304 So.3d 581
La. Ct. App.2020Background
- Libertas Tax Fund I, LLC sued to confirm a tax-sale title (asserting 1% ownership) and to obtain partition by licitation of 3660 Lake Aspen Dr. W., Gretna, LA, alleging the three-year redemption period had expired.
- The Mompoints (record owners) failed to answer; only the Louisiana Department of Revenue answered.
- Libertas obtained a preliminary default (Jan. 9, 2020) and moved to confirm; it attached affidavits, a tax-sale certificate, purchase agreement, and lien notices to its motion.
- The trial court entered a final default judgment (Jan. 27, 2020) without a hearing in open court, quieting Libertas’ tax-sale title, reforming the certificate, terminating certain encumbrances, and ordering partition by licitation (sale without minimum).
- Subsequent consent partial judgments between Libertas and taxing authorities modified encumbrance attachments and directed deposit of proceeds; the Mompoints appealed.
- The Fifth Circuit vacated and remanded, concluding the trial court legally erred by confirming the default without a hearing and without admitting competent evidence to establish a prima facie case; the partition ruling fell with the defective quiet-title confirmation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the trial court could confirm the preliminary default without a hearing in open court | Libertas: confirmation could occur in chambers; this is a tax-sale/partition action not governed by the specific evidentiary rules of La. C.C.P. arts. 1702(B)/(C) and 1702.1 | Mompoint: a hearing in open court was required; Libertas’ exhibits were never admitted on the record and La. C.C.P. art. 1702.1 requirements were not met | Court: trial court erred; a hearing and admissible evidence were required to establish a prima facie case; confirmation without such proof was a fatal procedural defect; vacated judgment |
| Whether the final default judgment was sufficiently precise, definite, and certain | Libertas: judgment properly described relief and reformed certificate consistent with tax-sale claim | Mompoint: judgment ambiguous/deficient and could not stand as a valid final default | Court: did not reach merits because primary procedural error (lack of hearing/admitted evidence) required vacatur |
| Whether Libertas established a prima facie case to confirm the default (quiet title) | Libertas: attached tax-sale certificate, affidavits, lien notices and other documents supported its claim | Mompoint: documents were not admitted on record; absent live testimony or certified tax deed, Libertas failed to prove its demand | Court: Libertas failed to present competent evidence admitted into the record to establish a prima facie case; confirmation improper |
| Whether Libertas could demand partition by licitation before being a true co-owner | Libertas: entitlement flows from confirmed tax-sale title | Mompoint: Libertas was not a confirmed co-owner and so could not compel partition | Court: because the quiet-title confirmation was invalid, the partition-by-licitation ruling was also erroneous and was vacated (court did not decide ownership merits) |
Key Cases Cited
- ASI Fed. Credit Union v. Leotran Armored Sec., LLC, 259 So.3d 1141 (La. App. 5 Cir. 2018) (discusses review of default judgments and when record defects negate the presumption supporting a default)
- Arias v. Stolthaven New Orleans, LLC, 9 So.3d 815 (La. 2009) (standards for confirming default judgments and necessity of establishing a prima facie case)
- Morice v. Alan Yedor Roofing, 216 So.3d 1072 (La. App. 5 Cir. 2017) (records that fail to support default judgments remove the presumption in favor of defaults)
- Sessions & Fishman v. Liquid Air Corp., 616 So.2d 1254 (La. 1993) (confirmation of default requires competent evidence establishing the demand as if the allegations were denied)
- Mount v. Hand Innovations, LLC, 105 So.3d 940 (La. App. 5 Cir. 2012) (confirmation of default is limited to sufficiency of evidence offered in support)
- Bridges v. Citifinancial Auto Corp., 266 So.3d 939 (La. App. 1 Cir. 2018) (tax debts do not qualify for the exceptions allowing confirmation without a hearing under La. C.C.P. arts. 1702(C) and 1702.1)