Bank of Lecompte v. Lecompte Cotton Oil Co.

51 So. 1010, 125 La. 844, 1910 La. LEXIS 561, 125 La. 853
CourtSupreme Court of Louisiana
DecidedFebruary 28, 1910
DocketNo. 17,852
StatusPublished
Cited by12 cases

This text of 51 So. 1010 (Bank of Lecompte v. Lecompte 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 Lecompte v. Lecompte Cotton Oil Co., 51 So. 1010, 125 La. 844, 1910 La. LEXIS 561, 125 La. 853 (La. 1910).

Opinion

Statement of the Case.

BREAUX, C. J.

At the instance of plaintiff bank, properties of defendant were seized, consisting of a lot of ground, together with the cotton oil plant thereon.

Waters & Albert, creditors, brought suit, and obtained a writ of attachment on the 15th day of February, 1909. Their claim amounts to $lo4.10, with 8 per cent, interest from 1908, and attorney’s fee.

The sheriff attached the machinery and all the appliances that the bank had caused to be seized under its writ of seizure.

The day following Terregano, Stathem & Lewis, insurance agents, whose claim amounts to $360, plus interest at 8 per cent, from May 20, 1909, less credit of $210 paid February 8, 1909, and costs, also attached and seized the same property.

Peter H. Hammond had the property seized under a writ of fieri facias to recover the sum of $1,500, less $50, with 5 per cent, interest from February, 1909. He had the property advertised for sale under his fieri facias, and the plaintiff bank also had the property advertised for sale under its writ of seizure and sale.

These creditors entered intp an agreement with the bank and the other creditors, in which it was provided that if the property 'seized by Hammond, together with the other property seized in the foreclosure proceeding, should be sold in execution of the mortgage, then the property seized by Hammond and others should bring the sum of $1,500, which amount should remain in the hands of the sheriff for the purpose of litigation between the mortgage creditor, Hammond, and the other creditors, to determine which should be entitled to the fund.

After this agreement had been made, the creditors, Hammond, the insurance company (represented by Terregano and others), and Waters & Albert, each filed interventions and third oppositions, claiming the respective amounts due them from the proceeds of the sale of the property, as they alleged that the property seized by the bank was not subject to the mortgage of the bank and Mrs. Hardy, its subrogee (on one of the notes she holds).

On these third oppositions the court ordered separate appraisements of the property seized, and directed the sheriff to retain an amount sufficient to meet the claims of third opponents. This was not done. There was no separate appraisement and sale made. Both were waived by the agreement to which we have already referred.

The property seized consisted of machinery, the whole outfit of a cotton oil plant, and appliances, all necessary in operating such a plant. Some of the property is not designated by name in the act of mortgage, held by the plaintiff bank in part and in part by Mrs. Hardy.

[847]*847The only witness who testified in the case, Peter W. Hammond, stated that the boilers were about the only property that was attached to the soil. He evidently was not inclined to convey the idea that the engine formed a part of the plant, although it sets on walls and is made fast with cement.- His testimony is that other property was not attached to the realty. 'Some of it was placed within the building temporarily, and other property could be easily removed, he said, in substance, without having to disconnect it from the building or any other part of the plant. There is in addition an agreed statement:

“It was a going concern in 1908, and all the machinery seized and attached was in the Lecompte Cotton Oil Company’s building, and that said machinery was placed in the said building by its owners for the purpose of manufacturing oil and other cotton seed products.”

The Bank of Lecompte and Mrs. Hardy are concurrent creditors. Their rights are passed upon in the judgment of the district court.

There is a long list of property which was seized, which the opponents contend was not included in the mortgage, as it was not property which became part of the realty by destination.

As to the opponents, the district court rendered judgment in their favor for the amount of their respective claims.

The bank’s contention is that, as all the property on the ground was a part of the plant, it became a part of the realty by destination, and subject to mortgage.

This is also the contention of Mrs. Hardy, the holder of one of the set of notes held by the bank.

The theory of the other creditors, who had the property seized after the date of the bank’s seizure, is that the machinery, appliances, and other apparatus were movables, and did not become a part of the realty by destination.

Discussion and Judgment.

We will begin by stating by reference to the Code:

Property immovable by destination is that placed by the owner for the improvement of his land. Code, art. 468.

Such as “sugar refineries and other manufactories, and such movables as cannot be removed without breaking the building to which they are attached.”

“The accessories are considered as immovables.” Code, art. 3289.

The contention of the opponents is that the law from which the foregoing was excerpted was repealed, by Act No. 187 of 1904, entitled “An act to amend and re-enact section 1 of Act 30 entitled,” etc. Although Act No. 187 of 1904 is in very great part a reproduction of Act No. 30 of 1904, it does not purport to repeal the original law. But of this later.

That act provides how movables may be immobilized and made to become part of any manufacturing and industrial establishment.

The act sets up that the owner’s declaration must be filed in the office of the register of conveyances or in the office of the recorder of mortgages in the parish where the immovable lies. .According to the provisions of the- act it is only necessary in making this declaration to refer to the machinery and appliances immobilized in general terms. That is the textual provision of the act.

The next section of said act contains details of no moment here.

The repealing clause of the act repeals all laws in conflict with, or contrary to, or inconsistent with, the provisions of this act.

The contention of the appellees is that; under this statute the machinery, appliances, tools, and apparatus of all manufacturing and industrial establishments are movables, unless the declaration ' before mentioned is recorded.

We will here state there are two catego[849]*849ries of immovables by destination — property attached to the realty, and the other forming part of the realty for its exploitation.

Our plan of mortgages was borrowed from the Code Napoléon, and for that reason the following has application:

We insert the excerpt literally, taken from Hue, vol. 13, p. 216:

“C’est a dire, ayant été attaches au fonds á pernétuelle demeure par le propriétaire; * * * les autres [that is, property not so attached, but forming part of the property] et ce sont les plus nombreux, il suffit que le propriétaire du fonds les y ait placés pour le service de 1’ exploitation de ce fonds.”

This commentator mentions that, in determining whether or not movable has become immovable by destination, the intention of the owner is to be considered.

At first in the history of our jurisprudence the decisions on this subject were concerned with farms and plantations.

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Bluebook (online)
51 So. 1010, 125 La. 844, 1910 La. LEXIS 561, 125 La. 853, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-lecompte-v-lecompte-cotton-oil-co-la-1910.