Phillips v. Parker
483 So.2d 972 (1986)
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Rule of Law:
A purchaser of immovable property is not automatically considered a bad faith possessor for the purposes of ten-year acquisitive prescription merely because an attorney's title examination failed to discover a defect. The purchaser's good faith is presumed and must be evaluated based on objective considerations, with the title examination being only one factor in that analysis.
Facts:
- In 1947, G.R. Weaver acquired a 2.55-acre tract of land.
- On August 22, 1955, Weaver sold one lot from the tract to Burie Edgar Parker and his wife (the Parkers) and an adjacent lot to the McCuller brothers.
- The Parkers soon discovered their deed described the wrong property and, on their attorney's advice, hired a surveyor and had the attorney perform a title examination on the property they intended to buy.
- The attorney's title examination failed to discover that a portion of the Parkers' intended property overlapped with the property Weaver had already sold to the McCullers.
- On October 7, 1955, Weaver and the Parkers executed corrective deeds, with the Parkers receiving title to the property they intended to purchase, which included a thirteen-foot strip already sold to the McCullers.
- In 1956, the Parkers built a fence along the surveyed property line, enclosing the disputed thirteen-foot strip, and maintained peaceful possession.
- In 1972, the McCullers sold their lot to Johnie Fenton Phillips.
- In 1982, Phillips discovered the thirteen-foot overlap when attempting to move a trailer onto her property, leading to the dispute.
Procedural Posture:
- Johnie Fenton Phillips filed a boundary action against Burie Edgar Parker and his wife in the trial court.
- The Parkers responded by filing an exception of ten-year acquisitive prescription.
- The trial court overruled the Parkers' exception, finding they were in 'legal bad faith,' and fixed the boundary in favor of Phillips.
- The Parkers, as appellants, appealed to the Louisiana Court of Appeal.
- The Court of Appeal affirmed the trial court's judgment, holding that the Parkers had constructive knowledge of the title defect because they had undertaken a title search.
- The Parkers, as applicants, sought and were granted a writ of certiorari by the Supreme Court of Louisiana.
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Issue:
Does a purchaser of immovable property lack the requisite good faith for ten-year acquisitive prescription simply because they obtained a title examination that failed to reveal a defect in the seller's title?
Opinions:
Majority - Justice Lemmon
No. A party who obtains a title examination is not solely for that reason precluded from claiming the status of a good faith possessor in a plea of ten-year acquisitive prescription. The lower courts misapplied a theory of constructive knowledge, which incorrectly penalizes a prudent purchaser who obtains a title examination and rewards one who does not. Good faith, under La.C.C. Art. 3480, is determined by whether the possessor reasonably believes, in light of objective considerations, that they are the owner. The Parkers' actions—hiring a surveyor and an attorney upon discovering an initial error and then reasonably relying on that attorney's professional opinion—were objectively reasonable. Since good faith is presumed, and the plaintiff failed to rebut this presumption with evidence that the Parkers knew or should have known of the defect, their plea of acquisitive prescription must be sustained.
Concurring - Justice Marcus
Justice Marcus concurred in the result without providing a separate written opinion.
Analysis:
This decision significantly clarifies the standard for 'good faith' in Louisiana's acquisitive prescription law, moving away from a rigid 'constructive knowledge' doctrine. It establishes that a purchaser's prudence in obtaining a title examination will not be held against them if the examination is flawed. The ruling solidifies the principle that good faith is an objective, fact-based inquiry into the possessor's reasonable beliefs, rather than a legal fiction that imputes knowledge of all public records. This protects long-term possessors who acted reasonably at the time of purchase and strengthens the role of acquisitive prescription in stabilizing land titles.
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