Luna v. Atchafalaya Realty, Inc.

325 So. 2d 835
CourtLouisiana Court of Appeal
DecidedJanuary 12, 1976
Docket10581
StatusPublished
Cited by10 cases

This text of 325 So. 2d 835 (Luna v. Atchafalaya Realty, 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
Luna v. Atchafalaya Realty, Inc., 325 So. 2d 835 (La. Ct. App. 1976).

Opinion

325 So.2d 835 (1976)

Wilburn L. LUNA
v.
ATCHAFALAYA REALTY, INC. and Herbert H. Estave.

No. 10581.

Court of Appeal of Louisiana, First Circuit.

January 12, 1976.

Dale Martin, Morgan City, for appellant.

Peter P. Guarisco, Morgan City, for Atchafalaya Realty, Inc.

C. E. Bourg, II, Morgan City, for Herbert H. Estave.

Before ELLIS, BLANCHE and LOTTINGER, JJ.

BLANCHE, Judge.

Plaintiff-appellant, Wilburn L. Luna, appeals a judgment of the Sixteenth Judicial District Court, which dismissed his suit for the return of a real estate sale deposit and for damages. He further appeals the granting of the defendants' reconventional demands which ordered the forfeiture of said deposit to defendant-appellee, Herbert H. Estave, and granted judgment in favor of defendant-appellee, Atchafalaya Realty, Inc., against plaintiff for a real estate commission and attorney's fees, with legal interest on both sums from the date of judicial demand. We affirm.

On March 20, 1973, Luna submitted a written offer to purchase real estate located at 1800 Filmore Street, Morgan City, *836 Louisiana, from Estave for the sum of $27,300. The offer was on a form furnished by Atchafalaya Realty and was accepted on March 20 by its President, H. W. Bergeron, Jr., as listing agent on behalf of the owner. Additionally, Luna gave a $500 deposit by check payable to the order of Atchafalaya Realty.

With regard to said deposit, the agreement contained the following provisions:

"In the event the purchaser fails to comply with this agreement within the time specified, the seller shall have the right to declare the deposit, ipso facto, forfeited, without formality beyond tender of title to purchaser; or the seller may demand specific performance.
"In the event the seller does not comply with this agreement within the time specified, the purchaser shall have the right either to demand the return of his deposit in full plus an equal amount to be paid as penalty by the seller; or the purchaser may demand specific performance, at his option." (Exhibit Luna No. 1)

The agreement provided that the act of sale was to be passed "on or prior to April 7, 1973," and that occupancy of the premises would also be delivered no later than April 7.

The sale was conditioned upon the ability of the plaintiff-purchaser to obtain a $21,800 mortgage loan at a rate of interest not to exceed 7 and ¾ percent per annum, payable in monthly installments over a period of twenty-five years. Said loan was to be obtained within twenty-one days of acceptance of the offer.

The same day on which the agreement to purchase was signed, Bergeron introduced Luna to officials at Atchafalaya Savings and Loan Association for the purpose of obtaining the desired loan on the property. The loan was approved on March 30, and Luna signed the truth-in-lending disclosure statement on that same day. However, due to the requirement of a title examination and preparation of the closing documents, no commitment was made to advance the required money to the plaintiff until April 13. Thereafter, the closing and sale were set for April 16 at the office of Atchafalaya Savings and Loan.

Present at the closing meeting of April 16 were the closing attorney, Herbert H. Duncan; the vendors, Herbert Estave and his wife; the realtor, Howard Bergeron; Lee J. Guarisco and his staff on behalf of the savings and loan; and the vendee, Luna. Prior to closing the sale, Luna was requested by the officer of the savings and loan to obtain the presence of his wife so that her signature, too, could be obtained. He then left to search for her but could not find her and thereafter did not return.

At that point, because of other business commitments, Estave and his wife signed the blank sale form and departed.

Bergeron requested Luna to return to Atchafalaya Savings and Loan on the next day, April 17, to close the loan, but Mrs. Luna was ill and the appointment was cancelled. Another appointment for Luna to sign the sale also resulted in his failure to attend.

After the failure of this last attempt to close the sale, Bergeron notified Luna by letter that he should either take title to the property or forfeit his $500 deposit. At that point Luna decided he would not purchase the property. Subsequently, he brought suit against Atchafalaya Realty for return of the $500 deposit, for $500 stipulated as a penalty in accordance with the terms of the contract, and for legal expenses of $139.20 incurred by Luna for preparing the proposed act of sale, or a total of $1,139.20.

The main thrust of plaintiff's suit is that Estave failed to pass title to the subject property on or before April 7, 1973, therefore *837 entitling plaintiff to a return of his deposit plus additional damages.

Pursuant to an exception of nonjoinder of necessary and/or indispensable party filed by Atchafalaya Realty, the court ordered that defendant Estave be joined as a co-defendant.

Atchafalaya Realty reconvened against Luna for a realtor's commission of $1,638, plus all fees and costs incurred in enforcing collection of the commission, including reasonable attorney's fees, and general damages in the sum of $3,000.

Estave reconvened for the $500 deposit as per the agreement; for $1,676 representing money allegedly lost when he was subsequently forced to sell the property for less money to another purchaser; for $26 representing the premium for insurance coverage upon the property which he was forced to continue due to failure to pass the sale; for $750 rental expenses which he incurred incidental to vacating the property in preparation for the sale to plaintiff, and for $150 as moving expenses in connection with the move to the rented quarters.

The trial judge held that since neither party put the other in default as of April 7 the contract was still viable until such time as either of the parties demanded performance and that performance was rejected.

He found that under Section 2 of Civil Code Article 1911 the person demanding performance can do so even though it is beyond the date specified for performance in the contract, as long as he is not himself in default. He then found that Estave's execution of the blank sale form on April 16 amounted to a tender of title to plaintiff and that plaintiff's failure to take title put him in violation of the agreement.

After finding that the plaintiff was already in default prior to bringing the instant suit, the Court held that the terms of the contract required forfeiture of the deposit to defendant Estave but rejected Estave's other reconventional demand, being of the opinion that the agreement controlled the measure of damages between the parties.

Although no reasons were given therefor, the trial court obviously allowed Atchafalaya Realty to recover its fees and expenses from plaintiff based upon the following language in the agreement to purchase:

"If this offer is accepted, seller agrees to pay the agent's commission of 3% which commission is earned by agent when this agreement is signed by both parties and when the mortgage loan, if any, has been secured.
"Either party hereto who fails to comply with the terms of this offer, if accepted, is obligated and agrees to pay the agent's commission and all fees and costs incurred in enforcing collection and damages." (Exhibit Luna No. 1)

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325 So. 2d 835, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luna-v-atchafalaya-realty-inc-lactapp-1976.