Austin, Thorpe & Co. v. Da Rocha, Becker & Co.

23 La. Ann. 44
CourtSupreme Court of Louisiana
DecidedJanuary 15, 1871
DocketNo. 1912
StatusPublished
Cited by4 cases

This text of 23 La. Ann. 44 (Austin, Thorpe & Co. v. Da Rocha, Becker & Co.) 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
Austin, Thorpe & Co. v. Da Rocha, Becker & Co., 23 La. Ann. 44 (La. 1871).

Opinion

^Wxly, J.'

The plaintiffs who are appellants, obtained respectively judgments against the defendants in December, 1866. Under executions issued thereon, the contents of the stores Nos. 136 Chartres street and 147 Canal street, were seized on the twelfth of June, 1867, as the property of the defendants. The legality of the seizure of the Canal street store and the proceeds of the sales of both the stores,, form the subject of the present controversy.

A few days before the sale Mrs. Raymond Pelanne claimed an interest in the contents of the store 147 Canal street, to the extent of $12,000, as partner in commendam of one J. D. Meredith, whose name at the [45]*45time of seizure was on a sign over the door. She did not enjoin the sale, however, but on the sixth of July filed a petition of third opposition, reciting her interest and praying as follows : “That an order be issued to the effect that, if the said sheriff should persist in selling, the proceeds of said sale may be retained and kept in his hands until the determination of this third opposition and petition for damages ; that the sheriff, H. T. Hays, of New Orleans, and the seizing creditors aforesaid, Austin, Thorpe & Co., Butler & Pitkin and Wright, Brinkerhoff & Co., be severally cited; that said Harry T. Hays, sheriff, together with said seizing creditors (if they can be found), be condemned in solido to pay your petitioner the sum of twelve thousand dollars, being the value of her property wrongfully seized and taken away as aforesaid, and the further sum of- dollars per month for rent as stated above from the first of June last, until the determination of this suit; and the further sum of one thousand dollars as special damages for counsel fees, in prosecution of the present claim, and all costs, with privilege on the proceeds of said sale, for general relief,” etc.

Tiie court a qua ordered the sheriff to retain in his hands all the proceeds of sale, including those of the sale of the contents of the store 136 Chartres street, to which Mrs. Pelanne made no claim.

Several oppositions were filed by parties whose claims were rejected by the court a qua, and who have not appealed.

The following parties made oppositions, claiming privilege as clerks under article 3158 of the Civil Code, viz:

Charles Baudier, for $56 52; H. Meridier, for $97 91; J. S. Shaw, for $193 52; James T. Howard, for $691 10; Daniel Yan Allen, for $900.

• The claims of the first three were allowed. The claims of Howard and Yan Allen were rejected on the ground that they had lost their privilege by novation of their debts, and they have appealed.

The plaintiffs answered Mrs. Pelanne’s opposition by a general denial, and specially denied the title set up by her, and averred that if she had any title it was void and of no effect against them; that it was simulated and fraudulent, and the result of a conspiracy to cover and conceal the property of the defendants, Da Rocha, Becker & Co., from their creditors, and especially from the plaintiffs.

The judge a quo was of the opinion that as to the claim of Mrs. Pelanne the only question was simulation or not; that the transaction by which she claimed an interest in the store 147 Canal street, to the extent of $12,009, was a real one; that she was in possession of the interest thus claimed through Meredith; that the seizure of the goods by the plaintiffs, and their sale, involved the loss of her interest and that she must bo indemnified for her loss by the allowance to her of all [46]*46the proceeds of sale of this store, except the amount of certain privileged claims.

The proceeds of the store on Chartres street were consumed in costs.

The plaintiffs appealed and were joined as stated above, by two of the clerks.

As to the third opposition of Mrs. Pelanne, we agree with the District Judge, that the only question is simulation or not If her part ownership of the contents of the store, 147 Canal street, was real, though acquired iu fraud of the rights of the plaintiffs, their seizure of that store was illegal; her rights could not be assailed in that manner, and her opposition must he maintained.

Whether she saw fit to enjoin the sale or not, can not prejudice her rights in the premises. C. P. 400.

It is only simulated sales that the seizing creditor is permitted to disregard, because they pass no title and are not subject to the rules of real contracts operating injuriously to creditors.

If this opponent has an actual title, accompanied with possession, the plaintiffs who have thus assailed it, will not he heard setting up fraud iu the transfer; that ground of nullity they must seek iu a direct action.

An examination of the evidence satisfies us that the claim of the opponent, Mrs Pelanne, was not fictitious; as to her the transaction was not a simulation; that for a valuable consideration she became a partner in commendam, acquiring a part ownership of the store as claimed, and had possession thereof through the partnership of which she was a member, the possession of a partnership being for each of the partners.

There is no doubt, however, that as to the defendants there was a bold simulation and fraud attempted; that Samuels and Meredith were merely interposed with fictious titles to cover the turpitude of the defendants; that these parties merely held for the defendants, who never parted with actual title until they caused the transfer to be made to the third opponent, Mrs. Pelanne

We regard the partnership with Meredith and the transfer from Samuels as but the consummation of one transaction which was conducted by the defendants, doubtless, for the purpose of defeating their creditors. But, because Mrs. Pelanne was induced by these designing mea to buy an interest in the store and to form a partnership with Meredith, a party interposed, does it follow that her title to a share of the store was a simulation, in the face of evidence that she paid a real consideration therefor 1 Is an actual contract of sale to he treated as a simulation, because the object of the contract had previously beeu acquired by tbe vendor under a simulated transfer 1 We think not Mrs. Pelanne may, perhaps, be guilty of a constructive fraud iu thus [47]*47dealing with these dishonest men and obtaining a preference over other creditors, but of this the plaintiffs can not inquire in this form of attack.

Her contract with them was a real one; it is subject to the rules • governing actual contracts, and can not be treated as a simulation.

The fact that she continued to hold the notes which the defendants had given her for borrowed money, did not invalidate her engagement in purchasing an interest in the store, because after the purchase, ¿hese notes, being part of the consideration, ceased to be valuable to her; the debt which they evidenced having been settled, she might at any time be compelled to surrender them.

But the plaintiffs insist that as evidence of fraud was received without objection, the case was tried on that issue; and that it has been decided that, where the parties try the question of fraud, the opponent can not afterwards demand that the seizing creditors be compelled to resort to a revocatory action; and they cite Dejean v. Blacketer, 13 An. 595, and Stewart v. Scudder, 10 An. 216, as authorities on that point.

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Bluebook (online)
23 La. Ann. 44, Counsel Stack Legal Research, https://law.counselstack.com/opinion/austin-thorpe-co-v-da-rocha-becker-co-la-1871.