CHERYL FLANAGAN, WIFE OF/AND NICHOLAS J. ROGERS
SHIRLEY CROCKER, WIFE OF/AND BOBBY RAY T. MALBROUGH
ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT, PARISH OF JEFFERSON, STATE OF LOUISIANA. NO. 671-995, DIVISION " J" . HONORABLE STEPHEN C. GREFER, JUDGE PRESIDING.
F. VICTOR HASTINGS, ATTORNEY AT LAW, COUNSEL FOR PLAINTIFFS/APPELLEES.
R. RAY ORRILL, JR., ATTORNEY AT LAW, New Orleans, Louisiana, COUNSEL FOR DEFENDANTS/APPELLANTS.
Panel composed of Judges Jude G. Gravois, Marc E. Johnson, and Hans J. Liljeberg.
JUDE G. GRAVOIS, Judge.
[14-402 La.App. 5 Cir. 2] Defendants/appellants, Shirley Crocker, wife of/and Bobby Malbrough (" the Malbroughs" ), appeal a trial court judgment that found plaintiffs/appellees, Cheryl Flanagan, wife of/and Nicholas Rogers (" the Rogers" ) did not commit fraud in the sale of their home to the Malbroughs. For the reasons that follow, we affirm.
FACTS AND PROCEDURAL HISTORY
On June 1, 2007, the Rogers agreed to sell their home located at 2 Chateau Margaux Court in Kenner, Louisiana, to the Malbroughs for the price of $490,000.00. A purchase agreement was signed, and pursuant to that agreement, a property inspection of the home was performed. Following the inspection, the Rogers corrected certain deficiencies in the home, which corrections were accepted by the Malbroughs. The Malbroughs, however, were unable to obtain the funds necessary to proceed with the closing. Therefore, instead of signing an act of sale, [14-402 La.App. 5 Cir.
3] on June 28, 2007, the parties entered into a one-year lease-purchase agreement, which required that the sale take place within that time period. Pursuant to the lease-purchase agreement, the Malbroughs agreed to pay, among other payments, $3,000.00 per month in rent, with $1,000.00 of the monthly rent being credited towards the purchase price of the home.
The Malbroughs lived in the home under the lease-purchase agreement for 17 months. Prior to completing the act of sale, a second appraisal of the home was required. This appraisal came back at $428,000.00, which resulted in additional financial issues for the Malbroughs. Thus, in order to complete the sale at the originally agreed upon price of $490,000.00, the parties agreed that they would close the act of sale for a price of $428,000.00, and at the same time, the Malbroughs would execute a promissory note in favor of the Rogers for the difference between the purchase price and $490,000.00, after giving the Malbroughs credit for rent and other payments.
On November 26, 2008, an Act of Cash Sale of the home at the price of $428,000.00 was consummated. The act of sale included an expressed waiver of warranty as to fitness of the home and redhibition. The promissory note, also signed on November 26, 2008, called for the Malbroughs to pay the Rogers $52,125.00, plus interest at an annual rate of 5.99 percent, payable in six equal monthly installments of principal and interest. By mutual agreement of the parties, the principal amount of the promissory note was later corrected to $51,800.00.
It is undisputed that the Malbroughs only paid the first installment due on the promissory note. As a result, on April 14, 2009, the Rogers filed a petition
[14-402 La.App. 5 Cir. 4] exercising their right to accelerate the payments due under the promissory note and to collect the entire ...