East Tangipahoa Development Co. v. Bedico Junction, LLC

5 So. 3d 238, 2008 La.App. 1 Cir. 1262, 2008 La. App. LEXIS 1752, 2008 WL 5390680
CourtLouisiana Court of Appeal
DecidedDecember 23, 2008
Docket2008 CA 1262
StatusPublished
Cited by25 cases

This text of 5 So. 3d 238 (East Tangipahoa Development Co. v. Bedico Junction, LLC) 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
East Tangipahoa Development Co. v. Bedico Junction, LLC, 5 So. 3d 238, 2008 La.App. 1 Cir. 1262, 2008 La. App. LEXIS 1752, 2008 WL 5390680 (La. Ct. App. 2008).

Opinion

WHIPPLE, J.

| sThis matter is before us on appeal by plaintiffs from the trial court’s grant of summary judgment in favor of various defendants, dismissing plaintiffs’ claims against those defendants, and denying plaintiffs leave to file a second supplemental and amended petition naming the United States of America as defendant. For the following reasons, we affirm in part, reverse in part, and remand.

FACTS AND PROCEDURAL HISTORY

By Credit Deed dated December 19, 1997, plaintiff East Tangipahoa Development Co., L.L.C. (“East Tangipahoa Development”) conveyed to defendants David Scott Sandage and Harold H. Perrilloux an undivided 68% interest in an approximately 527-acre tract of land in Tangipahoa Parish for the purpose of the development of a golf course community. The purchase price set forth in the credit deed was $500,000.00, with East Tangipahoa Development to immediately receive $100,000.00, *241 with the remaining $400,000.00 to be paid as evidenced by a promissory note. Pursuant to the credit deed, the promissory note was payable upon the fulfillment of certain conditions, including commencement of construction of a golf course (to be developed on the remaining 32% undivided interest of the tract of land), approval of financing, and “[ajpproval of wetlands determination by Corps of Engineers.” 1

On that same date, the parties also executed an agreement (hereinafter referred to as the “Development Agreement”) whereby Sandage and Perrilloux, designated as developers, and East Tangipahoa Development | ¿agreed, as additional consideration, to a division of the proceeds from the future sale of “lots” within the development. 2

Thereafter, in November of 2001, Sand-age and Perrilloux transferred their contractual rights under the Credit Deed and the Development Agreement to Bedico Junction, L.L.C., through its managing members, Don Ayres and Wayne Glascock. The Credit Deed and the Development Agreement were then amended on November 16, 2001, by East Tangipahoa Development and Bedico Junction, to replace Sandage and Perrilloux, as vendees, purchasers, and/or developers, with Bedico Junction and to provide for certain changes with regard to the payment of additional consideration by Bedico Junction to East Tangipahoa Development, including payment of the additional sum of $150,000.00, and cancellation of the promissory note. The November 16, 2001 “Amendment to Development Agreement” also provided as follows:

14. Developer shall have 24 months from the date of this Agreement to obtain all necessary licenses, permits, or other approval from all required State and Federal agencies including without limitation, Wetland’s permit from the U.S. Corp. of Engineers, in order to proceed with the Project as defined in this Agreement. At the termination of the 24th month extending from the date of this Agreement, or upon receipt of written notice from Developers delivered to Seller that Developers are unable to obtain all required licenses or permits to proceed with the Project, whichever occurs first, and provided said 24 month period is not extended by Agreement between Seller and Developer, Seller shall have 180 days from said date to re-purchase the property purchased by Developers from Seller in that certain Amended Credit Deed, and the repurchase price to be paid by Seller to Developers shall be determined as follows:

a). Initial $100,000.00 paid to Seller at the time of the original Credit Deed.

b). $150,000.00 cash paid by Developer to Seller at the time of the execution of the Amended Credit Deed dated November 16, 2001.

|fic). Return to Developer of all Development Costs as defined in the Development Agreement including without limitation, all expert and consulting fees, attorney’s fees (“not related to litigation by and between the parties,”) interest expense, and any and all other out-of-pocket expense incurred by Developer *242 from the original purchase of the property from Seller through the date of repurchase of the property by Seller from Developers in accordance with this Agreement.

15. Should Seller fail to execute the right of re-purchase within the 180 day period provided herein, all rights, limitations and all provisions of the Credit Deed as amended and Development Agreement as amended shall terminate with no surviving rights or causes of action granted to any party herein. No disagreement or dispute between Seller and Developer as to the legitimacy of “Development Costs” to be paid by Seller to Developer shall be cause for an extension of the 90 day [sic] re-purchase period, but said amount in dispute shall be es-crowed and the parties agree to Mediate or if necessary, Arbitrate the resolution of the disputed Development Costs.

(Emphasis added).

Bedico Junction did not secure all the necessary licenses and permits within the twenty-four-month permit period following the November 16, 2001 execution of the Amendment to Development Agreement. Thereafter, by letter dated October 21, 2005, East Tangipahoa Development made demand upon Bedico Junction to exercise its right to repurchase the tract of land.

When Bedico Junction did not acquiesce in the repurchase of the tract of land, East Tangipahoa Development and Byard Edwards, Jr., as a principal of East Tangipa-hoa Development, instituted this suit against Bedico Junction, Glascock, Ayres, and Perrilloux, claiming rights of ownership to the property, seeking to exercise the option to reacquire the property, and seeking damages for the failure of the defendants to develop the property, breach of contract, and alleged attempts to defraud East | (¡Tangipahoa Development. 3 In their petition, plaintiffs averred that the Amendment to Development Agreement specifically provided that the twenty-four-month permit period for obtaining licenses and permits could be extended, that extensions had been granted, and that, at the time suit was filed, the agreement was subject to such an extension.

In response to the petition, defendants filed a motion for summary judgment, contending that East Tangipahoa Development had not timely sought to repurchase the property during the 180-day period following Bedico Junction’s failure to obtain all necessary licenses and permits in the twenty-four-month permit period provided for in the Amendment to Development Agreement. Defendants further averred that the parties had not executed a written document extending the 180-day term for repurchase, a document which the law required to be in writing as affecting immovable property, and, thus, that East Tangipahoa Development had no remaining ownership rights in the property and no remaining rights under the contracts between the parties. Accordingly, defendants contended that they were entitled to judgment in their favor as a matter of law, dismissing plaintiffs’ claims of ownership to the property and for damages.

In opposition to the motion, plaintiffs averred that in May and June of 2008, because of skepticism about Bedico Junction’s progress, East Tangipahoa Develop *243

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Bluebook (online)
5 So. 3d 238, 2008 La.App. 1 Cir. 1262, 2008 La. App. LEXIS 1752, 2008 WL 5390680, Counsel Stack Legal Research, https://law.counselstack.com/opinion/east-tangipahoa-development-co-v-bedico-junction-llc-lactapp-2008.