Peterson v. Herndon

235 So. 2d 178, 1970 La. App. LEXIS 5125
CourtLouisiana Court of Appeal
DecidedApril 28, 1970
DocketNo. 11425
StatusPublished
Cited by5 cases

This text of 235 So. 2d 178 (Peterson v. Herndon) 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
Peterson v. Herndon, 235 So. 2d 178, 1970 La. App. LEXIS 5125 (La. Ct. App. 1970).

Opinion

AYRES, Judge.

Plaintiff, Cloves Peterson, brought this action against the defendant, Valry Bruce Herndon, to rescind the sale of an undivided one-seventh (%) interest in an 80-acre tract of land on the ground of [180]*180lesion beyond moiety. After a trial on the merits, judgment was rendered in favor of plaintiff setting the sale aside. Defendant appealed to this court, whereupon the judgment was annulled, and the case remanded to the district court for the taking of additional evidence “as to the value of the undivided one-seventh (¥¡) interest in” the tract.

Following the taking of additional evidence, limited by the trial court to the possible diminution of value due to the undivided ownership of the property, judgment was rendered in favor of plaintiff, setting the sale aside, and defendant appealed.

Defendant contends the trial court erred in failing to admit evidence of the value of the property offered by two appraisers called in his behalf for the first time, whose testimony was not offered at the original trial. Plaintiff objected to the calling of these two appraisers by defendant contending that the case was remanded solely for the taking of evidence as to diminution in the value of the property by reason of the undivided ownership, and defendant could not call additional appraisers to testify concerning the use of the land, comparable sales, and related evidence as to the value of the property generally. In support of his objection plaintiff relies heavily on the following language quoted from the previous opinion of this court:

“Our examination of the record discloses that the estimation of the value of the subject property did not take into account all the circumstances which diminish its importance and value. We are of the opinion that the value of an undivided interest cannot be accurately determined from a division of the total value of the property. We feel that full justice cannot be accomplished without the addition of evidence which would reveal the diminution, if any, in value by reason of such undivided ownership.”
La.App., 221 So.2d 615, 619.

In addition, plaintiff points out dicta to support his position that the two appraisers called by him in the original trial based their values on sound considerations:

“ * * * In the instant case the two appraisers based their estimate on comparable sales. There is no indication their findings were predicated on speculative values.”
221 So.2d 615, 618.

While it could be said the above-quoted portions of the opinion relied on by plaintiff indicate the primary concern of the court was the diminution in value by reason of the undivided ownership in the subject property, there is no statement in the opinion which would restrict either party to the offering of additional evidence on that point alone. Rather, the decree directs:

“ * * * this case be remanded to the First Judicial District Court to be reopened and there proceeded with in accordance with law and the views herein expressed to the end that proper and legal proof be adduced as to the value of the undivided one-seventh (Vt) interest * * (Emphasis supplied.)
221 So.2d 615, 619.

Where the ends of justice would be best served, the courts in this State have always been very liberal in allowing additional evidence when a case is remanded for that purpose. LSA-C.C.P. Art. 2164, comment (d) ; Finn v. National Fire Insurance Company of Hartford, 100 So.2d 284, 288 (La.App., 2d Cir. 1958), and cases cited therein. Therefore, we are of the opinion, upon a careful reading of our prior opinion in this case, that a liberal interpretation of the judgment contained therein is amply supported by the law applicable to the facts set forth, and plaintiff’s objection should have been, and is hereby, overruled.

Having concluded that the appraisals of defendant’s experts, contained in the record under an offer of proof, are admissible [181]*181and properly before the court, we now turn to the merits of the case.

The subject property is described as being located near State Highway No. 1 approximately nine miles north of the business district of Shreveport, Louisiana, and approximately one mile northeast of the intersection of the Old -Mooringsport and Roy Roads. Its southern boundary is within ISO feet of Highway No. 1 and is reached by a narrow lane. At the time of the sale, July 26, 1967, there were no improvements on the property other than three dilapidated houses which the experts agreed had no value. The land was once cultivated but is now covered with small trees and bushes. Approximately twenty percent (20%) of the property is subject to seasonal overflow by the waters from Cain Creek.

Through probate judgments rendered in the First Judicial District Court of Caddo Parish in 1932 and again in 1968, plaintiff was recognized as the owner of an undivided one-seventh (Jj) interest in the subject property, being the same interest he had sold to defendant in 1967 for a purchase price of $1,250.

A prerequisite for sustaining the action of lesion is proof that the price paid be less than one-half of the value of the property as established at the time of the sale. LSA-C.C. Arts. 1861 and 2589.

To ascertain whether there is lesion beyond moiety, the immovable must be appraised according to the state in which it was at the time of the contract and the value which it had at the time of the sale. LSA-C.C. Arts. 1870 and 2590. As the party asserting lesion has the burden of proving it by strong and convincing proof, plaintiff must establish the value of his interest in the subject property to have been more than $2,500 on July 26, 1967, the date of the sale. Speculative values are not to be considered and the determination of market value by the highest and best use in which the property can be placed, as in expropriation suits, is inapplicable to the rescission of a sale on the ground of lesion. Armwood v. Kennedy, 231 La. 102, 90 So.2d 793 (1956); Foos v. Creaghan, 226 La. 619, 76 So.2d 907 (1954); Crow v. Monsell, 200 So.2d 700, 703 (La.App., 2d Cir. 196 —writ refused).

Plaintiff’s experts, Lawrence L. May and Charles T. Hall, valued the property in its entirety at $48,000 and $46,000 respectively, or $600 and $575 per acre. On remand, May testified he knew of the undivided ownership of the property and would not change his opinion as to its value. However, Hall testified he was not aware of the undivided ownership and reduced his appraisal by twenty percent (20%), valuing the land at $460 per acre. He stated the percentage was standard in a case of five to seven owners.

On the other hand, defendant’s experts, O. L. Jordan and A. W. Sour, valued the property in its entirety at $15,360 and $16,-000 respectively, or $192 and $200 per acre.' Both appraisers were aware of the undivided ownership, and Jordan used the twenty percent (20%) reduction, just as Hall had done.

The trial court, considering only the appraisals of plaintiff’s experts, concluded the value of the subject property to be $400 per acre and set aside the sale. We believe the trial judge erred in his conclusion as to the value of the subject property.

The appraisals of defendant’s witnesses are more logical and appear to be much more acceptable than those of the plaintiff’s witnesses, especially the appraisal of Lawrence May.

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Bluebook (online)
235 So. 2d 178, 1970 La. App. LEXIS 5125, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-herndon-lactapp-1970.