Glass v. Mott

295 So. 2d 84
CourtLouisiana Court of Appeal
DecidedFebruary 12, 1974
DocketNo. 12214
StatusPublished
Cited by1 cases

This text of 295 So. 2d 84 (Glass v. Mott) 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
Glass v. Mott, 295 So. 2d 84 (La. Ct. App. 1974).

Opinion

HALL, Judge.

Plaintiffs appeal from a judgment rendered after trial on the merits dismissing their suit to annul a cash sale deed on grounds of fraud and failure of consideration. For reasons expressed in this opinion we reverse the judgment of the district court, annul and set aside the sale, and recognize plaintiffs as the owners of the property purportedly conveyed by the deed.

Plaintiffs, Lorenza Glass and her brother, John Glass, were the owners of an undivided two-thirds interest in a 10.54 acre tract of land in Caldwell Parish. On November 27, 1967, they executed a cash sale [85]*85warranty deed to defendant, James Glenn Mott, reciting a consideration of $950 cash, receipt of which was acknowledged. In October, 1971, plaintiffs filed suit against defendant to set aside the sale on the basis of fraud and failure of consideration, to be recognized as owners of the property described in the act of sale, and to enjoin defendant from proceeding with a partition suit filed by him against plaintiff’s sister who was the owner of the other one-third interest in the property.

Plaintiffs allege that at the time of the purported sale, defendant was employed by Caldwell Credit Plan, Inc., a small loan company to which plaintiffs were indebted for approximately $1,200. The petition further alleged that plaintiffs were in arrears on their payments and defendant represented to plaintiffs he would credit their indebtedness with $950, the amount shown in the deed. The petition further alleged that defendant never intended at the time of execution of the deed to pay them any consideration, that the transaction was a fraudulent scheme confected by defendant to defraud and cheat plaintiffs out of their property, and that no credit was ever given them on their indebtedness to the loan company.

Defendant’s answer was in the nature of a general denial.

At the trial, plaintiffs offered evidence to support the allegations of their petition. Defendant offered evidence in an effort to show the true consideration for the deed was the total amount of $700 which was to be paid $200 cash at the time the deed was signed and $500 by payments to the loan company as credits on plaintiffs’ indebtedness. Defendant’s evidence was offered over the objection of plaintiffs.

In written reasons for judgment the district court held defendant’s evidence as to the true consideration was admissible and that the evidence established substantial compliance by defendant with his agreement with plaintiffs. Accordingly, judgment was rendered in favor of defendant.

On appeal plaintiffs contend:

(1) The district court erred in admitting defendant’s evidence concerning the true consideration and payment thereof, over plaintiffs’ objection, because defendant failed to plead an affirmative defense or to allege the facts he sought to prove; and
(2) Even if the evidence was admissible it fails to support defendant’s contentions as to the true consideration and payment thereof.

We hold defendant’s evidence was admissible but the evidence fails to establish payment to or for the account of or receipt by plaintiffs of any consideration for the execution of the deed.

On the issue of the admissibility of the evidence, plaintiffs argue that proof of payment should not have been allowed, as payment is an affirmative defense which must be pleaded in the answer under LSA-C.C.P. Art. 1005 which provides:

“The answer shall set forth affirmatively arbitration and award, assumption of risk, contributory negligence, discharge in bankruptcy, division, duress, error or mistake, estoppel, extinguishment of the obligation in any manner, failure of consideration, fraud, illegality, injury by fellow servant, transaction or compromise, and any other matter constituting an affirmative defense. If a party has mistakenly designated an affirmative defense as an incidental demand, or an incidental demand as an affirmative defense, and if justice so requires, the court, on such terms as it may prescribe, shall treat the pleading as if there had been a proper designation.”

Payment as a mode of extinguishing an obligation is an affirmative defense under the express provisions of Article 1005. However, the present suit is not a suit to enforce an obligation and defendant’s defense is not that the obligation was extinguished by payment. Thus, this particular [86]*86provision of Article 1005 and the several cases cited by plaintiffs to the effect that payment is an affirmative defense are inapplicable.

Ordinarily, the defendant seeking to prove a consideration other than that recited in a deed and payment thereof would have to affirmatively allege such facts as a prerequisite to the introduction of evidence in support thereof. Taylor v. Spencer, 225 So.2d 98 (La.App. 2d Cir. 1969). In this case, however, plaintiffs themselves in their petition affirmatively alleged the recited consideration was not the true consideration and the true consideration was the crediting of their indebtedness to the loan company which was never done. Defendant denied these allegations. The question as to the nature of true consideration and the payment thereof was squarely put at issue by plaintiffs. Thus, no special affirmative allegations were required on the part of defendant.

The situation in the present case is quite similar to that involved in Hinton v. May, 241 So.2d 583 (La.App. 2d Cir. 1970). In that case plaintiff sought to annul a deed on the basis that the recited consideration had not in fact been paid. Plaintiff’s petition alleged that the consideration was never in fact paid or intended to be paid, that the real consideration was the agreement by vendees to furnish a home for the vendor, and that the conveyance was in fact a donation in disguise. The defendants denied these allegations. Plaintiff objected to evidence offered by defendants on the basis the answer failed to contain affirmative allegations to support the introduction of evidence of other consideration. This court, in an opinion by Presiding Judge H. W. Ayres, noted that the main thrust of plaintiff’s petition was that the recited consideration was never paid which defendant’s answer denied. The opinion emphasized the fact that plaintiff’s own pleadings alleged the true consideration for the conveyance. Approving the admissibility of defendant’s evidence, this court held:

“Special allegations in the answer are not necessary to authorize the introduction of evidence, the direct tendency of which is to disprove what the plaintiff alleges.”

Considering all of the evidence offered at the trial of the case, we are nevertheless of the opinion it fails to establish payment by defendant or receipt by plaintiffs of any consideration for the execution of the deed.

Plaintiffs testified they owed Caldwell Credit Plan, Inc. approximately $1,200 and were in arrears on their payments. They agreed with the defendant, Mott, to convey to him their undivided two-thirds interest in the property in consideration for which Mott was to credit their account with the loan company for the amount of $950. They testified they signed the deed at a lawyer’s office (the lawyer is now deceased) and that no cash was paid. They testified Mott was to give them a receipt and when they went back the next day he did not give them a receipt but did loan them $100 which was added to their account.

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Bluebook (online)
295 So. 2d 84, Counsel Stack Legal Research, https://law.counselstack.com/opinion/glass-v-mott-lactapp-1974.