Gary Morgan v. Craig Stephen Pardue

Louisiana Court of Appeal·Decided October 7, 2015·No. CA-0015-0149·Unknown

Opinion

STATE OF LOUISIANA COURT OF APPEAL, THIRD CIRCUIT

15-149

GARY N. MORGAN

VERSUS

CRAIG STEPHEN PARDUE, ET AL.

**********

APPEAL FROM THE SEVENTH JUDICIAL DISTRICT COURT PARISH OF CONCORDIA, NO. 47,733 HONORABLE LEO BOOTHE, DISTRICT JUDGE

MARC T. AMY JUDGE

Court composed of Ulysses Gene Thibodeaux, Chief Judge, John D. Saunders, and Marc T. Amy, Judges.

APPEAL DISMISSED. REMANDED FOR FURTHER PROCEEDINGS.

J. W. Seibert, III Madaline Cross Gibbs Seibert and Gibbs, PA Post Office Box 2038 Vidalia, LA 71373 (318) 336-9676 COUNSEL FOR PLAINTIFF/APPELLEE: Gary N. Morgan Stephen Babcock Chase Tettleton Babcock Partners, LLC 10101 Siegen Lane, Suite 3C Baton Rouge, LA 70810 (225) 344-0911 COUNSEL FOR DEFENDANTS/APPELLANTS: Craig Stephen Pardue Leslie Pardue CLS Hunting Club, LLC

Brandy McClure Post Office Box 665 Jonesville, LA 71343 (318) 339-7337 COUNSEL FOR DEFENDANT/APPELLEE: Amanda Smith Pardue AMY, Judge.

The defendants in this matter are the purchasers, or successors-in-interest to

the purchasers, of a certain parcel of immovable property. The credit sale deed

provided for payment in the form of a cash payment, a promissory note, and ten

years of payments which were expected pursuant to a federal contract on the

property. The plaintiff subsequently filed suit seeking dissolution of the sale for

nonpayment of the purchase price. After a trial, the trial court ordered dissolution

of the sale. One of the defendants appeals. However, for the reasons that follow,

we find that the trial court’s judgment does not satisfy the requirements of a final

judgment and that this court does not have jurisdiction in this matter. Accordingly,

we do not reach any assignments of error, nor do we address the motion to strike

filed by the appellant. We dismiss the appeal and remand the matter to the trial

court for further proceedings consistent with this opinion.

Factual and Procedural Background

The plaintiff, Gary Morgan, was the owner of a parcel of immovable

property in Concordia Parish. According to the record, Mr. Morgan placed the

property into the Conservation Reserve Program (CRP) through the Farm Service

Agency (FSA). The record suggests that Mr. Morgan entered into a CRP contract

whereby he agreed to abide by the rules and regulations of the CRP program and in

return would receive a certain number of annual rental payments.

After Mr. Morgan entered into the CRP contract, he began negotiations with

one of the defendants, Craig Stephen Pardue, to sell the property. The result of

those negotiations was that, in 2009, Mr. Morgan sold the property by credit sale

deed to Amanda Smith Pardue, Craig’s then-wife, and their two children, Leslie

Cristine Pardue and Stafford Weston Pardue. The credit sale deed provided for payment in the form of a $74,000 cash payment; a $36,000 promissory note,

payable at 5% interest and maturing in five years; and reservation to Mr. Morgan

of ten years of CRP payments in the amount of $5,480 per year. The credit sale

deed noted that the purchasers could satisfy the CRP reservation by making a lump

sum payment equal to any remaining CRP payments. The $36,000 promissory

note was attached and paraphed “ne varietur” to identify it with the credit deed.

Craig and Amanda have since divorced, and the record contains a

community property settlement and amended community property settlement that

transfers Amanda’s 40% interest in the property to Craig and provides that Craig

will hold Amanda harmless for any debt associated with the property. Craig,

Stafford, and Leslie subsequently transferred their interest in the property to CLS

Hunting Club, LLC. Documents filed into evidence indicate that Craig, Stafford,

and Leslie were all managers of that limited liability company. Further, the record

indicates that Stafford died after that transfer was made and that his interest was

split between Craig and Leslie.

Whether annual payments were required by the promissory note is disputed

by the parties. According to Mr. Morgan, the credit sale deed contemplates annual

payments. Craig’s position is that the promissory note itself does not require

annual payments. Mr. Morgan testified that Craig was unable to make an annual

payment in 2010, and that he and Craig agreed to forego that payment and

recalculate the remaining payment schedule. The record indicates that Craig made

a payment of $10,027.45 in 2011. Although Craig attempted a payment of $1,500

in 2012, Mr. Morgan refused to accept that payment. Craig also attempted a

payment of $34,048.52 after the institution of this action; according to Craig, that

payment was made on the maturity date of the promissory note and was sufficient

2 to satisfy the outstanding balance. The record indicates that Mr. Morgan refused

acceptance of that payment as well and that those monies were deposited in the

registry of the court.

In 2012, the FSA learned that Mr. Morgan was no longer the owner of the

property. Whether the defendants had an obligation to transfer the CRP contract to

their names and whether they had missed the window of opportunity to do so was

hotly contested at trial. In any event, the FSA cancelled the CRP contract and

required Mr. Morgan to repay the annual rental payments he had received, a “cost

share” payment plus interest, and liquidated damages.

After the CRP contract was cancelled, Mr. Morgan filed the instant

litigation, seeking dissolution of the sale pursuant to La.Civ.Code art. 2561 for

nonpayment of the price. In addition to alleging that the defendants did not abide

by the rules and regulations of the CRP program, which allowed the CRP contract

to lapse and deprived him of the annual payments he was entitled to receive, Mr.

Morgan alleged that the defendants failed to make annual payments as required by

the promissory note.

After a trial, the trial court found in favor of Mr. Morgan and entered

judgment:

dissolving the sale of the property described in Paragraph 2 of Plaintiff’s petition subject to a return of all consideration paid by the Defendants, Craig Stephen Pardue, Amanda Smith Pardue, Leslie Cristine Pardue, and the Unopened Succession of Stafford Weston Pardue, to the Plaintiff, Gary N. Morgan, less and except the following setoffs and credits:

a) The repayment to FSA of $16,915.66 ($16,452.00 in principal and $463.66 in interest) which is the amount of the three (3) CRP payments which Plaintiff actually received subsequent to the sale plus interest;

3 b) The balance of the retained and reserved CRP payments, and which amounts to $38,388.00;

c) The cost share due by Plaintiff to FSA in the amount of $5,751.88;

d) The liquidated damages due to FSA in the amount of $1,370.94;

e) Lost hunting lease rentals in the amount of $1,500.00 for four (4) years, totaling $6,000.00.

The total setoffs and credits applicable to the required return of the purchase price paid by Defendants to Plaintiff presently totals $68,426.48.

Craig now appeals, asserting that the trial court erred in dissolving the sale.

Additionally, although she has not filed an answer to the appeal, Amanda requests

in her appellate brief that she be dismissed from this suit. Finally, Craig has filed a

motion to strike Mr. Morgan’s appellate brief and its exhibits.1

Discussion

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