Mid-City Automotive, L.L.C. v. State of Louisiana, The Department of Public Safety & Corrections Office of State Police

Louisiana Court of Appeal·Decided April 8, 2022·No. 2021CW0680·Unknown

Opinion

STATE OF LOUISIANA

COURT OF APPEAL

FIRST CIRCUIT

NOS. 2021 CA 1024

and 2021 CW 0680

MID -CITY AUTOMOTIVE, L.L.C.

VERSUS

STATE OF LOUISIANA,

THE DEPARTMENT OF PUBLIC SAFETY AND CORRECTIONS, OFFICE OF STATE POLICE

Judgment Rendered: APR 0 8 2022

Appealed from the

19th Judicial District Court Parish of East Baton Rouge, State of Louisiana No. C647483

The Honorable Wilson E. Fields, Judge Presiding

Dennis J. Phayer Attorney for Defendant/Appellant, Jenna H. Lin The State of Louisiana, through the Metairie, Louisiana Department of Public Safety and Corrections, Office of State Police

Larry S. Bankston Attorneys for Plaintiffs/ Appellees, Baton Rouge, Louisiana Mid -City Automotive, LLC, Riverside Towing, Inc., and similarly Situated individuals and entities

BEFORE: McDONALD, LANIER, AND WOLFE, JJ.

WOLFE, J.

The State of Louisiana, through the Department of Public Safety and

Corrections, Office of State Police, appeals a summary judgment ordering it to reimburse the plaintiff class $ 851, 185. 83, which was collected pursuant to a

schedule of fines that was declared unconstitutional, as well as judicial interest and

costs.

A supervisory writ application filed by the Office of State Police that seeks

review of the trial court' s denial of its exception of lack of subject matter jurisdiction was also referred to this panel for consideration. We deny the writ application and affirm the summary judgment.

FACTS AND PROCEDURAL HISTORY

The facts and procedural history of this matter are set forth in this court' s prior decisions of Mid -City Automotive, L.L.C. v. Department of Public Safety and Corrections, 2018- 0056 ( La. App. 1st Cir. 11/ 7/ 18), 267 So. 3d 165 ( Mid -City I), and Mid -City Automotive, L.L.C. v. Department of Public Safety and Corrections, 2019- 1429 ( La. App. 1st Cir. 9/ 21/ 20), 314 So. 3d 36 ( Mid -City II). In short, Mid -City Automotive, LLC, instituted this suit for declaratory judgment and injunctive relief, challenging the constitutionality of certain provisions of LAC 55: I. 1907( A), including the schedule of fines promulgated by the Office of State Police pursuant to its regulatory authority under The Louisiana Towing and Storage Act. See La. R.S. 32: 1714. In Mid -City I, this court rendered judgment declaring that the schedule of fines set forth in LAC 55: I. 1907( A)(4) was invalid due to an

unconstitutional delegation of legislative authority to the Office of State Police and issued an injunction against further enforcement of the fines.' Mid -City I, 267 So. 3d at 178.

1 Mid -City additionally challenged the license suspension and revocation provisions of LAC55: I. 1907( A)( 5) and ( 6). In Mid -City I, this court vacated the trial court' s judgment insofar as it upheld those provisions and remanded the matter for a determination of whether Mid -City satisfied the administrative review provisions of La. R.S. 49: 963D. Mid -City I, 267 So. 3d at 173- 74.

Mid -City then amended its petition to add Riverside Towing, Inc., as a

plaintiff and assert a class action seeking reimbursement of all fines paid under the provision declared invalid in Mid -City I. The trial court granted the plaintiffs'

motion for class certification and certified the class of plaintiffs to include " all

persons, natural and/or juridical, who have paid a fine pursuant to the Schedule of

Fines, LAC 55: I. 1907( A), in the state of Louisiana from October 20, 2009, through

the present, as a result of the application of LAC 55: I. 1907( A)." Mid -City II, 314 So. 3d at 39. The Office of State Police appealed and this court affirmed the trial

court' s judgment, rejecting the Office of State Police' s argument that the plaintiffs' claims were prescribed. Mid -City II, 314 So. 3d at 42.

Following this court' s decision in Mid -City II, the plaintiff class filed a motion for summary judgment, seeking full repayment of the amounts the Office of State Police fined and collected from them under LAC 55: I. 1907( A), which totaled

851, 185. 83. The plaintiffs argued that since this court declared the schedule of

fines to be unconstitutional, the provision is void ab initio and all acts done pursuant

thereto are void and of no effect. The plaintiffs further argued that since the

unlawfully collected fines were their private property, the Office of State Police was obligated to refund them.

The Office of State Police then filed an exception of lack of subject matter

jurisdiction based on sovereign immunity. The Office of State Police contended the

plaintiffs' claims were for unjust enrichment and "[ could] only be characterized as quasi -contractual in nature." Consequently, the Office of State Police argued, the plaintiffs' claims do not fall within the scope of the state' s waiver of sovereign

immunity from suits in contract or tort found in La. Const. art. XII, Sect. 10( A), and the court lacked jurisdiction to entertain them. The plaintiffs' disputed the Office of State Police' s characterization of their claims as quasi -contractual. The plaintiffs

argued that the state is not immune from suits brought against it where a public entity

is proceeding in violation of law, which they point out has been determined in this case; therefore, the plaintiffs contended, due process demands the return of the

plaintiffs' unconstitutionally taken property. They further argued that the licensee and licensor relationship between the plaintiffs and the state is contractual and falls within the state' s waiver of sovereign immunity.

In its opposition to the motion for summary judgment, the Office of State Police contended that the plaintiffs failed to demonstrate they were entitled to judgment as a matter of law, raising the same issue of sovereign immunity. Alternatively, the Office of State Police argued that issues of fact precluded the retroactive application of Mid -City I and this court' s declaration that LAC 55: I. 1907( A) is unconstitutional. In essence, the Office of State Police argued that

reimbursement would result in injustice and hardship on the state and its citizens because the money has already been spent on governmental operations and programs.

The trial court denied the Office of State Police' s exception of lack of subject

matter jurisdiction and granted the plaintiffs' motion for summary judgment, ordering the Office of Sate Police to repay the plaintiffs $ 851, 185. 83, plus judicial

interest and court costs. The Office of State Police suspensively appealed the summary judgment and filed an application for supervisory writ that seeks review of the trial court' s ruling on the exception.

SUBJECT MATTER JURISDICTION

Subject matter jurisdiction is the legal power and authority of a court to adjudicate a particular matter involving the legal relations of the parties and to grant the relief to which the parties are entitled. La. Code Civ. P. arts. 1 and 2. It cannot

be conferred by the consent of the parties or waived. La. Code Civ. P. art. 3. The

issue of subject matter jurisdiction may be raised at any stage of the proceeding and must be considered as a threshold issue even if it is not raised by the parties. See

Boudreaux v. State, Department of Transportation and Development, 2001- 1329 ( La. 2/ 26/ 02), 815 So. 2d 7, 12- 13.

Sovereign immunity bars a court from exercising jurisdiction in suits against the state unless the state has elected to waive its immunity. See Coleman v. Court

of Appeals of Maryland, 566 U.S. 30, 132 S. Ct. 1327, 1333, 182 L.Ed.2d 296

2012). Article XII, Section 102 of the Louisiana Constitution of 1974 contains an

unequivocal, self-executing waiver of the state' s sovereign immunity as to suit and liability in contract and tort cases. Fulmer v. State, Department of Wildlife and

Fisheries, 2010- 2779 ( La. 7/ 1/ 11), 68 So. 3d 499, 503, cert. denied 565 U.S. 1198,

132 S. Ct. 16229 182 L.Ed2d 165 ( 2012). The plain language of the provision does

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Mid-City Automotive, L.L.C. v. State of Louisiana, The Department of Public Safety & Corrections Office of State Police, (La. Ct. App. 2022).

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