American Nat. Bank v. Bauman

137 So. 54, 173 La. 336, 1931 La. LEXIS 1866
CourtSupreme Court of Louisiana
DecidedJuly 17, 1931
DocketNo. 31351.
StatusPublished
Cited by15 cases

This text of 137 So. 54 (American Nat. Bank v. Bauman) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Nat. Bank v. Bauman, 137 So. 54, 173 La. 336, 1931 La. LEXIS 1866 (La. 1931).

Opinion

OVERTON, J.

Plaintiff caused executory process to issue on a mortgage, given by defendant to secure a promissory note, made by him, for the sum of $9,500, with 6 per cent, per annum interest thereon and 10 per cent, attorney’s fees, dated January 26, 1924, payable six months after date to the order of defendant, and indorsed by him in blank. There appear no credits on the note.

The sheriff, under the writ of seizure and sale that issued, seized the mortgaged property, and proceeded to advertise it for sale.. Defendant thereupon applied to the district judge for a preliminary injunction to stop the sale; the application being based upon the ground that the note prescribed long prior to the issuance of executory process, by the prescription of five years, which defendant pleaded.- The application contained no prayer for the issuance of a rule nisi; it being defendant’s position that he is entitled to the writ on the face of the record, without the issuance of a rule nisi.

The trial judge refused to grant the preliminary injunction, save after a hearing upon a rule nisi, which he offered to issue, and also offered to issue a temporary restraining order, without bond, pending the hearing by him of the application, if a proper showing therefor should be made.

The question presented is whether the judge acted rightfully in refusing to grant the injunction, except after a hearing had upon a rule nisi.

Prior .to the adoption of Act No. 29, of 1924, all the general rules, applying to the issuance of injunctions,' were found in the section of the Code of Practice, treating of injunctions, beginning with article 296. Other rules were provided, not applicable to injunctions generally, but only to injunctions applied for, *55 upon stated grounds, in proceedings by ex-ecutory process. These are found in the chapter of the Code of Practice, treating of executory process, and are contained- in articles 738 to 743, and 748, 749, inclusive, of that Code.'

Article 738 authorizes the enjoining of the sale, upon the written opposition of the debt- or, on his alleging, under oath, one of the reasons contained in article 739, among which is the ground here relied on, namely, that the debt is barred by prescription. Article 740 provides that, when the judge grants the injunction on any ground prescribed in article 739, he shall require no surety from the defendant, but shall pronounce summarily on the merits of the opposition, if the plaintiff require it. Article 741 provides that the plaintiff in the executory proceedings may compel the defendant to prove, in a summary manner, before the judge, the truth of the facts alleged in his opposition. Articles 742 and 743 relate to the disposition of the opposition, according to the proof produced on the trial thereof, and articles 748 and 749 relate to injunctions requiring the giving of bond upon grounds seldom invoked, and require only bare mention here.

Unquestionably, the general rules applicable to the issuance of injunctions, contained in the section of the Code, beginning with article 296, have been modified by Act No. 29 of 1924, page 39. There would have been no reason for the passage of the act had it not been the intention to include within its scope the modification of those rules. The .question, however, is: Did the act include within its scope the modification of the rules peculiar to the issuance of injunctions in proceedings by executory process?

The purpose of the act is to regulate procedure in respect of temporary restraining orders and preliminary writs of injunction. In section 2 thereof provision is made for the issuance of a rule nisi, upon application being made for a writ of injunction, and also for the issuance of a temporary restraining order, in the discretion of the court, upon the furnishing of bond, except where bond is not required under existing applicable laws, which means where bond is not required for the issuance of a preliminary writ of injunction. Section 1 of the act provides that: “Hereafter no writ of injunction shall be issued without notice [referring to the rule nisi], given as hereinafter provided, to the opposite party or parties to be affected thereby, and without opportunity given for hearing of the opposite party.” Section 7 of the act provides that: “Only such laws, or parts of laws, as are in conflict herewith are hereby repealed.”

Prior to the adoption of Act No. 29 of 1924, a rule nisi was not required in order to obtain a preliminary injunction, save in certain specified instances, such as an application for an injunction to enjoin a sale for taxes, but the judge usually acted upon the face of the application and the documents thereto attached. He so acted in proceedings for a preliminary injunction to enjoin the sale about to be made under executory process, for, if the application showed cause for the injunction, it was considered that the applicant was entitled to the writ as a matter of right. H. & C. Newman v. Frevin, 42 La. Ann. 720, 7 So. 799. As to whether the applicant for an injunction still has the right, upon the face of his application, if grounds be there shown, to a preliminary injunction to restrain the execution of a writ of seizure and sale, issued in proceedings by executory process, without the issuance of a rule nisi, depends upon whether section 1 of the act, quoted above, modifies the procedure theretofore existing for the granting of the writ in such proceedings.

As we have observed, the section of the Code, under the title of “Injunction,” prescribes the general rules for the issuance of injunctions, and the section of the Code, under the heading of Executory Process,” prescribes special rules, peculiar to that process, for the issuance of the writ of injunction against the writ of seizure and sale in such process, whereas Act No. 29 of 1924 prescribes general rules,'governing the issuance of the preliminary writ of injunction, and unmistakably modifies the general rules, prescribed under the heading of “Injunction,” and, after mature consideration, our conclusion is that the act also modifies the rules under the head*-ing of “Executory Process” to the same extent as it does under the heading of “Injunction,” namely, to the extent of prohibiting the issuance of a preliminary injunction until after a hearing on a rule nisi, with leave to the court to grant, in the meantime, in proper eases, ex parte, a temporary restraining order, with or without bond, depending upon whether the preliminary injunction demanded may issue with or without bond.

The object had in view, in enacting the act of 1924, was to rid the state of the abuse to which the ex parte issuance of the writ of injunction had been subjected for many years, by arranging the procedure for its issuance so that the judge would have to act no longer blindly on the face of the application for the writ, but would be placed in position to act with the crucial facts before him, obtained contradictorily with the party, sought to be enjoined, after a prompt hearing, and with the right, in the exercise of a sound discretion, to grant a temporary, restraining order pending the hearing.

The object had in view, in adopting the act of 1924, applies to the same extent, if not to a greater extent, to the issuance of a preliminary injunction on the grounds, enumer *56 ated in the Code of Practice under tlie title of “Executory Process,” as it does on the grounds, under the heading of “Injunction,” found therein.

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Bluebook (online)
137 So. 54, 173 La. 336, 1931 La. LEXIS 1866, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-nat-bank-v-bauman-la-1931.