Davis v. Demars

159 So. 634, 1935 La. App. LEXIS 176
CourtLouisiana Court of Appeal
DecidedMarch 4, 1935
DocketNo. 1438.
StatusPublished

This text of 159 So. 634 (Davis v. Demars) 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. Demars, 159 So. 634, 1935 La. App. LEXIS 176 (La. Ct. App. 1935).

Opinion

ELLIOTT, Judge.

A. B. Davis, trading under the name A. B. Davis Association, brought suit against Oliver L. Demars and Moses J. Demars to- have a certain act in authentic form called by the parties a sale of land from Oliver L. Demars to Moses J. Demars, declared to be a simulation, and, if not a simulation, then a sale made in fraud of creditors. The price of the purported sale is stated in the act to be $1,-000, of which $845.02! is said to have been, paid in cash; and in payment of the balance, to wit, $154.98, Moses J. Demars assumed the payment of a mortgage said to exist on the property for that amount. The act in question was duly recorded in the conveyance records of Livingston parish.

Oliver L. Demars and Moses J. Demars, appearing through the same counsel, filed an answer, in which they deny the averments of simulation and fraud alleged in the petition of the plaintiff, and pray that his demand be rejected. There was. judgment in favor of the defendants as prayed for. The plaintiff has appealed.

Defendants have not favored, us with a brief in support of their defense and the judgment appealed from. The judgment says it is based on oral'reasons, as to which we have no information. The minutes show that M. O. Rownd, attorney, filed an answer in the suit for the defendants, and the note of testimony shows that he appeared as their attorney on the trial, but the answer is not signed by him nor by anybody else. The customary affidavit to the answer is signed by M. O. Rownd as attorney for the defendants. No objection to the answer having been made on the ground that it was not signed, we pass the matter and act on the case as if the answer had been duly signed.

*635 On the trial oí the case Oliver L. Demars and Moses J. Demars, in explaining the transaction between them, both testified of their own will and accord, without objection, that the $845.02, said in the act to have been paid in cash, was not paid in cash, that no money was paid, and that the $845.02 and $154.28 constituted a sum of money which Moses J. Demars had loaned to his father, Oliver L. Demars, some five or six years before the act was passed. The exact date on which the money is claimed to have been loaned cannot be determined from their testimony, but, according thereto, it must have been between five and six years previous to the date of the act which is the subject of plaintiff’s attack. The act bears date September 18, 1933. The defendants themselves unreservedly and voluntarily show, in explaining the transaction, that it was intended as a giving in payment As, under their own testimony, it was a giving in payment, it must meet the requirements of the law on that subject One of the essentials of a giving in payment is that it “is made only by delivery.” Civil Code, art. 2656. The only delivery that can be said to have existed in this case is the one provided for by the Civil Code, art. 2479, according to which the law considers delivery as always accompanying the public act which transfers the property. In the absence of any evidence offsetting this presumption, we will act on the case as if delivery took place, but the law contains another provision. Civil Code, art. 2658. When the debtor is insolvent, “the law forbids to give in payment to one creditor, to the prejudice of the others, any other thing than the sum of money due.” In this case, according to the undisputed testimony, Oliver L. Demars owes other parties besides Davis, and at the time of the transaction in question he owed more than he had property to pay, and was therefore insolvent

But we prefer to rest our conclusion and decree on another ground. We are satisfied that the act was not a giving in payment nor a sale; that it was and is nothing more than a simulation, in which there was no intent to sell or pay, the only puipose being to conceal the property of the debtor from the plaintiff and prevent, if possible, its seizure and sale to pay the judgments which the plaintiff was about to obtain against Oliver D. Demars.

We take it that the cause of this controversy is shown by the record to be four notes held by A. B. Davis, plaintiff, against Oliver L. Demars, defendant, on which he had brought suit and was pressing to judgment. One of the notes was for $240, with interest and attorney’s fees, another for $150.50, with interest and attorney’s fees, another for $90, on which there was a balance due of $55, with interest and attorney’s fees, and another for $60 on which there was a balance due of $43.85, with interest and attorney’s fees. These notes, counting interest and attorney’s fees, made an aggregate amount upwards of $500. These suits were all filed during September and November, 1933. In two or three days after the first two suits were filed, Moses J. Demars called on Davis and seemed to be angry with him for having sued his father. After discussing the suits, he left, and within two or three days thereafter the act was passed from Oliver L. Demars to Moses J. Demars which is the object of this suit. The law provides that “Fraud, like every other allegation, must be proved by him who alleges it, but it may be proved by simple presumptions, or by legal presumptions, as well as by other evidence. The maxim that fraud is not to be presumed, means no more than that it is not to be imputed without legal evidence.” Civ. Code, arts. 1848, 1849, 2288.

The evidence shows that Oliver D. De-mars had no property except these two small tracts of land he claims to have! sold to Moses J. Demars, his son. The testimony is that he had no other land, and, if he owned any movable property, rights, or credits, the evidence does not indicate it. And when a man, pressed with debts which he is unable to pay, makes disposition of all his property in one transaction to a member of his family, one of his household, his act is looked on with suspicion.

The record shows that Oliver L, De-mars bought the parcel of land containing 14.99 acres from E. T. Oallom on August 19, 1912, for $225. Of this amount $115 was paid in cash, and the balance on terms of credit. This was about twenty-one years previous to the transaction between him and Moses J. Demars. He bought the tract containing 80 acres from W. M. Mitchell for $2,400 cash on July 1, 1926, which was but little more than seven years previous to the so-called sale from him to Moses J. Demars. The titles show that Oliver L. Demars paid out $2,625 in buying these farms, but he ostensibly transfers them to his son in payment at a valuation of $1,000, which was $1,600 less than he had paid for same. No evidence was introduced to show that the farms had depreciated in value or that anything, such as timber or improvements, had been removed therefrom. Moses J. Demars testifies that the property was worth only the amount for which he took it in payment at the time of the transaction *636 in question; that the sum for which he took the property in payment was more than his father could have gotten out of it if he had sold it; that there was no sale for it, etc.

“Q. What I want to know is wasn’t that $1,000.00 an insufficient price, for that land? A., I don’t know.
“Q. Is that what you thought it was worth then or did you think it was worth more than that? A. That is all I thought it was worth at the time.”

According to his testimony, he had advanced his father between $2,000 and $2,500 some years before, and it had never been repaid. Moses J.

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159 So. 634, 1935 La. App. LEXIS 176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-demars-lactapp-1935.