That would be false.
27 Blackburn is personally liable for the fraud even though he signed the agreement as an officer of Phoenix
Associates. .Louisiana Civil Code Article 3019 states:
A mandatary who exceeds his authority is personally bound to the third person with whom he contracts,
unless that person knew at the time the contract was made that the mandatary had exceeded his authority or
unless the principal ratifies the contract.
The plaintiffs have articulated three areas where they
claim to have suffered damages as a result of Blackburn and Carolyn Alonzo’s deception. First,
the plaintiffs produced three promissory notes, all dated May 16, 2008, which is the same date
the purchase agreement was executed, all signed by Blackburn as Chief Operating Officer of
Phoenix Associates. The first note is payable to Highground in the amount of $150,000.00 for
the royalty interest in the W.W. Owens leasehold.32 The second note is also payable to
Highground in the amount of $59,950.00; it is for money loaned to Treaty Petroleum prior to the
sale and is included in the purchase agreement as a part of the sale.33 The third note is payable to David Hallin in the amount of $45,000.00; it is for money loaned to Treaty Petroleum prior to
the sale and is included in the purchase agreement as a part of the sale. The plaintiffs have shown a loss with respect to the three promissory notes.
None of the exceptions to Blackburn’s personal liability were proved at trial, thus the court finds
that Blackburn is personally liable on the notes under both Texas and Tennessee law.
