Beste v. His Creditors

14 La. Ann. 516
CourtSupreme Court of Louisiana
DecidedJune 15, 1859
StatusPublished

This text of 14 La. Ann. 516 (Beste v. His Creditors) 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
Beste v. His Creditors, 14 La. Ann. 516 (La. 1859).

Opinion

Cole, J.

On the 24th February, 1858, William Beste, of New Orleans, filed in the Fifth District Court of New Orleans, his petition for a cession of his property to his creditors, and a meeting of the creditors -was ordered, to take place on the 31st March following.

On the 26th February, 1858, G. M. Lcening was appointed provisional syndic. On the 31st March, the meeting of creditors was held, and Joseph Peynoodt was appointed syndic.

On the 10th April, 1858, Joseph Peynoodt, not in the capacity of syndic but as a creditor, and also some other creditors filed their petition of opposition to the demand of Peste to be allowed the benefit of the law of this State in favor of insolvent debtors, and charged him with fraud.

Peste filed this among other exceptions, “ because on the face of the petition no legal cause of action is set forth in said petition against him.”

The District Judge being of opinion that the allegations were not of such a nature as to constitute fraud, sustained his exception and dismissed the opposition. [517]*517Opponents have appealed and rely upon sections 19, 20 and 21 of tho Act of 1855, relative to the voluntary surrender of property and mode of proceeding. Sess. Acts 1855, p. 435.

The first ground alleged by opponents to prove the fraudulent action of Beste in his insolvent proceedings is, “ that before making a cession of his property to his creditors, he was accused by his partner, Grima, of knowingly and fraudulently attempting to sell, at public auction, without notice thereof to his partner, eleven pianos, which he represented as coming from the manufacture of Pleyel. when ho knew that they did not; and was only prevented therefrom by the suit for a settlement of partnership, instituted against him before the Second District Court, by his partner Felix Grima, Jr., in which suit a writ of sequestration was obtained, and the piauos were sequestered by the Sheriff in tho hands of Beste & Laming, a commei'cial firm of New Orleans, composed of Edward Beste cD G. M. Laming, and in -which the said Wm. Beste, the insolvent, is the chief clerk and manager of all the affairs of said firm.

So far there is no averment of fraud which is covered by the statute. This charge consists of an accusation by Grima, that Wm. Beste attempted to commit a fraud anterior to his cession, but was prevented by tho vigilance of his partner, who caused the pianos to be sequestered.

Opponents further alledge, “ that in the schedule filed in court by the said Wm. Beste, he has omitted to mention said pianos and to surrender them to his creditors, thereby concealing said property with the intention to keep it from them.”

Section 19th of the Act of 1855, Sess. Acts, p. 435, declares that all persons shall be considered as guilty of fraud, who shall have concealed any of their properly, with an intention to keep it from their creditors.

The insolvent cannot be said to have concealed the pianos, for at the demand of his partner they were sequestered and were placed in the custody of the Sheriff before his cession.

The omission to put these pianos on his schedule cannot be said to be covered by section 20 of said Act, which provides that every insolvent debtor shall also be considered as guilty of fraud, if he shall have knowingly omitted to declare any of his property, rights or claims in his schedule.

This charge does not even aver that the pianos belonged to the insolvent or the firm of which he was a member, but leaves this essential point to be deduced from the general allegations of the petition.

As these pianos were sequestered by Grima, the partner of the insolvent, this induces the impression that Grima must have considered himself to have had a claim, or privilege upon the same, or a title thereto.

Opponents do not alledge that Beste hiowinghj omitted, but only that he omitted ; the averment is not therefore consonant with the requirements of the statute, and is essentially defective. Even if the averment had been agreeably to the law, Beste could not be deemed to have omitted the inscription of the pianos on his schedule with any fraudulent intent, for it was his partner, one of the present opponents, who had caused them to be sequestered, and knew whether they were the property of Beste or not. The object of the law in punishing the intentional omission of the insolvent to put certain property on his schedule is to prevent its concealment from the creditors. But how could this omission conceal the pianos from the creditors, when one of them had sequestered them by legal process, and they were in the hands of the Sheriff or his appointed guardians.

The second charge is, that the insolvent connived with the house of Beste <£- [518]*518Laming in order to conceal or cover the pianos so that his vendors or creditors cannot render the same liable for their claims, and pretends to have sold some of them to Beste <& Laming, which he had no right to do after the sequestration above mentioned, and even then the said Wm. Beste fraudulently concealed from his creditors the proceeds of sale of said pianos.”

The intended gravamen of this charge is by no means clearly indicated.

The 24th section of the Act of 1855, p. 436, provides very severe penalties against the insolvent debtor, who has been declared by the jury, to have been guilty of fraud; one of these penalties is imprisonment for a term not exceeding-three years. The averments constituting the fraud ought therefore to be specific, and clearly enunciated, so that the accused may know what particular charges he is obliged to answer.

The second charge contains two contradictory averments, one is that the insol-v< nt conniving with a certain firm pretends to have sold some of them to this house ; the other averment is that he fraudulently concealed the proceeds.

If the insolvent did not sell but only pretended to do so, then there could be no proceeds to be concealed.

Besides, this charge does not specify whether Beste was in insolvent circumstances at the time he pretended to have sold some of these pianos.

The first charge avers that Beste attempted to sell them at public auction, but was prevented by the sequestration; the second charge declares that after the sequestration he pretends to have sold them.

The second charge does not affirm in what manner the insolvent connived with Beste & Leaning, unless it be that he pretends to have sold some of them to that house. It does not aver that he did sell any of the piauos to them.

This charge is evidently too indefinite. The third ground of the proof of fraud is, “ that the said Wm. Beste has collected monies from sundry debtors of the firm of Beste <& Grima, without accounting for the same on his schedule.

The averment is also too indefinite. It does not aver whether these monies were collected a month or years before Beste became insolvent. It does not specify the names of any of the debtors, so as to enable the insolvent to contradict the charge.

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Bluebook (online)
14 La. Ann. 516, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beste-v-his-creditors-la-1859.