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268 So. 3d 1124
La. Ct. App.
2018
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Background

  • Property at 3250 Lone Oak Drive; owner Zenobia White failed to pay 2010 ad valorem taxes and a tax sale certificate was purchased by Alpha Capital at a June 6, 2011 tax sale.
  • Parish mailed pre-sale delinquency notice to White's prior address; that mailing was returned as unclaimed. No successful pre-sale notice to the property address was established.
  • Alpha Capital recorded the tax sale certificate June 30, 2011, then sent statutorily prescribed post-sale "Notice of Right to Redeem" by certified and regular mail to White (including the property address); White received the certified mailing during the redemption period but did not redeem. Redemption period expired June 30, 2014.
  • Alpha Capital sued to quiet title; White filed a petition to annul the tax sale. Alpha moved for summary judgment attaching the tax sale certificate, returned pre-sale envelope, the post-sale notice and signed receipt, and related affidavits; White did not oppose. Trial court granted summary judgment confirming Alpha’s tax title; White appealed.
  • On appeal, the court examined whether post-sale notice satisfied due process under the 2008 statutory revision to La. tax sale law (Act 819) and treated alleged defects as potential relative nullities (redemption, payment, or R.S. 47:2162 nullities). The court affirmed summary judgment and denied Alpha’s request to convert White’s suspensive appeal to a devolutive appeal as untimely.

Issues

Issue Plaintiff's Argument (White) Defendant's Argument (Alpha Capital) Held
Whether lack of pre-sale notice renders tax sale an absolute nullity Pre-sale notice was inadequate; sale is an absolute nullity for due process violation Under the 2008 statutory scheme, pre-sale defects do not render sale absolutely void; post-sale notice can cure Pre-sale notice defect does not make sale absolutely null; cure via statutorily compliant post-sale notice is effective
Whether Alpha’s post-sale "right to redeem" notice satisfied due process and statutory requirements Post-sale notice cannot cure constitutionally defective pre-sale notice (argued, citing contrary authority) Post-sale notice complied with LSA-R.S. 47:2156, was sent >6 months before redemption expiry, and satisfied due process Post-sale notice met statutory form/timing and satisfied due process; White was "duly notified"
Whether White established a redemption nullity to annul the sale Contended procedural defects in notice warranted annulment Alpha produced prima facie tax sale certificate and proof of compliance; burden shifted to White to show a redemption nullity; she produced no evidence No genuine issue of material fact; White failed to prove a redemption nullity; summary judgment for Alpha affirmed
Whether Alpha could convert White’s suspensive appeal to a devolutive appeal for late bond N/A (White posted bond late) Alpha argued the late posting of appeal security justified conversion/dismissal of suspensive appeal Alpha’s procedural objection was untimely under La. C.C.P. art. 2161; relief denied; appeal remains suspensive

Key Cases Cited

  • Lewis v. Succession of Johnson, 925 So.2d 1172 (La. 2006) (prior law: pre-sale notice required to avoid absolute nullity)
  • Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (U.S. 1983) (due process constraints on notice for property interests)
  • Central Properties v. Fairway Gardenhomes, LLC, 225 So.3d 441 (La. 2017) (2018 statutory scheme allows post-sale notice by purchaser to satisfy due process and statutory notice requirements)
  • Adair Asset Mgmt., LLC v. Turney, 195 So.3d 501 (La. App. 2 Cir. 2016) (post-sale notice can cure pre-sale notice deficiencies under the revised tax-sale statutes)
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Case Details

Case Name: Alpha Capital U.S. Bank v. White
Court Name: Louisiana Court of Appeal
Date Published: Dec 21, 2018
Citations: 268 So. 3d 1124; 2018 CA 0827
Docket Number: 2018 CA 0827
Court Abbreviation: La. Ct. App.
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    Alpha Capital U.S. Bank v. White, 268 So. 3d 1124