Board of Supervisors of Louisiana State University & Agricultural & Mechanical College v. 2330 Palmyra Street, L.L.C.
80 So. 3d 1234
La. Ct. App.2011Background
- Consolidation of four appeals from property owners whose land was expropriated for LSUAMC/VA Hospital Complex.
- Property owners filed reconventional demands for pre-expropriation damages due to a 2007 moratorium (renewed in 2008 and 2009).
- Board of Supervisors answered with declinatory exception of lack of subject matter jurisdiction, dilatory prematurity, and peremptory exceptions of prescription, nonjoinder, and no cause of action.
- Expropriations filed July–August 2010; owners alleged values declined and opportunities lost due to the moratorium and expropriation process.
- Louisiana Constitution Article I, § 4 requires compensation to the full extent of loss; the case discusses inverse condemnation and the three-prong Chambers test.
- Lower courts granted various exceptions; the court reverses and remands, holding jurisdiction present and claims viable.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether reconventional demands state a valid claim for pre-expropriation damages | Palmyra and PFD allege inverse condemnation and full damages. | Board contends no cause of action due to timing and separateness of claims. | Valid; not two separate actions; claims arise from a single transaction; no CAO. |
| Whether the trial court lacked subject matter jurisdiction | Owners argue jurisdiction exists over pre-expropriation damages. | City moratorium remedies should be administrative, not judicial. | Trial court erred; district court has jurisdiction over these damages. |
| Whether the claims are prescribed | Damages began in 2007; timely under 3-year prescription for inverse condemnation. | Prescription applies from moratorium and/or expropriation dates. | Not prescribed; filing within three years of moratorium/expropriation relevant dates. |
| Whether the claims were premature | Expropriation inevitable; no need to exhaust administrative remedies. | Must exhaust waivers before suit. | Not premature; exhaustion not required given inevitability of expropriation. |
| Whether nonjoinder of a party warranted | City not required; State is the proper party for compensation. | Joinder necessary for complete relief. | Nonjoinder improper; complete relief can be accorded without the City. |
Key Cases Cited
- Everything on Wheels Subaru, Inc. v. Subaru South, Inc., 616 So.2d 1234 (La. 1993) (partial judgments on no-cause-of-action exceptions; multiple damages in single vs multiple actions)
- State, Through Dept. of Transp. and Development v. Chambers Inv. Co., Inc., 595 So.2d 598 (La. 1992) (three-prong test for a constitutional taking)
- City of New Orleans v. Badine Land Ltd., 985 So.2d 832 (La.App. 4 Cir. 2008) (inverse condemnation framework when taking without expropriation)
- Coleman v. Chevron Pipe Line Co., 673 So.2d 291 (La.App. 4 Cir. 1996) (full compensation principle; put owner in as good position)