Folse v. St. Rose Farms, Inc.

165 So. 3d 104, 14 La.App. 5 Cir. 436, 2014 La. App. LEXIS 2825, 2014 WL 6686733
CourtLouisiana Court of Appeal
DecidedNovember 25, 2014
DocketNo. 14-CA-436
StatusPublished
Cited by7 cases

This text of 165 So. 3d 104 (Folse v. St. Rose Farms, Inc.) 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
Folse v. St. Rose Farms, Inc., 165 So. 3d 104, 14 La.App. 5 Cir. 436, 2014 La. App. LEXIS 2825, 2014 WL 6686733 (La. Ct. App. 2014).

Opinion

ROBERT M. MURPHY, Judge.

Lin this action to enforce a right of first refusal, plaintiff/appellee, St. Rose Farms, Inc., obtained a judgment by default against defendant/appellant, Earl A. Folse. Finding facial defects with the default judgment; we vacate the judgment and remand the matter to the trial court for further proceedings.

[106]*106FACTS AND PROCEDURAL HISTORY

On December 22, 2000, Earl A. Folse executed an Act of Sale of Property, selling 86 acres of land in St. James Parish to St. Rose Farms, Inc. (“SRF”). The Sale was recorded on January 4, 2001. The Act of Sale contained a provision in Paragraph Two, under the subheading “Declarations and Reservations:”

Vendor reserves unto himself the bat-ture portion of the Tracts I and V, lying between La. Hwy. 44 and the Mississippi River, which batture is not included in the property conveyed, and which bat-ture remains owned by Vendor. In the event Vendor hereafter receives a written offer to purchase said batture, Vend-ee shall be notified of the same and shall have thirty days to elect to match said offer and purchase said batture.

|30n October 5, 2005, Earl Folse transferred the batture property to his son, Eldred J. Folse, with consideration stated as $1,000.00. Earl Folse did not notify SRF of the sale of the batture, nor did he provide SRF with the opportunity to purchase the property at the stated price. The latter Act of Sale was recorded on October 12, 2005. Since that date, plaintiff alleges that Eldred Folse has possessed the property and paid the applicable taxes.

On August 9, 2013, SRF filed a Petition to Enforce Right of First Refusal contending that the 2000 Act of Sale required Earl Folse to notify SRF of his intention to sell the batture property and provide SRF the opportunity to purchase the property. SRF contended that Earl Folse’s failure to do so constituted grounds to rescind the October 2005 sale from Earl Folse to El-dred Folse and to permit SRF to purchase the batture property for $1,000.00.

On August 13, 2013, SRF attempted service on Earl Folse through Louisiana’s long-arm statute, La. R.S. 13:3201, et seq. The affidavit of service, executed by Wanda P. Acosta, was filed on September 9, 2013. She testified that she “prepared and mailed a letter, which included a certified copy of the Petition to Enforce Right of First Refusal.” Her affidavit further indicated that she mailed the “letter and attachments to the defendant, Mr. Earl J. Folse, 5637 Clay Ridge Rose [sic], North Las Vegas, NV 89031 by certified mail, return receipt requested, properly addressed with sufficient postage prepaid (as reflected by the receipt of the United States Post Office).” She further stated that the letter and certified copies of the documents were returned with the notation “refused.” In fact, the envelope in the record in addition to “refused,” bears notations of “attempted,” “not known,” “unable to forward,” and “return to sender.” A preliminary default was entered on December 5, 2013 on motion of SRF which alleged that Earl Folse was properly served pursuant to the long-arm provisions.

|4On April 7, 2014, the trial court took up confirmation of the default: it heard the testimony of Mark Hymel and Louis Hy-mel, President and Secretary of SRF, respectively, as to the 2000 and 2005 Acts of Sale, both entered into evidence. That same date, the trial court confirmed the default in favor of SRF and against Earl Folse, ordering that the subsequent sale between Earl Folse and Eldred Folse be rescinded and declared null and void, that the property be transferred from Earl Folse to SRF for the sum of $1,000.00, that the Clerk of Court make a marginal entry on the Instrument to reflect the Orders of the court, and that Earl Folse be cast to pay all costs.

On May 1, 2014, Earl Folse filed a motion for suspensive appeal, which was granted on May 8, 2014, on posting of $1,000.00 in security. In his appellate brief, Earl Folse asserted peremptory ex[107]*107ceptions for the first time and made seven assignments of error.

PEREMPTORY EXCEPTIONS

No cause of action;

Prescription and/or preemption; and

Failure to join an indispensable party.

ASSIGNMENTS OF ERROR

Earl Folse asserted the following assignments of error in the event this Court overrules his peremptory exceptions, above:

1. The trial court erred in finding that plaintiff was entitled to a preliminary default as citation and/or service was insufficient;
2. The trial court erred in findings of fact and finding the law and evidence in favor of plaintiff in finding that plaintiff made a prima facie case;
3. The trial court erred in rescinding the sale from Earl A. Folse to El-dred Folse;
4. The trial court erred in ordering the property to be sold to plaintiff for $1,000.00;
[5. The trial court erred in ordering the Clerk of Court to make entry in the Act of Sale from Earl A. Folse to Eldred Folse;
6. The trial court erred in assessing costs to defendant; and
7. The transfer by Earl A. Folse to Eldred Folse did not violate the terms of the previous sale to plaintiff.

REVIEW ON APPEAL

The parties do not dispute that the matter is properly before this Court. La. C.C.P. art. 2083(A) expressly provides that default judgments are appealable.1 A judgment that is rendered when there is a vice of form, such as invalid service of process, is an absolute nullity. G.R. Constr. & Renovation, LLC v. White, 14-62 (La.App. 5 Cir. 5/21/14), 142 So.3d 207. Confirmation of a default judgment obtained on'the basis of an invalid preliminary default is an absolute nullity. Collier v. Fugler, 29,457 (La.App. 2 Cir. 5/7/97), 694 So.2d 553.

The usual procedure to annul a judgment is to bring a direct action in the trial court. La. C.C.P. art. 2006. Fouchi v. Fouchi 442 So.2d 506, 508 (La.App. 5 Cir.1983), writ denied, 445 So.2d 1235 (La.1984). However, the jurisprudence recognizes that where the (default) judgment at issue is an absolute nullity, as discussed, infra, it may be attacked in direct or collateral proceedings at any time and before any court. Id.; Lexington Ins. Co. v. Tasch, Inc., 12-339, p. 10 (La.App. 5 Cir. 11/27/12), 105 So.3d 950, 956.

A default can be reversed as a nullity on direct appeal where the ground for the nullity is apparent on the face of the record. G.R. Constr., supra.; State, Dep’t of Soc. Services, ex. rel T.M.A. v. Pickins, 42,721 (La.App. 2 Cir. 12/5/07), 972 So.2d 1225. Jurisprudence also recognizes that peremptory grounds for nullity of a judgment listed in La. C.C.P. art. 2002, i.e., “lack of service of process as required |fiby law” may be asserted through appeal. See Pollock v. Talco Midstream Assets, Ltd., 44,629 (La.App. 2 Cir. 9/23/09), 22 So.3d 1033, writ denied, 11-1295 (La.9/23/11), 69 So.3d 1166 (permit[108]*108ting annulment through motion for new trial or on appeal in same action).

LAW AND DISCUSSION

In appellant’s first assignment of error,

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165 So. 3d 104, 14 La.App. 5 Cir. 436, 2014 La. App. LEXIS 2825, 2014 WL 6686733, Counsel Stack Legal Research, https://law.counselstack.com/opinion/folse-v-st-rose-farms-inc-lactapp-2014.