Stafford v. Tolmas Realty Co.

146 So. 61
CourtLouisiana Court of Appeal
DecidedFebruary 13, 1933
DocketNo. 14149.
StatusPublished

This text of 146 So. 61 (Stafford v. Tolmas Realty Co.) 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
Stafford v. Tolmas Realty Co., 146 So. 61 (La. Ct. App. 1933).

Opinion

HIGGINS, Judge.

This is a suit, via ordinaria, to recover the sum of $495 representing installments alleged to be due on a certain mortgage note payable at the rate of $45 per month, and for recognition of a vendor’s lien and privilege upon certain real estate securing the payment of the note. It is admitted that John P. Stafford brought the suit in his name for Stafford, Derbes & Roy, Inc., the owners of the notes.

Defendant answered, admitting the execution of the note and the mortgage, but denying liability on the ground that the said note and mortgage were obtained by fraud and misrepresentation by the plaintiff’s real estate salesman, who induced the defendant to purchase six squares of ground from plaintiff at the sum of $800 per square, agreeing in consideration thereof to have gravelled streets placed through the property, electric light and power lines installed in the subdivision, and water mains laid therein, within a year from the date of the sale, but that plaintiff not only neglected to have these improvements made, but peremptorily refused to do so about a year after the sale was effected and after defendant had paid to the plaintiff $975 on account of the purchase price of the property. Defendant in his answer prayed as follows:

“Wherefore, respondent prays that this cause be tried by jury, and that, after due proceedings had, it do have judgment in its favor and against the plaintiff, dismissing the plaintiff’s suit at his cost, reserving to respondent the right to sue for the return of all sums paid to Stafford, Derbes & Roy, Inc., and the cancellation of the said sale;

“And it further prays for all necessary orders and for all general and equitable relief.”

The jury rendered the following verdict;

“And after hearing the pleadings, evidence and argument of counsel, and the charge of the Court having been delivered to them, the said jury retired and thereafter, the said jury returned into Court, and through their foreman, tendered the following as their verdict.
“We, the jury, find a verdict for the defendant, rescinding the sale referred to in the pleadings, and reserving defendant’s right to claim return of all amounts paid by it thereunder.
“[Signed] Clifford C. Morphy
“Foreman.”

The trial judge rendered the following judgment:

“Considering the verdict of the jury herein, and the law and evidence applicable thereto, for the reasons orally assigned.

“It is ordered, adjudged and decreed, that there be judgment herein in favor of the defendant, Tolmas Realty Company, Inc., against the plaintiff, John P. Stafford, rejecting the demands of the plaintiff, at his costs; reserving to the said defendant, the right to sue for the return of all sums paid to Stafford, Derbes & Roy, Inc., and the cancellation of the sale herein referred to, in plaintiff’s petition.”

Plaintiff has appealed from this judgment.

Plaintiff contends that, conceding arguendo that defendant successfully bore the burden of proving by a preponderance of the evidence the alleged misrepresentations and fraud, the court is powerless to grant defendant the relief sought because the prayer of the answer is entirely inadequate. Defendant counters by saying that under its prayer for equitable and general relief the court can render any judgment which would do substantial justice between the parties.

Assuming that defendant successfully showed that it was defrauded by the salesman of the plaintiff, a view most favorable to the defendant, but upon which issue we refrain from expressing any opinion, let us consider the question of the sufficiency of the prayer of defendant’s answer.

We first note that defendant did not plead a failure of consideration, but predicated its whole defense upon the plea of fraud. The answer does not contain any averments that the defendant is still the owner of the purchased property, and that it is ready and *63 -willing to reconvey tlie property to the plaintiff upon the return of the sum of $975, paid on account of the purchase price. No attempt was made by defendant on the trial of the case on the merits to offer evidence along these lines which might tend to enlarge the pleadings, although our learned brother below was liberal in permitting defendant to offer all evidence tending to show misrepresentation and fraud. In short, defendant made no attempt to enlarge the pleadings by offering evidence tending to show that, because of the alleged fraud, defendant was willing to have the court rescind the sale and order the return of the real estate to the plaintiff, and the amount of $975 paid on account of the purchase price to be refunded to defendant.

Defendant expressly prays that plaintiff’s suit be dismissed and that defendant's right be reserved to ask for the rescission of the sale and the return of the money paid on account of the purchase price in another suit.. We observe that the verdict of the jury went beyond the prayer and rescinded the sale and reserved to defendant its right to claim from the plaintiff all amounts paid on account of the purchase price. The judgment of the court below, however, restricted the verdict of the jury in accordance with defendant’s prayer, with the result that the defendant has the plaintiff’s property, whether desirable or undesirable, valuable or worthless, and with a right to choose the time, if he desires: to do so, to enter a suit for the cancellation and rescission of the sale and return of the amount paid on account of the purchase price.

In Poche v. New Orleans Home Investment Co. et al., 52 La. Ann. 1287, 27 So. 797, 798, the Southern Athletic Club owned certain real estate in the city of New Orleans which was sold to the New Orleans Home Investment Company, Limited, for the sum of $12,000, represented by two notes each for the sum of $6,000. One of the notes, without knowledge of the Athletic Club, was negotiated to Mrs. Poche, and the other was retained by the club. When the officers of the club learned that the property had not been sold for $6,000 cash and a $6,000 note as agreed, but had been sold as above described, it intervened in a foreclosure proceeding by Mrs. Poche against the Home Investment Company, and prayed that “the sheriff be restrained from making title to Mrs. Poche; that the sale of March 27, 1896, to the Home Investment Company be annulled; and that the ownership of the property in question be decreed to be in the Southern Athletic Club.” The club did not tender the return of the note and the cash that it received on account of the purchase price of the property. Mrs. Poche and the Home Investment Company filed exceptions of no cause of action on the ground that the third opponent did not allege that it had returned, or offered to return, the note and cash received by it representing the purchase price. There was judgment adverse to the third opponent, and it appealed. In affirming the decision of the lower court, the Supreme Court said:

“The petition of third opposition is really a suit in revendication. Before bringing the suit the plaintiff did not return the price of the sale which it had received, neither did it offer to do so, nor has it done so since.

“The proposition is well settled that a vendor cannot maintain a suit in revendication without having first tendered the return of the price.

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146 So. 61, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stafford-v-tolmas-realty-co-lactapp-1933.