City of Harahan v. State Ex Rel. Doa

986 So. 2d 755, 2008 WL 2190856
CourtLouisiana Court of Appeal
DecidedMay 27, 2008
Docket08-CA-106
StatusPublished
Cited by9 cases

This text of 986 So. 2d 755 (City of Harahan v. State Ex Rel. Doa) 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
City of Harahan v. State Ex Rel. Doa, 986 So. 2d 755, 2008 WL 2190856 (La. Ct. App. 2008).

Opinion

986 So.2d 755 (2008)

CITY OF HARAHAN
v.
STATE of Louisiana, Through the DIVISION OF ADMINISTRATION.

No. 08-CA-106.

Court of Appeal of Louisiana, Fifth Circuit.

May 27, 2008.

*756 Thomas P. Anzelmo, Sr., Lynda A. Tafaro, Attorneys at Law, Metairie, LA, for Plaintiff/Appellant.

*757 Honorable James D. "Buddy", Caldwell Attorney General, Ryan M. Seidmann, Irys L.V. Allgood, Assistant Attorney Generals, Baton Rouge, LA, for Defendant/Appellee.

Panel composed of Judges EDWARD A. DUFRESNE, JR., CLARENCE E. McMANUS, and WALTER J. ROTHSCHILD.

WALTER J. ROTHSCHILD, Judge.

The City of Harahan ("the City") appeals the trial court's judgment denying its Petition for Declaratory Judgment and declaring that the property at issue in this litigation is owned by the State of Louisiana ("the State"). For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

On March 9, 1978, the State purchased a piece of immovable property in Harahan, which included a building, from the local post of the Veterans of Foreign Wars. By Act 599 of the 1979 Regular Session, the legislature authorized the State to transfer this property to the City of Harahan. In October 1979, the City and the State executed an Act of Transfer in which the State transferred all of its right, title and interest in the subject property to the City of Harahan in order for the City to operate a Senior Citizen Center at that location.[1] However, the Act of Transfer also contained the following reversionary clause:

It is further understood and agreed that should the property hereinabove described which is the subject of this transfer cease to be used as a Senior Citizens Home for a period of five (5) consecutive years or should the buildings constructed on such property be removed therefrom, this transfer shall be null and void and the property shall revert to the Grantor and the Grantee or his successor in office hereby agrees to assign and execute the necessary instrument to restore title to the Grantor.

The City operated a Senior Center at the subject property from 1979 until 1985. The parties agree that at the time the Act of Transfer was executed, the building on the property was not in good condition. By 1985, the building was in deplorable condition due to weather, age, and termite damage. The City decided to build a new Senior Center on a different tract of land that was owned by the City. By Act 16 of the 1985 Regular Session, the legislature *758 appropriated $75,000 for the construction of the new Senior Citizen Center. Act 16 further provided that the City would repay this $75,000 to the State when it sold the land upon which the old Senior Center was located, which is the land at issue in this litigation.

In 1986, the City had the building on the subject property, which had been used for the Senior Citizen Center, demolished. According to the City, it re-subdivided the property into three lots and found a buyer for two of the lots, but the lots were never sold due to a "cloud" on the title to the property which was caused by the reversionary clause in the 1979 Act of Transfer. Thereafter, on February 20, 1987, the Commissioner of Administration for the State of Louisiana executed an Act of Correction which indicated that the parties did not want the reversionary language providing for return of the property to the State to be included in the 1979 Act of Transfer and stated that "the parties agree to reform and correct the aforementioned Act of Transfer so as to delete the above cited reversionary clause from the provisions thereof."

According to the City, on June 16, 1993, the City sent a letter to the State requesting that the State execute documents to clear the City's title to the property. The State requested an opinion from the Louisiana Attorney General regarding ownership of the property. In Opinion No. 93-681, dated December 30, 1993, the Attorney General concluded that, pursuant to the reversionary clause in the Act of Transfer, ownership of the subject property vested in the State when the City demolished the building on the property. Thus, the State has claimed ownership of the property.

On October 6, 2006, the City of Harahan instituted this lawsuit by filing a Petition for Declaratory Judgment and Damages, seeking a declaration that the City owns the subject property. Trial of this matter was held on April 26, 2007, and the matter was submitted on the exhibits and memoranda of the parties. On May 11, 2007, the trial judge rendered a judgment in favor of the State and against the City, denying the City's Petition for Declaratory Judgment and finding the State to be the rightful owner of the property. The judgment further ordered the City to execute the necessary documents to restore title to the State and reserved the City's claim for damages.

On May 21, 2007, the City filed a Motion for New Trial, which was granted by the trial court on June 28, 2007. The new trial was held on July 18, 2007. On August 15, 2007, the trial court rendered the same judgment it had previously rendered on May 11, 2007, denying the City's Petition for Declaratory Judgment and finding that the property was owned by the State. It is from this judgment that the City appeals.

LAW AND DISCUSSION

On appeal, the City asserts that the trial court erred in finding that the State owns the subject property. We disagree.

In Act 599 of the 1979 Regular Session, the legislature authorized the State to transfer its right, title and interest in the subject property to the City of Harahan, and this act did not specify any terms or conditions required for the transfer. However, the 1979 Act of Transfer is the contract between the parties that transferred ownership of the property from the State to the City, and this contract set forth a resolutory condition upon which ownership of the property would revert to the State. LSA-C.C. art. 1767 provides that a conditional obligation is one dependent on an uncertain event, and a condition is resolutory if the obligation may be immediately enforced but will come to an end when the uncertain event occurs.

*759 The Act of Transfer provides that if the property ceases to be used as a Senior Citizen Home for five consecutive years or if the building on the property is removed, the transfer shall be null and void and the property shall revert back to the State. The terms of this document are clear and unambiguous. Although the City contends that the property was always intended to remain in the City's ownership, the terms of the Act of Transfer provide otherwise. When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties' intent. LSA-C.C. art. 2046.

The parties agree that the building on the subject property was demolished in 1986. Pursuant to the clear wording of the resolutory condition in the Act of Transfer, the transfer of the property to the City was null and void and ownership of the property reverted back to the State when the building was demolished.

The City contends that ownership of the property did not revert to the State when the building was demolished, because the State did not request that the City return ownership to the State by executing any documents as required by the reversionary clause. However, the language of the reversionary clause reveals that the City's argument is without merit.

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986 So. 2d 755, 2008 WL 2190856, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-harahan-v-state-ex-rel-doa-lactapp-2008.