Vieux Carre Property Owners, Residents & Associates, Inc. v. Hotel Royal, L.L.C.Vieux Carre Property Owners, Residents & Associates, Inc. v. Hotel Royal, L.L.C.
Lead Opinion
laThis appeal raises the question of whether private associations have standing to prevent alleged violations of New Orleans city zoning ordinances. Because the organizations in this case have failed to demonstrate a real and actual interest in the suit, we affirm the trial court’s grant of the exception of no right of action.
FACTS AND PROCEDURAL HISTORY
Appellants in this case, Vieux Carre Property Owners, Residents, and Associates, Inc., and French Quarter Citizens for the Preservation of Residential Quality, Inc., filed a petition for declaratory judgment and preliminary and permanent injunction on September 13, 2006 against Appellees, Hotel Royal, L.L.C., 1004-1006 Royal, L.L.C., 625 St. Philip, L.L.C., and The Melrose Group, L.L.C., alleging that Appellees violated various zoning ordinances. These violations, Appellants argued, threatened the character and charm of the French Quarter.
On January 4, 2007, Appellees filed Exceptions of Lack of Procedural Capacity, No Right of Action, and Prescription, asserting that Appellants lacked standing to file and prosecute their claims against Ap-pellees and that such claims were also prescribed. Appellees further argued that Appellants, as private, non-governmental, and non-profit corporations, were improperly assuming the role of a |4government agency in seeking to enjoin Appellees from allegedly violating zoning ordinances of the City of New Orleans. Appellees further argued that Appellants had no right of action because they failed to allege special or actual damages to themselves, as opposed to society in general.
After a hearing on January 16, 2009, the trial court sustained Appellees’ Exception of No Right of Action.
STANDARD OF REVIEW
“Peremptory exceptions raising the objection of no right of action are reviewed de novo on appeal as they involve questions of law.” Fortier v. Hughes, 2009-0180, p. 2 (La.App. 4 Cir. 6/17/09),
DISCUSSION
Louisiana has adopted the U.S. Supreme Court’s three-part test articulated in Hunt v. Washington State Apple Advertising Commission,
In this case, Appellants’ petition alleges violations of the Comprehensive Zoning Ordinances of the City of New Orleans with regard to improper expansion and conversion of buildings. Specifically, Appellants urge the following as damages for these alleged violations:
Failure to enjoin [Appellees’] expansion threatens the architectural, historical, cultural and aesthetic integrity, and values of the Vieux Carre. De facto approval of [Appellees’] illegal expansion adversely affects the tout ensemble of the Vieux Carre and opens the entire Vieux Carre to significant alteration to the character and massing of its existing historic buildings. If not abated, the deterioration of the quaint and distinc-five character of the Vieux Carre will be permanently and adversely affected.
The expansion of [Appellees’ property], via the conversion of the adjacent apartment building to additional rooms and adding Bar 625 and Diner 625 as [ ] amenities, disrupts the scale and low density of the surrounding buildings and the residential character and environment. Furthermore, [Appellees’] illegal expansion has significantly harmed the historic community and will create additional traffic resulting in congestion, noise, and other activities destructive to the French Quarter.
We find that Appellants failed to meet ■ the first prong of the Hunt test because a concrete injury to the members of the Association has not been | r,established in this particular case; rather, Appellants have alleged injury to the Vieux Carre/ French Quarter neighborhood as a whole. The damages alleged allude to the general deterioration of the “quaint and distinctive character” of the Vieux Carré rather than asserting an actual injury to its members. Whether the character or charm of a neighborhood has deteriorated is purely subjective; as such, it is not susceptible of measurement. Moreover, other alleged damages, such as the possibility of the creation of additional traffic, congestion, and noise as a result of Appellees’ alleged zoning violations, are hypothetical in this case, and Appellants have failed to show that such other alleged damages are “present or probable for the future.” See Louisiana Hotel-Motel,
The Louisiana Supreme Court recognized that in Hunt, “the association which brought the action ... had shown dear, direct economic injury to the members thereof.” Louisiana Associated General Contractors, Inc. v. State of Louisiana, 95-2105 (La.3/8/96),
|7In contrast, as was the case in Louisiana Hotel-Motel, Appellants “have not shown that the members of their organizations could bring a suit; they have not shown any harm (present or probable for the future) which would occur to the members.” Louisiana Hotel-Motel,
For the foregoing reasons, the trial court’s judgement is hereby affirmed.
AFFIRMED.
JLjBAGNERIS, J., dissents with reasons.
Notes
. At the hearing, the trial court questioned counsel for Appellants whether the alleged violations should have instead been brought before Vieux Carre Commission:
Mr. Smith:
Well, there was [sic] proceedings in the Vieux Carre Commission and those proceedings- — -those administrative proceedings are what they are. We have a right to enjoin—
The Court:
In other words, it didn’t go the way you wanted it to go.
Mr. Smith:
No, no, that’s not — I wasn’t really involved in that aspect of the case.
Mr. Rosenberg:
I was, your Honor, and that’s correct.
. Appellants do not list assignments of error for review.
. The Louisiana Supreme Court has also acknowledged that "[w]hether incorporated or unincorporated, the right that any association has to assert a cause of action before a court in this state is limited to the assertion of a right which belongs to that association.” Louisiana Hotel-Motel,
. The Louisiana Supreme Court has also recognized the "concrete, and not merely hypothetical, 'injury in fact’ or invasion of its legally protected interests” requirement for an association to establish standing. Louisiana Associated General Contractors, Inc. v. State of Louisiana, 95-2105 (La.3/8/96),
. The cases relied upon by Appellants are easily distinguished from the fact pattern of the instant case. In Redfearn v. Creppel, when addressing the issue of standing, this Court cited to testimony from two plaintiff homeowners, who both attested to specific harms resulting from the hotel’s operations, which included blocked driveways, parking congestion, and an increase in litter and dangerous traffic. Redfearn v. Creppel,
Likewise, Guillot v. Brooks also involved individual private landowners. The landowners sought to enjoin a neighboring landowner from using his property as a landing strip. Guillot v. Brooks, 26,544 (La.App. 2 Cir. 3/1/95),
Additionally, Vieux Carre Property Owners, Residents and Associates, Inc. v. Decatur Hotel Corporation is inapplicable to the facts of the instant case. In Decatur Hotel, when addressing Defendants’ argument that an association did not have a right to enforce an action for a zoning violation, this Court stated that the issue of whether an organization has standing to assert a claim on behalf of its members had been answered in the affirmative by the Louisiana Supreme Court. Decatur Hotel, 99-0731, p. 5 (La.App. 4 Cir. 11/10/09),
. The second prong of the Hunt test, whether the interests Appellants seek to protect are relevant to the organizations' purpose, has arguably been established, as the VCPORA's mission statement references "preserving] the Vieux Carre as a national treasure, to maintain its quaint and distinctive character, and to achieve in that historic, living neighborhood, a quality of life which can be enjoyed by its residents, fellow citizens, businesses, and visitors.’’ Similarly, the FQCPRQ’s mission is “to preserve the residential quality in the French Quarter, as well as the historical character and architecture in the Vieux Carre.” However, the Hunt test is plainly articulated in conjunctive terms; thus, satisfaction of only one of the elements is insufficient to establish standing.
Dissenting Opinion
dissents with reasons.
I respectfully dissent from the majority’s finding that the organizations in this case have failed to demonstrate a real and actual interest in the suit.
The essential function of the peremptory exception of no right of action is to test whether the plaintiff has a real and actual interest in the suit. La. C.C.P. art. 927(A)(6); La.Code of Civ. Proc. Art. 681. Its purpose is to determine whether the plaintiff belongs to the class of persons to whom the law grants the cause of action asserted in the suit. It assumes that the petition states a valid cause of action and questions whether the plaintiff in the particular case has a legal interest in the subject matter of the litigation. Wirthman-Tag Construction Co., L.L.C. v. Hotard, 00-2298, 00-2299, pp. 2-3 (La.App. 4 Cir. 12/19/01),
Applying the criteria in Hunt v. Washington State Apple Advertising Commission,
ORDER
11 Considering the application for rehearing filed by Appellants in the above-captioned matter, the request for a rehearing
JONES, J., dissents.
Lead Opinion
ON REHEARING GRANTED
1, Appellants, Vieux Carre Property Owners, Residents, and Associates, Inc. and French Quarter Citizens for the Preservation of Residential Quality, Inc., appealed the trial court’s grant of Appellees’ Exception of No Right of Action. After hearing arguments, this Court affirmed the trial court’s judgment. Vieux Caire Property Owners, Residents and Associates, Inc. v. Hotel Royal, L.L.C.,
FACTS AND PROCEDURAL HISTORY
Appellants filed a petition for declaratory judgment and for preliminary and permanent injunction against Appellees, Hotel Royal, L.L.C., 1004-1006 Royal, L.L.C., 625 St. Philip, L.L.C., and The Melrose Group, L.L.C., alleging that Appellees had violated various local zoning ordinances. In response, Appellants filed Exceptions of Lack of Procedural Capacity, No Right of Action, and Prescription, asserting that Appellants’ claims were prescribed and that Appellants | Jacked standing and a right of action. After a hearing, the trial court sustained Appellees’ Exception of No Right of Action, and this Court affirmed. We granted rehearing in the matter to expand upon our reasoning in this Court’s previous decision.
STANDARD OF REVIEW
Judgments sustaining an exception of no right of action are reviewed de novo. Fortier v. Hughes, 2009-0180, p. 2 (La.App. 4 Cir. 6/17/09),
DISCUSSION
Whether Appellants have standing to bring suit on behalf of its members involves a three-part inquiry. See Hunt v. Washington State Apple Advertising Commission,
| .-¡Appellants’ petition for damages alleged that failure to enjoin the expansion of Appellees’ property “threatens the architectural, historical, cultural and aesthetic integrity, and values of the Vieux Carre” and “adversely affects the tout ensemble of the Vieux Carre and opens the entire Vieux Carre to significant alteration of the character and massing of its existing historic buildings” which would “adversely af
In affirming the decision of the trial court, this Court determined that Appellants did not satisfy the first prong of the three-part test because Appellants failed to establish harm that was “present or probable for the future” for its members and also failed to demonstrate “clear, direct economic injury to [its] members.” Louisiana Associated General Contractors, Inc. v. State of Louisiana, 95-2105 (La.3/8/96),
It is well-settled in Louisiana that a plaintiff must have a real and actual interest in the action he asserts. La. C.C.P. art. 681. Without a showing of a special interest that is separate and distinct from the interest of the general public, a plaintiff may not proceed. League of Women Voters of New Orleans v. City of New Orleans,
Applying the first prong of the Hunt/Louisiana Hotel-Motel test, we find that the first threshold requirement, the demonstration of harm that is present or probable for the future, was simply not established in this case. See Hunt, supra. Appellants merely asserted that Appellees’ alleged zoning violations would result in a decline in the charm and distinctive character of the neighborhood as a whole, the Vieux Carré. Not only is such an allegation entirely subjective, it is also not susceptible of measurement. Furthermore, the hypothetical possibility of increased congestion and noise as a result of the alleged zoning violations also does not rise to the level of “present or probable future harm.” See Hunt, supra.
In Guillot v. Brooks, 26,544, p. 1 (La. App. 2 Cir. 3/1/95),
1 aOne of the complainants, Rebecca Sanford, testified her horse had been spooked and nearly kicked her when an ultralight [aircraft] flew over her barn. Another plaintiff, Teresa Chewning, recounted how a low flying machine “buzzed” her house and scared her children. Neither plane belonged to defendants, but both witnesses generally concluded that the craft had been attracted by the airfield. Chewning additionally noted an occasion when Brooks taxied up and down the fence line between their properties, causing the horses in her nearby pasture to stampede.
Id. at pp. 5-6,
Both sides presented real estate experts to address whether plaintiffs’ neighboring property had diminished in value. Wesley Barron, a state certified appraiser, opined that a diminution in the price of appellees’ land would be caused by appellants’ ultralight activities. Ron Fa-yard, a real estate broker in the Bossier area but not a certified appraiser, testified on behalf of defendants. He noted that property in a new subdivision across the bayou from the ultralight landing area had significantly increased in value over the last few years, and that he had not observed any adverse effect on area sales caused by the nearby ultralights. On cross, however, he admitted that the subdivision land is buffered by a line of trees along the waterway.
Id. at p. 6. Considering the evidence that plaintiffs had presented with regard to individualized, specific damages, as well as evidence of harm resulting from the landing strip’s operation, the Court held that the plaintiffs had established “significant adverse effects upon the value and enjoyment of their property.” Id. Notably, the Court also held that the airport’s activities “specially damaged [the] plaintiffs.” Id. at p. 7.
IfiSimilarly, in Redfearn v. Creppel,
Carol Jean Gibson is the owner of the property located at 1615 Peniston Street, which is within 100 feet of The Columns Hotel. She testified that as a result of the operation of the bar and restaurant at The Columns there has been more congested parking in the area, incidents in which her driveway is blocked by parked vehicles, an increase of trash which appears on her lawn between 10 p.m. and 7:30 a.m., and she sees “drunks” coming from the direction of The Columns.
Lynn Redfearn, a resident of 3717 Carondelet Street, which is one block from The Columns, attested to the dangerous and congested traffic and parking conditions which have occurred since the opening of the bar at the Columns Hotel.
The incidents of increased traffic and litter resulting from the operation of The Columns bar and restaurant was corroborated by the testimony of John Geiser, an officer of the St. Charles Avenue Committee.
We are satisfied that the plaintiffs have made a sufficient showing of harm to entitle them to seek injunctive relief in this case.
Id. at 1213.
Appellants argue that Vieux Carre Property Owners, Residents and Associates, Inc. v. Decatur Hotel Corporation, which involved an appeal by an association seeking declaratory and injunctive relief for an alleged violation of New Orleans zoning laws, is analogous to the instant case. 1999-0731, p. 1,
As previously noted, the three-pronged Hunt test was not applied in Decatur Hotel. The Court referenced Ramsey, Louisiana Hotel-Motel, and Associated General Contractors, acknowledging that Louisiana Courts have previously held that an organization may assert a claim on behalf of its members. Decatur Hotel,
|sWith respect to Garden District Property Owners Association v. City of New Orleans, et al.,
With respect to Ramsey River Road Property Owners Association, Inc. v. Reeves,
The facts of Hunt are also plainly distinguishable from the instant case. In Hunt, the issue was a North Carolina law which impacted apple growers from Washington State, the Nation’s largest producer of apples. Hunt,
North Carolina adopted an administrative regulation that “required all closed containers of apples shipped into or sold in the State to display either the applicable USDA grade or none at all,” thus express
Since the ultimate destination of these apples is unknown at the time they are placed in storage, compliance with North Carolina’s unique regulation would have required Washington growers to obliterate the printed labels on containers shipped to North Carolina, thus giving their product a damaged appearance. Alternatively, they could have changed their marketing practices to accommodate the needs of the North Carolina market, i.e., repack apples to be shipped to North Carolina in containers bearing only the USDA grade, and/or store the estimated portion of the harvest destined for that market in such special containers. As a last resort, they could discontinue the use of the preprinted containers entirely. None of these costly and less |inefficient options was very attractive to the industry. Moreover, in the event a number of other States followed North Carolina’s lead, the resultant inability to display the Washington grades could force the Washington growers to abandon the State’s expensive inspection and grading system which them customers had come to know and rely on over the 60-odd years of its existence.
Id. at 338. Consequently, as a direct result of the regulation, the Washington apple growers were plainly “forced to alter their long-established procedures, at substantial cost, or abandon the North Carolina market [at a loss of 500,000 containers of apples].”
Additionally, the alleged harms are not sufficiently concrete to pass muster under Louisiana Hotel-Motel. The Louisiana Supreme Court has recognized that to establish standing to assert a claim on behalf of its members, an association must demonstrate actual economic injury. Louisiana Hotel-Motel,
The second prong of the inquiry, whether the interests Appellants sought to protect were relevant to its organization’s purpose, was arguably met; the VCPORA’s mission statement makes reference to “maintaining] [the French Quarter’s] quant and distinctive character.” As previously noted, however, satisfaction of only one of the elements of the three-part inquiry is insufficient to establish standing. Vieux Carre Property Owners, supra, at *8.
112Finally, although unnecessary to do so, we consider whether the claim asserted or the relief sought by the association requires the participation of the individual members. See Hunt, supra. We acknowledge that the injunctive relief sought by Appellants in this case may not necessarily require the participation of the individual members. See Louisiana Associated Gen. Contractors, Inc. v. State Through Div. of Admin., Office of State Purchasing, 95-2105, p. 7 (La.3/8/96),
For the foregoing reasons, the trial court’s judgment is affirmed.
AFFIRMED
BAGNERIS, J., Dissents with Reasons.
BAGNERIS, J., Dissents with Reasons.
hi respectfully dissent from the majority’s finding that the organizations in this case have failed to demonstrate a real and actual interest in the suit.
The essential function of the peremptory exception of no right of action is to test whether the plaintiff has a real and actual interest in the suit. La. C.C.P. art. 927(A)(6); La.Code of Civ. Proc. Art. 681. Its purpose is to determine whether the plaintiff belongs to the class of persons to whom the law grants the cause of action asserted in the suit. It assumes that the petition states a valid cause of action and questions whether the plaintiff in the particular case has a legal interest in the subject matter of the litigation. Wirthman-Tag Construction Co., L.L.C. v. Hotard, 00-2298, 00-2299, pp. 2-3 (La.App. 4 Cir. 12/19/01),
Applying the criteria in Hunt v. Washington State Apple Advertising Commission,
. As previously noted, a review of the record evidenced that Appellants brought the same claims before the Vieux Carre Commission, but that attempt to enjoin Appellees before the VCC was unsuccessful. Vieux Caire Property Owners, Residents and Associates, Inc. v. Hotel Royal, L.L.C.,
. Additionally, with regard to the analysis of the amount-in-controversy claim, the Supreme Court recognized the economic losses that the members of the apple industry had already sustained and were certain to incur in the future:
Here the record demonstrates that the growers and dealers have suffered and will continue to suffer losses of various types. For example, there is evidence supporting the District Court's finding that individual growers and shippers lost accounts in North Carolina as a direct result of the statute. Obviously, those lost sales could lead to diminished profits. There is also evidence to support the finding that individual growers and dealers incurred substantial costs in complying with the statute. As previously noted, the statute caused some growers and dealers to manually obliterate the Washington grades from closed containers to be shipped to North Carolina at a cost of from 5 to 15 cents per carton. Other dealers decided to alter their marketing practices, not without cost, by repacking apples or abandoning the use of preprinted containers entirely, among other things. Such costs of compliance are properly considered in computing the amount in controversy. Buck v. Gallagher, supra; Packard v. Banton, supra; Allway Taxi, Inc. v. City of New York,340 F.Supp. 1120 (S.D.N.Y.), aff’d,468 F.2d 624 (C.A.2 1972). In addition, the statute deprived the growers and dealers of their rights to utilize most effectively the Washington State grades which, the record demonstrates, were of long standing and had gained wideacceptance in the trade. The competitive advantages thus lost could not be regained without incurring additional costs in the form of advertising, etc. Cf. Spock v. David, 502 F.2d 953 , 956 (C.A.3 1974), rev’d on other grounds,424 U.S. 828 ,96 S.Ct. 1211 ,47 L.Ed.2d 505 (1976). Moreover, since many apples eventually shipped to North Carolina will have already gone through the expensive inspection and grading procedure, the challenged statute will have the additional effect of causing growers and dealers to incur inspection costs unnecessarily.
Both the substantial volume of sales in North Carolina the record demonstrates that in 1974 alone, such sales were in excess of $2 million and the continuing nature of the statute’s interference with the business affairs of the Commission’s constituents, preclude our saying "to a legal certainty,” on this record, that such losses and expenses will not, over time, if they have not done so already, amount to the requisite $10,000 for at least some of the individual growers and dealers. Hunt,432 U.S. 333 , 347-48,97 S.Ct. 2434 , 2443-44,53 L.Ed.2d 383 (emphasis added)(footnote omitted).
. Louisiana Independent Auto Dealers Association v. State,
Dissenting Opinion
dissenting.
1,1 respectfully dissent and would deny the application for rehearing.