Allen v. Burnett

530 So. 2d 1294, 1988 WL 85630
CourtLouisiana Court of Appeal
DecidedAugust 17, 1988
Docket19842-CA
StatusPublished
Cited by23 cases

This text of 530 So. 2d 1294 (Allen v. Burnett) 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
Allen v. Burnett, 530 So. 2d 1294, 1988 WL 85630 (La. Ct. App. 1988).

Opinion

530 So.2d 1294 (1988)

Theodore James ALLEN and Kija Claire Love Allen, Plaintiffs-Appellees Appellants,
v.
Gerald L. BURNETT and Marsha Elliott Burnett, Defendants-Appellants Appellees.

No. 19842-CA.

Court of Appeal of Louisiana, Second Circuit.

August 17, 1988.
Rehearing Denied September 21, 1988.

*1295 Davidson, Nix & Arceneaux by M. Thomas Arceneaux and Mark E. Robinson, Shreveport, for Burnetts.

Evans, Feist & Mills by George H. Mills, Jr., Shreveport, for Allens.

Before HALL, MARVIN and SEXTON, JJ.

MARVIN, Judge.

In this action provoked by the foreclosure of residential and farm property sold by credit sale, the sellers and the buyers appeal a judgment, which, on the main demand, cast the buyers for $141,997 plus interest and attorney fees, and which allowed a credit on the reconventional demand in quanti minoris in favor of the buyers for $13,648 with interest. The judgment also recognized the vendor's lien or mortgage of the seller on the property and assessed costs equally to buyers and sellers.

The buyers, in 11 specifications of error, essentially assert that the "delinquent charge" provided in the mortgage note should be assessed only on each past due installment of that note, that greater damages should have been allowed in quanti minoris, and that some damages should be allowed for "wrongful seizure."

The sellers, in five specifications, contend that the buyers' action in rehibition was prescribed or was not proved, that attorney fees should be increased to the amount provided by the note, and that court costs should not have been assessed one-half to each litigant.

The trial court, noting "voluminous filings," labelled the dispute "a legal potpourri..." and concluded that buyers' reconventional demand in redhibition was "in response" to the foreclosure which sought "to offset the [sellers'] valid claim against them." These conclusions are fully supported by the record.

With some amendment with respect to attorney fees and costs, we affirm the judgment which is appealed. See Temple v. Shannon, 505 So.2d 798 (La.App. 2d Cir.1987).

FACTS

The October 1, 1981, sale of the 22-acre tract between two married couples, was *1296 negotiated primarily by the husbands, Col. Allen, a retired military officer without legal training or experience, and Mr. Burnett, a Shreveport lawyer engaged in private practice who was experienced in real estate transactions, bankruptcy, and tax law.

The Burnetts became social friends of the Allens during the negotiations of about two months duration. Burnett drafted the deed and the notes in question here and "closed" the transaction in his office. He argues that the language he used to set forth a "delinquent charge" in one note is patently ambiguous and that parol evidence of the true and common intent of Allen and himself should cause us to grant him the relief he seeks on appeal. The trial court admitted such evidence but weighed it against Burnett. Burnett's August 17, 1981, letter proposal before the sale and other correspondence between Burnett and Allen after the sale was consummated supports the trial court's judgment.

THE TWO NOTES

At closing on October 1, 1981, Burnett paid Allen $10,000, assumed the balance owed on Allen's mortgage indebtedness to the Federal Land Bank, and drafted and signed two negotiable promissory notes which were to be held by Allen. One note for $18,011 bore no interest, was unsecured, and was made payable May 1, 1988. The unsecured note represented interest that was "precalculated" or "deferred" to allow some advantage, in Burnett's opinion and Allen's understanding, under the federal income tax law.

The second note was a secured vendor's lien or mortgage note for $125,000 at 6½ percent per annum interest from date. This note was payable in installments, the first of which ($25,000) became due on April 1, 1982. The remaining installments were due in five annual payments of $20,000 each on May 1 of each of the years 1983 through 1987. The penalty provision is contained in that note. Application of the penalty or delinquent charge in the event of Burnett's failure to timely pay is much disputed here and in the lower court.

Burnett's 1981 letter proposal to Allen also sheds light on the $18,011 note. Burnett asserts that if he had timely paid the indebtedness as it became due he would have paid only the principal of the two notes ($143,011). Allen asserts that if timely payment had been made, Burnett would have paid $143,011 plus 6½ percent interest on $125,000, the interest amount of which (6½ percent on $125,000 plus the $18,011 precalculated interest) would approximate the 13 plus percent interest then being paid by banks on a certificate of deposit.

NEGOTIATIONS

According to Burnett's 1981 letter, Allen apparently had offered to sell the property for $193,725 cash ($189,000 plus one-half of the realtor's fee). Burnett proposed in his letter to pay exactly that, but on credit terms. Burnett's letter speaks of the rate of interest discussed by Allen and his banker and the fact the prime rate was above 12 percent.

We reproduce the August 17, 1981, letter:

*1297

*1298

At this juncture we observe that the consummated transaction was similar to Burnett's August 17, 1981, letter proposal, which mentioned and corresponded to Allen's prior offer. Burnett paid the $10,000 at closing and assumed the balance due on the FLB mortgage indebtedness. He combined the $25,000 "due on or before six months from occupancy" with the $100,000 due in installments, which he had proposed in the letter, into the $125,000 secured note that was executed at closing. Burnett executed the unsecured "interest" note for $18,011, but did not explain how his proposed $19,500 accrued interest on the $100,000 indebtedness was converted to the $18,011 amount of the note. Burnett calculated 6½ percent interest on the $100,000 in his proposal to be $19,500. In any event the "accrued interest" unsecured note and the 6½ percent per annum interest from date provided for in the $125,000 note approximates the then 12 plus percent prime rate mentioned in Burnett's 1981 as being discussed by Allen and his banker.

We reproduce here the two notes:

*1299

*1300

CIRCUMSTANCES AFTER CLOSING

Burnett paid on the secured note on six occasions, none of which was timely, a total of $75,000, as shown by this tabulation of the due dates, amounts, and payment dates:

DUE DATE    AMOUNT     PMT.MADE        AMOUNT
4/1/82     $25,000    12/17/82        $25,000
5/1/83     $20,000     8/19/83        $ 5,000
                      12/05/83        $10,000
                       2/10/84        $15,000
5/1/84    $20,000     11/16/84        $10,000
                      02/12/85        $10,000

Burnett and Allen were apparently on good terms through 1982 even though the initial installment, due April 1, 1982, was not paid until 8½ months later, on December 17, 1982. In his transmittal letter of December 17, 1982, Burnett wrote the Allens:

[My wife] and I both appreciate the support you have given ... if ever we can reciprocate you have only to call anytime... Truly you are one of the only real friends we have, with a capital "Friend."

We look forward to visiting with you during the holidays ...

Burnett added this handwritten note to the typewritten letter:

P.S.

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

Related

Yellowbird Investments, L.L.C. v. Barber
87 So. 3d 970 (Louisiana Court of Appeal, 2012)
Lawrence v. Terral Seed, Inc.
796 So. 2d 115 (Louisiana Court of Appeal, 2001)
Lamson Petroleum Co. v. Hallwood Petroleum, Inc.
763 So. 2d 40 (Louisiana Court of Appeal, 2000)
Custom-Bilt Cabinet v. Quality Built Cab.
748 So. 2d 594 (Louisiana Court of Appeal, 1999)
Reno v. Perkins Engines, Inc.
754 So. 2d 1032 (Louisiana Court of Appeal, 1999)
Natali v. Froeba
735 So. 2d 30 (Louisiana Court of Appeal, 1999)
Hampton v. Hampton, Inc.
713 So. 2d 1185 (Louisiana Court of Appeal, 1998)
Noel v. Discus Oil Corp.
714 So. 2d 105 (Louisiana Court of Appeal, 1998)
Sanders v. Ashland Oil, Inc.
696 So. 2d 1031 (Louisiana Court of Appeal, 1997)
Highlands Underwriters Ins. Co. v. Foley
691 So. 2d 1336 (Louisiana Court of Appeal, 1997)
Nesbitt v. Dunn
672 So. 2d 226 (Louisiana Court of Appeal, 1996)
Amoco Production Co. v. Fina Oil & Chem. Co.
670 So. 2d 502 (Louisiana Court of Appeal, 1996)
Security National Trust v. Moore
639 So. 2d 373 (Louisiana Court of Appeal, 1994)
Martin Exploration Co. v. Amoco Production Co.
637 So. 2d 1202 (Louisiana Court of Appeal, 1994)
Northshore Ins. Agency, Inc. v. Farris
634 So. 2d 867 (Louisiana Court of Appeal, 1993)
Doyal v. Pickett
628 So. 2d 184 (Louisiana Court of Appeal, 1993)
Karageorge v. Cole
565 So. 2d 502 (Louisiana Court of Appeal, 1990)
Dixie Savings & Loan Ass'n v. Kornegay
557 So. 2d 1044 (Louisiana Court of Appeal, 1990)
Afco Steel, Inc. v. Tobi Engineering, Inc.
893 F.2d 92 (Fifth Circuit, 1990)
TL James & Co. v. Kenner Landing, Inc.
550 So. 2d 1378 (Louisiana Court of Appeal, 1990)

Cite This Page — Counsel Stack

Bluebook (online)
530 So. 2d 1294, 1988 WL 85630, Counsel Stack Legal Research, https://law.counselstack.com/opinion/allen-v-burnett-lactapp-1988.