Wilson v. Louisiana Tax Commission et al
Filing
92
ORDER & REASONS denying 84 Plaintiff's Motion for Reconsideration. Signed by Judge Nannette Jolivette Brown on 12/14/12. (sek, )
UNITED STATES DISTRICT COURT
EASTERN DISTRICT OF LOUISIANA
PATRICK WILSON
CIVIL ACTION
VERSUS
NO. 10-3338
STATE OF LOUISIANA, EX REL LOUISIANA TAX
COMMISSION, WHITNEY JOSEPH, JR.
ASSESSOR FOR THE PARISH OF ST. JOHN THE
BAPTIST; AND ESPARROS PROPERTIES
AIRLINE, L.L.C.
SECTION: “G”(3)
ORDER AND REASONS
Before the Court is Plaintiff Patrick Wilson’s (“Wilson”) Motion for Reconsideration,1
wherein Wilson requests that this Court reconsider its prior ruling dismissing with prejudice his
claims for procedural due process pursuant to 42 U.S.C. § 1983.2 After considering, the pending
motion, the memorandum in support, the oppositions, the record, and the applicable law, the Court
will deny the pending motion.
I. Background
A. Factual Background
The purchased improvement at issue in this case is a metal structure (a dance floor), which
is attached to another building owned by Defendant Esparros Properties Airline, LLC (“Esparros”).3
The structure was erected by a former tenant of Esparros, RJ’s Lounge, Inc. (“RJ’s Lounge”), during
a time when RJ’s Lounge leased the main property from Esparros.4
1
Rec. Doc. 84.
2
Rec. Doc. 79.
3
Id.
4
Rec. Doc. 50-6 at p. 5.
There is no evidence that Esparros ever purchased the improvements or demanded that RJ’s
Lounge remove the improvements after RJ’s Lounge’s lease expired and RJ’s Lounge vacated the
premises. RJ’s Lounge subsequently sold the improvements to another entity, Country Club
Restaurant & Lounge, Inc.5 Wilson alleges that this is the same entity that leased the premises from
Esparros after RJ’s Lounge’s lease expired; however, that lease lists “Country Club Restaurant and
Club, Inc.” as the tenant of Esparros’s premises. At all relevant times, the improvements were
assessed separately from the remainder of the property.6 In 2006, Country Club Restaurant &
Lounge, Inc. (or Club, as stated in the lease) vacated the premises and thereafter did not pay the ad
valorem taxes on the improvements.7
The following year, in 2007, Wilson purchased the metal structure at a tax sale held by the
Sheriff of St. John the Baptist Parish (“the Parish”) due to the unpaid taxes of Country Club
Restaurant & Lounge, Inc.8 After purchasing the improvements, Wilson did not pay the taxes that
he owed on the improvements.
As a result of this nonpayment, Wilson’s interest in the
improvements was adjudicated to St. John the Baptist Parish on June 26, 2008.9
Nevertheless, on July 26, 2010, following the expiration of the three (3) year redemptive
period from Wilson’s purchase at the tax sale in 2007, Wilson filed a state court proceeding to quiet
his tax title to the improvements.10 Concurrently, he contacted representatives of the underlying
5
Id. at pp. 6-8.
6
Id. at pp. 10-15.
7
Rec. Doc. 50-5 at p. 12.
8
Id.
9
Rec. Doc. 53-5.
10
Rec. Doc. 1-4 at pp. 1-4.
2
property owner, Esparros, to advise them of the tax sale. He was told by an Esparros representative
that the tax sale was a mistake and would be cancelled.11 An Esparros representative then sent
correspondence to the tax assessor, Whitney Joseph, Jr. (the “Assessor”), which indicated that the
property had been damaged by a fire and that the improvements were the property of Esparros,
having been turned over to Esparros at the time that Country Club Restaurant & Lounge, Inc.
vacated the premises in 2006.12 It is undisputed that the underlying property and the improvements
had been assessed separately,13 and therefore, Esparros did not receive notice of any tax assessments
in the improvements or notice of delinquency in payment of those taxes. Accordingly, Esparros
requested the Assessor to unwind the tax sale and refund the purchaser’s money, place all property
in the name of Esparros, and bill Esparros for any back taxes owed.14
Having been advised that Esparros would seek to cancel the sale, Wilson’s counsel sent
notices to both the Assessor and the Sheriff for St. John the Baptist Parish, requesting an opportunity
to be heard and to present evidence on the validity of the tax sale prior to any action being taken to
terminate Wilson’s alleged property interest.15
Despite the notification and the request to be heard, without providing Wilson with the
opportunity to be heard, the Assessor’s Office submitted an online change order request to the
11
Rec. Doc. 50-11 at p. 2.
12
Rec. Doc. 50-6 at pp. 1-2. Although, as discussed later, Esparros claims that it leased its premises to
Country Club Restaurant & Club, Inc., the correspondence sent from the Esparros representative to the Assessor
specifically states that the previous tenant was Country Club Restaurant & Lounge, Inc.
13
Rec. Doc. 48-3 at p. 1. Wilson contends that it was the “ownership interest in the improvements which was
separately assessed.” Rec. Doc. 55-1 at p. 2. Regardless of whether it was the “ownership interest in the improvements”
or the improvements themselves that had been separately assessed, it is undisputed that the property and the
improvements were not assessed together.
14
Id.
15
Id. at 3.
3
Louisiana Tax Commission, seeking retroactive cancellation of the assessment upon which Wilson’s
tax title rested.16 In this electronic request, the Assessor stated that the reason for the cancellation
was that the building was destroyed by a fire and that Esparros was the correct owner of the
building.17 However, Esparros’s representative has since testified in his deposition that the
improvements purchased by Wilson did not suffer any damage from a fire.18 Nonetheless, on July
28, 2010, the Louisiana Tax Commission granted the change order request and cancelled the
underlying assessment and the resulting tax sale of the metal structure.19
B. Procedural Background
On October 1, 2010, Wilson filed this suit against Esparros, the Assessor, and the Louisiana
Tax Commission for their alleged violations of his procedural due process rights pursuant to 42
U.S.C. § 1983 as a result of these events.20 Later, Wilson dismissed the Tax Commission and
amended his complaint to name the individual members of the Tax Commission as defendants (the
“Tax Commissioners”).21 Wilson alleges that the Tax Commissioners promulgated a policy that
permitted the cancellation of tax sales, and in turn the deprivation of property, without providing
prior notice to, or an opportunity to be heard by, the individual whose property interest derived from
16
Rec. Doc. 50-8 at p. 6.
17
Id.
18
Rec. Doc. 50-8 at p. 7. No party has submitted any evidence establishing that the improvements were
damaged by the fire.
19
Id.
20
Rec. Doc. 1.
21
Rec. Doc. 24.
4
the tax sale. Wilson alleges that Esparros and the Assessor used this system to deprive Wilson of
his rights without providing him with due process of law.
Specifically, Wilson alleges that the Assessor submitted to the Tax Commission a request
to cancel the assessment and Wilson’s tax sale purchase, knowing that the cancellation would result
in the loss of property without first providing Wilson with notice or an opportunity to be heard.
Wilson alleges that the Assessor took this action only because an Esparros representative contacted
the Assessor and told the Assessor that the property was destroyed by a fire and that Esparros was
the true owner of the structure purchased by Wilson at the tax sale. Wilson alleges that the Assessor
acted without confirming this information.
Initially, this case was assigned to Judge A.J. McNamara, Section “D” of the Eastern District
of Louisiana.22 On January 25, 2011, the Assessor filed a motion to dismiss for failure to state a
claim upon which relief could be granted, wherein the Assessor argued that Wilson’s claims against
the Assessor should be dismissed because the Assessor is entitled to qualified immunity.23 On
March 11, 2011, Judge McNamara denied the Assessor’s motion, finding that Wilson’s complaint
alleged that the Assessor’s actions denied Wilson of the property right acquired in the tax sale
without due process; that Wilson’s right was clearly established at the time of the Assessor’s alleged
conduct; and that the Assessor’s actions were objectively unreasonable.24 On June 2, 2011, this case
was transferred to Judge Lance M. Africk, Section “I” of this court.25 On September 29, 2011, the
22
Rec. Doc. 2.
23
Rec. Doc. 12.
24
Rec. Doc. 19.
25
Rec. Doc. 35.
5
Assessor filed a Motion for Summary Judgment.26 On October 2, 2011, Wilson filed a Motion for
Summary Judgment.27 Thereafter, on October 11, 2011, this case was transferred to this Section,
Section “G” of this Court.28
On July 11, 2012, this Court issued an Order and Reasons (hereinafter “the Order”) wherein
it granted the Assessor’s motion for summary judgment, denied Wilson’s motion for summary
judgment, and dismissed with prejudice Wilson’s claims against the Assessor.29 The Court did not
reach the question of whether Wilson had a property interest at the time that the tax sale was
canceled, because it found that regardless of a determination on that issue, Wilson could not
demonstrate that the actions of Defendants deprived him of his interest in property.30 The Court
relied on Jamie Land Co., Inc. v. Touchstone,31 from the Louisiana First Circuit Court of Appeal,
where upon similar circumstances, that court held that cancellation of a tax sale without notice to
the purchaser did not violate due process rights because the purchaser could still pursue a remedy
through a quiet title action.32 Specifically, the Court held that Wilson could not show that the
cancellation of the tax sale deprived Wilson of any existing property interest, because after the
cancellation the state still allowed for process in the form of a quiet title action.33 Moreover, the
26
Rec. Doc. 48.
27
Rec. Doc. 50.
28
Rec. Doc. 52.
29
Rec. Doc. 79 at p. 27.
30
Id. at p. 22.
31
2006-2057 (La. App. 1 Cir. 6/8/07); 965 So.2d 873
32
Id. at 876.
33
Rec. Doc. 79 at p. 24.
6
Court found that Wilson had not been deprived of possession of the improvements, because he never
had been in possession nor had he followed the proper procedure to obtain possession under
Louisiana law.34 Based on these findings, the Court also declined to address the Assessor’s
affirmative defense of qualified immunity.35
On July 19, 2012, Wilson filed the pending motion to reconsider.36 The Assessor filed a
response to the motion on July 26, 2012.37 The Tax Commissioners filed a separate response in
opposition to the motion on August 6, 2012.38
II. Standard on a Motion for Reconsideration
Although the Fifth Circuit has noted that the Federal Rules “do not recognize a ‘motion for
reconsideration’ in haec verba,”39 it has consistently recognized that such a motion may challenge
a judgment or order under Federal Rules of Civil Procedure 54(b), 59(e), or 60(b).40
Rule 59
governs a request to alter or amend a final judgement. Such a motion “calls into question the
correctness of a judgment,”41 and courts have considerable discretion in deciding whether to grant
34
Id. at p. 25.
35
Id. at p. 26.
36
Rec. Doc. 84.
37
Rec. Doc. 87.
38
Rec. Doc. 90.
39
Lavespere v. Niagara Mach. & Tool Works, Inc., 910 F.2d 167, 173 (5th Cir. 1990).
40
Id. (Rules 59 and 60); Castrillo v. Am. Home Mortg. Servicing, Inc., No. 09-4369, 2010 WL 1424398, at
*3-4 (E.D. La. Apr. 5, 2010) (Vance, C.J.) (Rule 54).
41
Tex. Comptroller of Pub. Accounts v. Transtexas Gas Corp. (In re Transtexas Gas Corp.), 303 F.3d 571,
581 (5th Cir. 2002).
7
such a motion.42 In exercising this discretion, courts must carefully balance the interests of justice
with the need for finality.43 Courts in the Eastern District of Louisiana have generally considered
four factors in deciding motions for reconsideration under Rule 59(e) to review a final judgement:
(1) the motion is necessary to correct a manifest error of law or fact upon which the
judgment is based;
(2) the movant presents newly discovered or previously unavailable evidence;
(3) the motion is necessary in order to prevent manifest injustice; or
(4) the motion is justified by an intervening change in controlling law.44
A motion for reconsideration, “‘[is] not the proper vehicle for rehashing evidence, legal
theories, or arguments. . . .’”45 Instead, such motions “serve the narrow purpose of allowing a party
to correct manifest errors of law or fact or to present newly discovered evidence.”46 “It is well
settled that motions for reconsideration should not be used . . . to re-urge matters that have already
been advanced by a party.”47
Reconsideration, therefore, is not to be lightly granted, as “[r]econsideration of a judgment
after its entry is an extraordinary remedy that should be used sparingly”48 and the motion must
“clearly establish” that reconsideration is warranted.49 When there exists no independent reason for
42
Edward H. Bohlin Co., Inc. v. Banning Co., Inc., 6 F.3d 350, 355 (5th Cir. 1993).
43
Id. at 355-56.
44
See, e.g., Castrillo, 2010 WL 1424398, at *4 (citations omitted).
45
Id. (quoting Templet v. HydroChem Inc., 367 F.3d 473, 478-79 (5th Cir. 2004)).
46
See Waltman v. Int’l Paper Co., 875 F.2d 468, 473 (5th Cir. 1989).
47
Helena Labs., 483 F. Supp. 2d at 539 (citing Browning v. Navarro, 894 F.2d 99, 100 (5th Cir. 1990)).
48
Templet, 367 F.3d at 478-79 (citation omitted).
49
Schiller v. Physicians Res. Group Inc., 342 F.3d 563, 567 (5th Cir. 2003).
8
reconsideration other than mere disagreement with a prior order, reconsideration is a waste of
judicial time and resources and should not be granted.50
III. Parties’ Arguments
In support of the pending motion, Wilson contends that he in fact has been deprived of a
“real and substantive right originating” by the defendants actions resulting in the cancellation of his
tax sale.51 He further argues that “[u]nder Louisiana law a tax deed is an actual ownership interest
in real estate, not an illusory or hypothetical ownership.”52 As such, Wilson avers that the only
procedures to destroy that interest under Louisiana law is by redemption or by annulment.53
Upon the assumption that Wilson has a protectable property interest, he also argues that
“[t]he existence of state remedies to Patrick Wilson, such as the pursuit of a quiet title action, are
inconsequential as to the question of jurisdiction under 42 U.S.C. § 1983,” and Wilson may pursue
his claims upon completion of a wrongful act.54 Wilson avers that “[t]he federal remedy is
supplementary to the state remedy, and the latter need not be first sought and refused before a
federal one is invoked... the plaintiff knows of no authority that requires an additional demonstration
50
Livingston Downs Racing Ass’n v. Jefferson Downs Corp., 259 F.Supp. 2d 471, 481 (M.D. La. 2002). See
also Mata v. Schoch, 337 BR 138, 145 (S.D. Tex. 2005) (refusing reconsideration where no new evidence was
presented). See also FDIC v. Cage, 810 F.Supp. 745, 747 (S.D. Miss. 1993) (refusing reconsideration where the motion
merely disagreed with the court and did not demonstrate clear error of law or manifest injustice).
51
Rec. Doc. 84-1 at p. 3.
52
Id. at p. 4 (citing La. Const. Art. VII, § 25, cl. (A)(1)).
53
Id.
54
Id. at p. 5 (citing Zinermon v. Burch, 494 U.S. 113, 124 (1990)).
9
that Mr. Wilson was prevented from pursuing a quiet title proceeding or any other remedy which
precludes plaintiff’s § 1983 claim.”55
Wilson recognizes that a claim for procedural due process is not actionable under Section
1983 when the deprivation occurs, but only after the State fails to provide due process.56 Wilson
contends that neither the Assessor nor the Tax Commissioners “followed the procedures required
by the Louisiana Constitution for terminating the plaintiff’s property right.”57 Wilson refutes that
La. R.S. 47:2266(A) requires a plaintiff to pursue a quiet title action before a deprivation can be
demonstrated, and argues that a close reading of the statute leaves this as a discretionary option for
a plaintiff.58 Wilson also argues that forcing him to pursue a quiet title action would expose counsel
to potential ethical violations; to institute a quiet title action, the petitioner must assert that he is the
holder of a tax sale title to the property by virtue of a tax sale, but if the title is canceled, such a
statement would be false.59 Likewise, to obtain a writ of possession, Wilson argues that similar
representations to the court would be required.
Wilson suggests that federal case law provides guidelines to consider due process claims in
administrative law. Wilson avers that this Court must consider “[w]hether the procedures used by
the Assessor and the Tax Commission defy procedural due process requirements” by balancing the
interests involved against the burden placed on the state.60 To this end, Wilson maintains that he has
55
Id. at pp. 5-6.
56
Id. at p. 7 (citing Zinermon, 494 U.S. at 126).
57
Id.
58
Id.
59
Id. at p. 8.
60
Id. at p. 9.
10
been deprived of a very serious substantive right by the procedures utilized and that the online
request system for change orders does not subject the requests to “any level of scrutiny.”61
Wilson next considers if there are “additional or substitute procedural safeguards” to ensure
that one’s due process rights are not violated. Wilson contends that “[i]f the Assessor and the Tax
Commission are going to disregard the Louisiana Constitution and Louisiana positive law, at a
minimum some type of process should be employed before terminating a substantive property
right.62 Wilson argues that in this matter, he was not given notice or a hearing, and this allowed the
Assessor to “arbitrarily and capriciously” deny Wilson of a substantive property right.63
In addition, Wilson contends that La. R.S. 39:351 and 47:1991 allow for processes that are
vague, overbroad, and preempted by the United States Constitution. Moreover, Wilson seeks judicial
review of the Jamie Land decision, relied upon this Court’s previous order, claiming that it “applies
the law in violation of equal protection.”64 Wilson maintains that the Louisiana Constitution only
permits cancellation of a tax sale in two ways: redemption or an annulment proceeding.65 Therefore,
Wilson argues that the aforementioned Revised Statutes are unconstitutional and “spawn[] a third
manner to extinguish a tax sale,” which is beyond what the Constitution allows.
Regarding La. R.S. 47:1991(A), Wilson contends that the law allows for four different
scenaros under which the Tax Commission may cancel a tax sale: (1) when there is a clerical error;
(2) an erroneous assessment; (3) a dual assessment; or (4) when the property is tax exempt under
61
Id.
62
Id. at pp. 9-10.
63
Id. at p. 10.
64
Id. at p. 11.
65
Id.
11
the Louisiana Constitution. Wilson takes issue with the statute’s lack of a definition for “erroneous
assessment” and that upon affidavit evidence, the Tax Commission can order the recorder of
mortgages to cancel a tax sale, whether or not the property has been adjudicated to a third party.66
Concerning La. R.S. 39:351, Wilson criticizes the law for not requiring affidavits made under
oath or verification by the assessor before cancelling a recorded tax sale. Wilson emphasizes that
this law has never been formally subject to judicial review, and where the law was previously
applied in Jamie Land, it was applied in a manner that violated the constitution.67 In addition, Wilson
states that:
According to Louisiana Revised Statute 47:2183, the sheriff records tax deeds in the
office of conveyance records of the parish where the property is located. However,
Louisiana Revised Statutes 47:1991 and 39:351 only allow the Tax Commission
authority to compel the “recorder of mortgages” to cancel a tax sale upon
determination of an erroneous assessment. This is problematic because the tax
Commission is actually exercising authority over the clerk of court and not the
recorder of mortgages, which is clearly outside the language of the statute.68
Wilson also asserts that 47:1991 is ambiguous as to who must make statements under oath, and
39:351 does not outline the proper procedure for determinations to be made, rendering both statutes
“open to the possibility of abuse.”69 Wilson distinguishes several Louisiana state court decisions
applying these statutes, claiming that in those instances the law was applied “without discriminatory
impact.”70
66
Id. at p. 12.
67
Id. at p. 13.
68
Id. at pp. 13-14 (internal citations omitted).
69
Id. at p. 14.
70
See id. at pp.14-16.
12
Turning to the Jamie Land decision, Wilson argues that he brought his claim here pursuant
to Section 1983 because “Louisiana Courts do not enforce the Fourteenth Amendment to protect
property interests of tax buyers. In short, the [Jamie Land] court applies the law in violation of equal
protection and only accords due process protections to property owners, not tax buyers.”71 Wilson
reasons that the Jamie Land court relied heavily on Mennonite Board of Missions v. Adams,72 “which
sets out the broad principle that before a property interest can be terminated notice and an
opportunity to be heard must be given.”73 Wilson argues that the Jamie Land court incorrectly
decided that a quiet title action is the proper venue to exercise constitutional claims. Wilson asks the
Court to adopt Judge Pettigrew’s dissent in Jamie Land, wherein he argues that La. R.S. 39:351 and
47:1991 are limited by the Louisiana Constitution, which only allows for the cancellation of a tax
sale based on redemption or an annulment proceeding, and that the lack of notice presents due
process concerns.74
In the alternative, Wilson claims that a quiet title action “is not a viable remedy” here.75 He
argues that a suit to quiet title is between a plaintiff and former owners, and therefore he would not
be able to seek relief against the Assessor or the Tax Commissioners for their alleged violations of
his due process rights.76 He also argues that pursuing a Writ of Possession would similarly be
inadequate because “[a] Writ of Possession is a right accorded to a tax buyer for the sole purpose
71
Id. at p. 16.
72
462 U.S. 791 (1983).
73
Rec. Doc, 84-1 at p. 16.
74
Id. at p. 17.
75
Id. at p. 18.
76
id. At p. 19.
13
of remediating property, subject to a tax sale, that has been adjudicated to have fallen bellow
property standards. Since Mr. Wilson was never ordered by any authority to bring the property into
compliance, a writ of possession was never a viable pursuit.”77 Finally, Wilson maintains that he is
not asserting that he is victim of an improper “taking,” since “no property was taken for public use,”
and therefore, there is no requirement for Wilson to exhaust state remedies first.78
In opposition, the Assessor argues that the pending motion should be denied because the
Court has committed no manifest error of law.79 The Assessor contends that the pending motion fails
to confront that “prior to the change order plaintiff lost the property by adjudication to the parish for
non-payment of 2007 taxes.”80 As Wilson’s claim for procedural due process arises out of events
after the adjudication, the Assessor avers that he does not have a protectable property right to
support a claim for violations of procedural due process.
The Tax Commissioners filed a separate opposition to the pending motion, making a nearly
identical argument to that of the Assessor that Wilson lost any property right after the adjudication.81
Moreover, the Tax Commissioners argue that “[u]nder the principle of comity, federal courts are
reluctant to interfere in the taxation processes of the various states.”82 In further support, the Tax
Commission cites a recently affirmed decision from this Court of which it was a defendant, holding
that “Plaintiffs’ Sec. 1983 due process claims... surely are barred under the Tax Injunction Act, the
77
Id.
78
Id. at pp. 19-20.
79
Rec. Doc. 87.
80
Id. at p. 1.
81
Rec. Doc. 90.
82
Id. at p. 2 (citing Fair Assessment in Real Estate Assoc., Inc. v. McNary, 454 U.S. 100 (1981)).
14
Anti-Injunction, and by principles of comity... And the Court can envision no greater violation of
the principle of comity than if the court were to usurp control over state tax litigation.”83
IV. Law and Analysis
Wilson’s various constitutional challenges and requests for relief presume he has a
protectable property interest to support a claim for violations of procedural due process.84 In
opposition to the pending motion, the Tax Commissioners and Assessor largely avoid the
constitutional issues raised by Wilson, arguing instead that he lost any property interest when he
failed to pay taxes and the property was adjudicated to the Parish.85 In the Order, this Court declined
to address whether Wilson had a protectable property interest in the disputed property.86 However,
as this finding would be a necessary precursor to all of Wilson’s arguments made throughout this
suit, it is appropriate for this Court to resolve this issue and determine if a real case or controversy
exists before analyzing Wilson’s claims that state laws violate the Louisiana and United States
Constitutions.
Wilson does not dispute that the property at issue was adjudicated to the Parish in 2007 for
unpaid taxes for the 2006 fiscal year, and makes no claim that he redeemed the property at any time
to regain ownership.87 Instead, he argues that under La. R.S. 47:2197, property adjudicated to the
83
Id. (citing ANR Pipeline Co. v. La. Tax Comm’n, No. 10-2622, 2011 WL 163547 (E.D. La. Jan. 19, 2011)
(Zainey, J.), aff’d 646 F.3d 940 (5th Cir. 2011).
84
Wilson also “call[s] upon this Court for judicial review of the First Circuit’s unconstitutional (mis)application
of state law in Jamie Land v. Touchstone.” Id. at p. 11. While the specific facts of the Jamie Land are not before this
Court, it should also be recognized that a federal district court is without subject matter jurisdiction to sit in direct review
of a final order of a state court. District of Columbia Court of Appeals v. Feldman, 460 U.S. 462, 482-85 (1983).
85
Rec. Doc. 90 at p. 1.
86
Rec. Doc. 79 at 22.
87
Rec. Doc. 55 at p. 7.
15
state “does not change the assessed owner.”88 However, this is not what the statute says nor what
Louisiana jurisprudence holds. Louisiana Revised Statute 47:2197:
Adjudicated property shall remain assessed in the name of the tax debtor, and if
transferred, the new or current owner. The political subdivision shall have no liability
with respect to the property resulting solely from the adjudication. No encumbrance
against a political subdivision shall affect adjudicated property.
“Assessed” is not synonymous with ownership, and this statute does not imply the tax debtor retains
ownership. Such an interpretation would make adjudication meaningless and furthermore is contrary
to Louisiana law and jurisprudence. Louisiana Revised Statute 47:2122 defines “adjudicated
property” as “property of which tax sale title is acquired by a political subdivision .” Further “tax
sale title” is defined as “the set of rights acquired by a tax sale purchaser or, in the case of
adjudicated property, on the applicable political subdivision.”89 Therefore, while Wilson had title
when he purchased the property at a tax sale, he lost that tax title when the property was adjudicated
to the Parish for his failure to pay taxes. These definitions foreclose Wilson’s argument that the
adjudication did not extinguish his title in the property, and the case law undeniably reinforces the
defendants’ contention that Wilson lacks any property interest in the formerly adjudicated property.
As such, when Wilson’s tax sale was canceled in 2010, he no longer had any interest in the property.
In Heirs of E.M. Boagini v. Thorton,90 the Louisiana Court of Appeal for the Third Circuit
made clear that property adjudicated to the State is vested therein. In Boagini, a parcel of land was
adjudicated to the State for unpaid taxes in 1905. Regardless, John Harmanson conveyed a one-half
interest in the tract of land to John Thorton. “In spite of the fact that the land was adjudicated to the
88
Id.
89
La. R.S. 47:2122(22).
90
132 So.2d 494 (La. App. 3 Cir. 1961).
16
State for unpaid taxes... the property for some unexplained reason was assessed to John H.
Harmanson.”91 Harmanson failed to pay taxes, and the property was adjudicated to the State for a
second time. Mr. Boagni then bought the property at a tax sale in 1912 based on the second
adjudication.92 Boagni paid all state and parish taxes after his purported purchase. In 1945 an agent
for the defendants redeemed the property from the State based upon the 1905 adjudication.93
The heirs of Boagni claimed valid title based on the 1912 tax deed. The court rejected
plaintiffs claims and found that they had no cause of action, and held that since “title to the property
which is here in dispute became vested to the State by virtue of the 1905 tax adjudication, then the
1912 tax sale to Boagni was an absolute nullity.”94 The court further reasoned:
In our opinion the jurisprudence of this State is established to the effect that public
property is exempt from taxation, and that the unauthorized acts of assessors and tax
collectors in assessing and collecting taxes on property which has previously been
adjudicated to the State for unpaid taxes cannot bind the State and do not constitute
a waiver of title by the State.95
This case makes clear that contrary to Wilson’s contentions, after the property was
adjudicated to the Parish for Wilson’s non-payment of taxes, the property and title were vested in
the Parish, not him. Louisiana jurisprudence consistently holds that when land is adjudicated to the
91
Id. at 496.
92
Id.
93
Id.
94
Id. at 498.
95
Id. at 498 (emphasis added).
17
State or a political subdivision, title to that land is vested in that public entity.96 Like the defendants
in Boagni, Wilson could have redeemed the property and obtained the title from the Parish, but as
of yet has failed to do so. As Wilson did not have a protectable property interest in the property at
issue when the tax sale was canceled, the Court declines to reconsider its prior Order dismissing
Wilson’s claims or consider Wilson’s other constitutional arguments.
V. Conclusion
Louisiana law establishes that once property is adjudicated to the State or another political
subdivision, title is vested in that public entity. Wilson does not dispute that the property at issue has
been previously adjudicated from him to the Parish, and he has not redeemed the property.
Therefore, Wilson lacks a property interest in the disputed improvements and may not pursue a
Section 1983 claim for a violation of his right to procedural due process. As such, this Court finds
that the Order dismissing Wilson’s claims was not in error. Accordingly,
IT IS HEREBY ORDERED that Wilson’s Motion for Reconsideration97 is DENIED.
NEW ORLEANS, LOUISIANA, this 14th day of December, 2012.
____
_________________________________
NANNETTE JOLIVETTE BROWN
UNITED STATES DISTRICT JUDGE
96
See Estate of Helis v. Hoth, 150 So.2d 106 (La. App. 4 Cir. 1963) (holding that from date of adjudication
until land has redeemed, title to land was vested to the State); see also Johnston v. Nanney, 147 So.2d 268, 273 (La. App.
3 Cir. 1962) (“adjudication to the State, which adjudication we think was valid and had the effect of vesting legal title
to the property in the State”).
97
Rec. Doc. 84.
18
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