Gautreaux v. Harang

183 So. 349, 190 La. 1060, 1938 La. LEXIS 1341
CourtSupreme Court of Louisiana
DecidedJuly 7, 1938
DocketNo. 34673.
StatusPublished
Cited by32 cases

This text of 183 So. 349 (Gautreaux v. Harang) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gautreaux v. Harang, 183 So. 349, 190 La. 1060, 1938 La. LEXIS 1341 (La. 1938).

Opinions

LAND, Justice.

(1) On February 14, 1923, Olivanne Acosta executed by notarial act before A. L. Deramee, Notary Public for the Parish of Lafourche, the transfer of a certain tract of land in that Parish:

"Being the same property, acquired from D. Harang about the year 1920.
“Appearers hereby declare by these presents, that this sale is made to secure a debt on said described property and that no Revenue Stamps are to be attached hereto.
*1069 “The price and consideration for which this sale is made is declared to be the sum of Thirty-Seven Hundred and Fifty ($37-50.00) Dollars cash in hand paid, at the signing hereof, the receipt of which is hereby acknowledged.”

This act of transfer was recorded in the Parish of Lafourche February 16, 1923. T. 23, 24.

Olivanne Acosta, vendor, although a resident of Lafourche Parish, died intestate on the 23rd day of September, 1934, at the Baptist Hospital in the City of New Orleans.

Dominique Harang departed this life in the Parish of Orleans, the place of his domicile, on the 8th day of August, 1923.

On January 30, 1937, the widow and heirs of Olivanne Acosta executed a sale by notarial act to James J. Tracy of an undivided one-half interest in this property. This act of sale was recorded in the Conveyance Records of Lafourche Parish February 1, 1937. T. 25, 26, 27, 28.

(2) The widow and heirs of Acosta, and Tracy now sue to be recognized as the owners of the tract of land mentioned in the act of February 14, 1923, alleging that said act establishes an antichresis in favor of the apparent vendee, Dominique Harang, to secure the payment of certain mortgage notes executed by Olivanne Acosta on this property, amounting to the sum of Three Thousand Seven Hundred and Fifty Dollars ($3750).

Defendants, on the other hand, contend that the act of February 14, 1923, is a cash sale, and that thesé identical mortgage notes were surrendered by Olivanne Acosta in payment of the cash purchase price of Three Thousand Seven Hundred and Fifty Dollars.

(3) The act of February 14, 1923, does not pretend to create a present existing indebtedness for which the sale is made as a security. But, it does specifically refer to a pre-existing indebtedness in the declaration “that this sale is made to secure a debt on said described property, being the same property acquired from D. Harang about the year 1920.”

Referring to the notarial act of sale from Dominique Harang to Olivanne Acosta, made January 9, 1920, we find that “the debt on said described property”, referred to in the act of February 14, 1923, consisted of $3,750, in five mortgage notes on this property, executed by Acosta, the purchaser, for the payment of the balance of the purchase price; and we observe also that the amount of these mortgage notes is the identical amount of $3,750, stated in the act of February 14, 1923, as the amount of the cash purchase price alleged to have been paid for the property described in that act.

It is stated in the act of sale from Ha-rang to Acosta, of 'date January 9, 1920, “and for the balance of said purchase price the said purchaser has furnished his five certain promissory notes dated this day drawn by himself to the order of and endorsed by himself in blank as follows: 1st note for $700 payable one year after date, 2nd note for $750 payable two years after date, 3rd note for $750 payable three years after date, 4th note for $750 pay *1071 able four years after date, and 5th note for $800 payable five years after date, with interest at the rate of eight per cent per annum from date, payable annually until final payment of said notes, which after having been paraphed “Ne Varietur” by me Notary for identification herewith were delivered to the said vendor (Harang) who acknowledged receipt thereof.” T. 21.

The total of these five notes makes exactly $3750, the identical amount of the cash purchase price stated in the act of sale from Olivanne Acosta to Dominique Harang of date February 14, 1923. No question can arise as to the exact amount of principal and interest due under these notes, nor as to the exact time of the payment of the principal and interest. There is therefore no such vagueness in the act of sale in this case as to the indebtedness to be paid under the sale as a security as would invalidate the act as an antichresis.

In order, to make certain that no ambiguity could arise as to the question, whether this act of salé was intended by the contracting parties as a security for this pre-existing indebtedness, the words “No Revenue Stamps are to be attached hereto” follow immediately the words “Appearers hereby declare by these presents that this sale is made to secure a debt on said described property

The applicable Federal Statute in force at the time of execution of the sale of February 14, 1923, relied upon by plaintiffs as the act of antichresis, with reference to documentary stamps, reads as follows:

“Conveyances: Deed, instrument, or writing, whereby any lands, tenements, or other realty sold shall be granted, assigned, transferred, or otherwise conveyed to, or vested in, the purchaser or purchasers, or 'any other person or persons, by his, her, or their direction, when the consideration or value of the interest or property conveyed, exclusive of the value of any lien or encumbrance remaining thereon at the time of sale, exceeds $100 and does not exceed $500, 50 cents; and for each additional $500 or fractional part thereof, 50 cents. This subdivision shall not apply to any instrument or writing given to secure a debt.” Revenue Act 1921, c. 136, title 11, Stamp Taxes, Schedule A, par. 6, 42 Stat. 305. Only the trivial amount of $3.50 was due for Revenue Stamps when the act was passed. The very language itself of this Federal Statute is written into the act of sale of February 14, 1923: “to secure a debt” and “on said described property.”

(4) That the purpose of the contracting parties, in making the sale in act of sale of February 14, 1923 was “to secure a debt on said described property” cannot be well doubted, since the language used in this act is plain and free from all ambiguity.

Article 1945 of the Revised Civil Code, par. 3, declares:

“That the intent is to be determined by the words of the contract, when these are clear and explicit and lead to no absurd consequences.”

As stated in the syllabus of Rolland’s Heirs v. McCarty, 19 La. 77:

*1073 “The court will not presume, that parties make use of words in their contracts to which no meaning is attached by them. Some effect is to be given to every word if possible; and but rarely will the court reject words or phrases in a contract as surplusage.”

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Bluebook (online)
183 So. 349, 190 La. 1060, 1938 La. LEXIS 1341, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gautreaux-v-harang-la-1938.