Bates-Crumley Chevrolet Co. v. Brown

141 So. 436
CourtLouisiana Court of Appeal
DecidedMay 4, 1932
DocketNo. 4224
StatusPublished
Cited by4 cases

This text of 141 So. 436 (Bates-Crumley Chevrolet Co. v. Brown) 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
Bates-Crumley Chevrolet Co. v. Brown, 141 So. 436 (La. Ct. App. 1932).

Opinion

CULPEPPER., J.

Plaintiff sold and delivered to defendants an automobile for tlie price of $501, on terms recited in the written act of sale as follows: $200 on or before delivery, leaving a deferred balance of $301, for which purchasers executed one note. To secure the payment of the note the seller reserved the vendor’s lien, and the purchasers granted a chattel mortgage upon the automobile.

While the act does not so disclose, the pleadings and testimony in this case show that the purchasers, defendants herein, instead of paying the $200 in cash to cover the recited cash part of the consideration, delivered, without their indorsement, to, and which was taken and accepted by, the plaintiff, vendor, a certain promissory note which had been executed by one S-. J. Fair, made payable to M. D. Brown, father of defendants, in the sum of $200 with interest and attorney’s fees thereon, and which M. D, Brown still held at the time. The note, although long past due, had not been paid. M. D. Brown, it appears, in order to accommodate the defendants, who were his sons, indorsed the note in blank, and subsequently turned it over to plaintiff, which was accepted in lieu of the cash payment called for in the act of sale. Defendants did not indorse the note, nor were they required or asked to do so.

After fruitless efforts by plaintiff to collect anything on this note, either from the maker or payee, this suit was filed seeking judgment against these defendants in solido for the amount called for by the note in principal, interest, and attorney’s fees. The note is dated October 28, 1929, matured on the day of its date, and bears 8 per cent, interest from maturity, and 10 per cent, additional as attorney’s fees in the event it should be placed in the hands of an attorney for collection.

Plaintiff alleged it has a vendor’s lien upon the automobile to secure the payment of the note, caused the automobile to be sequestered, and prayed for recognition and enforcement of its alleged lien.

Defendants filed an exception of no right or cause of action and motion to dissolve the writ with damages and attorney’s fees. Two supplemental and amended petitions were filed, to which objections were made. Additional exceptions were made by defendants. The motion and exceptions apparently being referred to the merits by the court, defendants, reserving their rights under the exceptions, answered, admitting the facts substantially as above set forth, but denied personal liability upon the note or for any sum whatever. They also denied plaintiff’s alleged lien upon the car. They prayed that plaintiff’s demands be rejected, with the dissolution of the writ, and for damages previously prayed for in the motion.

There wa-s judgment for plaintiff against defendants in solido in the sum of $200 with legal interest from judicial demand; recognized plaintiff’s alleged vendor’s lien upon the automobile, with maintenance of the writ; and defendants appealed.

There appears to be very little dispute as to the facts, which are substantially as above stated.

We do not think these defendants are liable personally. Plaintiff appears to rest its claim, not upon the note, but upon the fact that the written act of sale stipulated for the payment of a sum of money which was not done. It is contended that the case is governed by the stipulations .of article 2131 of the Civil Code, which provides that payment means the delivery of a sum of money when such is called for, or the performance of that which the parties respectively undertook. It is argued that there was no undertaking by the parties in this case to do anything, but that defendants promised to pay $200 which meant money. It is contended that the fact that defendants gave, and the plaintiff accepted, Such a note as is shown here, in the place of the money, did not extinguish their obligation to give that which the contract called for, if the thing given turned out to be valueless; hence defendants are still bound to perform by giving the money itself. Plaintiff also contends that the only method applicable to this case by which the obligation could have been extinguished, if at all. was by novation, in which case it would have to be shown that defendants were expressly discharged from the obligation, which has not been shown. Article 2190 of the Code, it is urged, provides that novation cannot be presumed ; that the intention to make it must clearly result from the terms of the agreement, or by a full discharge of the original debt; and that article 2192 provides that it does not take place unless the creditor has expressly declared that he intends to discharge his debtor who has made the delegation.

The point here raised by plaintiff’s learned counsel, that the creditor must expressly release the debtor in order that novation can be said to take place, was discussed at length by the Supreme Court in the early ease of Barron v. How, 2 Mart. (N. S.) 144. In that case the facts were that plaintiff sold a bill of merchandise on open account to the partnership of which defendant was a member. Statement was made out in the name of the partnership, invoices sent to David Talcott, another member of the firm, who executed and sent to plaintiff his personal notes to cover. Upon receipt of the notes, plaintiff accepted same, receipted the account by writing at the bottom the words, “Received payment by David Talcott’s notes at three and .four months.” Plaintiff contended that this did not expressly discharge the debtor, and [438]*438that unless the creditor has expressly declared that he intends to discharge his debtor who has made the obligation, there is no no-vation as provided by the Code; that no such express declaration had been shown, hence the original contract remains in force. The court in passing upon the question used the following language:

“Whether the words, used in this receipt, are such as clearly mark the intention, of the creditor to consider the old debt extinguished, is the main question here. The answer to this query is found in one to which there can be but one reply given. That is, whether payment of a debt does not extinguish it. Here it is not pretended, that a certain thing was not given, and received in payment — and if it were, we are wholly at a loss to perceive~how the olu debt could still bo considered as in existence.

“The argument for the plaintiffs, seemed to rest principally on a position, assumed by counsel, tljat when an obligation is contracted payable in money, nothing else can be a payment of it — and that when anything else is accepted, the obligation is suspended, but not extinguished, until that which has been '■eceived is converted into money. To this doctrine we can by no means assent. The most natural way of extinguishing every obligation is, certainly, to fulfill one’s promise in giving the very thing due, and this is, perhaps the proper sense of the word. * * * But it is clear, that in the general acceptation of the word, it means every way by which the creditor is satisfied, or ought to be, and the debtor liberated, and it is equally clear, and of daily occurrence, that one thing may be given in place of another, in payment, and that if accepted, the payment is good, and the obligation extinguished.”

By way of illustration the court quotes from Toullier, the following:

“If, says he, I owe you a sum of money, and have given for the security of the debt a mortgage, should you consent to receive, in payment, a tract of land, from the moment the sale is complete, the first obligation, with all its accessions, is extinct, although you should be afterwards evicted of the property sold.”

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Bluebook (online)
141 So. 436, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bates-crumley-chevrolet-co-v-brown-lactapp-1932.