Box v. May

50 So. 2d 692, 1951 La. App. LEXIS 585
CourtLouisiana Court of Appeal
DecidedFebruary 8, 1951
DocketNo. 7573
StatusPublished

This text of 50 So. 2d 692 (Box v. May) 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
Box v. May, 50 So. 2d 692, 1951 La. App. LEXIS 585 (La. Ct. App. 1951).

Opinion

HARDY, Justice.

This is a suit in which plaintiff seeks judgment in the sum of $2,633.19 to which he alleges himself to be entitled as the balance of the proceeds of a sale of certain real estate made by 'him as owner thereof. The defendants are named as Lawrence L. May & Son, a commercial partnership, Lawrence L. May, Sr. and Lawrence L. May, Jr., the individual members thereof; Helen R. Lee, an employee of said partnership; and Charles W. Frazier, the purchaser of the property in question.

Plaintiff, Joel C. Box, alleges that he was the owner of certain particularly described property in Bossier Parish, Louisiana, on which was located- a combination home and store building; that defendant, Charles W. Frazier, was interested in the purchase of the property and that the consideration and terms were agreed upon as being a total purchase price consideration of $4,250, upon - which plaintiff was to allow the said Frazier a credit of $500 for certain work and installations to be performed and made by the latter. The balance of $3,750 was to be paid $1,400 in cash and $2,350 to be represented by vendor’s lien mortgage. It was contemplated between the -parties, and -unquestionably the consummation of the negotiations was predicated upon negotiating the vendor’s lien note and the payment -of the principal sum thereof, namely $2,-.350, to plaintiff, the vendor.

On or about March 29, 1948, plaintiff and ■the defendant, Frazier, contacted the defendant, Miss Helen R. Lee, manager of -the large loan department of Lawrence L. May & Son. They were introduced by Miss Lee to Mr. May, Sr., whom they acquainted with their desire to negotiate a loan on the Bossier Parish property. Mr. May was receptive to the proposition and on the morning of March 30, 1948, he and Miss Lee personally inspected the property for the purpose of appraisal and promptly advised the parties that the loan -could be handled. Thereupon Box and Frazier repaired to the offices of the May Company, where Miss Lee, a Notary Public, prepared a credit deed reciting a consideration of $4,250, payable $1,900 cash and the balance of $2,350 in one note of the purchaser, the detailed provisions of which note are immaterial to the matters here under consideration. The credit deed was signed by plaintiff, Box, who shortly thereafter left the May offices for the purpose of returning to his work in the employ of the Texas & Pacific Railway Company at or near Boyce, Louisiana.

The credit deed, as yet unexecuted by the vendee, Frazier, was left in the possession and custody of Miss Lee. It is undisputed that Miss Lee at the time was acting in a dual capacity, as Notary Publi-c and as an employee of the May concern, charged with the proper preparation and brokerage of the vendor’s lien note and distribution of the proceeds thereof.

The processing of the transaction, that is the examination of title, etc., was completed in the course of a reasonable period of time upon which defendant, Frazier, the vendee of the property, was notified. On the morning of April 14, 1948 at or about the hour of 9:00 A. M. Frazier presented himself in the May offices and there executed the credit deed before Miss Lee as Notary. Meanwhile Miss Lee had arranged for the brokerage of the note and the purchase thereof by one of the firm’s clients.

Admittedly it had heen agreed that out of the proceeds of the sale a first mortgage note on the property involved, which note was owned by the Peoples Bank & Trust Company of Minden, Louisiana, should be liquidated. Accordingly a check of Lawrence L. May & Son, Agents, in the sum of $1,116.81, payable to the Peoples Bank & Trust Company, was issued on date of April 14, 1948. This check was transmitted in person 'by Miss Lee sometime during [694]*694the forenoon of April 14th to the Peoples Bank, from which she received delivery of the mortgage note which she presented for cancellation by the Clerk and Ex-Of-ficio Recorder of Mortgages of Bossier Parish at Benton, Louisiana, sometime during the afternoon of the same day.

Coincidentally with the preparation of the check above described another check of Lawrence L. May & Son, Agents, was prepared in the amount of $991.74, which check was made payable to- Orarles W. Frazier, who, it must be borne in mind, was the purchaser of the property.

The facts above narrated in all substantial and . material particulars were either admitted or conclusively established. But other alleged and important facts are subject to such violent dispute that they must be considered in a distinct and separate category.

First, it is to be noted that plaintiff contends that he depended upon the defendant, Helen R. Lee, to protect him by collecting the $1,400 cash consideration from Frazier, the purchaser, in addition to the proceeds of the $2,350 note remaining after the payment of the mortgage note held by the Peoples Bank & Trust Company of Minden. Indisputably the facts are that Miss Lee not only did not collect any cash consideration from Frazier, but that after paying the Peoples Bank & Trust Company she deducted the sum of $241.45, representing various charges, costs, attorney’s fees, a finance fee of $117.15, that is 5% of the total amount, and an insurance premium, and finally, delivered a check in the amount of $991.74, representing the balance after the above deductions from the $2,350 mortgage note, into the possession of Charles W. Frazier. It is further indisputably established that Frazier endorsed the check, which was made payable to him, and converted a substantial portion of the funds received to his own use and delivered nothing to Box.

Surely these incidents, regardless of responsibility therefor, compounded a tragedy of errors by reason of which this plaintiff, who was originally the owner of the property, appears to have been the only sufferer, for the result of the entire transaction was that Box was divested of title to his property and the sole benefit which he received therefrom was the payment of an obligation to the Minden Bunk slightly in excess of $1,000. Otherwise no benefit accrued to him from the purported consideration of $4,250.

It is further established without dispute that the May client, one Balistrella, the-purchaser of the Frazier mortgage note, receiving no payments from Frazier, foreclosed upon the subject property. Additionally it appears that certain repair and material liens had been filed against the property representing amounts -due for the very work for which Frazier had received the $500 concession on the purchase price from Box.

Plaintiff predicated his claims for recovery from the several party defendants involved; against Helen R. Lee on the ground of a breach of trust; against Lawrence L. May & Son, Lawrence L. May, Sr. and Lawrence L, May, Jr., as the principals, for whom Miss Lee was the agent and employee, and, of course, against Frazier on the ground of total failure of consideration.

After trial on the merits there was judgment rejecting plaintiff’s claims against all parties defendant save and except Charles W. Frazier, who did not contest plaintiff’s claims, and against whom judgment was rendered in the full sum of $2,633.19. This, judgment against Frazier was made subject to a credit of $991.74 which had been, deposited in the Registry of the Court,, prior to judgment, by Frazier.

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Bluebook (online)
50 So. 2d 692, 1951 La. App. LEXIS 585, Counsel Stack Legal Research, https://law.counselstack.com/opinion/box-v-may-lactapp-1951.