Ingram v. Freeman

326 So. 2d 565
CourtLouisiana Court of Appeal
DecidedApril 7, 1976
Docket5308
StatusPublished
Cited by17 cases

This text of 326 So. 2d 565 (Ingram v. Freeman) 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
Ingram v. Freeman, 326 So. 2d 565 (La. Ct. App. 1976).

Opinion

326 So.2d 565 (1976)

Covey W. INGRAM, Plaintiff-Appellee,
v.
Joe FREEMAN et al., Defendants-Appellants.

No. 5308.

Court of Appeal of Louisiana, Third Circuit.

February 4, 1976.
Rehearings Denied March 4, 1976.
Writs Refused April 7, 1976.

Watson, Murchison, Crews & Arthur by R. Raymond Arthur, Gahagan & Gahagan by Russell E. Gahagan, Natchitoches, for defendants-appellants.

Edwin Dunahoe, Natchitoches, Henry A. Politz, Shreveport, for plaintiff-appellee.

Before CULPEPER, DOMENGEAUX and PAVY, JJ.

DOMENGEAUX, Judge.

This is an action to annul a sale as being a simulation. Plaintiff-appellee, Covey Ingram, obtained an award for personal injuries inflicted upon him by the defendant-appellant, Joe Freeman. In the same suit the plaintiff also obtained a judgment annulling the transfer of property by defendant Freeman to his sister and co-defendant, Pearl Freeman Jones. From this latter judgment annulling the sale of the *566 property between them, Pearl Freeman Jones and Joe Freeman have appealed. Plaintiff has answered the appeal seeking a judgment holding Pearl Freeman Jones liable in solido with her brother, Joe Freeman, for the amount of the injuries caused to plaintiff by the latter.

On August 12, 1970, Joe Freeman and his minor son, Donnie Joe Freeman, brutally and severely beat the plaintiff in a thirty minute attack near Robeline, Natchitoches Parish, Louisiana. The beating was so extensive that his family physician of thirteen years was unable to recognize him while rendering initial treatment at the emergency room of the Natchitoches Parish Hospital.

The following day Joe Freeman and his sister, Pearl Freeman Jones, consulted an attorney in the City of Natchitoches and had him prepare a document whereby the former executed a mortgage from himself to a future holder for the sum of $15,000.00. This mortgage encompassed a certain 80 acre tract of land in Natchitoches Parish, including all buildings and improvements thereon. This acreage constituted essentially all of Joe Freeman's property. The act of mortgage made reference to a promissory note in the amount of $15,000.00, payable to the maker (Freeman) and endorsed by him in blank. This note was allegedly given to Pearl Freeman Jones for future advances.

On August 27, 1970, the note was surrendered to the Clerk of Court in Natchitoches Parish and the mortgage on the abovementioned property was cancelled. On that day the defendant appeared before the same attorney and executed an act of sale by which the formerly mortgaged property (with the addition of all furniture and fixtures located in the house situated on the premises and all farm equipment located "on the place" including a tractor, disc, buster, and plows) was sold to Pearl Freeman Jones by her brother for the consideration of $15,000.00 "Cash in hand paid, the receipt of which is hereby acknowledged".

Several months thereafter plaintiff filed suit for damages resulting from the beating and further sought to annul the sale of this property between the defendants. Subsequently the District Court rendered judgment in plaintiff's behalf against Joe Freeman and Donnie J. Freeman in solido for $37,917.75. That portion of the judgment has not been appealed.

We are presented with two major issues for determination by this appeal:

1. Was the sale of the abovementioned property from Joe Freeman to Pearl Freeman Jones a simulation?

2. If said sale was a simulation, is Pearl Freeman Jones liable in solido for the total amount of the judgment originally rendered against Joe Freeman?

There are two manners in which a presumption of simulation arises. The first is based upon Civil Code Article 2480 which reads:

"Art. 2480. Retention of possession by seller, presumption of simulation

In all cases where the thing sold remains in the possession of the seller, because he has reserved to himself the usufruct, or retains possession by a precarious title, there is reason to presume that the sale is simulated, and with respect to third persons, the parties must produce proof that they are acting in good faith, and establish the reality of the sale."

See Radovich v. Jenkins, 123 La. 355, 48 So. 988 (La.1909); Harper v. Rosenblath, 227 La. 507, 79 So.2d 863 (La.1955); Dare v. Myrick, 226 La. 732, 168 So.2d 845 (La.App. 2nd Cir. 1964); Beatty v. Beatty, 186 So.2d 855 (La.App. 1st Cir. 1966); and Succession of Elrod, 218 So.2d 83 (La.App. 4th Cir. 1969).

The second basis for a presumption of simulation arises when the party asserting *567 the simulation produces evidence which creates a highly reasonable doubt or suspicion concerning the honesty or validity of the transaction. Such a showing establishes a prima facie case of simulation and the burden is thereby shifted to the defendants to demonstrate the validity of the transaction under attack. Smith v. Smith, 239 La. 688, 119 So.2d 827 (La.1960); Teche Concrete, Inc. v. Moity, 168 So.2d 347 (La.App. 3rd Cir. 1964), writ refused 247 La. 251, 170 So.2d 509; Dare v. Myrick, supra; Laborde v. Dauzat, 158 So.2d 637 (La.App. 3rd Cir. 1963), writ refused 245 La. 731, 160 So.2d 595; Landry v. Landry, 140 So.2d 706 (La.App. 3rd Cir. 1962); Howard v. Howard, 96 So.2d 345 (La.App. 2nd Cir. 1957).

An analysis of the facts relevant to this litigation indicates the existence of a sufficient basis for invoking either of the abovementioned presumptions of simulation, thus shifting the burden of proof to the party claiming the validity of the transaction.

Civil Code Article 2480 speaks of retention of possession by a "precarious title". Article 3556 (25) defines precarious possession as follows:

"25. Precarious.—That possession is called precarious, which one enjoys by the leave of another, and during his pleasure.
The title which excludes the ownership, such as a lease, is also called precarious."

The very day of the sale, August 27, 1970, Joe Freeman and Pearl Freeman Jones entered into a lease agreement whereby the former was to lease the property transferred in the sale from his sister for a period of one year at a rate of $25.00 per month.[1] The lessee retained an option to renew the lease for an additional one year period provided that written notice was given to the lessor within thirty days of the termination of the original lease. The lease was prepared by the same attorney and notary who drew up the mortgage and sale involving said property. In fact, the "vendor-lessee", Joe Freeman, never surrendered the property to his sister. Clearly Mr. Freeman continued his occupancy by virtue of the purported lease in such a fashion as to raise the presumption of a simulation as described in Article 2480.

The circumstances surrounding the "sale" were also of such a nature as to raise a reasonable doubt as to the honesty of the parties. The consideration for the sale was allegedly made in two ways. First, a cancelled check for the amount of $5,000.00 was introduced into evidence. The check is drawn on the City Bank and Trust Company of Natchitoches, Louisiana, dated April 11, 1963, and shows Joe Freeman as the payee and J. L. Jones as the drawer. This check was allegedly a loan made by J. L. Jones, the brother-in-law of Joe Freeman and husband of Pearl Freeman Jones. However, there was no evidence of the loan such as a note or mortgage.

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Bluebook (online)
326 So. 2d 565, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ingram-v-freeman-lactapp-1976.