MADELEINE M. LANDRIEU, Judge.
The plaintiff, Moretco, Inc., appeals the trial court's denial of it petition for preliminary injunction. For the reasons that follow, we affirm.
In June of 2008, Moretco, a Nevada corporation, entered into an agreement to purchase a thirty-five acre tract of land located in Plaquemines Parish with the intention of developing the property into a shopping center anchored by a grocery or department store. Subsequently, Moretco entered into negotiations with Walmart
On April 22, 2010, in anticipation of developing a Master Plan for Plaquemines Parish, the Parish Council adopted Ordinance 10-109 [hereinafter referred to as "the first moratorium ordinance"], which provided a moratorium until the end of the calendar year on the issuance by any parish department or agency of permits for any building activity or work that exceeded thirty thousand dollars in cost without special permission of the Council. The ordinance also provided that the Council could consider releasing from the moratorium any qualified permit applicant who presented sufficient evidence that the following conditions had been met to the satisfaction of the Council:
Prior to the Council's adoption of the first moratorium ordinance, Moretco participated in several meetings with various parish officials concerning Moretco's planned shopping center development, which was to be located the district represented by Councilman Keith Hinkley. During these meetings, the officials voiced certain concerns about the plans but seemed to have a favorable attitude toward the project. Moretco agreed to make changes to address these concerns. However, Moretco did not apply for a building permit either before or during the period of time the first moratorium was in effect. That moratorium expired on December 31, 2010.
On January 10, 2011, Moretco filed an application for a building and construction permit for a "Commercial development to include Wal-Mart, Retail, Business and Restaurant uses."
In April of 2011, Moretco filed this action against Plaquemines Parish, the Plaquemines Parish Council and its members, and Plaquemines Parish President William "Billy" Nungesser [hereinafter collectively referred to as "the Council"] seeking injunctive and declaratory relief to prohibit the application of the second moratorium ordinance and the zoning amendment ordinance to Moretco's planned shopping center development. Moretco's request for a preliminary injunction was tried on January 4-6, 2012. On February 22, 2012, the trial court rendered judgment with written reasons denying the preliminary injunction. Moretco appeals that judgment.
Moretco contends that the trial court erred by declining to grant a preliminary injunction for the following reasons:
A preliminary injunction is an interlocutory procedural device designed to preserve the status quo as it exists between the parties pending trial on the merits. Sessions, Fishman & Nathan, L.L.P. v. Salas, 2004-1790 (La.App. 4 Cir. 5/25/05), 905 So.2d 373, 377. To prevail in the trial court on a petition for preliminary injunction, the petitioner is required to establish by prima facie evidence that: (1) it will suffer irreparable injury, loss, or damage if the injunction is not issued; (2) it is entitled to the relief sought; and (3) it will likely prevail on the merits of the case. Limousine Livery, Ltd. v. A Airport Limousine Serv., L.L.C., 2007-1379 (La.App. 4 Cir. 3/12/08), 980 So.2d 780, 783. A showing of irreparable injury is not required in cases where the conduct sought to be restrained is unlawful, such as when the conduct constitutes a direct violation of a prohibitory law. Asaro v. City of New Orleans, 2010-0572, p. 3 (La.App. 4 Cir. 12/22/10), 54 So.3d 1214, 1217, writ denied, 2011-0353 (La.4/1/11), 60 So.3d 1257. When deciding whether a preliminary injunction should issue, trial judges have great latitude of discretion in choosing whether to grant or deny the relief requested. E. New Orleans Neighborhood Advisory Comm'n v. Levy Gardens Partners 2008, LLC, 2009-0326, p. 5 (La.App. 4 Cir. 7/15/09), 20 So.3d 1131, 1135.
An appeal may be taken as a matter of right from an order or judgment relating to a preliminary injunction. La. C.C.P. art. 3612; Ellis Const., Inc. v. Vieux Carre Resort Properties, L.L.C., 2005-1109 (La.App. 4 Cir. 6/7/06), 934 So.2d 206, 209. The appellate court should not overturn the denial or dissolution of a preliminary injunction absent a clear abuse of the trial court's great discretion. FQCPRQ v. Brandon Investments, L.L.C., 2005-0793 (La.App. 4 Cir. 3/29/06), 930 So.2d 107, 109.
Moretco argues that the trial court abused its discretion by declining to grant a preliminary injunction prohibiting the Council from applying the second moratorium ordinance and the zoning amendment ordinance to Moretco's permit application. Moretco admits that it has not sought the Council's approval for its development as would be required under the provisions of each of those ordinances before any permits could be issued. Because neither ordinance has yet been applied to Moretco, in order to show its entitlement to a preliminary injunction, Moretco had to demonstrate in the trial court that each ordinance was invalid on its face. Moretco thus contended in the trial court that the ordinances are unconstitutionally vague; that applying these ordinances retroactively to Moretco's previously-filed permit application would unconstitutionally deprive Moretco of vested rights; and that the passage of these ordinances was an abuse of the Council's power unfairly targeting the Moretco project. Moretco did not argue that the trial court's failure to grant the preliminary injunction would result in irreparable harm, but that an exception to the irreparable harm requirement applies here because the conduct sought to be restrained is unlawful.
In its Reasons for Judgment, the trial court found that Moretco failed to show that it was entitled to the injunction or that it would likely prevail on the merits. On appeal, Moretco seeks reversal of this judgment by reiterating the same arguments it made in the trial court as to the invalidity of the ordinances.
Citing McCauley v. Albert E. Briede & Son, 231 La. 36, 90 So.2d 78 (1956), Moretco argues that the ordinances are vague because they fail to establish any rule or standard to guide the officials charged with their administration and therefore leave their interpretation, administration and enforcement to the "unbridled discretion" of the governing authority. McCauley involved a "variance" or "special use" provision of a city zoning ordinance that gave the city council the right, by special permit, to authorize the location of a mortuary in any district where one would otherwise be prohibited. The ordinances presented here are clearly different from the provision invalidated in McCauley. The second moratorium ordinance passed by the Parish Council in this case requires that certain information, such as "traffic impact studies" and "Fire, EMS, and police response time impacts" be submitted and considered by the Council in making its decision. The zoning amendment ordinance requires that a retail establishment larger than 25,000 square feet be submitted as a Planned Unit Development and subjected to the site plan review process of the Plaquemines Parish Planning Development Board before being considered for approval by the Council. Unlike the provision in McCauley, which provided no standard or guide, these ordinances include requirements and guidelines to aid the Council in its decision-making. However, Moretco argues that these requirements are not well-defined or sufficiently specific.
The Louisiana Supreme Court has stated:
Med Exp. Ambulance Serv., Inc. v. Evangeline Parish Police Jury, 96-0543 (La.11/25/96), 684 So.2d 359, 367 (quoting Village of Hoffman Estates, 455 U.S. at 498-99, 102 S.Ct. at 1193-94, 71 L.Ed.2d 362) (Emphasis supplied). Therefore, to successfully challenge an ordinance as vague, "the opponent of the ordinance must prove that the ordinance is vague `not in the sense that it requires a person to conform ... to an imprecise but comprehensible normative standard, but rather in the sense that no standard conduct is specified at all.'" Id., p. 11, 684 So.2d at 367 (quoting Village of Hoffman Estates, supra, 455 U.S. at 497, n. 7, 102 S.Ct. at 1191, n. 7).
As the trial court noted in its Reasons for Judgment, Moretco had the opportunity to submit to the administrative process by presenting its project to the Council for a final decision, but Moretco chose not to do so. Thomas McAlister, the vice-president and corporate representative of Moretco, testified before the trial court that Moretco never asked the Council to clarify or interpret the requirements of the ordinances, and that he decided not to seek the Council's approval for the project because he believed to do so would have been futile. According to the trial court, because Moretco failed to exhaust its administrative remedies, Moretco "was not in a position" to challenge the ordinances as being vague. Essentially, the trial court found Moretco's action to be premature.
Regardless of whether Moretco's action is premature, however, we agree with the trial court that Moretco failed to meet its burden of showing that these ordinances are impermissibly vague. To do so Moretco would have to show that the challenged ordinances lack any standard to guide the Council so that any decisions made would be completely arbitrary. A plain reading of the ordinances themselves refutes Moretco's contention. The trial court did not abuse its discretion by declining to enjoin the application of the ordinances on account of vagueness.
Moretco next argues that applying the ordinances retroactively to its previously-filed permit application would violate Moretco's constitutional right to due process. It is undisputed that Moretco's permit application regarding this property was filed prior to the Council's passage of the second moratorium ordinance and the zoning amendment ordinance. It is also undisputed that Moretco's permit application had not been acted upon and was pending at the time these ordinances were adopted. At trial, Jeffrey Moore, the CEO of Moretco, testified that Moretco has spent approximately one million dollars to date developing its proposed shopping center and has obligated itself to buy the property in question. Moretco representatives also testified that they had participated in several meetings with various parish officials concerning the project and had
Louisiana courts have clearly resolved this issue by holding that applying for a permit does not afford the applicant any vested rights. In the landmark case of Palermo Land Co., Inc. v. Planning Comm'n of Calcasieu Parish, the Louisiana Supreme Court stated:
Id., 561 So.2d 482, 488 (La.1990) (quoting State ex rel. Manhein v. Harrison, 164 La. 564, 114 So. 159, 163 (1927)). As this court has recently reiterated:
E. New Orleans Neighborhood Advisory Comm'n v. Levy Gardens Partners 2008, LLC, supra, p. 8, 20 So.3d at 1136-37.
As it did in the trial court, Moretco cites Asaro v. City of New Orleans, 2010-0572 (La.App. 4 Cir. 12/22/10), 54 So.3d 1214, in support of its argument that the ordinances may not be applied retroactively. Like the trial court, we find Moretco's reliance upon this case to be misplaced.
In Asaro, this court made the following statement, upon which Moretco relies:
Id., p. 9, 54 So.3d at 1220, writ denied, 2011-0353 (La.4/1/11), 60 So.3d 1257. Taken out of context, this statement appears to support Moretco's argument. However, this statement does not represent the holding of the case. In Asaro, the permit application to which the court refers was not only filed, but also granted and the permit issued, before the enactment of the moratorium. The issues in Asaro were: (1) whether the building permit had expired before the moratorium was enacted; and (2) if not, whether revised building plans submitted by the contractor after the permit was issued but before the moratorium was enacted constituted a new permit application, which would be subject to the moratorium.
Id. (Emphasis supplied).
The present case differs materially from Asaro in that no permit has been issued to Moretco. Under these circumstances, applying the second moratorium ordinance and the zoning amendment ordinance to Moretco's pending permit application does not offend due process or deprive Moretco of any vested right. The trial court did not abuse its discretion by declining to enjoin the application of the ordinances on this basis.
Moretco's final argument is that it is entitled to a preliminary injunction because the passage of the ordinances were improper, arbitrary and capricious actions of the Council motivated by the racial bias of Councilman Hinkley, in whose district the property is located. The trial court found that Moretco failed to make a prima facie showing that the mere passage of the ordinances was unlawful because it was solely motivated by racial bias. In its Reasons for Judgment, the trial court also noted that insomuch as Moretco was claiming that the ordinances would be unconstitutional in their application, that claim was premature because Moretco had not yet submitted its permit application for approval by the Council as required by the ordinances. In view of the record, we find no abuse of discretion in the trial court's conclusion.
Zoning is a legislative function, and Louisiana law affords local governing bodies, such as the Plaquemines Parish Council, the authority to amend, supplement, change, modify or repeal existing zoning ordinances. See La. R.S. 33:106; Palermo, 561 So.2d at 491. There is a presumption of validity attached to all zoning ordinances, and the burden of proving such an ordinance to be invalid lies with the challenger. Id. at 490. The Louisiana Supreme Court has described this burden as "extraordinary." Id. Here, Moretco had the burden to establish that the challenged ordinances have no real or substantial relationship to the general welfare of the Plaquemines Parish community. Id. The Louisiana Supreme Court set forth the scope of judicial review of zoning decisions as follows:
Palermo, 561 So.2d at 491 (quoting State ex rel. Civello v. City of New Orleans, 154 La. 271, 282, 97 So. 440, 443-44 (1923)). The Court went on to state:
Id. at 492 (footnote omitted).
Reviewing the record before us according to the standard set forth above, we do not find that Moretco presented sufficient evidence at the hearing to show that it will prevail on the merits in proving that the challenged ordinances could not have been motivated by any legitimate concern for the welfare of Plaquemines Parish citizens.
Jeffrey Moore of Moretco testified that he and other Moretco representatives met with certain parish officials, including Councilman Hinkley, on March 17, 2011 in an attempt to settle the issues that became the basis of the instant lawsuit. According to Mr. Moore, at this meeting Councilman Hinkley expressed concern about allowing Moretco's planned development because it included a Walmart. When Mr. Moore asked Councilman Hinkley why he did not like Walmart, the Councilman responded "off the record" by saying he did not "want those people from Behrman Highway" coming into Plaquemines Parish. Mr. Moore testified that he understood the comment to mean that Councilman Hinkley did not want African American shoppers because in Mr. Moore's own experience, eighty to ninety percent of those who shopped at the current Walmart on Behrman Highway in Orleans Parish were African Americans.
Plaquemines Parish President Billy Nungesser testified that in his opinion, the moratorium "sent the wrong message" to developers, and unfairly targeted Moretco by "changing the rules in the middle of the... game." He also testified that he remembered Councilman Hinkley at the March 17th meeting having objected to Walmart because it might bring in people from outside the parish. In addition, Mr. Nungesser remembered that Councilman Hinkley had mentioned Behrman Highway. However, Mr. Nungesser also recalled Councilman Hinkley having expressed other concerns about Walmart, such as its size and the traffic associated with it.
The testimony of two other participants in the March 17, 2011 meeting directly contradicted that of Mr. Moore with regard to Councilman Hinkley's comments. Francis Jay Lobrano, a lawyer who had assisted the Council in drafting the ordinances, testified that Councilman Hinkley did not make any racist remarks regarding Walmart or people coming over from Orleans Parish to shop there. Mr. Lobrano testified that Councilman Hinkley was not opposed to Walmart itself but rather to the size of this particular proposed Walmart. Mr. Lobrano's testimony was corroborated by that of Stan Metcalf, the Director of Economic Development and Tourism for Plaquemines Parish, who also stated that Councilman Hinkley did not make a racist comment, and that the Councilman expressed opposition to Walmart because of its size.
In addition, the video recording of the January 27, 2011 Council meeting admitted into evidence further belies Moretco's argument regarding the reason for Council-man
Given the disputed testimony, the trial court found insufficient evidence to indicate that the second moratorium ordinance or the zoning amendment ordinance was motivated by racial bias or discrimination rather than by legitimate concerns for parish welfare. We must defer to the trial court's determinations of credibility in deciding whether that court abused its discretion. As the trial court noted, the evidence demonstrated the existence of other, legitimate considerations that could have prompted the passage of these ordinances, such as potential traffic and drainage problems caused by larger developments, the opposition of surrounding homeowners, and the potential harm to smaller businesses. The trial court also noted that there was presently no development in the parish comparable in size to that proposed by Moretco, another factor that supports the existence of a legitimate basis, that is — concerns related to size — for adopting the ordinances. The trial court therefore concluded that Moretco had failed to meet its burden of showing that it would prevail at trial in proving the ordinances to be unconstitutionally arbitrary and capricious or an abuse of the Council's power.
On appeal, Moretco argues strenuously that President Nungesser's testimony was sufficient to make out a prima facie case that the ordinances targeted Moretco's development and were passed solely to kill the Walmart project for discriminatory reasons. However, because President Nungesser has no authority over zoning decisions, which are solely the function of the Council, his opinions regarding the Council's motivation for passing the ordinances are irrelevant. President Nungesser testified as a fact witness, not an expert. His opinion that the Council had unfairly "changed the rules of the game" is not supported by the evidence, which demonstrates that the provisions of the first and second moratoriums are virtually identical. Moreover, his testimony, like that of any other witness, is subject to the trial court's assessment of credibility.
Moretco also argues that the trial court committed legal error by failing to apply an adverse inference to the Council's failure to call Councilman Hinkley as a witness. The Louisiana Supreme Court has stated:
Driscoll v. Stucker, 2004-589, pp. 18-19 (La.1/19/05), 893 So.2d 32, 47 (citation omitted).
Whether to apply such an inference is fully within the discretion of the trial court. Roth v. New Hotel Monteleone, LLC, 2007-0549, p. 6 (La.App. 4 Cir. 1/30/08), 978 So.2d 1008, 1012. Louisiana jurisprudence has held that the trial court's failure to apply the negative inference is not an abuse of discretion under any one of these circumstances: where the
Finally, Moretco supports its argument that the passage of the ordinances was an arbitrary and capricious abuse of power by asserting that this case is analogous to Berry v. Volunteers of America, Inc., 10-832 (La.App. 5 Cir. 4/26/11), 64 So.3d 347. We disagree. In Berry, property owners who had signed an agreement to sell a parcel of their property to the Volunteers of America for the construction of a housing complex for elderly, low-income individuals sued the Jefferson Parish Council after it changed the zoning on that parcel from commercial to residential, thus precluding the housing complex. The property owners claimed that the ordinances accomplishing the rezoning were arbitrary and capricious, were an unconstitutional taking of their property without due process of law, and were improperly motivated by the Jefferson Parish Council's desire to keep the elderly poor from living in Jefferson Parish. The Jefferson Parish Council filed a motion for summary judgment asserting that all actions taken by the Parish with regard to the plaintiffs' property were proper exercises of the Parish's police power. The trial court granted summary judgment and dismissed the plaintiffs' case. The Fifth Circuit reversed, holding that there were genuine issues of fact that precluded summary judgment. The facts cited by the appellate court included evidence submitted by the plaintiffs showing that: (1) the ordinances had been submitted and the rezoning accomplished without the usual advertisement or notice, and (2) the particular Councilman who had introduced the ordinances had on various occasions made public remarks indicating he was opposed to the housing complex because it would invite "poor New Orleanians" into Jefferson Parish and would attract occupants who were "ignorant or lazy." 10-832 at pp. 10-11, 64 So.3d at 352-53.
Moretco's reliance upon Berry is misplaced. Upon de novo review, the Berry court found there were material issues of fact that precluded summary judgment and entitled the plaintiffs to a trial of their claims. Unlike in Berry, here Moretco's request for a preliminary injunction was fully tried on the merits and the trial court's decision is reviewed by us under an abuse of discretion standard. Moreover, in Berry the plaintiffs' property had been rezoned to a classification that did not permit the housing development. By contrast, here the zoning classification of the land which Moretco seeks to develop has not changed, and the no action has yet been taken by the Council regarding the proposed development except to require that Moretco submit its plans to the Council for approval, which Moretco has not yet done. Because of these key factual distinctions, we do not find that Berry lends any support to Moretco's argument. We
Because Moretco failed to meet its burden of proving that it is entitled to a preliminary injunction or that it will likely prevail at trial in seeking a permanent injunction, we conclude that the trial court did not abuse its discretion.
BONIN, J., dissents with reasons.
I respectfully dissent.
The moratorium in this case is arbitrariness masquerading as regulation. Our Constitution protects the right of every person, even a Nevada corporation like Moretco, "to acquire, own, control, use, enjoy, protect, and dispose of private property." La. Const. Art. I, § 4(A). While this right like the others is not in every respect absolute, it is only "subject to reasonable statutory restrictions and the reasonable exercise of police power." Id. (emphasis added) And because this moratorium as written is not a reasonable exercise of the police power, it unconstitutionally deprives Moretco of the equal protection of the laws and its enforcement should be enjoined.
Here, after Moretco acquired its property, a first permits-moratorium, which applied to only some council-districts in Plaquemines Parish, was adopted. The stated purpose was to afford the Parish Council adequate time to adopt a so-called Master Plan. Without a Master Plan being adopted, the moratorium expired. Upon its expiration, Moretco applied for its permit. But for the moratorium, it is undisputed that Moretco would have been entitled to a permit for the construction of a large store on its property.
The Parish Council's response, at the instance of Councilmember Hinkley, was to adopt a second moratorium, which was declared to be retroactive; the intent and effect of the retroactivity provision was to prevent approval of Moretco's pending permit application. The second moratorium was for the purpose of "prohibiting the issuance of permits ... for the construction, renovation or remodeling of any commercial property" within the boundaries of the affection portions of the parish. But what the Parish Council bound, it could also loose. Thus, the ordinance allowed that "[o]nly with the permission of the Parish Council, through an Ordinance, as per law, said moratorium may be considered for release by this Council upon application of a qualified permit-applicant who presents for consideration sufficient evidence that the following conditions are met and satisfactory to this Council". Plaquemines Parish Council Ordinance No. 11-13 (emphasis added)
Without picking through each of the conditions, it suffices to note that they
When the condition of "such other reasonable issues before the Council" is considered within the context of the moratorium-ordinance, then it is clear that the moratorium cannot constitutionally be enforced because it is enforceable at the whim of the Council. A zoning ordinance "is invalid where it leaves its interpretation, administration or enforcement to the unbridled discretion, caprice or arbitrary action of the municipal legislative body or administrative bodies or officials." McCauley v. Albert E. Briede & Son, 231 La. 36, 48, 90 So.2d 78, 82 (1956). The fundamental requirement for any zoning ordinance is that it "must establish a standard to operate uniformly and govern its administration and enforcement in all cases." Id. (emphasis added).
This specific moratorium-ordinance is the antithesis of a valid zoning ordinance.
Ordinance 11-13 "denies equal protection of the law and is invalid" because it allows the Council to waive or uphold the moratorium without any standard to guide it. Cf. McCauley, 231 La. at 50, 90 So.2d at 83; see also La. Const. art. I, § 3 ("No person shall be denied the equal protection of the laws.") Because Ordinance 11-13 is unconstitutional on its face, Moretco is entitled to injunctive relief without the ordinary requisite showing of irreparable injury under La. C.C.P. art. 3601 A. See Jurisich v. Jenkins, 99-0076, p. 4 (La.10/19/99), 749 So.2d 597, 599 (when the conduct which is sought to be enjoined or restrained is unconstitutional, i.e. a violation of a constitutional right, petitioner is entitled to injunctive relief without showing irreparable harm). See also McCauley, id. ("Judge is hereby ordered to issue a preliminary injunction"); Gaudet, 237 La. at 1094, 112 So.2d at 724 ("Additionally,
Thus, I would reverse the trial court and order the issuance of the preliminary injunction to prevent the enforcement of the moratorium.
That really should be the end of the matter.
In Part A, ante, I addressed the "what" of the moratorium and, in this Part, I address the "why." At the outset I concede that there may be many good public policy (or even political) reasons for the adoption of a permits-moratorium in certain limited areas of Plaquemines Parish. But at the same time I want to emphasize that the trial judge did not decide whether Mr. Hinkley was racially biased. Thus, the majority's treatment rejecting Moretco's claim by concluding that Moretco "failed to make a prima facie case in support of this allegation," at p. 12, 112 So.3d at 293, ante, and its subsequent justification claiming to be deferring to the trial judge's determinations of credibility, at p. 16, 112 So.3d at 295, ante, are insupportable on this record. My reading of the trial judge's written reasons, however, differs from the majority; the trial judge only concluded as a matter of law that Moretco's claim of Mr. Hinkley's bias was "premature." The trial court side-stepped racial bias as a motivating factor. Because there are "other, legitimate considerations that could have prompted the passage of these ordinances," id. (emphasis added), the trial judge refused to address the matter of racial bias.
My purpose here is not now to determine Mr. Hinkley's true
Oddly, while the moratorium was in effect and without awaiting the adoption of the so-called Master Plan, the Council at
"Whenever the propriety of a zoning decision is debatable, it will be upheld." Palermo Land Co., Inc. v. Planning Comm. of Calcasieu Parish, 561 So.2d 482, 493 (La.1990). Here, I emphasize that the "what" of this moratorium ordinance is not, in my view, debatable. But — if we are past that issue and must go to the "why" — we cannot avoid deciding and resolving as a matter of fact whether the adoption of these ordinances were the reasonable exercise of the police power or a reprehensible exercise of political power. Thus, before the case is decided against Moretco, we should remand to the trial court for a determination of the basis of the official action. See Berry, supra.
I, therefore, dissent.