Benton v. Clay

123 So. 3d 212, 2013 WL 4008615, 2013 La. App. LEXIS 1582
CourtLouisiana Court of Appeal
DecidedAugust 7, 2013
DocketNo. 48,245-CA
StatusPublished
Cited by20 cases

This text of 123 So. 3d 212 (Benton v. Clay) 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
Benton v. Clay, 123 So. 3d 212, 2013 WL 4008615, 2013 La. App. LEXIS 1582 (La. Ct. App. 2013).

Opinion

GARRETT, J.

_JjIn this case involving the purchase of land, the defendants, Calvin Clay, Sr., and Bessie Clay, appeal from trial court decisions in favor of the plaintiff, Deborah Lee Benton, and the third party defendant, Hudson Lane Title Company, LLC (“Hudson Lane”). The trial court found that Mr. Clay knowingly and intentionally made misrepresentations regarding Ms. Benton’s ability to participate in the land purchase which breached their agreement to purchase the property as co-owners. The trial court granted specific performance in favor of Ms. Benton and awarded her damages and attorney fees. The trial court further ruled that the Clays’ third party demands against Hudson Lane for damages were barred by prescription and that the Clays had no cause of action against Hudson Lane for contribution or indemnity. For the following reasons, we affirm in part and reverse in part the trial court judgments.

FACTS

Ms. Benton and Mrs. Clay were lifelong friends. Ms. Benton’s mother was Mrs. Clay’s godmother. The Clays live near Ms. Benton’s mother in Union Parish. Plum Creek Southern Timber, LLC (“Plum Creek”), owned a 29-acre tract of land adjacent to the property occupied by Ms. Benton’s mother. Plum Creek announced plans to sell this and other property at an auction. Ms. Benton and Mr. Clay were both interested in buying the land. They saw each other at the auction orientation meeting held in June 2007, and agreed to purchase the property together. Because other parties were interested in the tract, they thought they had a better chance of winning the bid if they combined their resources.

|2On June 28, 2007, Ms. Benton and Mr. Clay were successful in submitting the winning bid for the property, $31,900. Hudson Lane, a title company wholly owned by the law firm of Hudson, Potts & Bernstein, LLP, represented Plum Creek at the auction. Stephen North, an attorney for Hudson Lane, and Rita Tucker, a paralegal, handled the paperwork. Hudson Lane had Ms. Benton and Mr. Clay sign a “Purchase and Sale Agreement” with Plum Creek which obligated them to buy the property. They each paid 1/2 of the required $3,190 in earnest money and executed an earnest money deposit escrow agreement. They evidenced their agreement to the form of the non-warranty deed that would be used at closing by initialing a form deed. Hudson Lane set the closing for July 27, 2007. Mr. Clay was to be the contact person for the two buyers and furnished his contact information to Hudson Lane. Correspondence from the title company concerning closing costs was addressed to both Mr. Clay and Ms. Benton and sent to Mr. Clay’s address in Sterling-ton. Mr. Clay realized he would be out of town for a family reunion on the original closing date and requested that the closing be rescheduled. Ms. Benton was never notified of the new date, August 15, 2007.

On July 18, 2007, Ms. Benton received $18,000 from her 401 (k) account to fund her portion of the purchase price and in[217]*217formed Mr. Clay that she had her money.1 Mr. Clay made arrangements to borrow money from Marion State Bank to fund his part of the purchase price. He sent a |Rloan application to Ms. Benton and suggested that she contact the bank about getting a loan for the purchase. Although Ms. Benton had her funds readily available, she did talk to personnel at the bank and was informed that she did not qualify for a loan.

Ms. Benton alleged that Mr. Clay falsely informed Hudson Lane that she did not have the money to complete the sale of the property and would not be participating in the closing. On August 15, 2007, Mr. and Mrs. Clay appeared at the closing and purchased the property in their names. They borrowed the money for the entire purchase price and executed a mortgage. They then proceeded to have timber cut from the property and received approximately $12,000 from timber sales.2 They sold dirt from the property and allowed the property to be used for storage purposes. The amounts derived from these activities were never established at trial.

After learning that the Clays had purchased the property, Ms. Benton went to Hudson Lane with her $18,000 check and inquired as to what had transpired. Mr. North advised he was under the impression that Ms. Benton could not afford the property and was not interested in concluding the sale. Mr. North immediately called Mr. Clay and informed him that he needed to come into the office to straighten out the matter. Mr. Clay was noncommittal and nonresponsive. His refusal to resolve the matter amicably resulted in this protracted litigation.

Ms. Benton filed a “Petition for Damages and to Set Aside Sale” against the Clays on April 3, 2008. She sought to rescind the conveyance of |4the property from Plum Creek to the Clays, in order that the property could be conveyed to her and the Clays pursuant to the “Purchase and Sale Agreement,” together with monetary damages. The Clays admitted that the “Purchase and Sale Agreement” had been executed. However, they claimed that Ms. Benton failed to meet the deadline for the scheduled closing and failed to provide her share of the funds for the sale.

On February 7, 2011, after the matter had been set for trial, the Clays filed a pleading entitled “Supplemental Answer: Reconventional Demand and Cross-Claim,” which added an additional party— Hudson Lane.3 The Clays asserted claims for damages against the title company and also sought contribution and indemnity if judgment was rendered in favor of Ms. Benton and against the Clays. They also asserted a reconventional demand against Ms. Benton for malicious prosecution.

Ms. Benton denied all allegations lodged against her in the new pleadings, urged that the Clays be ordered to convey a 1/2 interest in the property to her, and requested damages, attorney fees, and costs. Hudson Lane filed numerous exceptions, including exceptions of peremption and prescription, no cause of action and no [218]*218right of action.4 A motion to sever the trial of the demands between Ms. Benton and the Clays from the Clays’ demands against Hudson Lane was filed by Ms. Benton. She pointed out that the upcoming trial on the main demand had been scheduled as a first |ssetting. She alleged that the Clays filed their demands against Hudson Lane in violation of the scheduling order and as a dilatory tactic. She contended that Hudson Lane’s exceptions could not be disposed of before the trial date and awaiting a ruling on the exceptions would unduly delay the proceedings. Hudson Lane consented to the severance and the trial court granted the motion to sever.

Trial was held in May and September 2011. In detailed written reasons for judgment, the trial court found that Mr. Clay knowingly and intentionally misrepresented to Hudson Lane that Ms. Benton was not able to obtain funds and was not going forward with the transaction. The trial court found that it was uncontrovert-ed that the parties had entered into an agreement to purchase the property jointly. Mr. Clay breached this agreement through his bad faith and fraud and the plaintiff was entitled to specific performance and damages. The trial court signed a judgment in favor of Ms. Benton and against the Clays, for specific performance of the agreement to jointly purchase, in equal portions, an undivided 1/2 interest each in and to the property. The trial court ordered the Clays to do all things necessary to have Ms. Benton recognized as the record owner of a 1/2 interest in the property free and clear of any mortgages, liens, or other encumbrances.

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Cite This Page — Counsel Stack

Bluebook (online)
123 So. 3d 212, 2013 WL 4008615, 2013 La. App. LEXIS 1582, Counsel Stack Legal Research, https://law.counselstack.com/opinion/benton-v-clay-lactapp-2013.