Davis v. Coregis Ins. Co.

789 So. 2d 7, 0 La.App. 3 Cir. 00475, 2000 La. App. LEXIS 3456, 2000 WL 1875838
CourtLouisiana Court of Appeal
DecidedDecember 27, 2000
Docket00-00475
StatusPublished
Cited by21 cases

This text of 789 So. 2d 7 (Davis v. Coregis Ins. Co.) 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
Davis v. Coregis Ins. Co., 789 So. 2d 7, 0 La.App. 3 Cir. 00475, 2000 La. App. LEXIS 3456, 2000 WL 1875838 (La. Ct. App. 2000).

Opinion

789 So.2d 7 (2000)

Raymond C. DAVIS
v.
COREGIS INSURANCE COMPANY, et al.

No. 00-00475.

Court of Appeal of Louisiana, Third Circuit.

December 27, 2000.
Writ Denied March 30, 2001.

*10 Larry A. Roach, Larry A. Roach, Inc., Lake Charles, LA, Counsel for Plaintiff-Appellant.

Mitchell Evans, II, DeRidder, LA, Counsel for Plaintiff-Appellant.

Allen L. Smith, Jr., Plauche, Smith, & Nieset, Lake Charles, LA, Counsel for Defendants-Appellees.

Court composed of Chief Judge DOUCET, YELVERTON, and SAUNDERS, Judges.

SAUNDERS, Judge.

Mr. Raymond Davis filed suit against his attorney, Mr. H. Gayle Marshall, and Mr. Marshall's insurer, Coregis Insurance Company (Coregis), on March 23, 1999. After both Defendants failed to answer, Mr. Davis entered a preliminary default on April 15, 1999, against them. On April 21, 1999, Mr. Davis confirmed the default, and the trial judge entered a judgment against both Defendants. The Defendants filed a timely motion for a new trial, which the trial court granted. Mr. Davis filed the instant appeal seeking a review of that decision. After reviewing the record, we affirm.

FACTS

Mr. Marshall represented Mr. Davis as his attorney in a number of matters over a period of approximately eight years. Sometime in January or February of 1996, Mr. Davis asked Mr. Marshall to represent him in the purchase of a 679 acre tract located in Calcasieu Parish from the Farm Credit Bank of Texas (Farm Credit). Farm Credit had purchased the property through bankruptcy proceedings from Charles William Heinen and Lenora Jeanne Heinen. As part of that representation, Mr. Davis requested that Mr. Marshall perform a title examination of the tract.

Mr. Davis obtained abstracts from an attorney who had represented the owner of the neighboring property, Mr. Lawerence Heinen, and brought them to Mr. Marshall's office for his examination. Based on the information presented in the abstracts, Mr. Marshall rendered an oral opinion to Mr. Davis that good title appeared to be vested in Farm Credit through its purchase of the acreage during the bankruptcy sale. Mr. Marshall then examined the purchase agreement provisions. In February 1996, Mr. Marshall prepared a draft of an act of sale and sent it to Farm Credit for its examination.

Mr. Marshall testified that sometime later, he received a call from an attorney with Farm Credit. During this conversation, she advised him that Farm Credit wanted to use their own act of sale form which contained specific clauses and provisions. Mr. Marshall testified that the attorney told him there was a competing claim to 85 acres of the tract. The attorney said this competing claim was evidenced by the Calcasieu Parish Assessor's double assessment of the 85 acres. The attorney identified the other party assessed as LaBokay Corporation.

Farm Credit then sent Mr. Marshall a draft of the act of sale it wanted to use. In this act of sale, a portion of the property would be sold with warranty, while the 85 acre tract which had been doubly assessed, *11 would be sold without warranty. Mr. Marshall testified that he told Mr. Davis of that fact and that he showed him a copy of the draft of the Farm Credit act of sale. Mr. Davis testified, however, that he had never seen a copy of the act of sale prior to March 11, 1996.

After learning of the possible double assessment, Mr. Marshall went to the Calcasieu Parish Assessor's Office and confirmed that there was a double assessment in favor of LaBokay Corporation. Mr. Marshall testified that he could see no legal basis for the assessment in the public records, so he assumed it had to be on the basis of adverse possession. Furthermore, Mr. Davis testified that he also went to the assessor's office and confirmed the double assessment before executing the sales contract.

During their conversations prior to the sale, Mr. Marshall testified that he told Mr. Davis that there was an adverse claim to the 85 acres in favor of LaBokay Corporation. Mr. Marshall also testified that he told Mr. Davis that he still believed, based on the public records, that Farm Credit had valid title to the 85 acres. Furthermore, Mr. Davis testified that Mr. Marshall told him of LaBokay's adverse claim prior to his purchase of the tract. Mr. Davis also testified that Mr. Marshall said repeatedly that he would receive clear title to the entire 679 acres.

Thereafter, Mr. Marshall drew up the title insurance policy for the property to be purchased by Mr. Davis. In that title policy, the portion sold under warranty was included within its coverage, while the 85 acres sold without warranty was excluded. Mr. Marshall testified that he had drafted the title insurance policy prior to the date of the closing, March 11, 1996.

The act of sale provides that the property being sold is in two separate parcels described by Exhibits A and B attached to the act of sale. The act of sale recites that Property A, less and except 85 acres in the extreme northwest corner of Section 20, was sold to Raymond and Mary Davis with full warranty of title.

However, as to the 85 acres described as Property B, the act recites:

That Grantor hereby quitclaims, transfers, conveys and delivers to Grantee without any warranty of title whatsoever, even as to Grantor's own acts and even as to the return or reduction of the purchase price of any portion thereof all of Grantor's right, title and interest, if any, and whatsoever, in the following described property (hereinafter referred to as "Property B"), which is more fully described on the attached Exhibit B made a part hereof for all purposes, TO HAVE AND TO HOLD unto Grantee and Grantee's heirs, successors and assigns forever.
. . . .
That Grantor has prior to the execution of this Act of Sale and hereby does again disclose to Grantee that Property B is currently assessed by the assessor for Calcasieu Parish, Louisiana in the name of Charles W. Heinen, et ux, and a third party LaBokay Corporation. That Grantee declares that it fully understands and accepts this disclosure. That Grantee acknowledges that the foregoing disclaimer is of the essence of this sale and the sale would not have been made otherwise.
That Grantee hereby acknowledges and agrees that Grantor warrants only such title for Property A as acquired by the Grantor by virtue of an Act of Sale authorized by an Order of the United States Bankruptcy Court for the Western District of Louisiana, Lafayette Opelousas Division, in and for Case No. 92-50252-07, IN RE: Charles William *12 Heinen, XXX-XX-XXXX, and Lenora Jeanne Heinen, XXX-XX-XXXX ...

Mr. Davis testified that neither he nor his wife read the act of sale or any of the other documents they signed to complete the purchase of the 679 acre tract. Mr. Davis testified that he and his wife signed the act of sale on March 11, 1996, and then filed it with the Clerk of Court's Office in Calcasieu Parish on the same day.

Mr. Davis admitted that he became aware of an "adverse claim" just prior to the closing. On March 11, 1996, Mr. Marshall gave Mr. Davis a letter advising him that there was an adverse claim to approximately 80 acres of the tract to be purchased, and he advised Mr. Davis of specific actions he could take to protect himself against an adverse possession claim. The letter stated:

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Bluebook (online)
789 So. 2d 7, 0 La.App. 3 Cir. 00475, 2000 La. App. LEXIS 3456, 2000 WL 1875838, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-coregis-ins-co-lactapp-2000.