Tate v. Ludeau

197 So. 612, 195 La. 954, 1940 La. LEXIS 1130
CourtSupreme Court of Louisiana
DecidedJune 28, 1940
DocketNo. 35669.
StatusPublished
Cited by1 cases

This text of 197 So. 612 (Tate v. Ludeau) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Tate v. Ludeau, 197 So. 612, 195 La. 954, 1940 La. LEXIS 1130 (La. 1940).

Opinion

ROGERS, Justice.

The plaintiff, Albert Tate, appeals from a judgment rejecting his demand for the rescission of a certain mineral lease and for attorney’s fees for prosecuting'the suit.

It appears to have been established to the satisfaction of the trial judge that the demand of Emile Ludeau and W. A. Jacobson, defendants, for a reformation of the lease-contract was well-founded. The determination of this issue necessarily involves questions of fact; hence, the nature and character of the evidence is the principal matter of inquiry on this appeal.

On December 5, 1935, Albert Tate executed an option agreement, wherein he obligated himself to grant to Emile Ludeau, or any other person designated by him, a mineral lease on 1,356.90 acres of land described in the lease. The consideration of the contemplated lease was fixed at $2.50 per acre for the first year and fifty cents per acre for every six months thereafter. The option agreement stipulated that the lease was to be executed on Bath’s Form 12A, Louisiana Oil, Gas and Mineral Lease Form. On March 9, 1936, the option was extended by Albert Tate to April 1, 1936. On March 25, 1936, the Continental Oil Company leased a portion of the land embraced by the option. This lease was executed on Form 10 Special. On March 27, 1936, the remainder of the property embraced by the option was leased to Emile Ludeau and W. A. Jacobson. This lease was executed on Bath’s Form 12 instead of on Bath’s Form 12A as specifically designated in the option agreement which, defendants contend, manifested the true intention of the parties. .

The plaintiff received $3,392.25 at the execution of the lease which, according to the option agreement, was the payment in advance of rental for one year instead of six months as provided for in the form of lease actually used.

The trial judge assigns the following reasons for holding that ifiutual error and mistake entered into the execution of the contract of lease, viz.:

“There are no substantial reasons disclosed by the record which can or do convince us that any contract other than that *958 contemplated by the option agreement executed on December 5th, 1935, and whose expiration date, March 9th, 1936, was extended by mutual consent to April 1st, 1936 (exhibits D-2, D-3), was actually entered into and executed on March 27th, 1936 (exhibit D-l). The evidence clearly preponderates in favor of the view and leads to the conclusion that no event or circumstance intervened and no discussion or conversation between the parties arose between the date of the execution of the option agreement and the execution of the lease from which we can reasonably infer a change of minds in one or the other party, or an intention to change and modify the lea ¡e contemplated by the option agreement referred to. The record is also singularly bare of any reason or motive on the part of the lessees to depart from the clear covenants contained in the option agreement, and in the absence of any reason or motive, as well as the absence of any fact or circumstance which might evince a change of intention, we must hold that the original intention subsisted and actually entered into the confection of the lease executed on March 27th, 1936 (exhibit D-1), to the same extent and with the same effect as if Bath’s Form 12-A, the form stipulated in the option agreement as the one to be used for the lease agreement, had been used for the incorporation of the covenants contained in said former agreement. Nothing substantial appearing to show a changé in the original intention, either by oral or written word, either by antecedent or contemporaneous event or circumstances, we are constrained to hold that the record as presented is indicative of-a sustained rather than a vacillating or changed intention.

“That there was error in the preparation and execution of the lease of date March 27th, 1936, by and through the innocent substitution of Bath’s Form 12 in lieu of Form 12-A, the one stipulated in the option agreement as that to be employed for the execution of the lease, appears to be well established by the testimony of Mr. Heck (notary), who prepared both the option and the lease agreements, of Mr. Jacobson and Mr. Ludeau, defendants in this suit. We say it appears well established because the explanation assigned by these witnesses for the erroneous substitution of forms is not a weird or farfetched one, but one reasonable and understandable in the light of the circumstances shown to have existed at the time of the execution of the lease, especially when considered with the absence of anything indicating a change in the original intention of the parties, as shown hereinbefore.

“And the record further -sustains ■ the view, and to this view we subscribe, that the error concerning which complaint is made and whose existence is clearly established, was mutual. On the part of the defendants, it is patent from what has already been said that error existed; on the part of the plaintiff, contemporaneous and subsequent events and conduct show that he also labored thereunder at the time of the execution of the lease.

“For, there being at the time an option agreement which had not in any manner been changed, abrogated or substituted, it passes ordinary credulity to believe that, *960 being suddenly confronted with an agreement glaringly unlike the one which plaintiff should have expected to be presented, he would express no surprise and show no inclination to call to the attention of the defendants the material changes in the instrument presented to him, unless we are to conclude, and we do not, that the agreement exhibited features so favorable to him that he considered silence the better policy. When we say that plaintiff said or did nothing under the circumstances just related, we are not unmindful of the fact that plaintiff testified that he noticed the material changes in the lease presented to him for execution and that he had said that ‘they (meaning Jacobson and Ludeau) said that was what they wanted, that is what I signed’ (transcript p. 68), but nowhere in the record, in the testimony of Heck, the notary, or Ludeau, or Jacobson, or anyone else who might have been present at or near the time of the execution of the lease, do we find that plaintiff had been informed of any desired change in the contemplated lease or that any one has said that ‘That was what they (Ludeau and Jacobson) wanted,’ or that he had signed the proffered instrument while laboring under the delusion that a new agreement was desired by defendants. In fact, it is difficult from a careful reading of the record to ascertain who was or were actually present at one time at or near the time of the execution of the lease, but the record clearly shows that no conversation at or near the time of execution took place between plaintiff and either one of defendants.

“In the option agreement the initial payment of $2.50 an acre was to be considered the first • year’s rental while in the lease executed on Form 12 the first rental was to become due in six months.

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Bluebook (online)
197 So. 612, 195 La. 954, 1940 La. LEXIS 1130, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tate-v-ludeau-la-1940.