Case Name: Howard DELCAMBRE, Plaintiff and Appellee, v. Verna Delcambre DUBOIS et al., Defendants and Appellants
Court: Louisiana Court of Appeal
Jurisdiction: Louisiana
Decision Date: 1972-03-16
Citations: 263 So. 2d 96
Docket Number: No. 3738
Parties: Howard DELCAMBRE, Plaintiff and Appellee, v. Verna Delcambre DUBOIS et al., Defendants and Appellants.
Judges: Before CULPEPPER, MILLER and DOMENGEAUX, JJ.
Reporter: Southern Reporter, Second Series
Volume: 263
Pages: 96–109

Head Matter:
Howard DELCAMBRE, Plaintiff and Appellee, v. Verna Delcambre DUBOIS et al., Defendants and Appellants.
No. 3738.
Court of Appeal of Louisiana, Third Circuit.
March 16, 1972.
On Rehearing May 18, 1972.
Armentor & Wattigny by Minos Armentor, New Iberia, for defendants and appellants.
Edwards & Edwards by Homer E. Barousse, Jr., Crowley, for plaintiff and appellee.
Before CULPEPPER, MILLER and DOMENGEAUX, JJ.

Opinion:
CULPEPPER, Judge.
This is a suit for specific performance of an alleged "counter letter", whereby plaintiff contends defendants granted him the right to repurchase certain real property. When this case was previously before us, 236 So.2d 249, we found the agreement in question ambiguous and remanded the matter for parol evidence to show the intent of the parties. Pursuant to this remand, the testimony of the attorney who drew the instrument and of some of the parties was taken. The district judge has now granted specific performance ordering defendants to convey the property to plaintiff upon payment of the specified price. Defendants appealed.
The substantial issue is whether the alleged "counter letter" is an option to repurchase, which is unenforceable since it does not stipulate a time within which to accept or reject the promise to sell.
The general facts are that plaintiff and defendants inherited approximately 4300 acres of land and owned it in indivisión. In 1963, when there was no oil production from the property, plaintiff had mortgaged his interest, was being sued by his creditors and was heavily in debt. The other heirs were afraid plaintiff's creditors would seize his interest and force a partition. So they agreed that plaintiff would sell to the other heirs his interest in the 4300 acres, as well as certain other smaller tracts which he owned, in consideration of their assuming the mortgages and judgments which totaled over $60,000. To accomplish this purpose, their attorney drew a cash sale by which plaintiff conveyed to defendants the property in question for a stated cash consideration, represented by their assumption of these indebtednesses.
Contemporaneous with the sale, the parties signed a separate instrument, the one in dispute here, in which defendants granted to plaintiff "the right and option to repurchase from the said appearers, all of that certain property sold and conveyed unto them by act" (then follows the description of the cash sale). This secret agreement provides further that should plaintiff "exercise said option to repurchase the said property sold by him to the said appearers, that he will pay to them as the repurchase price thereof, all sums of money expended by appearers and paid to him as the purchase price of said property (then follows a description of certain mortgages and judgments) . . . which have been made necessary in order for ap-pearers to protect a good and merchantable title in and to said properties."
In 1968, oil had been discovered on the property owned in indivisión. Plaintiff sought to repurchase his interest. When defendants refused to sell, the present suit followed.
The secret agreement does not stipulate any lapse of time within which, or future event before which, plaintiff had the right to repurchase the property. The intent of the parties is shown by the testimony of the attorney who drew the instrument:
"Q. There is apparently no time set out in the option or counter letter for Howard Delcambre to repurchase it. Was it your understanding that this time was to be when he was financially able to repurchase it and the property had been paid off by them?
"A. That was the only time limitation and it was not mentioned as a time consideration as such. It was more or less as a condition precedent to his repurchasing. To the best of my knowledge, I advised them, from a legal standpoint, that if I were to put this option to repurchase the thing in the sale itself and record it, that it would act as a cloud on their title if they might want to resell this property.
"Q. That was the reason they did it as a separate instrument rather than in the same instrument?
"A. That is correct. No time limitation was ever mentioned because I don't really believe that any of them ever intended to put a time limitation on it. It was — (Interrupted)
"Q. That they wanted to leave it open to him — (Interrupted)
"A. That's correct.
"Q. —at the time that they paid the property off and he could come across with the money, they wanted to transfer it back to him ?
"A. That's correct."
The unrecorded agreement is a "counter letter". The only mention of counter letters in our Civil Code is found in Article 2239 as follows:
"Counter letters can have no effect against creditors or bona fide purchasers; they are valid as to all others; but forced heirs shall have the same right to annul absolutely and by parol evidence the simulated contracts of those from whom they inherit, and shall not be restricted to the legitimate (legitime). (As amended by Acts 1884, No. 5)."
Planiol, Vol. 2, Part 1, No. 1186 defines "counter letter" in connection with his definition of simulation:
"There is simulation when one makes an apparent contract, the effects of which are modified or suppressed by another agreement, contemporaneous with the first and intended to remain secret. That definition, therefore, presupposes that there is identify of parties and of the object between the ostensible and the secret act. The secret act is called 'counter-letter'."
Our jurisprudence has recognized that various secret acts which modify or suppress apparent contracts fall within the definition of "counter letters". For instance, in Haggard v. Rushing, 76 So.2d 52 (2d Cir. La.App.1954) the counter letter provided for a usufruct. In Louis v. Garrison, 64 So.2d 254 (Orl., La.App.1953), writ of certiorari denied, the apparent act was a sale of a dwelling, and the counter letter granted the vendor the right to live on a portion of the property for the remainder of his natural life. In Lawrence v. Claiborne, 215 La. 785, 41 So.2d 680 (1949) there was an apparent sale but the counter letter provided that the purchaser was merely an agent in whose name the title was placed for convenience. In Collins v. Brunet, 239 La. 402, 118 So.2d 454 (1960), a case similar to the present matter, the apparent agreement was a sale of land, and the counter letter was a reciprocal agreement to reconvey the property, under LSA-C.C. Article 2462, first paragraph. Of course, whatever contract is provided for in the counter letter, whether it be usufruct, lease, option or reconveyance, is governed by the rules applicable to that particular kind of agreement.
Plaintiff argues first that the counter letter in this case provides for a reciprocal agreement to buy and sell, under LSA-C.C. Article 2462, paragraph 1, which reads as follows:
"A promise to sell, when there exists a reciprocal consent of both parties as to the thing, the price and terms, and which, if it relates to immovables, is in writing, so far amounts to a sale, as to give either party the right to enforce specific performance of same."
This argument has no merit. The language of the agreement shows clearly there was no agreement by plaintiff to repurchase the property. He was not obligated to accept defendants' promise to sell. Since there was no reciprocal consent to sell and to buy, there is no right to specific performance.
Plaintiff next contends that the counter letter provided an option, under LSA-C.C. Article 2462, second paragraph, which reads as follows:
"One may purchase the right, or option to accept or reject, within a stipulated time, an offer or promise to sell, after the purchase of such option, for any consideration therein stipulated, such offer, or promise can not be withdrawn before the time agreed upon; and should it be accepted within the time stipulated, the contract or agreement to sell, evidenced by such promise and acceptance, may be specifically enforced by either party. (As amended by Acts 1910, No. 249; Acts 1910, 2nd Ex.Sess., No. 3; Acts 1920, No. 27)."
It is the position of defendants that there is no option, since the agreement does not stipulate a time for plaintiff to accept or reject defendants' offer to sell. Our jurisprudence establishes a public policy in this state against holding property out of commerce, Gueno v. Medlenka, 238 La. 1081, 117 So.2d 817; Freed Realty Co. v. Singer, 12 La.App. 369, 126 So. 74; Bristo v. Christine Oil & Gas Co., 139 La. 312, 71 So. 521; Chicago Mill & Lumber Co. v. Ayer Timber Co., La.App., 131 So.2d 635; and Wright v. DeFatta, La.App., 142 So.2d 489. The statutory basis of this jurisprudence is found in LSA-C.C. Articles 488 and 491, which define ownership as the right to use, enjoy and dispose of ones property in the most unlimited manner. Obligations which cause property to be perpetually inalienable are contrary to our notion of ownership and therefore against public policy. See also Planiol, Vol. 1, Part 2, No. 2344 for a discussion of the prohibition against clauses of perpetual inalienability.
In the recent case of Clark v. Dixon, 254 So.2d 482 (3rd Cir. La.App.1971) we applied these rules to a contract of option, which did not stipulate a time within which the optionee could accept or reject the offer to sell. We held the option invalid, since it could perpetually deprive the owner of the right to alienate his property.
To satisfy the requirement of a "stipulated time", plaintiff says the time of the option continued until the defendants had paid off all of the indebtedness, and plaintiff was financially able to repurchase his interest in the property. We agree that the time of an option can be until the occurrence of a certain event. LSA-C.C. Article 2049 provides:
"A term may not only consist of a determinate lapse of time, but also of an event, provided that event be in the course of nature, certain; if it be uncertain, it forms a condition."
It is apparent that both of the events, which plaintiff contends limited the time of the option, were uncertain. There was no certainty that the defendants would ever be able to pay off the substantial indebtedness, and there clearly was no cer tainty that plaintiff would ever be financially able to repurchase his interest. These were uncertain conditions. They were not certain events which limited the term of the option. As the above quoted testimony shows, the attorney who drew the agreement understood them to be conditions and not time limitations. See Purton v. New Orleans & C & R Co., 3 La. Ann. 19; Marsh v. Lorimer, 164 La. 175, 113 So. 808; Warren Refrigerator Co. v. Cavallino, 218 So.2d 621 (La.App.1969).
Since these conditions were uncertain, they do not satisfy the requirement that the term of the option be for a "stipulated time". The reason is that if either of the conditions never occurred, the option, which is a property right and is heritable, could be perpetual and could take this property out of commerce.
Perhaps the strongest case in plaintiff's favor is Price v. Town of Ruston, 171 La. 985, 132 So. 653 (1931), which involved very peculiar facts. Mrs. Price owned a piece of land on which she was constructing a two-story brick building. She entered into an agreement with the Elks Lodge, whereby they were permitted to construct a third story for a meeting room. The agreement provided that in the event the Elks Lodge ever wanted to sell the third story, Mrs. Price would have the first right to purchase it at the price for which it was offered. The court, without much discussion, held this option was not invalid for want of a stipulation limiting the time within which it might be exercised. Apparently, the rationale of the decision is that the stipulation did not take the. third story out of commerce, because it did not result in inalienability. The Elks Lodge had the right to dispose of the property at any time, the only restriction being that they had to give Mrs. Price the right of first refusal at the price for which the property was offered. The decision in Price does not offend the public policy against inalienability. That case is distinguished from the present matter on the facts.
For the reasons assigned, the judgment appealed is reversed and set aside. It is now ordered, adjudged and decreed that there be judgment herein in favor of defendants and against the plaintiff, rejecting his demands. All costs in the district court, as well as the costs of this appeal, are assessed against the plaintiff.
Reversed and rendered.