Board of Supervisors of Louisiana State University v. Bickham

163 So. 3d 119, 201 La.App. 4 Cir. 0975, 2015 La. App. LEXIS 510, 2015 WL 1085542
CourtLouisiana Court of Appeal
DecidedMarch 11, 2015
DocketNo. 2014-CA-0975
StatusPublished
Cited by2 cases

This text of 163 So. 3d 119 (Board of Supervisors of Louisiana State University v. Bickham) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Board of Supervisors of Louisiana State University v. Bickham, 163 So. 3d 119, 201 La.App. 4 Cir. 0975, 2015 La. App. LEXIS 510, 2015 WL 1085542 (La. Ct. App. 2015).

Opinion

PAUL A. BONIN, Judge.

11James Alderdice, the appellant, retained a vendor’s lien on immovable property sold on credit to the late Thelma Tate Bickham. The Board of Supervisors of Louisiana State University and Agricultural and Mechanical College, however, instituted a quick-taking expropriation of the property against Mrs. Bickham’s heirs.1 Relying upon Article 1, § 4, of the Louisiana Constitution, Mr. Alderdice intervened in the expropriation proceedings in accordance with Sections 11 and 149 of Title 19 of the Louisiana Revised Statutes in order to demand a trial on the issue inter alia of what amount constitutes just compensation to the owner of the property.

. The Board did not and does not oppose Mr. Alderdice’s intervention as it concedes he may have a preferential claim to the proceeds of the payment made in compensation for the expropriation, but it raised the objection that Mr. Alderdice has no right of action to seek a determination of the amount of just compensation owed to the property owners. The trial judge, while continuing to allow Mr. Alderdice’s intervention, sustained the exception of no right of action filed by the |2Board insofar as it denied him the right to seek a trial on the issue of just compensation.

On our de novo review, we hold that Article 1, § 4, of the Louisiana Constitution establishes that any party, including an intervenor like Mr. Alderdice, may demand a trial to determine the amount of just compensation owed to the owners of the property, which in this case had been subject to a vendor’s lien. Accordingly, we reverse the trial court’s judgment to the extent that it sustained the Board’s exception and remand this matter to the trial court for further proceedings consistent with our opinion.

[121]*121We now explain our ruling in greater detail.

I

We first summarize this matter’s facts and procedural history. On October 9, 1997, Mr. Alderdice sold to Thelma Tate Bickham a lot of land and all the improvements thereon for $34,000.00.2 The house situated on the lot bore the municipal address of 2327 Palmyra Street, New Orleans, Louisiana. The transfer of ownership was accomplished by means of a credit sale in which Mrs. Bickham initially paid Mr. Alderdice $3,400.00 in cash at the time of the sale, and promised to pay him $328.83 per month for fifteen years. The sale was secured by a mortgage and the explicit grant of a vendor’s lien, all contained within the act of sale itself. The act of sale was subsequently recorded in the Mortgage Records for |sOrleans Parish on October 14, 1997, thus securing the vendor’s lien against third parties and Mrs. Bickham in accordance with La. Civil Code Art. 3274.3

The parties agree that Mrs. Bickham died in 2007, although no succession documents, save the judgment of possession, are in in the record before us.4 The parties, likewise, assert' that the Bickham heirs each own an undivided one-third interest in the property.5 Mr. Alderdice claims that the heirs ceased making payments on the note sometime in 2008.6

The Board, in connection with its efforts to develop the LSU/VA medical complex in New Orleans, began expropriation proceedings against the subject property on August 13, 2010.7 The Board named as [122]*122defendants the three Bickham heirs in addition to the City of New Orleans, as holder of several tax liens. The L Board also deposited $6,555.00 as just compensation into the registry of the court for the benefit of the Bickham heirs and asked the trial court to order the Bickham heirs to satisfy the following liens and mortgages out of its deposit for just compensation: 1) the October 9, 1997 credit sale from Mr. Alderdice to Mrs. Bickham; 2) liens for code enforcement violations, as well as 2009 and 2010 property taxes owed to the City of New Orleans; and, 3) a recorded September 1998 judgment against Tesha Bickham in favor of Houston Savings Bank FSB.8 The trial judge signed the order of expropriation on August 27, 2010.

Some, though not all, of the parties were served, with the Board’s petition. While Octavia Bickham was personally served with citation and a copy of the petition on September 7, 2010, there is no indication in the record that any type of service was made on Tesha Lewis or Allen Bickham. None of the Bickham heirs have filed any pleadings, responsive or otherwise, to the Board’s petition. And it is unclear to us whether the Bickham heirs, or any of them, would have any personal obligation to satisfy their late mother’s debt incurred in connection with the credit sale.

The City, through the City Attorney’s office, was served with citation and a copy of the petition on September 7, 2010. The City filed an ex parte motion to disburse funds and cancel liens on November 8, 2010. There is no indication that the trial judge signed the City’s requested order, and the parties contend that the [ ¿amount of just compensation initially deposited by the Board remains in the registry of the court.

Mr. Alderdice, who received informal notice of the Board’s taking, sought leave to intervene in this matter on October 20, 2011. Mr. Alderdice’s request was granted by the trial court; and he filed his petition for intervention on October 20, 2011.9 His petition asserts that he is entitled to intervene in this matter because the subject property secured his credit sale to Mrs. Bickham, and thus is entitled to an award for the value of the property as expropriated by the Board and damages for the destruction of the house.10

The Board answered Mr. Alderdice’s intervention on November 14, 2011, denying specifically that he has a right to contest the value ascribed by it to the subject property. Following this answer, Mr. Al-derdice and the Board spent the next two years engaging in motion practice, conducting discovery, and setting, and extending, court-scheduled cut-off dates. The [123]*123Board, eventually, filed an exception of no right of action on December 30, 2013, wherein it asserted that Mr. Alderdice had no right to assert a claim for damages. The exception acknowledged Mr. Alderd-ice’s right to intervene as a secured creditor and assert an interest in the | (¡money on deposit in the trial court’s registry, yet denied his right to challenge for any purpose the sufficiency of the award.

In opposition, Mr. Alderdice invoked Article 1, § 4, of the Louisiana Constitution which provides that while “the owner” of expropriated property must be compensated to the full extent of his loss, “a party has the right to trial by jury to determine whether the compensation is just.” Mr. Alderdice argued, therefore, that this section indicates the drafters’ intent to draw a clear distinction between the rights of a party to seek a determination by trial of an expropriated property’s value and the rights of an owner of expropriated property to receive just compensation. Because he was a proper party by virtue of his intervention as a secured creditor of Mrs. Bickham, Mr. Alderdice argued that the Constitution affords him a right of action to seek a determination of just compensation.

The Board and Mr. Alderdice appeared before the trial to argue the merits of the Board’s exception.

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163 So. 3d 119, 201 La.App. 4 Cir. 0975, 2015 La. App. LEXIS 510, 2015 WL 1085542, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-supervisors-of-louisiana-state-university-v-bickham-lactapp-2015.