Articles Posted in Property

termite-formation-1358063-1024x768Buying or selling a home is a complicated process filled with legal and practical pitfalls that can cause problems for both the buyer and seller.  One of the most important steps that a person engaged in a transaction with potential legal issues must take is to speak with a good lawyer who can navigate the process and make sure their rights and interests are protected to the fullest extent possible.  A good lawyer can also make sure that the buyer or seller understands all the implications of contractual language.  In a home sale, every word in the agreement is important and can alter the rights of everyone involved in the transaction.  One or two seemingly insignificant words can entirely change the rights and protections that a party may normally receive under the law.  The Prejeans found out the hard way. In their case, a combination of a few termites, some water, and the two little words “as is,” led to a massive headache and loss of money when they purchased a home in Houma, Louisiana.

The Prejeans entered into a purchase agreement to buy the house in Houma from John Monteiro. John’s wife acted as the realtor.  Prior to closing the sale, the Monteiros disclosed that the house had previously been infested with termites. The Prejeans had Terminex inspect the house.  Termites were found living in the house and a later home inspection found defects in the house such as a wet spot on the wall in the kitchen and standing water in the same location, among other issues.  The report prompted the Prejeans to request that Mr. Monteiro make repairs, treat the home for termites, and acquire a termite treatment plan from Terminex.  The Prejeans retained a right to inspect the house, including opening up the walls to ensure that termites and moisture were not present, before closing the sale, but chose not to exercise those rights.  Instead, the Prejeans executed an Act of Cash Sale, providing that the sale was “as is” and waiving all warranties on the property.

Following the completion of the sale, the Prejeans began renovating the home but had to halt the renovations when they found that there was extensive termite damage and infestation combined with water damage.  The Prejeans filed a lawsuit against the Monteiro estate and against Ms. Monteiro as the acting realtor. Mr. Monteiro passed away before the lawsuit was filed.

residence-1226143-768x1024In joint real estate ventures, all partners are presumed to be equal unless agreed otherwise. All parties should have equal decision-making power, share equally in gains and losses, and possess equal interests in the subject property. Cooperation among the partners is essential to the success of the venture. Each person must enter into the transaction with an open mind towards other partner’s ideas and business tactics. However, when one person uses the other partners for his own personal gain, litigation usually follows. This was the unfortunate situation in the following case.

The defendant, Mr. Paul Barranco, wanted to purchase three apartment complexes in Baton Rouge, LA as investment properties. After failing to obtain financing on his own, he enlisted the help of Plaintiffs, Mr. Brignac and Mr. Godchaux. The three parties formed God-Brig-Bar, LLC. Plaintiffs sent their tax information to Mr. Barranco for the purposes of obtaining financing. Mr. Barranco advised Plaintiffs that he was selling another apartment complex located on Ned Drive in Baton Rouge and that the proceeds from that sale may be used as a down-payment on the three apartment complexes. Each Plaintiff gave a check to Mr. Barranco for their one-third deposit amount on the three complexes in the amount of $10,000.00 each.

Mr. Barranco deposited the funds and advised Plaintiffs that Palisades Properties expressed interest in acquiring the purchase agreements to the three properties. The sale of the three complexes to Palisades Properties would yield $1,132,000.00 in profits to be split three ways. Mr. Barranco drafted and signed a letter of intent in his name only to Palisades Properties, stating that he would sell it the three purchase agreements, one for each complex. Plaintiffs advised Mr. Barranco that they wanted the letter of intent changed to include all of their names. Mr. Barranco refused to do so and asserted that it might scare off the potential buyer since they were already nervous about such a large investment.

lake-reserve-1634943-1024x768Normally, people pay extra for waterfront property but prefer for their yard to be on a lake front, have an ocean view, or even have a pond on the property. Most would not consider having a home built on an improperly graded yard that fills up with water every time it rains a desirable body of water to have on the property. This is exactly what happened to Debbie Shepard in May of 2009 when her backyard had a hole in it that was promised to be fixed before the closing of the house. Luckily for her, she was entitled to remedies under the Louisiana New Home Warranty Act (“NWHA”).

Debbie Shepard purchased a lot with a newly constructed home on it built by Robinson Construction. Before closing on the property, Shepard noticed that water was pooling up in the backyard every time that it rained, and notified Robinson Construction. Robinson said that it would be fixed before the finalization of the sale of the property. The problem was still not fixed by the time of closing and wasn’t addressed until months after Shepard had moved into the home. Robinson installed three pipes in the back yard that were meant to alleviate and reroute the water from the backyard but instead made the pooling problem much worse. Robinson then refused to fix the problem, which led to Shepard filing the lawsuit against the company.

Robinson argued that under La. R.S. 9:3144, the warranty did not include any damage that was caused or worsened by a change in grading of the ground made by anyone other than the builder or their agents, It also argued that the damage was not a result of poor construction by the builder.

house-1-1225482-1024x767Below is a case of a home sale in St. Bernard Parish that didn’t go all too well. In this case, communications between the parties to the sale were delayed and the sale never went through. The case highlights the need to be diligent when buying or selling real estate and the necessity of having a good real estate lawyer.

The sellers, David and Gwendolyn Hopkins, placed a home for sale in Arabi, Louisiana. Juanita Coco, an interested buyer, contracted with a representative of Prudential Realtors in order to buy that same home. Both the Hopkins and Ms. Coco signed an Act of Sale agreement that was contingent upon Ms. Coco being able to obtain financing in the amount of $152,200. The Act of Sale, by agreement, was supposed to be completed by a deadline of April 4, 2008, with the option to extend the deadline.

Ms. Coco hired an appraiser to determine the value of the home. The appraiser told Ms. Coco that because the house was located in an area that was previously affected by Hurricane Katrina, the appraiser had to list the home at a value that was considerably less than the asking price. The original asking price of the home was $152,500 and the appraisal price was $147,000.  Since it was appraised below the asking price, Ms. Coco’s lender, Countrywide Bank, stated that it would not approve Ms. Coco’s home loan if the asking price was not reduced. The Hopkins signed an amendment to the original Act of Sale to have the original price reduced to the appraisal price. They faxed it to Dane Ruffins, a Prudential representative, after business hours on April 3, 2008. Ms. Ruffins did not receive the amendment until the morning of April 4, 2008. The same day that, Ms. Ruffins also received a letter from Countrywide Bank stating that the loan would not be approved.

country-1375837-1024x769Sometimes we don’t have the best neighbors. For example, a neighbor might block access to your land, arguing that it is, in fact, the neighbor’s land you traverse on a daily basis. When such a dispute arises, get a good real estate attorney. If ingress to a piece of your property requires you to pass over someone else’s land, you might need to seek an easement. An easement is simply a right of passage through someone else’s land. This can be done in one of three ways: (1) by agreement, (2) by traditional or historic use, or (3) by necessity. In a recent case, the parties fought over the right to pass over a gravel road in Webster Parish, Louisiana. In the case, the court discusses its discretion in deciding whether an easement is necessary.  

In this case, Alvah Corley and Cathy Corley owned two pieces of land that were not adjacent to each other, the Corley Home (the “Corley Land”) and a 54-acre plot of land (the “54”). The 54 lies east of the Corley Land but in between those two plots were two other tracts of land. One tract was owned by Carlton and Jan Frye (the “Frye Land”) and the other owned by Carol Ann Sims Tabor, Hallie Sims, and Gilbert Sims (the “Sims-Tabor Land”). Historically, getting to the 54 meant traversing a gravel road that started on a public road, crossed through the Corley Home, through the Frye Land, yet more through the Sims-Tabor Land, and then finally reaching the 54. There is an alternate route that only passes through the Sims-Tabor Land. However, the route is flooded during certain periods of the year.  At one point, Carlton Frye placed a locked gate, stopping the Corleys from crossing through the Frye Land, which gave rise to this claim.

At trial, the Corleys sought three orders from the Trial Court: (1) an injunction to stop the Fryes from denying the Corleys access through the Frye Land, (2) a declaration that the 54 is an “enclosed estate,” and, in the alternative, (3) an order that maintained the Corleys’ right of passage through the Frye Land based on 30 years of use. The Trial Court found in favor of the Corleys, declared the 54 to be an “enclosed estate,” granted the Corleys right of passage across the Frye Land, and ordered that the Fryes be compensated $400 yearly by the Corleys. To this, the Fryes appealed.

house-i-1491881-1024x768Sometimes even the best-planned of deals amongst parties may fall through. Parties often turn to the courts to resolve contractual disputes. When a court is interpreting a contract between two parties, it is often as simple as applying the “four corners” rule. I.e. it will not look at anything outside the four corners of the contract. This particular method of interpretation is useful (and under Louisiana law mandatory) where a contract is written clearly and is not ambiguous. In a recent case, the Louisiana Fourth Circuit Court of Appeal upheld this method of interpretation when faced with a contract dispute out of Orleans Parish.

In 1999, Mr. and Mrs. Tubbs made an offer to purchase a house from Mr. and Mrs. Schafer. The Schafers accepted this offer, creating a contract to sell the house. As part of the deal, the Tubbses made a deposit of about $53,000 via a promissory note. Among the terms of this contract was a provision that would cancel the contract should the Tubbses be unable to obtain sufficient financing for the purchase price. If this happened, then the Schafers would have to return the promissory note deposit the Tubbses had paid as part of the arrangement. The Tubbses were unable to get the necessary funding so they did not show up to the closing.

The Schafers sued to collect the note as damages stipulated in the contract. In response, the Tubbses responded that the contract should be considered null and void since they were unable to obtain financing because the financing contract itself required that their home is sold by a specified time. The Tubbses attempted to sell their former home to a family suggested by the Schafers. When the deal fell through due to the bankruptcy of the would-be buyer, they were unable to keep the 7% interest rate they had been promised.

tree-1494188-768x1024When the government takes privately owned property to be used for the benefit of the public, it is called an expropriation. Federal and state law prohibit the government from taking private property without compensating the owner. The Louisiana Constitution provides that property shall not be taken or damaged by the State except for a public purpose and with just compensation paid to the owner of the private property. A landowner whose property is expropriated by the State is to be compensated so that he remains in the equivalent financial position he enjoyed before the taking. The following case provides a concrete example of such a situation.

Knoll & Dufour Lands and Glenn and Barbara Dauzert (Plaintiffs) brought a consolidated action against the Louisiana Department of Transportation (“DOTD”) alleging the amount paid for the expropriation of their properties was insufficient to cover the value of said property. The Trial Court awarded compensation and damages to each of the property owners and the DOTD appealed the decision. The Court of Appeal affirmed the Trial Court’s award of damages, improvements on the land expropriated, and additional damages. However, it also found that the Trial Court erred in its valuation of the property expropriated from Plaintiffs. Importantly, the Trial Court erred by relying on expert testimony as to the total value of the land, which simply added the value of the trees to the fair market value of the property. This form of valuation is an improper basis for determining the value of the property. Since the Trial Court record did not contain enough evidence to determine the value of the trees added to Plaintiff’s property, the Court of Appeal remanded the case to the Trial Court to allow the parties to present evidence as to how much the trees contributed to the total value of the land taken.

After a second trial, the Trial Court awarded Knoll & Dufour Lands $164,720.00, including $158,000.00 for the trees taken from a 0.533 acre tract of land that the DOTD expropriated for the construction of a new route for Highway 105 in Avoyelles Parish. In addition, the Trial Court awarded the Dauzerts $33,051.00, including $30,000.00 for trees taken from a 0.639 acre tract of land also expropriated by the government in rerouting the highway. In determining the compensation owed to the landowners for the added value of the trees the Trial Court heard from four expert witnesses: the real estate appraiser who did the original appraisal for the DOTD, a landscape horticulturist, an arborist and real estate agent, and Plaintiff’s real estate appraiser. Again, the DOTD appealed the decision of the Trial Court arguing that none of the expert testimony should have been admitted, except for the expert testimony offered by the DOTD, because it was irrelevant to the question before the Court.

tree-bouleau-1396832-1024x617Expropriation is the act of the government taking privately owned property and using it for the benefit of the public. Generally, most expropriation cases deal with the construction of public roadways and highways. Where the land is expropriated, the private landowner is generally compensated. In one particular matter involving the expropriation of land to build a highway, valuing the trees on the land became more troublesome than anticipated.

In this Louisiana case, involving the expropriation of two parcels of land located in Avoyelles Parish, the court of appeals conducted an appellate review of the matter twice. After the judgment in the second trial of the matter, the State of Louisiana, through the Department of Transportation and Development (DOTD), appealed the trial court’s judgment which awarded compensation for the value of the land taken for construction of a new highway.

There were two parcels of land that were the subject of dispute. Parcel No. 2-1 and Parcel No. 2-2. The main dispute, among others, was the valuation of the trees on the respective parcels that were expropriated in order to build the new highway. The trial court awarded monetary compensation to the landowners for the presented value of the land taken.

rifle-scope-1-1576601-1024x683When purchasing property, buyers should be aware of rights reserved by others in the deed. Certain reservations of rights made by an original owner can continue to haunt a parcel of property through successive conveyances and multiple owners. In Louisiana, the language in a deed can create a personal servitude,  a charge or burden on a piece of property for the benefit of another person. Personal servitudes are not automatically extinguished at death and may be inheritable by descendants of the beneficiary. For example, a seller may reserve hunting rights for his or her family on the newly purchased property for generations. Needless to say, disputes often arise regarding the breadth and depth of such reservations. When interpreted by a court, the intent of the original parties in negotiating the reservation is key, as shown by a recent decision of the Louisiana Third Circuit Court of Appeal.

The dispute, in this case, involved two adjoining parcels of property in Avoyelles Parish, Louisiana. One parcel was owned by Kirby Roy Jr. and his wife Marjorie. Kirby Roy, III and his wife Sheila owned the other. In 1980, the couples sold their parcels to Douglas and Ralph J. Bordelon, reserving any and all hunting rights on the property described in the deeds. After a foreclosure proceeding, Nelson A. Bordelon, Wayne L. Gremillion, and Richard Tassin purchased the property in 1991. The three purchasers partitioned the property among themselves.

During the various conveyances, the Roy family continued to hunt on the property much to the dismay of the new owners. The new owners questioned whether the Roys retained their reservation of hunting rights after the 1991 purchase. Mr. Gremillion filed a criminal trespass complaint with the Avoyelles Parish Sheriff’s’ Department, reporting Mr. Roy III for hunting on the property without permission.

private-property-1314276-1024x680Property disputes can be complicated and confusing, so it is important to hire an excellent lawyer capable of untangling all of the issues involved in the case. Plaintiff Don Whitlock owns property in East Carroll Parish, Louisiana and brought a petition against Defendant Fifth Louisiana District Levee Board and its lessee, Jamie Isaac, seeking a preliminary and permanent injunction to prevent the defendants from trespassing on his property when they travelled across to access a hunting lease owned by the defendant Levee Board that is located west of Plaintiff’s property. Mr. Whitlock farms on the three lots of land at issue and alleged Issac caused damage as he crossed all three lots, creating ruts in the soil, damaging crops, and changing the flow of water. The defendants, however, argued that the land was conveyed to plaintiff’s ancestor with a public right of passage in the deed, and thus there could be no suit for trespass. The Trial Court agreed and with the defendants and held that there was no cause of action. It also held that since Mr. Whitlock was not the sole owner of the land (there were other owners on two of the three lots), he failed to join all the parties and further lacked the capacity to sue in a representative capacity for the other owners. Finally, it took a “strange” step in ruling on the merits of the preliminary injunctions despite the fact that it had sustained the exceptions raised by the defendants. It held that preliminary injunction could not be granted because Mr. Whitlock failed to show irreparable harm. Thus, the Trial Court dismissed the case. On appeal, Mr. Whitlock argued that the Trial Court’s rulings were improper.

The Louisiana Second Circuit Court of Appeal reversed the Trial Court’s dismissal of the case. The Court of Appeal found that the exceptions were improperly sustained and the Trial Court applied the wrong burden of proof in ruling on the preliminary injunction. Mr. Whitlock is the sole owner of Lot 3 and is an owner “indivision” of Lots 1 and 2. Whitlock’s ancestor had purchased all three lots in 1973 and the lots were burdened by a “right of way twenty feet wide across the lands . . . to serve as a road for the use of the public and which right of way shall hereafter be located by said vendee.” This public right of way eventually became a gravel road named Parish Gravel Road No. 1205 or 1285. It ran across the east side of the property, entirely located within lot 1. However, when defendant Issac became the lessee of the Swan Lake property owned by the defendant Levee Board, he began crossing Whitlock’s property in various places because the Swan Lake property was located directly behind lot 3. Whitlock alleged that he told Issac to stop and attempted to address the issues with the Levee Board because of the ruts being created as Isaac and his friends drove vehicles across the property, damaging his crops and changing the natural flow of water. Whitlock argued that Issac was not taking the shortest route across the property nor was he taking a route that would cause the least disruption. The Levee Board refused to take any action and Issac continued crossing against Whitlock’s wishes. Eventually, Whitlock filed a lawsuit seeking a preliminary and permanent injunction and damages for the loss of 2.2 acres of land that he could not use.

The Defendants asserted that the case should be dismissed because of the right of way included in the deed. Further, they alleged that Whitlock was not the sole owner of all of the property and thus, was required to join his co-owners in the lawsuit. The Trial Court agreed with these exceptions. It also looked at the merits of the preliminary injunctions and ruled that Whitlock could not meet the burden of proof of irreparable injury. The exceptions were sustained and the case was dismissed.

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