129 So. 3d 653
La. Ct. App.2013Background
- Browns purchased 7047 Lake Willow Dr. in 1997; property later tax-sold to Mooring in 2004; tax deed issued 2004 and recorded 2005.
- Browns sold property to NARA, L.L.C. in 2007, which then sold to Mr. James in 2008; Mooring filed a quiet-title action in 2010 seeking to terminate James’ interest.
- Trial court granted summary judgment nullifying the 2004 tax sale and deed due to lack of proper pre-sale notice and advertisement.
- Mooring sought to recover costs under La. R.S. 47:2291; James contended statute not retroactive and no reimbursement duty against a third-party purchaser.
- Trial court allowed Mooring to submit proof of costs; James moved to contest; court ultimately awarded no reimbursement and declared nullity with immediate effect.
- Mooring appeals challenging the denial of costs recovery and the immediate effect of the nullity ruling.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether 47:2291 applies to determine costs in a pre-2009 tax sale nullity | Mooring entitled to costs under 47:2291 | Statute applies prospectively to post-2009 sales only | 47:2291 not retroactive; inapplicable here |
| Whether Art. VII, § 25(C) requires reimbursement by James to Mooring as a third-party purchaser | James must reimburse Mooring for expenditures | James is not liable as third-party purchaser; remedies limited to tax debtor/record owner | No reimbursement duty by James under the circumstances |
| Whether the judgment should take effect immediately or wait for payment of costs | Nullity should be prospective until costs are paid | Immediate effectiveness consistent with the nullity ruling | Judgment and nullity to have immediate effect; no error in immediate cancellation |
| Whether Mooring’s status as third-party purchaser alters liability analysis under Brookewood and Lindner | Brookewood expands liability to third-party purchaser | Brookewood limited reimbursement to tax debtor/record owner; James not liable | James not obligated to reimburse Mooring; Brookewood distinguished |
Key Cases Cited
- Brookewood Investments Co. v. Sixty-Three Twenty-Four Chef Menteur Highway, LLC, 108 So.3d 329 (La. App. 4th Cir. 2013) (limits remedy to tax debtor/record owner; caveat emptor applies to third-party purchasers)
- Lindner v. City of New Orleans, 40 So. 736 (La. 1906) (tax purchaser bears risk; remedy against tax debtor/record owner)
- Smitko v. Gulf South Shrimp, Inc., 94 So.3d 750 (La. 2012) (former owner not time-barred; notice deficiencies affect reimbursement rights)
- Mattern v. Parqutt, 123 So. 189 (La. App. Orl. 1929) (statutory expenditures; reimbursement timelines in prior framework)
- Robinson v. Zor, Inc., 174 So.2d 154 (La. App. 4th Cir. 1965) (historical clawback of costs from tax sale)
- Garry v. Zor, Inc., 181 So.2d 828 (La. App. 4th Cir. 1966) (related costs/reimbursement principles in tax sales)
- Lindner v. City of New Orleans, 116 La. 372, 40 So. 736 (La. 1906) (early rule: purchaser bears risk; reimbursement only from tax debtor)