Bankers Life Co. v. Shost

518 So. 2d 563, 1987 WL 3324
CourtLouisiana Court of Appeal
DecidedDecember 8, 1987
Docket87-CA-284
StatusPublished
Cited by7 cases

This text of 518 So. 2d 563 (Bankers Life Co. v. Shost) 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
Bankers Life Co. v. Shost, 518 So. 2d 563, 1987 WL 3324 (La. Ct. App. 1987).

Opinion

518 So.2d 563 (1987)

BANKERS LIFE COMPANY
v.
Pauline Regotti, Wife of/and John A. SHOST and Martha Johnson, Wife of/and Dewey Johnson.

No. 87-CA-284.

Court of Appeal of Louisiana, Fifth Circuit.

December 8, 1987.

*564 Stephen G. Sklamba, Metairie, for defendant/appellant.

Before BOWES, WICKER, and GOTHARD, JJ.

WICKER, Judge.

This appeal arises from an action to rescind a sheriff's sale by Freedlander, Inc, The Mortgage People (Freedlander). Freedlander is the second mortgagee of immovable property which was seized following a suit by executory process on behalf of Bankers Life Company (Banker's), the first mortgagee. The property was and sold at a sheriff's sale to Deborah Triche (Triche). Freedlander sought to enjoin Harold L. Montegut, Jr., Clerk of Court for St. John the Baptist Parish, from recording the Sheriff's Proces Verbal Deed, and to restrain and enjoin Triche from alienating or encumbering the property. Freedlander also sought to have the sheriff's sale annulled. The trial court recognized the validity of the sale and denied Freedlander relief, ordering that the sheriff file the Proces Verbal and distribute the proceeds of the sale. From that adverse judgment Freedlander now appeals. We affirm.

On January 21, 1986, Bankers filed a petition for executory process against Pauline Regotti, wife of/and John A. Shost and Martha Johnson, wife of/and Dewey Johnson. Bankers was the holder by assignment of a promissory note in the original principal sum of $16,400.00 executed on May 1, 1963 by Pauline Regotti Shost and John A. Shost in favor of Carruth Mortgage Corporation. The May 1, 1963 note was secured by an act of mortgage recorded May 3, 1963 on the following described property:

That certain piece or portion of ground, together with all the buildings and improvements thereon, and all the rights, ways privileges, servitudes, appurtenances and advantages thereunto belonging or in anywise appertaining, situated in the State of Louisiana, in the Parish of St. John the Baptist, in Godchaux Community, Unit No. 1, Riverlands, being a resubdivision of a portion of Laplace Plantation, in Sections 24 and 25, Township 11 South, Range 7 East, Southeastern District, East of the Mississippi River, designated as Lot No. 150-B, bounded by Parlange Loop, Ellerslie Avenue, Chatsworth Drive, the east boundary of the subdivision, and a 100 foot drainage servitude, all in accordance with the survey of J.J. Krebs & Sons, dated March 11, 1963, which said lot commences at a distance of 138.72 feet from the first point of curvature of Parlange Loop into Ellerslie Avenue, and measures thence 60.01 feet front on Parlange Loop, by a depth along the side line nearer Ellerslie Avenue of 108.94 feet, by a depth along the opposite side line of 110 feet, by a width in the rear of 60 feet. Lot No. 150-B is composed of portions of original Lots Nos. 150 and 151.

Although Martha Johnson and Dewey Johnson did not execute the note, Bankers believed that they were the current owners of the property described above. The writ of seizure and sale was issued on January 23, 1986. It was served on all party defendants on February 6, 1986 in connection with Banker's suit for executory process.

*565 On August 31, 1984 Martha Cox, wife of/and Dewey Verrell Johnson, executed a promissory note in favor of Freedlander in the original principal sum of $123,770.40. The Freedlander note was secured by an act of mortgage on the above property which was recorded on September 5, 1984.

On January 24, 1986, Freedlander, in a separate proceeding instituted a suit for executory process against the Johnsons.

The sale of the property took place on Wednesday, March 26, 1986, at 11 a.m. The sale was advertised on February 20, and March 20, 1986. On March 26, 1986, the property was sold to Triche in the amount of $10,411.00.

Evidently Freedlander was aware of the Bankers' suit for executory process as well as the seizure and upcoming sheriff's sale. Freedlander, through one of its foreclosure administrators, was advised by an attorney for Bankers that the sheriff's sale was scheduled for April 2, 1986. Freedlander relied on that information and was not present for the sale. It then filed the present action to rescind the sale.

Freedlander now specifies the following errors:

1. That the trial court erred in failing to set aside the sale on the basis of the actions of the employee of the attorney for Bankers, such actions necessitating that the sale be declared null pursuant to L.S.A.—C.C. Art. 2619;

2. That the trial judge erred in failing to conclude that the sale was null since it was not conducted at 11 a.m. rather than at 10 a.m., as required by law;

3. That the trial court erred in failing to annul the sale since Triche did not pay the purchase price timely in accordance with Louisiana law, and

4. That the trial court erred by failing to conclude that Freedlander's failure to receive notice of the sale violated due process.

FRAUD:

Freedlander contends that the sheriff's sale should be annulled due to fraud by Bankers in failing to reveal to Freedlander the correct date of the sheriff's sale.

The testimony at trial regarding the allegations of fraud set out the following: Donna Turner (Turner), a foreclosure representative employed by Freedlander, testified that she called Radar Jackson, attorney for Bankers, and instead reached his brother, Attorney Craig Jackson (Craig). Craig advised her that the sheriff's sale would take place on April 2. When Turner was then asked regarding any notes taken in connection with her work, Triche's counsel objected on the grounds of hearsay. Neither Rader Jackson nor Craig testified. The trial judge sustained the objection regarding Turner's notes.[1] Thereafter, Freedlander's counsel proffered Turner's notes and questioned her regarding these. He does not raise on appeal the trial court's refusal to allow the notes into evidence.

Turner further testified that it was customary for Freedlander to contact first mortgage holders in order to ascertain the status of the first mortgage. She indicated that she had contacted Mr. Jackson's office on other occasions and had always been given the correct date.

However, on April 2 she learned that the sale had already taken place on March 26. When she spoke to Mr. Jackson about the discrepancy in the dates, he told her that he was sorry for the "mixup."

Freedlander does not seek damages from Bankers, instead it seeks to have the sheriff sale annulled.

As explained in Ellerd v. Williams, 404 So.2d 1271, 1273 (La.App. 2nd Cir.1981):

A final judgment can be annulled if it was obtained by fraud or ill practices. L.S.A.-C.C.P. art. 2004 [footnote omitted]. A sheriff's sale pursuant to judgment ordering executory process is subject to annulment for fraud or ill practices *566 by the creditor and adjudicates where no third rights have intervened.

Fraud is defined in L.S.A.-C.C. art. 1953 as:

a misrepresentation or a suppression of truth made with the intention either to obtain an unjust advantage for one party or to cause a loss or inconvenience to the other. Fraud may also result from silence or inaction.

Furthermore, as provided by L.S.A.-C.C. art. 1957:

Fraud need only be proved by a preponderance of the evidence and may be established by circumstantial evidence.

Freedlander asserts that the furnishing of the incorrect date prevented it from appearing at the sale and thus constituted fraud.

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Cite This Page — Counsel Stack

Bluebook (online)
518 So. 2d 563, 1987 WL 3324, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bankers-life-co-v-shost-lactapp-1987.