Cenac v. Hart

741 So. 2d 690, 1999 WL 188196
CourtLouisiana Court of Appeal
DecidedApril 7, 1999
Docket98-01679
StatusPublished
Cited by7 cases

This text of 741 So. 2d 690 (Cenac v. Hart) 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
Cenac v. Hart, 741 So. 2d 690, 1999 WL 188196 (La. Ct. App. 1999).

Opinion

741 So.2d 690 (1999)

Martin J. CENAC, Jr., Wild Well Control, Inc., Blowout Tools, Inc. and Patrick J. Campbell, Plaintiffs-Appellees,
v.
Peggy Jean HART, Defendant-Appellant.

No. 98-01679

Court of Appeal of Louisiana, Third Circuit.

April 7, 1999.

*691 D.S. Fitzgerald, Jr., Lafayette, for Martin J. Cenac, Jr.

Robert Lane Cole, Lafayette, for Peggy Jean Hart.

G. Tim Alexander, III, Lafayette, for Blowout Tools, Inc., et al.

John M. McCollam, James Louis Weiss, New Orleans for Wild Well Control, Inc.

BEFORE: DOUCET, C.J., SAUNDERS AND SULLIVAN, JUDGES.

SAUNDERS, Judge.

The two errors set forth by the appellant are first, that the trial court erred in granting appellees' exception based on La. R.S. 10:8-319, Louisiana's former statute of frauds, and second, that the trial court erred in dismissing appellant's claim of detrimental reliance. The appellees set forth a claim of error based on the trial court's dismissal of appellees' exception of no right or cause of action based upon illegal or illicit consideration.

FACTS

On May 18, 1985, Martin J. Cenac, III (hereinafter Cenac) and Peggy Jean Hart (hereinafter Hart) were married. On April 30, 1985, Hart signed a marriage contract allegedly after a promise of half of Cenac's interest in stock of Blowout Tools, Inc. (hereinafter BTI). BTI is an oil services corporation incorporated in Texas in 1984. It is alleged that Cenac, at the time of incorporation of BTI, was granted an equal share of stock with all other founding members. This marriage contract waived any community property claims either might have against each other through the marriage. Cenac was to put all of the BTI stock in Hart's name, so as to allegedly protect his assets from his creditors and ex-wife. On May 17, 1985, Cenac had Hart sign a counter letter stating that half of the stock belonged to Cenac, even though the stock was in Hart's name. The counter letter was witnessed and notarized. The stock was not transferred to Hart's name during the course of the marriage which ended in 1993. Cenac filed for divorce, and Hart sued for half of the BTI stock as promised by Cenac. Cenac denied ownership of any stock in BTI. Hart filed for enforcement of the oral contract and in the alternative for detrimental reliance. BTI and Patrick J. Campbell (hereinafter Mr. Campbell) were added by supplemental pleading and amended petition. Mr. Campbell was the sole stockholder of BTI according to corporate papers. BTI and Mr. Campbell then filed peremptory exceptions of no right or cause of action. The court upheld these exceptions and allowed Hart additional time to file an amended petition. Upon filing of the amended petition, BTI and Mr. Campbell again filed peremptory exceptions and added an exception of prescription. The trial court dismissed Hart's petition on the prescription exception. The court left the exception of no cause or right of action and motion for summary judgement unaddressed. On appeal, this court remanded the matter to the trial court, finding BTI and Mr. Campbell had not proven prescription.

BTI was purchased by Wild Well Control, Inc. (hereinafter Wild Well) in 1991. Hart, due to the Wild Well acquisition of BTI, claimed she had an interest in Wild Well. On December 4, 1997, Hart filed her third supplemental and amending petition. This added Wild Well as a defendant. Wild Well filed a peremptory exception of no cause or right of action and a declinatory exception of lack of jurisdiction over the subject matter. The trial judge took up *692 the appellees' motion for summary judgment and the exceptions of no right or cause of action and lack of subject matter jurisdiction. The trial court denied the no right or cause of action exception based on illegal or illicit consideration. The trial court further denied the lack of subject matter exception and denied the request of Mr. Campbell and BTI for summary judgment. The trial court did grant a no cause of action exception dismissing the case against all parties on the basis of noncompliance with La.R.S. 10:8-319 and granted the no cause of action exception as relates to the detrimental reliance claim against Cenac. Appellant now appeals the no cause of action exceptions granted by the trial court while appellees appeal only the denial of their no cause of action exception based on illegal or illicit consideration.

ANALYSIS

The first assigned error is centered on the trial court's interpretation and application of La.R.S. 10:8-319. which states:

A contract for the sale of securities is not enforceable by way of action or defense unless:
(a) there is some writing signed by the party against whom enforcement is sought or by his authorized agent or broker, sufficient to indicate that a contract has been made for sale of a stated quantity of described securities at a defined or stated price;
(b) delivery of a certificated security or transfer instruction has been accepted, or transfer of an uncertificated security has been registered and the transferee has failed to send written objection to the issuer within ten days after receipt of the initial transaction statement confirming the registration, or payment has been made, but the contract is enforceable under this provision only to the extent of the delivery, registration, or payment;
(c) within a reasonable time a writing in confirmation of the sale or purchase and sufficient against the sender under Paragraph (a) has been received by the party against whom enforcement is sought and he has failed to send written objection to its contents within ten days after its receipt; or
(d) the party against whom enforcement is sought admits in his pleading, testimony, or otherwise in court that a contract was made for the sale of a stated quantity of described securities at a defined or stated price.

The lower court, in granting its exception, relied on Morris v. Friedman, 94-2808 (La.11/27/95); 663 So.2d 19. In Morris, the former bank president sued for enforcement of a contract that required the bank to buy back his stock upon resignation. There was a separate allegation that one of the bank directors had also orally agreed to purchase the stock upon the president's resignation. The plaintiff sued in the alternative for detrimental reliance. The trial court dismissed the claims based on exceptions of no cause of action and summary judgment. On appeal to this court, the exceptions and summary judgment were upheld with the exclusion of plaintiff's claims for breach of contract against the bank and holding company and his claim of detrimental reliance against the bank, holding company and Friedman, which were remanded for trial. Prior to trial, the bank became insolvent and a receiver was appointed by the Federal Deposit Insurance Corporation. A default judgment was entered in plaintiff's favor against the bank and the holding company was voluntarily dismissed as a defendant. The trial proceeded against Friedman on detrimental reliance. The jury found all questions of fact in favor of the plaintiff on the basis of the trial court judge's instructions as to the requirements of proving detrimental reliance based on LSA-C.C. art. 1967. The trial court then relied on the findings of the jury and ruled for the plaintiff based on La.Civ.Code. art. 1967. On appeal to this court, the judgment was affirmed with an adjustment of *693 the date from which interest would be calculated. The case went to the Louisiana supreme court which reversed.

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Cite This Page — Counsel Stack

Bluebook (online)
741 So. 2d 690, 1999 WL 188196, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cenac-v-hart-lactapp-1999.