Smitko v. Gulf South Shrimp, Inc.
2012 La. LEXIS 1963
| La. | 2012Background
- Gulf South Shrimp owned three Terrebonne Parish tracts and failed to pay 2002 ad valorem taxes; mortgage by First Louisiana Bidco later Source Bidco.
- Sheriff did not mail written notice of delinquencies or tax sales to Gulf South or lienholders; notices were sent to Gulf South in care of Source Bidco at a Baton Rouge address.
- Smitko purchased the properties at a June 25, 2003 tax sale; tax deeds recorded July 7, 2003; Gulf South did not redeem within the three-year period.
- Gulf South filed a petition to quiet tax title on November 16, 2006; curator appointed; Gulf South answered denying notice and seeking dismissal.
- Source Bidco intervened alleging lack of due process notice; Dulac Dat obtained possession; Gulf South filed reconventional demand in 2008 to annul the tax sale.
- Trial court granted summary judgment for the tax purchaser in 2009; court of appeal affirmed; Supreme Court granted writ to address due process notice and timeliness issues.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether lack of due process notice voids the tax sale | Gulf South argues notice was not provided to record owner or lienholders as required. | Dulac Dat contends the proceedings and notices were adequate or that timely annulment was not properly pursued. | Due process issues preclude confirmation; summary judgment reversed. |
| Whether Gulf South timely filed a reconventional demand to annul within six months | Gulf South asserts reconventional demand filed timely (Dec. 2006/April 2008) to attack the sale. | Dulac Dat argues absence of timely petition or reconventional demand bars annulment. | Reconventional demand timely; not dispositive due to due process deficiency. |
| Whether the due process failure renders the tax sale void ab initio | Gulf South asserts lack of notice nullifies the sale entirely under due process and Mennonite. | Dulac Dat contends sale validity stands absent proper proof of notice failure. | Failure to provide notice to Gulf South raises genuine issues of material fact; sale not warranted on record. |
Key Cases Cited
- Mennonite Bd. of Missions v. Adams, 462 U.S. 791 (U.S. 1983) (mortgagee is entitled to notice; due process requires notice when notice reasonably ascertainable)
- Mullane v. Central Hanover Bank & Trust Co., 339 U.S. 306 (U.S. 1950) (due process requires notice reasonably calculated to notify interested parties)
- Lewis v. Succession of Johnson, 925 So.2d 1172 (La. 2006) (notice is a constitutional requirement; want of notice fatal to tax sale)
- C & C Energy, L.L.C. v. Cody Investments, 41 So.3d 1134 (La. 2010) (Louisiana cases on notice under La. Const. Art. VII, §25; due process standards for notices)
- Scheen v. Hain, 141 La. 606, 75 So. 427 (La. 1915) (tax purchaser may challenge validity of tax sale on various grounds; defenses available)