Phillips v. Parker

483 So. 2d 972
CourtSupreme Court of Louisiana
DecidedFebruary 24, 1986
Docket85-C-1382
StatusPublished
Cited by35 cases

This text of 483 So. 2d 972 (Phillips v. Parker) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phillips v. Parker, 483 So. 2d 972 (La. 1986).

Opinion

483 So.2d 972 (1986)

Johnie Fenton PHILLIPS
v.
Burie Edgar PARKER, et ux.

No. 85-C-1382.

Supreme Court of Louisiana.

February 24, 1986.

*973 John M. Shuey, Jr., Shuey & Smith, Shreveport, for defendant-applicant.

Walter White, Shreveport, for plaintiff-respondent.

LEMMON, Justice.

This boundary action raises the question whether defendants were properly denied the status of good faith possessors of immovable property, for purposes of ten-year acquisitive prescription, simply because they obtained a title examination at the time of their purchase and the examining attorney failed to discover that the seller had already sold a portion of the property to another party. We conclude that, especially in the light of the 1982 revisions clarifying the Civil Code articles relating to acquisitive prescription, a party who obtains a title examination is not solely for that reason precluded from claiming the status of a good faith possessor in a plea of ten-year acquisitive prescription, but rather that the obtaining of a title examination and the information actually revealed by the examination are merely factors to be considered in the judicial determination of whether the presumption of good faith has been successfully rebutted.

Facts

In 1947 G.R. Weaver, plaintiff's and defendants' common ancestor in title, acquired a tract of land containing 2.55 acres. Weaver eventually built a camp on a small portion of the lakefront property. In 1955 Weaver agreed to sell two lakefront lots from the remainder of the tract to defendants and to the McCuller brothers, who were plaintiff's immediate ancestor in title. The tract was not subdivided and contained no visible boundaries.

On August 22, 1955, Weaver executed two cash deeds by which he sold one lot to defendants and one lot to the McCullers, each for the price of $750. When defendants *974 went out to the property after the sale to mark off the lot, they learned that the property description in the deed did not describe the property they had intended to purchase, but instead described the part of the tract on which Weaver's camp was located. On advice of their attorney, defendants employed a surveyor, who surveyed the property defendants had intended to purchase, and an attorney, who examined the title to that property and expressed the opinion that Weaver had a good and valid title. Weaver then transferred to defendants by cash deed on October 7, 1955 the lot defendants had intended to buy, and defendants conveyed back to Weaver the lot purchased in error in August.

Defendants immediately cleared the property and built a camp. The following year they erected a fence in accordance with the survey, and they were in peaceful possession of the fenced property until 1982.

In the meantime the McCullers had conveyed their lot to plaintiff in 1972.[1] When plaintiff desired to move a trailer onto her property in 1982, she discovered that the property described in her August, 1955 deed overlapped the property described in defendants' October, 1955 deed by thirteen feet. Her request that defendants remove the fence was apparently the first time that defendants learned that their fence was on plaintiff's property.[2]

In this ensuing boundary action, defendants filed an exception of ten-year acquisitive prescription, claiming to have possessed since 1956, in good faith and under just title, all of the property located within the fence. At trial the only disputed issue relative to defendants' plea of acquisitive prescription was their good faith. The title examiner testified that he did not recall finding the August, 1955 sale from Weaver to the McCullers. Apparently defendants relied completely on the title examiner's written opinion that Weaver had a good and valid title to the lot which they purchased in October 1955.

The trial court overruled the exception of prescription, concluding that the defendants were in "legal bad faith" because they obtained a title examination which did not reveal the defect in their title. The court further determined that plaintiff was the owner of the disputed strip and fixed the boundary accordingly.

The court of appeal affirmed. 469 So.2d 1102. The intermediate court first noted that the doctrine of legal bad faith, under which an error of law (such as an erroneous conclusion as to ownership rights) precluded a finding of good faith for purposes of acquisitive prescription, had been legislatively overruled by La.C.C. Art. 3481 (enacted by Acts 1982, No. 187), which provides that neither an error of fact nor an error of law defeats the presumption of good faith.[3] However, the court concluded that the 1982 Civil Code revisions did not affect the theory of law that a purchaser who undertakes a title search of the public records is charged with knowledge of the defects in title that a reasonable person would acquire from a search of the public records. Citing Martin v. Schwing Lumber & Shingle Co., 228 La. 175, 81 So.2d 852 (1955), the court held that because of this theory of constructive knowledge, based on the public records doctrine, the defendants were not in good faith once they had undertaken through their attorney a search of the public records which *975 should have revealed the overlap in the property descriptions.

We granted certiorari to determine, especially in the light of the 1982 revisions, the validity of a theory of law which deems a party to be a bad faith possessor simply because he obtained a title examination, even though that party acted reasonably by employing an attorney to examine the title to the property he intended to purchase and then reasonably relied on the opinion of the title examiner that the seller had a good and valid title to the property. 475 So.2d 347.

The court of appeal (perhaps in reliance on some loose language in prior cases) has misconstrued the public records doctrine and has misapplied a questionable theory of constructive knowledge as conclusive of the determination of good faith of a possessor who obtains a title examination. It is therefore appropriate to review the public records doctrine and to analyze the effect of obtaining a title examination upon the determination of good faith under the 1982 Civil Code revisions.

The Public Records Doctrine

The law of registry is stated principally in La.R.S. 9:2721 and 9:2756 (formerly La. C.C. Art. 2266) as follows:

"No sale, contract, counter letter, lien, mortgage, judgment, surface lease, oil, gas or mineral lease or other instrument of writing relating to or affecting immovable property shall be binding on or affect third persons or third parties unless and until filed for registry in the office of the parish recorder of the parish where the land or immovable is situated; and neither secret claims or equities nor other matters outside the public records shall be binding on or affect such third parties." R.S. 9:2721
"All sales, contracts and judgments affecting immovable property, which shall not be so recorded, shall be utterly null and void, except between the parties thereto. The recording may be made at any time, but shall only affect third persons from the time of the recording.
"The recording shall have effect from the time when the act is deposited in the proper office, and indorsed by the proper officer." R.S. 9:2756

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Bluebook (online)
483 So. 2d 972, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-parker-la-1986.