Blappert v. Succession of Welsch

187 So. 281, 192 La. 173, 1939 La. LEXIS 1069
Supreme Court of Louisiana·Decided February 6, 1939·No. No. 35043.·Published·Cited by 6 cases

Opinion

PONDER, Justice.

On July 22, 1925 Leopold Welsch executed a promissory note in favor of Mrs. Rosalie M. Loeb in the sum of $10,000, payable one year from date and calling for interest at the rate of 6%% per annum. *175 This note was secured by a mortgage on a certain piece, of property in square 30 facing Chartres St. in the City of New Orleans. On August 6, 1928 Leopold Welsch and Elliot Finkelstein executed a promissory note for the sum of $5,000 to Frank B. Twomey payable one year from date and calling for interest at the rate of 7% per annum until paid. This note was secured by a mortgage on property situated on South Claiborne Avenue. On January 2, 1931 Elliot Finkelstein sold his interest in this property to Leopold Welsch. In the deed transferring the property, Leopold Welsch assumed the payment of the mortgage note executed by himself and Elliot Finkelstein. Philip A. Blappert became the holder and owner in due course and is the present owner and holder of the note executed by Leopold Welsch and Elliot Finkelstein for the sum of $5,000, secured by the mortgage on the South Claiborne Avenue property. Payments have been made on this note reducing the note to $1,700. All interest has been paid on the note up to August 10, 1937 at which time Leopold Welsch acknowledged the debt and waived prescription. On September 30, 1932 Leopold Welsch executed a promissory note for $10,776 to Mrs. Rosalie M. Loeb payable in installments of one, two, three, four and five years from date, calling for interest at the rate of 6%% per annum. This note was secured by a mortgage on the Chartres Street property and another piece of property.

On October 7, 1937 Leopold Welsch died intestate in the City of New Orleans and his succession was duly opened. On February 22, 1938 Philip A. Blappert foreclosed on the property on South Claiborne Avenue by executory process. The administrator, Jacob J. Welsch, of the succession of Leopold Welsch filed an intervention and third opposition setting forth that the succession of Leopold Welsch was insolvent; that there were certain privileged debts, funeral debts, debts of last illness and administrative debts', that had to be paid; and that such debts had privilege and priority to the proceeds of the foreclosure over the mortgage creditor. Lee H. Gamsu filed an intervention and third opposition alleging that he was the owner and holder in due course of the promissory note executed to Mrs. Loeb and secured by the mortgage of date, Septembei 30, 1932 on the Chartres Street property and another piece of property; alleging that he is a creditor of the succession of Leopold Welsch; that he instituted foreclosure proceedings on his mortgage which did not at the sale of the property bring sufficient to satisfy his claim; that the administrator of the succession of Leopold Welsch intervened and set up privileged claims which the administrator claimed were entitled to preference; that in event the claims of the administrator are privileged over the mortgage claims that they should be charged against the proceeds of the mortgage foreclosed on by Philip A. Blappert before any charge is made against the proceeds of the foreclosure sale in.the foreclosure by Gamsu on his mortgage; that the mortgage executed by Leopold Welsch to Mrs. Loeb of date July 22, 1925 having been in arrears and long past due and increasing in amount, due to the accumulation of taxes and interests, in or *177 der to avoid foreclosure and extend the same Leopold Welsch agreed to secure the mortgage with an additional piece of real estate, to accomplish which the old note was cancelled and a new one executed on September 30, 1932 in the amount of $10,776 to Include accrued interest and taxes; that accordingly intervenor’s mortgage was in truth and in fact executed on July 22, 1925, whereas the mortgage of Blappert was executed on August 6, 1928; and that copies of the acts of mortgages will be produced and filed on the trial hereof. The intervenor prayed that the privileged debts of the succession be charged first to the proceeds of the mortgage held by Philip A. Blappert, until such privileges are satisfied or such proceeds exhausted before the privileged debts of the succession are charged to the proceeds of the foreclosure of intervenor’s mortgage. It appears that copies of all the mortgages in dispute herein were filed in the record. The plaintiff interposed an exception of no cause or right of action to the intervention and third opposition of L. H. Gamsu. The court maintained the exception of no cause or right of action and the intervenor has appealed.

In their briefs and in their argument before this Court the counsel for both of the mortgage creditors admit the priority of the succession debts but each contends that his mortgage is the most ancient and that the privileged succession debts should be paid out of the proceeds of the mortgage of the other.

It is admitted that the payment of these privileged succession debts are to be borne by the creditor whose mortgage is least ancient under the provisions of Article 3269, R.C.C.

The record discloses that the mortgage in favor of Mrs. Loeb of July 22, 1925 was given only on the Chartres St. property while the mortgage given Mrs. Loeb of date September 30, 1932 was given on the Chartres Street property and another piece of property. In the mortgage of September 30, 1932 it was recited that the mortgage 'certificate showed that there was a mortgage on the Chartres Street property in favor of Mrs. Loeb of date July 22, 1925 and that such mortgage was handed to the notary for cancellation forthwith. Within a few days thereafter, the notary in compliance with the stipulation of the parties secured the cancellation and erasure of the mortgage of date July 22, 1925 from the mortgage records.

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

Blappert v. Succession of Welsch, 187 So. 281, 192 La. 173, 1939 La. LEXIS 1069 (La. 1939).

187 So. 281 (Blappert v. Succession of Welsch) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Agricredit Acceptance Co. v. Singleton
767 So. 2d 137 (Louisiana Court of Appeal, 2000)
Thrift Funds Canal, Inc. v. Foy
260 So. 2d 628 (Supreme Court of Louisiana, 1972)
Lewis v. Johnson
165 So. 2d 627 (Louisiana Court of Appeal, 1964)
Li Rocchi v. Keen
134 So. 2d 893 (Supreme Court of Louisiana, 1961)