoned in June 2023, arguing that no steps had been taken for over three years.The Supreme Court of Louisiana reviewed whether the joint motion to continue trial without date constituted a "step" under Louisiana Code of Civil Procedure article 561, which would interrupt the abandonment period. The Court held that such a motion is not a step as it does not hasten the case towards judgment. However, the Court found that the joint motion reflected the parties' intent to advance the lawsuit, thus waiving the abandonment claim. Additionally, the Court noted that the abandonment period was suspended due to the Covid-19 emergency, and Alderdice's motion to set for trial in March 2020 interrupted the abandonment period. The Court affirmed the lower courts' rulings, denying the Board's motion to dismiss the case as abandoned. View "BOARD OF SUPERVISORS OF LOUISIANA STATE UNIVERSITY AND AGRICULTURAL AND MECHANICAL COLLEGE VS. BICKHAM" on Justia Law

A group of residents and a church, collectively referred to as the "Neighbors," sued Ghassan Korban, the Executive Director of the Sewerage and Water Board of New Orleans (SWB), for damages caused to their properties during a drainage project. The Neighbors won a judgment for inverse condemnation, but the SWB did not pay. The Neighbors then filed a federal lawsuit, which was dismissed. They subsequently filed a state lawsuit seeking a writ of mandamus to compel payment of the judgment. The district court dismissed the case, but the appellate court reversed, finding that the payment of a judgment for inverse condemnation is a ministerial duty and can be enforced via a writ of mandamus.The Supreme Court of Louisiana affirmed the appellate court's decision. The court found that the federal lawsuit did not bar the state lawsuit under the doctrine of res judicata because the federal court would have declined to exercise jurisdiction over the state mandamus claim. The court also found that the Neighbors had stated a valid cause of action for a writ of mandamus. The court held that the payment of a judgment based on inverse condemnation under the Louisiana Constitution is a ministerial duty and can be enforced via a writ of mandamus. The court remanded the case to the district court to devise a plan for satisfying the judgment within a reasonable period of time. View "WATSON MEMORIAL SPIRITUAL TEMPLE OF CHRIST V. KORBAN" on Justia Law

The case involves a dispute over the incorporation of the proposed City of St. George in Louisiana. The petition for incorporation was filed in 2018 and was approved by the governor, leading to a special election in which 54% of voters approved the incorporation. However, a legal challenge was filed by Baton Rouge’s Mayor-President and a Metropolitan Councilman, arguing that the petition for incorporation was deficient and that the proposed city would be unable to provide public services within a reasonable period of time. They also contended that the incorporation would have an adverse impact on Baton Rouge.The trial court denied the incorporation, finding that the petition minimally satisfied the statutory requirements and that the incorporation was unreasonable. The court found that St. George would operate at a deficit, affecting the timely provision of public services, and that lost tax revenue would significantly impact Baton Rouge. The court of appeal affirmed the denial of incorporation, finding the petition deficient as it failed to include a plan for the provision of services.The Supreme Court of Louisiana reversed the lower courts' decisions. The court found that the lower courts erred in their calculations of St. George's operating costs and potential revenues. The court also found that the lower courts failed to consider the cost savings that would result from Baton Rouge no longer having to provide services to St. George. The court concluded that St. George could provide public services within a reasonable period of time and that the incorporation was reasonable. The court therefore rendered judgment in favor of the proponents of incorporation. View "BROOME VS. RIALS" on Justia Law

The Supreme Court of Louisiana considered whether an architect and contract administrator had duty of care towards an employee of a subcontractor under the terms of a construction contract. The employee, Gustavo Bonilla, had been injured during a demolition job and filed a suit alleging negligence against Verges Rome Architects (VRA) and Morphy Makofsky, Inc. (MMI). VRA had been hired as a consultant for design and contract administration services. The trial court ruled in favor of VRA, but the court of appeal reversed this decision.Upon review, the Supreme Court of Louisiana found that the contract terms were clear and unambiguous, and did not impose a duty on VRA to oversee, supervise, or maintain the construction site or Mr. Bonilla’s safety. VRA was required to make weekly site visits to ensure work was progressing according to specifications. However, the contract specifically stated that these visits should not be construed as supervision of actual construction. Responsibility for site safety and construction methods was allocated to the contractor.The Court concluded that VRA could not be held liable for failing to perform duties it was not contractually obligated to undertake. As a result, the Supreme Court reversed the court of appeal's decision and reinstated the trial court's judgment, which granted summary judgment in favor of VRA. View "BONILLA VS. VERGES ROME ARCHITECTS" on Justia Law

The property at issue in this case was a small parcel, about 50-feet square, located in the middle of a block in the French Quarter. "Lot AA" was bounded on its north and east sides by an alley that accessed Conti Street to the east. On its west and south sides, the lot was contiguous with three parcels identified as lots 8, A, and B, currently owned by defendant, 1025 Bienville, LLC. Nearby lot 3, bordered on its north and west sides by the alley and fronting on Conti Street, was owned by 1026 Conti Condominiums, LLC, a sister entity of the plaintiff, 1026 Conti Holding, LLC. Bienville and Conti Holding both claimed ownership of lot AA. A dispute arose between the neighbors when Bienville refused to allow the owner of Conti Condominiums, Robert O’Brien, to park on lot AA. In a precursor to the present litigation, Conti Condominiums sued Bienville, alleging a servitude acquired by Conti Condominiums in the purchase of lot 3 granted it the right to park on lot AA. The courts disagreed and found the servitude does not extend to parking. During the course of the proceeding, O’Brien learned the public records did not contain a sell-out of lot AA. O’Brien located two of the lot's previous titleholder's grandchildren and paid them $100 to transfer their interest in the property to Conti Holding, a newly formed entity also owned by O’Brien. The heirs quit-claimed their interest to Conti Holding without warranty in an instrument signed by the parties in 2015. O’Brien also got a judgment of possession in the former titleholder's succession recognizing the grandchildren as the titleholder's only living heirs and reflecting the transfer of their interest in lot AA to Conti Holding. Relying on these documents, Conti Holding filed the underlying proceeding against Bienville seeking a judgment declaring Conti Holding the owner of lot AA. The Louisiana Supreme Court found Bienville acquired ownership of the lot by ten-year acquisitive prescription. View "1026 Conti Holding, LLC VS. 1025 Bienville, LLC" on Justia Law