In 2018, a $6,123 tax debt put a New Orleans property in play; a $6,883 tax-sale bid led to a legal battle over ownership

A New Orleans property once became a subject of a legal dispute. This happened after its owner failed to pay more than $6,000 in property taxes. Equity Trust Co. bought a tax-sale certificate for $6,883.12 in 2018, which went to court to prove full ownership of the property.

The Louisiana Court of Appeal, Fourth Circuit, upheld a lower court's decision on July 2024. It declared Equity Trust the 100% owner of the property at 739-741 Montegut Street.

What exactly happened in the case?

James M. Thorrick, on September 20, 2004, bought the property at 739-741 Montegut Street. According to court records, he failed to pay property taxes for 2016 and 2017, and this left a tax debt of $6,123.78.

On April 10, 2018, the property was put up for a tax sale. Equity Trust paid $6,883.12 for a tax-sale certificate, it was issued on May 9, 2018, and recorded in the Orleans Parish land records on June 5.

Notably, the tax sale didn't immediately make Equity Trust the entire owner of the property.

Equity Trust filed a lawsuit against him on August 26, 2022. It asked the court to recognise it as the property's sole owner and clear the title. Equity Trust wanted to prevent him and his heirs from claiming any ownership interest in the property.

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What did Thorrick do?

He challenged Equity Trust's claim and argued that it had no legal right to bring the case.

The court's decision

On July 10, 2024, the Louisiana Court of Appeal upheld the lower court's ruling, and found that he had not raised his constitutional argument about compensation before the lower court and therefore could not introduce it for the first time o appeal.

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Notably, the court declined to consider his constitutional argument. It affirmed the ruling granting Equity Trust full ownership.