Allain v. Martco Partnership

828 So. 2d 587, 2002 WL 569411
CourtLouisiana Court of Appeal
DecidedApril 17, 2002
Docket2001 CA 0614
StatusPublished
Cited by5 cases

This text of 828 So. 2d 587 (Allain v. Martco Partnership) 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
Allain v. Martco Partnership, 828 So. 2d 587, 2002 WL 569411 (La. Ct. App. 2002).

Opinion

828 So.2d 587 (2002)

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

No. 2001 CA 0614.

Court of Appeal of Louisiana, First Circuit.

April 17, 2002.
Rehearing Denied May 29, 2002.

*590 James H. Dupont, William C. Dupont, Plaquemine, for Plaintiffs/Appellants, Frank Baist Allain, et al.

James P. Dore, Amy D. Berret, Baton Rouge, for Defendant/Appellee, Martco Partnership.

Before: CARTER, C.J., PARRO, and CLAIBORNE,[1] JJ.

CARTER, C.J.

This suit arises from a dispute between plaintiffs,[2] who co-own 17.5% of 9,617 acres of timberland in Iberville and West Baton Rouge Parishes, and the co-owners of the remaining 82.5% ("majority owners"). Martco Partnership (Martco) entered into a sale with the majority owners pursuant to LSA-R.S. 3:4278.2,[3] which permits the sale of timber with the consent of co-owners representing at least 80% ownership interest in the land. Because plaintiffs refused to participate in the sale, their *591 portion of the sale price was deposited into the registry of the court in accordance with LSA-R.S. 3:4278.2D.

Plaintiffs filed suit against Martco to annul the sale. Plaintiffs contend that the sale is invalid for three reasons: 1) the consideration for the sale was so inadequate as to constitute lesion beyond moiety;[4] 2) Martco did not strictly comply with the provisions of LSA-R.S. 3:4278.2; and 3) LSA-R.S. 3:4278.2 is unconstitutional.[5] After a bench trial, the trial court rejected each of these claims and rendered judgment in favor of Martco. Plaintiffs appeal.

WAS THE PRICE MARTCO PAID FOR THE TIMBER LESIONARY?

Plaintiffs contend that the price Martco paid for the timber, $2,490,750.18, on 9,617 acres,[6] was less than half the fair market value and thus the sale is subject to rescission for lesion beyond moiety under LSA-C.C. art. 2589.[7] The trial court found specifically "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."

Three foresters "cruised" this property—Steven L. Busby for plaintiffs, Jewel L. Willis for the majority owners, and Donald J. Gremillion for Martco. A timber cruise is a systematic sample conducted on a tract of timber to determine the species and grade of timber on the property. From a cruise, a forester can calculate "stumpage" (the value of the standing timber) by determining the board feet of saw timber and the number of cords of pulpwood that can be harvested from the tract.[8] Busby estimated the stumpage value at $5,179,354.01, based on 8,608,998 board feet of saw timber and 10,869 cords of pulpwood. Willis calculated a slightly smaller amount, 8,075,866 board feet of saw timber and 10,091 cords of pulpwood, while Gremillion reached a much smaller figure when he cruised for Martco—4,843,993 board feet of saw timber and 5,188 cords of pulpwood. The smaller volume of Gremillion's cruise calculations accounted *592 for a much lower estimate of the fair market value of the timber.

The foresters agreed that timber cruising is not an exact science. The foresters involved knew one another, and each testified the other foresters were professionals. Gremillion testified that this timber had been "high graded" over the years, that is, only the most valuable trees had been removed, so the remaining trees were of lesser quality. Walter L. Stokes, an expert in forestry management and valuation, agreed that the timber had been high graded and was of less than average quality. Willis and Gremillion also testified that some of the timber would be difficult to harvest because of poor drainage in lowlying areas.

Stokes pointed out that the difference in cruise volumes results from the different interests represented by the foresters. He stated the seller is looking to sell as much timber as he can, while the buyer is looking for the kind of timber he needs to use in his mill. Willis explained that when he is cruising for a seller, he includes trees that might be questionable, while a forester cruising for a buyer would exclude them. He stated, "I'm putting down there what may be there, [but] they're putting what they believe is there and not taking a chance on what may not be usable." Gremillion further explained that he placed no value on the unmarketable species of trees, such as locust, bitter pecan, and overcup oak, while Busby valued them all.

The timber was offered to the public for bids by the majority owners, but only two bids were received—Martco's, and one from a timber broker for approximately $1,000,000. Martco originally bid $2,100,000, but increased its offer to the majority owners' asking price when they agreed to a longer period to harvest the trees. Stokes testified that, in his opinion, the price paid by Martco was fair and reasonable.

Before we can determine whether the trial court erred in finding that the price Martco paid was not lesionary, we must address two evidentiary issues raised in a motion filed by plaintiffs and in plaintiffs' supplemental brief.

1) Should we consider the portions of Martco's briefs regarding the court-ordered logging and Exhibits D-26 through D-32?

The trial judge was in a quandary over the disparity in the volumes calculated by the foresters. He asked the parties if a small tract remained that had not yet been cut and learned that a 40-acre tract remained. This tract had been cruised by Willis, Gremillion, and Busby. At the conclusion of the trial, he directed the parties to have the 40-acre tract cut and report the number of trees harvested so he could determine which forester's estimate was more accurate.[9] This court-ordered harvesting was done, and on March 31, 2000, plaintiffs filed a motion to introduce exhibits P-40a through P-40e, which include photographs of the tract after the harvest and a comparison of the volume count and the estimates. On April 3, 2000, Martco filed a motion to introduce exhibits D-26 through D-32, showing the results of the harvest. Plaintiffs moved to strike the audio portion of exhibit D-26 but did not object to Martco's other exhibits. The trial court never issued a formal ruling on these exhibits but rendered judgment on September 28, 2000.

Although plaintiffs argue to the contrary, in our opinion the figures from the court-ordered logging, as shown in Martco's *593 exhibits, support Martco's forester's (Gremillion's) figures. After Martco's appellate brief was filed, plaintiffs filed a motion in this court to disregard the portions of Martco's brief that refer to the court-ordered logging. Four days later, Martco filed a motion in the trial court to supplement the record with the missing exhibits. At the trial court hearing on the motion to supplement the record, the trial court stated, "I went out and I saw this. I saw exactly what y'all are showing me right here [in the photographs]." The trial court then ordered the record supplemented with both Martco's exhibits D-26 through D-32 and plaintiffs' exhibits P-40a through P-40e. The district court clerk of court duly transmitted those exhibits to this court. The supplementation of the record rendered moot the portion of plaintiffs' motion asking us to disregard the statements in Martco's brief regarding those exhibits, and thus that portion of the motion will be denied.

2) Did the trial court err in permitting the record to be supplemented with exhibits D-26 through D-32?

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Lewis v. State
48 So. 3d 583 (Court of Appeals of Mississippi, 2010)
Norris v. Fontenot
867 So. 2d 179 (Louisiana Court of Appeal, 2004)
Ted Norris v. Stafford P. Fontenot
Louisiana Court of Appeal, 2004
Allain v. Martco Partnership
851 So. 2d 974 (Supreme Court of Louisiana, 2003)
McConnico v. Red Oak Timber Co.
847 So. 2d 191 (Louisiana Court of Appeal, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
828 So. 2d 587, 2002 WL 569411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allain-v-martco-partnership-lactapp-2002.