Sid-Mar's Restaurant & Lounge, Inc. v. State ex rel. Governor
182 So. 3d 390
La. Ct. App.2015Background
- After Hurricane Katrina the Governor issued Executive Order KBB 2006-6 commandeering Sid‑Mar’s restaurant property for a 17th Street Canal flood control project; plaintiffs sued for inverse condemnation.
- Trial court (and this Court in Sid‑Mar’s I) found plaintiffs owned the land and the State was liable.
- At bench trial (Feb. 10, 2015) plaintiffs were awarded: land value (unchallenged on appeal), economic damages ($808,249 total), and mental‑anguish awards ($50,000 each to Mrs. Burgess and Mr. Burgess). The court separately awarded attorneys’ fees.
- The State appealed, arguing (1) La. Const. Art. I, § 4(G) and La. R.S. 49:214.6.5 limit compensation to the Fifth Amendment standard and should apply retroactively; (2) mental‑anguish awards are unavailable for lawful statutory takings; (3) ten years of economic damages is excessive; and (4) interest should run from judicial demand, not the taking.
- Plaintiffs cross‑appealed seeking more mental‑anguish damages and attorneys’ fees for related federal litigation and for defending the appeal.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Retroactivity of Art. I, § 4(G) and R.S. 49:214.6.5 | Plaintiffs contend statutes/constitutional amendment do not cut off their pre‑existing rights | State: §4(G) and R.S.49:214.6.5 reflect legislative intent to limit compensation to Fifth Amendment and should apply retroactively | Statute and §4(G) apply prospectively only; no clear legislative intent to make them retroactive; R.S.49:214.6.5 is substantive and does not apply to this taking |
| Mental‑anguish damages for inverse condemnation | Plaintiffs seek recovery for emotional distress from loss of business and protracted litigation | State: general (mental‑anguish) damages are unavailable for lawful/statutory takings; allowed only where tortious/bad‑faith conduct occurred | Reversed: mental‑anguish damages not recoverable as a matter of law for this lawful statutory taking absent tortious/unlawful conduct |
| Scope/duration of economic damages | Plaintiffs: business goodwill and unique site justify multi‑year multiplier (trial used 10 years) | State: multiplier excessive; damages should end when reopening was feasible (approx. 2010) — roughly 3–4 years | Affirmed trial court’s 10‑year award; trial did not abuse discretion in adopting plaintiffs’ expert’s multiplier given unique location, goodwill, and evidence |
| Start date for legal interest | Plaintiffs: interest should run from taking date | State: interest should run from judicial demand date | Interest on land value and economic damages runs from date of taking; A.K. Roy controlling |
| Attorneys’ fees for related federal litigation & appellate fees | Plaintiffs seek fees incurred in related federal condemnation and additional appellate fees | State contends La. R.S.13:5111(A) does not authorize fees for separate federal suit; no automatic appellate fee award | Trial court properly limited fees to those incurred in state court litigation; fees for related federal proceedings denied; no additional appellate‑fee award remanded |
Key Cases Cited
- M.J. Farms, Ltd. v. Exxon Mobil Corp., 998 So.2d 16 (La. 2008) (framework for determining statutory retroactivity and legislative intent)
- Williams v. City of Baton Rouge, 731 So.2d 240 (La. 1999) (mental‑anguish recoverable only when taking is tortious/bad faith)
- A.K. Roy, Inc. v. Board of Commissioners, 117 So.2d 60 (La. 1960) (compensation due from time of taking; interest accrues from taking)
- Mathis v. DeRidder, 599 So.2d 378 (La. Ct. App.) (inverse condemnation damages limited where taking was lawful and not tortious)
- Terrebonne Parish Levee Dist. v. South Lafourche Tidal Control Levee Dist., 445 So.2d 1221 (La. 1984) (change to measure of compensation is substantive)