Versai Management, Inc. v. Monticello Forest Products Corp.

479 So. 2d 477, 1985 La. App. LEXIS 10275
CourtLouisiana Court of Appeal
DecidedNovember 19, 1985
DocketCA 84 1005
StatusPublished
Cited by15 cases

This text of 479 So. 2d 477 (Versai Management, Inc. v. Monticello Forest Products 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
Versai Management, Inc. v. Monticello Forest Products Corp., 479 So. 2d 477, 1985 La. App. LEXIS 10275 (La. Ct. App. 1985).

Opinion

479 So.2d 477 (1985)

VERSAI MANAGEMENT, INC.
v.
MONTICELLO FOREST PRODUCTS CORPORATION.

No. CA 84 1005.

Court of Appeal of Louisiana, First Circuit.

November 19, 1985.

*479 E.B. Dittmer, II, Bogalusa, for plaintiff-second-appellant.

Delos Johnson, Jr., and Charles Cassidy, Franklinton, for Monticello Forest Products Corp., defendant-appellee.

William J. Knight, Franklinton, for John Stringer defendant-appellee.

John Gallaspy, Bogalusa, for Lemenda Pope.

Before EDWARDS, LANIER and JOHN S. COVINGTON, JJ.

LANIER, Judge.

This suit commenced as one in tort by Versai Management, Inc. (Versai) alleging trespass and timber conversion by Monticello Forest Products Corporation (Monticello). Monticello answered contending it acquired title to the timber by a warranty deed and third partied the vendor therein, Johnny R. Stringer. Monticello subsequently filed a second third party demand against Lemenda R. Pope alleging she sold the timber to Stringer in a warranty deed. Stringer also third partied Pope. Versai then filed a supplemental and amending petition making Pope a party defendant and alleging she sold the timber to Stringer at a time when Versai had a valid, recorded option to purchase from her, which option *480 was subsequently exercised by Versai. Pope filed a peremptory exception pleading the objection of prescription to Versai's claim insofar as it pertained to an action in tort. After a trial, judgment was rendered in favor of Versai against Pope for $8,442.44, the stipulated value of the timber removed from the property. Versai's demand against Monticello and all third party demands were dismissed. Pope took a suspensive appeal. Versai took a devolutive appeal and answered Pope's appeal. Pope then answered Versai's appeal.

FACTS

On March 13, 1980, by authentic act, Pope granted to Versai for a period of 12 months from date "the exclusive right, privilege, or option to purchase" 11.163[1] acres of immovable property in Washington Parish, Louisiana. The consideration for the option was $500 and the purchase price of the land was fixed at $39,070.50. This instrument was recorded in the public records of Washington Parish on March 14, 1980.

On November 12, 1980, in an acknowledged written instrument, Pope purported to sell to Stringer for a consideration of $10 and other good and valuable consideration all merchantable trees on the NW¼ of the NW¼ of Section 6, Township 2 South, Range 14 East, less the North 400 feet, located in Washington Parish, Louisiana. This tract contained approximately 30 acres. The acreage on which Versai held its option is located in this tract and was not excluded from this description. This instrument granted to Stringer the right of ingress and egress over the land to cut and remove the timber for a period of 18 months. Pope covenanted to Stringer that she was "seized of an indefeasible fee simple title" to the timber, she had "good right to convey same to Buyer", the timber was "free from all encumbrance" and she would "warrant and defend the same to Buyer against the lawful claims of all persons." This instrument was recorded in the public records of Washington Parish on November 12, 1980.

Thereafter, also on November 12, 1980, in an acknowledged written instrument, Stringer purported to sell to Monticello for a consideration of $10 all merchantable trees 8 inches in diameter and larger outside bark at point of severance on the same property described in the Pope-Stringer timber sale. The terms of this instrument were identical to the terms of the Pope-Stringer instrument. This instrument was recorded in Mississippi.

By letter dated January 16, 1981, Versai advised Pope of its intent to exercise the option to purchase. On March 27, 1981, in an authentic act of sale and mortgage, the ownership of the property was transferred by Pope to Versai for the consideration agreed upon. This instrument was duly recorded in Washington Parish. At the time of the sale, the timber was still standing on the property. Neither the option nor the sale and mortgage reserved the timber for Pope.

Monticello commenced its timber cutting operations in the fall of 1981. In October or November of 1981, Oliver Meyer, the secretary-treasurer of Versai, was driving on the highway adjacent to the Versai property when he observed Monticello's workers cutting timber. Meyer called T.L. Hill of Monticello and the cutting was stopped. Monticello did not conduct a records check before buying or cutting the timber.

LEGAL EFFECT OF RECORDED POPE-VERSAI OPTION

The trial court held the option only conveyed a personal right to Versai; this personal right did not become an enforceable real right, notwithstanding recordation, until the option was exercised; Pope was the owner of the timber at the time of its sale *481 to Stringer and legally conveyed ownership of the timber to Stringer; Stringer legally conveyed the ownership of the timber to Monticello; and Monticello legally harvested the timber and, thus, committed no trespass or conversion. Versai contends the trial court committed error because a recorded option on immovable property confers a real right of which third persons are bound to take notice; this real right cannot be defeated by a sale to a third person prior to the exercise of the option; and sales made while the recorded option is viable are illegal, null and void.

The legal effect of recording an option to purchase immovable property is to give notice to third persons of the agreement and provide protection to the option holder against transactions involving third persons. An acceptance of such an option within the stipulated time is effective against third persons and relates back to the time the option was recorded. The rights of a holder of a recorded option to purchase immovable property cannot be defeated by a subsequent sale of the property to a third person; such a sale is illegal, null and void. La.C.C. art. 2462; La.R.S. 9:2721, 2722 and 2723; La.C.C. art. 2266, redesignated La.R.S. 9:2756 by Acts 1984, No. 331, § 5, effective January 1, 1985; Watson v. Bethany, 209 La. 989, 26 So.2d 12 (1946); Price v. Town of Ruston, 171 La. 985, 132 So. 653 (1931); Kinberger v. Drouet, 149 La. 986, 90 So. 367 (1922); E. Abell, Real Rights in Louisiana, 21 La.L. Rev. 462 (1961); A. Yiannopoulos, 2 Louisiana Civil Law Treatise Property § 167, pp. 455-456 (1980); S. Litvinoff, 7 Louisiana Civil Law Treatise Obligations § 108 pp. 198-200 (1975).

Standing timber is a component part of the tract of land on which it is located. La.C.C. art. 463. Pope did not reserve timber rights in the option agreement or in the sale and mortgage. La.C.C. art. 464. Therefore, the option agreement included the timber with the land. The purported timber sales by Pope and Stringer in the face of Versai's recorded option are illegal, null and void. When Versai exercised its option right to purchase, it acquired ownership of the timber.

The case of Choctaw Home Builders, Inc. v. Lena, Inc., 223 So.2d 23 (La. App. 1st Cir.1969), cited by the trial court as authority for its ruling, is factually distinguishable and legally inapplicable. In Choctaw, the plaintiffs, who were assignees of the original option holder, assumed they had complied with the terms of the option, built a residence on one of the lots subject to the option and filed suit for specific performance to compel the defendant to transfer title to the lot.

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Bluebook (online)
479 So. 2d 477, 1985 La. App. LEXIS 10275, Counsel Stack Legal Research, https://law.counselstack.com/opinion/versai-management-inc-v-monticello-forest-products-corp-lactapp-1985.