376 So.3d 210
La. Ct. App.2023Background
- Property at 1905 Allen Street, New Orleans; ad valorem taxes unpaid for 2014; Precept purchased a 100% tax-sale interest at the March 10, 2015 sale (tax certificate recorded April 17, 2015).
- Meta (Meta H.) Dave filed Chapter 13 bankruptcy (filed May 26, 2016; confirmed Aug. 22, 2016). Precept sought relief from stay and filed a petition to quiet tax title Sept. 26, 2018.
- Meta Dave filed a separate petition to redeem/cancel the tax sale (Mar. 22, 2019) naming Precept and the City of New Orleans; Precept’s lis pendens exception led to dismissal without prejudice of Meta’s claims against Precept (Feb. 7, 2020).
- Cases were consolidated in April 2022. Precept moved for summary judgment seeking declaration of 100% ownership; Meta moved for partial summary judgment against the City asserting she had initiated redemption via bankruptcy payments.
- On Sept. 20, 2022 the district court (consolidated matters) granted Precept’s summary judgment (declaring Precept 100% owner), denied Meta’s partial summary judgment against the City, and overruled Meta’s peremptory exceptions (no right of action, res judicata). Meta appealed; Precept sought dismissal and frivolous-appeal damages.
Issues
| Issue | Plaintiff's Argument (Dave) | Defendant's Argument (Precept) | Held |
|---|---|---|---|
| Whether Precept’s certified tax-sale certificate establishes prima facie ownership and whether Meta validly initiated redemption by making payments through her Chapter 13 plan | Meta: she initiated redemption prior to the three-year redemptive period by bankruptcy-plan payments accepted by the City, so Precept’s title is defeasible | Precept: a certified tax-sale certificate is prima facie regular; Meta’s proffered evidence (affidavit and online/payment records) is unauthenticated/hearsay and fails to prove redemption initiation | Held for Precept: certificate shifted burden to Meta; her evidence was insufficient and redemption was not shown to have been initiated within the peremptive period |
| Whether the interlocutory rulings (denial of Meta’s summary judgment; overruling peremptory exceptions) are appealable / whether appeal should be dismissed | Meta: appealed the consolidated final judgment (Precept’s granted SJ) and seeks review of interlocutory rulings as part of the unrestricted appeal | Precept: moved to dismiss the appeal from Meta’s case as nonfinal | Held: Precept’s motion to dismiss denied; interlocutory rulings may be reviewed as part of an unrestricted appeal from the final judgment granting Precept SJ |
| Whether Precept’s intervention was barred by non-joinder / no right of action (i.e., City is exclusive agent for redemption) | Meta: the tax collector (City) is the exclusive party for redemption matters; Precept had no right to intervene and cannot relitigate after lis pendens dismissal | Precept: had a direct proprietary interest; intervention under La. C.C.P. art. 1091 was proper because a judgment for Meta against the City would directly affect Precept’s title | Held: Precept had a justiciable interest and connexity; intervention was proper and exceptions of non-joinder / no right of action were overruled |
| Whether Meta’s appeal was frivolous and deserved sanctions | Meta: prosecuted appeal in good faith | Precept: requested damages for frivolous appeal | Held: denied; appeal not shown to be unquestionably frivolous or filed for delay; damages not warranted |
Key Cases Cited
- Dave v. Witherspoon, 310 So.3d 593 (La. App. 4 Cir. 2020) (affirming dismissal based on lis pendens in related proceedings)
- NAR Solutions, Inc. v. Kuhn, 354 So.3d 1176 (La. 2022) (certified tax-sale certificate shifts burden to former owner to prove defects)
- Precept Credit Opportunities Fund, L.P. v. Walker, 343 So.3d 299 (La. App. 4 Cir. 2022) (enumerating the three statutory nullities that can defeat a tax sale)
- Heirs of John Beckwith LLC v. Sims, 315 So.3d 306 (La. App. 4 Cir. 2021) (summary judgment is an appropriate vehicle to resolve property ownership disputes)
- Cooper v. Brisco, 366 So.3d 552 (La. App. 4 Cir. 2022) (standard of appellate review for summary judgment is de novo)
- Elysian, Inc. v. Neal Auction Co., Inc., 325 So.3d 1075 (La. App. 4 Cir. 2021) (denial of a motion for summary judgment is not appealable)
- In re Precept Credit Opportunities Fund, L.P., 366 So.3d 409 (La. App. 4 Cir. 2022) (frivolous-appeal damages must be strictly construed and appeal must be unquestionably frivolous)
- Hampton v. Greenfield, 618 So.2d 859 (La. 1993) (standards for awarding frivolous-appeal damages)