Peacock v. Peacock

674 So. 2d 1030, 1996 La. App. LEXIS 849, 1996 WL 229426
CourtLouisiana Court of Appeal
DecidedMay 8, 1996
DocketNo. 28324-CA
StatusPublished
Cited by2 cases

This text of 674 So. 2d 1030 (Peacock v. Peacock) 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
Peacock v. Peacock, 674 So. 2d 1030, 1996 La. App. LEXIS 849, 1996 WL 229426 (La. Ct. App. 1996).

Opinion

JiGASKINS, Judge.

This case involves the validity of two intra family real estate transactions concerning the same tract of immovable property. In the first transaction, the plaintiff, James Roger Peacock (Roger), sold, with right of redemption, to his half brother, Jon Franklin Peacock (Jon), Roger’s interest in a 40-acre tract of land that Roger and Jon owned in indivi-sión. In the second transaction, Jon allegedly sold the entire tract of land to his wife, Sharon, for one dollar and “other valuable consideration.” The plaintiff filed suit to exercise his right of redemption, naming Jon and Sharon as defendants. The trial court found that the sale between Jon and Sharon was an absolute simulation and found that Roger had the right to redeem his interest in the property conveyed to Jon. The defendants appeal. We amend and, as amended, affirm the trial court judgment.

FACTS

In 1990, Roger Peacock needed money for a business venture. He proposed to convey to Jon his one-half interest in forty acres of immovable property they owned in indivisión in Ouachita Parish. Roger proposed to sell his interest to Jon for $8,000, with the right to redeem his interest in the property upon return of the $8,000, together with 5% interest per year. Jon sent Roger a check for $8,000, dated January 13,1990. Roger drafted a “quitclaim deed” dated January 5, 1990, selling his interest in the 40 acres to Jon for $8,000. In the deed, Roger retained a right to redeem his interest in the property by paying Jon $8,000, plus 5% interest within five years from the date of the document, January 5, 1990, if Jon still owned the property at the time Roger sought to redeem his interest. Regarding the right of redemption, the deed provided as follows:

James Roger Peacock reserves the right to repurchase his equal ownership in the above described property from Jon Franklin Peacock for the amount of $8,000 (Eight thousand dollars) plus 5% (Five percent) interest per anum [sic] within five years from the date of this document if he still owns the property at the time.

|2The deed specifically reserved to Jon the right to sell or dispose of the property at Jon’s sole discretion at any time until Roger repurchased his ownership interest. The [1032]*1032deed was drafted by Roger and was notarized, but it was not in authentic form. It does not appear that Jon ever signed the deed.

The deed was not recorded by Jon until April 20, 1994. In the interim, Jon attempted on several occasions to obtain a deed from Roger that did not contain any right of redemption. Jon maintained at trial that the original agreement between the two never contemplated any right of redemption, while Roger insisted that a right of redemption was an essential element of his agreement with Jon. The record contains an undated letter from Jon to Roger referring to two enclosed versions of a cash sale deed, neither of which contained a right of redemption. In the letter Jon stated to Roger, regarding the property, “if you want it back, let me know and it’s yours, we can work out the details then.” Jon testified this language was “tongue in cheek.”

Roger testified that he met with Jon over the Easter weekend in 1994. Roger told Jon at that time that he intended to send him a check for $8,000 and that he intended to exercise his right to redeem his interest in the property. On April 18, 1994, Roger sent a registered letter to Jon with a check for $8,000. The intent was to exercise the right of redemption. For whatever reason, Jon did not pick up the registered letter until April 28, 1994, although testimony indicated that the ordinary mailing time between the two addresses was much shorter. As previously noted, the original “quitclaim deed” was not recorded in Ouachita Parish until April 20, 1994. On April 25, 1994, Jon executed another “quitclaim deed” purporting to transfer all of his interest in the property to his wife, Sharon, for one dollar and other valuable consideration. Subsequently, Roger wrote Jon a letter dated April 30, 1994, indicating that Roger had received the return notice showing |8that Jon had received Roger’s letter of April 18. In the letter, Roger stated that he would pay the 5% interest when Jon executed a deed returning Roger’s interest in the property. On May 2, 1994, Jon sent a letter to Roger, returning the check and informing Roger that the property had been sold. Jon did not tell Roger that the “buyer” was Jon’s wife.

Roger filed suit against Jon and Sharon Peacock on May 27, 1994, seeking to enjoin the defendants from alienating the property, seeking recognition of Roger’s right of redemption, and seeking an order that the defendants convey to him his interest in the property upon payment of the agreed price.

Jon and Sharon Peacock answered and filed a reconventional demand, seeking a reformation of the original deed to delete the right of redemption. Roger’s answer to the reconventional demand asked that the quitclaim deed between Roger and Jon be rescinded for lesion beyond moiety. This claim was dropped when the parties agreed that the claim for lesion had prescribed.

The case was heard in the trial court on May 11,1995. The trial court concluded that the evidence was not sufficient to reform the first quitclaim deed and remove the right of redemption contained therein. The court then turned its attention to the purported sale from Jon to his wife, Sharon. The court concluded that Jon’s attempt to explain the “other valuable consideration” at trial simply could not be accepted. According to the defendants, the property was sold to Sharon so that she could terminate her current employment and manage the couple’s property. Sharon allegedly would give Jon her 125 shares of Federal Express stock as payment for the property. She claimed to be seeking a “quieter style of life,” and testified that she had a medical problem that would be helped by less stressful work. The trial court did not give credence to this testimony, but concluded that the purported transfer from Jon to Sharon was “a sham and a veiled ^attempt to avoid Roger’s attempts to redeem or regain his interest in the subject property.”

The trial court concluded by stating that Jon had no claim to Roger’s one-half interest in the property except for the quitclaim deed of January 5, 1990, and that Jon must act in good faith and be subject to whatever rights were retained by Roger in that document. The court concluded that upon payment of the $8,000, plus all accrued interest, Roger was entitled to redeem his one-half interest to the property.

[1033]*1033On August 9, 1995, the trial court signed and filed a judgment finding that Roger was entitled to redeem his one-half interest in the property and ordering the defendants to transfer to the plaintiff his one-half interest in the property upon the plaintiffs payment of $8,000 plus 5% interest from January 5, 1990 until April 18, 1994. The trial court ordered that the costs be divided equally between the parties.

The defendants appealed the trial court judgment, arguing that the trial court erred in finding that Roger had a valid right of redemption and that the trial court erred in finding invalid the sale between Jon and Sharon Peacock.

RIGHT OF REDEMPTION

■ The defendants argue that the trial court erred in finding that the plaintiff had a valid right of redemption to the property. The defendants argue that the attempted redemption by the plaintiff was defective in form and substance because the plaintiff did not tender the full amount due under the contract.

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Cite This Page — Counsel Stack

Bluebook (online)
674 So. 2d 1030, 1996 La. App. LEXIS 849, 1996 WL 229426, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peacock-v-peacock-lactapp-1996.