Hessick v. Petro Publications, Inc.

684 So. 2d 466, 1996 WL 663811
CourtLouisiana Court of Appeal
DecidedNovember 8, 1996
Docket96 CA 0034
StatusPublished
Cited by11 cases

This text of 684 So. 2d 466 (Hessick v. Petro Publications, Inc.) 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
Hessick v. Petro Publications, Inc., 684 So. 2d 466, 1996 WL 663811 (La. Ct. App. 1996).

Opinion

684 So.2d 466 (1996)

Terry F. HESSICK, etc.
v.
PETRO PUBLICATIONS, INC., et al.

No. 96 CA 0034.

Court of Appeal of Louisiana, First Circuit.

November 8, 1996.
Rehearing Denied January 7, 1997.

*468 Ralph Brewer, Baton Rouge, for Plaintiffs-Appellees Carolyn Leftwich, Diane Carter, Sterling Core.

James McNeill, III, Baton Rouge, for Defendant-Appellant Steve LeBlanc, Petro Publications, Inc.

DeLinda L. Phillips, Dowden, in Pro. Per.

Before LOTTINGER, C.J., and FOIL and FOGG, JJ.

LOTTINGER, Chief Judge.

Plaintiff, Terry F. Hessick, brought this action as executor of George Emitte Core Jr.'s estate against defendants, Petro Publications, Inc., DeLinda Phillips and Steve LeBlanc, seeking payment on a contract of sale. The trial court ruled in favor of substituted plaintiffs, Carolyn Leftwich, Diane Carter and Sterling Core.[1] Defendants, Petro Publications and LeBlanc appeal.

FACTS AND PROCEDURE

The contract sued upon purportedly transferred the succession's interest in two businesses, Petro Check News and Petro Check Services, to Petro Publications. The purchase price was guaranteed by Petro Publications' two stockholders, Phillips and LeBlanc. The agreement specified that the sale was "subject to notice requirements and approval of the 19th Judicial District Court." Although defendants assumed control of the businesses, the sale was never approved by the court and the purchase price was never paid.[2]

This suit was filed by Hessick, on behalf of the estate, seeking payment of the purchase price. In defense, LeBlanc filed a peremptory exception raising the objections of no right of action and no cause of action. LeBlanc's exception and subsequent writ application to this court were denied and, following trial on the merits, judgment was entered in favor of substituted plaintiffs. Petro Publications and LeBlanc filed this appeal asserting that the trial court erred in:

*469 (1) finding enforceable an offer to buy succession property when the requirements of law, pertaining to court approval and notice by publication had not been complied with by the succession representative.
(2) finding the guaranty by LeBlanc enforceable.
(3) refusing to allow LeBlanc to testify in his own behalf at trial.
(4) not finding Hessick liable to defendants-appellants for the damages they sustained.

Substituted plaintiffs answered the appeal asserting that the trial judge erred only in failing to impose sanctions against defendants under La.Code Civ. P. art. 863. They also seek an award of damages for frivolous appeal.

ERRORS ONE AND TWO

At trial and on appeal defendants asserted that the contract of sale was unenforceable because court approval had not been obtained as required by La.Code Civ. P. art. 3281.[3] The trial judge concluded that the contract was enforceable and that the issue of court approval had been decided by this court when we denied LeBlanc's writ application. We find error in these conclusions.

In applying for supervisory writs, LeBlanc sought review of the trial court's denial of his exception of no right/no cause of action. After reviewing the trial court's denial of the exception, we concluded that, "[t]he petition states a course of action; the issues raised by relator pertain to the merits of this action." Hessick v. Petro Publications, Inc., 92-1409 (La.App. 1st Cir. 3/1/93).

In passing on an exception of no cause of action, courts consider only the allegations of plaintiff's petition together with accompanying documents which are made a part thereof; no evidence is admissible to support or defeat the exception. All well-pleaded facts in the petition, as well as those appearing in the accompanying documents must be accepted as true. Didier v. Department of State Civil Service, 446 So.2d 886, 887 (La.App. 1st Cir.1984); Gustin v. Shows, 377 So.2d 1325, 1327 (La.App. 1st Cir.1979); Godwin v. East Baton Rouge Parish School Board, 372 So.2d 1060, 1062 (La. App. 1st Cir.), writ denied, 373 So.2d 527 (La.1979).

In this case, the petition states that a contract of sale was entered into between the parties. It describes the terms of payment and alleges that payment has not been made. The petition is completely silent with regard to the issue of court approval. In the absence of allegations of fact, we could not have considered the issue of court approval during our review of the trial court's denial of the exception. Because the issue was not decided by this court, it was not "the law of the case" and was properly before the trial court during the trial on the merits.

Following his conclusion that the issue of court approval was not properly before the trial court, the trial judge added that, "[i]n any event, this court notes that no evidence was introduced [at] the trial of this matter which would indicate that the court approval provision was included within the Contract of Sale for any purpose other than compliance with LSA C.C.P. art 3281 et. seq.... This court would be hard pressed to sanction defendant's attempt to seize upon a provision of the Act of Sale which was included therein for no other purpose than protection of the other contracting party."

In determining whether the contract is enforceable by substituted plaintiffs, we are guided by the Louisiana Supreme Court's decision in Hamilton v. McKee, 371 So.2d *470 1115 (La.1979). The issue therein was the effect of an agreement to buy and sell succession property which was not authorized by the court until after the agreement was made. Id. at 1117. The court concluded that the subsequently approved agreement was not enforceable because the succession representative did not have the power to alienate succession property without first obtaining court authority. Id. at 1119. The court further noted that the contract was not "ratified" by the succession representative upon obtaining the subsequent authority to sell. Id. Based on these conclusions, the court held that the contract was unenforceable. Id. at 1120.

In Hamilton the supreme court discussed, at length, the requirement of court approval for the private sale of succession property:

Act 290 of 1938 permitted for the first time private sales of all kinds of succession property.... The Code of Civil Procedure retained provisions permitting succession representatives ... and tutors of minors ... to sell property under their administration, but only with court authorization.
The reason for the requirement of public sale for property under administration, and for its long life as the only means of disposition of such property, is apparent. Public sale was called a "protective measure" by proponents of the private sale statute ... who argued that "the same protection can be maintained in a private sale"—the protection, of course, of public advertisement and court approval before the representative could possess authority to sell. Only such protection could prevent the dreaded maladministration—the disposition of succession property or minors' property for inadequate consideration.
As early as 1831 a sale of succession property without a court order was held to be a nullity in Elliott v. Labarre, 2 La. 326 (1831). Robert v. Brown, 14 La.Ann. 597 (1859) held the same; the following year Smelser v. Blanchard, 15 La.Ann.

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Cite This Page — Counsel Stack

Bluebook (online)
684 So. 2d 466, 1996 WL 663811, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hessick-v-petro-publications-inc-lactapp-1996.