Price v. U-Haul Co. of Louisiana

745 So. 2d 593, 1999 WL 694696
CourtSupreme Court of Louisiana
DecidedSeptember 8, 1999
Docket98-CA-1959
StatusPublished
Cited by8 cases

This text of 745 So. 2d 593 (Price v. U-Haul Co. of Louisiana) 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
Price v. U-Haul Co. of Louisiana, 745 So. 2d 593, 1999 WL 694696 (La. 1999).

Opinion

745 So.2d 593 (1999)

Harry PRICE
v.
U-HAUL COMPANY OF LOUISIANA, Self Storage Association, Chef Menteur Self-Service Storage, U-haul International, Inc., Richard Ieyoub and State of Louisiana.

No. 98-CA-1959.

Supreme Court of Louisiana.

September 8, 1999.
Rehearing Denied October 8, 1999.

Henry Minor Pipes, III, Phillip A. Wittmann, Melinda Morris Tucker, New Orleans, Richard P. Ieyoub, Attorney General, for Applicant.

Allain Freret Hardin, New Orleans, Chester C. Stetfelt, Jr., Metairie, for Respondent.

LEMMON, Justice.[*]

In this action, plaintiff seeks, among other relief, a declaration of the unconstitutionality of La.Rev.Stat. 9:4756-4760, entitled the "Self-Service Storage Facility Act." The Act grants to the owner-lessor of a self-service storage facility a privilege on the movable property of the lessee stored in the facility, securing the debt due the owner-lessor for rent, and further authorizes the owner-lessor, in the event of default by the lessee, as an alternative to judicial enforcement of the lease agreement, to cancel the lease and enforce the privilege by a procedure for non-judicial sale detailed in the statute. Among its provisions are notice to the lessee, by delivery or certified mail, of the lessor's intent to enforce unless paid within ten days; advertising a description of the movables to be sold and the date (not less than ten days from the advertisement), time and place of the intended sale to the highest bidder (with any surplus held for the lessee); and the right of the lessee, up until the moment of sale, to avoid sale by paying the debt and reasonable expenses.

*594 Defendants have appealed from a judgment declaring the Act unconstitutional as a violation of due process guarantees. Defendants' principal argument, based on Flagg Bros. v. Brooks, 436 U.S. 149, 98 S.Ct. 1729, 56 L.Ed.2d 185 (1978), is that their conduct was purely private action authorized by statute and did not constitute state action necessary to implicate due process guarantees.

Facts

In 1993, plaintiff entered into a written lease agreement with Chef Menteur Self-Service Storage (CMSS) in which plaintiff leased a mini-storage unit in CMSS's New Orleans facility. Six months later, CMSS sold the mini-storage units to U-Haul of Louisiana, and U-Haul assumed all the outstanding leases of the units.

Thereafter, plaintiff became delinquent in his rent payments. Invoking the Self-Service Storage Facility Act and the lease, U-Haul followed the procedures required in the Act and on April 4, 1994 sold by private auction the property contained in plaintiff's unit.

On February 18, 1997, plaintiff brought this class action on behalf of himself and all others similarly situated. On plaintiffs pre-trial motion, the trial judge rendered judgment declaring that La.Rev.Stat. 9:4756-4760 violated the Louisiana Constitution and observing that "Louisiana still does not allow self-help." This direct appeal followed. La. Const. art. V, § 5(D).

Due Process Challenges

La. Const. art. I, § 2 provides that "[n]o person shall be deprived of life, liberty, or property, except by due process of law." The Fourteenth Amendment to the United States Constitution provides "nor shall any State deprive any person of life, Liberty, or property, without due process of law."

An essential requirement in any due process challenge is that the claimant must show that some property or liberty interest has been adversely affected by state action. Delta Bank & Trust Co. v. Lassiter, 383 So.2d 330 (La.1980); Lee Hargrave, The Louisiana State Constitution: A Reference Guide 23 (1991)(state due process guarantee protects against governmental, as opposed to private, action). Here, it is undisputed plaintiff was deprived of rights that are protected by the due process guarantees of the federal and state constitutions against state action. The disputed issue, decisive of the constitutional challenge, is whether defendants' invoking the Act's provisions to conduct a private seizure and sale of plaintiffs property constituted state action. Defendants contend that their action involved purely private seizure and private sale of property, authorized by statute and by contract between the parties, and therefore was not state action that would implicate constitutional due process principles.

State Action Decisions under the United States Constitution

The federal and state due process guarantees are stated in virtually identical language. In determining the existence of state action, Louisiana courts have routinely turned to federal cases.

Historically, the federal jurisprudence generally subdivided the determination of state action into two basic categories of analysis: (1) public function concept and (2) nexus concept. Under the public function concept, state action was present when a private party engaged in certain governmental functions which were "state-like" enough to implicate the constitutional guarantees. Under the nexus concept, the state action determination turned on the relationship between the state and the activities of the alleged private wrongdoer. A subcategory of the nexus test was the state encouragement theory, under which the private party was said to have been encouraged by the state.[1] John E. Nowak, *595 et al., Constitutional Law 502-513 (2d. ed.1983). The nexus concept was a fluid one for which the courts declined to articulate a formal test, often stating that "[o]nly by sifting facts and weighing circumstances can the non-obvious involvement of the State in private conduct be attributed its true significance." Burton v. Wilmington Parking Authority, 365 U.S. 715, 81 S.Ct. 856, 6 L.Ed.2d 45 (1961).

After the Burton case, the Supreme Court in a series of cases addressed the issue of procedural due process in situations in which a creditor sought to deprive a debtor of a significant property interest. However, in the first three cases discussed below, state action was not at issue because a state official participated in the seizure of the property.

In Sniadach v. Family Finance Corp., 395 U.S. 337, 89 S.Ct. 1820, 23 L.Ed.2d 349 (1969), the Court struck down a Wisconsin statute that authorized prejudgment garnishment of wages as violative of due process rights generally to notice and hearing prior to seizure of property. The Court noted that prejudgment garnishment of wages may impose a tremendous hardship on wage earners with families to support.

In Fuentes v. Shevin, 407 U.S. 67, 92 S.Ct.

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745 So. 2d 593, 1999 WL 694696, Counsel Stack Legal Research, https://law.counselstack.com/opinion/price-v-u-haul-co-of-louisiana-la-1999.