Reid v. Phillips

148 So. 690, 177 La. 497, 1933 La. LEXIS 1714
CourtSupreme Court of Louisiana
DecidedMay 1, 1933
DocketNo. 31744.
StatusPublished
Cited by3 cases

This text of 148 So. 690 (Reid v. Phillips) 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
Reid v. Phillips, 148 So. 690, 177 La. 497, 1933 La. LEXIS 1714 (La. 1933).

Opinion

ROGERS, Justice.

This is an appeal from an adverse judgment by William Reid, plaintiff in a petitory action against Johanna Phillips and her warrantor, the Liners Harvest Home.

The record discloses that on November 26, 1929, the Diners Harvest Home conveyed to William Reid by notarial act the property described in plaintiff’s petition. About six months after the purported sale, Reid brought this suit against Johanna Phillips, who was in actual possession of the property. The defendant answered the suit, denying plaintiff’s ownership and averring that the Liners Harvest Home, for whom she pos-, sessed, was the owner of ‘the property. De *499 fendant then called the Liners Harvest.Home in warranty.

The Liners Harvest Home is an association composed of negroes, and its purpose is to extend relief to aged indigent members of the negro race. William Reid was the president of the Liners Harvest Home, and also the pastor of the King Solomon Baptist Church, the name under which the Liners Harvest Home operates as a church.

In response to the call in warranty by Johanna Phillips, the Liners Harvest Home filed an answer, in which it admitted that Johanna Phillips was in possession for its account of the property in dispute, and denied that Reid was the owner of the property, alleging that the conveyance to him was null because of fraud and misrepresentation.

The Liners Harvest Home specifically set forth that William Reid, who at the time of the purported act of sale, and for about two years prior thereto, was pastor of the respondent’s congregation, maliciously and fraudulently and taking advantage of the faith, trust, and confidential relationship existing between him, a minister of the gospel, and his congregation, represented to the congregation that he desired to construct a new church upon one of the two adjacent lots of ground in dispute; and did falsely, fraudulently, and maliciously represent that as long as the property stood in the name of the Liners Harvest Home, the said Home could not obtain a loan with the property as security, and in order to obtain funds with which to erect the church in question, it was necessary to have the title in his name so that he might with the money secured from the loan erect the church. That the congregation having implicit faith and confidence in said Reid, by resolution passed on July 26, 1929, instructed its attorneys to transfer to Reid the property in dispute herein.

That upon being informed of the intention of the Liners Harvest Home to transfer its property to Reid, its pastor, for the purpose hereinabove set forth, the attorneys for the congregation advised that the proper method of transferring the property for the intended purpose was by means of an act of sale to Reid, with a counter letter from Reid, explaining the nature of the transaction. That, accordingly, on August 13, 1929, the property was conveyed to Reid by a notarial act, and Reid, in his turn, executed a counter letter in favor of his purported vendor. This transfer to Reid was made for a recited consideration of “One dollar and other consideration.” .

The Liners Harvest Home further alleged that Reid, evidently realizing that he could not appropriate the property under this transaction, called a meeting at the said Home on or about October 21, 1929, into which he fraudulently and knowingly introduced persons other than members in the said church in order to fraudulently and illegally constitute a quorum for the purpose of carrying out his illegal and fraudulent designs, among those present being nine persons, whose names are set forth, who were not and never have been members of the said Home, and many of Reid’s close relatives.

That at said fraudulent and illegal meeting, the said Reid, again taking advantage of the faith, trust, and confidential relationship existing between him as a minister of the *501 gospel and his congregation, fraudulently stated to those present that it was necessary to place the property in his name in order to borrow the money necessary for the construction of a church, and that he was hampered in his negotiations for the loan and in the handling of the property because of the existence of the counter letter. That in order to properly handle the transaction it was necessary that he should have complete charge and control of the property and should have the title in his name.

That to show his good faith and interest in the Home he desired to purchase the property for the insignificant sum of $3,000, and he informed those present at the meeting that they could take his word as a minister of the gospel that he would erect the church, and immediately upon the repayment of the loan he would retransfer the property to respondent.

That the members of the congregation present at the meeting, misled by the misrepresentations and false statements of its pastor, together with the bogus members also present at the meeting, disregarded the objections of the Home’s attorneys, and agreed to cancel the prior act of sale and accompanying counter letter, and to transfer the property to Reid for a purported consideration of $3,000. That resolutions to that effect were accordingly adopted; and the act of sale of November 26, 1929, under which plaintiff is asserting title herein, was executed under the circumstances and conditions described.

. That at the execution of the sale, Reid gave one of the members of the committee a check for $3,000, supposedly representing the purchase price of the property, which cheek was void; Reid having no money on deposit in the bank to meet the check. That, as a matter of fact, respondent never received any consideration whatever for the property.

That Reid, immediately upon the execution of the act of sale, abandoned services at respondent’s church, and under the persistent requests of members of respondent’s congregation as to why the church was not erected, assumed the attitude that he had never intended to build the church, and he admitted, both verbally and in writing, that he would retransfer the property to the respondent Home when it repaid him the money expended by him in respondent’s interest.

That up until the middle of February, 1929, Reid was willing to retransfer the property to the respondent for approximately $200, and the only dispute at that time was as to the amount due Reid; respondent claiming that Reid had expended an amount much less than that which he claimed.

That in the month of February, 1930, Reid demanded sums ranging from $2,000 to $3,-000, instead of $200, all of which amounts were out of proportion to the expense which he had actually incurred.

That in law and in fact by reason of the fraud practiced by Reid, respondent’s title to the property in dispute has never been legally divested.

The evidence adduced on the trial of the case amply supports the allegations of fact contained in the answer of the respondent Liners Harvest Home. It convincingly shows that Reid conceived and executed a scheme for obtaining - title to respondent’s property. Reid advised respondent’s hoard of directors that the prospective lender would not ad *503

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148 So. 690, 177 La. 497, 1933 La. LEXIS 1714, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reid-v-phillips-la-1933.