225 So. 3d 441
La.2017Background
- Fairway owned three condominium units; Resource Bank held a recorded mortgage on the properties.
- Fairway failed to pay 2009 ad valorem taxes; tax sale certificates issued June 2010 to private purchasers (Central; Husker).
- Tax collector mailed pre- and post-sale notices to owner (returned), but did not mail any notices to Resource Bank; purchasers later mailed post-sale notices to bank in 2012.
- Properties were not redeemed by July 8, 2013; purchasers filed petitions to quiet title; Resource Bank sought annulment for lack of pre- and adequate post-sale notice.
- District court found purchasers’ post-sale notices to Resource Bank insufficient and gave Resource Bank 30 days to redeem; court of appeal affirmed, reasoning the tax collector’s mandatory post-sale notice (La. R.S. 47:2156(B)) was not provided and that omission required setting aside the sales.
- Louisiana Supreme Court granted review to decide whether post-sale notice required by La. R.S. 47:2122(4) may be satisfied by a tax sale purchaser under La. R.S. 47:2156(A) when the tax collector fails to send notice under 47:2156(B).
Issues
| Issue | Plaintiff's Argument (Purchasers) | Defendant's Argument (Resource Bank) | Held |
|---|---|---|---|
| Whether post-sale notice requirement may be satisfied by private tax sale purchaser when tax collector fails to send statutorily mandated notice | 2008 statutes allow a purchaser to send post-sale notice (R.S. 47:2156(A)); an interested party is "duly notified" if an effort meeting due process and R.S. 47:2156 is made regardless of who sends notice (R.S. 47:2122(4)) | Statute’s mandatory language (R.S. 47:2156(B) "shall") requires the tax collector to send post-sale notice; purchaser’s notice cannot substitute; failure by collector voids sale for lack of due process | Court held purchaser's post-sale notice under R.S. 47:2156(A) can satisfy the statute and cure collector's omission; reversed court of appeal and remanded |
Key Cases Cited
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (establishes notice must be reasonably calculated to apprise interested parties)
- Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (mortgagee has substantial property interest and is entitled to reasonably calculated notice of tax sale)
- Lewis v. Succession of Johnson, 925 So.2d 1172 (La. 2006) (constitutional requirement that tax collector provide notice in manner provided by law)
- C & C Energy, L.L.C. v. Cody Investments, L.L.C., 41 So.3d 1134 (La. 2010) (due-process notice requirements in tax sale context)
- Smitko v. Gulf South Shrimp, Inc., 94 So.3d 750 (La. 2012) (discussing notice requirements and prior tax-sale law)
- Adair Asset Mgmt., LLC v. Turney, 195 So.3d 501 (La. App. 2 Cir. 2016) (post-sale purchaser notice can cure taxing authority’s notice deficiency)