Albritton v. Albritton

591 So. 2d 357, 1991 La. App. LEXIS 3234, 1991 WL 255297
CourtLouisiana Court of Appeal
DecidedNovember 22, 1991
Docket90 CA 0837
StatusPublished
Cited by4 cases

This text of 591 So. 2d 357 (Albritton v. Albritton) 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
Albritton v. Albritton, 591 So. 2d 357, 1991 La. App. LEXIS 3234, 1991 WL 255297 (La. Ct. App. 1991).

Opinion

SAVOIE, Judge.

This case involves the issue of prescription. Plaintiff, Alvin H. Albritton, filed suit on January 12, 1988, seeking to annul a document he executed on September 21, 1972, which purported to extend a spendthrift trust as to which Albritton was an income beneficiary throughout Albritton’s lifetime. Named as defendants in the suit were the trustees of the trust, A. Stirling Albritton and Hallie Box, and William Louis Albritton, the trustee who preceded Ms. Box. The defendants filed an exception of prescription. The trial judge sustained the exception as to the suit except as to those claims brought pursuant to the plaintiff’s rule to remove the trustees.

FACTS

Alvin R. Albritton, the plaintiff’s grandfather, died on December 23, 1957. He bequeathed to his four grandchildren, including the plaintiff, the naked ownership of an undivided one-fourth interest of his residuary estate. This interest was placed in an irrevocable testamentary spendthrift trust with the plaintiff’s father, A. Stirling Albritton, and uncle, William Louis Albrit-ton, named as trustees; the plaintiff’s father and uncle also received a lifetime usu-fruct over the property given to the grandchildren. The trust was to terminate in two stages: half of the corpus was to be distributed to the plaintiff and the other grandchildren on their twenty-first birthdays, and the other half on their twenty-sixth birthdays. The plaintiff turned twenty-one on January 23, 1973, and twenty-six on January 23, 1978.

On September 21, 1972, the plaintiff, appearing as settlor, executed a document whereby the term of the trust was extended for his lifetime. The document states: “Settlor does hereby, and acting as Settlor, extend the term of the Trust described above insofar as Settlor is beneficiary thereunder to provide that the term is for the lifetime of the Settlor.” The document also provides that

If it should be determined that the Trust described above cannot be extended in this manner, then Settlor declares that Settlor’s interest in the Trust described above shall be held and is hereby placed irrevocably in trust and shall be managed and invested and reinvested and held with and distributed in exactly the same manner as set forth in the Trust described above, but for Settlor’s lifetime, by the same Trustees and successors as provided therein, and, in that event, Settlor incorporates the trust agreement described above into this act by reference as a new trust.

The document was signed by the plaintiff and the trustees, and witnessed by two other persons and a notary public.

The plaintiff filed suit against the trustees alleging that he signed the trust extension based on the representations that all the grandchildren would execute lifetime extensions and that if the document were not signed, the Albritton properties would have to be partitioned, particularly a tract known as Stoney Point. The plaintiff also alleged that he signed the extension without advice of counsel and that he never received a copy of the document. The plaintiff alleged that after 1986, when differences arose between him and his father over Stoney Point, he undertook to determine his legal rights based on the trust extension; he then found out that two of the Albritton grandchildren did not sign lifetime trust extensions.

[360]*360The plaintiff prayed for a declaratory judgment that the trust extension is absolutely null, or alternatively, that any trust created by the extension be terminated and annulled under LSA-R.S. 9:2026 or under the doctrine of error. The defendants filed a peremptory exception raising the exception of prescription.

TRIAL JUDGE’S REASONS FOR JUDGMENT

Following a hearing, the trial judge sustained the prescription exception and issued oral reasons for judgment. The trial judge found that although “it seems like a harsh thing”, the trustees thought it was in the plaintiffs best interest to extend the trust for his lifetime. The judge also stated that the plaintiff thought that the trust extension only pertained to the Stoney Point property. The judge noted that the attorney who prepared the trust extension was retained by the trustees and was not directly representing the plaintiff; however, the judge noted that the attorney gave the plaintiff the opportunity to go over the pertinent paragraphs in the document and reminded him of the earlier termination dates and made it clear that “it was for life.” The judge found that the details of the properties involved were not discussed when the trust extension was signed.

The judge then stated that he must decide whether the trust extension was a relative nullity or an absolute nullity. The judge determined that the extension did not rise to the level of an absolute nullity as defined under LSA-C.C. art. 2030, although it may have violated some of the provisions of the trust code, but it was a relative nullity because “giving Alvin the benefit, you might say, looking at it in his best light, and the only thing we have on that is his expression concerning Stoney Point that it was his idea that Stoney Point was the only property involved.” He then found that the plaintiff learned, at least, if not sooner, in 1980, that more property than Stoney Point was involved. The judge further noted that no one really concealed anything from the plaintiff and that all the information was public record. The judge found that the five year prescriptive period applicable to relative nullities as set forth in LSA-C.C. art. 2032 should be used, and that prescription ran before the plaintiff filed suit. The judge also found that the doctrine of contra non valentum was not applicable because there were no overt acts by other parties.

The plaintiff then filed a motion for new trial as to the prescription exception and attempted to file an amended petition. In his reasons for judgment in denying the plaintiff’s motion for new trial and in not allowing the plaintiff to file an amended petition, the trial judge rejected the plaintiff’s argument that his petition set forth causes of action under LSA-R.S. 9:2026 and the declaratory judgment act, LSA-C.C.P. arts. 1871-1883, which were impre-scriptible. The judge also stated that:

[T]he issue of prescription as to plaintiff’s cause of action under LA.R.S. 9:2026 is subsumed within its original decision on the exception. Furthermore, the court is of the opinion that a cause of action under LA.R.S. 9:2026 is subject to the ten year prescriptive period for personal actions, CCA 3499, which period would have commenced on the date the instrument was signed.

The trial judge also found that because the plaintiff was asking the court to declare the trust extension null and void, the plaintiff’s action was in contract, and was not a declaratory judgment action. The trial judge restated his finding that the trust extension was a relative nullity and not an absolute nullity. The judge also reiterated his finding that contra non valentum was not applicable. The judge finally stated that the plaintiff was not entitled to the opportunity to amend his petition.

ASSIGNMENTS OF ERROR

The plaintiff urges two assignments of error:

1. The trial court erred in granting the defendant trustees’ peremptory exception of prescription and in dismissing the plaintiff’s lawsuit.

[361]*3612. The trial court erred in refusing to allow the plaintiff to file a proposed amending petition.1

DEFENDANTS’ EXCEPTION OF PRESCRIPTION

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Related

Opinion Number
Louisiana Attorney General Reports, 1999
Albritton v. Albritton
592 So. 2d 1326 (Supreme Court of Louisiana, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
591 So. 2d 357, 1991 La. App. LEXIS 3234, 1991 WL 255297, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albritton-v-albritton-lactapp-1991.