Gonzales v. Gillum

74 So. 2d 153, 225 La. 890, 1954 La. LEXIS 1273
CourtSupreme Court of Louisiana
DecidedJuly 2, 1954
DocketNo. 41206
StatusPublished

This text of 74 So. 2d 153 (Gonzales v. Gillum) 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
Gonzales v. Gillum, 74 So. 2d 153, 225 La. 890, 1954 La. LEXIS 1273 (La. 1954).

Opinion

HAMITER, Justice.

In the succession proceedings of Samuel B. Dawson, deceased, his duly qualified executrix, Mrs. Ida G. Dawson, who was also his third wife, adjudicated in two sales, pursuant to an order of court and for the purpose of paying debts, almost all of the succession property. The first sale was to the Federal Land Bank of New Orleans and covered a tract of land containing approximately 508 acres. The second sale was to the said Mrs. Ida G. Dawson, individually, and it purported to convey most of the remaining assets, both real and personal. An attack on each of the sales is made in this cause, plaintiffs, who are the children of decedent’s first and second marriages, asserting that such was an absolute nullity.

The district court, following extensive litigation, rejected the demands of plaintiffs and dismissed the suit at their costs. They are appealing.

As stated in their briefs to this court appellant’s counsel now contend:

1. The sale to the Federal Land Bank was null and void as the property sold for less than two-thirds of its appraised value.

2. The sale to Mrs. Dawson was null and void for the same reason and for the additional reason that she failed to comply with the terms of her bid.

3. The entire proceedings in the succession of Samuel B. Dawson show a [893]*893scheme on the part of Mrs. Ida G. Dawson to acquire ownership of all of the property of the succession, and to deprive plaintiffs of their legitime.

We consider these contentions in the order in which they are listed.

The record discloses that the 508-acre tract of land was appraised in the succession inventory at $5,080, and that under the terms fixed by the court it was to be sold for not less than two-thirds of such value, or $3,386.67. However, the deed evidencing the sale thereof recited in part that the property “was adjudicated to the Federal Land Bank of New Orleans, it being the last and highest bidder for the sum of Three Thousand Eighty-six and 67/100 Dollars * * *” (this sum was $300 less than the required two-thirds of the appraisement); and the same figure was used by the executrix in her final account, she stating therein that such amount was “reserved by Federal Land Bank to be applied to their mortgage.” Nevertheless, to our minds, it is certain that the figure thus used in the deed and final account represented a typographical error; and that the actual bid was, and the property sold, for $3,386.67, as required.

In the deed, immediately following the stated figure, was the further recitation “which was two-thirds of the inventoried value of said property.” Too, it hardly seems likely that a bid for an amount involving odd cents (sixty-seven cents) would have been made if it was not in keeping with the requirement. Again, the attorney representing the purchaser, who-had had much experience in probate sales. (H. H. Kilbourne, later Judge of the Twentieth Judicial District Court and recused in the trial of this cause), recalled the incident and testified emphatically that the property was adjudicated for two-thirds of its appraised value (over objections this, evidence was admitted because of plaintiffs’ allegations of fraud); and, in connection with his testimony, there was introduced a letter written to his client in which he stated: “This is to advise you that according to your telephoned instructions, I have this day bid in the Dawson property covered by your mortgage for two-thirds of its appraised value.” Finally, it may be observed that there was no-good reason for the Bank’s bidding less, than two-thirds of the property’s appraisement ($3,386.67), for the balance on the-mortgage held by it greatly exceeded that, amount. In fact, a bid representing the-entire balance due it could have been made without its being compelled to pay any funds to the executrix.

Alluding to this circumstance, and announcing the same conclusion that we do-above, the trial judge stated in his written reasons for judgment: “As was testified by Judge Kilbourne, I am satisfied that the Federal Land Bank, to which there was a. balance due on the 508.85 acres of land of the sum of $4,655.60 actually bid for [895]*895this land % of its appraisal value. It could well- have bid the whole balance due. The recitation in the final account that it bid only $3086.67 or $300.00 less than [% •of] the appraisement, in the light of Judge Kilbourne’s testimony obviously, was an error. * * * ” (Brackets ours.)

The trial judge further concluded that even if the recitation were correct the discrepancy amounted to a harmless informality (no injury or fraud having been shown) which was cured by the prescription provided in L.S.A. Civil Code Article 3543. However, we need not and do not review this legal pronouncement in view ■of our conclusion on the facts.

Neither is it correct to say (notwithstanding the apparent accord among all counsel to the contrary) that the succession assets covered by the second sale to Mrs. Dawson (individually] failed to bring two-thirds of their appraised value. Of the property so sold the real estate was appraised at $899.50 and the personal property at $1,773 — a total of $2,672.50. Two-thirds of this amount is $1,781.67, the exact sum bid by Mrs. Dawson for the property, as the deed states.

In agreeing that the total appraisement was $2,789 (or $116.50 more than we show above), and that Mrs. Dawson’s bid was $77.66 less than the required two-thirds thereof, counsel overlooked the fact that with respect to an undivided one-seventh reálty interest inventoried as belonging to the first community, and appraised at $233, only one-half thereof (valued at $116.50) belonged to decedent and was conveyed by the sale, as is specifically recited in the deed. The remaining one-half of the one-seventh interest could not be, and it was not, sold for the reason that the children of the first marriage had inherited it from their deceased mother. Counsel, in their computation, obviously took into consideration the appraised value of such unsold one-half of the one-seventh (one-fourteenth) interest; and this accounts for the alleged discrepancy of $77.66 (two-thirds of $116.50).

The contention that Mrs. Dawson did not comply with the terms of her bid, in that she failed to pay cash for the property, is likewise without merit. In her capacity as executrix of the succession she occupied the position of a creditor with respect to the funds owed by her individually in making the purchase; and it was only natural and proper that she retain the money representing her bid, using it as she did toward the extinguishment of the succession debts. See Childs v. Lockett, 107 La. 270, 31 So. 751. On this point the case of In re Union Central Life Insurance Company, 208 La. 253, 22 So.2d 63, cited and relied on by plaintiffs, is inapposite. The purchaser at the succession sale therein had no claim whatever, as a creditor or otherwise, to the purchase price which she agreed to pay.

In charging that Mrs. Dawson “schemed” to acquire all of the property of [897]*897the succession, plaintiffs concede that “fraud will not be presumed, and must be proved” (they do not recognize also another legal principle that the proof must be exceptionally strong).

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Related

In Re Union Cent. Life Ins. Co.
23 So. 2d 63 (Supreme Court of Louisiana, 1945)
Childs v. Lockett
107 La. 270 (Supreme Court of Louisiana, 1901)

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74 So. 2d 153, 225 La. 890, 1954 La. LEXIS 1273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gonzales-v-gillum-la-1954.