Fontenot v. Fontenot

175 So. 2d 910, 1965 La. App. LEXIS 4152
Louisiana Court of Appeal·Decided June 2, 1965·No. No. 1424·Published·Cited by 2 cases

Opinions

CULPEPPER, Judge.

Plaintiffs sue to enforce alleged oral contracts whereby the defendants, mineral lease brokers, induced plaintiffs to lease to defendant’s principal for $5 an acre by promising that if more was paid to any other lessor in the “block”, defendants would come back and personally pay plaintiffs the difference. The district judge held parol evidence inadmissible to prove the alleged oral contracts. From a judgment dismissing their suit, plaintiffs appeal.

We have concluded that parol evidence was admissible to prove the oral agreement [911]*911sued on. But, we find the evidence does not prove the oral agreements by a preponderance.

The general facts show that Humble Oil Company requested Mr. Fritz Muller, of Crowley, Louisiana, to secure, for assignment to it, a certain block of mineral leases containing about 4,000 acres. Muller then contacted the defendants, Moise L. Fontenot and his son, Nat L. Fontenot, who have been lease brokers in the area for about 20 years and had previously leased thousands of acres from Mr. Muller. Defendants were authorized to take the leases in Muller’s name and agree to pay a consideration of $5 per acre and an annual delay rental of $5 per acre.

Defendants then went out into the territory to secure the leases. They were accompanied by Mr. Joe V. Handley, Jr., an employee of Muller, who apparently went along to sign the checks and by Mr. Maurice Lafleur, a local resident, whom they employed to locate the homes of the landowners.

Plaintiffs contend that to induce their signatures to leases for $5 per acre, the defendant, Moise Fontenot (and by acquiescence, his son, Nat Fontenot) promised that if a greater amount was paid to others in the same block, defendants would come back and personally pay plaintiffs the difference. The facts show that subsequently about 80% of the acreage was leased for $5 an acre but finally the remaining holdouts were paid $10.

On learning that a few subsequent lessors were paid more than $5 per acre, the plaintiffs filed this suit for money judgment against the defendants, Moise Fontenot and Nat Fontenot. Plaintiffs do not seek to annul the leases or change them in any way. Mr. Muller, the lessee, was not named a defendant by plaintiffs. (Defendants filed a third party demand against Muller, but no issue in this regard is present on appeal.)

We will first consider the admissibility of parol to prove the oral agreement sued on. In holding such testimonial proof inadmissible the district judge relied primarily on Hayes v. Muller, 245 La. 356, 158 So.2d 191 (1963). In that case plaintiffs and defendant entered into an oral joint adventure under which each advanced $20,000 for speculation in mineral interests. Defendant purchased a lease in his name alone. Several years later defendant sold this lease for $900,000. Plaintiffs then filed suit for an accounting of profits realized from the oral joint adventure, seeking their share of the profits realized from the sale of the lease. On rehearing, our Supreme Court held that parol evidence was not admissible to prove the oral joint adventure. The court reasoned that the prohibition against testimonial proof of the transfer of immovables (LSA-C.C. Art. 2275) applies not only to cases where the title to realty is directly affected, “ * * * but also in others where the litigants merely sought to derive benefits growing out of verbal agreements relating to the sales of immovable property.”

In support of its decision in Hayes v. Muller, supra, our Supreme Court relied principally on Prescott et al. v. Prescott et al., 170 La. 233, 127 So. 611 (1930). The court discussed the Prescott case as follows:

“Therein, the plaintiffs attempted to show by parol that one of the defendant (a brother) had acquired certain property in his own name, but that in doing so he was acting as the agent of the mother and used money which had been entrusted to him to invest for her. Prior to his mother’s death such defendant had sold the property and retained all of the funds derived from the sale. By their action plaintiffs (as heirs of their mother) sought to obtain an accounting of the revenues of such property received by that defendant while it was still in his name and to obtain their share of the sale price which had been paid to him. The court [912]*912(in sustaining an exception of no cause of action) held that since plaintiffs were debarred by the parol evidence rule from showing title in their mother (rather than in the defendant) they could not be heard to demand an accounting of either the revenues of the property or any part of the proceeds derived from the sale' thereof

We think both the Hayes and Prescott cases are readily distinguishable from the present matter. There plaintiffs were seeking by parol to prove oral agreements entitling them to share in the proceeds of sales of immovables. In the case at bar, plaintiffs are not seeking any part of the proceeds from the sale of the leases, or any other, benefits allegedly accruing to the plaintiffs through or by virtue of the lease contracts themselves. • They do -not seek to- annul or alter the leases, or to affect the title in any way whatsoever, or to claim any benefits .flowing from the title.

Defendants -also argue the applicability of-LfeA-GC. Art.' 227-6 which provides: “Neither shall parol evidence be admitted agajtist or beyond what is. contained in the acts, nor on what may have been said ber for.e, or at tlie time .of making them, or since.” The leases contained the following provision: “The consideration paid by lessee to lessor is accepted as full and ade.-quate consideration for all rights, options and privileges herein granted.”

Defendants argue that if parol evidence of the alleged oral agreement is allowed, it will vary the terms of the written lease, by showing an additional sum is due lessors. One answer to this argument is our settled jurisprudence that the rule excluding parol evidence, to vary or contradict a written instrument, applies only to litigation between the parties to the instrument and their privies. W. K. Henderson Iron Works & Supply Co. v. Jeffries, 159 La. 620, 105 So. 792; Commercial Germania Trust & Savings Bank v. White, 145 La. 54, 81 So. 753; Resweber v. Jacob, La. App., 125 So.2d 241; Baker v. Baker, La. App., 21 So.2d 514; Wampler v. Wampler, 239 La. 315, 118 So.2d 423. A “privy” has-been defined as “ * * * one who has succeeded to some right or obligation which one of the parties to the act derived through the act or incurred under it.” Commercial Germania Trust & Savings Bank v. White, supra.

In the present case neither of the defendants is a party to the written lease. It is equally as apparent that defendants are not privy to the written lease. They have not succeeded to any right or obligation thereunder, nor do they have any interest therein. Hence neither plaintiffs nor defendants are bound by said parol evidence rule in this litigation.

We think able counsel for the plaintiffs has correctly analyzed the present case as being one -where a disclosed agent is alleged to have exceeded his authority and thereby personally bound himself, a legal proposition so clear as to require no citation of authority beyond the codal articles. See LSA-C.C. Art. 3010; Art. 3012; Art. 3013. Plaintiffs testified they knew defendants were acting as agents and understood the oral agreement in question was binding on defendants personally and not on the lessee, Muller, whom they did not know.

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Fontenot v. Fontenot, 175 So. 2d 910, 1965 La. App. LEXIS 4152 (La. Ct. App. 1965).

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