DEROUEN v. Nelson

32 So. 3d 1079, 9 La.App. 3 Cir. 467, 2010 La. App. LEXIS 368, 2010 WL 785403
CourtLouisiana Court of Appeal
DecidedMarch 10, 2010
Docket09-467
StatusPublished
Cited by7 cases

This text of 32 So. 3d 1079 (DEROUEN v. Nelson) 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
DEROUEN v. Nelson, 32 So. 3d 1079, 9 La.App. 3 Cir. 467, 2010 La. App. LEXIS 368, 2010 WL 785403 (La. Ct. App. 2010).

Opinion

SAUNDERS, Judge.

liThis case involves interpretation of a contract that does not involve any factual findings by the trial court as to whether acceptance to an irrevocable offer is effective if the offeree failed to give the offeror any notice of the acceptance. The trial court, under La.Civ.Code art. 1934, found that the language of the purported contract necessitated that the buyer/offeree must give the seller/offeror notice of his acceptance in order for that acceptance to be effective.

We affirm, finding that the general rule of La.Civ.Code art. 1934 was not abrogated by the language of the purported contract. Further, we deny the buyer/of-feree’s request for attorney’s fees and the seller/offeror’s request for damages for frivolous appeal.

FACTS AND PROCEDURAL HISTORY:

Troy Edward Derouen (Derouen) was renting property via an oral lease from Leo Nelson (Nelson) when the parties entered in talks for Derouen to purchase the property from Nelson. Thereafter, Der-ouen went to Mynex Lending Services, which is a company that assists borrowers in obtaining financing to purchase property.

Mynex advised Derouen that a written agreement was necessary to purchase immovable property. Mynex prepared a document in order for Derouen to purchase the property from Nelson. The document provides, in pertinent part:

OFFER: In the event this offer is not accepted by the Seller herein above described by 2-21-06 (DATE) 12 PM AM/PM (TIME) this offer shall be deemed revoked.
*1081 [[Image here]]
CONTRACT: This is a legally binding contract when signed by both Seller and Buyer. READ IT CAREFULLY. If you do not understand the effect of any part seek legal advice before signing. Buyer has read and acknowledged receipt of a copy of this offer. This agreement and any supplement, addendum or modification relating hereto, including any photocopy or facsimile thereof, may be executed in two or more | ^counterparts, all of which shall constitute one and the same writing.

Nelson signed the purported contract on February 20, 2006, and noted the date by his signature. Derouen claims to have signed the purported contract prior to 12PM on February 21, 2006, but failed to note this next to his signature. Further, Derouen admitted that neither he nor My-nex ever sent Nelson a fully executed copy of the document.

A closing on the sale was first scheduled for March 8, 2006. Prior to that closing, Nelson indicated that he would not appear at the closing and was not going to sell the property to Derouen. Thereafter, Der-ouen sent written notice to Nelson stating that he still wanted to purchase the property and that a closing was scheduled for March 15, 2006. Again, Nelson did not attend the scheduled closing.

Derouen filed suit against Nelson seeking to enforce the document as a contract to sell the property, and seeking to recover attorney’s fees under the terms of the purported contract. Nelson denied that there was ever a contract and filed a re-conventional demand against Derouen for matters not pertinent to this appeal.

On April 21, 2008, a trial on the merits was conducted, and the matter taken under advisement. By written reasons for judgment dated May 8, 2008, the trial court ruled in favor of Nelson, denying all relief sought by Derouen. Derouen filed a motion for a new trial, but this motion was denied. Derouen then filed this appeal alleging two assignments of error.

ASSIGNMENTS OF ERROR:

1. The trial court erred in finding that for Derouen’s acceptance to be effective, it must have been received by Nelson, or a person authorized to receive acceptance, no later than 12:00 PM on February 21, 2006.
2. The trial court erred in finding that because the evidence does not reflect that Nelson was notified or in possession of Derouen’s acceptance within the time | .¡stated in the purported contract, the acceptance was not effective and no contract of sale was formed between the parties.

ASSIGNMENT OF ERROR NUMBERS ONE AND TWO:

In his first assignment of error, Derouen contends that trial court erred in finding that in order for his acceptance to be effective, it must have been received by Nelson, or a person authorized to receive acceptance, no later than 12:00 PM on February 21, 2006. In his second assignment of error, Derouen contends that the trial court erred in finding that because the evidence does not reflect that Nelson was notified or in possession of Derouen’s acceptance within the time stated in the purported contract, the acceptance was not effective. Derouen’s two assignments of error posit the same question: does the language of the purported contract necessitate that Nelson receive Derouen’s acceptance to his irrevocable offer in order for that acceptance to be effective? If the answer is in the affirmative, then the rest of Derouen’s issues argued in this brief are pretermitted, as Derouen admitted that he failed to give Nelson his acceptance prior *1082 to the 12PM deadline on February 21, 2006.

When a trial court’s interpretation of a contract is not based upon any factual findings, but, rather, is based upon a review of the contract’s language, the manifest error standard of review does not apply. Conoco, Inc. v. Tenneco, Inc. By and Through Tennessee Gas Pipeline Co., 524 So.2d 1305 (La.App. 3 Cir.1988), writ denied, 525 So.2d 1048 (La.1988). A finding regarding whether it was necessary for notice of Derouen’s acceptance to be given to Nelson, as per the language of the purported contract, is not a finding based upon any fact. Thus, the manifest error standard of review is inapplicable to these assignments of error, and we will conduct a de novo review of the purported contract to interpret its meaning regarding this | tissue.

“Interpretation of a contract is the determination of the common intent of the parties.” La.Civ.Code art. 2045. ‘When the words of a contract are clear and explicit and lead to no absurd consequences, no further interpretation may be made in search of the parties’ intent.” La. Civ.Code art. 2046.

Louisiana Civil Code Article 1927, in pertinent part, states, “A contract is formed by the consent of the parties established through offer and acceptance.” “An offer that specifies a period of time for acceptance is irrevocable during that time.” La.Civ.Code art. 1928. “An irrevocable offer expires if not accepted within the time prescribed in the [La.Civ.Code art. 1928].” La.Civ.Code art.

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Bluebook (online)
32 So. 3d 1079, 9 La.App. 3 Cir. 467, 2010 La. App. LEXIS 368, 2010 WL 785403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derouen-v-nelson-lactapp-2010.