Summary
The Louisiana Fourth Circuit Court of Appeal affirmed the denial of All Star East Properties, L.L.C.'s petition for a writ of mandamus seeking to compel the City of New Orleans to complete an adjudicated-property tax sale. The court held that completing the sale was not a clearly mandated ministerial duty and that the applicable auction terms permitted cancellation. The court further concluded that ordinary breach-of-contract proceedings were available, making mandamus inappropriate.
Topics
Practice areas
Questions Presented
- Whether a writ of mandamus could compel the City's Finance Director to reinstate a cancelled sale, recognize All Star East as the highest bidder, and transfer the property.
- Whether the auction terms legally required the City to complete the sale after the bidding process began.
- Whether mandamus was an appropriate remedy when All Star East could pursue an ordinary breach-of-contract action.
Holdings
- Mandamus was unavailable because All Star East did not establish that the Finance Director had a clearly defined ministerial duty, imposed by law, to complete the sale.
- The Terms of Use did not legally bind the City to complete the sale because they expressly reserved the City's right to cancel a sale and refund the purchase price and permitted removal of property from the tax-sale list.
- Mandamus was not an appropriate remedy because All Star East could bring an ordinary breach-of-contract action.
Key quotations
“Mandamus is an extraordinary remedy which should be applied only where ordinary means fail to afford adequate relief.” (at 2)
“Mandamus lies only when a public official refuses to perform a duty that the law clearly states he must perform. It never issues in doubtful cases.” (at 3)
“The remedy of mandamus is not available to command performance of an act that contains any element of discretion, however slight.” (at 3)
Factual background
All Star East submitted the winning bid for adjudicated property at an online auction conducted for the City of New Orleans by CivicSource. Although the City initially provided wiring instructions and All Star East wired $457,015.88, the City had previously instructed CivicSource to cancel the sale and later confirmed that it would not proceed. The auction terms reserved the City's right to cancel a sale under specified circumstances and to remove property from the tax-sale list.
Procedural history
All Star East was the winning bidder at an online auction for adjudicated property, but the City cancelled the sale before completion. All Star East petitioned for a writ of mandamus in the trial court. After a hearing, the trial court denied the petition by oral judgment and signed order, and All Star East took a devolutive appeal. The Louisiana Court of Appeal, Fourth Circuit, affirmed.