Succession of Montgomery

506 So. 2d 1309, 1987 La. App. LEXIS 9433
CourtLouisiana Court of Appeal
DecidedMay 6, 1987
DocketNo. 18649-CA
StatusPublished
Cited by2 cases

This text of 506 So. 2d 1309 (Succession of Montgomery) 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
Succession of Montgomery, 506 So. 2d 1309, 1987 La. App. LEXIS 9433 (La. Ct. App. 1987).

Opinion

LINDSAY, Judge.

On January 9, 1984, William Johnson, executor of the Succession of Aliena Rogers Montgomery, filed with the succession a descriptive list of assets and liabilities. Listed under the liabilities is an unsecured note in the original amount of $128,525 executed by Aliena Montgomery in favor of Thomas Montgomery. The amount of liability for the aforementioned note was recorded in the descriptive list as $0.00.

On December 17, 1985, Thomas Montgomery filed a motion to traverse the descriptive list, seeking to have the descriptive list amended to include the amount allegedly remaining due on the note. The executor filed an opposition to the motion to traverse, claiming that the promissory note was issued without consideration. A hearing was held on January 2, 1986. At the conclusion of the hearing, the trial judge denied Thomas Montgomery’s motion to traverse, and dismissed the action with prejudice, ruling that the note had been issued without consideration.

Mr. Montgomery has appealed, raising the issues of whether the trial court properly admitted certain parol and documentary evidence, whether the evidence supported the conclusion of the trial court and whether the trial court erred in rendering a judgment dismissing plaintiff’s motion to traverse “with prejudice.” For the following reasons, we affirm the trial court judgment.

The record reveals that at the hearing on the motion to traverse the descriptive list, counsel for Mr. Montgomery introduced into evidence the promissory note in question, and an attached affidavit which had been executed by the decedent. In the affidavit, the affiant, Aliena Montgomery, states that she has executed a promissory note in favor of her son, Thomas Montgomery, in the amount of $128,525 and that the consideration for the note is the money, groceries and other items furnished by her son since the death of her husband in 1959. Additionally, the affidavit recites that her son has also paid her accounts, paid taxes on real estate, provided transportation and managed her affairs. The notary before whom the affidavit was executed testified that the affidavit expressed the desires of the affiant. Mr. Montgomery did not testify, nor was he present at the hearing.

William Johnson, the executor of the succession and the grandson of the deceased, testified that the note should not be listed in the descriptive list because he felt there was no real debt involved; i.e., there was no consideration for the note. To substantiate his belief, Mr. Johnson testified that Mrs. Aliena Montgomery and her previously deceased husband donated land and a store to Thomas Montgomery in 1959 to compensate him for services rendered and to be rendered in caring for Mrs. Aliena Montgomery. Mrs. Aliena Montgomery’s husband died five days after the act of donation was passed. Furthermore, on January 3, 1981, eight lots in Benton, Louisiana were sold by Mrs. Aliena Montgomery to Thomas Montgomery for $2,000. Mr. Johnson felt that this price was sub[1311]*1311stantially inadequate. Likewise, on June 6, 1981,1 Aliena Montgomery sold approximately 130 acres of land in Bossier Parish to Thomas Montgomery for $37,650. Mr. Johnson also felt that this was a substantially inadequate price. Certified copies of the various transactions were filed in evidence.

Appellant contends that copies of the documents and the testimony of William Johnson were inadmissible. He presents two theories in support of his contention. First, appellant contends that he is a holder in due course of the note in question and therefore a lack of consideration or insufficient consideration may not be raised as a defense. Second, appellant contends that the affidavit and note together constitute an act under private signature duly acknowledged which, at the time of execution, was equivalent to an authentic act and therefore full proof of its contents against the parties, their heirs or assigns. Thus, any evidence presented which would contradict the facts as established in the authentic act should be excluded as parol evidence.

I. ADMISSIBILITY OF EVIDENCE

Appellant first contends that as a holder in due course, no parol evidence was admissible. A holder in due course is a holder who takes the instrument for value; and in good faith; without notice that it is overdue or has been dishonored or of any defense against or claim to it on the part of any person. A payee may be a holder in due course. LSA-R.S. 10:3-302.

The evidence presented at trial was admissible to show whether the appellant took the note for value and whether he had notice of any defense to it by any person. Therefore, the evidence was relevant to show whether appellant was in fact a holder in due course. If appellant is not a holder in due course, then he took the instrument subject to the defenses of want or failure of consideration. LSA-R.S. 10:3-306.

Appellant’s second contention is that the note and affidavit constitute an act under private signature, duly acknowledged, and therefore other evidence cannot be admitted to contradict this “authenticated document.”

Under former Civil Code Article 2242,2 an act under private signature, duly acknowledged has, between those who have subscribed to it, and their heirs and their assigns, the same credit as an authentic act. An authentic act is full proof of the agreement contained in it, against the contracting parties and their heirs or assigns, unless it be declared and proved a forgery. LSA-C.C. Art. 2236.3

However, appellee contends that evidence of simulation and failure of consideration were admissible by virtue of former LSA-C.C. Art. 2239.4 That article of the Code provides that forced heirs shall have the right to annul absolutely and by parol evidence the simulated contracts of those from whom they inherit, and they shall not be restricted to the legitime.

Appellee is correct in asserting that LSA-C.C. Art. 2239 allows him, as executor of the succession and a forced heir, to attack an act of the deceased, even though in authentic form, by parol evidence to prove that the act is a simulated contract. Smelley v. Ricks, 174 La. 734, 141 So. 445 (1932); Succession of Broussard, 306 So.2d 399 (La.App. 3rd Cir.1975).

The evidence was also admissible to show that the deceased has acted to deplete her estate through the use of a simulation to defeat the forced heirship laws of this state. Smith v. Smith, 239 La. 688, 119 So.2d 827 (1960).

[1312]*1312For the foregoing reasons, we conclude that the trial court correctly admitted Mr. Johnson’s testimony concerning a lack of consideration, as well as the evidence of the other donations which the deceased made to Thomas Montgomery.

II. FINDINGS OF FACT AND CONCLUSIONS OF LAW

Appellant contends that, even if the disputed evidence is admissible, the trial judge erred in concluding that he failed to carry his burden of proving that consideration was given for the note and in allowing the executor to list the note in the descriptive list as having no balance owed.

In cases involving the issue of lack or failure of consideration there exists a shifting burden of proof.

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Related

Gibraltar Savings, F.A. v. First Mortgage Corp.
825 F. Supp. 746 (M.D. Louisiana, 1993)
Succession of Montgomery
512 So. 2d 1181 (Supreme Court of Louisiana, 1987)

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Bluebook (online)
506 So. 2d 1309, 1987 La. App. LEXIS 9433, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-montgomery-lactapp-1987.