The two sides in a dispute over a building which a medical practice occupied until it was purchased at a tax sale last year are working on a compromise. Northeast Louisiana Leasing LLC had filed suit in 4th District Court against Marcia Cook after Cook was given a tax title to property at 427 South Vine St. the partnership owned.
Until July, the building housed offices of the Orthopaedic Clinic of Northeast Louisiana. The leasing company -- comprised of partners in the Orthopaedic Clinic -- owned 51 percent of the building. Dr.
Timothy Spires, an Orthopaedic Clinic partner who practiced at the building, owned the remaining 49 percent. In 2004, Marcia Cook purchased the property at a tax sale when Northeast Louisiana Leasing, LLC -- listed as owners of the property at that time -- failed to pay their 2003 parish tax bill. After the tax notice mailed to the leasing company was returned -- the same type notice sent to all property owners in November of each year -- a second, registered letter was sent to the same address.
It was returned unclaimed. On four occasions between March 16, 2004 and April 30 of that same year, notices were published in the Bastrop Daily Enterprise the taxes were unpaid. After the prescribed period of time for the leasing company to pay the taxes expired, Cook purchased the property at a tax sale held by the sheriff's office.
If a property owner fails to pay property taxes, Louisiana law allows sheriffs -- who serve as ex officio tax collectors -- to offer the property at auction if the bidder agrees to pay at least the amount of taxes owed on the property. After a three year period, if the original property owners fails to redeem the property -- pay the purchaser taxes, penalties and interest -- the purchaser gets a tax title to the property. During that three year period, notices that taxes are due are not sent to the original owner but to the party that purchased the property at the tax auction.
In a petition filed in August, the attorney representing the leasing company claimed various parts of the law which cover tax sales had not been met by either Cook or the Sheriff's Office. In 4th District Court on Monday, Judge Marcus Clark brought attorneys for both sides -- David Verlander representing the leasing company and John Bentley representing Cook -- into his chambers and urged them to reach a compromise. An attorney representing Morehouse Parish Sheriff Danny McGrew was also present but not involved in the chambers' discussion.
In open court, Clark said the dispute has "novel issues," but said the cost of litigating the case would far outweigh the value of the property. "I have a similar case before the 2nd Circuit Court of Appeals now that could go all the way to the U.S.
Supreme Court," Clark said. "Anyone who wants to carry the case that far will have incredible costs, and not just in legal fees." Verlander told Clark the two sides were working on a compromise but would be unable to reach an agreement quickly.
Clark then continued the hearing without date.
News RSS