290 So.3d 225
La. Ct. App.2020Background
- Property at 933 Bourbon Street in the French Quarter (where short-term rentals are prohibited) is owned by Nola Bourbon, LLC.
- City served notice April 30, 2018 alleging STR violations; administrative hearing held May 16, 2018 (no live testimony; parties offered exhibits).
- Hearing officer found STR violations and imposed maximum fines: $500 per violation totaling $3,000, plus a $75 hearing fee.
- Nola Bourbon produced a written lease (counsel said it memorialized a prior oral lease) renting a unit for five nonconsecutive days per month (60 days/year).
- Nola Bourbon argued the City’s evidence was inadmissible hearsay and insufficient under the residuum rule and claimed fines were excessive; due process arguments were waived.
- Trial court affirmed; Fourth Circuit affirmed, concluding the lease itself proved STR use and upheld the fines.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the City proved the Property was used as an STR (sufficiency / hearsay / residuum) | City’s hearsay exhibits were inadmissible or, if admissible, insufficient under the residuum rule | City relied on business‑records exception and that hearsay may be admissible in administrative proceedings | Court found it unnecessary to resolve hearsay/residuum issues because Nola Bourbon’s own lease showed short-term rental use and affirmed the violation |
| Whether the $500-per-violation fines were excessive | $500 per violation is excessive | Fines appropriate given ongoing, continuing violations evidenced by the lease | Court held fines were not excessive and affirmed the penalty |
Key Cases Cited
- Bourgeois v. Louisiana State Racing Comm'n, 51 So.3d 851 (La. App. 4 Cir. 2010) (standards for appellate review of agency adjudications)
- DMK Acquisitions & Properties, L.L.C. v. City of New Orleans, 124 So.3d 1157 (La. App. 4 Cir. 2013) (discussion of residuum rule and hearsay in administrative proceedings)
- Smith v. State, Dep't of Health & Hospitals, 895 So.2d 735 (La. App. 2 Cir. 2005) (agency-review standards on appeal)
- Reaux v. Louisiana Bd. of Med. Examiners, 850 So.2d 723 (La. App. 4 Cir. 2003) (distinguishing appellate review of administrative decisions)
- Armstrong v. Louisiana State Bd. of Medical Examiners, 868 So.2d 830 (La. App. 4 Cir. 2004) (scope of judicial review under La. R.S. 49:964(G))
- Mosing v. Domas, 830 So.2d 967 (La. 2002) (waiver of constitutional claims not pursued on appeal)