Martin Timber Co. v. Pegues

715 So. 2d 728, 1998 La. App. LEXIS 1724, 1998 WL 354964
CourtLouisiana Court of Appeal
DecidedJuly 6, 1998
DocketNo. 30361-CA
StatusPublished
Cited by5 cases

This text of 715 So. 2d 728 (Martin Timber Co. v. Pegues) 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
Martin Timber Co. v. Pegues, 715 So. 2d 728, 1998 La. App. LEXIS 1724, 1998 WL 354964 (La. Ct. App. 1998).

Opinions

hPEATROSS, Judge.

This action involves a contractual interpretation of a timber agreement, captioned by the parties as a “Timber Sale and Lease,” and a determination of the effect of an untimely annual payment by plaintiff Martin Timber Company (“Martin”). Defendant William T. Pegues (“Pegues”) appeals a trial court judgment awarding Martin an additional 90 days to cut and remove specified timber from the tract of land. Determining the contractual agreement between the parties to effectuate both a lease and a sale and finding the doctrine of judicial control to be applicable, we affirm that portion of the judgment awarding Martin additional time to remove the timber. We reverse that portion of the judgment awarding attorney fees to Pegues.

FACTS

Beginning in 1966, Pegues, a landowner and attorney, began contractual dealings with Martin Timber Company concerning his timber lands in DeSoto Parish. Over the next 16-year period, three contracts were entered between the parties affecting the disputed 245 acres or portions thereof, with the final agreement being executed in 1982. Apart from the implications of these contracts, there was little evidence presented at trial detailing the character of the stand of timber existing on the 245-aere tract from time to time and any actual harvesting of timber by Martin. The trial court did hear the testimony of Pegues regarding his intentions for the agreements and the testimony of Martin’s employee, William F. Weiger, who represented the company in the negotiation of the last critical extension of the-parties’ contract in 1982..

The first contract, which has some implications on the parties’ later dealings, was a timber deed dated December 23, 1966. The deed affected a total of |2200 acres, including 120 acres of the land now in dispute. The deed identified as the subject of the sale specifically selected “pine saw log” trees marked with orange paint at the time of the sale. The deed provided Martin a one-year period to cut and remove the trees. Failure to remove the timber in such time period would cause the timber to “revert to and become the property of’ Pegues.

In July 1972, Pegues and Martin executed a longer term agreement (hereinafter the “1972 Agreement”) affecting the same 200 acres, which had been the subject of the 1966 timber deed, and an additional 200 acres of adjacent Pegues lands. This 1972 Agreement could be extended year-to-year until July 1982. The evidence indicates Pegues provided the wording of the 1972 Agreement for use by the parties; and the 1972 Agreement first employed the language, quoted below, which subsequently was used in the 1982 “Timber Sale and Lease” that has become the subject of this dispute. The 1972 Agreement, which applied to all 245 acres now in dispute, was granted for an initial sum of $31,545 and allowed Martin the year-to-year option of extending the time to cut the timber for ten years by paying annual lease renewal payments of $3.54 per acre. Martin paid every annual lease renewal payment and extended the 1972 Agreement out to the maximum term of the contract which was to end on July 1,1982.

In December 1981, the final year of the 1972 Agreement, Mr. Weiger, on behalf of Martin, contacted Pegues offering to extend the sale and lease agreement for up to an additional 15 years for 245 of the 400 acres covered by the 1972 Agreement. Mr. Weiger stated in a December 21, 1981 letter that Martin was “much interested in continuing the growth on the 245-acre block into larger and more usable raw material.” Testimony at-trial indicated that at the time the 1972 Agreement ended in 1982, 1,000,000 board feet of pine was growing on the tract. hUnder an agreement executed in April 1982 (“1982 Agreement”), Martin paid Pegues an initial payment of $63,000. Like the 1972 Agreement, the 1982 Agreement was divided into two sections, which provided, in pertinent part, as follows:

[730]*730 Sale of Timber
... Seller ... does hereby grant, sell, convey and assign unto Buyer, ...: ■
All of the pine and hardwood timber with a diameter of 10 inches and up at the stump, measured 12 inches above the surface of the ground, and that material which is smaller which must be thinned for the purpose of improving the stand, or growing conditions, growing, standing or lying on the ... [245 acres].
Also there is conveyed unto the Buyer the right to enter upon and occupy the premises with all other rights and privileges thereon necessary or needful for the purpose of - cutting, -harvesting, removing and protecting said timber and timber rights and for the purpose of logging of timber on said land.
* *. * * ‘ *
It is understood that the property and rights herein conveyed represent the fair and reasonable value of the timber hereby conveyed and the right to cut and remove said timber under this sale shall terminate on the 1st day of July, 1983. However, the right to cut and remove said timber may be extended by the payment of annual rentals as hereinafter provided.
Lease Rental Agreement
In addition to the sale of timber and timber rights herein provided for, the parties hereto have and do hereby agree , to the following terms and conditions of a lease agreement (the parties being referred to respectively as Lessor and Lessee hereinafter), to-wit:
Lessor does hereby demise, rent, lease and let unto the Lessee for the purpose of growing, protecting, conserving and harvesting timber from all of the lands herein-above described, subject to the following conditions, to-wit:
(1) Term of Lease. This lease shall terminate as to both parties on the 1st day of July 1983, unless on or before that date | ¿¡Lessee shall pay or tender unto Lessor the amount of Two Thousand Four Hundred Fifty and No/100 ($2,450.00) Dollars, which shall extend and continue the lease in full force and effect for twelve (12) months. In like manner and upon like payments or tenders annually on the 1st day of July, the Lessee may maintain the lease in full force and effect for successive periods of twelve (12) months until the final termination of the lease on the 1st day of July, 1997, subject, however, to the further terms and conditions hereinafter stated. Failure to pay any such delay rental payments annually on or before the due date shall ipso facto and without putting in default terminate all rights of Lessee under this lease contract.

The lease section of the 1982 Agreement also contained provisions requiring Martin to operate on the premises with “high standards of professional forestry management and practice, so as to have, at all times on the lands a growing stand of timber.” In the same provision, Martin was granted “the right to reforest or plant trees on any portion of the land to enhance or increase timber production.”

After contracting the 1982 Agreement, Martin timely paid every lease renewal payment until the July 1, 1995 payment, which was paid late. Pegues accepted and negotiated the draft of the 1995 payment without comment.

In 1996, Martin, through a computer error, missed the annual lease renewal payment due on or before July 1,1996. After Pegues’ attorney informed Martin of the delinquency, Martin tendered the $2450 annual lease renewal payment 16 days late, on July 17, 1996. Pegues refused the payment, claiming that the 1982 Agreement had terminated.

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Cite This Page — Counsel Stack

Bluebook (online)
715 So. 2d 728, 1998 La. App. LEXIS 1724, 1998 WL 354964, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-timber-co-v-pegues-lactapp-1998.