Dugas v. Dugas

804 So. 2d 878, 2001 WL 1665461
CourtLouisiana Court of Appeal
DecidedDecember 26, 2001
Docket01-669
StatusPublished
Cited by10 cases

This text of 804 So. 2d 878 (Dugas v. Dugas) 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
Dugas v. Dugas, 804 So. 2d 878, 2001 WL 1665461 (La. Ct. App. 2001).

Opinion

804 So.2d 878 (2001)

Elton J. DUGAS
v.
Meritia DUGAS.

No. 01-669.

Court of Appeal of Louisiana, Third Circuit.

December 26, 2001.
Rehearing Denied February 6, 2002.

Anthony Fazzio, Lafayette, LA, Counsel for Appellant: Nabbie Cahanin.

Thomas Robert Shelton, Shelton Law Firm, Lafayette, LA, Counsel for Defendants/Appellants: Meritia Dugas, AAA Answering Service.

John W. Johnson, Clanton & Johnson, Eunice, LA, Dave Tyler Johnson, Lafayette, LA, Counsel for Plaintiff/Appellee: Elton J. Dugas.

Court composed of ULYSSES GENE THIBODEAUX, BILLIE COLOMBARO WOODARD, and GLENN B. GREMILLION, Judges.

WOODARD, Judge.

Mr. Elton J. Dugas filed suit against his daughter, Ms. Meritia Dugas, on September 1, 1998, seeking the return of various immovable and movable properties, which he had transferred to her in January of 1995 to place them beyond potential judgment creditors' reach. He filed a motion *879 for summary judgment and, subsequently, she filed an exception of no right of action and a motion for summary judgment. The trial court denied her requests but granted his motion for summary judgment, returning the properties to him for a failure of consideration and defects in form in the transactions. Ms. Dugas appeals. We reverse.

* * * * * *

In 1995, Mr. Dugas attempted to transfer various immovable and movable properties, which he had acquired, to his daughter, Ms. Meritia Dugas. His admitted purpose for these transfers was to place his properties beyond the reach of potential judgment creditors, who were suing him at the time of the transfers.

After the threat, which potential judgment creditors posed, had passed, he asked his daughter to return the properties to him. When she refused, he filed suit against her. In his motion for summary judgment, dated May 19, 2000, he contended that transfers A through I were simulated sales which lacked adequate consideration and were actually disguised donations, thus, null and void for lack of proper authentic form. Furthermore, he asserted that no genuine issue of material fact exists and that he is entitled to a partial summary judgment, as a matter of law, declaring the transfer instruments to be null and void and without legal effect.

On July 20, 2000, his daughter countered by filing an exception of no right of action and her own motion for summary judgment. Her premise for both was basically the same—Mr. Dugas made these transfers for an illicit and immoral purpose; consequently, they were absolutely null, and, because he knew this when he made them, he forfeited his right to recover them. In her exception of no right of action, she seems to have reasoned that because he did not have a right to recover them, he had no interest in the cause; therefore, no right of action.

The motions and exception were scheduled for a hearing on August 31, 2000. The trial court took them under advisement, ultimately, issuing written reasons on December 15, 2000. It denied Ms. Meritia Dugas' exception of no right of action, finding that Mr. Dugas had an interest in the subject matter of the suit— the properties. It denied the daughter's motion for summary judgment after concluding that there were genuine disputed issues of material fact concerning the reason for the properties' transfers. Nevertheless, the trial court ruled on the merits when it granted Mr. Dugas' motion for summary judgment. Regarding Mr. Dugas' motion, it found that no material issue of facts existed concerning the transfers' nullity for various defects—specifically, Ms. Dugas had not furnished adequate consideration for the sales; therefore, there was no sale, and the attempted sales were not donations because of defects of form; namely, only one person and a notary witnessed the transactions, when the law requires that there be two witnesses' signatures on the instruments, plus the notary.

In its judgment, the trial court declared all transfers to be null and without legal effect, except for the property located at 309 Voorhies Street, Lafayette, No. 94-35186, which it determined to be a valid donation. Thus, in effect, it returned all properties, except for the former, to Mr. Dugas.

EXCEPTION OF NO RIGHT OF ACTION

Ms. Dugas alleged that the transfer instruments were performed for an illicit and immoral purpose; consequently, they were absolutely null, and Mr. Dugas could not recover the properties from her because of La.Civ.Code art. 2033's prohibition; *880 therefore, he does not have an interest in them and, accordingly, no right of action to recover them.

La.Civ.Code art. 2030 provides:

A contract is absolutely null when it violates a rule of public order, as when the object of a contract is illicit or immoral. A contract that is absolutely null may not be confirmed.
Absolute nullity may be invoked by any person or may be declared by the court on its own initiative.

La.Civ.Code art. 2033 states:

An absolutely null contract, or a relatively null contract that has been declared null by the court, is deemed never to have existed. The parties must be restored to the situation that existed before the contract was made. If it is impossible or impracticable to make restoration in kind, it may be made through an award of damages.
Nevertheless, a performance rendered under a contract that is absolutely null because its object or its cause is illicit or immoral may not be recovered by a party who knew or should have known of the defect that makes the contract null. The performance may be recovered, however, when that party invokes the nullity to withdraw from the contract before its purpose is achieved and also in exceptional situations when, in the discretion of the court, that recovery would further the interest of justice.
Absolute nullity may be raised as a defense even by a party who, at the time the contract was made, knew or should have known of the defect that makes the contract null.

Ms. Dugas' conclusion from La. Civ.Code art. 2033, that Mr. Dugas has no interest in the cause, would be correct only if the court had already ruled the transfers to be null. As the trial court noted, "To be successful on an exception of no right of action, the defendant must establish that the plaintiff has no interest in the subject matter of the suit or no legal capacity to proceed with the suit." However, at this point, Mr. Dugas has an obvious interest in the outcome of this litigation, since he owned the properties in question, he was a party to their transfer, and now, he is challenging whether the transfers were proper and whether he is entitled to their return. To rule otherwise, would be to deny him due process. The exception of no right of action does not apply to this situation. Essentially, the facts which Ms. Dugas alleged under this exception constitute a defense against the merits of the suit. As the trial court correctly noted, "A defendant may not use an exception of no right of action to raise a defense to the merits of the suit."

Accordingly, the trial court did not err in denying Ms. Dugas' exception.

THE MOTIONS FOR SUMMARY JUDGMENT

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Cite This Page — Counsel Stack

Bluebook (online)
804 So. 2d 878, 2001 WL 1665461, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dugas-v-dugas-lactapp-2001.