Stephenson v. Nations Credit Financial Services Corp.

754 So. 2d 1011, 1999 WL 743980
CourtLouisiana Court of Appeal
DecidedSeptember 24, 1999
Docket98 CA 1688, 98 CA 1689
StatusPublished
Cited by24 cases

This text of 754 So. 2d 1011 (Stephenson v. Nations Credit Financial Services Corp.) 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
Stephenson v. Nations Credit Financial Services Corp., 754 So. 2d 1011, 1999 WL 743980 (La. Ct. App. 1999).

Opinion

754 So.2d 1011 (1999)

Claude STEPHENSON, et al.
v.
NATIONS CREDIT FINANCIAL SERVICES CORP.
John Han, et al.
v.
Claude Stephenson, et al.

No. 98 CA 1688, 98 CA 1689.

Court of Appeal of Louisiana, First Circuit.

September 24, 1999.

*1013 Robert McComiskey, Christopher Gobert, Metairie, for Plaintiffs/Appellants, Claude Stephenson, et al.

John K. Han, New York City, for Defendants/Appellees, John Han, et al.

Before: CARTER, C.J., LeBLANC, and PETTIGREW, JJ.

CARTER, C.J.

This appeal arises out of a petition for declaratory judgment filed by Claude and Nelwyn Stephenson (the Stephensons), and Robert Schorr[1] (Schorr). Nations Credit Financial Services Corporation (Nations), was named as the defendant in the petition that sought a declaration of the existence of a public right of way and servitude of passage across property that was owned by Nations at the time the petition was filed. Part of this property adjoined the Stephensons' property. Nations agreed to execute a consent judgment in favor of the Stephensons and Schorr. However, prior to the execution of the consent judgment, the property was sold by Nations to several members of the Han Family.[2] Three months after this sale, the consent judgment was executed by counsel for Nations, the Stephensons and Schorr, and was signed by the trial court. Upon learning of the consent judgment, the Hans sought and obtained a judgment annulling the consent judgment because the Hans were persons required by LSA-C.C.P. art. 641 to be joined as parties, but were not made parties to the declaratory judgment action. The Stephensons and Schorr filed a motion for new trial, which motion was denied. They then appealed from the judgment granting the petition for nullity and from the judgment that denied the motion for new trial and granted a preliminary injunction.

FACTUAL BACKGROUND

The Stephensons own a parcel of property which is bordered on the east and northeast by the property that is the subject of this appeal. The Stephensons claim to have used a road, which runs east and west through the Hans' property, as the only means of accessing a public road from their property. Accordingly, the Stephensons contend that a 40 foot "public right of way"[3] exists on the Hans' property and *1014 that their property is favored with a servitude of passage upon the right of way. Schorr owns property located to the west of the Stephensons and also contends he used the road running through the Hans' property and the Stephensons' property as the only means of accessing a public road from his property.

Dr. David M. Jarrott was the owner of the subject property from 1983 until 1996. The subject property measures approximately 18 acres, consisting of two contiguous tracts of land. The northern tract contains approximately 8.61 acres, and the southern tract contains approximately 9.97 acres. Dividing the northern and southern tracts is a road that runs east to west through the subject property. This road commences as a driveway at its intersection with the road bordering the subject property to the east. A mortgage on the property was executed in favor of Nations to secure payment of a loan made by Nations to Dr. Jarrott. When Dr. Jarrott defaulted on the loan from Nations in early 1996, Nations became the owner of the property.

In October 1996, appellants, the Stephensons and Schorr, became aware that the property was being offered for sale by Nations. Concerned that a new owner may not acknowledge the existence of the "right of way" through the property in favor of appellants' properties, appellants filed a Petition for Declaratory Judgment against Nations, as the record owner of the property. On November 11, 1996, the Hans signed a purchase agreement on the property. In connection with the purchase agreement, John Han and Youn Han initialed certain "Seller's Special Stipulations." One of the stipulations provided that the "[s]ale is subject to the 40' & 50' right of ways."[4]

In November or early December, Nations verbally agreed to enter a consent judgment recognizing the existence of a "public right of way" through the subject property. However, Nations' counsel did not want to sign the consent judgment until he received written authorization from his client. Accordingly, the consent judgment was prepared, but not executed.

Thomas Guidry was the attorney retained by the Hans to represent their interests in closing the sale of the subject property. Correspondence between Mr. Guidry and Nations' counsel exchanged on December 20, 1996, reflects that Mr. Guidry was aware both of the pending litigation between Nations and appellants, and of Nations' intention to enter into a consent judgment granting a public right of way and a predial servitude of passage in favor of appellants' properties. Mr. Guidry even received a copy of the proposed consent judgment on December 20.

The Hans purchased the property by Act of Cash Sale on January 3, 1997. Immediately prior to the execution of the Act of Cash Sale, Mr. Guidry discussed with the Hans the pending litigation between appellants and Nations pertaining to the subject property; the existence and legal and practical implications of the right of way asserted in the pending litigation; and the fact that Nations had conceded the existence of a 40 foot right of way through the subject property that the Hans were about to buy and had agreed to and intended to execute a judgment to the same effect. A provision in the Act of Cash Sale addressing a 40 foot right of way in favor of appellant Stephensons' property was specifically pointed out to the Hans. This provision stated: "[T]he [subject] property is conveyed and accepted subject to all restrictions, servitudes ... affecting the above property of record as contained in *1015 the conveyance records and plats ... including but not limited to ... a forty (40') foot right of way in favor of property presently owned by Claude Stephenson." According to Mr. Guidry, the Hans indicated that "they knew they would have no legal right to prevent others from exercising the forty foot (40') right of way referenced in the Act of Cash Sale." The Hans then proceeded to execute the Act of Cash Sale on January 3, 1997.

Counsel for appellants sent a letter to Nations' counsel on January 7, 1997, to confirm a telephone conference they had on December 30, 1996, regarding the consent judgment. In the letter, appellants' counsel expressed concern that the delayed response to the proposed consent judgment was intended to prohibit appellants from recording the judgment prior to the sale of the property to the Hans. The letter requested immediate approval from Nations so that the matter could be put "to rest." Despite this request, no further action was documented until March, when appellants' counsel propounded a request for admissions to Nations seeking to compel execution of the consent judgment.

On April 11, 1997, John Han sent a letter to Dr. Stephenson regarding the claim for an "easement through [the] property." John Han noted that after examining the deed and property records, he was unable to find any recording of such an "easement." Thus, John Han requested any documents that established the legal right of appellants to an "easement" through the subject property. Shortly thereafter, on April 28, 1997, the consent judgment was signed by counsel for Nations, counsel for appellants and the trial judge. The consent judgment recognized: 1) the existence of a public right of way

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Cite This Page — Counsel Stack

Bluebook (online)
754 So. 2d 1011, 1999 WL 743980, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stephenson-v-nations-credit-financial-services-corp-lactapp-1999.