State v. TWIN CITIES MEMORIAL GARDENS, INC.

997 So. 2d 16, 2008 WL 4226024
CourtLouisiana Court of Appeal
DecidedSeptember 17, 2008
Docket43,568-CA
StatusPublished
Cited by3 cases

This text of 997 So. 2d 16 (State v. TWIN CITIES MEMORIAL GARDENS, INC.) 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
State v. TWIN CITIES MEMORIAL GARDENS, INC., 997 So. 2d 16, 2008 WL 4226024 (La. Ct. App. 2008).

Opinion

997 So.2d 16 (2008)

STATE of Louisiana and the Louisiana Cemetery Board, Plaintiff-Appellees
v.
TWIN CITIES MEMORIAL GARDENS, INC., Defendant-Appellant.

No. 43,568-CA.

Court of Appeal of Louisiana, Second Circuit.

September 17, 2008.
Rehearing Denied October 16, 2008.

*18 Paul A. Lemke, III, for Appellant.

James D. Caldwell, Attorney General, Ryan M. Seidemann, Lindsey K. Hunter, Assistant Attorneys General, for Appellees.

Before CARAWAY, DREW and MOORE, JJ.

MOORE, J.

Twin Cities Memorial Gardens Inc., which operates a private cemetery in the Cheniere area of Hwy. 80 in West Monroe, appeals judgments that rejected its exceptions of no right and no cause of action, placed the corporation in receivership, and ordered the corporation and its president, Dannie Jackson, to hand over all corporate records to a court-appointed administrator. For the reasons expressed, we reverse and remand.

Procedural History

This matter was tried entirely on the pleadings. The State of Louisiana and the Louisiana Cemetery Board (collectively, "LCB"), acting through the attorney general, filed a petition for injunctive relief and receivership on January 28, 2008, against Twin Cities and Jackson. It alleged that LCB was charged with enforcement of provisions for the maintenance of cemetery property and that the attorney general was the primary trustee for bringing litigation on LCB's behalf pursuant to La. R.S. 8:69. The attorney general also claimed the status of parens patriae for all citizens who will be affected by Twin Cities' failure to comply with LCB regulations.

The petition alleged various facts. After receiving consumer complaints that Twin Cities failed to deliver paid-for grave markers and to keep up the property, LCB held an administrative hearing in 2005, finding several violations and threatening to revoke its cemetery license. Since then, LCB had received 24 more consumer complaints and solicited 699 signatures of people claiming vested interests, demanding the revocation of Twin Cities' license and expulsion of its management. In 2006, Twin Cities failed to reinstate its cemetery license, and operated without a license in 2006 and 2007. The petition listed four specific deficiencies:

(1) Five out of six "randomly probed" burials were not deep enough (posing a risk of uneven settlement and a hazard to visitors);
(2) 42 items of merchandise were not delivered timely;
(3) Perpetual care trust fund forms were never filed for 2005 and 2006; and
(4) Merchandise trust fund forms were never filed for the same two years.

Citing the interest of interment right owners of Twin Cities and "all persons who have relatives and/or friends" buried there, LCB demanded appointment of a receiver to run Twin Cities. Alleging that any injury, loss, or damage suffered by the public is irreparable, both physical and psychological, it demanded an injunction for Twin Cities' failure to adhere to Title 8, specifically an order enjoining Twin Cities or any of its officers from destroying its business records. Finally, it demanded the appointment of a receiver with full power to hold, administer, manage and discharge the affairs of Twin Cities for so long a period of time as the court may deem necessary. Notably, the petition included no request for a hearing on the pleadings only.

Attached to the petition was a certified copy of the administrative hearing before LCB and a copy of the petition signed by 699 people. Also attached were 10 affidavits, including that of Lucille McCann, director *19 of LCB, who verified the factual allegations, and of eight Twin Cities customers who paid for markers that were never delivered, or for grave plots that could not be located, or who decried the generally seedy state of the graveyard. The final affidavit was that of Ryan Seidemann, the assistant attorney general who drafted the petition. He requested issuance of a TRO without notice to Twin Cities or Jackson, to prevent the destruction of Twin Cities' documents.

The district court signed a TRO directing Jackson to relinquish control of Twin Cities, placing the corporation in receivership, appointing Timothy Mulhearn Sr. (the Chief Executive Officers of Mulhearn Funeral Homes) as receiver, and freezing Twin Cities' assets.

Mr. Seidemann also swore out a search warrant for two locations, presumably Twin Cities' office and Jackson's home. The district court signed the search warrant on January 29; according to statements in brief, it was executed.

Twin Cities filed exceptions of no right and no cause of action. It first urged that the only persons who may seek receivership of a corporation are "any shareholder or creditor" under La. R.S. 12:151 A(1)-(6); LCB does not qualify. It conceded that under La. R.S. 8:75, LCB has the authority to seek injunctive relief, but this requires a very specific showing of public interest, Restlawn Park Cemetery Inc. v. Louisiana Cemetery Bd., 611 So.2d 835 (La.App. 4 Cir.1992), writ denied, 618 So.2d 404 (La.1993). Next, it urged that LCB's petition, with the search warrant, amounted to an illegal taking of private property in violation of La. Const. Art. 1, § 4. Admittedly, the "governing authority of any municipal corporation or parish" may expropriate a private cemetery on a finding that it has been abandoned or is without management. La. R.S. 8:112. However, there is no authority for LCB to expropriate a private cemetery, and the plaintiffs did not make the requisite showing under § 112. Twin Cities concluded that the total lack of statutory authority also negated the cause of action.

LCB filed a memo opposing the exceptions. It provided a long disquisition on parens patriae, culminating with the "modern doctrine" stated in Alfred L. Snapp & Son Inc. v. Puerto Rico, 458 U.S. 592, 102 S.Ct. 3260, 73 L.Ed.2d 995 (1982). It conceded that the concept was mostly a creature of federal jurisprudence, but La. Const. Art. 4, § 8 gives the attorney general authority to "institute, prosecute, or intervene in any civil action or proceeding," which one court has recognized as congruent with Snapp. State ex rel. Ieyoub v. Bordens Inc., 95-2655 (La.App. 4 Cir. 11/27/96), 684 So.2d 1024, writ denied, 97-0339 (La.3/14/97), 690 So.2d 42. LCB contended, however, that the attorney general's parens patriae status overrides the narrow categories of R.S. 12:151 A, and that LCB qualifies in the broad sense of a creditor as "one to whom any obligation is owed, whether contractual or otherwise." Black's Law Dict., 8 ed. (2004). By virtue of its statutory authority to "enjoin any person from operating or conducting a cemetery business" and obtain "such additional orders as may be necessary to protect the health, welfare, or safety of the public," La. R.S. 8:75 A, D, LCB may seek to place a cemetery corporation such as Twin Cities in receivership. Finally, the constitution does not prohibit reasonable exercise of police power, as LCB sought only to remove a threat to public safety.

Action of the District Court

The hearing on the preliminary injunction was February 5. Twin Cities' counsel asked the court to rule on his exceptions and announced that his client, Dannie Jackson, was not present. The court stated *20 that because the Corporation Code does not define creditor, the court was prepared to accept the

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Cite This Page — Counsel Stack

Bluebook (online)
997 So. 2d 16, 2008 WL 4226024, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-v-twin-cities-memorial-gardens-inc-lactapp-2008.