Sheeks v. McCain-Richards, Inc.

76 So. 2d 892, 226 La. 578, 1954 La. LEXIS 1358
CourtSupreme Court of Louisiana
DecidedDecember 13, 1954
Docket41411
StatusPublished
Cited by10 cases

This text of 76 So. 2d 892 (Sheeks v. McCain-Richards, Inc.) 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
Sheeks v. McCain-Richards, Inc., 76 So. 2d 892, 226 La. 578, 1954 La. LEXIS 1358 (La. 1954).

Opinion

HAWTHORNE,. Justice.

Plaintiff W. C. Sheeks instituted this suit to recover an in solido judgment against McCain-Richards, Inc., a corporation, and its president, Wilmot McCain, in the sum of $98,582.53 as damages for an alleged breach of contract. After trial in the lower court there was judgment for plaintiff in the sum of $7,760.33, and defendants have appealed. Plaintiff has answered the appeal seeking an increase of the amount awarded.

*583 On July 31, 1947, plaintiff Sheeks and defendant corporation McCain-Richards, Inc., by authentic act entered into a contract in which plaintiff agreed to buy and defendant agreed to sell a tract of land situated in Richland Parish, which was determined by a subsequent survey to contain 155.16 acres. The purchase price in the contract was fixed at $75 an acre, and the act recited that $180 was paid in cash, receipt of which was acknowledged by the defendant McCain-Richards. The balance of the purchase price was to be paid as follows: $14 per acre (which would amount to $2,172.24 not including interest) was to be paid on November 1, 1948, and $15 per acre for each of the years 1949, 1950, 1951, and 1952 was to be paid on November 1 of each year (which would amount each year to $2,327.45 plus interest as fixed in the contract).

Under the provisions of this contract a deed to the land, with vendor’s lien and mortgage retained, was to be executed when plaintiff Sheeks had paid one-half of the purchase price. The contract also contained a provision that Sheeks was to cultivate all of the cultivatable lands in the tract beginning January 1, 1948, and then stipulated that Sheeks “ * * * hereby assigns and pledges, one-half of all of the future crops to be raised on said property, to secure the payments of the amounts provided for in this contract as will be due and payable the 1st party [McCain-Richards] * * * The contract also provided that the proposed purchaser was to pay all taxes and insurance to become due on the property from January 1, 1948.

About the time this contract was signed, plaintiff informed defendant Wilmot McCain that his purpose in acquiring the property was to convert it into a rice farm, and McCain at that time agreed to assist him financially in the conversion of the property and the purchase of machinery and to advance him sums to pay the expenses of labor, materials, etc., in growing rice on the property. Upon taking possession of the property plaintiff constructed canals, ditches, and levees and installed pumps, motors, pipes, etc., in order to prepare the land for planting rice in the spring of 1948. In these operations he expended what money he had available. Since his own funds were inadequate, he called up on McCain for financial assistance, which was granted. Plaintiff raised rice crops on the land in 1948 and 1949. The proceeds of the 1948 rice crop, amounting to $13,122.08, were turned over to McCain, and McCain also received from the 1949 crop the sum of $5,045.45.

Plaintiff contends that at the end of the 1949 crop year McCain arbitrarily and without cause terminated the contract between them under which plaintiff had agreed to purchase the land, and refused to permit him to conduct any further farming operations on the property; that all of this constituted a breach of the contract, and that as a result of this breach he was damaged in the amount alleged herein- *585 above. Plaintiff itemizes these damages ■ as follows: • ■

1. Cash payment made at tlm time the contract was executed, $180;

2. Own money expended in converting the land to rice operations, $6,000;

3. Annual installments paid on contract and purchase of equipment, materials, etc., to the total amount of the proceeds received by defendant from the 1948 and 1949 rice crops amounting to $18,167.53;

4. Value of improvements to land as a result of plaintiff’s labor in constructing canals, ditches, levees, etc., $14,235 ;

5. Loss of profit which plaintiff would have realized from future rice crops had the contract not been breached, $50,000.

Defendant McCain’s principal defense is that he did not breach the contract; that at the end of the 1949 crop year, or on or about November 23 of that year, the contract was terminated by mutual consent of the parties, and all other business dealings- and transactions of these parties were amicably settled, all by oral agreement. In the alternative he contends that, in the event the court should find that the contract had not been terminated and all bttsi-' ness transactions between the parties not settled, there should be judgment against the plaintiff in the sum of $10,000 alleged to be due McCain.

The trial judge concluded that there had been a breach of the contract and awarded to plaintiff damages in the total sum of $7,760.32. Of this sum, $3,630.81 was the : amount which the trial judge found to be the actual amount of money invested by the plaintiff Sheeks in the property. The 'remainder of the judgment, $4,129.51, was .the amount which the trial judge awarded as compensation for breach of the contract ■ and was computed as follows: The judge 'took the total proceeds of the 1948 and ■ 1949 rice crops, amounting to $18,167.53, •' deducted from these total proceeds current expenses and credits which he found to be allowable, arrived at the sum of $8,259.02, and then (although he did not explain why) , divided this amount ($8,259.02) in half.

On November 23, 1949, while plaintiff Sheeks was engaged in loading his 1949 rice crop at Rayville, Louisiana, for consignment to Kaplan Mills in Crowley, he was accosted by Wilmot McCain, one of the defendants, who, according to Sheeks, accused him of selling this rice contrary to a verbal agreement they had made to sell it together. Tempers flared, and the argument became heated, almost resulting in a fist fight. According to Sheeks, McCain demanded that the rice be turned over to him and stated that he was then and there terminating the contract between the parties in which McCain-Richards, Inc., had agreed to sell and plaintiff had agreed to buy the lands in question. McCain, on the other hand, contends that after this affair he and Sheeks retired to a lawyer’s office in Rayville for the purpose of further *587 discussing their differences, and that at this office they orally came to a mutual understanding and a definite agreement that Sheeks would leave the place, and that McCain would take the proceeds of the 1949 crop and cancel the remainder of Sheek’s indebtedness; that McCain was to keep all equipment on the place covered by chattel mortgages which he held, and that Sheeks could retain his personal property which was not covered by chattel mortgages. Sheeks admitted the meeting in the attorney’s office but denied that they had reached any agreement.

After the date of this meeting Sheeks never returned to the property which he had contracted to buy. He testified that McCain immediately took possession of the property, padlocked the gate, put “no Trespassing” signs on the fence, and removed a tenant whom Sheeks had permitted to stay on the property. McCain denied these acts, but the record conclusively shows that McCain did take possession of the property and leased it to another who went into possession and raised a rice crop on this land for the year 1950.

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Bluebook (online)
76 So. 2d 892, 226 La. 578, 1954 La. LEXIS 1358, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sheeks-v-mccain-richards-inc-la-1954.