Subdivision Realty Co. v. Woulfe

135 So. 71, 17 La. App. 446, 1931 La. App. LEXIS 190
CourtLouisiana Court of Appeal
DecidedJune 8, 1931
DocketNo. 13,750
StatusPublished
Cited by4 cases

This text of 135 So. 71 (Subdivision Realty Co. v. Woulfe) 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
Subdivision Realty Co. v. Woulfe, 135 So. 71, 17 La. App. 446, 1931 La. App. LEXIS 190 (La. Ct. App. 1931).

Opinion

HIGGINS, J.

The plaintiff brings this action against the defendant on a written contract or bond for deed for the sale of real estate and fourteen notes, maturing monthly, given as a part of the purchase price for the property. The petition alleges the contract was entered into on August 15, 1927, under the terms of which defendant agreed to purchase certain lots of ground for the sum of $600, represented by a cash payment of $60 and thirty promissory notes of $18 each, payable monthly; that the defendant made the initial cash payment of $60 and also paid sixteen of the notes, but failed to pay the remaining fourteen, which had all matured and were unpaid notwithstanding amicable demand; that plaintiff was- ready and willing to convey to the defendant a warranted title to the property free of incumbrances, upon completing the payment of the fourteen notes sued upon.

The defendant, in his answer, admits the execution of the agreement,-but avers that the contract, or bond for deed for the sale of the real estate was, in accordance with its own terms, canceled by virtue of a letter of the plaintiff dated May 7, 1930, and a letter of the defendant in reply thereto dated June 6, 1930, and that, therefore, the notes being sued upon are without consideration and should be returned to the defendant. Defendant also, in reconvention, seeks to recover from the plaintiff the $60 cash payment and the amount of the sixteen notes which he paid on account of the purchase price of the property, setting up in his claim in reeonvention that the contract, or bond for deed, having been canceled by plaintiff on May 7, 1930, the plaintiff could not retain the land and also the payments on account of the purchase price made by defendant, because the law of Louisiana does not sanction the payment of punitive or exemplary damages.

The case was tried solely upon exhibits consisting of the contract, or bond for deed, the letter of the plaintiff of May 7, 1930, and the reply of the defendant thereto of June 6, 1930, and also a letter of plaintiff to defendant dated June 11, 1930.

There was judgment for defendant dismissing the plaintiff’s suit and awarding to defendant, as plaintiff in reconvention, a sum equal to the amount paid by him on account of the purchase price: of the land. Plaintiff has appealed.

The pertinent portion of plaintiff’s letter dated May 7, 1930, reads as follows:

“Mr. James J. Woulfe, 2658 Canal St., New Orleans, La.
“Dear Sir: On August 15th, 1927, under bond for deed No. 24 you agreed to purchase from the Subdivision Realty Co., Inc., Lots Nos. 1 and 38 of Square No. 5 in Pine Crest Subdivision, Slidell, La., making at that time a ten per cent payment and agreeing to pay a certain proportion of the purchase price each month.
“Only thirteen payments have been made by you on this contract and you have failed to comply with the conditions of the same. Your attention is directed to the following paragraph in the contract:
“ ‘It is mutually agreed that should the purchaser fail to make any of the payments herebefore specified, the whole amount remaining unpaid, shall at once become due and payable, and at the option of the seller may either be recovered in any proper action on said note or notes, or the note or notes may be returned to the Purchaser, and all payments previously made Shall be forfeited to the Seller as liquidated damages for the failure to make such pay[448]*448ments in whole or in part, and all payments. that may have been made previously to such default shall be forfeited to the Seller as liquidated damages, notwithstanding the partial performance of this agreement by the Purchaser, the Purchaser hereby waiving all demands and formal putting in default. Thirty days written notice of such action on the part of the Seller - to be granted to the Purchaser, such written notices to be by registered mail to the address of the Purchaser which for the purpose of this contract is declared to be 2658 Canal St.’
“This letter is written you as a final thirty days notice of cancellation of said contract provided you have not complied with its conditions within that time. In the event you have not done so, the Company will retain payments made as liquidated damages in accordance with the terms of the contract as. (and) cancel same.
“After that time unless such adjustment is made, we will be free to sell the property to other persons without any further notice to you; please be advised accordingly.”

The relevant part of the defendant’s letter of June 6, 1930, written- by his attorney in response to the above letter, reads as follows:

“Subdivision Realty Co., Inc., 510 American Bank Bldg., New Orleans, La. Attention Mr. Prank C. Codifer.
“Dear Sir:
* * * *
“The paragraph contained in said purported Bond for Deed, and quoted in your letter which apparently gives to the vendor the right to cancel the agreement and retain as liquidated damages installments already paid, is null and void because not warranted in law, and is arbitrary, unreasonable and without consideration. It was .so held in the case of Heeb et uxor vs. Codifer & Bonnabel, Inc. (of which decision you are, no doubt, fully cognizant), decided by the Supreme Court of Louisiana, October ,5, 1926, and reported in the 162d Louisiana Reports, at page 139.
“As you have absolutely no right, legal or moral, to retain as liquidated damages the amounts paid in as a down payment and in installments, we hereby, on our client’s behalf, make formal demand upon you to return all amounts so paid in by him, as well as. the unpaid notes which you also hold.”

The reply of plaintiff under date of June 11, 1930, to defendant’s letter of June 6, 1930, is as follows:

“Under date of May 7, 1930, the Subdivision Realty Company, Inc., wrote you advising that your contract of August 15, 1927, for the purchase of lots 1 and 38 in Square 5, Pine Crest Subdivision, would be cancelled in thirty days and payments made forfeited as liquidated damages unless the outstanding notes were paid by you.
“This letter inadvertently stated that cancellation of the contract would follow as- it has been and is the intention of “the Subdivision Realty Company, Inc., to hold you to the fulfillment of your contract of August 15, 1927, and to the payments of fourteen remaining notes of $18.00 each, now being held by Codifer Development Company, Inc., as agents for the Subdivision Realty Company, Inc.
“You are hereby advised that the Subdivision Realty Company, Inc., makes demand on you for the payment of the said notes in principal and interest and that the Company is ready to convey a good and warrantable title to you to lots 1 and 38 in Square 5, Pine Crest Subdivision, upon said payment of remaining notes being made, failing which recessary steps w! 1 be taken to enforce collection of the said notes and the execution of the contract.”

Prom these documents we note that the facts of the instant case are identical with those in the case of Heeb et ux. v. Codifer & Bonnabel, Inc., 162 La. 139, 110 So. 178. In both cases there is involved a bond for deed or contract for the sale of real estate on an installment basis. The contracts contained the same cancellation and forfeiture clauses.

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Bluebook (online)
135 So. 71, 17 La. App. 446, 1931 La. App. LEXIS 190, Counsel Stack Legal Research, https://law.counselstack.com/opinion/subdivision-realty-co-v-woulfe-lactapp-1931.