Downs v. Hammett Properties, Inc.

Louisiana Court of Appeal
899 So.2d 792 (2005)

ELI5:

Rule of Law:

A publicly recorded land-use ordinance that restricts how a property may be used does not constitute a redhibitory defect or vice in the property itself. Therefore, a seller's failure to disclose such an ordinance does not give rise to a cause of action for redhibition.

Facts:

Shirley Downs sought to purchase property in Ouachita Parish with the specific intention of subdividing it into four separate tracts for homes for herself and her three children.
Downs informed Timothy Hammett, president of Hammett Properties, Inc., of her specific plan to subdivide the property into four lots.
On November 21, 2001, Downs entered into an act of exchange with Hammett Properties, Inc., trading her existing home and a $13,000 note for a 3.947-acre tract of land.
After the exchange, Downs discovered a Ouachita Parish ordinance that required a minimum lot size of 1.25 acres for properties utilizing individual sewage systems.
This ordinance made it impossible for Downs to legally subdivide the nearly four-acre tract into the four lots she had intended.
Downs alleged that Hammett knew about the restrictive ordinance but failed to disclose it to her before the sale.

Procedural Posture:

Shirley Downs filed a petition for redhibition against Hammett Properties, Inc., and Timothy W. Hammett in a Louisiana trial court.
The defendants responded by filing exceptions of no right and no cause of action, and Hammett Properties filed a reconventional demand for unpaid rent.
The trial court heard argument on the exceptions.
The trial court sustained the defendants' exceptions of 'no cause / right of action,' dismissing Downs's lawsuit and denying her the opportunity to amend her petition.
Shirley Downs, as appellant, appealed the trial court's judgment to the Court of Appeal of Louisiana, Second Circuit.

Premium Content

Subscribe to Lexplug to view the complete brief

You're viewing a preview with Rule of Law, Facts, and Procedural Posture

Issue:

Does a publicly recorded parish ordinance that restricts the subdivision of a tract of land constitute a redhibitory defect, giving the buyer a cause of action against the seller for failure to disclose it?

Opinions:

Majority - Stewart, J.

No, a publicly recorded parish ordinance restricting land use is not a redhibitory defect. A redhibitory defect is a physical imperfection or deformity in the thing sold, not an external restriction on its use. An ordinance is a matter of public record, equally accessible to the buyer, and the burden is on the buyer to discover such restrictions. The court reasoned that a 'defect' or 'vice' as contemplated by Louisiana's redhibition articles refers to a physical flaw, like a lacking component or deformity. In contrast, a zoning ordinance is merely a restriction on the use of the property, not an inherent quality of the land itself. Because the ordinance was a publicly recorded matter, it was 'easily and equally attainable' by Downs prior to the sale. Therefore, the seller's knowledge of the ordinance is immaterial, as the failure to disclose a publicly accessible legal restriction is not a redhibitory vice.

Analysis:

This decision clarifies the scope of redhibition in Louisiana real estate transactions, firmly distinguishing between physical defects inherent to a property and external legal restrictions on its use. It reinforces the principle of 'caveat emptor' (buyer beware) regarding matters of public record, placing the onus on the buyer to perform due diligence on zoning and subdivision regulations. The ruling makes it significantly more difficult for a buyer to rescind a sale or claim damages based on a seller's failure to disclose a publicly recorded land-use restriction, as such restrictions are not considered 'defects' in the property itself.

Gunnerbot

AI-powered case assistant

Loaded: Downs v. Hammett Properties, Inc. (2005)

Try: "What was the holding?" or "Explain the dissent"