Larkin Development North, L.L.C. v. City of Shreveport consolidated with Larkin Development at Railsback, L.L.C. v. City of Shreveport

CourtLouisiana Court of Appeal
DecidedMarch 4, 2020
Docket53,374-CA 53,375-CA
StatusPublished

This text of Larkin Development North, L.L.C. v. City of Shreveport consolidated with Larkin Development at Railsback, L.L.C. v. City of Shreveport (Larkin Development North, L.L.C. v. City of Shreveport consolidated with Larkin Development at Railsback, L.L.C. v. City of Shreveport) 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
Larkin Development North, L.L.C. v. City of Shreveport consolidated with Larkin Development at Railsback, L.L.C. v. City of Shreveport, (La. Ct. App. 2020).

Opinion

Judgment rendered March 4, 2020. Application for rehearing may be filed within the delay allowed by Art. 2166, La. C.C.P.

No. 53,374-CA No. 53,375-CA (Consolidated Cases)

COURT OF APPEAL SECOND CIRCUIT STATE OF LOUISIANA

*****

No. 53,374-CA No. 53,375-CA

LARKIN DEVELOPMENT LARKIN DEVELOPMENT NORTH, L.L.C. AT RAILSBACK, L.L.C. Plaintiff-Appellant Plaintiff-Appellant

versus versus

CITY OF SHREVEPORT CITY OF SHREVEPORT Defendant-Appellee Defendant-Appellee

Appealed from the First Judicial District Court for the Parish of Caddo, Louisiana Trial Court Nos. 599393 and 599394

Honorable Michael A. Pitman, Judge

SINCLAIR LAW FIRM, L.L.C. Counsel for Appellants By: Scott C. Sinclair

COOK, YANCEY, KING & Counsel for Appellee GALLOWAY, APLC By: Elizabeth Mendell Carmody James Ashby Davis Jason Blance Nichols

Before STONE, COX, and McCALLUM, JJ. McCALLUM, J.

Larkin Development North, L.L.C. (“LDNorth”), and Larkin

Development at Railsback, L.L.C. (“LDRailsback”), filed inverse

condemnation actions against the City of Shreveport (“Shreveport”). In

response, Shreveport filed exceptions of no cause of action, lack of subject

matter jurisdiction, and prematurity. The trial court granted the exceptions,

compelling LDNorth and LDRailsback to file the instant appeal before us.

PROCEDURAL BACKGROUND

Since the trial court granted the exceptions at issue, it did not consider

the merits of the case. Therefore, we will note the factual highlights of this

case and review its procedural background.

Between July, 2006 and April, 2007, LDRailsback and LDNorth

purchased adjacent property totaling 137 acres of land. In 2016, they filed

applications for approval of plat designations with the Shreveport-Caddo

Metropolitan Planning Commission (“MPC”). In February of 2017, MPC

denied the applications. Upon subsequent review, the Shreveport City

Council affirmed the MPC’s denial of the plat applications.

LDRailsback and LDNorth then filed their inverse condemnation

actions under Louisiana law against Shreveport. They alleged that by

denying their plat applications Shreveport prevented their ability to develop

the property into profitable residential lots. They sought just compensation

for their losses caused by Shreveport’s denial of the applications.

Thereafter, LDRailsback applied for additional plats with MPC. MPC

denied the new applications and the Shreveport City Council affirmed the

decision. LDRailsback then amended its petition to include that most recent

plat application denial. MPC’s reason for denying the plat applications was that the land in

question was in the pathway of the possible future extension of LA 3132.

No party disputes that LDRailsback and LDNorth did not seek judicial

review of the plat application denials. Alleging that Shreveport’s denials

prevented them from developing the property to its full extent, LDNorth and

LDrailsback filed their inverse condemnation actions, seeking compensation

under Louisiana law.

In response, Shreveport filed peremptory exceptions of no cause of

action, and alternatively, declinatory exceptions of lack of subject matter

jurisdiction and dilatory exceptions of prematurity. Shreveport argued that

LDNorth and LDRailsback must first exhaust all administrative and judicial

review options prior to bringing any actions for inverse condemnation. With

the petitioners failing to exhaust such remedies, Shreveport alleged that they

had no cause of action, that the trial court lacked subject matter jurisdiction,

and that the actions were premature. LDNorth and LDRailsback countered

that their damages and inverse condemnation actions arose at the time that

MPC and Shreveport denied the plat applications.

The trial court granted the exceptions. Citing Louisiana Court of

Appeal, First Circuit, jurisprudence, it ruled that LDNorth and LDRailsback

must first exhaust their rights to direct appeal of the MPC and city council

decisions. Essentially, before proceeding with their actions for inverse

condemnation, the petitioners must first exhaust all administrative remedies.

Without such remedies sought, the trial court found that the petitioners failed

to show a cause of action and thus failed to show that the district court had

subject matter jurisdiction over the matter. Furthermore, it found that that

the issue of compensation was not ripe for judicial consideration. 2 STANDARD OF REVIEW

Whether a district court has subject matter jurisdiction over a case is

subject to de novo review. Beasley v. Nezi, LLC, 2016-1080 (La. App. 1 Cir.

9/8/17), 227 So. 3d 308. The standard of review for an appeal of a no cause

of action ruling is de novo. Acurio v. Cage, 52,309 (La. App. 2 Cir.

9/26/18), 257 So. 3d 824, writ denied, 2018-1762 (La. 1/8/19), 260 So. 3d

581. Appellate review of a prematurity exception ruling is typically

manifest error; however, when the ruling involves a question of law, it is

reviewed de novo. Bayou Orthotic & Prosthetics Ctr., L.L.C. v. Morris

Bart, L.L.C., 2017-557 (La. App. 5 Cir. 3/28/18), 243 So. 3d 1276.

Therefore, our review standard for all matters regarding this case is de novo.

DISCUSSION

JURISPRUDENTIAL CONFLICT

LDNorth and LDRailsback argue that the trial court erred in requiring

that they first exhaust all administrative remedies. Shreveport counters that

Louisiana law requires that LDNorth and LDRailsback first seek all

administrative remedies before filing for compensation. In essence, one

party argues that the right to compensation arose immediately upon the

alleged taking. The other party argues that the exhaustion doctrine prevents

claims for compensation from arising until all administrative remedies are

pursued. Thus, no cause of action exists until all measures to prevent the

damages from arising are exhausted. The trial court agreed with the latter.

In its decision, the trial court cited two cases for support of its

judgment: Mercan, Inc. v. City of Baton Rouge, 2000-0660 (La. App. 1 Cir.

5/11/2001), 797 So. 2d 722, writ denied, 2001-1685 (La. 9/21/01), 797 So.

2d 676; and Liberty Mutual Ins. Co. v. Louisiana Ins. Rating Comm’n, 1997- 3 1043 (La. App. 1 Cir. 6/29/98), 713 So. 2d 1250, writ denied, 1998-2072

(La. 11/6/98), 728 So. 2d 396. Citing the above cases, the trial court ruled

that because LDNorth and LDRailsback failed to directly appeal the plat

application denials, they then had no causes of action for inverse

condemnation. The trial court further found that it lacked subject matter

jurisdiction and that any action for compensation was premature.

In Mercan, the Louisiana Court of Appeal, First Circuit, considered

whether a party had a cause of action for damages. The City of Baton

Rouge, through its Subdivision Review Committee, denied a subdivision

application to Mercan, Inc. Mercan, Inc. v. City of Baton Rouge, supra.

Although it alleged that the denial was arbitrary and capricious, Mercan did

not appeal the city’s decision to the district court. Id. Instead, Mercan sold

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Larkin Development North, L.L.C. v. City of Shreveport consolidated with Larkin Development at Railsback, L.L.C. v. City of Shreveport, Counsel Stack Legal Research, https://law.counselstack.com/opinion/larkin-development-north-llc-v-city-of-shreveport-consolidated-with-lactapp-2020.