BUILDER'S LUMBER AND SUPPLY CO. v. JORDAN LANDS INC

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Docket Number

No. 2809.

Attorney(S)

Adam G. Nunez, Lake Charles, for defendant-appellant. Fusilier, Pucheu Soileau, by J. W. Pecheu, Ville Platte, for plaintiff-appellee.

Judges

SAVOY, Judge.

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Smart Summary

Factual and Procedural Background

Plaintiff, Builder's Lumber and Supply Company, filed suit against defendant, Jordan Lands, Inc., seeking to compel defendant to sign a redemption deed for certain real property purchased by defendant at a tax sale. On June 25, 1966, defendant purchased land in Evangeline Parish, Louisiana, assessed to Jesse Joseph Deville, due to non-payment of 1965 taxes. On July 31, 1967, plaintiff purchased the same property from Deville. Plaintiff prepared a redemption deed and tendered payment of $18.37 to defendant, the amount it calculated necessary to redeem the property. Defendant refused to sign the deed, alleging the deed's description was incorrect and that plaintiff’s payment did not include $35.00 in legal fees for counsel's services related to examining the deed and preparing a corporate resolution authorizing redemption. After securing an amended judgment, plaintiff renewed the demand, which defendant again refused. Following trial, the district court ruled in favor of plaintiff, ordering defendant to execute the redemption deed and denying defendant’s claim for attorney’s fees. Defendant appealed.

Legal Issues Presented

Whether the term "costs" under LSA-R.S. 47:2221 and the Louisiana Constitution includes attorney's fees incurred by the defendant in connection with redeeming property sold at tax sale.
Whether defendant is entitled to recover $35.00 in legal fees as part of the redemption payment.

Arguments of the Parties

Defendant-Appellant's Arguments

The word "costs" in the statutory and constitutional provisions should be construed to include all costs necessarily incurred to redeem the property, including attorney's fees.
The $35.00 legal fees for counsel's examination of the deed and preparation of a corporate resolution are necessary costs and should be included in the redemption payment.

Plaintiff-Appellee's Arguments

The term "costs" refers only to costs associated with the tax sale itself, such as notices and advertisements, and does not encompass attorney's fees.
Attorney's fees are only recoverable when specifically authorized by statute, contract, or established jurisprudence, none of which apply here.

Table of Precedents Cited

No precedents were cited in the provided opinion.

Court's Reasoning and Analysis

The court examined LSA-R.S. 47:2221 and the pertinent constitutional provision, which allow redemption of property sold at tax sale by paying the price given, including "costs" and a penalty with interest. The court interpreted "costs" as the expenses related to the tax sale itself, such as notices and advertisements, rather than including attorney's fees. The court noted that attorney's fees are generally recoverable only if authorized by statute, contract, or jurisprudence, none of which were present here. The defendant's counsel had itemized costs as $16.07 for costs, $0.97 for interest, and $35.00 for legal fees. The court found that the $35.00 attorney's fees were not recoverable under the statute or constitutional provision. Accordingly, the trial court’s disallowance of the attorney's fees was affirmed.

Regarding the application for rehearing, Judge Miller, dissenting, argued that the $35.00 costs for correcting the deed description and preparing the corporate resolution should be considered "costs" incurred for the benefit of the landowner and thus recoverable. He suggested that if the plaintiff found the $35.00 excessive, it should have redeemed the property through the tax collector as provided by statute. However, the rehearing was denied.

Holding and Implications

The court's final decision is AFFIRMED, upholding the trial court’s judgment directing defendant to execute the redemption deed without including attorney's fees in the redemption payment.

The direct effect of this decision is that attorney's fees incurred by a defendant in redeeming property at a tax sale are not recoverable as "costs" under LSA-R.S. 47:2221 and the relevant constitutional provision. No new legal precedent was established beyond the affirmation of this interpretation. The defendant must comply with the redemption deed requirements without additional compensation for legal fees.

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BUILDER'S LUMBER AND SUPPLY COMPANY, Plaintiff-Appellee, v. JORDAN LANDS, INC., Defendant-Appellant.

SAVOY, Judge.

Plaintiff instituted the instant suit against defendant praying that defendant be required to sign a redemption deed to certain real property purchased by defendant at a tax sale.

The facts in this case are that on June 25, 1966, defendant purchased at tax sale certain land situated in Evangeline Parish, Louisiana, assessed in the name of Jesse Joseph Deville for non-payment of 1965 taxes due on said property. On July 31, 1967, plaintiff purchased the property acquired by defendant at the tax sale from Jesse Joseph Deville, the same person whose property had been purchased by defendant at the June 25, 1966 tax sale.

After the July 31, 1967 purchase plaintiff had its counsel prepare a redemption deed and also issued a check to defendant in the sum of $18.37, the amount it determined was necessary to redeem the property. The defendant refused to redeem the property for the reason that the description in the redemption deed prepared by counsel for plaintiff was incorrect; and, secondly, that there had not been included in the check to defendant the sum of $35.00 which represented the legal fees charged by its counsel for examining the deed and preparing a resolution authorizing defendant, a corporation, to affect the redemption.

Upon receipt of a letter from counsel for defendant counsel for plaintiff then secured an amended judgment and made a second demand on defendant to sign the deed, which it refused to do for the reason that the sum of $35.00 had not been included to pay the fees incurred by it.

After a trial on the merits the district judge rendered judgment in favor of plaintiff and against the defendant, directing it to furnish plaintiff with a redemption deed, and did not allow the $35.00 requested by defendant in its answer. Defendant appealed.

LSA-R.S. 47:2221 provides that property sold at tax sale shall be redeemable in accordance with Section 11 of Article 10 of the Louisiana Constitution. This constitutional article provides in pertinent part that property shall be redeemable "by paying the price given, including costs and five per cent penalty thereon, with interest at the rate of one per cent per month until redeemed."

Defendant in the instant case contends the word "costs" includes any costs which he necessarily incurs in connection with the redemption, including attorney's fees. We are of the opinion that this is not the proper construction to be placed on the constitutional provision and statute mentioned hereinabove. The "costs" referred to therein are the costs of the tax sale for notices and advertisements. When counsel for defendant wrote counsel for plaintiff, he itemized the amount demanded as: costs — $16.07; interest — $.97; and legal fees — $35.00. Attorney's fees are allowed only in cases where specific statute grants such fees, by contract or where established by the jurisprudence of this state. There are no such provisions in the above statute in the instant case.

Accordingly, we are of the opinion that the judgment of the trial court disallowing attorney's fees is correct, and the judgment of the trial court is hereby affirmed at appellant's costs.

Affirmed.

On Application for Rehearing

MILLER, J., votes for a rehearing.

Landowner sued to require defendant to sign redemption deed to incorrectly described property. Defendant appellant is entitled to "costs" for correcting this error and for furnishing a resolution authorizing the proper officer to sign the redemption. Charges for both these requirements are "costs" incurred for the benefit of the landowner, and are just as beneficial to the landowner and burdensome to defendant as would be the value of improvements made on the real estate which are specifically allowed by LSA-R.S. 47:2222.

Where landowner found the $35 costs excessive, landowner should have redeemed property through the tax collector as suggested by defendant and authorized by LSA-R.S. 47:2222.

Rehearing denied.