Orleans Parish School Bd. v. City of New Orleans

700 So. 2d 870, 96 La.App. 4 Cir. 2664, 1997 La. App. LEXIS 2168, 1997 WL 560063
CourtLouisiana Court of Appeal
DecidedSeptember 3, 1997
Docket96-CA-2664
StatusPublished
Cited by15 cases

This text of 700 So. 2d 870 (Orleans Parish School Bd. v. City of New Orleans) 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
Orleans Parish School Bd. v. City of New Orleans, 700 So. 2d 870, 96 La.App. 4 Cir. 2664, 1997 La. App. LEXIS 2168, 1997 WL 560063 (La. Ct. App. 1997).

Opinion

700 So.2d 870 (1997)

ORLEANS PARISH SCHOOL BOARD
v.
CITY OF NEW ORLEANS and New Orleans Land Company.

No. 96-CA-2664.

Court of Appeal of Louisiana, Fourth Circuit.

September 3, 1997.
Rehearing Denied November 14, 1997.

*871 Robert M. Rosenberg, Larry C. Becnel, Polack, Rosenberg, Endom & Riess, New Orleans, for Plaintiff/Appellant Orleans Parish School Board.

Charles Emile Bruneau, Jr., William T. Tête, Medo & Tête, New Orleans, for Defendant/Reconvenor/Appellee Hedwig, Inc.

ARMSTRONG, Judge.

This case involves a donation of immovable property made decades ago to the City of New Orleans as the predecessor in interest to the Orleans Parish School Board. The plaintiff-appellant School Board, which apparently wishes to sell the property at issue, seeks a declaratory judgment that, because of prescription of the donor's right of revocation, or by operation of certain statutes, its ownership of the property at issue is not subject to the conditions of the Act of Donation. Defendant-reconvenor-appellee Hedwig, Inc., as the successor in interest to the donor, New Orleans Land Company ("NOLC"), seeks to revoke the donation on the ground that the School Board is no longer using the property at issue in accordance with the conditions of the donation. The trial court held that the right of revocation is not prescribed, that the property at issue is still subject to the conditions of the Act of Donation, and that the donation should be revoked and the property at issue returned to Hedwig as the successor in interest to NOLC. We find that the trial court was not clearly wrong or manifestly erroneous in holding that the right to revocation is not prescribed, and that the property at issue is still subject to the conditions of the Act of Donation, but we find that the property at issue is still being used by the School Board in accordance with the conditions of the Act of Donation, so we hold that the donation cannot be revoked at this time.

In 1913, the President of NOLC wrote to the Mayor of the City of New Orleans agreeing to donate the property at issue, which is a tract in Lakeview, to the City. The next year, the Lakeview School was built on the site by the School Board which began to use the building as a school. In 1929, it was discovered that no Act of Donation of the property at issue had ever been executed. *872 Thus, an Act of Donation was drawn up, executed and recorded in 1929. NOLC quitclaimed all its property to Hedwig in 1967, at which time NOLC was dissolved. In 1973, the City put title to the donated property in the name of the School Board. After the 1984-85 school year, the School Board ceased to use the Lakeview School building as a school. However, the School Board did make use of the building for an administrative center from 1985 to 1993. In 1993, the School Board ceased to use the building as an administrative center. However, from 1993, the School Board did make use of the building for storage of School Board property and continues to do so.

It is uncontested that the property at issue was donated in 1929. However, the School Board and Hedwig contest the interpretation of the Act of Donation with respect to the condition placed upon the donation. The Act of Donation at one point states that the property is "to be used for school purposes" and at another point states that it is "to be used for public school purposes." The School Board interprets this to mean that the property must be used specifically for a school. The School Board argues that it ceased to use the property for a school in 1985, that the prescriptive period for the right to revoke a donation is five years and that, therefore, the right to revoke prescribed in 1990. The present action was filed in 1996. Hedwig argues that the phrases "school purposes" and "public school purposes" are broad enough that they do not require an actual school to be on the donated property and that the use of the property as a School Board administrative center until 1993 is a school purpose that complies with the condition of the donation. Thus, Hedwig contends that the right to revocation would not prescribe until 1998. The trial court resolved this issue in favor of Hedwig and stated in its Reasons for Judgment that "the phrase public school purposes is indeed ambiguous and would include any general goal, aim, need or interest of the Orleans Parish School Board."

The law applicable is set out in the Civil Code. "The donor may impose on the donee any charges or conditions he pleases, provided they contain nothing contrary to law or good morals." La.Civ.Code art. 1527. "Donation [Donations] inter vivos are liable to be revoked or dissolved on account of the following causes:

... 3. The non-performance of the conditions imposed on the donee." La.Civ.Code art. 1559. "But if the conditions be potestative, that is, if the donee is obliged to perform or prevent them, their non-fulfillment does not, of right, operate a dissolution of the donation; it must be sued for and decreed judicially." La.Civil Code art. 1566. "An action of revocation or rescission of a donation on account of the non-execution of the conditions imposed upon the donee, is subject only to the usual prescription, which runs only from the day that the donee ceased to fulfill his obligations." La.Civ.Code art. 1567. See generally Swaim and Lorio, Louisiana Civil Law Treatise: Successions and Donations § 9.12 (1995).[1]

As the trial court noted, and as the parties appear to agree, the outcome of the prescription issue turns on the interpretation of the phrase "school purpose" in the *873 Act of Donation. The issue of whether or not the language of a contract is ambiguous is an issue of law subject to de novo review on appeal. Terrebonne Fuel & Lube, Inc. v. Placid Refining Co., No. 93-2364 (La.App. 4th Cir. 10/2/96), 681 So.2d 1292, writ denied, No. 96-C-2625 (La. 12/13/96), 692 So.2d 1066. We agree with the trial court that the phrase "school purposes" is ambiguous as to whether or not the use of the donated property for an actual school is required. Thus, it was necessary for the trial court to find, as a matter of fact, the proper interpretation of the phrase "school purposes." "In the interpretation of contracts, the trial court's interpretation of the contract is a finding of fact subject to the manifest error rule." Grabert v. Greco, 95-1781 (La.App. 4th Cir. 2/29/96), 670 So.2d 571, 573. Consequently, we must determine whether the trial court was clearly wrong or manifestly erroneous in finding that the phrase "school purposes" does not require the use of the property for an actual school. Of course, in doing so, we may not simply substitute our own view of the evidence for the trial court's view and we may not disturb the trial court's finding of fact so long as it is reasonable. E.g., Syrie v. Schilhab, No. 96-1027 (La. 5/20/97), 693 So.2d 1173; Stobart v. State, DOTD, 617 So.2d 880, 882 (La.1993); Rosell v. ESCO, 549 So.2d 840, 844 (La.1989). Although the case was submitted to the trial court by means of depositions, stipulations and documentary evidence, rather than live testimony, that does not alter the clearly wrong/manifestly erroneous standard of review. Alexander v. Pellerin Marble & Granite,

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700 So. 2d 870, 96 La.App. 4 Cir. 2664, 1997 La. App. LEXIS 2168, 1997 WL 560063, Counsel Stack Legal Research, https://law.counselstack.com/opinion/orleans-parish-school-bd-v-city-of-new-orleans-lactapp-1997.