Louisiana 2015 2015 Regular Session

Louisiana House Bill HB504 Engrossed / Bill

                    HLS 15RS-1137	ENGROSSED
2015 Regular Session
HOUSE BILL NO. 504
BY REPRESENTATIVE JAY MORRIS
Prefiled pursuant to Article III, Section 2(A)(4)(b)(i) of the Constitution of Louisiana.
PROPERTY:  Provides relative to donations inter vivos
1	AN ACT
2To enact R.S. 9:2371.1, relative to donations inter vivos; to provide for the effect of
3 donations in authentic form as to certain third persons; to provide for applicability
4 of donations inter vivos recorded during certain time periods; to provide for
5 legislative intent; and to provide for related matters.
6Be it enacted by the Legislature of Louisiana:
7 Section 1.  R.S. 9:2371.1 is hereby enacted to read as follows: 
8 ยง2371.1.  Form required for donation inter vivos; effect
9	No party may contradict a donation inter vivos that on its face is in authentic
10 form to the prejudice of a bona fide third party in good faith who after its recordation
11 acquires an interest in or over the immovable property to which the donation relates.
12 The provisions of this Section shall apply to all donations of immovable property
13 made prior to and on or after July 1, 2015, and any cause of action to assert the
14 nullity of such a donation for lack of authentic form against a bona fide third party
15 in good faith who acquired an interest after its recordation shall be brought within
16 the later of July 1, 2016, or one year from the recordation of the act of donation or
17 be forever barred.
18 Section 2.  The provisions of this Act are intended to legislatively address the ruling
19of the court in the case of Eschete v. Eschete, 2012-CA-2059 (La. App. 1
st
 Cir. 2/27/2014),
20142 So.3d 985, in order to reemphasize the policy of enforcing the public records doctrine
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions. HLS 15RS-1137	ENGROSSED
HB NO. 504
1and to protect the rights of a bona fide third party who relies in good faith on recorded acts
2of donation which appear to be in authentic form as filed in the mortgage or conveyance
3records.
DIGEST
The digest printed below was prepared by House Legislative Services.  It constitutes no part
of the legislative instrument.  The keyword, one-liner, abstract, and digest do not constitute
part of the law or proof or indicia of legislative intent.  [R.S. 1:13(B) and 24:177(E)]
HB 504 Engrossed 2015 Regular Session	Jay Morris
Abstract:  Prohibits the contradiction, under certain circumstances, of a donation inter vivos
made in authentic form.
Proposed law provides that a donation inter vivos in authentic form may not be contradicted
to the prejudice of a bona fide third party in good faith who after its recordation acquires an
interest in or over the immovable property to which the donation relates.
Provides that proposed law shall apply to all donations of immovable property made prior
to and on or after July 1, 2015, and any cause of action to assert the nullity of such a
donation shall be brought within the later of July 1, 2016, or one year from the recordation
of the act of donation.
Proposed law emphasizes the intent of the legislature in response to the case of Eschete v.
Eschete, 2012-CA-2059 (La. App. 1
st
 Cir. 2/27/2014), 142 So.3d 985, in order to enforce the
public records doctrine and to protect bona fide third parties who rely on such records in
good faith.
(Adds R.S. 9:2371.1)
Summary of Amendments Adopted by House
The Committee Amendments Proposed by House Committee on Civil Law and
Procedure to the original bill:
1. Add a technical amendment.
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CODING:  Words in struck through type are deletions from existing law; words underscored
are additions.