Redemption Rejected! Louisiana Courts Require More For Extension of Redemption Period!
In various Parishes across the State of Louisiana, we have been seeing instances where the Sheriff or Tax Collector is allowing redemption past the three (3) year or eighteen (18) month redemption period. We had the opportunity to recently litigate a few of these matters and were able to strengthen tax sale purchasers’ rights to prevent extension of the redemption period. One such case now stands as the seminal case on the validity of extension of the redemption period by Louisiana Courts.
In Sotomayor, we represented the tax sale purchaser who sought to confirm tax sale title and sole ownership of certain valuable income producing immovable property. Upon entry of the final judgment, we faced a barrage of arguments seeking to attack the final judgment and tax sale including arguments of numerous contacts to the Tax Collector to redeem and that the tax sale was redeemed evidenced by a recorded redemption certificate issued by the Tax Collector filed into the record. Johnson v. Sotomayor, 2021-0460 (La. App. 4 Cir. 2/2/22), 366 So. 3d 173, 182, writ denied, 2022-00495 (La. 6/8/22), 338 So. 3d 1199. In rejecting the defendant’s arguments of timely redemption payment after the redemption period expired and affirming sole ownership in favor of our client, the Court affirmed that there was no error on the part of the City that hindered the record owner’s ability to pay the redemption amount timely but rather, the record owners own acts led to the failure to redeem in a timely manner. Id. at 180. The Fourth Circuit also recognized a key defense we employed for our client tax sale purchaser by recordation of a notice of lis pendens to block the transfer or any effect of the redemption certificate recordation. Id. at 182. The Fourth Circuit concluded its ruling by reviving the legal premise that a legally valid tax sale “is beyond attack and becomes indefensible after the period of redemption … has expired.” Id.
Wesley M. Plaisance is a Partner in the New Orleans office of Breazeale, Sachse & Wilson, L.L.P. (www.bswllp.com) where he heads the Louisiana Tax Sale and Quiet Title Litigation group and practices other commercial litigation with a focus on real estate related litigation. Wesley M. Plaisance regularly handles tax sale litigation matters across Louisiana including without limitation in the City of New Orleans (Orleans Parish), East Baton Rouge Parish, St. Tammany Parish (including Covington, Mandeville and Slidell), Jefferson Parish, Ouachita Parish, Lafayette Parish, Livingston Parish, Plaquemines Parish and Lafourche Parish. Mr. Plaisance represents tax sale purchasers in suits to confirm tax sale title(s) and ownership with and/or without cancellation of mortgages and other encumbrances and in partition proceedings commenced after a tax sale purchaser confirms only a fractional ownership interest.
Mr. Plaisance has also represented and represents tax debtors, landowners, mortgage holders including banks and other interested parties in actions to annul and/or nullify tax sales. Mr. Plaisance additionally handles complex commercial litigation matters arising out of large investment funds created to purchase tax sale certificates and/or tax deeds in Louisiana, Georgia, Indiana and Florida.