Coastal Development Group, Inc. of Greater New Orleans v. Christopher I. Lund and Federal National Mortgage Association (Fannie Mae)

CourtLouisiana Court of Appeal
DecidedJanuary 11, 2023
Docket2022-CA-0598
StatusPublished

This text of Coastal Development Group, Inc. of Greater New Orleans v. Christopher I. Lund and Federal National Mortgage Association (Fannie Mae) (Coastal Development Group, Inc. of Greater New Orleans v. Christopher I. Lund and Federal National Mortgage Association (Fannie Mae)) 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
Coastal Development Group, Inc. of Greater New Orleans v. Christopher I. Lund and Federal National Mortgage Association (Fannie Mae), (La. Ct. App. 2023).

Opinion

COASTAL DEVELOPMENT * NO. 2022-CA-0598 GROUP, INC. OF GREATER NEW ORLEANS * COURT OF APPEAL VERSUS * FOURTH CIRCUIT CHRISTOPHER I. LUND AND * FEDERAL NATIONAL STATE OF LOUISIANA MORTGAGE ASSOCIATION ******* (FANNIE MAE)

APPEAL FROM CIVIL DISTRICT COURT, ORLEANS PARISH NO. 2020-05093, DIVISION “B-5” Honorable Rachael Johnson, ****** Judge Rosemary Ledet ****** (Court composed of Judge Rosemary Ledet, Judge Tiffany Gautier Chase, Judge Nakisha Ervin-Knott)

Kyle Salvador Sclafani SCAFIDEL LAW FIRM, L.L.C. 4130 Canal Street New Orleans, LA 70119

COUNSEL FOR PLAINTIFF/APPELLEE

Gregory Swafford ATTORNEY AT LAW 4734 Franklin Avenue New Orleans, LA 70122--6112

COUNSEL FOR DEFENDANT/APPELLANT

AFFIRMED January 11, 2023 RML This is an action to quiet title to a property interest purchased by the

TGC appellee, Coastal Development Group Inc. of Greater New Orleans (“Coastal”) at a

NEK tax sale. The appellant, Christopher I. Lund, appeals the trial court’s partial

summary judgment declaring Coastal’s full ownership of its property interest and

the trial court’s judgment denying Mr. Lund’s motion for new trial of the summary

judgment motion. For the following reasons, we affirm.

PROCEDURAL AND FACTUAL BACKGROUND

Coastal purchased an undivided ninety-nine percent interest in immovable

property bearing municipal address 3420-3422 Bienville Avenue in New Orleans

(“the Property”) at a 2018 tax sale. Coastal paid the outstanding taxes on the

Property and recorded the tax sale certificate in the Orleans Parish conveyance

records in May 2018. In June 2020, Coastal filed a petition to quiet title and to

partition the Property, naming Mr. Lund, the owner of the remaining one-percent

interest in the Property, as a defendant.

Coastal alleged the Property was blighted and thus subject to an eighteen-

month delay to redeem the Property under La. Const. art. 7, § 25(B)(2). Coastal

alleged that the redemption period expired before it filed the quiet title action.

1 Coastal served the petition and citation personally on Mr. Lund. Mr. Lund

answered Coastal’s petition in December 2020, denying the allegations of

Coastal’s petition and raising several affirmative defenses.1

Other than filing his December 2020 answer to Coastal’s petition, Mr. Lund

took no steps to redeem the Property or to defend against Coastal’s action. In

April 2021, Coastal filed a motion for partial summary judgment. In its summary

judgment motion, Coastal argued that it was entitled to a judgment declaring it

owner of a ninety-nine percent interest in the Property due to Mr. Lund’s failure to

redeem the Property within the redemption period. Coastal served Mr. Lund

personally with the motion for partial summary judgment. Mr. Lund did not

oppose Coastal’s summary judgment motion and failed to appear at the November

2021 hearing on Coastal’s motion. The trial court granted Coastal’s summary

judgment motion and declared Coastal owner of an undivided ninety-nine percent

interest in the Property.

In April 2022, Mr. Lund, now represented by counsel, filed a motion for new

trial of Coastal’s motion for partial summary judgment.2 Mr. Lund argued the

partial summary judgment was contrary to the law and evidence, because genuine

issues of material fact remained as to whether the applicable redemption period

was eighteen months—reserved for properties deemed blighted or abandoned—or

three years—applicable to all other property. Coastal opposed the motion for new

trial, maintaining that the eighteen-month redemption period applied. Regardless,

Coastal argued, the issue was moot, because the three-year redemption period 1 Mr. Lund filed his answer in proper person.

2 Mr. Lund asserted that his motion for new trial was timely despite filing it more than five

months after the signing of judgment, because the clerk of court sent notice to an old address for Mr. Lund. The parties do not dispute the timeliness of Mr. Lund’s motion for new trial on appeal.

2 elapsed before the trial court issued its summary judgment in favor of Coastal,

extinguishing Mr. Lund’s redemption rights under either redemption period.

Agreeing with Coastal, the trial court denied Mr. Lund’s motion for new trial.3 Mr.

Lund’s appeal followed.

STANDARD OF REVIEW AND GOVERNING LEGAL PRINCIPLES

Mr. Lund’s assignments of error on appeal are directed to the trial court’s

ruling on his motion for new trial. “The applicable standard of review in ruling on

a motion for new trial is whether the district court abused its discretion.” Davis v.

Witt, 02-3102, p. 19 (La. 7/2/03), 851 So.2d 1119, 1131 (internal citations

omitted). “[A] motion for new trial based on the contention that a judgment is

contrary to the law and evidence should be denied if the trial court’s ruling is

supportable by any fair interpretation of evidence, and a trial court judgment

denying a motion for new trial should not be reversed unless the appellate court

finds that the trial court abused its great discretion. 1137 N. Robertson, LLC v.

Jackson, 19-0553, p. 4 (La. App. 4 Cir. 11/20/19), ___ So.3d ___, ___, 2019 WL

6200294, **7–8.

A redemption period is “the period in which a person may redeem property

as provided in the Louisiana Constitution.” La. R.S. 47:2122(11). Property sold

for non-payment of taxes “shall be redeemable for three years after the date of

recordation of the tax sale, by paying the price given, including costs, five percent

penalty thereon, and interest at the rate of one percent per month until redemption.”

La. Const., art. VII, § 25(B)(1). But, an exception to the three-year redemption

period is set forth in La. Const., art. VII, § 25(B)(2), which provides:

3 The trial court also denied a motion to annul the quiet title judgment filed by Mr. Lund and

granted Coastal’s motion to partition the Property by private sale. Mr. Lund has not appealed these judgments.

3 In the city of New Orleans, when such property sold is residential or commercial property which is abandoned property as defined by R.S. 33:4720.12(1) or blighted property as defined by Act 155 of the 1984 Regular Session, it shall be redeemable for eighteen months after the date of recordation of the tax sale by payment in accordance with Subparagraph (1) of this Paragraph.

It is well settled that the redemption periods provided in the Louisiana

Constitution are peremptive. Smith v. Brumfield, 13-1171, p. 12 (La. App. 4 Cir.

1/15/14), 133 So.3d 70, 78 (citing La. R.S. 47:2241 and Harris v. Estate of Fuller,

532 So.2d 1367, 1371 (La. 1988)). “Peremption is a period of time fixed by law

for the existence of a right. Unless timely exercised, the right is extinguished upon

the expiration of the peremptive period.” La. C.C. art. 3458. “Peremption may not

be renounced, interrupted, or suspended.” La. C.C. art. 3461. Peremption differs

from prescription in two respects: “(1) the expiration of the peremptive time period

destroys the cause of action itself; and (2) nothing may interfere with the running

of a peremptive time period.” Naghi v. Brener, 08-2527, p. 11 (La. 6/26/09), 17

So.3d 919, 926.

DISCUSSION

On appeal, Mr. Lund assigns two errors. First, Mr. Lund argues that the trial

court erred in denying his motion for new trial, because factual issues remain as to

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Related

Harris v. Estate of Fuller
532 So. 2d 1367 (Supreme Court of Louisiana, 1988)
Naghi v. Brener
17 So. 3d 919 (Supreme Court of Louisiana, 2009)
Harris v. Guardian Funds, Inc.
425 So. 2d 1322 (Louisiana Court of Appeal, 1983)
Davis v. Witt
851 So. 2d 1119 (Supreme Court of Louisiana, 2003)
Smith v. Brumfield
133 So. 3d 70 (Louisiana Court of Appeal, 2014)

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Bluebook (online)
Coastal Development Group, Inc. of Greater New Orleans v. Christopher I. Lund and Federal National Mortgage Association (Fannie Mae), Counsel Stack Legal Research, https://law.counselstack.com/opinion/coastal-development-group-inc-of-greater-new-orleans-v-christopher-i-lactapp-2023.