Bonnett v. Mize

556 So. 2d 228, 1990 WL 5359
CourtLouisiana Court of Appeal
DecidedJanuary 24, 1990
Docket21086-CA
StatusPublished
Cited by10 cases

This text of 556 So. 2d 228 (Bonnett v. Mize) 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
Bonnett v. Mize, 556 So. 2d 228, 1990 WL 5359 (La. Ct. App. 1990).

Opinion

556 So.2d 228 (1990)

Leola BONNETT, et al., Plaintiffs-Appellees,
v.
Nancy Louise MIZE, et al., Defendants-Appellants.

No. 21086-CA.

Court of Appeal of Louisiana, Second Circuit.

January 24, 1990.
Writ Denied April 6, 1990.

*229 Hunter, Scott, Blue, Johnson & Ross by James E. Ross, Jr., Monroe, for defendants-appellants, Nancy Louise Mize, Milton Mize, Jr., Donald Wayne Mize, and Bonnie Lou Mize.

John S.C. Massey, West Monroe, for plaintiffs-appellees, Leola Mize Bonnett, Idell Mize Cotton, Mary Marie Mize Eady, and Eunice Virginia Mize Wilbanks.

Before JONES, SEXTON and NORRIS, JJ.

SEXTON, Judge.

This civil appeal arises out of the district court's annulment of two simulated sales of immovable property and the rendition of a money judgment against appellants, the widow and heirs of the vendee, Milton James Mize. We reverse in part, amend in part, and affirm in all other regards.

FACTS

In 1977, the Social Security Administration advised James Albert Mize and Mary Talbird Mize (decedents) that their social security benefits were in jeopardy because of significant land holdings. Mrs. Mize owned a 40-acre tract of separate property and the couple owned a 60-acre tract of community property which served as their homestead.

On May 6, 1977, Mrs. Mize executed a sale document wherein she "sold" her 40 acres of separate property to her son, Milton James Mize. It is undisputed that no consideration was ever paid for the tract of land. Contemporaneously with the execution of the simulated sale document, Mrs. Mize executed a counter letter wherein she donated the same tract of land to Milton Mize, reciting the love and affection she held for her son as the consideration for the donation.

On July 7, 1977, the decedents executed a sale document wherein they "sold" the 60 acres of community property to Milton James Mize and his wife, Nancy Louise Mize. Once again, no consideration was paid. And again, a counter letter was executed contemporaneously with the sale wherein the decedents attempted to donate the 60 acres to Milton and Nancy Mize.

Some time after these two transactions, Milton Mize sold the 40-acre tract donated to him by his mother for $34,000. Thereafter, Milton and Nancy Mize executed a mineral lease over the 60 acres and received over $90,000 in lease and royalty payments over several years.

*230 Following the death of their elderly parents, the siblings (appellees) of Milton Mize (now deceased) approached Nancy Mize, his widow, regarding a division of the 60 acres. There is some dispute as to what discussion or agreements may have transpired, but negotiations reached a standstill when Nancy Mize refused to agree to the proposed division. Her deceased husband's siblings then brought suit against her and the children of her marriage with Milton Mize (appellants), seeking to annul the two transactions and seeking the recovery of the monies received by Milton and Nancy Mize in the sale of the 40 acres and the lease of the 60 acres.

Following extensive discovery and trial on the merits, the district court ruled in favor of the appellees, annulling the two transactions and ordering appellants to pay the administratrix of the decedents' estates $128,046.68 for those monies received from the sale of the 40-acre tract and the lease of the 60-acre tract.

Appellants now bring this appeal urging a reversal or modification of the district court judgment.

AFFIRMATIVE DEFENSE

In their first argument, appellants contend that the district court erred in not permitting them to amend their answer to raise the affirmative defense of donation to plaintiffs' petition to set aside the sales.

Appellants' Second Supplemental Answer, filed on the day of trial, alleges that the sales which are the subject of appellees' lawsuit were valid donations. Upon objection, the trial court disallowed this filing. Appellees argue that they were not prepared to defend such a claim and that to permit such a pleading to be filed would have constituted an abuse of discretion.

Appellees' original petition, filed almost a year before trial, alleges in part that the transactions "are invalid and should be set aside and declared null and void ... [because] said deeds are simulations or donations in disguise impinging on plaintiffs' legitime as forced heirs."

A defendant's answer must set forth any matter constituting an affirmative defense. LSA-C.C.P. Art. 1003, 1005. An affirmative defense raises new matter which, assuming the allegations in the petition to be true, constitutes a defense to the action and will have the effect of defeating plaintiff's demand on its merits. Webster v. Rushing, 316 So.2d 111 (La.1975); Keller v. Amedeo, 512 So.2d 385 (La.1987). The new matter raised must be one not raised by plaintiff's petition. Mashburn Agency, Inc. v. Universal Engineering & Supply, Inc., 451 So.2d 113 (La.App. 3rd Cir. 1984). The general purpose of article 1005 in requiring that certain defenses be affirmatively pled is to give fair notice of the nature of the defense and thereby prevent a last minute surprise to the plaintiff. Norman v. City of Shreveport, 141 So.2d 903 (La.App.2d Cir. 1962).

The affirmative defense of donation raised in appellants' Second Supplemental Answer was one foreshadowed by appellees' original petition, wherein they alleged that the sale deeds were "donations in disguise." In addition to appellees' own allegation that the deeds were donations, numerous references to the alleged donations, either express or implied, can be discovered from a cursory review of the pleadings and filings contained in the record.[1]

*231 Given the copious references to the counter letters and claims and denials that the land which was transferred in the two simulated sales had been subsequently donated, we believe the amended answer which appellants filed on the day of trial was more in the nature of housekeeping than the raising an affirmative defense for the first time. Accordingly, we conclude that the district court's refusal to permit the Second Supplemental Answer to be filed was an abuse of discretion.

Because of our conclusion above that the district court abused its discretion in refusing to permit appellants to file the Second Supplemental Answer which pleaded the affirmative defense of donation, we must similarly conclude that the district court erred in refusing to consider the counter letters executed on the same day as the simulated sales. Therefore, for purposes of resolving the remaining legal issues presented in this appeal, we will consider the counter letters.

EFFECT OF THE VARIOUS DOCUMENTS

Appellants argue that, even if no money was paid for the properties, the decedents intended to donate the properties to Milton James Mize, as is evidenced by the counter letters executed contemporaneously with the simulated sale documents. Appellees argue that neither of the counter letters meet the requirements of the form of donations and, further, that the wills of the decedents evidence that they never intended to divest themselves of title to the property, only that they intended to create the appearance of having transferred the property in order to qualify for government benefits.

Our Supreme Court neatly summarized the applicable law in situations such as this in Owen v. Owen, 336 So.2d 782, 786 (La. 1976):

In our law, a simulation is a transfer of property which is not what it seems. Simulations are of two types: pure simulations, and disguised transfers.

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Cite This Page — Counsel Stack

Bluebook (online)
556 So. 2d 228, 1990 WL 5359, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bonnett-v-mize-lactapp-1990.