Terrell v. Messenger

428 So. 2d 1241
CourtLouisiana Court of Appeal
DecidedMarch 9, 1983
Docket82-552
StatusPublished
Cited by42 cases

This text of 428 So. 2d 1241 (Terrell v. Messenger) 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
Terrell v. Messenger, 428 So. 2d 1241 (La. Ct. App. 1983).

Opinion

428 So.2d 1241 (1983)

Edward TERRELL, et al., Plaintiffs-Appellees,
v.
Paul MESSENGER, et al., Defendants-Appellants.

No. 82-552.

Court of Appeal of Louisiana, Third Circuit.

March 9, 1983.

*1242 Whitehead & McCoy, Kenneth D. McCoy, Jr., Gahagan & Gahagan, Henry C. Gahagan, Natchitoches, for defendants-appellants.

Watson, Murchison, Crews, Arthur & Corkern, Ronald E. Corkern, Jr., Natchitoches, for plaintiffs-appellees.

Before DOMENGEAUX, GUIDRY and LABORDE, JJ.

*1243 LABORDE, Judge.

Plaintiffs-appellees, Edward Terrell, Eddison Terrell, Harvey Moran, Sarah Terrell Chevalier, Herman Terrell and Olizine Terrell, brought this action to have a certain sale of immovable property rescinded and set aside, to obtain damages, and for specific performance of a contract granting them a right of first refusal on that property. Defendants-appellants are Leo Terrell, Lena T. Jones, Steese Britton, Emma T. Kirkland, the owners and vendors of the property, and the purchasers of the property, Paul Messenger, Janette Messenger, and Pioneer Realty Co., Inc.

The trial court, after trial, rendered judgment in favor of the plaintiffs ordering the sale entered into between defendants rescinded and set aside. The judgment further ordered Pioneer Realty Co., Inc., to convey the property to Edward Terrell on the same terms and conditions as those contained in the sale between it and the other defendants. Defendants appeal. We affirm.

The defendants-appellants raise the following issues:

1) Whether or not the trial court erred in holding as a matter of law that a deed clause which gives to all vendees therein a right of first refusal for an unspecified time period is not contrary to public policy;
2) Whether or not the trial court erred in failing to hold as a matter of law that a deed clause which by its express terms is an agreement between the named vendees has to be signed and consented to by the vendees;
3) Whether or not the trial court erred in failing to hold an alleged right of first refusal between vendees in an act of sale invalid as to third parties where there is no acceptance of the agreement on the face of the public records;
4) Whether or not the trial court erred in failing to hold that a right of first refusal to purchase immovable property is subject to the liberative prescription of ten years;
5) Whether or not the trial court erred in rejecting defendant's request for leave of court to file an amended answer raising the affirmative defense of estoppel;
6) Whether or not the trial court erred in holding as a matter of law that a right of first refusal to purchase immovable property is a real right entitling the parties thereto to specific performance when said property is sold to a third party, rather than a personal right for damages.

On January 4, 1957, Sarah Terrell executed a cash sale deed conveying a 72-acre parcel of land to her children and grandchildren. The deed is recorded in Conveyance Book 228, page 597 of the records of Natchitoches Parish, Louisiana. The deed contained the following clause:

"The vendees herein mutually agree that should any one of them decide to sell their interest in the property above acquired, that they will first offer said interest to the other vendees herein, at the same price they are offered for their interest. Vendees further agree that so long as Sarah J. Terrell is alive, that they will not sell their interests except to one another in the above-described property."

The deed was signed by Sarah J. Terrell, the vendor, and by only one of the vendees, Emma T. Jackson, now known as Emma T. Kirkland. Typewritten below Mrs. Jackson's signature was a statement that she accepted for herself and on behalf of all other vendees.

In the years that followed the execution of the deed, several inter family transfers of various interests in the land were accomplished. On November 30, 1977, appellant, Leo Terrell, sold his 3/12ths interest in the property to appellants, Paul Messenger and Janette Messenger. On that same date, appellants, Lena T. Jones and Steese K. Britton, a/k/a Annie S. Britton and Emma T. Kirkland, sold their combined interest in the property to appellants, Paul Messenger and Janette Messenger. Subsequently, in March of 1978, the Messengers sold their one-half interest in the land to appellant, Pioneer Realty Co., Inc.

*1244 Sarah J. Terrell, the original vendor of the property, died on February 15, 1978.

Plaintiffs-appellees filed a Petition for Annulment and other relief. The cause of action arose out of the execution of the two separate cash sales dated November 30, 1977. The basis of the petition was that the restrictive covenant contained in the Act of Sale from Sarah J. Terrell to her children and grandchildren placed a limitation upon alienation of the property.

After hearing all of the evidence and reviewing the post-trial memorandums submitted by counsel, the trial judge concluded the following:

"... that Mrs. Sarah J. Terrell wanted her property to remain in the joint ownership of her descendants during her lifetime and also for as long as anyone of her descendants was interested in owning the property. This was her old home place where she had lived for many years and had reared her children. She had a special love for this land and she provided that if the land was to be sold it should be offered to the co-heirs. If none of the co-heirs was interested in buying it, then it could be offered to any third person. The testimony at the trial further led the Court to find as a matter of fact that all of the descendants of Mrs. Terrell knew of this limitation on the alienation of the property and agreed to it even though only one of them actually signed the deed. The evidence produced at the trial of this case further leads the Court to find, as a matter of fact, that the plaintiff, Edward Terrell, was at all times ready, willing and able to purchase the property in question from his co-heirs at the same price for which it was sold to Paul E. Messenger and Janette L. Messenger."

ASSIGNMENT OF ERROR # 1

Appellants urge that a clause in a deed which gives to all the vendees therein a right of first refusal to purchase immovable property for an unspecified period of time is contrary to public policy.

One of the most fundamental and deeply rooted principle of law in this state, and almost all civil law jurisdictions, is that it is contrary to public policy to restrict property from the stream of commerce for an indefinite period of time. Gueno v. Medlenka, 238 La. 1081,117 So.2d 817 (La.1960). After this principle is recognized it becomes essential to determine when a restriction on immovable property is contrary to public policy and thus void, and when such a restriction is valid.

In Queensborough Land Co. v. Cazeaux, 136 La. 724, 67 So. 641 (La.1915), guidance was provided in questions of public policy and restrictions on the alienability of immovable property. The Court made the following statement as to the validity of such restrictions:

"In Female Orphan Society v. Young Men's Christain Ass'n, 119 La. 287, 44 So. 15,12 Ann.Cas. 811, a condition of perpetual and total inalienability was held to be void as putting property out of commerce, and therefore against public policy, but between total and perpetual inalienability and partial and temporary inalienability there is a very wide difference.

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Bluebook (online)
428 So. 2d 1241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/terrell-v-messenger-lactapp-1983.