Borgstede v. Lewis

6 La. Ann. 322
CourtSupreme Court of Louisiana
DecidedApril 15, 1851
StatusPublished

This text of 6 La. Ann. 322 (Borgstede v. Lewis) 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
Borgstede v. Lewis, 6 La. Ann. 322 (La. 1851).

Opinions

The judgment of the court was pronounced by

Slidell, J.

Under writs of execution in the case of Borgstede Go. v. Steamer Duroc, and other cases, that vessel was seized by the sheriff, John L. Lewis, and was advertised, pursuant to the agreement of parties, to be sold at sheriff’s sale on the 22d April, 1848, at the following terms: one-half cash and the balance of price at eight months, the purchaser to give a note endorsed to the satisfaction of the sheriff. The sale took place on that day; and on the boat being knocked down to Burgess 4' Co., the deputy sheriff asked them who was to be their endorser; and they offering the name of Bindley and Russell, the deputy, being still upon the stand, applied for information to C. M. Randall, Esq., an attorney at law, who was in attendance at the sale, and who represented several of the creditors of the vessel interested in the fund to be produced by the sale. What occurred is thus stated by the deputy, on his examination at the trial of the present cause : “ In making adjudications on credit, he is in the habit of ascertaining from the plaintiffs or parties interested the standing of the party offered as security; and in this case, Charles M. Randall, Esq., who witness knew was interested for some of the parties interested, and who was present at the sale, being asked by witness if he knew Bindley and Russell, and if they "were good, said he did, and that Bindley and Russell were perfectly good, and there could be no objections to them. Witness knows that the acquaintance and practice of Charles M. Randall among the western produce merchants in the Second Municipality was very extensive ; that the extensive acqaintance of Randall with these western produce merchants was the reason why witness applied to him for information. He has had occasion in other cases to apply to Charles M. Randall as to the character of other houses, and he has always found his opinion to be correct. Randall did not represent Borgstede 4* Co., but some of the intervenors.” Upon cross-examination by the plaintiffs, the witness stated that Bindley and Russell were accepted by him upon the stand, upon the inquiries made of Randall and without further inquiry ; that he was still deputy sheriff, and his business is nearly altogether in the office. Upon reexamination by the plaintiff, he testified that no objection was ever made to Bindley and Russell as security until the note was protested.

[323]*323On the 28th April, 1848, the sheriff made return of the writ, stating the amount of cash received, and that the note taken for the residue was endorsed by Lindley and Russell. On the same day, Borgstede Sf Co. obtained an order of court assigning a day for the hearing of the various claimants, and the judicial distribution of the fund. On the 26th of May a decree of distribution was rendered.

Upon the maturity of the note, which remained in the sheriff’s hands, it was protested; he obtained judgment and execution against the makers and endorsers, upon which nothing could be made. Thereupon, the plaintiffs brought this suit against the sheriff, to make him liable for the amount of their interest in the note, alleging in their petition, “that Lindley and Russell were, at the time when they were thus accepted by the sheriff as endorsers, and for some time previous thereto, notoriously unable to meet their engagements and insolvent — all which facts with reasonable diligence were known to the defendant.” The cause was heard by the district judge, who after discussing the case in a written opinion, which gives us the benefit of his view of the evidence, rendered judgment for the defendant.”

In commenting upon the evidence, the district judge remarks as follows: “On the part of the plaintiffs, two witnesses, William P. Converse and Thomas R. Wolfe, have proved that Lindley and Russell were embarrassed and unable to meet their engagements previous to the 22d April, 1848. But one of these witnesses was the particular friend of Lindley and Russell, and the other was their legal adviser; and the knowledge of both on the subject was derived from confidential communications made to them by Lindley and Russell. And although Converse declares his belief that the insolvency of Lindley and Russell was generally known in March, 1848, yet this fact is contradicted by the evidence of Shaw and Thorpe, witnesses of the plaintiffs, the latter, Lindley and Russell’s book-keeper, and also by the evidence of Davis, Sloane, Burgess, Frost, Kennedy, and Creevy, witnesses of defendant; all of them merchants in the same line of business as Lindley and Russell, and their near neighbors. The whole evidence in the cause leaves the decided impression on my mind that the insolvency of Lindley and Russell, if they were in fact insolvent on the 22d April, 1848, was not notorious at that time; but on the contrary, was unknown to the commercial community at large.”

The district judge further observed that “the present plaintiffs, although they received a dividend out of the cash proceeds of the sale of the Duroc, and must have known who were the endorsers for the credit portion, do not appear to have complained until fully a year after the maturity and dishonor of the note; a fact of itself strongly adverse to the imputed notorious insolvency of Lindley and Russell.”

The above summary of the evidence, as far as it goes, seems to us substantially correct; and when we add to it the undisputed fact, that the standing of Lindley and Russell had been high previous to the spring of 1848 — the circumstance that their embarrassment, although known to a few intimate friends, had been covered up from the public by an agreement with the holder of a bill on which they were endorsers to waive protest; the fact that Stewart, a western produce merchant and their neighbor, loaned them money on the 20th April, ■and, as he testified, did not recollect having any apprehensions then of their solvency, otherwise he thought he would not have done so; and especially the information given to the deputy sheriff by Mr. Randall — we have no hesitation jn coming to the conclusion that the judgment cannot be disturbed. For the fair [324]*324result of the evidence is, that the sureties were apparently persons of responsibility ; and that the sheriff exercised, under the circumstances, a reasonable caution in receiving them.

As this subject of the responsibility of sheriffs is one of much importance, both to the public and to those officers, we have considered it proper to look with some care into the adjudged cases ; and a brief review of them will illustrate the correctness of the judgment which we now affirm.

Hindle v. Blades, 5 Taunton 225, was an action against the sheriff for not taking from a tenant, who replevied in case of a distress for rent, two' responsible sureties upon the bond. It appeared from the evidence, that one of the sureties, who were taken by the sheriff in October, 1812, was a bankrupt in 1810, and the other had been bankrupt in 1811. But both the sureties were in apparent credit in 1812.

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

Related

Rice v. Hosmer
12 Mass. 126 (Massachusetts Supreme Judicial Court, 1815)

Cite This Page — Counsel Stack

Bluebook (online)
6 La. Ann. 322, Counsel Stack Legal Research, https://law.counselstack.com/opinion/borgstede-v-lewis-la-1851.