NEW ORLEANS REDEV. AUTH. v. Stroughter

861 So. 2d 940, 2003 WL 22999506
CourtLouisiana Court of Appeal
DecidedDecember 17, 2003
Docket2003-CA-1085
StatusPublished
Cited by5 cases

This text of 861 So. 2d 940 (NEW ORLEANS REDEV. AUTH. v. Stroughter) 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
NEW ORLEANS REDEV. AUTH. v. Stroughter, 861 So. 2d 940, 2003 WL 22999506 (La. Ct. App. 2003).

Opinion

861 So.2d 940 (2003)

NEW ORLEANS REDEVELOPMENT AUTHORITY
v.
Frances Collins STROUGHTER, Individually and through Provisional Curator Adrian Stroughter; Estate of James W. Stroughter, through Administrator Joseph Neves Marcal, III; and the United States of America.

No. 2003-CA-1085.

Court of Appeal of Louisiana, Fourth Circuit.

December 17, 2003.
Rehearing Denied January 15, 2004.

*941 Christopher Gobert, Cade, Collins & Gobert, New Orleans, LA, for Plaintiff/Appellee.

James E. Uschold, James E. Uschold, PLC, New Orleans, LA, for Defendant/Appellant.

(Court composed of Judge JOAN BERNARD ARMSTRONG, Judge CHARLES R. JONES, and Judge PATRICIA RIVET MURRAY).

PATRICIA RIVET MURRAY, Judge.

This is an expropriation proceeding. The primary issue before us is whether the trial court erred in denying the defendant-tax sale purchaser's request for attorney's fees pursuant to La. R.S. 19:201 based upon the plaintiff-expropriating authority's dismissal of the proceeding. Finding no error, we affirm.

FACTUAL AND PROCEDURAL BACKGROUND

The underlying facts of this case basically are undisputed. Since 1971, Frances Collins wife of/and James W. Stroughter have been the record owners of the property located at 3701 Baronne Street, New Orleans, Louisiana (the "Property"). On May 31, 2000, the Administrative Adjudication Bureau of the New Orleans Health Department declared the Property blighted and eligible for expropriation; that determination apparently was not appealed. The Health Department referred the matter to New Orleans Redevelopment Authority ("NORA"), a governmental agency, *942 which has the statutory authority to expropriate blighted properties.

Pursuant to its statutory authority, NORA identified a prospective purchaser for the Property, Shelita Scott. Ms. Scott then commissioned the required appraisals. According to the appraisals, the Property was valued at $5,000. On December 8, 2000, NORA and Ms. Scott entered into an Agreement to Purchase and Sell the Property. Under that agreement, Ms. Scott agreed to purchase the Property at its appraised value and to renovate it within 270 days of her acquisition. Ms. Scott tendered the $5,000 for deposit into the registry of the court in the impending expropriation proceeding. The Agreement, however, was conditioned on NORA succeeding in expropriating the property.

On November 15, 2001, Wesley Alden d/b/a Crescent City Property Services ("Dr. Alden") purchased the Property at tax sale from the City of New Orleans. However, the City did not execute a tax deed to Dr. Alden until July 31, 2002, and Dr. Alden did not record the tax deed until August 15, 2002.

By letter dated December 5, 2001, Dr. Alden informed NORA that he had purchased the Property at tax sale and that he had "begun the process of refurbishing" it. On December 7, 2001, NORA physically inspected the Property and found no work in progress. By letter dated December 10, 2001, NORA advised Dr. Alden that it would "continue its expropriation proceeding until there is evidence of work in progress and will not remove the subject property from its inventory until [it is] completely renovated."

On March 13, 2002, NORA filed a petition to expropriate the Property. It named as defendants the record owners of the Property, Mr. and Mrs. Stroughter. Because Mr. Stroughter died in 1995, NORA named his estate as a party. Because Mrs. Stroughter's whereabouts were unknown, NORA requested a curator ad hoc be appointed to represent her.[1]

The trial was initially set for July 2, 2002. At some time before that date, NORA apparently obtained a tax certificate that indicated Dr. Alden had paid the taxes on the Property. As a result, on June 14, 2002, NORA filed a First Supplemental and Amending Petition for Expropriation adding Dr. Alden as an additional defendant, stating that he was the "purchaser of the referenced property for unpaid 1997 taxes assessed in the name of Mr. James W. Stroughter, as reflected by unrecorded tax sale from the City of New Orleans dated November 13, 2001." At NORA's request, the trial court continued and reset the trial for September 12, 2002.

On August 26, 2002, Dr. Alden answered, claiming to be the "owner" of the Property. He also filed several exceptions (lack of subject matter jurisdiction, prematurity, want of amicable demand, improper cumulation of actions, res judicata, no cause of action, and no right of action). Dr. Alden requested that the trial court hear his exceptions on September 12, 2002, the then scheduled trial date. On September 5, 2002, the trial court rejected that request, ruling that "[t]rial is continued without date by court. Mover should file a new motion to have the exceptions scheduled for Rule Day."

On August 28, 2002, NORA re-inspected the Property and again found no work in progress; it remained blighted. Thereafter, the trial date was reset for December 16, 2002. On December 6, 2002, NORA once again inspected the Property *943 and found that the Property was being renovated. NORA then moved to continue the trial without date. The trial court granted that request.

On January 14, 2003, the trial court granted NORA's "Motion and Order to Dismiss Without Prejudice and to Withdraw Funds Deposited in the Court Registry" based on NORA's representation that "the grounds for this action have been removed." The court ordered that the expropriation action be dismissed with each party to bear its own costs and further ordered the $5,000 deposit be disbursed as follows: $640.60 to Ms. Stroughter's curator, $406.88 to NORA's counsel for costs advanced, $248.00 to the Clerk of Court, and the $3,704.52 balance to NORA.

On January 16, 2003, Dr. Alden filed a "Partial Opposition to Motion to Dismiss Without Prejudice and to Withdraw Funds Deposited in the Court Registry; and Motion by Alden for Award of Attorneys Fees and Costs." Although Dr. Alden agreed that the grounds for the expropriation action had been removed and did not oppose the dismissal, he asserted that it should have been dismissed with prejudice. Citing La. R.S. 19:201, he further asserted that he is entitled to an award of reasonable attorney's fees and costs payable out of the money deposited into the registry of the court.

NORA opposed Dr. Alden's request for attorney's fees. It argued that La. R.S. 19:201 only avails an "owner" of the property in a failed expropriation case and that it does not avail an unrecorded tax purchaser. Alternatively, NORA argued that "absolutely nothing Dr. Alden's attorney did had anything to do with the outcome of this case."

On March 10, 2003, the trial court issued an order overruling Dr. Alden's partial opposition to dismiss without prejudice and denying his motion for an award of attorney's fees and costs. At the February 28, 2003 hearing on Dr. Alden's motion, the trial court rendered the following oral ruling, which it indicated included its reasons for judgment:

The motion to dismiss with prejudice and the motion for attorney's fees is denied. It is axiomatic in Louisiana law that an ownership interest in real property cannot be acquired except by a written act. In the case at bar, Dr. Alden did not have a written act until July 31, 2002; and he lacked a recorded interest in the property until August 15, 2002, approximately five months after the initial expropriation action had been filed. Therefore, it is undisputed that prior to August 15, 2002 Dr. Alden's interest in 3701 Baronne Street had been utterly null and void as to third parties, such as NORA. After August 15th, in the opinion of this Bench, Dr.

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Cite This Page — Counsel Stack

Bluebook (online)
861 So. 2d 940, 2003 WL 22999506, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-orleans-redev-auth-v-stroughter-lactapp-2003.