Case Name: CORPUS CHRISTI PARISH CREDIT UNION v. Mrs. Selina K. MARTIN and Lawrence Joseph Martin, Jr. (and) Dominic Martin
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1978-04-10
Citations: 358 So. 2d 295
Docket Number: No. 61739
Parties: CORPUS CHRISTI PARISH CREDIT UNION v. Mrs. Selina K. MARTIN and Lawrence Joseph Martin, Jr. (and) Dominic Martin.
Judges: TATE, CALOGERO and DENNIS, JJ., dissent and assign written reasons.
Reporter: Southern Reporter, Second Series
Volume: 358
Pages: 295–304

Head Matter:
CORPUS CHRISTI PARISH CREDIT UNION v. Mrs. Selina K. MARTIN and Lawrence Joseph Martin, Jr. (and) Dominic Martin.
No. 61739.
Supreme Court of Louisiana.
April 10, 1978.
Rehearing Denied May 19, 1978.
Barbara Hausman Smith and Cynthia H. Samuel, New Orleans, for defendants-ap-pellees.
Dorothy F. Waldrup, New Orleans, for Selina K. Martin.
William J. Guste, Jr., Atty. Gen., Donald Ensenat, Asst. Atty. Gen., Ronald C. Davis, Staff Atty., Louisiana Dept, of Justice, New Orleans, for intervenors-appellants.
Helen S. Kohlman, Gerard A. Rault, Jr., Janet Mary Riley, New Orleans, for amicus curiae, The League of Women Voters of Louisiana.

Opinion:
DIXON, Justice.
Corpus Christi Parish Credit Union filed a petition for executory process against Mrs. Selina K. Martin (the divorced wife of Lawrence Joseph Martin, Jr.), Lawrence Joseph Martin, Jr. and Dominic Martin alleging default on a $5000 note secured by the pledge of a collateral mortgage in the amount of $8000. The collateral mortgage was on the home of Lawrence and Selina Martin, purchased by them January 25, 1972, during the existence of the marriage. The mortgage and mortgage note were signed by Lawrence J. Martin, Jr. alone.
Selina Martin then filed a petition for injunction, alleging that the signature of her husband Lawrence J. Martin, Jr. was insufficient to mortgage the community property, and that Lawrence Martin had not obtained her consent to the mortgage, and that the credit union knew of the strong objection of Mrs. Martin to the execution of the act of mortgage. Mrs. Martin alleged that to permit the husband to bind the community without the wife's permission was a denial of her rights guaranteed by the Fourteenth Amendment of the United States Constitution.
Selina Martin further filed an exception of no cause of action, and an answer to an amended petition converting the proceedings to a foreclosure via ordinaria in which she reiterated her claim of invalidity of the mortgage and nonliability of the wife on a note not signed by her. The Attorney General intervened under Code of Civil Procedure articles 1880 and 1091 to sustain the constitutionality of Civil Code articles 2334 and -2404.
After a trial at which evidence was adduced, the district judge granted the credit union a judgment against Lawrence Joseph Martin, Jr., restricted the effect of the mortgage to his interest, only, in the property, declared C.C. article 2404 unconstitutional, and granted Selina K. Martin's prayer declaring her interest in the mortgaged property free and clear of the encumbrance, and dismissing the credit union's action against her.
Because of the judgment declaring the statute unconstitutional, the Attorney General and the credit union appealed to the Louisiana Supreme Court. Art. 5, § 5(D), La.Const.1974. Selina Martin also appeals from that part of the judgment subjecting the property to the mortgage to any extent, whatsoever.
At the trial it was established that Mr. and Mrs. Martin were living together at the time of the mortgage in 1974, having been married for about four years. The mortgage was for the purpose of obtaining money to satisfy an indebtedness on Mr. Martin's mother's property. Selina Martin objected to borrowing the money and to mortgaging the property, which had been purchased about two and one-half years before. The transaction caused the break-up of the Martins' marriage, and they were divorced about two years after the execution of the mortgage.
Mrs. Martin was the only one working at the time of the mortgage. She telephoned people at the credit union, told them of the Martin's financial situation, and objected to the mortgage, by telephone and in person. She was told that there was nothing she could do about it.
Before this court the wife attacks the constitutionality of article 2404 of the Civil Code, which places the power of alienation of community property in the husband, who is permitted to alienate community property "by an onerous title without the consent and permission of his wife." It is contended that the managerial system established by the Civil Code for community property in Louisiana effects a discriminatory classification based on gender, violative of the equal protection clause of the Fourteenth Amendment of the United States Constitution, as interpreted in Reed v. Reed, 404 U.S. 71, 92 S.Ct. 251, 30 L.Ed.2d 225 (1971); Frontiero v. Richardson, 411 U.S. 677, 93 S.Ct. 1764, 36 L.Ed.2d 583 (1973); Weinberger v. Wiesenfeld, 420 U.S. 636, 95 S.Ct. 1225, 43 L.Ed.2d 514 (1975); Califano v. Goldfarb, 430 U.S. 199, 97 S.Ct. 1021, 51 L.Ed.2d 270 (1977).
The pleadings and the testimony in this case show that the only question placed at issue is whether a mortgage executed in 1974, encumbering immovables belonging to the community, is valid when signed by the husband alone.
That question could have been decided by the district judge without determining the constitutionality of the managerial system of community property in Louisiana. Seli-na Martin does not complain that she has been prevented from mortgaging community property. Her only complaint is that she was unable to prevent her husband's mortgaging that property.
It would hardly be possible to examine the constitutionality of article 2404 of the Civil Code and the managerial system of the community property established in Louisiana, without a complete examination of the constitutionality of the community property system. Whatever Selina Martin has placed before the court for adjudication is here only because she could not prevent the mortgage of the family home.
Louisiana statutes provide a simple method for the wife to prevent the alienation of the family home. At the time of the execution of this mortgage, R.S. 9:2802 (whose source was Act 35 of the Extra Session of 1921) provided that the wife, when the husband had failed to file such a declaration within six months after the acquisition of a home, can file in the conveyance records a designation of the family home, and "it may not thereafter be validly sold or mortgaged during the marriage by the husband except with the consent of his wife expressly set forth in the act, and signed by her . " R.S. 9:2801. Therefore, in the weeks preceding the execution of the mortgage which plaintiff seeks to foreclose, Seli-na Martin could have accomplished her purpose. Her husband could not have mortgaged the home without her consent.
Mrs. Martin denies that the existence of a method (which she said was not known to her) to prevent her husband's unilateral action in mortgaging the family home answers the constitutional question, because the statute discriminates against the woman in requiring her to take this affirmative step to prevent the alienation of community property.
It is essential to any system of private ownership of property that someone have the power of alienation. There would seem to be no constitutional impediment to placing the power of alienation of community property equally in husband and wife, without the power of the nonsigning partner to prevent the alienation. The Louisiana community property system placed the power of alienation in the husband. (He can, however, authorize the wife to act as manda-tary for the husband or for the community, in which ease she would have the power to alienate community property. C.C. 1787). If we should find that managerial system unconstitutional, one possible effect would be to hold that each spouse has the power of alienation. (We would hardly hold that neither could alienate, but might hold that both must join in the act to be effective). Such a holding on the question raised by Mrs. Martin would not invalidate the mortgage, executed by only one spouse.
Since the statutes have provided a simple and efficient method for Selina Martin to prevent her husband's mortgaging the family home, and since a determination of the constitutionality of the Louisiana community property system concerns the basis of property ownership and real rights in Louisiana, this court should avoid deciding the case on a constitutional basis unless a decision on the constitutional question is essential to a decision of the issues.
In her appeal, Selina Martin argues that that part of the district court's judgment recognizing the mortgage only to the extent of the husband's interest in the property is incorrect, and no part of the property should be encumbered because the mortgage was invalid, having been executed by the husband alone. Since the mortgage was valid, the wife's arguments fall.
The judgment of the district court is therefore reversed insofar as it recognized the mortgage as affecting only the interest of Lawrence Joseph Martin, Jr. in the property, and insofar as it declared Mrs. Selina K. Martin's interest free and clear of the encumbrance, and insofar as it declared C.C. 2404 unconstitutional; that part of the judgment against Lawrence Joseph Martin, Jr. is affirmed; since the district court did not refer to the demands against Dominic Martin, the case is remanded to the district court where the judgment will be recast as appropriate and as consistent with the views expressed in this opinion, at defendants' cost.
TATE, CALOGERO and DENNIS, JJ., dissent and assign written reasons.
. "The property of married persons is divided into separate and common property.
Separate property is that which either party brings into the marriage, or acquires during the marriage with separate funds, or by inheritance, or by donation made to him or her particularly.
The earnings of the wife when living separate and apart from her husband although not separated by judgment of court, her earnings when carrying on a business, trade, occupation or industry separate from her husband, actions for damages resulting from offenses and quasi offenses and the property purchased with all funds thus derived, are her separate property. Actions for damages resulting from offenses and quasi offenses suffered by the husband, living separate and apart from his wife, by reason of fault on her part, sufficient for separation or divorce shall be his separate property. Common property is that which is acquired by the husband and wife during marriage, in any manner different from that above declared. But when the title to community property stands in the name of the wife, it cannot be mortgaged or sold by the husband without her written authority or consent.
Where the title to immovable property stands in the names of both the husband and wife, it may not be leased, mortgaged or sold by the husband without the wife's written authority or consent where she has made a declaration by authentic act that her authority and consent are required for such lease, sale or mortgage and has filed such declaration in the mortgage and conveyance records of the parish in which the property is situated. (As amended Acts 1962, No. 353, § 1.)" C.C. 2334.
In 1976, by Act 679, C.C. 2334 was amended, substituting the following for the last paragraph:
"Where the title to community immovable property declared to be the family home stands in the name of the husband alone it may not be leased, mortgaged or sold without the wife's written authority or consent.
The limitation on the husband described in the two immediately preceding paragraphs shall not apply where the wife has made a declaration by authentic act that her authority or consent are not required for such lease, sale or mortgage and has filed such declaration in the mortgage and conveyance records of the parish in which the property is situated.
The declaration may be general as to all such property or it may specify property to which it shall or shall not apply. If the declaration so provides, it may apply generally to property which may be required in the future, but a contrary declaration or withdrawal of her authority or consent by the wife may be made and recorded."
"The husband is the head and master of the partnership or community of gains; he administers its effects, disposes of the revenues which they produce, and may alienate them by an onerous title, without the consent and permission of his wife.
He can make no conveyance inter vivos, by a gratuitous title, of the immovables of the community, nor of the whole, or of a quota of the movables, unless it be for the establishment of the children of the marriage. A gratuitous title within the contemplation of this article embraces all titles wherein there is no direct, material advantage to the donor.
Nevertheless he may dispose of the movable effects by a gratuitous and particular title, to the benefit of all persons.
But if it should be proved that the husband has sold the common property, or otherwise disposed of the same by fraud, to injure his wife, she may have her action against the heirs of her husband, in support of her claim in one-half of the property, on her satisfactorily proving the fraud. (As amended by Acts 1926, No. 96)." C.C. 2404.