Cortinas v. Peters
1953 La. LEXIS 1398, 224 La. 9, 68 So. 2d 739 (1953)
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Rule of Law:
Possession that commences on behalf of another, such as an agent for a principal, is considered precarious and cannot form the basis for a claim of ownership by 30-year adverse possession unless the possessor performs an unequivocal act of hostility, communicated to the true owner, that manifests their intention to possess the property as the owner.
Facts:
- In 1918, Interstate Bank & Trust Company purchased nineteen lots in Square No. 1010 of New Orleans from Quaker Realty Company.
- At that time, Joseph W. Sheldon was a sales manager for Interstate Bank's real estate department.
- Sheldon took possession of the entire Square No. 1010, including the five lots at issue which the bank did not own, as an agent for Interstate Bank.
- In 1921, Sheldon personally purchased the nineteen lots from Interstate Bank but continued to possess the entire square, including the other five lots, for himself.
- On May 5, 1949, Sheldon sold the five lots to Thomann, declaring in the deed that he had acquired title through more than 30 years of adverse possession.
- On May 20, 1949, Thomann entered into a contract to sell the five lots to Dutel.
- Dutel refused to complete the sale, arguing that Thomann's title, derived from Sheldon, was not valid or merchantable.
Procedural Posture:
- Thomann (plaintiff) sued Dutel (defendant) in a Louisiana trial court, seeking specific performance of a contract for the sale of real estate.
- The trial court found that Thomann had a valid title based on prescription and ordered Dutel to purchase the property.
- Dutel (appellant) appealed the trial court's judgment to the Supreme Court of Louisiana, with Thomann as the appellee.
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Issue:
Does a person who begins possessing property as an agent for another acquire title by 30-year adverse possession if they never perform an unequivocal act, communicated to the owner, demonstrating an intent to possess for themselves?
Opinions:
Majority - McCaleb, Justice
No. Possession that commences on behalf of another is presumed to continue under that same authority and does not become adverse for the purposes of prescription unless the possessor performs an unequivocal act of hostility that is brought to the true owner's attention. Under Louisiana Civil Code Article 3500, possession must be 'under the title of owner' to support a claim of 30-year prescription. Sheldon's possession began in 1918 as an agent for the Interstate Bank, making him a 'precarious possessor' under Articles 3441 and 3490. For his possession to become adverse, he needed to unequivocally inform the bank he was now possessing as owner. His 1921 purchase of the other nineteen lots was not a sufficient act of hostility regarding the five lots at issue. Even if it were, the 30-year prescriptive period would not have been met by 1949 when the suit was filed.
Analysis:
This decision reinforces the high bar for converting precarious possession (e.g., by a tenant or agent) into the adverse possession required for acquisitive prescription. It clarifies that the change in the possessor's intent must be demonstrated by an overt, hostile act sufficient to put the true owner on notice. The ruling protects property owners from losing title to agents or fiduciaries who secretly decide to claim property for themselves without making their adverse intentions known. This maintains the principle that possession is presumed to continue under its original character unless there is clear and convincing proof to the contrary.
