Dugal & Trahan, Ltd. Pension Trust v. Roy O. Martin Lumber Co.

510 So. 2d 1356, 1987 La. App. LEXIS 9792
CourtLouisiana Court of Appeal
DecidedJune 26, 1987
DocketNo. 86-705
StatusPublished
Cited by1 cases

This text of 510 So. 2d 1356 (Dugal & Trahan, Ltd. Pension Trust v. Roy O. Martin Lumber 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
Dugal & Trahan, Ltd. Pension Trust v. Roy O. Martin Lumber Co., 510 So. 2d 1356, 1987 La. App. LEXIS 9792 (La. Ct. App. 1987).

Opinion

WILLIAM A. CULPEPPER, Judge Pro Tern.

On December 28, 1972, the Globe Corporation (Globe) sold to Roy 0. Martin Lumber Company, Incorporated (Martin) certain standing timber located on a 160 acre tract of land located in St. Landry Parish, Louisiana as evidenced by a “Timber Deed” executed between the parties. The pertinent terms of the agreement were that Martin would obtain the right to remove all hardwood and cypress trees 14” and larger at the stump for a two year period, and that for an additional sum of $300.00 per year, the time in which Martin would be allowed to remove the timber could be extended for an additional two years. Martin exercised its rights of extension, thereby extending its right to remove the timber through December 31, 1977.

On September 19, 1977, Globe and Martin agreed on a further extension of indefinite duration of Martin’s right of removal of the specified timber. Under this agreement, beginning January 1, 1978, Martin would pay $500.00 per year in advance of each year of extension, such extension rights subject to termination on December 31st at least 30 days after Globe would notify Martin their extension would terminate; therefore, in order for Globe (or its successor) to prevent Martin from exercising another year of extension, it would have to notify Martin at least 30 days in advance of the next calendar year. Martin paid the advance payment for the year 1978, entitling them to an extension through the year 1978. The September 19, 1977 extension agreement was recorded in the conveyance records of St. Landry Parish, thereby subjecting subsequent purchasers of the 160 acre tract to the conditions of the extension.

On November 4, 1977, Globe sold the tract affected by the timber deed and the extension to Dugal & Trahan Ltd. Pension Trust (the Trust). Following this purchase, negotiations were entered into between Dr. James S. Dugal, a trustee of the Trust, and John F. Munsterman, an agent of Martin, for a subsequent extension agreement for the removal of the timber (The Trust-Martin extension). The negotiations between Dr. Dugal, as trustee of the Trust, and Martin occurred simultaneously with negotiations between Martin and Dr. Dugal concerning the acquisition of a hunting lease by the Lucky 13 Hunting Club on certain other property owned by Martin. The [1358]*1358Lucky 13 Hunting Club, of which Dr. Du-gal was a member, had sought to acquire a hunting lease on the Martin owned property for some time. The agreement finally reached was that Martin would grant a five year hunting lease in favor of the Lucky 13 Hunting Club on Martin’s property for certain specified annual rental payments in exchange for a five year extension of Martin’s timber cutting rights on the Trust’s newly acquired property. Although both the Trust and Martin agree that both the Trust-Martin timber extension agreement and the hunting lease were to be for a five year period, the date on which the Trust-Martin extension was to commence is in dispute. Martin contends that the extension was to commence January 1, 1979, as evidenced by the fact that Martin had already been granted an extension for the year 1978 by Globe, the Trust’s predecessor in title. Dugal contends that the agreement between the parties was that both the Trust-Martin timber extension and the hunting lease were to commence on the same date, January 1, 1978.

The negotiations between the Trust and Martin resulted in Martin’s attorney, Alex Andrus III, drafting a timber extension agreement for a term of five years at a stipulated rental of $500.00 per year. The agreement signed by the Trustees of the Trust on March 16, 1978 showed a commencement date of January 1, 1978 for the timber extension. Subsequently, the agreement was signed by Martin on April 20, 1978 and recorded in conveyance records of St. Landry Parish on April 27, 1978. Apparently, the commencement date on the agreement was changed from January 1,1978 to January 1,1979 after signing by the Trustees of the Trust, and the commencement date at the time of signing by Martin and at recordation read January 1, 1979.

Martin made a payment of $500.00 for the first year of the Trust-Martin extension on March 14, 1978. Checks were subsequently sent to the Trust by Martin for annual $500.00 payments on November 26, 1979, November 14, 1980, November 24, 1981, and November 22, 1982. Also, a check was issued on July 31, 1981 to replace the November 14, 1980 check which was misplaced.

When Dr. Dugal, as trustee, received the November 22,1982 check, he did not cash it or deposit it in a Trust account but kept it. Meanwhile, Martin, believing that the timber extension was good through the year 1983, planned on cutting timber during the last year of the timber extension.

In September 1983, Dr. Dugal learned that Martin had commenced cutting timber on the Trust’s property about the same time that Martin sent the Trust a letter requesting deposit of Martin’s November 22, 1982 extension check. Martin ceased cutting timber when it learned of the Trust’s position that the extension commenced January 1, 1978 and ended December 31, 1982; however, it resumed cutting the timber when it discovered that the recorded document contained a January 1, 1979 commencement date which would have meant that the extension would not have expired until December 31,1983. The Trust thereafter filed suit against Martin seeking triple damages for cutting trees without the Trust’s consent in violation of La.R.S. 56:1478.11 and seeking an injunc[1359]*1359tion preventing Martin from entering their land and cutting trees. Martin filed a third party action against their attorney, Alex Andrus III (Andrus), alleging that Andrus’ negligence was the sole cause of any liability attributable to Martin.

Following a trial on the merits, the trial court rendered judgment on January 6, 1986 dismissing the Trust’s demands against Martin and dismissing Martin’s third party demand against Andrus and Insurance Corporation of America (erroneously referred to in the trial court judgment as Insurance Company of North America), Andrus’ professional liability insurer. Plaintiff, the Trust, now appeals from the trial court judgment dismissing its claim against Martin. Defendant, Martin, asks this court to affirm the trial court’s dismissal of the Trust’s claim against them, but, in the event that this court does not affirm the trial court’s dismissal of the Trust’s suit, Martin asks this court to reverse the dismissal of its claim against Andrus for breach of fiduciary duty. Martin also asks this court to increase the award to Martin’s expert witness from $968.00 to $1,568.00. Third party defendant, Andrus, asks this court to affirm the trial court judgment.

EFFECTIVE DATE OF THE TRUST-MARTIN EXTENSION AGREEMENT

The trial court, finding that there was an agreement between the Trust and Martin, gave the following written reasons for judgment, which we adopt as our own:

“Having considered the evidence and briefs of counsel, I find that there was a meeting of the minds between Dr. Dugal and Mr. Munsterman, who acted on behalf of the Trust and Martin, respectively, for a five-year extension beginning January 1, 1979, during which to cut the timber which Martin had acquired of Globe. Martin was the owner of the timber and had previously paid Globe for the right to cut it in 1978. Furthermore, the evidence shows that at the time the agreement was negotiated, Dr. Dugal knew that Martin already had the cutting rights for 1978. There is no reason why Martin would have contracted to buy again that which it already owned. Too, under LSA-C.C.

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Related

Dugal & Trahan, Ltd. v. Roy O. Martin Lumber Co.
513 So. 2d 824 (Supreme Court of Louisiana, 1987)

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Bluebook (online)
510 So. 2d 1356, 1987 La. App. LEXIS 9792, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dugal-trahan-ltd-pension-trust-v-roy-o-martin-lumber-co-lactapp-1987.