Bourgeois v. Landry

583 So. 2d 36, 117 Oil & Gas Rep. 454, 1991 La. App. LEXIS 1834, 1991 WL 107146
CourtLouisiana Court of Appeal
DecidedJune 18, 1991
DocketNo. 89-1193
StatusPublished
Cited by2 cases

This text of 583 So. 2d 36 (Bourgeois v. Landry) 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
Bourgeois v. Landry, 583 So. 2d 36, 117 Oil & Gas Rep. 454, 1991 La. App. LEXIS 1834, 1991 WL 107146 (La. Ct. App. 1991).

Opinions

YELVERTON, Judge.

This appeal arose from a judgment in a declaratory action seeking the interpretation and effect to be given an authentic act styled “Correction Deed”, dated May 21, 1985, and executed by John Carroll Bourgeois, Jr., and his wife, Vickie Arceneaux Bourgeois, and Belin Landry, Jr. The act purported to convey a mineral interest from the Bourgeoises to Landry. The district court after a trial, finding that the instrument did not meet the formal requirements of either a correction instrument or a sale, and that it could not be treated as a compromise, declared it a nullity, and ordered it erased from the public records. Landry appealed. We reverse. We find that the act was a valid contract between the parties translative of title, and that it should be given effect.

FACTS

Parol evidence was freely admitted at the trial and the facts were fully explored. On May 27, 1983, John Carroll Bourgeois, Jr., and Belin Landry, Jr., entered into a “Buy and Sales Agreement”. Bourgeois was to exchange his 74.121 acres of land in Jefferson Davis Parish for 18 acres of land owned by Landry in Calcasieu Parish, with some additional cash and credit consideration to be paid by Landry on account of the difference in the values of the respective tracts. At the time of the “Buy and Sales Agreement”, the 74.121 acre tract was burdened with a mineral servitude that was due to expire on November 21, 1983. Landry insisted on getting the minerals, and would not agree to the exchange otherwise. The value negotiations leading to the exchange reflected separate consideration for the minerals. Because the servitude was going to expire soon, Landry expected to get 100% of the mineral servitude in the exchange, or soon thereafter.

The 74.121 acre tract was a part of a mineral servitude affecting some 3,720 acres in Jefferson Davis Parish. This was a family servitude established by John Carroll Bourgeois, Jr., and the other family members by an act of partition executed on November 21, 1973. Bourgeois owned a 3/40ths interest in the family servitude, which meant that he owned only a 3/40ths interest in the minerals attributable to the 74.121 acre tract, when the buy and sell agreement was signed.

Had this servitude expired on November 21, 1983, Bourgeois could have conveyed to Landry 100% of the minerals attributable to the 74.121 acres. Before the expiration date, however, Bourgeois and the co-heirs went to Jennings and executed and recorded a Reinscription of Mineral Interest and an Act Interrupting the Running of Prescription. This had the effect of renewing the family mineral servitude for another 10 years.

The Act of Exchange and Vendor’s Lien was executed by Bourgeois and Landry on December 27, 1983. For the 74.121 acres, Landry exchanged his 18 acres, paid Bourgeois $11,715 in cash, and gave Bourgeois his promissory note for $18,285 payable at the rate of $160.46/month for 30 years. The total consideration, as recited in the exchange deed, amounted to $110,000 for the 74.121 acres. As agreed, Bourgeois conveyed to Landry in this exchange all of his minerals in the 74.121 acres.

Because of the reinscription of the servitude, Landry acquired only a 3/40ths interest in the minerals, which was the propor[38]*38tional amount of the servitude, attributable to the 74.121 acres, that Bourgeois owned in the servitude affecting the whole of the family partitioned property. As we will explain later in this opinion, this court finds that this result was contrary to the intention of the parties. Both parties understood that Landry expected to get 100% of the minerals, that this was part of the evaluation placed on the property for the exchange, and that Landry would not have agreed to the exchange unless he was going to get 100% of the minerals.

The problem was mentioned from time to time thereafter, but the decision to remedy the problem was not made until a year and a half later. Bourgeois, needing money for a vacation, asked Landry if he would prepay the balance on the mortgage note. Landry agreed, on condition that Bourgeois convey to him a mineral interest equivalent to what he would have received in 1983 if everything had gone according to plan. When Bourgeois agreed to this, Landry had his lawyer draw up the papers. On May 21, 1985, Bourgeois and his wife Vickie went to the lawyer’s office. They picked up the instrument that had been prepared by the lawyer, and took it to lunch with them to read. After lunch they brought it back to the lawyer, signed it, got their money, and left.

The instrument that they signed was styled “Correction Deed”, and it contained the following language:

In the above referred to Exchange Deed no mention was made of the execution by John Carroll Bourgeois, Jr. of a Reinscription of Mineral Interest dated June 7, 1983 recorded in Conveyance Book 554 at page 583, records of Jefferson Davis Parish, Louisiana, and an Ac-knowledgement Interrupting Mineral Prescription dated November 18,1983 recorded in Conveyance Book 564 at page 107, records of Jefferson Davis Parish, Louisiana, when as a matter of fact it was the intention of both parties that John Carroll Bourgeois, Jr. convey to Belin Landry, Jr. all of his oil, gas and other minerals and mineral royalties in and under the property conveyed to Belin Landry, Jr., together with all oil, gas and other minerals and mineral royalties wherever located owned by John Carroll Bourgeois, Jr., attributable to his ownership of the above described 74.121 acres, through his execution of the above referred to Reinscription of Mineral Interest and Acknowledgement Interrupting Mineral Prescription.
That in view of the foregoing and for the same consideration originally recited, the parties have agreed to reform and correct the aforementioned deed so as to convey and John Carroll Bourgeois, Jr. and Vickie Arceneaux Bourgeois do hereby grant, bargain and sell unto Belin Landry, Jr. all minerals in and under the land conveyed to him by the Exchange Deed recorded in Conveyance Book 566 at page 618, records of Jefferson Davis Parish, Louisiana, together with all minerals or mineral rights including but not limited to oil, gas and other mineral royalties wherever located, acquired by, acknowledged as owned by or reinscribed to John Carroll Bourgeois, Jr. by that certain Reinscription of Mineral Interest recorded in Conveyance Book 554 at page 583, records of Jefferson Davis Parish, Louisiana and that Acknowledgement Interrupting Mineral Prescription recorded in Conveyance Book 564 at page 107, records of Jefferson Davis Parish, Louisiana, attributable to the ownership of John Carroll Bourgeois, Jr. of the 74.121 acres described above.

In 1987 Bourgeois and his wife filed this suit for a declaratory judgment. They alleged that the “Correction Deed” was intended to reform and correct the exchange deed regarding the minerals, but that the correction deed erred. They alleged that what was intended was only the conveyance to Landry of such mineral title in the 74.121 acres which Landry might, subsequent to the date of the “Correction Deed”, acquire in that property only. Landry answered the suit praying for judgment in his favor declaring that the Bourgeoises by the “Correction Deed” of May 21, 1985, conveyed to him a right, title and interest in the family servitude equal to what he would have owned had he acquired 100% of [39]*39the minerals attributable to his ownership of the 74.121 acres.

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Bluebook (online)
583 So. 2d 36, 117 Oil & Gas Rep. 454, 1991 La. App. LEXIS 1834, 1991 WL 107146, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bourgeois-v-landry-lactapp-1991.