Hall v. Baker

164 So. 777, 183 La. 714, 1935 La. LEXIS 1769
CourtSupreme Court of Louisiana
DecidedDecember 2, 1935
DocketNo. 33443.
StatusPublished
Cited by1 cases

This text of 164 So. 777 (Hall v. Baker) 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
Hall v. Baker, 164 So. 777, 183 La. 714, 1935 La. LEXIS 1769 (La. 1935).

Opinion

HIGGINS, Justice.

This is an action by the plaintiff to annul or rescind a purported sale by her to the defendant of a farm containing 199 acrés, in the parish of Caddo, on the ground that defendant fraudulently induced her to sign an act of sale instead of a second mortgage, as was agreed upon, and, in the alternative, for lesion beyond moiety.

The defendant denied the allegations of the petition and averred that the sale was bona fide, and the consideration therefore represented the value of the property at the time it was sold, on May 27, 1932.

There was judgment in favor of the defendant, dismissing the suit, and the plaintiff has appealed.

The record shows that plaintiff inherited the property in question from her parents when she was about 8 years of age; that she lived with the defendant and his wife, who was plaintiff’s first cousin, practically up to the time of her marriage in 1922; that there Were several children born of her marriage, and plaintiff, her husband, and children lived on the farm for about 8 years prior to the time of the alleged sale; that on May 5, 1928, plaintiff negotiated a loan with the Prudential Insurance Company of America, for the sum of $2,000, maturing April 1, 1938, bearing 6 per cent, interest, payable annually on the 1st of April; that in April, 1932, the insurance company was pressing the plaintiff for the annual interest payment of $108, and threatened foreclosure proceedings; that the taxes were likewise due and unpaid, amounting to $48; and that, due to adversity and sickness, plaintiff and her husband were unable to meet the payments and appealed to the defendant to make them a loan of $160.46, with which to pay the interest and taxes.

Plaintiff and her husband testified that the defendant agreed to make the loan and to take, as security therefor, a second mortgage on the property and a lien on the crop located on the farm, for which plaintiff and her husband gave a note of $175.

Defendant testified that he refused to make the loan, but agreed to purchase the property by assuming the balance of the *717 mortgage amounting to the sum of $1,-960.46, and a cash payment of $160.46, or a total of $2,120.92; that on May 13, 1932, he took plaintiff and her husband, in his car, to the office of the clerk of the district court, and there had the deputy clerk of court pass an act of sale and assumption from plaintiff’s husband to himself, for the price agreed upon; that the act was duly recorded; that shortly thereafter he was advised that, as the property had been inherited by the plaintiff,' the sale was defective and that the wife and not the husband was the owner of the property; that defendant and his wife went to the plaintiff’s home and defendant’s wife remained with plaintiff’s children, while she and her husband went with defendant to a notary, whose office was in a bank building in Shreveport, where an act of sale was passed on May 27, ■1932, by plaintiff to defendant, upon the same terms as the previous one, and it was also duly recorded.

The plaintiff and her husband remained on the property, according to their version, under the belief that they had only signed a mortgage; having failed to read the papers on account of their implicit confidence in the defendant and lack of knowledge of legal matters. The defendant’s statement is to the effect that the plaintiffs remained on the property as tenants, as shown by the $175 rent note for the year 1932, as well as a letter which the plaintiff’s husband had written to the defendant on January 3, 1933, in which he stated that he was willing to buy part of the property back, or rent on a basis of sharing the crop.

On March 27, 1933, defendant sold the property to Justin A. Taylor for the sum of $3,000, $300 cash and $2,700, on terms, secured by a vendor’s lien and mortgage.

Plaintiff and her husband refused to move from the property and appear to have remained in possession of the farm up until the time the present suit was instituted on December 30, 1933, although the defendant collected rent, which was represented by cotton produced on the farm, from other parties who were tenants thereon, prior to the time this controversy arose.

It is admitted that the $160.46 was not paid to the plaintiff, but was used by defendant to pay the taxes and accrued interest on the mortgage.

After the case was submitted, but before a decision was rendered, Taylor, who was made a defendant, reconveyed the property to Dr. Baker, who had the case reopened, and filed a motion alleging that he had reacquired the property, and, if the court found from the evidence that there was lesion beyond moiety, defendant elected to rescind the sale from plaintiff to himself, upon plaintiff returning the consideration paid her, the taxes paid for the years 1932 and 1933, and the interest paid upon the mortgage to the Prudential Insurance Company of America. Taylor was dismissed from the case as a defendant not having any further interest.

Our views are in accord with those of the trial judge; that the evidence is insufficient to establish the alleged fraud, because, on the one hand you have the *719 testimony of the plaintiff and her husband, and, on the other, the testimony of the defendant and his wife, corroborated by the two acts of sale and the letter written by the plaintiff’s husband to the defendant, offering to purchase a part of the property or to rent it, and the testimony of other witnesses, that plaintiff did not complain of the fact that a sale, instead of a mortgage, was passed, until several months later.

Article 1860 and the relevant part of 1861 of the Revised Civil Code, on the subject of “lesion,” read, respectively, as follows:

“1860. Lesion is the injury suffered by one who does not receive a full equivalent for what he gives in a commutative contract. The remedy given for this injury, is founded on its being the effect of implied error or imposition; for, in every commutative contract, equivalents are supposed to be given and received.
“1861. The law, however, will not release a person of full age, and who is under no incapacity, against the effect of his voluntary contracts, on account of such implied error or imposition, except in the two following cases:
* * *
“2. In sales of immovable property, the vendor may be relieved, if the price given is less than one-half of the value of the thing sold; but the sale can not be invalidated for lesion to the injury of the purchaser.”

See, also, articles 2589 and 2590, R.C.C.

The issue, therefore, is whether or not plaintiff, as vendor, received less than one-half of the value of the immovable property sold to the defendant. Hyde v. Barron, 125 La. 227, 51 So. 126.

In the case of Hickman v. Washington, 122 La. 945, at page 951, 48 So. 333, 335, the court said:

“The last expression of opinion by this court on that subject will be found in Succession of Witting, 121 La. 501, 46 So. 606 [15 Ann. Cas. 379], and Girault v. Feucht, 120 La. 1070, 46 So. 26. In the first of these two mentioned cases this court declared that:

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Bluebook (online)
164 So. 777, 183 La. 714, 1935 La. LEXIS 1769, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-baker-la-1935.