Abbeville Lumber Co. v. Richard

350 So. 2d 1292, 1977 La. App. LEXIS 4882
CourtLouisiana Court of Appeal
DecidedOctober 17, 1977
Docket6144
StatusPublished
Cited by15 cases

This text of 350 So. 2d 1292 (Abbeville Lumber Co. v. Richard) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abbeville Lumber Co. v. Richard, 350 So. 2d 1292, 1977 La. App. LEXIS 4882 (La. Ct. App. 1977).

Opinion

350 So.2d 1292 (1977)

ABBEVILLE LUMBER COMPANY, Plaintiff-Appellee,
v.
Lester James RICHARD et al., Defendants-Appellants.

No. 6144.

Court of Appeal of Louisiana, Third Circuit.

October 17, 1977.

*1294 Deshotels & Deshotels, O. H. Deshotels, III, Kaplan, for defendants-appellants.

Cooper & Sonnier by John E. Ortego, Abbeville, for plaintiff-appellee.

Before HOOD, CULPEPPER and GUIDRY, JJ.

GUIDRY, Judge.

This is a suit on an open account in which plaintiff seeks judgment against defendants, Sidney Richard and Lester James Richard, and recognition of a materialman's lien on property owned by Sidney Richard. Lester Richard filed answer admitting that certain materials were furnished to him but *1295 denied any indebtedness to plaintiff. Sidney Richard answered denying his indebtedness to plaintiff and reconvened seeking damages from plaintiff for wrongful filing of the lien. After trial on the merits, judgment was rendered in favor of plaintiff against both defendants holding them to be solidarily liable to plaintiff in the amount of $2,787.65 plus interest and attorney's fees. The judgment recognized plaintiff's lien as valid and dismissed the reconventional demand. Sidney Richard appealed. Lester Richard has not appealed and the judgment against him is now final.

The issue presented is whether Sidney Richard is personally liable to the plaintiff and whether the latter has a valid lien on the Sidney Richard property which secures the payment of the claimed indebtedness.[1]

The facts giving rise to this litigation are not seriously disputed and may be summarized as follows.

Sidney Richard, a retired farmer, is the sole owner of a tract of land in Vermilion Parish containing approximately 80 acres. He resides on the property with his wife and son, Lester James Richard. At some time prior to June, 1975, Lester decided to open a horse racing track to be known as "Acadiana Downs". He secured estimates of the approximate cost of the endeavor and then approached his father concerning the financing of the project. It was agreed that Sidney would loan Lester the money needed, and would lease him a portion of his property on which the race track was to be constructed. On June 6, 1975, Mr. and Mrs. Richard executed a note and mortgage in the amount of $35,000.00 in favor of the Vermilion Bank & Trust Company. The proceeds of the loan were distributed by paying off a prior debt, in the amount of $15,000.00, that Lester owed the bank for past farming losses with the remainder $20,000.00, being loaned Lester for the construction of the race track. The latter sum was deposited to an account in Lester's name.

On June 25, 1975, a written lease was executed, affecting approximately 60 acres of land, between Sidney Richard and his wife, as lessors, and Lester James Richard, as lessee, which was duly recorded on June 27, 1975. The lease provided for a primary term of 25 years and for monthly rental payments to be made by the lessee in the amount of $300.00. The lease also contained the following pertinent provisions:

"Should this lease be cancelled by either party after the primary term hereof, LESSEE shall have six (6) months thereafter to remove any and all improvements thereon. It is hereby recognized that there are no improvements located on this property at the present time.
It is stipulated that the property is to be used for a bar and/or tavern together with a race track and LESSEE may erect such improvements as are necessary for same . . ."

Though executed on June 25, 1975, the lease was made retroactive to June 1, 1975.

Sidney's residence is adjacent to the leased property and it is undisputed that he performed various tasks for his son to aid in the construction of the race track. He plowed and leveled the land with his tractor and helped Lester measure and extend the track when it was determined that this was necessary. On one occasion, he assisted a vehicle that had become stuck at the construction site. Sidney signed one invoice for materials delivered by plaintiff. When Lester was in the hospital, Sidney purchased several licenses which would be necessary for the operation of the race track with money furnished by Lester. It is undisputed that Sidney never received any remuneration for the services he performed. It is also undisputed that no rental payments *1296 were ever actually made. Instead, Lester executed promissory notes payable to Sidney every three or four months for the past due rent.

Some months following execution and recordation of the lease, plaintiff extended credit to Lester through an "open account" which had been opened on the basis of a recommendation from an acquaintance of the Richard family. A series of purchases were made on the account during January and February of 1976 which were not paid when due. In February, 1976, plaintiff filed a materialman's lien on the property owned by Sidney Richard. On March 8, 1976, plaintiff filed the instant suit.

In his written reasons for judgment the trial judge, in finding Sidney Richard solidarily liable with Lester and in recognizing plaintiff's lien as valid, stated:

"The court must now determine whether or not the involvement of Sidney Richard was sufficient to justify including him in the judgment and maintaining plaintiff's lien rights against his property . . .
Both Sidney and Lester maintain that there was never any agreement between them to share the profits of the racing operation. Sidney denies any other motive for his generosity than merely a desire to help his son earn a living by operating the track. Regardless of his motives, the facts indicate that a substantial business operation was underway which was financed entirely by Sidney Richard.
In addition, substantial improvements were erected on Sidney's property which will eventually enure to his benefit according to the lease. Finally, the court feels that the lease itself was contracted under circumstances which indicate that its sole purpose was to shield Sidney and his property from further liability. As a result, the court finds that the work was done with the knowledge and consent of the owner so that LSA-R.S. 9:4801 applies and plaintiff is entitled to have its lien rights recognized against the property of Sidney Richard. See Teche Concrete, Inc. v. Moity, 168 So.2d 347 (La. App. 3rd Cir. 1965). Although the intention of the Richards may not have been fraudulent, the lease was certainly confected to limit Sidney's liability to the amount he actually loaned Lester to construct the track. The fact that the lease was made retroactive to June 1, the fact that Lester never paid any rent money, and the circumstances surrounding the project itself, all point to the conclusion that the lease was a simulated transaction which the creditors are entitled to attack if it is done to their injury."

We find these conclusions to be manifestly erroneous and reverse.

PRIVATE WORKS ACT

Although, plaintiff in its petition alleges that Sidney Richard contracted with it for the sale and delivery of certain building materials there is no evidence in the record to support this allegation. To the contrary, the record clearly reflects that Sidney Richard had no personal contact and conducted no negotiations of any kind with plaintiff's officers or employees. All negotiations were between Lester Richard and plaintiff and all materials delivered were billed to Lester Richard and/or "Acadiana Downs".

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Cite This Page — Counsel Stack

Bluebook (online)
350 So. 2d 1292, 1977 La. App. LEXIS 4882, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abbeville-lumber-co-v-richard-lactapp-1977.