LAKE TERRACE PROP. OWNERS ASS'N v. City of New Orleans

567 So. 2d 69, 1990 WL 130046
CourtSupreme Court of Louisiana
DecidedSeptember 6, 1990
Docket90-C-0620
StatusPublished
Cited by13 cases

This text of 567 So. 2d 69 (LAKE TERRACE PROP. OWNERS ASS'N v. City of New Orleans) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
LAKE TERRACE PROP. OWNERS ASS'N v. City of New Orleans, 567 So. 2d 69, 1990 WL 130046 (La. 1990).

Opinion

567 So.2d 69 (1990)

LAKE TERRACE PROPERTY OWNERS ASSOCIATION, Edga Verges, Wife of/and Edward J. McNamara and Peggy Farrar, Wife of/and Manuel Saavedra
v.
CITY OF NEW ORLEANS.

No. 90-C-0620.

Supreme Court of Louisiana.

September 6, 1990.

*71 Jay Kern, Tracy Bishop, Simon, Peragine, Smith & Redfearn, A.J. LaNasa, George R. Simno, III, and Charles Cabibi, New Orleans, for Lake Terrace Property Owners Ass'n, Edga Verges, wife of/and Edward J. McNamara and Peggy Farrar, wife of/and Manuel Saavedra, plaintiff-respondent.

Okla Jones, II, City Atty., William D. Aaron, Jr., Chief Deputy City Atty., and Ronald J. Pursell, Asst. City Atty., for City of New Orleans, defendant-applicant.

Regel L. Bisso and Robert G. Miller, Jr., Hulse, Nelson & Wanek, New Orleans for Mary Catherine and Mickey Easterling, third party applicant defendant-applicant.

MARCUS, Justice.[*]

The primary issues presented for our review are whether the Council of the City of New Orleans has the legal authority to alienate certain immovable property that is burdened with building restrictions requiring that the property be used as a public walkway, and, if so, whether the council's decision to sell the walkway because it was no longer needed for public purposes was arbitrary and capricious.

Lake Terrace is a subdivision developed by the Board of Levee Commissioners of the Orleans Parish Levee District, the original owner of the property. Its boundaries are Lake Pontchartrain, the London Avenue Canal, Robert E. Lee Boulevard, and Bayou St. John. At the board's direction, the property was surveyed and subdivided, and a map of the subdivision was executed. The board also established building restrictions to govern use of the subdivision property according to the general plan of development. Both the map and the building restrictions were filed for registry in the office of conveyances for the Parish of Orleans prior to the first sale of subdivision property by the board. Section IX of the building restrictions provides that servitudes of passage at the designated locations on the map are granted in favor of the New Orleans Public Service, Inc. for the purpose of maintaining electrical transformers. It further provides that in certain squares, including Square 33 at issue in the instant case, public walks will be established which will be dedicated to the City of New Orleans. The restrictions provide in pertinent part:

To provide access to these vaults for maintenance purposes, 12 foot easements will be provided for the use of the New Orleans Public Service, Inc. as indicated on the Map of Lake Terrace. The areas on which these easements and transformers rest will be owned by the Orleans Levee Board, except in Squares Nos. 6, 27, 32 and 33, where public walks are provided to conform to the regulations of the City Planning and Zoning Commission, in which case the walks will be widened to 12 feet to permit their use by the New Orleans Public Service, Inc. In this case, the easements are public property and will be dedicated to the City of New Orleans.

The central purpose of the building restrictions establishing the "easements" is to provide a means of passage to the utility company for maintenance of the subdivision's electrical transformers. The property at issue in the instant case is a walkway located in Square 33 of the subdivision which is subject to use by both the utility company and by the public. The walkway is approximately 240 feet long, 12 feet wide, and runs from Lakeshore Drive to Oriole Street adjacent to four subdivision lots (Lots 5, 6, 13 and 14). An electrical transformer vault is located in the rear corner of Lot 14 near the midpoint of the walkway. The walkway does not continue through the subdivision.

On February 22, 1957, pursuant to a previously adopted resolution, the board *72 executed an act of dedication in authentic form in which it dedicated the streets, parks and walkways in Lake Terrace subdivision to the City of New Orleans. The act provides in pertinent part: "The Board of Levee Commissioners of the Orleans Levee District does hereby transfer, assign, set over, give, grant and dedicate to and in favor of the City of New Orleans all of the streets and walkways in Lake Terrace Subdivision...." The act of dedication contains a full description of all of the dedicated property, including in particular the walkway in Square 33. In the same act, the mayor of the City of New Orleans as authorized by the city council accepted the dedication of the streets, parks and walkways in the subdivision.

In March 1981, Councilman Hellmers introduced before the city council an ordinance declaring that the walkway in Square 33 of the Lake Terrace Subdivision was no longer needed for public use, and that it would be sold at public auction. Ordinance No. 8116 divided the walkway into three parcels. Parcel 1 is 125 feet long, 10 feet wide and is located between Lots 5 and 6. Parcels 2 and 3 are each 118 feet long, 6 feet wide and are located between Lots 13 and 14. The ordinance stated that the successful bidders must incorporate the parcels into their present property. The ordinance further expressly provided that the sale would be subject to the building restrictions which established servitudes of passage in favor of the utility company and the public. Section four of the ordinance provides: "The building restrictions for Lake Terrace Subdivision shall be attached hereto and made a part hereof. Specifically this property shall be maintained as a walkway as long as said title restrictions require so." At a meeting on May 7, 1981, the council heard the recommendations of the city planning commission, and proponents and opponents of the ordinance. The city planning commission had no objections to the sale provided that the ordinance made the sale subject to the building restrictions. After the hearing, the council unanimously adopted Ordinance No. 8116, authorizing the sale of the walkway in Square 33 of Lake Terrace Subdivision subject to the restrictions as aforesaid. The mayor then signed the ordinance on May 11, 1981.

On October 29, 1987, the acting Director of the Department of Property Management, Mr. James W. Kirkland, issued a notice that on November 23, 1987 the city would offer for sale at public auction the three parcels comprising the walkway in Square 33 of Lake Terrace Subdivision. This notice appeared in the official journal of the city, The Times-Picayune/The States-Item, on November 9, 13 and 16, 1987. However, on November 18, 1987, prior to the sale, suit was filed by the Lake Terrace Property Owners Association, Inc. and several residents of the subdivision against the City of New Orleans, seeking a temporary restraining order, and preliminary and permanent injunctions against the sale of the walkway. The trial judge granted a temporary restraining order, and fixed a date for a hearing to show cause why a preliminary injunction should not issue. Mrs. Mary Catherine Easterling, an owner of land adjacent to Parcel 1 (Lot 6), intervened in the suit and joined the city in resisting the plaintiffs' demand.[1] After a hearing, the trial judge denied plaintiffs' request for a preliminary injunction and found that the city owned the property in dispute and had legal authority to alienate the property after determining that it was no longer needed for public use. Plaintiffs appealed. The court of appeal reversed, finding that the building restrictions required that the walkway remain public and precluded the city's sale of the property.[2]

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Bluebook (online)
567 So. 2d 69, 1990 WL 130046, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-terrace-prop-owners-assn-v-city-of-new-orleans-la-1990.