Guillory v. Hayes

576 So. 2d 1136, 1991 WL 33666
CourtLouisiana Court of Appeal
DecidedMarch 13, 1991
Docket89-545
StatusPublished
Cited by4 cases

This text of 576 So. 2d 1136 (Guillory v. Hayes) 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
Guillory v. Hayes, 576 So. 2d 1136, 1991 WL 33666 (La. Ct. App. 1991).

Opinion

576 So.2d 1136 (1991)

Robert GUILLORY, Plaintiff-Appellee/Appellant,
v.
Douglas HAYES et al., Defendants-Appellants/Appellees.

No. 89-545.

Court of Appeal of Louisiana, Third Circuit.

March 13, 1991.

*1137 Martin, Taulbee, Preston D. Cloyd, Lafayette, for plaintiff-appellee, appellant.

*1138 George Kim Johnson, Baton Rouge, Hunter & Boland, Lake Charles, for defendants-appellants, appellees.

Before FORET, LABORDE and KNOLL, JJ.

LABORDE, Judge.

This is an action to recover a deposit on the purchase of immovable property brought by plaintiff, Robert Guillory, against defendants, Douglas Hayes and Riceacres, Inc. (Riceacres). After a trial on the merits, the trial court found in favor of plaintiff and against Douglas Hayes in the amount of $37,709.75 and against Riceacres in the amount of $28,060.03. All parties now appeal the judgment of the trial court. We amend the amount awarded against Douglas Hayes to account for an error in calculation and affirm as amended.

FACTS

We find that the trial court did an admirable job in sorting through and delineating the crucial events leading up to the filing of this lawsuit, and we adopt as our own the rendition of the facts laid out in its reasons for judgment:

"This is a suit filed by the plaintiff, ROBERT GUILLORY ... against the defendants DOUGLAS HAYES and RICEACRES, INC.... to recover the sum of $65,000.00 which plaintiff alleges was delivered to Douglas Hayes as a deposit on the purchase price of certain property located in Jefferson Davis Parish, Louisiana, owned jointly by Douglas Hayes and Riceacres.
Riceacres was erroneously referred to in the original petition as Riceland Acres, Inc. On June 27, 1986, this court rendered a default judgment against Riceacres, Inc. which judgment was subsequently annulled by the court on May 29, 1987.
On June 5, 1987, Guillory filed a supplemental and amending petition changing the name of the defendant from Riceland Acres, Inc. to Riceacres, Inc. and adding an additional paragraph alleging that Douglas Hayes and/or Riceacres, Inc. were unjustly enriched subsequent to the delivery of the $65,000.00 check from Guillory to Hayes since Hayes endorsed the check to the Federal Land Bank for payment and satisfaction of the interest obligation jointly owned by Hayes and Riceacres.
On August 19, 1987, Guillory filed a second supplemental and amending petition alleging that Douglas Hayes was authorized to do and was doing business for Riceacres, and Riceacres was unjustly enriched when Douglas Hayes received a check for $65,000.00 from Guillory which was endorsed and deposited in the Federal Land Bank for payment in satisfaction of the interest obligation owed by Riceacres. It was further alleged that Guillory was impoverished unjustly due to having paid $65,000.00 for consideration of ownership of a particular parcel of property owned by Riceacres and not having received title or ownership of said property, despite demand, and that the unjust enrichment of Hayes and Riceacres was directly related to the unjust impoverishment of Guillory in that they were the result of a single action or occurrence. It was further alleged that there was no valid or legal justification or reason for the unjust enrichment of Hayes and/or Riceacres except the deliverance of a certain parcel of property which was to be delivered to Guillory and such delivery did not take place causing Guillory to be unreasonably and unjustly impoverished.
Riceacres filed an answer denying any liability to plaintiff and also filed a cross-claim against Douglas Hayes praying for judgment against Hayes in the event there is a judgment against it in favor of plaintiff. In the alternative, Riceacres prays that any judgment against it be limited to one-half of the total amount found to be due to plaintiff as a result of any payment made on the obligation to the Federal Land Bank in the name of both defendants.
Hayes filed an answer denying any liability to plaintiff and also filed an answer denying any liability on Riceacres cross-claim against him.
*1139 This matter came on to be tried on July 13, 1988. At trial the parties entered into a joint stipulation of the following facts: Douglas Hayes and Riceacres were co-owners of a 530 acre tract of land located in Jefferson Davis Parish, Louisiana; Douglas Hayes and Riceacres entered into a written co-ownership agreement concerning this co-owned land; Robert Guillory did not discuss the proposed sale directly with E.W. Hayes prior to the negotiation of the check in question; on or about March 14, 1985, Robert Guillory issued a check to Douglas Hayes in the sum of $65,742.74; and E.W. Hayes is and was president of Riceacres at all times relevant to the suit.
* * * * * *
Much of the factual evidence is not in dispute. The evidence shows that in September of 1981 Douglas Hayes was interested in purchasing 530 acres of land located in Jefferson Davis Parish, Louisiana. The Federal Land Bank would not lend the money to him individually because in their opinion he did not have the financial capacity to handle the loan. His cousin, E.W. Hayes, agreed to help him obtain the loan and the Federal Land Bank agreed to approve the loan with a co-signer. E.W. Hayes agreed to co-sign the loan provided the land was co-owned by Riceacres (his corporation) and Douglas Hayes. The transaction was completed and in connection therewith Douglas Hayes and Riceacres entered into a written co-ownership agreement concerning the ownership and management of the property which was recorded in the Public Records of Jefferson Davis Parish, Louisiana. A copy of this agreement was introduced in evidence as "J2." This agreement provided for joint management of the property, a right of first refusal in the event of sale, an option to purchase, among other provisions. The parties verbally agreed that Douglas Hayes would farm the property, receive all of the income and would be solely responsible for paying the note due the Federal Land Bank. Riceacres did not receive any income from the property although it did receive some tax benefits. Riceacres' motive in signing the note and mortgage was to help Douglas Hayes purchase the land. The Federal Land Bank was aware of this agreement and dealt solely with Douglas Hayes in connection with the loan. It was agreed that if Douglas Hayes was unable to pay the note the parties would attempt to sell the land and if unsuccessful Riceacres would assume the payment of the loan and Douglas Hayes would transfer his one-half interest to Riceacres.
The evidence shows that from the beginning of the loan the land did not produce sufficient revenue to make the annual payments on the loan. Douglas Hayes was not able to make the payment due September 1, 1984 and a buyer for the property was sought. The exact date Douglas Hayes' brother-in-law, Robert Guillory, entered the picture is not clear from the evidence. Evidently discussions for the purchase of a portion of the property began sometime late in 1984 as the Federal Land Bank records indicate that on December 27, 1984 it issued to Douglas Hayes a Notice of Forebearance on the September payment until January 10, 1985. The Notice indicated a request for additional time was based on the anticipated receipt of earnest money on the sale of land. This was confirmed in a letter from the Federal Land Bank to Douglas Hayes dated January 10, 1985.

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Bluebook (online)
576 So. 2d 1136, 1991 WL 33666, Counsel Stack Legal Research, https://law.counselstack.com/opinion/guillory-v-hayes-lactapp-1991.