South Lafourche Levee District v. Chad M. Jarreau
2017 La. LEXIS 648
| La. | 2017Background
- South Lafourche Levee District adopted a resolution (Jan. 10, 2011) appropriating a permanent levee servitude over ~0.913 acres of Chad Jarreau’s 17.1‑acre tract for a hurricane protection project; Jarreau continued excavating dirt and the district sought injunction and damages.
- Jarreau rejected the district’s tender of $1,326.69 as full compensation and sued for compensation (land value, severance, business/economic losses, general damages) and attorneys’ fees; Bayou Construction intervened claiming lost profits.
- Trial court awarded: damages to levee district for wrongful excavation, just compensation $11,869, economic/business losses $164,705.40, and attorneys’ fees under La. R.S. 13:5111 (large award).
- On appeal the First Circuit (de novo) held the appropriation was a constitutional “taking” for which just compensation (fair market value) is due; it reversed the economic/business loss awards and found the FMV to be $11,869, but awarded attorneys’ fees under La. R.S. 13:5111.
- The Louisiana Supreme Court reviewed whether (1) the 2006 amendments limit or eliminate compensation for levee appropriations for hurricane projects, (2) the proper measure of damages, and (3) which statute governs attorneys’ fees (La. R.S. 38:301(C)(2)(f) vs La. R.S. 13:5111).
Issues
| Issue | Plaintiff's Argument (Jarreau / Bayou) | Defendant's Argument (Levee Dist.) | Held |
|---|---|---|---|
| Whether 2006 constitutional/statutory amendments eliminate compensation for appropriations for hurricane protection projects | Amendments at most limit measure to Fifth Amendment; at minimum FMV is required | Amendments eliminate compensation for appropriations (Fifth Amendment does not require payment for levee servitudes) | Amendments reduced measure from “full extent of the loss” to Fifth‑Amendment “just compensation” (FMV), not elimination of compensation; Jarreau entitled to FMV |
| Proper measure of damages for permanent levee servitude appropriations for hurricane protection | FMV at time of appropriation based on current use; plus business/economic losses for value of excavated dirt | District argued (implicitly) that business losses are not compensable under FMV for servitude appropriations | Held: measure is FMV at time of appropriation, based on current use before proposed appropriation, excluding change in value caused by levee and excluding business/economic losses |
| Whether value of excavated dirt / business losses are recoverable as part of compensation | Jarreau argued lost profits and value of excavated dirt should be compensated (citing Kimball Laundry, National Food) | Levee Dist. argued dirt value is subsumed in surface FMV and economic losses are not compensable | Held: economic/business losses and separate value for excavated dirt are not recoverable; those losses are not compensable here under the servitude appropriation framework |
| Which statute governs attorneys’ fees (La. R.S. 38:301(C)(2)(f) v. La. R.S. 13:5111) | Jarreau argued La. R.S. 13:5111 (reasonable fees actually incurred) controls and yields large fee award | Levee Dist. argued the levee‑specific statute La. R.S. 38:301(C)(2)(f) (25% cap on the difference) controls as the specific statutory scheme | Held: La. R.S. 38:301(C)(2)(f) is the specific statute and governs; trial/court‑of‑appeal award under 13:5111 reversed; fee awarded = $2,635.57 |
Key Cases Cited
- Horne v. Department of Agriculture, 135 S. Ct. 2419 (U.S. 2015) (defines Fifth Amendment just compensation as market value at time of taking)
- United States v. 50 Acres of Land, 469 U.S. 24 (U.S. 1984) (market value at time of taking measures just compensation)
- Kimball Laundry Co. v. United States, 338 U.S. 1 (U.S. 1949) (government occupation may require compensation for business‑related losses when the taking appropriates business use)
- General Box Co. v. United States, 351 U.S. 159 (U.S. 1956) (approach to appropriation and Fifth Amendment takings analysis)
- Eldridge v. Trezevant, 160 U.S. 452 (U.S. 1896) (riparian owner’s property held subject to public levee servitude; appropriation historically not a Fifth Amendment taking)
- West Jefferson Levee District v. Coast Quality Construction Corp., 640 So.2d 1258 (La. 1994) (discusses fair market value and highest and best use in levee appropriation/expropriation contexts)