Sanders Family, L.L.C. v. Sanders

21 So. 3d 433, 2009 La. App. LEXIS 1626, 2009 WL 3018306
CourtLouisiana Court of Appeal
DecidedSeptember 23, 2009
Docket44,632-CA
StatusPublished
Cited by1 cases

This text of 21 So. 3d 433 (Sanders Family, L.L.C. v. Sanders) 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
Sanders Family, L.L.C. v. Sanders, 21 So. 3d 433, 2009 La. App. LEXIS 1626, 2009 WL 3018306 (La. Ct. App. 2009).

Opinion

BROWN, Chief Judge.

11Plaintiffs, Sanders Family, LLC No. 1 (“the LLC”), and Larry L. (“Tay”) Taylor, III, as agent for Linda Sue Sanders, 1 individually and derivatively, appeal a judgment in favor of defendants, Colton Sanders, Deborah Sanders, and Claiborne Timber, LLC, granting their exception of peremption, or, alternatively, prescription, and dismissing the case with prejudice. For the reasons stated herein, we reverse and remand.

Facts and Procedural Background

Plaintiffs brought this action on November 19, 2007, seeking the rescission of four property sales by the LLC to defendants. The four sales occurred on July 30, 2001, September 5, 2003, June 22, 2005, and November 30, 2005. 2 The first sale’s vend-ee was Claiborne Timber, LLC, whose managing partners are Colton and Deborah Sanders. The second sale’s vendees were Colton and Deborah Sanders collec *435 tively. And the third and fourth sales’ vendee was Deborah Sanders separately.

All of the properties at issue in this action were the community property of Zack Sanders and Ethel Sanders until Zack Sanders’ death in 1995. Pursuant to the judgment of possession, Ethel Sanders, as surviving spouse, was entitled to ownership and possession of her undivided half interest in the community property, and their three children, Colton Sanders, Galen Sanders, and Linda Sue Sanders, were each recognized as owners of an undivided one-third interest in Zack Sanders’ half interest in the community property, subject to the usufruct in favor of Ethel Sanders. After |2the judgment of possession, however, all of the assets subject thereto were placed in three limited liability companies wholly owned by the members of the family. Ethel Sanders transferred all but 1% of her interest in the LLCs equally to her three children. Ethel Sanders was listed as the managing member of all three LLCs.

On January 4, 2008, defendants filed a peremptory exception of peremption, or, alternatively, prescription. A hearing was held on the exception on February 28, 2008, with Judge Dewey Burchett presiding. At that time Judge Burchett stated that he would like more discovery completed before a final ruling on the exception would be rendered. Subsequent to his ruling, and while discovery was being conducted, Judge Burchett voluntarily re-cused himself, and the case was reassigned to Judge Jeff Cox. After the suit was reassigned to Judge Cox, defendants filed a motion reurging the peremptory exception of peremption, or, alternatively, prescription. This motion also sought to enforce a previous discovery order to allow for the further deposing of the 83-year-old Ethel Sanders.

A hearing was held on the exception on September 29,. 2008. Thereafter, on November 10, 2008, the trial court issued its opinion finding that the one-year peremp-tive period for lesion beyond moiety was applicable to the claims set forth in the petition and further that plaintiffs had failed to allege fraud with particularity. On November 12, 2008, as a result of the trial court’s last finding, plaintiffs filed a motion to amend their petition. The trial court denied plaintiffs’ motion on November 17, 2008, |aand the final judgment dismissing the case with prejudice was signed on November 18, 2008.

Discussion

In the case sub judice, plaintiffs contend that their original petition seeking rescission of the four property sales alleged, among other causes of action, fraud and breach of fiduciary duty. Thus, plaintiffs assert, the applicable prescriptive periods for fraud and breach of fiduciary duty should control. Defendants, however, argue that the petition only sought rescission based upon lesion beyond moiety, and as such, plaintiffs’ claims were perempted in accordance with La. C.C. art. 2595. 3

Fraud is a misrepresentation or a suppression of the truth made with the intention either to obtain an unjust advantage for one party or to cause a loss or inconvenience to the other. La. C.C. art.1953. Fraud does not vitiate consent when the party against whom the fraud was directed could have ascertained the truth without difficulty, inconvenience, or special skill. This exception, however, does not apply when a relation of confidence has reason *436 ably induced a party to rely on the other’s assertions or representations. La. C.C. art. 1954. In pleading fraud, the circumstances constituting fraud must be alleged with particularity. La. C.C.P. art. 856.

Plaintiffs’ petition contains neither the word “fraud” nor “lesion.” The petition does, however, mention a pattern of grossly inadequate prices paid by defendants for property owned by the LLC, the reliance and trust Ethel Sanders put in her son, Colton, as a result of his superior business | experience and acumen, and the surreptitious dealings of Colton through Claiborne Timber, LLC. The petition further alleges that all four sales were negotiated by and at the behest of Colton, that the terms of the sales were unfair to the LLC, and that Colton was the only member of the LLC who received monthly compensation for management services performed on behalf of the LLC. More specifically, the petition states, and the attached exhibits show, that a few months after Deborah Sanders purchased the property subject to the fourth sale for $100,000.00, she sold a small fraction of the purchased land for $119,803.32 to the Parish of Bossier for a long-planned road extension, and then shortly thereafter an even smaller portion of the property to Wood & Wood Properties, L.L.C., for $310,552.00.

While we acknowledge that the aforementioned assertions may not reach the level of particularity that is required when pleading fraud, we nonetheless find that the trial court erred by dismissing plaintiffs’ claims against defendants without affording them an opportunity to amend their petition to more fully plead their fraud claims. See B-G & G Investors VI, L.L.C. v. Thibaut HG Corp., 08-0093 (La. App. 4th Cir.05/21/08), 985 So.2d 837. La. C.C.P. art. 934 states:

When the grounds of the objection pleaded by the peremptory exception may be removed by amendment of the petition, the judgment sustaining the exception shall order such amendment within the delay allowed by the court. If the grounds of the objection raised through the exception cannot be so removed, or if the plaintiff fails to comply with the order to amend, the action, claim, demand, issue, or theory shall be dismissed.

In denying plaintiffs’ motion to amend their petition, the trial court denied it as moot. Moreover, during the hearing on plaintiffs’ motion for |snew trial, the trial court stated that it “takes it as its position that even though the judgment had not [been] signed that the judgment was final on the day of November the 10th or was a judgment as far as this court was concerned on November the 10th ....” While the trial court may have taken as its position that its written reasons, issued more than a week before the actual judgment was signed, constituted a final judgment, we cannot. In order for there to be a final judgment, the Louisiana Code of Civil Procedure requires that a judgment, set out separately from the written reasons, be signed. La. C.C.P. arts.1911, 1918.

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Related

Sanders Family, LLC No. 1 v. Sanders
82 So. 3d 434 (Louisiana Court of Appeal, 2011)

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Bluebook (online)
21 So. 3d 433, 2009 La. App. LEXIS 1626, 2009 WL 3018306, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sanders-family-llc-v-sanders-lactapp-2009.