Sliman v. McBee

311 So. 2d 248
CourtSupreme Court of Louisiana
DecidedMarch 31, 1975
Docket55512
StatusPublished
Cited by61 cases

This text of 311 So. 2d 248 (Sliman v. McBee) 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
Sliman v. McBee, 311 So. 2d 248 (La. 1975).

Opinion

311 So.2d 248 (1975)

Florence Joseph SLIMAN
v.
Hal D. McBEE and Marilyn Sliman McBee et al.

No. 55512.

Supreme Court of Louisiana.

March 31, 1975.
Rehearing Denied April 25, 1975.

*249 William E. Logan, Jr., Gerald C. deLaunay, Lafayette, for plaintiff-applicant.

James T. Guglielmo, Edward B. Dubuisson, Dubuisson, Brinkhaus, Guglielmo & Dauzat, Opelousas, for defendants-respondents.

MARCUS, Justice.

By act of sale dated March 28, 1968, Florence Joseph Sliman sold to Hal D. McBee and Marilyn Sliman McBee (her son-in-law and daughter) certain described property located in the Indian Hills subdivision within the city of Opelousas in St. Landry Parish. The agreed purchase price was $78,000.00, in part payment of which the McBees paid to the vendor $5,000.00 and for the balance thereof executed four promissory notes.[1] The act of sale contained the following language:

*250 It is agreed between the parties that the notes . . . shall be and remain the personal obligation of the makers and their heirs, but no lien shall exist on the lots herein sold securing payment of said notes.

There was no mortgage accompanying the act of sale, which was recorded only in the conveyance records of the parish.

Exactly one year later, on March 28, 1969, Florence Sliman filed suit against the McBees, seeking recognition of her vendor's privilege on the property and its recordation in the mortgage records of the parish. By supplemental petition filed on June 3, 1969, Mrs. Sliman also sought cancellation of the sale for nonpayment of the purchase price on the ground that defendants were in default on payment of the first promissory note, which became due on May 1, 1969.

This lawsuit was settled by an act of compromise dated November 6, 1969, in which Florence Sliman agreed to a dismissal of her claims, including those set forth in the supplemental petition, with prejudice in exchange for payment of the first note by the McBees and their agreement to pay the balance due on the remaining notes according to a revised payment schedule.[2] The settlement agreement further stipulated:

All parties declare and acknowledge that with the exception of the hereinabove referred to notes, No. (sic) 2, 3, and 4, that any and all of the indebtedness which may exist be (sic) either party to the other and any and all claims of every kind which either party may have against the other is hereby compromised and settled and that neither party will make any claim against the other party for any matter or thing which may have arisen or happened prior to the execution of this agreement.

Pursuant to this settlement, the parties moved for and obtained a judgment dismissing all claims with prejudice.

The McBees then executed three mortgages on the property to secure loans from the St. Landry Bank and Trust Company in the amount of $68,800.00. When they defaulted on their obligation to repay the loans, the bank instituted suit for collection of the amount due and recognition of its mortgages on the property. Florence Sliman intervened, seeking a money judgment on the remaining notes which were not paid when due, and recognition of her vendor's lien. The district court rendered judgment in favor of both the bank and Mrs. Sliman against the McBees in the full amounts claimed. However, finding that she had waived her right to a vendor's lien in the act of sale, the court refused to allow Mrs. Sliman a vendor's lien and ruled that her claim was secured only by the judicial mortgage that would result from her recordation of the judgment in the mortgage records. Mrs. Sliman appealed the ruling to the court of appeal, which affirmed the judgment of the district court. St. Landry Bank & Trust Co. v. McBee, 284 So.2d 155 (La.App.3d Cir. 1973). Her application to this court for a writ of certiorari to review the judgment of the *251 court of appeal was denied. 287 So.2d 188 (La.1974).

The present suit against the McBees and the bank was filed during the course of the litigation instituted by the bank on the mortgage notes. In this suit, Mrs. Sliman seeks dissolution of the sale for nonpayment of the purchase price, alleging that she is entitled to a rescission of the sale and return of the property (with the exception of certain described lots that were sold with her written approval or ratification) free and clear of the mortgages held by the bank as a result of the McBees' default on the notes representing the purchase price. Additionally, plaintiff seeks a money judgment against the McBees in the amount of $15,662.53, which she alleges is the difference between the revenues they derived from the property and the amount they paid on the purchase price. After trial on the matter, judgment was rendered in favor of defendants, dismissing plaintiff's petition with prejudice.

Mrs. Sliman appealed the judgment to the court of appeal. In affirming the district court, the court of appeal found in the language of the act of sale not only a waiver by Mrs. Sliman of her right to a vendor's lien, but a waiver of her right to sue for dissolution of the sale for nonpayment of the purchase price as well. Sliman v. McBee, 300 So.2d 585 (La.App.3d Cir. 1974). We granted Mrs. Sliman's application to this court for a writ of certiorari to review the judgment of the court of appeal. 303 So.2d 175 (La.1974).

ISSUES

The issues confronting us for resolution are:

(1) whether plaintiff waived her right to rescind the sale for nonpayment of the purchase price;
(2) if not, whether principles of res judicate or, alternatively, judicial estoppel, foreclose litigation of plaintiff's claim for rescission; and
(3) if not, whether, upon rescission of the sale, the property sold is recoverable free and clear of the mortgages held by the bank.

I.

The court of appeal determined that the language contained in the act of sale (quoted supra), in which Mrs. Sliman agreed that the notes given in payment of the purchase price were to remain a personal obligation and that no lien on the property would secure payment of the notes, constituted a waiver not only of her vendor's lien, but of her right to rescind the sale for nonpayment of the purchase price as well. Review of that ruling requires an understanding of the right of dissolution asserted by the plaintiff as well as application of the rules governing the interpretation of contracts.

The right of a vendor to rescind the sale on account of the vendee's default in payment of the purchase price rests in articles 2045-2047 and 2561-2564 of the Civil Code.[3] Article 2045 provides:

The dissolving condition is that which, when accomplished, operates the revocation of the obligation, placing matters in the same state as though the obligation had not existed.
It does not suspend the execution of the obligation; it only obliges the creditor *252 to restore what he has received, in case the event provided for in the condition takes place.

This dissolving, or resolutory,[4] condition is implied in all commutative contracts[5] and takes effect upon the failure of either party to comply with his engagement and the demand for dissolution by the aggrieved party. La.Civil Code art. 2046 (1870).

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Bluebook (online)
311 So. 2d 248, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sliman-v-mcbee-la-1975.