Where Angels Tread, Ltd. v. Dansby

855 So. 2d 906, 2003 WL 22203683
CourtLouisiana Court of Appeal
DecidedSeptember 24, 2003
Docket37,689-CA
StatusPublished
Cited by2 cases

This text of 855 So. 2d 906 (Where Angels Tread, Ltd. v. Dansby) 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
Where Angels Tread, Ltd. v. Dansby, 855 So. 2d 906, 2003 WL 22203683 (La. Ct. App. 2003).

Opinion

855 So.2d 906 (2003)

WHERE ANGELS TREAD, LTD., Bobby Elmer Smith and Janie Dupuy Smith, Plaintiffs-Appellants,
v.
Dr. Thomas DANSBY, Defendant-Appellee.

No. 37,689-CA.

Court of Appeals of Louisiana, Second Circuit.

September 24, 2003.

*907 Jack Wright, Jr., Monroe, for Appellants.

Watson, McMillin & Harrison, LLP by W. Michael Street, W. Brooks Watson, Monroe, for Appellee.

Jay B. Mitchell, Monroe, for John Giffen.

Before GASKINS and PEATROSS, JJ., & TRAYLOR (J. Pro Tempore).

PEATROSS, J.

This appeal arises from a summary judgment granted by the trial court in favor of Defendant, Dr. Thomas Dansby ("Dr.Dansby"), and against Plaintiffs, Where Angels Tread, LTD, Bobby Elmer Smith and Janie Dupuy Smith (collectively "Plaintiffs"). Plaintiffs now appeal the judgment of the trial court. For the reasons stated herein, we affirm.

FACTS

Plaintiffs Bobby and Janie Smith ("the Smiths") each owned 50 percent of the corporation Where Angels Tread, LTD. The corporation owned a building located at 2120 Cypress Street in West Monroe, Louisiana. This property was acquired with a loan from First Republic Bank, which held a mortgage on the premises. In 1999, the corporation began to face financial difficulties; and, in September 1999, First Republic Bank initiated foreclosure proceedings and seized the property. The Smiths attempted to find a financial solution to the corporation's difficulties and sought to lease the building.

*908 In February 2000, Mr. John Giffen ("Giffen"), the manager for the Monroe Medical Clinic, contacted the Smiths and expressed an interest in the building. Mr. Smith told Giffen that the property was listed with John Rea Realty. Giffen contacted John Rea Realty and informed Mr. Jay Johnson ("Johnson") of John Rea Realty that a group of doctors[1] might be interested in leasing the property as a medical office. Johnson drafted a document entitled "Offer to Lease," and presented it to Giffen at his office at the Monroe Medical Clinic. During the meeting, Dr. Dansby walked through the room and spoke to Johnson briefly, but he did not discuss the "Offer to Lease" with Johnson. Giffen signed his own name[2] to the "Offer to Lease," following a change to make it a five-year lease with a five-year option to purchase, as opposed to the original ten-year lease. Giffen gave Johnson a check for $6,000 as a deposit securing the property. The check was written on an account for the Monroe Medical Clinic[3]. Mr. Smith later accepted the offer on behalf of Where Angels Tread, LTD.

The "Offer to Lease" was to be effective May 1, 2000, and it set the rent at $6,000 per month for a period of 60 months, at the end of which the tenant would have the option to purchase the property. After the day the "Offer to Lease" was signed, no further payments were made to the Smiths. As a result, the Smiths were unable to make the mortgage payments on the property and First Republic Bank foreclosed.

On July 27, 2001, Plaintiffs filed a lawsuit against Dr. Dansby and Giffen for breach of the "Offer to Lease."[4] Plaintiffs claimed that Giffen had the actual or apparent authority of Dr. Dansby to enter into the agreement with Plaintiffs and that, as the principal, Dr. Dansby is also bound to the "Offer to Lease." Dr. Dansby denied that he gave Giffen the authority to enter into the "Offer to Lease" on his behalf. Giffen also insisted that he did not have the actual or apparent authority to bind Dr. Dansby to the "Offer to Lease." Both Plaintiffs and Dr. Dansby filed motions for summary judgment with the trial court. Plaintiffs' motion for summary *909 judgment was denied. In his motion for summary judgment, Dr. Dansby asserted that Plaintiffs had no factual support for their claim that Giffen had actual or apparent authority to bind him to the "Offer to Lease."

Finding that La. C.C. art. 2996[5] and Tedesco v. Gentry Development, Inc., 540 So.2d 960 (La.1989)[6], applied to the instant case, the trial judge held that written authority from the principal is required for an agent to execute the "Offer to Lease." The trial judge granted Dr. Dansby's motion for summary judgment and dismissed him from the case, finding that no evidence had been presented that Giffen had written authority to execute the "Offer to Lease" on Dr. Dansby's behalf, making any contract signed by Giffen unenforceable as to Dr. Dansby. Plaintiffs now appeal, raising the following assignment of error (verbatim):

Judge Dimos fell into error when he failed to recognize that apparent authority is applicable when the third party changes its position, reasonably relying on the representations that the agent had the actual authority to bind the principal, and ruling that there are no factual issues to be presented to the jury.

DISCUSSION

Summary judgment procedure is designed to secure the just, speedy and inexpensive determination of every action and the procedure is favored and shall be construed to accomplish these ends. La. C.C.P. art. 966(A)(2). Summary judgment shall be rendered forthwith if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to material fact and that the mover is entitled to judgment as a matter of law. La. C.C.P. art. 966(B). Appellate courts review summary judgments de novo under the same criteria that govern the district court's consideration of whether summary judgment is appropriate. NAB Natural Resources, L.L.C. v. Willamette Industries, Inc., 28,555 (La.App.2d Cir.8/21/96), 679 So.2d 477.

The initial burden of proof in summary judgment remains with the mover to show that no genuine issue of material fact exists. Johnson v. Sunbelt Builders, Inc., 02-0959 (La.App. 3d Cir.2/5/03), 838 So.2d 907. Under La. C.C.P. art. 966(C), once the mover has made a prima facie showing that the motion should be granted, the burden shifts to the non-moving party to present evidence demonstrating that material factual issues remain. Id.

When a motion for summary judgment is made and supported by law, an adverse party may not rest on the mere allegations or denials of pleading of the party, and the response of that party, by affidavits or as otherwise provided by law, must set forth specific facts showing that there is a genuine issue for trial. Savage v. McConnell, 36,441 (La.App.2d Cir.10/23/02), 830 So.2d 414. Once a prima facie showing has been made that there is no genuine issue as to a material fact and that summary judgment should be granted, the burden shifts to the nonmover. Bertrand v. Air Logistics, Inc., 01-1655 (La.App. 3d Cir.6/19/02), 820 So.2d 1228. If the adverse party does not *910 respond, summary judgment, if appropriate, shall be rendered against him.

Actual Authority

In the case sub judice, Dr. Dansby argues that Giffen was not authorized to bind him to the "Offer to Lease" Plaintiffs' property and Plaintiffs failed to produce any evidence showing that Giffen had such authority. He further asserted that he never had any contact with the Smiths and they even stated in their depositions that they never saw any document that gave Giffen the authority to bind Dr. Dansby to the "Offer to Lease."[7] Giffen further stated in his deposition that he was not authorized to act on behalf of Dr. Dansby and never stated to Johnson or the Smiths that he was so authorized. We find that Dr.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Broussard v. Compulink Business Systems
939 So. 2d 506 (Louisiana Court of Appeal, 2006)

Cite This Page — Counsel Stack

Bluebook (online)
855 So. 2d 906, 2003 WL 22203683, Counsel Stack Legal Research, https://law.counselstack.com/opinion/where-angels-tread-ltd-v-dansby-lactapp-2003.