332 So.3d 764
La. Ct. App.2021Background
- In 2002 Rita H. Patterson donated 2825 Cherry Street to the Rita H. Patterson Revocable Living Trust; Patterson was settlor/trustee and Ingrid C. Foster was named successor trustee.
- In 2009 the City mailed delinquent-tax and tax-sale notices addressed to “Foster Ingrid C ET AL” at the property; both mailings were returned undeliverable; the property was sold at tax sale on December 3, 2009 and a tax-sale deed to Alex Henderson was recorded in January 2010.
- Henderson possessed the property and paid taxes after the sale. In June 2018 the Trust (represented by Foster) sold the property to Michael Klein, who then posted a 10-day notice to vacate; Henderson had earlier obtained a default quiet-title judgment against Foster (later nullified by the district court).
- Klein sued to nullify the tax sale and obtain possession; he later moved for summary judgment asserting (a) cancellation under La. R.S. 47:2153(C)(1) and (b) redemption nullity for lack of pre- and post-sale notice. The City and Klein entered a consent judgment canceling the 2009 tax sale; Henderson was not a party to that consent.
- The district court granted Klein summary judgment declaring the 2009 tax sale null for failure to notify the proper party and ordered possession delivered to Klein, but the judgment did not set the reimbursement amount owed to Henderson under constitutional/statutory provisions.
- On appeal this Court affirmed the nullity ruling, reversed the immediate eviction/transfer of possession (because reimbursement had not been determined/paid), and remanded for further proceedings.
Issues
| Issue | Plaintiff's Argument (Klein) | Defendant's Argument (Henderson) | Held |
|---|---|---|---|
| Whether the City must cancel the 2009 tax sale under La. R.S. 47:2153(C)(1) | City failed to give actual or reasonable notice to the Trust, so collector must cancel and refund purchaser under §2153(C)(1) | Henderson was not bound by City–Klein consent; §2153(C)(1) was enacted later and is not retroactive to 2009 sale | Court: Klein not entitled to relief under §2153(C)(1) because statute was not in effect in 2009 and Henderson was not bound by the consent judgment (denied on that ground) |
| Whether the 2009 tax sale is a redemption nullity for lack of pre- and post-sale notice | City sent all pre-sale notices to the wrong addressee and took no reasonable additional steps after mailings were returned; post-sale notices were also deficient, so sale is a redemption nullity | Notices addressed to “Foster Ingrid C et al” were sufficient (Foster was successor trustee); factual disputes exist about notice and possession | Court: affirmed — the City failed to notify the proper party and did not take reasonable steps after returned mailings; the tax sale and deed are null as a redemption nullity |
| Whether the court may order Henderson evicted and deliver possession to Klein immediately after declaring the sale null | Klein sought possession immediately after nullity declaration | Henderson argued the constitution/statute require reimbursement of the purchaser (tax buyer) before nullity takes effect, so possession cannot be transferred until amounts are set/paid | Court: reversed as to immediate eviction — under La. Const. art. VII §25(C) and La. R.S. 47:2290 the nullity is ineffective until purchaser is reimbursed; case remanded to determine/set reimbursement and preserve Henderson’s possession until paid |
Key Cases Cited
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (notice must be reasonably calculated to apprise interested parties)
- Mooring Tax Asset Grp., L.L.C. v. James, 156 So.3d 1143 (La.) (a judgment annulling a tax sale cannot be effective until purchaser is reimbursed)
- Cent. Properties v. Fairway Gardenhomes, LLC, 225 So.3d 441 (La.) (law in effect at time of tax sale governs)
- Brookewood Invs. Co. v. Sixty-Three Twenty-Four Chef Menteur Hwy., L.L.C., 116 So.3d 899 (La. App. 4 Cir.) (amendments to tax-sale statutes apply prospectively)
- Surcouf v. Darling, 177 So.3d 1085 (La. App. 4 Cir.) (due-process notice requirements for tax sales)