St. Bernard Port, Harbor & Terminal Dist. v. Violet Dock Port, Inc.Annotate this Case
Although the Louisiana Constitution generally restricts the government from expropriating private property, it provides broad exceptions for public port authorities. The Constitution provides that the government can expropriate property for “[p]ublic ports . . . to facilitate the transport of goods or persons in domestic or international commerce.” The Louisiana Supreme Court granted review in this matter to determine whether St. Bernard Port, Harbor & Terminal District’s (the “Port”) expropriation of property owned by Violet Dock Port, Inc., L.L.C. (“Violet”) on the Mississippi River satisfied the “public purpose” requirement of art. I, section 4(B)(1) of the Louisiana Constitution and, further, whether it violated the business enterprise clause of art. I, section 4(B)(6). The Court found the record demonstrated that the Port’s expropriation was for the public purpose “to facilitate the transport of goods or persons in domestic or international commerce” and not for the constitutionally prohibited purpose of operating Violet’s enterprise or halting competition with a government enterprise. Therefore, the Court affirmed the court of appeal’s judgment that the expropriation was constitutional. However, the Supreme Court also found the trial court made a legal error in setting the just compensation due to Violet under art. I, section 4(B)(1), and further found the court of appeal failed to correct that error. This case was remanded to the court of appeal solely for the purpose of fixing the amount of just compensation based on the evidence in the record and in accordance with the principles discussed by the Supreme Court in this opinion.