Poche v. Ruiz

119 So. 2d 469, 239 La. 573, 1960 La. LEXIS 953
CourtSupreme Court of Louisiana
DecidedMarch 21, 1960
Docket44040
StatusPublished
Cited by10 cases

This text of 119 So. 2d 469 (Poche v. Ruiz) 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
Poche v. Ruiz, 119 So. 2d 469, 239 La. 573, 1960 La. LEXIS 953 (La. 1960).

Opinions

SIMON, Justice.

Plaintiffs, Mr. and Mrs. Joseph A, Poche, instituted this suit against John E. Ruiz, a real estate agent, for a return of double the deposit, attorney’s fees and costs stemming from an alleged non-performance by the defendant, John E. Ruiz, of an agreement to sell and convey certain real estate owned by him.

On October 19, 1956, plaintiffs and defendant executed a written agreement, the tenor of which is that the Poches offered to buy and Ruiz agreed to sell a certain lot and the improvements thereon located in Jefferson Parish, Louisiana. The sale price agreed upon was $8,000, $3,000 of which was to be paid in cash, and conditioned upon the ability of the prospective purchaser to negotiate a loan of $4,400 within sixty days from date of said contract, at a rate of interest not to exceed six percent per [577]*577annum and payable over a period not to exceed fifteen years, and upon purchaser’s ability to obtain a “side loan” of $600 payable at $12 per month with six percent per annum interest. It appears that Ruiz would obtain the loans in his own name with an assumption thereof by the plaintiffs.

The contract called for a deposit of ten percent of the purchase price, or the sum of $800, simultaneously with the execution of the contract, this covenant being fully complied with. It further provided that upon the completion of certain repairs to the premises by the defendant, the act of sale would be executed on or before December 19, 1956, in the presence of a notary public designated by the defendant.

The contract further provided that in the event the purchaser failed to comply with the agreement on or before the date above specified, the vendor would have the right, either to declare the deposit, ipso facto, forfeited, without formality and without placing the purchaser in default, or demand specific performance. In the event that the vendor did not comply with the agreement to sell within said date, the purchaser would have the corollary right either to demand the return of double the deposit, or specific performance of the agreement.

On the reverse of the contract there appears the following notation:

“In connection with the contract on the reverse hereof the act of sale date which is ‘on or prior to December 16, 1956’ is hereby extended by mutual consent of the purchasers and vendor fo.r sixty additional days if curative work in connection with the title is required.”

The consent of the parties to the extension of time for the purpose stated is attested by their respective signatures thereto.

On October 29, 1956, plaintiffs paid defendant an additional $2,200 in cash, fo.r which they received a receipt signed by an agent of Ruiz and stating that this amount represented “additional deposit.” The following day, with the permission of the defendant, plaintiffs began occupancy of the premises although the terms of the agreement called for occupancy by plaintiffs following execution of the deed.

On February 22, 1957, plaintiffs’ attorney addressed a certified letter to the defendant returning the keys to the premises, and therein notifying him that though the contract called for the act of sale to be executed on or before December 19, 1956, that the time allowed for curing title defects had long since expired without success; that having deposited the sum of $3,000 under the terms of the contract, accordingly, defendant’s inability to deliver a clear and merchantable title entitled plaintiffs to, and they were now formally demanding, without the necessity of placing defendant in formal [579]*579default, a return of double the amount so deposited.

Receiving no answer to the foregoing demand, plaintiffs, on March 11, 1957, filed suit seeking to recover the sum of $6,000 plus an additional amount of $1,000 as attorney’s fees, together with legal interest thereon from date of judicial demand until paid and for all costs of the proceedings.

Defendant, in his answer, admitted the contract but denied the other allegations of plaintiffs’ petition. Then assuming the position of plaintiff in reconvention, he alleged that it was not he but plaintiffs who had not complied with the terms of the agreement inasmuch as they had not obtained the financing called for by the agreement within the time limit therein fixed. He averred that he was ready, willing and able at all times to convey title to the property in dispute, giving full warranty with full substitution and subrogation; that plaintiffs refused to accept title until they could obtain financing through the Fifth District Homestead Society; and that he granted them the sixty-day extension to procure the loan which was not forthcoming at the end of that period. Countering plaintiffs’ contention that they had paid $3,000 as a deposit, defendant claimed that the sum of $2,200 was not an additional deposit but was paid to protect him for any rental which might become due and for any damages to the premises resulting from their occupancy. Defendant prayed for a fair rental value of $480 flowing from plaintiffs’ four-month occupancy of the premises, $1,615 for damages to the premises, forfeiture of the $800 deposit, reasonable attorney’s fees and costs.

The district court, without assigning written reasons, rendered judgment in favor of plaintiffs for the sum of $3,000, together with legal interest thereon from date of judicial demand until paid and for all costs, and dismissed defendant’s reconventional demand.

On appeal plaintiffs reurge their contention that they should be awarded the return of the $3,000 paid to defendant, an additional $3,000 for damages, and $1,000 attorney’s fees with interest and costs. Defendant, in his answer to the appeal, reiterates his claims contained in his reconventional demand.

Should we find that defendant has not complied with the terms of the agreement as contended by plaintiffs, there is no doubt that they are entitled to a return of double their deposit as damages, for this court has so held in Ducuy v. Falgoust, 228 La. 533, 83 So.2d 118, 123. The agreement in that case contained the identical stipulation that “In the event * * * the vendor does not comply with this agreement to sell within the time specified, purchaser shall have the right either to demand the return of double the deposit, or specific performance.” Inasmuch as the vendor in the Falgoust case was unable to deliver a valid and merchantable title, we concluded that the prospective [581]*581purchaser was entitled to the return of his deposit plus an equal amount as stipulated damages, for the reason that the parties having “thus contracted in clear and explicit language that leads to no absurd consequences and as there is no suggestion that it is contrary to good morals or public policy, it is the law between them and the court is bound to give legal effect thereto.” The principles announced in the above cited case were reiterated in Caplan v. Airport Properties, 231 La. 1071, 93 So.2d 661.

It was brought out in the testimony in the lower court that defendant’s attorney, Mr. David Hogan, informed plaintiffs that the act of sale had not been previously executed for the reason that there were legal difficulties involving the validity of the title requiring curative work. As Mr. Hogan was defendant’s trial attorney and the record shows that he made no attempt to contradict plaintiffs’ testimony, we must presume that they were so advised.

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Poche v. Ruiz
119 So. 2d 469 (Supreme Court of Louisiana, 1960)

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Bluebook (online)
119 So. 2d 469, 239 La. 573, 1960 La. LEXIS 953, Counsel Stack Legal Research, https://law.counselstack.com/opinion/poche-v-ruiz-la-1960.