Fairbanks Development, LLC v. Johnson et al.
Annotate this CaseJessica Petersen and Charles Johnson began living together while Petersen was attending college in Georgia. Although Johnson worked as a mechanic, the couple’s lifestyle was funded almost entirely by a trust created for Petersen’s benefit by her grandfather. In 2000 they returned to Louisiana and purchased a house and surrounding acreage in Ouachita Parish. The act of sale expressly conveyed ownership of the property to Johnson and Petersen, both of whom signed the deed before a notary public and two witnesses. The purchase price was paid in full at closing with funds from Petersen’s trust. Shortly thereafter Petersen and Johnson acquired additional acreage adjacent to the original tract. This second act of sale also conveyed ownership of the property to Johnson and Petersen, and both signed the deed before a notary public and two witnesses. The purchase price for this parcel was paid with funds loaned to Petersen by her mother. At the time of the purchases, Petersen and Johnson were not married. They married soon afterward, had the first of three children, and began a life in their new home. Their relationship ended in divorce in 2006. Petersen was granted exclusive use of the home in the divorce proceeding and remained there until moving out of town and eventually out of state. A prospective buyer offered to purchase the property, but Johnson would not agree to the sale. In 2017 Johnson moved back into the house with his current wife and their children. In 2018 Petersen sold an undivided one-half interest in the property to Fairbanks Development, LLC., which then instituted this proceeding to partition the property, naming both Petersen and Johnson as defendants. The issue this case presented for the Louisiana Supreme Court's review was which of the following determines one’s status as a co-owner of immovable property: the authentic act conveying ownership of the property, or the source of the funds used to pay the purchase price. The Court found the authentic act controlled.
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