185 So. 3d 107
La. Ct. App.2016Background
- Robert Lucien Sr. and William K. Dupree formed Audubon Meadow Partnership in 1984; Dupree was designated managing partner. Both remained listed as partnership representatives in state filings.
- The Partnership purchased property (67 lots) in 1986 with a CNB loan; the subdivision was never developed and taxes went unpaid for decades.
- Dupree filed Chapter 7 bankruptcy in 1990; the partnership agreement expressly terminated a partner upon voluntary bankruptcy.
- After tax sales of the lots and expiration of redemption periods, Dupree executed a quitclaim deed in 2010, transferring whatever interest he (individually) had to Sapphire for $1,000; Lucien alleges the deed was an improper sale of partnership property.
- Lucien sued Dupree and Sapphire; cross-motions for summary judgment were filed. The trial court granted Dupree’s motion and dismissed Lucien’s claims for failure to show ownership, damages, or a genuine issue of material fact.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the Partnership was terminated and whether Dupree’s bankruptcy converted it to a sole proprietorship | Lucien: Partnership terminated and Dupree’s bankruptcy converted business; Lucien could continue as sole proprietor | Dupree: Voluntary bankruptcy terminated partnership membership, reducing membership to one and ending the partnership | Court: Partnership terminated upon Dupree’s voluntary bankruptcy; partnership ceased to exist (no genuine issue) |
| Whether Dupree had authority to convey partnership property by quitclaim to Sapphire | Lucien: Quitclaim was void because Dupree lacked authority and effectively sold partnership property for nominal consideration | Dupree: Partnership had terminated earlier; quitclaim conveyed only Dupree’s individual interest (if any); nominal consideration appropriate for quitclaim | Court: Quitclaim could convey only whatever individual interest Dupree had; he could not convey partnership property because the partnership no longer existed |
| Whether Lucien retained an individual ownership interest affected by the quitclaim | Lucien: Claims an ownership interest and damages from the transfer | Dupree: Lucien produced no evidence of any enforceable individual interest or damages; tax sales had extinguished partnership property | Court: Lucien failed to show he had an ownership interest or would meet evidentiary burden at trial; no genuine issue of material fact |
| Whether sanctions are warranted for a frivolous appeal | Dupree: Appeal is frivolous; seek sanctions under La. C.C.P. art. 2164 | Lucien: Pro se seeking relief; not argued as sanctionable | Court: Although claims lacked merit, sanctions declined because pro se status and record did not justify penalties |
Key Cases Cited
- Samaha v. Rau, 977 So.2d 880 (summary judgment standard in Louisiana)
- Babin v. Winn-Dixie La., 764 So.2d 37 (opponent must produce evidence to create genuine issue)
- Capital One, N.A. v. Walters, 94 So.3d 972 (summary judgment burden-shifting principles)
- Sensebe v. Canal Indem. Co., 58 So.3d 441 (appellate de novo review of summary judgment)
- Franklin v. Camterra Resources Partners, Inc., 123 So.3d 184 (quitclaim deed conveys only grantor’s existing interest)
- Smitko v. Gulf South Shrimp, Inc., 94 So.3d 750 (proper parties required to challenge tax sale procedures)
- Wisner v. PDQ Constr. Co., 996 So.2d 442 (sanctions against pro se litigants require justification)
- Commercial Nat’l Bank v. Audubon Meadow Partnership, 566 So.2d 1136 (prior related appellate decision concerning CNB suit)