Associates Financial Services, Co. v. Hillebrandt

250 So. 2d 75, 1971 La. App. LEXIS 5935
CourtLouisiana Court of Appeal
DecidedJune 22, 1971
DocketNo. 3455
StatusPublished
Cited by6 cases

This text of 250 So. 2d 75 (Associates Financial Services, Co. v. Hillebrandt) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Associates Financial Services, Co. v. Hillebrandt, 250 So. 2d 75, 1971 La. App. LEXIS 5935 (La. Ct. App. 1971).

Opinion

DOMENGEAUX, Judge.

Plaintiffs Port Drum Company, Inc. and Associates Financial Services Company, Inc. and defendants Joseph D. Racca, Jor[77]*77dan Wholesale Company, Inc., The First National Bank of Lake Charles, Mutual Warehouse Company, Inc. and John Deere Company were awarded separate money judgments against one James Mallett in the Thirty-First Judicial District Court of Louisiana in and for Jefferson Davis Parish.

Plaintiffs, after the time for taking sus-pensive appeals had elapsed, by proceedings in the Fourteenth Judicial District Court in and for Calcasieu Parish, Louisiana, had their judgments made executory in that parish. The five defendant judgment creditors as soon as they secured their judgments, had them certified by the Clerk of Court of Jefferson Davis Parish and caused them to be recorded in the Mortgage Records of Calcasieu Parish, Louisiana. The judgment of Port Drum Company, Inc. was secured on May 1, 1970 and made executory on May 26, 1970, and that of Associates Financial Services, Inc. was secured on May 15, 1970 and made execu-tory on June 22, 1970. The defendant judgment creditors Racca, Jordan, The First National Bank of Lake Charles and John Deere secured their judgments on May 1, 1970 and defendant judgment creditor Mutual Warehouse secured its judgment on April 28, 1970. Racca and Jordan recorded their judgments in Calcasieu Parish on May 1, 1970, The First National Bank recorded its in said parish on May 4, 1970 and Mutual Warehouse and John Deere recorded theirs on May 5, 1970 in Calcasieu Parish.

Plaintiffs ultimately filed this suit in the Fourteenth Judicial District Court in and for Calcasieu Parish, Louisiana against the above named defendants and the Clerk of Court of Calcasieu Parish on a rule to show cause why their judgments, which had been made executory, should not be declared superior to the judgments of the five defendant judgment creditors which had been inscribed on the Mortgage Records of Calcasieu Parish.

From the above, it is seen that none of the defendant judgment creditors of Mal-left sought to have their Jefferson Davis Parish judgments made executory in Cal-casieu Parish, but did have their judgments recorded in the Mortgage Records of Cal-casieu Parish. On the other hand, the two plaintiff judgment creditors did not have their Jefferson Davis Parish judgments recorded in Calcasieu Parish, but chose instead to have their judgments made execu-tory in said parish after the delays for sus-pensive appeal had run.

The trial court made plaintiffs’ rule absolute and declared their judgments superi- or to the judgments of the defendant.

Defendants, on appeal, pray that the judgment of the trial court be reversed and that plaintiffs’ rule be dismissed.

The basic issue herein is as follows: Did the trial court err in applying the procedural devices of execution of judgments and thereby ignore the substantive law relating to judicial mortgages?

A review of the Civil Code articles pertaining to mortgages shows that they are either conventional, legal or judicial (C.C. Article 3286); that judicial mortgages take effect from the day the judgment is recorded (C.C. 3322, 3329); that the inscription of mortgages only binds the property of the debtor when it has been made in the office of mortgages for the parish where the property lies, and if the debtor has immovable property lying in more than one parish, the inscription ought to be made in the office of mortgages for each of them. (C.C. 3346); that no mortgage shall affect third parties unless recorded in the parish where the property to be affected is situated (C.C. 3347); and that any person entitled to a mortgage or privilege on the property of another person must cause the evidence of such mortgage or privilege to be recorded in the mortgage book of the parish where the property is situated (C.C. 3348).

A reading of the mortgage articles makes it apparent that the judicial mortgage, just as the conventional or legal [78]*78mortgage, is effective against third persons from the date of its inscription in the Mortgage Records of any parish in which the immovable property of the debtor is located. Once the mortgage is recorded, it primes all subsequent recorded mortgages. Under the provisions of Civil Code Articles 3342 and 3346 inscription of the mortgage by the recorder of mortgages is the only requirement to convey to the mortgagee his privilege.

In the early case of Succession of Dickson, 37 La.Ann. 795, the Louisiana Supreme Court held that judgments recorded in different parishes operate as judicial mortgages upon the land in each parish from their respective dates of recordation. To this effect, see also Harvey v. Thomas, 239 La. 510, 119 So.2d 446; Central Savings Bank & Trust Co. v. Tucker, 182 La. 289, 161 So. 759; Courshon v. Mauroner-Craddock, Inc., La.App., 219 So.2d 258.

In reaching its decision the trial court relied upon the provisions of Code of Civil Procedure Articles 2252 and 2781. Code of Civil Procedure Article 2252 reads:

“A judgment creditor may proceed with the execution of a judgment only after the delay for a suspensive appeal therefrom has elapsed.”

Code of Civil Procedure Article 2781 states:

“A judgment rendered in a Louisiana court may be made executory in any other Louisiana court of competent jurisdiction, if its execution has not been and may not be suspended by appeal.”

The trial court concluded that should the defendant judgment creditor wish to proceed by foreclosure on the debtor’s property in Calcasieu Parish, then in that event, it would have to make its judgment execu-tory in that parish. We believe the trial court has committed error in this regard in view of the plain expression of our Civil Code articles on judicial mortgages referred to hereinabove; and further, a reading of comment “B” to the Code of Civil Procedure Article 2781 indicates a conclusion contra to that of the trial court’s. That comment is quoted as follows:

“(b) Ordinarily the judgment rendered by another Louisiana court will be enforced through the writ of fieri facias authorizing the sheriff where the debt- or’s property is located to seize and sell it under this writ to satisfy a judgment. Art. 642, Code of Practice of 1870; Lafon v. Smith, 3 La. 473 (1832). Hence, usually there is no necessity to make the judgment of another Louisiana court ex-ecutory. There are two instances where it is absolutely necessary to make the judgment of the other court executory: (1) in garnishment proceedings under the writ of fieri facias, where the garnishee is domiciled in another parish, Art. 2416, supra; and (2) in the examination of a judgment debtor domiciled in a parish other than the one in which the judgment was rendered. Art. 2452, supra.” (Italics for emphasis.)

We see from this comment that even in the case of an execution on a judgment, there are only two instances where it is necessary to make a judgment executory in another parish, those instances being in situations having to do with judgment debtors and in garnishment situations. We are concerned with neither of these in this case.

When the five defendant judgment creditors recorded their judgments in Cal-casieu Parish they were merely protecting their privileges as to any immovable property which the debtor James Mallett might own in Calcasieu Parish.

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250 So. 2d 75, 1971 La. App. LEXIS 5935, Counsel Stack Legal Research, https://law.counselstack.com/opinion/associates-financial-services-co-v-hillebrandt-lactapp-1971.