Bank of Commerce & Trust Co. v. Brown Cotton Oil Co.

136 So. 305, 173 La. 167, 1931 La. LEXIS 1845
CourtSupreme Court of Louisiana
DecidedMarch 30, 1931
DocketNo. 27937.
StatusPublished
Cited by1 cases

This text of 136 So. 305 (Bank of Commerce & Trust Co. v. Brown Cotton Oil 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
Bank of Commerce & Trust Co. v. Brown Cotton Oil Co., 136 So. 305, 173 La. 167, 1931 La. LEXIS 1845 (La. 1931).

Opinions

OVERTON, J.

This is an appeal by J. H. Harrington, the third opponent in the first suit, named in the title, and the plaintiff in the second suit, named therein, from a judgment, rendered in favor of Harrington, in the second suit, against the Brown Cotton Oil Company, Inc., the defendant therein, for $843.32, with legal interest from judicial demand, dissolving a writ of sequestration that issued therein, and rejecting his demands in that suit in all other respects, and in the first suit, in which the Bank of Commerce & Trust Company is plaintiff, ordering the payment to plaintiff of the funds, retained therein by the sheriff, by virtue of an order, issued therein on Harrington’s intervention in that suit, free from the claims of Harrington.

The litigation is the outcome of a claim of Harrington against the Brown Cotton Oil Company for a balance of $1850, for salary as manager and bookkeeper of that company, with 5 per cent, interest on $1,650 of that sum from judicial demand, and on $200 thereof from August 1,1925, and for the balance of a claim for money lent by Harrington to the Brown Cotton Oil Company, amounting to $343.32.

The Brown Cotton Oil Company was organized in or about the summer of 1923. J. R. Brown, of Mansfield, La., was its president; M. C. Stockbridge of Shreveport, La., its vice-president and general manager; and J. H. Harrington, of Monroe, La., its secretary and treasurer. These officials neither received nor expected any salary as such. They, including Harrington, were also on the company’s board of directors;

The company made rather extensive preparations to engage in business. It borrowed from the Bank of Commerce & Trust Company, for that purpose, $100,000, which it secured by mortgage on its plant at Bastrop, La. The suit, first named in the title, was brought to foreclose that mortgage. Harrington, who is an experienced cottenseed oil man, and a stockholder in the company, was employed as manager of the mill at Bastrop, at a salary of $250 a month. The company from the outset, due to unfavorable conditions in the market, did not succeed. It soon became probable that its continued operation *171 would result in failure, though the company thereafter continued to struggle for a while. After operating for about three months, it closed down, and did not thereafter engage in the manufacture of cottonseed oil, for the reason that it found itself unable to finance any longer its operations, but continued to sell, as occasion presented, what products it had on hand, and to prepare them for shipment. It still owed the Bank of Commerce & Trust Company the money that bank had lent the company.

About the time the company ceased operating,- it was instrumental in having a warehouseman appointed, with whom it stored all of its products, though the products were not moved from the company’s plant, for the warehouseman had no place convenient to store them. Negotiable warehouse receipts were issued by the warehouseman, and pledged by the Company to the Bank of Commerce & Trust Company to secure better the company’s indebtedness to the bank for the money lent the company, secured by mortgage. Harrington, at the time of the issuance of these receipts, knew nothing of their issuance until he returned to work after a protracted spell of illness. However, they were reissued in October, 1924, at which time, Harrington, acting under the directions of his superior officers, wrote out the new certificates and presented them to the warehouseman for his signature and accepted an appointment from him as his agent to take charge of the goods.

The privilege arising from the pledging of these certificates is asserted by the bank, in its intervention in the secofid suit, named in the title, against the privilege, claimed by Harrington, in that suit, for services performed.

In.his intervention in the first suit, named in the: title, Harrington asserts against the real property mortgaged the same privilege for services performed for the Brown Cotton Oil Company that he asserts against the cottonseed products, pledged. Harrington concedes in this court that he is not entitled to the privilege, as relates to the bank, on the real estate. Hence, the first suit, named in the title, passes out of this appeal, and leaves only the second.

There is no contest, in this court; concerning the item of $343.32, balance due for money loaned, for which no privilege is claimed. Harrington concedes that his salary of $250 a month was paid up to May 1,1924, and there was never, in these proceedings, any • claim for it. He claims, however, his salary for May and June, 1924. His salary for June, 1924, and for the following months, involved in this appeal, due to the condition of the Brown Cotton Oil Company, was, of his own motion, reduced to $200 a month. It is conceded, in this court, that the salary for these two months, amounting to $450, is due. However, the salary for July and August, 1924, and for the period from February 1, 1925, to July 1 of that year, amounting to $1,400, is in dispute here.

It will be observed that there is no claim for salary during the period, ranging from September 1, 1924, to February 1,1925. During this period Harrington concedes that he was paid his salary by check, issued by the Warren Cotton Oil Company. Since; however, Harrington, in February, 1925, resumed work at the Brown Cotton Oil Company’s plant, this circumstance is a matter of some importance in determining whether, upon his resumption of work there, his salary continued at $200 a month. It seems that during that period the Brown Cotton Oil Company had no particular need for Harrington. After first consulting him, Stockbridge, the company’s general manager, secured a position to be filled by Harrington as purchaser *173 of cottonseed1 for the Warren Cotton Oil Company, and other mills, at $200 a month, a commission of $2.50 a ton, to be paid the Brown Cotton Oil Company, by those receiving the seed, on seed purchased by Harrington. These commissions, which the Brown Cotton Oil Company received, amounted to $1,748.15, or $748.15 more than Harrington’s salary, during that period. We think that Harrington’s connection with the Brown Cotton Oil Company, as an employee during that period, did not cease, and that, in the absence of anything to the contrary, when he resumed work at the Brown Cotton Oil Company’s plant, he did so under a continuance of the same salary of $200 a month that prevailed before. Hence, we conclude, unless it should appear that he agreed to work without salary for the period following his resumption of work at the Brown Cotton Oil Company’s plant, that his salary for that period continued at $200 a month.

However, it is urged that Harrington and the remaining officials of the Brown Cotton Oil Company agreed, due to the financial condition of the company, to accept no salaries for their work. If this means salaries for discharging the duties of their respective offices, created by the charter or by-laws of the company, none of them, including Harrington, so far as we know, either received or is claiming any. But the position taken does not mean that. As there is evidence both ways, the answer to the question, whether Harrington so agreed or not, is dependent upon where lies the weight of evidence. We think the weight of evidence is to the effect that Harrington did not so agree.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

United Credit Co. v. Croswell Co.
54 So. 2d 425 (Supreme Court of Louisiana, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
136 So. 305, 173 La. 167, 1931 La. LEXIS 1845, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-commerce-trust-co-v-brown-cotton-oil-co-la-1931.