Brown v. Johnson

325 So. 2d 829, 1976 La. App. LEXIS 4198
CourtLouisiana Court of Appeal
DecidedJanuary 12, 1976
DocketNo. 10528
StatusPublished
Cited by1 cases

This text of 325 So. 2d 829 (Brown v. Johnson) 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
Brown v. Johnson, 325 So. 2d 829, 1976 La. App. LEXIS 4198 (La. Ct. App. 1976).

Opinion

BLANCHE, Judge.

This suit arises out of the sale of an automobile by the plaintiff, Jeanise Collins Brown, to defendant, Mack B. Johnson. The Nineteenth Judicial District Court granted judgment in favor of plaintiff and against defendant Johnson for the sum of $3,155.83, together with interest from date of judicial demand until paid. Plaintiff’s suit against defendant, Herman H. Stewart, Jr., was dismissed.

Johnson was granted judgment on his third party demand against third party defendant, Herman H. Stewart, Jr., in the amount of $3,155.83, together with interest from date of judicial demand until paid. All costs of the proceedings and an expert witness fee of $35 were to be paid by defendant Johnson and third party defendant Stewart.

All parties have appealed. We affirm.

The facts surrounding the aforesaid sale are as follows: Early in 1973, plaintiff and her father, John Collins, received title to a 1972 Delta 88 Oldsmobile sedan, bearing Serial No. 3L69 H2M574317, through the succession of plaintiff’s mother, Mrs. [831]*831Olivia Brazier Collins. John Collins donated his interest in the car to the plaintiff, thereby giving her the complete ownership thereof.

The automobile was mortgaged to General Motors Acceptance Corporation (GMAC) and at Mrs. Collins’ death had an outstanding balance of $4,647.82. There was a credit life insurance policy issued by Standard Life Insurance Company covering said balance. On January 30, 1973, Standard acknowledged its obligation under the insurance policy but due to a discrepancy concerning the age of Mrs. Collins they paid only $500 thereon, leaving a balance of $4,147.82. The discrepancy was subsequently corrected and the entire balance was paid. Meanwhile, the plaintiff continued the monthly payments to GMAC.

On June 24, 1973, plaintiff’s husband, Louis Brown, Jr., traveled from their home in Colorado to Baton Rouge in order to settle some affairs pertaining to the estate of Mrs. Collins and to take possession of the Oldsmobile. At that time Brown paid $354.04 to GMAC to bring the account up to current status. Prior to that payment, the loan had a balance of $3,773. Brown also contacted realtor Mack B. Johnson, one of the defendants herein, with regard to selling a house which was included in the estate. During their conversation, Johnson expressed an interest in purchasing the Oldsmobile. The conversation culminated in the signing of an agreement to purchase on June 26, 1973, by Johnson, Collins and by Brown on behalf of his plaintiff wife.

The agreement drawn up by Brown and Johnson’s secretary stated that the automobile would be transferred for the following consideration:

“Assumption
“Assumption price of $3,773.00
“In Consideration
“(1) Upon execution of Not[a]rized Bill of sale by Mr. Collins & Mrs.
Brown, Mr. Mack B. Johnson will remit the sum of $345.04 to Mr. Brown. $345.04 is the amount previously paid to GMAC to bring account up to current status in order that an assumption could be made.
“(2) The amount of the G[MAC] Note to be assumed by Mr. Johnson in-eluding the $345.04 to be returned to the Brown[s] is not to exceed [$]3,773.38, with the exception of the amount of the taxes that Mr. Johnson must pay as a buyer.
“(3) Mr. Johnson further agrees to pay Mr. Brown’s Air Fare from Baton Rouge, La., to Denver, Colorado, the nearest airport to his home in Fort Collins, Colorado.” (Exhibit P-8)

After the confection of the agreement, Johnson’s attorney, Samuel Dickens, prepared bills of sale for the parties. Collins signed one form in blank1 and Brown was given a blank form for the plaintiff to sign and return to Dickens in Baton Rouge. Brown also received $85 for airplane fare back to Colorado as per the agreement. Johnson’s employee, Herman H. Stewart, Jr., drove Brown to the airport, and at that point Brown gave physical possession of the automobile in question and its keys to Stewart. Brown explained that he was under the impression that the car would be returned to Johnson, who had just signed the purchase agreement.

On Brown’s return to Colorado, the plaintiff signed the blank form and mailed it to Dickens. In compliance with their agreement, on August 4, 1973, Johnson sent plaintiff a check for $345.04.

On August 22, 1973, when Brown was again in Baton Rouge, he discovered that in spite of the agreement there had been no assumption and the loan was $291.68 in arrears. Brown contacted Johnson concerning the arrearage and Johnson gave him a check for $291.68, assuring Brown [832]*832that the third stipulation of the agreement, the assumption, would, in fact, take place. Brown applied the check to the loan balance.

Thereafter, Standard’s credit life insurance policy paid the balance on the loan, which at the time of payment amounted to $3,155.83. Additionally, they remitted $617.17 to the plaintiff, representing payments that had been made on the note since the death of Mrs. Collins. Plaintiff also received the title marked “Paid in Full.”

Upon receipt of the title and $617.17, the plaintiff realized that no assumption had taken place since the policy proceeds were paid to GMAC rather than to her. Plaintiff’s husband then called Johnson long distance to inquire about the assumption. Johnson contended that since the mortgage had been paid off he should not have to pay the full price which they had agreed upon. As of this date, it is clear that Johnson was considering himself as the purchaser.

Thereafter, on November 21, 1973 (and unknown to the plaintiff), the blank sale form the plaintiff had signed in June was completed, transferring the ownership of the automobile to defendant Stewart rather than to Johnson. Also, the stated consideration on the form was $800 rather than the assumption balance and plane fare that was specified in the June agreement. On that same date Stewart signed a promissory note in favor of Johnson for $800.

Subsequently, the plaintiff realized that even though she had the title to the automobile she did not possess same and, furthermore, had never received the purchase price. She then sued both Johnson and Stewart for the $3,155.83 paid to GMAC by the credit life insurance policy. Alternatively, she sought rescission of the sale for nonpayment of the purchase price.

Stewart reconvened against her, seeking the $617.17 that was paid on the note subsequent to the death of Mrs. Collins.

Johnson filed a third party demand against Stewart, seeking indemnification for any loss he might suffer. However, Stewart was never served with that demand.

At the trial Mack Johnson contended that he originally intended to buy the automobile and resell it to one of his employees, Murphy Johnson, or alternatively to let Murphy Johnson buy it himself. However, Mack Johnson changed his mind, deciding that another employee, defendant Stewart, was more in need of an automobile than Murphy Johnson. Therefore, Mack Johnson finally negotiated the deal in favor of Stewart.

In spite of the clear wording of the agreement quoted above, Mack Johnson contended that he was not the real purchaser but was merely standing good for the debt since Stewart could not assume the GMAC loan due to his poor credit rating and financial condition.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Succession of Spinks v. Smothers
341 So. 2d 1201 (Louisiana Court of Appeal, 1976)

Cite This Page — Counsel Stack

Bluebook (online)
325 So. 2d 829, 1976 La. App. LEXIS 4198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brown-v-johnson-lactapp-1976.