Allain v. Martco Partnership

851 So. 2d 974, 2003 WL 21204657
CourtSupreme Court of Louisiana
DecidedMay 23, 2003
Docket2002-CA-1796
StatusPublished
Cited by9 cases

This text of 851 So. 2d 974 (Allain v. Martco Partnership) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Allain v. Martco Partnership, 851 So. 2d 974, 2003 WL 21204657 (La. 2003).

Opinion

851 So.2d 974 (2003)

Frank Baist ALLAIN, et al.
v.
MARTCO PARTNERSHIP.

No. 2002-CA-1796.

Supreme Court of Louisiana.

May 23, 2003.
Rehearing Denied September 5, 2003.

*976 Kean, Miller, Hawthorne, D'Armond, McCowan & Jarman, James Patrick Dore, Alan J. Berteau, Amy Louise deGeneres Berret, Baton Rouge, Counsel for Appellant.

Dupont, Dupont & Dupont, James H. Dupont, William Christopher Dupont, Plaquemine, Counsel for Appellee.

Christopher J. Dicharry, Baton Rouge, Marion A. French, Alexandria, Counsel for Amicus Curiae.

JOHNSON, Justice.

This matter arises out of the sale of timber where the minority co-owners filed suit against the buyer to annul the sale. After a trial, the trial court ruled in favor of the buyer and against the minority, who appealed. The court of appeal reversed *977 the trial court's ruling and found that LSA-R.S. 3:4278.2 was unconstitutional. This Court docketed the case as an appeal to determine whether the statute is unconstitutional.

FACTS & PROCEDURAL HISTORY

The ownership interest of 9,617 acres of timberland located in Iberville and West Baton Rouge Parishes was divided, for the purpose of this matter, into two groups— the majority co-owners, owning 82.5% interest, and the minority co-owners, owning 17.5% interest. On December 30, 1993, the majority co-owners and Martco Partnership ("Martco") entered into a contract to sell the timber. However, the minority co-owners ("minority") refused to participate in the sale.[1] The timber was sold and the minority's portion of the sale proceeds was deposited into the registry of the court. On March 30, 1994, the minority filed suit against Martco to annul the timber sale, arguing that: 1) the consideration for the sale was so inadequate that it constituted lesion beyond moiety; 2) Martco failed to strictly comply with the provisions set forth in LSA-R.S. 3:4278.2;[2] and 3) LSA-R.S. 3:4278.2 is unconstitutional. After a bench trial, the trial court rejected each of the minority's claims and ruled in favor of Martco. Specifically, the trial court found that:

... LSA-R.S. 3:4278.2, bears a rational relationship to the legitimate state interest of the conservation and use of forest resources in the State of Louisiana and, is therefore constitutional.
The court also finds as a matter of fact and based upon the evidence adduced at trial that Martco Partnership complied fully with the provisions of the applicable statute, 3:4278.2 et seq, and offered each co-owner the exact terms and conditions, including the offer required to be made to the non-consenting landowners.
*978 The court further finds as a matter of fact and based upon the evidence adduced at trial that the price paid for the timber purchased was in excess of 50% of the value of said timber and the sale of said timber is therefore not lesionary.

The minority appealed the trial court's ruling. The court of appeal reversed the trial court's ruling. Allain v. Martco Partnership, 01-0614 (La.App. 1st Cir.4/17/02), 828 So.2d 587.

The court of appeal held that: 1) the trial court reasonably found that the price Martco paid the minority for the timber was not lesionary; 2) the minority was not entitled to damages for the loss of aesthetic value, reforestation cost, or mental anguish; and 3) minority would be adequately compensated with $218,295.20 in damages, for their loss of right to determine the conditions and timing of the timber sale. The court of appeal found no manifest error in the trial court's decision that Martco's price paid was not less than 50% of the fair market value and thus was not lesionary. The court of appeal noted that the trial court has great discretion in assessing the credibility of expert witnesses and accepting or rejecting their opinions.[3] The trial court, after viewing the timber and hearing the testimony of four foresters, who cruised[4] the timber, determined that the price paid by Martco exceeded 50% of the fair market value and ruled that the price was not lesionary.

Next, the court of appeal held that Martco complied with the statute regarding the sale of co-owned timber by offering the minority a contract on "substantially the same basis" as the majority owners. The court of appeal noted that the differences in the contracts, i.e., the legal description of the tract of land; the method of payments (the two split payments made to the majority versus the lump sum paid to the minority owners) were inconsequential since the price, terms, and conditions were the same.

The court of appeal, in finding that LSA-R.S. 3:4278.2 was unconstitutional, held that the statute impermissibly allowed a "`quick-taking' of privately-owned property by private parties for private purposes, with no prior notice or opportunity" to be heard. The court of appeal reasoned that under the statute, minority owners would not receive notice until the sale had been confected by a purchase agreement. Therefore, minority owners, under the statute had no opportunity to participate in negotiations regarding the timber and its value.

Finally, the court of appeal held that the statute was unconstitutional because it violated the minority's right to procedural due process.[5] The court of appeal found that the trial court failed to address the statute's compliance with procedural and substantive due process.

This Court docketed the case as an appeal to determine whether LSA-R.S. 3:4278.2 is unconstitutional. Allain v. Martco Partnership, 02-1796 (La.10/4/02), 826 So.2d 1132. The minority did not seek supervisory review of the ruling by the court of appeal, nor did they answer Martco's appeal; therefore, the only issues before this Court are those raised by Martco. *979 Martco argues that: LSA-R.S. 3:4278.2 does not raise due process concerns because action by private landowners does not equate to "state action" and that even if action by the majority owners can be construed as "state action," the statute meets the due process requirements and provides non-consenting co-owners an opportunity to contest the sale.

DISCUSSION

The issue is res nova before this Court as to whether LSA-R.S. 3:4278.2 is unconstitutional, thereby violating the Fourteenth Amendment of the United States Constitution and LSA-Const., Article I, Sections 2 and 4.[6]

In considering the constitutionality of a statute, jurisprudence recognizes the general presumption of a statute's constitutionality. Brown v. State, Department of Public Safety & Corrections, 96-2204 (La.10/15/96); 680 So.2d 1179. The party that challenges the statute's constitutionality carries the burden of proving by clear and convincing evidence specific constitutional infirmities. Id.

In Board of Commissioners of Orleans Levee District v. Dept. of Natural Resources, 496 So.2d 281, 296 (1986), this Court found that:

Unlike the federal constitution, [our] state constitution's provisions are not grants of power but instead are limitations on the otherwise plenary power of the people of a state exercised through its legislature. In its exercise of the entire legislative power of the state, the legislature may enact any legislation that the state constitution does not prohibit. Thus, to hold legislation invalid under the constitution, it is necessary to rely on some particular constitutional provision that limits the power of the legislature to enact such a statute.

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