Bean v. Mississippi Union Bank

5 Rob. 333
CourtSupreme Court of Louisiana
DecidedJuly 15, 1843
StatusPublished
Cited by1 cases

This text of 5 Rob. 333 (Bean v. Mississippi Union Bank) 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
Bean v. Mississippi Union Bank, 5 Rob. 333 (La. 1843).

Opinion

Garland, J.

The plaintiffs sue on a number of the post notes of the Union Bank, bearing interest on their face at the rate of five per centum per annum, and they further claim fifteen per cent, per annum, as the damages imposed by the charter of the Bank, for refusing to redeem their notes in specie when presented, which refusal is shown by an endorsement on each note, made by the officers of the Bank, at the time of presentment. It is further alleged, that N. & J. Dick & Co. are indebted to the Bank in a large sum ; and they are cited as garnishees, and interrogated as to their indebtedness. A citation was served on them on the 14th of January, 1842. On the 21st of the same month, they answered, denying that they were indebted to the Bank in any sum. The verity of their answers has been traversed by the plaintiffs, who undertake to prove their indebtedness.

It is shown by the testimony, that, in the month of May, 1839, two persons of the name of Denson, with one Rawlings, drew two drafts, or bills of exchange on the garnishees, payable nine months after date, for $5000 each, in favor of H. R. W. Hill & Co., in which firm Dick & Co. were partners. In the same month, one John Hunn and others, also drew a draft on said garnishees, for $1100, payable eight months after date. These drafts were accepted by the. garnishees, discounted by the Bank for the benefit of the drawers or endorsers, and at maturity protested for nonpayment. After the drafts of the Densons were protested, they went to the Cashier, or some other officer of the Bank, and made an arrangement, whereby about one-fourth of their amount was to be paid, and a renewal to be made for the balance, payable ata future period. This arrangement was never sanctioned by the Directors, nor was the full amount proposed to be paid, actually paid previous to this attachment. The arrangement, consequently, was never consummated, and the drafts were by the Bank put into the hands of their attorney, to institute suits against the drawers, which was done to the knowledge of Hill, one of the defendants, although it does not appear that the suits were ever prosecuted to judgment. The Bank does not appear to have released the garnishees, in any manner, previous to the commencement of this suit, although there is some reason to believe that [335]*335they supposed themselves discharged, as to these two drafts, in consequence of a supposed payment and renewal made by the drawers; but, in fact, neither the drawers, endorsers, acceptors, nor the Bank had changed positions, from the time of the proposed arrangement in 1840, up to the time when this suit was commenced. In November, 1842, nearly teh months after this attachment, the Densons, who were the drawers of the drafts, went to the Bank in Mississippi, made a further payment on account of them, and gave their note or notes, payable at a future period, for the balance, in which note or notes the garnishees are bound. This arrangement was made after all the parties knew of the attachment. Hill was in Jackson, where the Bank was located, when the arrangement was made, and no doubt knew that it was going on, although he told the officers of the Bank, that he would have nothing to do with it.

As to the draft drawn by Hunn, neither the Bank, the drawer, nor the garnishees did any thing with it, (so far as the record shows,) until the 25th of January, 1842, when the latter paid it to the Bank in Jackson, being four days subsequent to the denial of indebtedness being filed.

Upon these facts, and some others which will be noticed in connection with the different points in the case, a judgment of nonsuit was rendered, and the plaintiffs have appealed.

The answer of the attorney of the Bank is a general denial of all the allegations in the petition; and, as between it and the plaintiffs, it is*sufficient to say, that they are clearly entitled to a judgment, if it shall appear, that the garnishees are indebted, so that the attachment shall have something to rest on. The real contest is between the plaintiff and the garnishees. The latter, at first, denied that the plaintiffs were the owners of the notes sued on, but that-fact appearing satisfactorily, they now contest the right to recover of them, on the ground of the misconduct of the attorney of the Bank in Mississippi, and the fact of his being largely interested in the suit. It appears, that the plaintiffs are the holders of a large amount of Union Bank notes, which as brokers, they had purchased at a discount of about seventy per cent. One C. R. Clifton, who was the attorney of the Bank, and had in his hands the two drafts of the Densons, for the purpose of [336]*336suing ihe drawers, and collecting ihe amount, gave information to the plaintiffs, or their attorneys, of the indebtedness of the garnishees on them, and it was agreed, in consequence of the said Clifton’s information, and of his being at the expense of prosecuting this suit, that he should have for his share, in the event of recovery, one-half of what may be made over the sum of thirty per cent, which the plaintiffs are first to receive. This agreement, it is contended, ought to prevent a recovery; but we are unable to see any tenable grounds upon which we can base such an opinion. It may be that the conduct of the attorney is highly exceptionable ; but he is not ihe agent of the garnishees. The Bank does not complain of his conduct; and, if the plaintiffs choosé to give him a portion of their demand for his information and services, we suppose they have a right, to do so. The misconduct and interest of the attorney in Mississippi, cannot prevent the plaintiffs from recovering whatever the garnishees may justly owe the Bank; their liability is not increased, nor lessened by his misconduct. The plaintiffs have a sufficient interest in the notes to maintain an action on them, and might, if they thought proper, give away the whole amount when recovered.

It is contended by the counsel for the garnishees, that their indebtedness cannot be attached, as the bills of exchange, on which they are liable, are not in the State, and our attachment laws never contemplated the seizure of such rights. We cannot give our assent to this doctrine. If it be true, those laws would, in many cases, be inoperative. It is upon the debtors of non-residents, that the attachment laws are specially to operate; and if it were necessary to seize the evidence of the debt, there would be very few cases in which an attachment would lie. There is, in this respect, a wide difference between an attachment, and a seizure under execution. An indebtedness to a non-resident by a resident, Whether by note, acceptance of a bill, endorsement, or other mode, may be brought under the operation of our attachment laws, by garnishment, at the instance of a creditor of the non-resident creditor, and no serious evil can result from it, as a judgment against, and payment by the garnishee, will protect him from any demand on the part of his non-resident creditor.

The counsel for the garnishees further contends, that the [337]*337attaching creditor has no more right against the garnishees than the Bank has ; and, that as the Bank had, in 1840, agreed with the Densons to renew the bills and release them, they are discharged. That the plaintiffs cannot recover more than the Bank could, at the date of the attachment, is very clear. If, therefore, on the 14th of January, 1842, the Bank could not have recovered on the acceptances of the garnishees, the plaintiffs cannot. But what is there to prevent such recovery ? The counsel answers — the agreement with the Densons.

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Bluebook (online)
5 Rob. 333, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bean-v-mississippi-union-bank-la-1843.