Sepulvado v. Procell

99 So. 3d 1107
CourtLouisiana Court of Appeal
DecidedOctober 3, 2012
DocketNo. 12-271
StatusPublished

This text of 99 So. 3d 1107 (Sepulvado v. Procell) 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
Sepulvado v. Procell, 99 So. 3d 1107 (La. Ct. App. 2012).

Opinion

THIBODEAUX, Chief Judge.

I,The plaintiffs appeal the trial court’s granting of the defendants’ peremptory exception of prescription, thereby dismissing the plaintiffs’ claims of fraud and dismissing their petition to annul or reform the 1993 sale of their leasehold interest in land and mineral rights. Finding no manifest error in the judgment of the trial court, we affirm.

I.

ISSUES

We must decide:

(1) whether the trial court manifestly erred in finding that prescription was not interrupted or suspended under the doctrine of contra non valentem; and
(2) whether the trial court manifestly erred in finding that no relation of confidence existed to excuse the plaintiffs’ lack of diligence in failing to discover for seventeen years what they had agreed to sell.

II.

FACTS AND PROCEDURAL HISTORY In 1993, Gerald Procell approached Katherine Sepulvado about purchasing the leasehold interest in land that she owned with her sister, her aunt, and her two cousins. The land was in Sabine Parish next to a marina and bait business owned by Gerald Procell’s father; it was overgrown, not being used, and Procell wanted to clean it up and use it for parking. A price of $10,000.00 was agreed upon, and Gerald Procell had an attorney draw up a three-page document, entitled Sale and Assignment (sometimes referred to as the deed), for the transfer of the property interest to himself and his wife Rebecca.1

|2The sale was subsequently signed by Katherine E. Sepulvado, her sister, Virginia Ann Ebarb, their aunt, Nellie E. Leone, and Nellie’s two daughters, Brenda Leone and Charlotte Leone Carlisle (referred to individually as Katherine, Virginia, Nellie, Brenda, and Charlotte, or referred to collectively as “the plaintiffs”). None of the plaintiffs dispute their signatures on page three of the document. Katherine and her sister, Virginia (now deceased), signed the document at Katherine’s home in Noble, Louisiana, while Nellie, Brenda, and Charlotte signed at Charlotte’s home in Shreveport.

The legal description of the property interest conveyed in the sale appears on page two. Part one (1) of the legal description details a 2.66-acre tract of land and a 3.23-acre tract of land lying along the cove as shown on the Toledo Bend Taking Line Maps. These two parcels comprise the 5.88 acres of land which is the undisputed lakeside property interest conveyed to Procell on both sides of his father’s marina. Part two (2) of the legal description on page two conveys the mineral rights as follows (emphasis added):

ANY AND ALL OIL, GAS AND OTHER MINERALS AND MINERAL RIGHTS THAT VENDORS AND ASSIGNORS MAY HAVE IN, TO, ON OR UNDER THE TWO TRACTS OF PROPERTY DESCRIBED IMMEDIATELY HEREINABOVE, AND ANY, AND ALL OIL, GAS AND OTHER MINERALS AND MINERAL [1133]*1133RIGHTS, THAT VENDORS AND ASSIGNORS MAY HAVE IN, TO, ON OR UNDER THE EAST ONE-HALF (E ⅛) OF THE NORTHWEST QUARTER (NW ⅜) AND THE WEST ONE HALF (W ⅛) OF THE NORTHEAST QUARTER (NE ¼) OF SECTION TWO (2), TOWNSHIP SEVEN (7) NORTH, RANGE FOURTEEN (14) WEST, SABINE PARISH, LOUISIANA, LESS FIVE (5) ACRES IN A SQUARE IN THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER (SW ⅜) OF THE NORTHEAST QUARTER (NE ⅜)

IsA township is a six-mile square of land divided into thirty-six, one square-mile sections on a government survey; each section contains 640 acres, and a quarter-section contains 160 acres.2 Hence, part two (2) of the Sale and Assignment signed by the plaintiffs included the conveyance of their mineral rights to the 5.88 acres of land, and their mineral rights to 155 additional acres which were covered by water in 1993. The Sale and Assignment was recorded in November 1993.

In September of 2009, an oil and gas land agent approached the plaintiffs about leasing the 155 acres, ostensibly due to the Haynesville natural gas shale formation under the land, but the agent then found the recorded sale to the Procells and so informed the plaintiffs. The plaintiffs assert that this was their first knowledge or discovery of the fact that they had transferred their mineral rights in the 155 acres to Gerald and Rebecca Procell.

In May of 2010, the plaintiffs filed a Petition for Rescission, Reformation, Fraud and Damages, asserting that they had agreed to convey only their interest in the 5.88 acres of lakeside property in the 1993 sale, and that Gerald Procell had fraudulently and intentionally included the oil, gas, and mineral rights to the 155 additional acres in the lake. Gerald Pro-cell was deceased by that time, and the plaintiffs named Rebecca Procell and the Succession of Gerald Procell, along with eight other Procell heirs, as defendants in the petition.

In their petition, the plaintiffs alleged that their signatures “were obtained at different times, not in the presence of the notary, and not within the formalities required by Louisiana law for authentic acts, all with the intent and design of Defendants ... to deceive Plaintiffs and conceal the fraudulently changed property description from them.” They further alleged that they relied on Gerald Procéll’s assertions and representations as to the contents of the sale because a “relation of Lconfidence” existed between them, due to their relationship as cousins, which prevented them from discovering the fraud.

Following a contradictory hearing in October 2011, the trial court granted the defendants’ exception of prescription, finding that the plaintiffs could have easily discovered what was in the document if they had just read it, that they were aware of the facts surrounding the execution of the document, and that prescription began to run when the document was recorded on November 3, 1993. We affirm for the reasons fully set forth below.

III.

STANDARD OF REVIEW

The plea of prescription must be specifically pleaded and may not be supplied by the court. Ordinarily, the [1134]*1134exceptor bears the burden of proof at the trial of the peremptory exception. However, if prescription is evident on the face of the pleadings, the burden shifts to the plaintiff to show the action has not prescribed. If evidence is introduced at the hearing on the peremptory exception of prescription, the district court’s findings of fact are reviewed under the manifest error-clearly wrong standard of review. If the findings are reasonable in light of the record reviewed in its entirety, an appellate court may not reverse even though convinced that had it been sitting as the trier of fact, it would have weighed the evidence differently.

Carter v. Haygood, 04-646, pp. 8-9 (La.1/19/05), 892 So.2d 1261, 1267 (citations omitted).

IV.

LAW AND DISCUSSION

The plaintiffs contend that the trial court erred in granting the Procell defendants’ exception of prescription. The plaintiffs argue that they were fraudulently induced to execute the sale of the mineral rights in 1993, and that their May 2010 petition to rescind the sale or have the deed reformed is not prescribed because they |fidid not discover the fraud until September 2009, when the leasing agent informed them.

The applicable law provides that prescription runs against all persons unless an exception is established by legislation. La.Civ.Code art.

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99 So. 3d 1107, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sepulvado-v-procell-lactapp-2012.