Bordelon v. Bordelon

180 So. 2d 855
Louisiana Court of Appeal·Decided November 30, 1965·No. 1565·Published·Cited by 13 cases

Opinion

180 So.2d 855 (1965)

Leonard BORDELON (Jr.), Plaintiff-Appellant,
v.
Ulysses L. BORDELON et al., Defendants-Appellees.

No. 1565.

Court of Appeal of Louisiana, Third Circuit.

November 30, 1965.

*856 James A. McGraw, and Ben C. Bennett, Jr., Marksville, for plaintiff-appellant.

Dupuy & Dupuy, by Marc Dupuy, Jr., and Charles A. Riddle, Jr., Marksville, for defendants-appellees.

Before TATE, FRUGE, and HOOD, JJ.

TATE, Judge.

The plaintiff, Leonard Bordelon, (Jr.), was born in 1941, after his father had died. By this petitory action, this posthumous child seeks recognition of his one-sixth ownership by inheritance of the property owned by his father at the time he died. The plaintiff's suit was dismissed upon exceptions, and he appeals.

The plaintiff alleges that he was deprived of his inheritance by fraudulent design and certain irregularities in the 1940 succession sale of the entire estate property to his father's three major sons (before he himself was born). Made defendants are the plaintiff's two elder brothers still alive, the heirs of the now-deceased third brother, and also several additional parties who had subsequently purchased from these three original succession-sale purchasers or their assigns.

The principal issue of this appeal is whether this 1963 suit to annul the 1940 *857 succession sale is prescribed under LSA-Civil Code Article 3543 providing a curative prescription as to defects in court-ordered sales.

1. The defendants' exception of prescription under Civil Code Article 3543.

LSA-C.C. Art. 3543 provides that judicial sales may not be attacked for "informalities of legal procedures" after five years from the time of the sale by minors or interdicts, or after only two years by persons not under legal disability.[1] The trial court sustained the defendants' exception of prescription based upon this code article.

The relatively short prescriptive period of this article is provided to create confidence in judicial sales by protecting good faith purchasers from litigation concerning technical irregularities connected with such sales; this prescription is intended to cure only relative nullities (informalities), however, not absolute nullities (matters of substance) which go to the essence of the sale and affect the substantive rights of the parties with interest in the property sold. Phoenix Building and Homestead Ass'n v. Meraux, 189 La. 819, 180 So. 648; Thibodeaux v. Thibodeaux, 112 La. 906, 36 So. 800. The cited decisions note that the matters of substance in making a public sale involve (a) the interested parties being afforded equal opportunities and (b) the property being offered so as to bring as fair a sale price as can be expected under the circumstances. See Comment, Prescription against Defects in Judicial Sales in Louisiana, 13 Tul.L. Rev. 615 (1939).

In the present case, the exception was tried on the face of the pleadings. The plaintiff's petition incorporated by reference the entire 1940 probate proceedings in the succession of Leonard Bordelon (Sr.).

The plaintiff's father, Leonard H. Bordelon (Sr.), died on May 27, 1940. He was survived by his third wife (who was pregnant with the plaintiff at the time), and also by the three major sons of a first marriage and two other heirs then minors. Four days after his father died, the eldest son, Edwin, applied for appointment as administrator of his father's estate. An inventory was taken three days later (June 3, 1940), which appraised 17 items of real estate as well as fairly extensive movable property for a total value of $3,422, and which showed estate debts of $1,775. In August, 1940, the administrator applied to sell all of the remaining succession assets in order to pay the debts of the estate. The court ordered the sale by the sheriff at public auction, with the terms of the sale to be cash and for a price not less than two-thirds of the inventory value of the properties sold.

On September 21, 1940, the immovable property (16 scattered tracts, comprising over 300 acres)[2] was offered and sold in globo. These lands were purchased in globo by the three major heirs of the decedent *858 (Edwin, Ulysses, and Mitchel) for $915. This purchase price was only fifty-eight per cent of the $1,570 inventory value of the property (see inventory at Tr. 108, Items 1 through 6, 8 through 17 of movable property).

In contending that the plaintiff's 1963 suit to annul the 1940 sheriff's sale of the estate property is prescribed, the defendants principally rely upon jurisprudence holding that under LSA-C.C. Art. 3543 a purchaser at a succession sale is ordinarily protected against subsequent claims by minors that the succession sale was unnecessary or invalid on account of irregularities, by the decree of the court vested with jurisdiction ordering the sale to pay the succession debts, Arceneaux v. Cormier, 175 La. 941, 144 So. 722; Rizzotto v. Grima, 164 La. 1, 2, 113 So. 658; Thibodaux v. Barrow, 129 La. 395, 56 So. 339. See also Sun Oil Co. v. Roger, 239 La. 379, 118 So.2d 446. This jurisprudence, however, pertains to invocation of the article's prescription in favor of good faith purchasers at the succession sale.

A. Purchasers in bad faith.

Here, however, under the allegations of the petition the plaintiff's three brothers purchasing at the public sale were not themselves in good faith, for allegedly they had entered into a collusive venture to defraud their coheirs and to sell the entire estate property to themselves for far less than its true value: by having the estate property appraised in the estate inventory at less than one-half of its actual value (Article 11); by purchasing it in globo, knowing that its true value was considerably more than twice the amount for which they bought it (Article 13); by buying in the property for less than two-thirds of its inventory value, which was also at a price less than half of the actual value of the property (Article 12); and by selling in globo the sixteen scattered tracts of real estate[3] in order to discourage competitive bidding (Articles 15 and 17).

The benefit of prescription under LSA-C.C. Art. 3543 is available only to purchasers in good faith. This prescription curing irregularities in a public sale is not available to a purchaser in legal bad faith; in such latter instance, it is immaterial whether the defects are relative or radical nullities because the bad faith purchaser at the succession sale is in neither case shielded by the article's prescription. In re Union Central Life Insurance Co., 208 La. 253, 23 So.2d 63, 72, discussed at 7 La.L.Rev. 238-240 (1947). See also Comment, cited above, at 13 TulL.Rev. 616; Comment, Just Title in the Prescription of Immovables, 15 Tul.L.Rev. 436, 439-440 (1941).

Under the allegations of the present petition, accepted as true here where the exception is tried on the face of the pleadings, the three brothers purchased at the sheriff's sale pursuant to a conspiracy to defraud their coheirs and thus were not purchasers in good faith. Therefore, for present purposes, neither they nor their heirs can invoke the prescription of LSA-C.C. Art. 3543; and, if prescription is not available to prevent nullification of their title founded on the succession sale, then under the allegations accepted as true for present purposes, the sale to them of estate lands is subject to being nullified for their fraudulent conduct in connection with the sale, including their alleged conspiracy to stifle competition and chill the bidding. LSA-C.C. Art.

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