City of New Orleans $90 Million Court Judgment Plan Stalls | The McMahon Law Firm

One of the largest and most significant judgments impacted by the City of New Orleans’ payment delays involves a $25 million class action case won by The McMahon Law Firm. Attorneys Joe McMahon and Anthony Maska successfully argued that the city’s early Automated Traffic Enforcement System (ATES) violated the city charter because the Department of Public Works, not the police department, was issuing and enforcing citations. The court later ruled that the ordinance was null ab initio, meaning void from the beginning, and that all fines collected under it were unlawful.

Despite the 2018 judgment being finalized and upheld on appeal, thousands of New Orleans motorists remain unpaid. Their case is now caught up in the city’s broader effort to manage more than $88 million in unpaid court judgments, as highlighted in a recent Fox 8 News Report.

According to FOX 8 News, the City of New Orleans owes more than $88 million across 400 court judgments, some dating back nearly three decades. The city introduced a $90 million bond proposal earlier this year meant to resolve these debts, but the Louisiana Bond Commission deferred approval amid a $160 million budget shortfall and mayoral transition concerns.

In the case of Joe McMahon and Anthony Maska’s clients, the matter stems from the city’s automated traffic‐camera enforcement program (the “ATES” ordinance) that was originally administered by the New Orleans Department of Public Works (“DPW”) rather than the New Orleans Police Department (“NOPD”). The Fourth Circuit Court of Appeal summarized that:

• The trial court issued a partial summary judgment on November 15, 2017 and amended it on February 21, 2018 to specify a money judgment of $25,612,690.32 for the specified subclass of plaintiffs who paid fines under the invalid ATES ordinance between January 1, 2008 and November 3, 2010.
• The court held that the ATES ordinance, as initially enforced by the DPW, was null ab initio because the City lacked authority under its home-rule charter to have the DPW administer and enforce a traffic regulation, as opposed to the NOPD.
• Because the ordinance was held invalid, the court concluded that any money collected under that invalid regime must be returned to affected registrants/vehicle owners.

Attorney Joe McMahon, representing the class of plaintiffs, continues to press for enforcement of the judgment. As noted in the FOX 8 report.

“I haven’t given up, and I don’t plan to give up. We’ll just have to wait and see.”

His statement came in response to the city’s prolonged inaction on payments owed to his clients, reflecting frustration with a process that has stretched on for years despite a clear legal ruling.

Unpaid judgments not only represent financial obligations, but they also undermine public trust in government. We believe that every citizen or business that follows the legal process deserves full restitution in a timely manner.