Richmond v. Zapata Development Corp.

350 So. 2d 875, 60 Oil & Gas Rep. 367, 1977 La. LEXIS 6666
Supreme Court of Louisiana·Decided September 19, 1977·No. 59127·Published·Cited by 13 cases

Opinion

350 So.2d 875 (1977)

R. Randolph RICHMOND, Jr.
v.
ZAPATA DEVELOPMENT CORP.

No. 59127.

Supreme Court of Louisiana.

September 19, 1977.
Rehearing Denied October 26, 1977.

*876 J. Harrison Henderson, III, William J. Guste, III, Guste, Barnett & Shushan, New Orleans, for plaintiff-applicant.

Herschel L. Abbott, Jr., Edward B. Poitevent, II, Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for defendant-respondent.

DENNIS, Justice.

The question presented by this case is whether the presence of drilling structures on land, as visible evidence of a mineral lease, will prevent a buyer of the property, who made no pre-sale inspection, from recovering in warranty from his vendor, who failed to disclose the existence of the lease.

On June 9,1972, defendant Zapata Development Corporation, conveyed to plaintiff R. Randolph Richmond, Jr., by warranty deed a parcel of immovable property located in Iberville Parish comprising some 640 acres. The act of sale declared a number of charges claimed against the property.[1]

*877 Richmond purchased without examining the title or inspecting the premises, and later discovered that the property was being exploited for oil and gas pursuant to a mineral lease by Gay Union Corporation in favor of Gulf Refining Company of Louisiana which had been executed and properly recorded in 1930.

On October 2, 1974, Richmond filed suit against his vendor, Zapata, alleging that the extensive mineral recovery operations conducted under the 1930 Gay-Gulf lease on some 360 acres of the property rendered that portion of the property useless for any purpose other than mineral production and impaired his ability to develop and utilize the remaining 280 acres. Plaintiff alleged that the mineral lessee had placed on the property a network of pipelines, tanks, lines, canals, structures, shacks, offices, houses, drilling equipment, rigs both active and abandoned, roadways and other earthen works, ponds, pits, oil spills and pollutants. Contending that failure to declare the existence of the lease in the act of sale amounted to a breach of Zapata's warranty against eviction, Richmond originally prayed for judgment in the amount of $120,000, but subsequently amended his petition to seek an award of $2,120,000.

Defendant Zapata filed exceptions of no cause of action and prescription, and a motion for summary judgment. In support of the latter motion it attached as exhibits copies of the 1972 act of sale of the property from Zapata to Richmond, a 1971 recorded act of sale of all oil, gas and mineral interests in the property from Southdown, Inc. to Pelto Oil Company, and the 1930 mineral lease from Gay Union Corporation to Gulf Refining Company of Louisiana.

During the six months following the filing of defendant's motion for summary judgment, plaintiff filed no opposing affidavits demonstrating the existence of a material factual dispute. La. C.C.P. arts. 966-67. Subsequently, the district court rendered summary judgment for defendant, finding that Zapata did not warrant the property sold to be free of oil and gas exploration because of the numerous paragraphs in the deed suggestive of mineral activity, especially paragraph (k) which disclosed a 1971 sale of all mineral rights in the property from Southdown, Inc. to Pelto Oil Company. In his reasons for judgment the district judge also expressed his view that, if plaintiff's action were regarded as one in redhibition, it had prescribed.[2]

*878 The court of appeal affirmed, holding that plaintiff Richmond had been apprised, by the inscriptions recited in the deed, of facts sufficient to provoke his examination of the title before purchasing. 339 So.2d 939 (La.App. 4th Cir. 1976). We granted writs to review this decision. 341 So.2d 1126 (La.1977).

In its opinion the appellate court, citing Juneau v. Laborde, 219 La. 921, 54 So.2d 325 (1951), stated our jurisprudence holds that, generally a buyer is not obliged to examine title to immovable property, but where certain facts known to him constitute a warning that further inquiry is needed, and such facts are sufficient to excite inquiry, a duty devolves upon him to investigate his vendor's title. Defendant, Zapata, has called our attention to a number of cases it says also stand for this broad proposition.[3] We find the Juneau case and these decisions inapposite to the instant proceeding as the holding in none of them hinges on the vendor's obligation in warranty owed to the vendee.

Juneau v. Laborde, for example, involved a petitory action brought by heirs to immovable property against a possessor claiming the property on the basis of ten-year good faith acquisitive prescription. La. C.C. art. 3478. This Court found that the possessor was aware of facts which were sufficient to excite inquiry into the validity of his vendor's title, and that a duty devolved upon him to investigate the title before purchasing.[4] However, this rule provides no defense against a vendee who seeks to enforce his vendor's obligations under a warranty deed. In fact, to allow its application in such an action would violate basic principles of warranty against eviction in the civil law and a substantial body of jurisprudence interpreting our Civil Code.

Because the registry laws are intended only as notice to third parties and have no application whatever between parties to a contract, a vendee is under no obligation to search the record in order to ascertain what his vendor has sold and what it has not, and the vendee is entitled, as between himself and his vendor, to rely upon his deed as written. Young v. Sartor, 152 La. 1064, 95 So. 223 (1923). Moreover, as a general rule, in the absence of a stipulation of non-warranty in the act of sale, knowledge of the danger of eviction does *879 not prevent the purchaser from recovering the purchase price upon disturbance of his possession. Scott v. Featherston, 5 La.Ann. 306 (1850) citing Article 2481 of the Louisiana Civil Code of 1825 [La. C.C. art. 2505]; Hall v. Nevill, 3 La.Ann. 326 (1848). See, Comment, Warranty Against Eviction in the Civil Law: Limitations on the Extent of the Vendee's Recovery, 23 Tul.L.Rev. 154, 169-70 (1948). Cf. Collins v. Slocum, 317 So.2d 672 (La.App. 3d Cir. 1975). But see, Culver v. Culver, 188 La. 716, 178 So. 252 (1938), criticized in 23 Tul.L.Rev., supra, at 170.

This accords with the view of a majority of French courts and writers that although such knowledge bars recovery of damages by an evicted buyer who purchases by a deed which does not contain a non-warranty clause, the purchaser is nevertheless entitled to a restitution of the price. 2 M. Planiol, Civil Law Treatise, pt. 1, §§ 1504, 1509 (La.St.L.Inst.Transl.1959); 1 M. Troplong, Droit Civil Explique: De La Vente, § 482 (2d ed.1835); See, Comment, Warranty Against Eviction in the Civil Law, supra, at 160, and authorities cited therein. It is their view that this principle is not provided directly by the warranty provisions of the Code, but results from Article 1599 of the Code Napoleon [La. C.C. art. 2452] which, after declaring that the sale of the thing of another is null, adds that it can give occasion for damages "when the buyer did not know that the thing belonged to another." See, Planiol, id. at 1509.

An exception to the rule is recognized, however, regarding an alleged eviction resultin

Free access — add to your briefcase to read the full text and ask questions with AI

Richmond v. Zapata Development Corp., 350 So. 2d 875, 60 Oil & Gas Rep. 367, 1977 La. LEXIS 6666 (La. 1977).

350 So. 2d 875 (Richmond v. Zapata Development Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Daniel J. Saloom v. State of Louisiana, Dotd
Louisiana Court of Appeal, 2022
Matte v. Brown
154 So. 3d 774 (Louisiana Court of Appeal, 2014)
Ricky J. Matte v. Robert Brown
Louisiana Court of Appeal, 2014
Spillman v. Gasco, Inc.
110 So. 3d 150 (Louisiana Court of Appeal, 2012)
Huckabay v. Keahey
600 So. 2d 97 (Louisiana Court of Appeal, 1992)
Comb v. Dugas
576 So. 2d 1130 (Louisiana Court of Appeal, 1991)
Addison v. Thompson
556 So. 2d 195 (Louisiana Court of Appeal, 1990)
Besse v. Blossman
521 So. 2d 570 (Louisiana Court of Appeal, 1988)
McIlwain v. Manville Forest Products Corp.
499 So. 2d 1138 (Louisiana Court of Appeal, 1986)
Crawford v. Gray and Associates
493 So. 2d 734 (Louisiana Court of Appeal, 1986)
Sauve Heirs, Inc. v. REYNADU CONST. CO., INC.
441 So. 2d 239 (Louisiana Court of Appeal, 1983)
Roth v. B & L ENTERPRISES, INC.
420 So. 2d 1094 (Supreme Court of Louisiana, 1982)
Dunlap v. Red River Waterway Commission
405 So. 2d 655 (Louisiana Court of Appeal, 1981)
Bielawski v. Landry
397 So. 2d 861 (Louisiana Court of Appeal, 1981)
Dillon v. Morgan
362 So. 2d 1130 (Louisiana Court of Appeal, 1978)