ORDER AND REASONS

TRACT NO. 104E

MARTIN L.C. FELDMAN, District Judge.

Before the Court is the United States's motion for determination of title and request for hearing to determine just compensation. On April 3, 2017, the Court granted the motion insofar as the Court ordered that the issues of ownership and just compensation for the taking of Tract 104E will be submitted for hearing on May 17, 2015, on the papers, because no defendant had appeared or answered. On May 5, 2017, the Court granted the United States's motion for leave to file proof of publication and on May 18, 2017, the United States filed its Notice of Service, certifying that it had served a copy by regular and certified mail of this Court's April 3, 2017 order on certain persons listed on the certificate of service. For the reasons that follow, the United States's motion is GRANTED, and the Court hereby resolves the ownership and just compensation issues — the only issues in this case — as follows.

Background

This is a land condemnation case in which the United States has condemned, for the public use of flood protection, 0.225 acres of land situated in Plaquemines Parish, Louisiana (Tract 104E).

On January 29, 2016, the United States filed this land condemnation action, condemning Tract 104E. On February 2, 2016, the United States deposited $21,000.00 into the Court's registry, at which time title vested in the United States.

The United States has identified the persons, estates, and entity that may have an ownership interest in Tract 104E. The property was purchased by two brothers, Celestin and Esteve Rodi, by Act of Sale in 1897. Both brothers died intestate. Title evidence identified only "the Heirs of Celestine Rode, the Heirs of Esteve Rodi, and Gulf Credit Corporation" as owners. The United States determined that Celestin Rodi had seven children and Esteve Rodi had 10 children, all of whom are now deceased. Of the 159 heirs of the Rodi brothers, at least 50 are deceased, and only nine of the deceased heirs have judgments of possessions placing their heirs into possession of their estate. The United States identified many of the brothers' heirs, but very few cooperated with attempts to purchase the tract.

After the Notice of Lis Pendens was recorded in Plaquemines Parish on August 1, 2016, the United States obtained a title update to ensure that all parties that may be owed compensation had been identified. The title update revealed that Gulf Credit Corporation had sold its interest to Gulf Loan Company, Inc. by Act of Cash Sale dated December 30, 2015 and recorded on March 2, 2016 in the Conveyance Records of Plaquemines Parish, Louisiana. On December 14, 2016, the Court granted the United States's motion to add Gulf Loan Company to this civil action.

The record reflects that all known interested parties have been served with notice of the condemnation, or that they otherwise have notice by virtue of publication. The title company has determined that more than 100 individuals and estates of individuals, as well as Gulf Loan Company, Inc., have ownership interest in the land. All of these individuals are identified in Schedule F of the Declaration of Taking as interested parties to the action. None of these individuals have filed an appearance or an answer.

Before filing this civil action, the United States obtained a trial appraisal of Tract 104E that estimated the perpetual flood protection levee easement acquired over the 0.225 acres of land to be $18,000. The United States deposited $21,000 in just compensation into the Court's registry.1

To assist the Court in determining the owners of compensable interests at the time of the taking, the United States has submitted to the Court a title insurance policy and title update, which indicates the owners of record at the time the Lis Pendens and Amended Lis Pendens were recorded in Plaquemines Parish. The United States now requests that the Court (1) review the evidence submitted to determine who is entitled to receive just compensation for the 0.225 acres of land involved in this action and (2) make a determination of just compensation pursuant to Federal Rule of Civil Procedure 71.1(h).

I.

A.

Ownership

Federal courts sitting in condemnation cases are authorized to determine who among competing claimants held title to land prior to its condemnation. Clark v. White, 185 F.2d 528, 530 (5th Cir. 1950); United States v. 22,680 Acres of Land, 438 F.2d 75, 77 (5th Cir. 1971); United States v. 1,629.6 Acres of Land, 503 F.2d 764, 766 (3d Cir. 1974); United States v. Atomic Fuel Coal Co., 383 F.2d 1, 3 (4th Cir. 1967). Pursuant to Rule 71.1 of the Federal Rules of Civil Procedure, the Court "tries all issues, including compensation, except when compensation must be determined by [a specially constituted tribunal or by a jury]." As the Supreme Court has observed:

United States v. Reynolds, 397 U.S. 14, 19-20 (1970). This Court has jurisdiction to determine whether a defendant-claimant has a compensable interest and is thus entitled to present evidence as to just compensation at a trial on that issue. Rule 71.1(h) reserves this preliminary determination to the Court.

In furtherance of its amicus curiae role regarding ownership issues, the United States has identified the persons who may have an ownership interest in Tract 104E; all informed by the title company's review of the chain of title. The United States submits that the following 115 persons or estates have ownership interests in Tract 104E:

None of these persons or estate representatives have filed either an appearance or an answer. This is so even though the United States published on three occasions in April 2017 in the Times-Picayune an announcement that the Court would determine ownership and just compensation issues relative to this tract of land on or after May 17, 2017; and, even though the United States certified that it served on the claimant-defendants by regular and certified mail this Court's April 3, 2017 Order giving notice that the Court will resolve the ownership and just compensation issues on or after May 17, 2017. There being no challenge or additional evidence to consider with respect to ownership, the Court is persuaded by the United States's submission, which is based foremost on the title policy on the tract. Considering the evidence presented, the Court finds that this list of 115 payees comprise the owners of compensable interests in Tract 104E at the time of its taking on January 29, 2016. Each are therefore entitled to just compensation for the public taking of Tract 104E.

B.

Just Compensation

Once the Court determines ownership of the tract as of January 29, 2016, the Court should hold a hearing to determine just compensation. See Fed. R. Civ. P. 71.1(e)(3). Because no jury has been demanded, the Court may make a determination of just compensation. Fed. R. Civ. P. 71.1(h). Rule 71.1(e)(3) suggests that during the trial on just compensation "a defendant — whether or not it has previously appeared or answered — may present evidence on the amount of compensation to be paid and may share in the award." Although the United States served the claimant-defendants with a copy of this Court's order, which gave notice that the Court would resolve the issues of ownership and just compensation by May 17, 2017, and although notice was published in the newspaper, no one has appeared to contest the United States' submission.

The United States submits that it would proffer at any hearing, consistent with what it has already submitted in the paper record, evidence on its estimate that just compensation in the amount of $21,000.00 is proper and appropriate. Just compensation is fair market value of the property on the date of its appropriation. Kirby Forest Industries, Inc. v. United States, 467 U.S. 1, 9-10 (1984).

The United States obtained an appraisal report from Robert W. Lowe, Jr., estimating $18,000.00, as of January 26, 2006, as just compensation for the real estate interest acquired in the .225 acres of land. However, based upon negotiations with landowners identified prior to completion of the trial appraisal, the United States deposited into the Court's registry $21,000 in just compensation. No party has contested the United States's just compensation valuation or submitted an alternative estimate of just compensation. The record supports a finding that $21,000 is the fair market value of Tract 104E. Accordingly, the Court determines that $21,000.00 constitutes just compensation for the taking of the 0.225 acres of condemned land identified as Tract 104E.

IT IS ORDERED: that the United States's motion for determination of tile and to determine just compensation is hereby GRANTED. IT IS FURTHER ORDERED: that prior to title vesting in the United States, ownership of the property was held by the company, persons, and estates of persons listed in this Order and Reasons. IT IS FURTHER ORDERED: that the just compensation payable by the United States to the defendants-claimants shall be the sum total of $21,000.00 for the taking of the Tract 104E. Within seven days, the United States shall submit a proposed judgment consistent with this Order and Reasons.