Smith v. Succession of Johnson

185 So. 2d 603
CourtLouisiana Court of Appeal
DecidedApril 4, 1966
DocketNo. 6625
StatusPublished
Cited by2 cases

This text of 185 So. 2d 603 (Smith v. Succession of Johnson) 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
Smith v. Succession of Johnson, 185 So. 2d 603 (La. Ct. App. 1966).

Opinion

BAILES, Judge.

On August 11, 1961, Lawrence P. Smith, plaintiff-appellee, and Leo O. Johnson, now deceased, entered into an act of exchange of certain property located in Orleans, Tangipahoa and St. Tammany parishes. As [604]*604the property received by Johnson was of greater value than the property assigned to Smith, in order to equalize the disparity of values Mr. Johnson transferred to Mr. Smith certain promissory notes described therein made and executed by various parties, ownership of which was acquired by Johnson in previous transactions. These notes were secured by mortgages of inferior rank on certain immovable property of the various makers.

The act of exchange was entered into to consummate an earlier agreement between the parties. The earlier agreement was dated July 3, 1961. Among other conditions and stipulations, this latter agreement contained the following clause:

“As a further guarantee, party of the second part [Leo O. Johnson was the party of the second part] agrees to substitute any mortgage note that may come in to default with another mortgage note of approximately the same amount. Any mortgage note that exceeds four months in the arrears shall be deemed in default.”

At the time the act of exchange was executed the Notary Public, who was also a duly licensed and practicing attorney at law, advised the parties against including the above quoted guarantee clause therein as it could possibly be construed as a cloud on the title to the various properties involved in the transaction. On the Notary’s advice that the July 3, 1961 agreement, with reference to the substitution of notes, was still binding, Mr. Smith, plaintiff, agreed to the completion of the transaction without the insertion of the quoted clause.

After the lapse of about nine months, there were some of the promissory notes in default. The plaintiff made written demand on Mr. Johnson to make substitution of certain notes then in default. This he failed to do. Prior to institution of this action, Mr. Johnson died.

This is an action brought by Lawrence P. Smith against Mrs. Cecile Chatelain, widow of Leo O. Johnson, and his two sons, Carl P. Johnson and Nelson Lee Johnson, and Mr. Edward C. Kurtz, testamentary executor of the Succession of Leo O. Johnson, to recover the sum of $32,104.26, this being the total balance due on the several promissory notes in default at the time suit was filed, under the guarantee clause of the July 3, 1961 agreement quoted supra. Alternatively, plaintiff asked for judgment ordering the defendants to give new mortgage notes of the same aggregate amount in substitution* for the delinquent notes.

In response to this petition, defendants filed exceptions of no cause or right of action, and stated therein:

“These exceptions are based on the fact that petitioner relies on a purported ‘written sale/and/or exchange agreement’ with decedent, Leo O. Johnson dated July 3, 1961; that petitioner has studiously avoided reference to a subsequent sale between these parties, act before Edmond G. Miranne, Notary Public, Orleans Parish, dated August 11, 1961 and reg. COB 255, folio 642, Tangipahoa Parish, La., which authentic act was subsequent in time, and constituted the final and binding agreement between the parties; that no reference to guarantee of mortgages is made therein, and without an allegation of error, fraud or mistake, no extrinsic or parol testimony can be adduced to vary or alter the terms of the later instrument. * *

After overruling the peremptory exceptions, the trial court ordered the plaintiff to amend his petition to include an action to reform the act of exchange of August 11, 1961, to include the stated guarantee clause. The plaintiff complied with this order of the court within the time allowed, and prayed for judgment in accordance with the prayer of the original petition, and in the alternative for judgment reforming the act of exchange as to include the guarantee clause quoted supra.

After trial on the merits, the lower court decreed the reformation of the act of exchange of August 11, 1961, to include the [605]*605guarantee clause. From this judgment, defendants appeal.

There is no dispute as to the material facts of this case.

While the defendants have failed to set forth any specifications of error, from our study of their brief it appears the defendants contend the trial court erred in ordering the reformation of the notarial act of exchange between the parties as this act in authentic form is full proof of itself and cannot be altered or varied by parol evidence or by the terms of the prior agreement in the absence of proof of forgery, fraud or error. There is no allegation of proof of either before the court.

In their brief, defendants state “[T]he sole question which this Court really has to decide is this: Does the prior written agreement (of July 3, 1961) serve to vary or alter the act of exchange which was passed between the parties on August 11, 1961 ?” They argue the clause in the act of exchange which reads: “Receipt of which is hereby acknowledged, and full acquittance granted therefor” referring to an acknowledgment by plaintiff of receipt of the notes from the notary public after the latter had paraphed the same “Ne Varietur” for identification with the act of exchange, means the plaintiff accepted these particular twenty-one notes in full payment and acquittance of the obligation for which these second mortgage notes were given by Johnson to Smith. They argue if plaintiff is allowed to do what he is attempting to do or accomplish in this action he would be substituting consideration and “would abrogate his own acquittance, discharge and release insofar as the second mortgage paper in which he specifically acquiesced is concerned.”

We find this argument untenable. There is no allegorical meaning in this clause. It means no more than what it literally states. The meaning is Mr. Smith has received the notes from the Notary Public and he is discharged of the obligation he had of delivering the notes to the recipient thereof. There is nothing repugnant in this clause to the conditions of the guarantee contained in the July 3, 1961 contract.

Defendants cite the case of Colorado Milling & Elevator Co. v. Rapides Grocery Co. (La.App.1932) 142 So. 626, as a parallel to the instant case. We find it to be otherwise. In this cited case, the court refused to admit testimony of an agreement as to price of flour because the price thereof was expressly stated in the contract, and there was no proof of fraud.

Also cited in support of defendants’ position is the case of Harnischfeger Sale Corporation v. Sternberg (1934) 179 La. 317, 154 So. 10. Therein plaintiff sued defendant for the balance due on the purchase price of a dragline. Defendant, among other things, contended he was induced to purchase this machine on the representation it would operate successfully with a 2-yard bucket on a 60-foot boom, when, in truth and in fact, it would not so operate. Plaintiff objected to the introduction of this evidence on the ground parol evidence is inadmissible for the purpose of altering, varying, or contradicting a written contract in the absence of an allegation and proof of fraud, error, or duress.

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Related

Stanley v. Orkin Exterminating Co., Inc.
360 So. 2d 225 (Louisiana Court of Appeal, 1978)
Smith v. Succession of Johnson
187 So. 2d 451 (Supreme Court of Louisiana, 1966)

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Bluebook (online)
185 So. 2d 603, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-v-succession-of-johnson-lactapp-1966.