200 So. 3d 851
La. Ct. App.2016Background
- Robertson and co-owner bought Lot 23 in Caddo Parish; Robertson built and occupied a house and obtained a homestead exemption that covered the assessed value (under $75,000).
- In 1999 the tax assessor cancelled Robertson’s homestead exemption after returned mail; Robertson alleges he never received notice of cancellation, the 1999 tax delinquency, the 2000 adjudication to the parish, or the 2010 parish cash sale to Stonecreek Builders.
- The parish adjudicated the property for unpaid 1999 taxes in 2000; no redemption occurred and the parish later conveyed whatever interest it held to Stonecreek in a 2010 cash sale; Stonecreek then sought to evict Robertson.
- Robertson sued to annul the homestead revocation, the 2000 adjudication, and the 2010 cash sale, arguing the assessor’s cancellation procedure and failure of notice made those acts absolute nullities because no taxes were actually due once the exemption was properly applied.
- Trial court credited Robertson’s testimony and assessor records showing mailed postcards were returned; it annulled the homestead revocation, the 2000 adjudication, and the 2010 cash sale as absolute nullities.
- On appeal the court affirmed the nullities but remanded to determine reimbursement to Stonecreek under La. Const. art. VII, §25(C) / La. R.S. 47:2291 because the trial court had not adjudicated who must pay the purchaser’s taxes, price and costs prior to final cancellation.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Validity of homestead revocation | Assessor improperly revoked permanent homestead by cancelling after returned postcards; statute forbids unilateral testing; revocation was absolute nullity | Revocation followed local practice after undelivered postcards; actual notice not required | Revocation was improper and annulled — local cancellation practice cannot defeat constitutional homestead right |
| Validity of 2000 adjudication to parish | Because exemption was wrongly revoked, no taxes were due; adjudication and subsequent transfer are nullities for lack of valid tax lien and inadequate notice | Sheriff (tax collector) complied with notice statutes (certified mail, publications); tax deed is presumptively valid | Adjudication nullified — no manifest error in finding no taxes were due and insufficient notice to debtor |
| Validity of 2010 cash sale to Stonecreek | Sale derived from an invalid adjudication; sale is therefore null and void | Stonecreek complied with statutory procedures for sale and is a good faith purchaser; sale should stand | Cash sale nullified as it flowed from an adjudication that never should have existed |
| Reimbursement to purchaser after annulment | Purchaser (Stonecreek) must seek recovery against parish or sheriff; if taxes were never due, owner should not be forced first to pay | Under La. Const. art. VII, §25(C) and La. R.S. 47:2291 purchaser is entitled to reimbursement of price, taxes and costs before annulment becomes effective; current owner may be liable | Court affirmed nullity but remanded to determine reimbursement procedures and who must pay purchaser’s taxes/costs prior to final cancellation (preliminary judgment pending reimbursement) |
Key Cases Cited
- LaNasa v. City of New Orleans, 855 So.2d 404 (La. App. 4th Cir. 2003) (tax-exemption cancellation by local practice strictly construed; failure to prove owner received notice supports annulment)
- Tietjen v. City of Shreveport, 36 So.3d 192 (La. 2010) (due-process notice required for tax sales affecting property rights)
- Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (U.S. 1983) (mortgagee entitled to notice reasonably calculated to apprise of pending tax sale)
- Mooring Tax Asset Grp., L.L.C. v. James, 156 So.3d 1143 (La. 2014) (when an absolute nullity is declared, purchaser is entitled to reimbursement of price, taxes and costs before annulment takes effect; current owner may be liable)
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (U.S. 1950) (due-process standard: notice reasonably calculated to apprise interested parties)