Lee v. Manning

505 So. 2d 902
CourtLouisiana Court of Appeal
DecidedApril 1, 1987
Docket18585-CA, 18586-CA
StatusPublished
Cited by4 cases

This text of 505 So. 2d 902 (Lee v. Manning) 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
Lee v. Manning, 505 So. 2d 902 (La. Ct. App. 1987).

Opinion

505 So.2d 902 (1987)

J.S. LEE, Plaintiff-Appellee,
v.
Verlee MANNING, Defendant-Appellant.
Verlee MANNING, Plaintiff-Appellant,
v.
GULF SOUTH CAPITAL, INC., Defendant-Appellee.

Nos. 18585-CA, 18586-CA.

Court of Appeal of Louisiana, Second Circuit.

April 1, 1987.

*903 Levy, James & Shealy by Robert W. Levy, Rushton, for J.S. Lee and Gulf South Capital, Inc.

Shotwell, Brown & Sperry by Francis C. Broussard, and George Wear, Jr., Monroe, for Verlee Manning.

Before HALL, C.J., and MARVIN and NORRIS, JJ.

HALL, Chief Judge.

J.S. Lee filed a partition suit in 1981 against his former wife, Verlee Manning, seeking to be declared the owner of an undivided one-half interest in a forty acre tract of land located in Ouachita Parish acquired in the wife's name during the existence of the community of acquets and gains established by their marriage in 1953. In a separate proceeding, which was consolidated for trial with the partition action, Mrs. Manning sought to cancel a sale by her former husband of his interest to the minerals in the forty acre tract of land to Gulf South Capital, Inc. on the grounds that the tract of land was her separate property. Prior to trial, Lee died and his daughter, Delores Rhodes, was substituted as party plaintiff. After trial, the district court found the former wife failed to overcome the presumption that property acquired during marriage is community property. Judgment was rendered recognizing Delores Rhodes as the owner of an undivided one-half interest in the property, subject to a mineral deed from Lee to Gulf South Capital, Inc., and rejecting Verlee Manning's demands against Gulf South. From this judgment, Mrs. Manning appealed.

*904 The question involved is whether the forty acre tract of land was community property or the separate property of the wife.

Lee and Manning were married twice, once in August, 1953 and again in July, 1954 after a problem with Lee's divorce from a previous wife was resolved. Three weeks after their remarriage, Mrs. Manning acquired the property in dispute for $3,000.00 cash. In the act of sale the purchaser was designated as "Verlee Richardson, a divorced woman." Mrs. Manning borrowed $1,800.00 of the purchase price from Mason and Pearson Mortgage Company and agreed to repay the loan in monthly installments of $40.00. Manning candidly stated that the installment notes were paid primarily from her earnings as a schoolteacher. The source of the $1,200.00 down payment is in dispute. The background facts are recited in greater detail in the trial court's written reasons for judgment, a copy of which is attached as an appendix to this opinion.

A strong presumption exists that all property acquired by either spouse during the existence of their marriage becomes an asset of the community. Former LSA-C.C. Arts. 2334, 2402, and 2405 (See revised Art. 2340). Houghton v. Hall, 177 La. 237, 148 So. 37 (1933); Perkins v. Ray, 365 So.2d 1189 (La.App. 3d Cir.1978). The burden of overcoming the presumption of the community nature of property acquired during marriage rests upon the party asserting its separate and paraphernal nature. To satisfy this burden of proof the evidence must be clear, positive, and legally certain. Succession of Adger, 457 So.2d 146 (La.App. 2d Cir.1984). In evaluating the evidence, some allowance must be made where the purchase occurred many years prior to the assertion of a claim. Southwest National Production Co. v. Anderson, 239 La. 490, 118 So.2d 897 (1960). See also Cooper v. Heirs of Cooper, 421 So.2d 314 (La.App. 1st Cir.1982).

In order to establish the separate or paraphernal nature of immovable property acquired during the community in her own name, a wife must prove (1) the paraphernality of funds used for the purchase; (2) her individual administration of the funds; and (3) her investment of the money. Curtis v. Curtis, 403 So.2d 56 (La.1981).

Under the jurisprudence prior to 1981, in the case of a purchase on credit the wife also had to prove that the property afforded sufficient security for the credit portion, and that she had sufficient separate revenue to be reasonably certain of being able to meet the deferred payments. Monk v. Monk, 243 La. 429, 144 So.2d 384 (1962). In Curtis v. Curtis, supra, the Supreme Court eliminated this requirement in light of modern economics and social realities, holding that where the wife initially acquires property solely with separate funds used for the down payment, the property is her separate property and if she later uses community funds to pay the credit portion of the purchase price, her separate debt, she is obligated to reimburse the community for that amount. See Spaht, Matrimonial Regimes, Developments in the Law, 1980-81, 42 La.L.Rev. 347 (1981) and Comment, Curtis v. Curtis: An Unsettling Community Property Precedent, 28 Loy.L. Rev. 315 (1982).

The transaction in this case was actually a cash sale for $3,000.00. However, the evidence shows that Mrs. Manning financed $1,800.00 of the purchase price through a mortgage loan payable in monthly installments. We perceive no difference between this kind of transaction and a purchase on credit.

Accordingly, the inquiry in this case focuses on the source or nature of the $1,200.00 cash paid by Mrs. Manning for the purchase of the subject property. There is little or no evidence to support a conclusion that the funds used by her to purchase the property were her separate funds.

Mrs. Manning did not testify that she had accumulated any savings or separate funds prior to her marriage to Lee. The only indication of that is her testimony that she had $2,000.00 available to try to save the property during the foreclosure proceedings, which commenced about the time of or shortly after her first marriage *905 to Lee. This testimony, however, was extremely vague and indefinite and there was no evidence that she retained those funds separate from her earnings after her marriage. During the year after her marriage until the time of the purchase of the property, Mrs. Manning, according to her testimony, had income of several thousand dollars, consisting primarily of her teaching salary and rental income, all of which belonged to the community as an effect of the marriage, whether valid or putative. Former LSA-C.C. Arts. 2334 and 2386; LSA-C.C. Arts. 117 and 118; Succession of Adger, supra.

There is simply no substantial evidence, not even Mrs. Manning's own testimony, that the cash portion of the sales price was paid entirely, or even partially, with funds that were legally classified as her separate funds. Although perhaps not relevant under the Curtis v. Curtis decision, it is clear that the credit portion was repaid out of her earnings which were community funds, at least until the parties separated sometime between 1956 and 1959. The trial court correctly found that the parties were not living separate and apart in the legal sense prior to 1956 even though they seldom stayed together because of Lee's stay in the hospital, attendance at L.S.U., and teaching in various areas, while Mrs. Manning taught school in Monroe. They maintained a marital relationship during that time. Former LSA-C.C. Art. 2334.

Mrs. Manning failed to prove that the property was acquired with her separate funds. The judgment of the district court is correct and is affirmed, at appellant's costs.

AFFIRMED.

APPENDIX

REASONS FOR JUDGMENT

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Bluebook (online)
505 So. 2d 902, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lee-v-manning-lactapp-1987.