Aladdin Oil Co. v. Marque

157 So. 2d 368, 1963 La. App. LEXIS 1999
CourtLouisiana Court of Appeal
DecidedApril 1, 1963
DocketNo. 978
StatusPublished
Cited by4 cases

This text of 157 So. 2d 368 (Aladdin Oil Co. v. Marque) 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
Aladdin Oil Co. v. Marque, 157 So. 2d 368, 1963 La. App. LEXIS 1999 (La. Ct. App. 1963).

Opinions

YARRUT, Judge.

Plaintiffs sued the estate of Robert L. Hickerson, deceased lawyer-notary, in solido with the surety on his notarial bond, and his professional liability insurer, for $39,-458.70, interest and costs. The basis of Plaintiffs’ claim is that during August 1959, they employed the deceased as their attorney and notary to represent them in the purchase of 50 lots of ground (in St. Bernard Parish) and, because he failed to properly perform his professional duties, they failed to obtain valid title to 17 of the 50 lots transferred, which their vendor had previously sold, and for which they paid $2300.00 per lot, and $358.70 taxes. Defendants denied liability, contending:

1.Hickerson was not employed as attorney, but acted solely as notary to prepare and execute the usual notarial act of sale;

2. In the alternative, that Plaintiffs had knowledge of the non-ownership by the vendor of the 17 lots, and were guilty of contributory negligence in not observing the mortgage and conveyance certificates which disclosed this fact;

3. That Plaintiffs suffered no loss thereby, because they had paid the purchase price long before the execution of the formal notarial act of sale and purchase, and hence could not have been misled by Hick-erson, who was not employed to examine the title because a title bond had been issued to Plaintiffs’ vendor;

4. That, in any event, they are entitled to a credit of $10,000.00 which Plaintiffs received on account of a re-purchase agreement between them and their vendor, which was never consummated;

5. Parol evidence was improperly admitted by the District Court to prove Hick-erson’s employment as attorney, as the suit was brought more than one year after his death, and the testimony of the Plaintiffs’ executive officers was not corroborated as required by law. LSA-R.S. 13:3721 and LSA-R.S. 13:3722.

Defendant (notarial insurer) filed a third-party action against the Succession representatives to recover $10,000.00 (the limit of its coverage) as the deceased had indemnified it against loss. The professional liability insurer filed a third-party action against the vendor, Deep River Development Corporation, and its Secretary, E. B. Breazeale, charging it was Breazeale’s active fraud and misrepresentation which led Hickerson into the error about the lack of title to the 17 lots, and prayed for judgment over and against them for any judgment that might be rendered against said Defendant in the main demand.

The District Court rendered judgment in solido against all Defendants for $10,000.00; and further judgment in solido for $29,-458.70 against the same Defendants, excluding the notarial insurer (whose liability was limited to $10,000.00) ; and third-party [370]*370judgment in favor of notarial insurer, against the Succession representatives, for $10,000.00 by virtue of the deceased’s indemnification. No judgment was rendered on the professional insurer’s third-party action.

While the transcript of the testimony is garbled in some instances, the facts as disclosed are substantially as follows:

By agreement dated August 2, 1959, Plaintiffs agreed to purchase from Deep River Development Corporation 50 lots of ground located in St. Bernard Parish for $115,000.00, at that time depositing on account of the purchase price, $38,000.00. The agreement recited the act of sale was to be passed before purchaser’s notary,' vendor to be responsible for the payment of all fees and costs.

On behalf of Plaintiffs, C. J. True, President of C. J. True Corporation, contacted Hickerson and employed him as both attorney and notary to represent both Plaintiffs in connection with the acquisition of the property. Because Hickerson advised True he was familiar with the title to the lots, and there was an outstanding title bond issued to the vendor, no written title opinion was requested of Hickerson.

Subsequent to the execution of the purchase agreement, and prior to the execution of the notarial act of sale, three additional payments were made by True for his corporation to the vendor, totalling $41,500.00.

On November 3, 1959, the date of the execution of the notarial act, all parties met in Hickerson’s office, at which time Hickerson advised the Presidents of the respective purchasers that their corporations were acquiring good and clear title to all 50 lots. When they inquired about Hicker-son’s fee, he assured them his fee would be deducted from the proceeds of the sale.

Hickerson, as Plaintiffs’ (purchasers’) notary and attorney, executed the act of sale of all 50 lots, in which act was recited:

“By reference to the certificate of the Register of Conveyances and Recorder of Mortgages in and for the Parish of St. Bernard, annexed hereto, it does not appear that the said property has been heretofore alienated by the vendor or that it is subject to any encumbrance whatever, with the exception of the following inscriptions which the vendor obligates himself to have cancelled and released out of the proceeds of this sale:
“Mortgage by Deep River Development Corporation in Favor of Oliver H. Dabezies, as per act before George E. Konrad, N.P., dated November 13, 1958. Amount of mortgage $17,500.00, interest 6%, payable one year after date, recorded November 17, 1958 in MOB 59, folio 397.
“Mortgage by Deep River Development Corporation in favor of Robert L. Hickerson as per act before George E. Konrad, N.P., dated February 6, 1959. Amount of mortgage $12,000.00, interest 6%, payable on demand, recorded February 9, 1959 in MOB 60, folio 354.
“Mortgage by Deep River Development Corporation in favor of Oliver H. Dabezies as per act before George E. Konrad, N.P., dated February 20, 1959. Amount of mortgage $11,-000.00, interest 8%, payable on or before sixty days, recorded February 24, 1959 in MOB 60, folio 427.”

The conveyance certificate, attached to the act, revealed a prior alienation of the property by Deep River, as follows:

“Sale by Deep River Development Corporation to Home Building and Loan Association, as per act before Arthur J. O’Keefe, Jr., N.P., dated February 13, 1959, recorded February 17, 1959, in COB 72, folio 36.”

This above inscription referred to a sale in which Deep River sold the 17 lots in question through the Home Building and Loan Association to Ervin B. Breazeale [371]*371(Secretary of Deep River), in which that Association retained a vendor’s lien and mortgage for $40,000.00.

Upon execution of the act of sale involved herein, a check of Aladdin Oil payable to Deep River, for $38,500.00 was delivered to Breazeale (Secretary of the vendor corporation) who endorsed it in blank, and gave it to Hickerson, who deposited it in his own bank account. As the previous deposits made by True Corporation exceeded its portion of the purchase price, Hickerson gave his personal check for $3,000.00 as a refund to True Corporation.

In June 1960, when Mr. True first discovered that Plaintiffs had no title to the 17 lots, he contacted Hickerson, who admitted his error and accepted full responsibility for the loss. Later, Hickerson wrote Mr.

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Related

Haughton Elevator Division v. STATE, ETC.
367 So. 2d 1161 (Supreme Court of Louisiana, 1979)
Succession of Killingsworth
270 So. 2d 196 (Louisiana Court of Appeal, 1973)
Tuttle v. Schlater
270 So. 2d 196 (Louisiana Court of Appeal, 1972)
Aladdin Oil Co. v. Marque
158 So. 2d 613 (Supreme Court of Louisiana, 1963)

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157 So. 2d 368, 1963 La. App. LEXIS 1999, Counsel Stack Legal Research, https://law.counselstack.com/opinion/aladdin-oil-co-v-marque-lactapp-1963.