The Court of Appeal,
The arguments before us generally concerned the question of the constitutionality of the provision itself. However, it is a well established rule that ordinances are presumed constitutional, City of New Orleans v. Ricker,
By amendment and reenactment of Section 30-12(2), a provision of the Minimum Housing Standards Code contained in the
Other provisions of the Minimum Housing Standards Code provided for the serving of notice upon the owner, his agent, or the parties in interest of the defects to be corrected and for a hearing to be had on the matter.. If the administrator finds, after notice and hearing, that the dwelling is defective, he shall set out his findings of fact in writing and serve upon the owner an order requiring correction of the defects or sufferance of the penalties.
This court said recently in White v. Louisiana Public Service Commission,
A determination of the applicability of the requirements of procedural due process to the administrativе process is generally based upon the distinction between legislative and judicial functions. If the activity of the administrative body tends to assimilate the exercise of the legislative function, then procedural due process is not demanded since no such limitation is placed upon the legislature itself. If, however, a judicial function is involved, an analogy to judicial process is made, and the procedural safeguards developed in the administration of justice must be observed. For discussions of the distinctions of legislative-judicial functions, see 1 Cooper, State Administrative Law pp. 136-42, 151-3 (1965); 1 Davis, Administrative Law Treatise §§ 7.03, 8.04 (1958); F. E. Cooper, The Lawyer and Administrative Agencies pp. 80-4 (1957); M. Forkosch, A Trеatise on Administrative Law §§ 28-33 (1956); R. Parker, Administrative Law pp. 33-53 (1952); B. Schwartz, An Introduction to American Administrative Law pp. 105-25 (2nd Ed. 1962).
No matter how the authorities categorize the due process requirements for legislative and judicial functions all would agree that where, as in the instant case, the administrative agency adjudicates private property rights and obligаtions, the parties must be afforded an opportunity to be heard. Where private rights cannot otherwise be protected and there is no compelling public interest for summary action, there must be a full hearing before administrative action. The agency is acting quasi-judicially weighing public interest and benefit against the private rights of one to remain unhampered in his ownership, possession, and use of his property. The agency’s activity in forcing the repair of private property is analogous if not tantamount to a taking of the property for public benefit.
The giving of notice of a hearing by administrative agencies need only be reasonable and need not meet the exacting requirements for notice in judicial proceedings. The type of notice and the method
Having determined that constitutional due process requires a full hearing and reason able notice before that hearing, we examine the circumstances of this case to see whether these requirements have been met.
The Division of Housing Improvement selected property owned by Tafaro’s Investmеnt Company, Inc., the premises at 2321-Felicity Street, as a dwelling which did not meet the requirements under the Minimum Housing Standards Code. Inspection was made of the premises in July of 1968, immediately after the housing code had been amended to include premises not unfit for habitation and to provide as an alternative to penal sanctions the right of the city to repair. A year and a half later, on January 28, 1970, the agency caused a contract to be let for repairs to the subject property. A few days after the letting of the contract, Mr. Tafaro, president and manager of the plaintiff corporation, died. On March 18, 1970, the secretary-treasurer of the corporation, having learned about the repairs, contacted the agency and was told to consult an attorney, and this suit was filed.
The plaintiff is a small family corporation owning rental properties throughout the city. Both before and during the proceedings connected with the subject property the agency had many contacts with Mr. Tafaro about other corporation properties which the agency believed did not conform to the code. Moreover, in all matters affecting the corporation’s other properties the agency had dealt with Mr. Tafaro and sought com■pliance through court proceedings when voluntary compliance was not forthсoming.
After the initial inspection of the subject property in July, 1968, the agency, having noted certain defects in the building, sent a letter dated September 11, 1968, to the corporation through regular mail to an address that was neither the domicile of the corporation nor the address of its registered agent.for service of process. The record fails to disclose what if any connection the address had with the plaintiff, or whether the letter was in fact received. Notice mailed to an incorrect address, in the absence of a showing of actual notice, does not constitute that notice which is required in these proceedings. Since the hearing sought to be had (if the mеeting called for in this letter can be called a hearing) is the only “hearing” ever scheduled by the agency, we could dispose of the case at this point because the record fails to establish notice in reasonable form or in fact.
There are, however, other deficiencies in these proceedings. The “notice” lеtter was an informal, casual, and even solicitous communication. It stated that the agency wished to “discuss” the housing requirements, that a hearing was scheduled so that plaintiff could “discuss this matter” with the agency, that the agency “wished to be of service”, and that the matter could be “discussed over the telephone which will eliminate the necеsssity of appearing in per
son”. Apart from the failure of proving any notice, this letter, even if delivered, is not couched in sufficiently unequivocal terms to give notice. The letter does not meet the requirement we have above set
Though we must keep in mind that the agency never afterwards attempted to schedule a hearing, it is pertinent to follow the several other communications sent to plaintiff by the agency.
In a second letter, sent by registered mail on October 1, 1968, and receipted by Mr. Tafaro, the agency stated that the subject property failed to meet the code requirements as shown in the speсifications attached. The letter “ordered” that the defects so listed be under repair by November 18, 1968, and stated that otherwise the agency would be required “to institute legal action”. The unambiguous language of the letter gave notice that the agency’s recourse in the future would be through court proceedings ; and certainly in the context оf the agency’s relationship with Mr. Tafaro he had every reason to believe that the agency’s resort would be to a court of law.
After a second inspection on November 15, 1968, which showed that no repair work was in progress, a third letter, dated November 21, simply contained a copy of the specifications of violations. Nо action was taken, and a fourth letter dated March 5, 1969, was sent by registered mail to another address, and was receipted by an employee of the corporation. That letter stated:
“March 5, 1969
“Tafaro Investment Co.
“1801 Carondelet Street
“New Orleans, Louisiana 70130
“Re: 2321-23 Felicity Street
“Dear Sirs:
“Section 30-12(2) of Chapter 30 of the Code of the City of New Orleans, known as the Minimum Housing Standards Code, has been amended and re-enacted to give this Division of Housing Improvement the authority to contract for repairs on property when the dwelling is found to violate certain of the Minimum Housing Standards and, after notification, the property owner does not make said repairs to the dwelling. On December 12, 1968, an ordinance was passed giving to the Housing Improvement Revolving Fund the sum of $15,000 to implement the ordinance.
“Your property at 2321-23 Felicity Street is being considered as a possible case under the provisions of the new section. This property was inspected on July IS, 1968 and to date, no appreciable repairs have been accomplished. We believe enough time has elapsed in order for you to have shown good faith in the matter. However, because of one reason or another, repairs have not been accomplished. In the interim, it has been noted that additional defects have occurred or were found to exist. Accordingly, we are sending you a list of the original defects and the additional ones. If we do not receive from you, within 30 days of the date of this letter, a copy of a written contract or contracts for repairs of all work, we will then make a decision as to vohether or not to use the new section of the ordinance in this case or to resort to other methods for compliance. Please consider this your final notice in this matter.
“Sincerely yours,
“Christopher J. Bellone
“CJB/pac
“Enclosure” (Emphasis supplied.)
The specification of violations— the finding of fact by the agency — had been changed because of newly discovered defects. The total repairs requirеd to meet the code requirements, the basis for the repair contract to be let, are for the first time set forth in full detail. However, the agency had not provided for notice or
The constitutional due process requirement of notice and hearing in administrative proceedings has not been met by this agency. While the ordinance does provide for notice and hearing, that procedure was not followed in such a manner as to satisfy the due process requirements of reasonable notice and adequate hearing. 2 The result is a clear illustration of thé necessity for administrative agencies, especially when acting adjudicatively, to comply, with reasonable procedural requirements at least to the point of affording the parties due process.
The agency has acted adjudicatively to deprive plaintiff of valuable property rights by a method not too dissimilar to public condemnation and appropriation, and has done so without notice or hearing. No argument can be made that the administrative agency had to act quickly for the protection of the public so that summary prоceedings were necessary. Indeed, the agency’s very casual and discontinuous procedure over the extended period of time clearly speaks to the contrary on this point.
We hold that the agency has acted contrary to constitutional requirements in contracting without notice and hearing for the repairs of рlaintiff’s property at plaintiff’s cost.
For the reasons assigned the judgment of the trial court is set aside insofar as it declared unconstitutional Section 30-12 (2) (B) of the Code of the City of New Orleans; in all other respects it is affirmed.
Notes
. Although the judgment itself does not declare the section of the code unconstitutional but simply enjoins the defendants from furthеr action, the seasons for judgment hold the law unconstitutional. Under Schlekau v. City of New Orleans,
. As previously noted, we pretermit a determination of whether the notice and hearing requirements as set forth in the code and the other provisions of the code as well are, in and of themselves, sufficient to meet the constitutional test.
