Property owners sue Redevelopment Authority to obtain clean title

New Orleans property owners are suing the city's Redevelopment Authority to release title on their property.

Denise Bellanger and Richard Cotton filed suit against New Orleans Redevelopment Authority and/or city of New Orleans on Oct. 6 in Orleans Parish District Court.

Bellanger and Cotton state that they paid cash for property located at 1605 Odeon Street on July 14, 2008 from the defendant. According to the lawsuit, the owners cannot sell the property until they receive a title insurance policy. To receive the title insurance policy, the city lien of $804.00 must be canceled, a right of reversion in the act of sale must be obtained and the expropriation by the Redevelopment Authority must be ruled on and dismissed, the suit claims.

The plaintiffs accuse the defendant of breaching its warranty to deliver a merchantable title.

Bellanger and Cotton are asking for the court to order the defendant to clear the title and to cancel encumbrances.

They also are asking the court for an award of damages for the delay in sale of the property, diminution in value over time, attorney's fees and costs.

Bellanger and Cotton are represented by Philip A. Gattuso in Gretna.

Judge Lloyd J. Medley is assigned to the case.

Case No. 10-10238