Strategic Capital Holdings, LLC v. Gilbert P. Bennett, III and Hithe-Jah Properties, LLC

STRATEGIC CAPITAL * NO. 2021-CA-0672
HOLDINGS, LLC
*
VERSUS COURT OF APPEAL
*
GILBERT P. BENNETT, III FOURTH CIRCUIT
AND HITHE-JAH *
PROPERTIES, LLC STATE OF LOUISIANA
*******

CONSOLIDATED WITH: CONSOLIDATED WITH:

HITHE-JAH PROPERTIES, LLC NO. 2021-CA-0673

VERSUS

STRATEGIC CAPITAL
HOLDINGS, LLC, GILBERT P.
BENNETT, III AND THE CITY OF
NEW ORLEANS

APPEAL FROM
CIVIL DISTRICT COURT, ORLEANS PARISH
NO. 2014-06771, DIVISION “N-8”
Honorable Ethel Simms Julien, Judge
******
Judge Sandra Cabrina Jenkins
******
(Court composed of Chief Judge Terri F. Love, Judge Sandra Cabrina Jenkins,
Judge Tiffany Gautier Chase)

Jonah A. Freedman
JONAH FREEDMAN LAW, LLC
700 Camp Street, Suite 316
New Orleans, LA 70130
COUNSEL FOR PLAINTIFF/APPELLEE
Scott Joseph Sonnier
ATTORNEY AT LAW
601 Poydras Street
Suite 2355
New Orleans, LA 70130

COUNSEL FOR DEFENDANT/APPELLANT

REHEARING GRANTED FOR CLARIFICATION; ORIGINIAL
OPINON AFFIRMED
SEPTEMBER 20, 2022

SCJ
TFL
TGC

We grant Hithe-Jah Properties, LLC’s (“Hithe-Jah”) application for

rehearing for clarification of its argument that it and Gilbert P. Bennett were co-

owners of the property with an undivided ninety-nine percent and one percent

ownership, respectively.

Following this Court’s July 29, 2022 decision, Hithe-Jah filed an application

for rehearing, requesting that the ruling of the trial court that granted summary

judgment and confirmed and quieted the tax title be reversed and the matter

remanded for further proceedings. Hithe-Jah based its application on the following:

(1) Mr. Bennett purchased an undivided one percent interest in the property; (2) a

tax deed was issued by the City of New Orleans whereby ownership and title to the

property was passed to Mr. Bennett, subject to Hithe-Jah’s right to redeem; and (3)

a notice of lis pendens was recorded at the time of the sale of the property by Mr.

Bennett to Strategic Capital Holdings, LLC and subsequent transfers. Hithe-Jah

argues that at all material times it and Mr. Bennett were co-owners of the property

and were both entitled to notice of the tax sale.

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On rehearing, we find that Hithe-Jah and Mr. Bennett were not co-owners

of the property. After Mr. Bennett acquired one percent interest of the property in

the 2009 tax sale, the tax sale certificate was recorded on February 2, 2010.

Subsequent to Mr. Bennett’s failure to pay taxes, the City conducted another tax

sale, and Lakeview Holdings, LLC (“Lakeview”) acquired 100 percent interest in

the tax title. The tax sale certificate was recorded in the conveyance records on

October 27, 2010.

It is well recognized that the “term ‘tax sale’ actually denotes that it is the

tax lien that is purchased in the form of tax sale title, albeit with future rights of

ownership after due notice to all ‘tax sale parties’ and the expiration of the

redemptive period, as well as the filing of a suit to quiet title.” Stow-Serge v. Side

by Side Redevelopment, Inc., 2020-0015, p. 4 (La. App. 4 Cir. 6/10/20), 302 So.3d

71, 76.

At the time of the tax sale to Lakeview, Mr. Bennett was not an actual owner

of the property. Mr. Bennett was the holder of tax lien in the form of tax sale title.

The City sent pre-sale tax notices to Hithe-Jah on April 9, 2009, October 1, 2009,

and November 2, 2009. Additionally, Hithe-Jah received post-tax sale notice on

August 5, 2011. Hithe-Jah was duly notified of the tax sales and failed to redeem

prior to the termination of the redemptive periods.

For these reasons, we grant rehearing for clarification and affirm our original

opinion.
REHEARING GRANTED FOR CLARIFICATION; ORIGINAL
OPINION AFFIRMED

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