Bourgeois v. Sazdoff

209 So. 2d 320
CourtLouisiana Court of Appeal
DecidedApril 8, 1968
Docket2963
StatusPublished
Cited by7 cases

This text of 209 So. 2d 320 (Bourgeois v. Sazdoff) 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
Bourgeois v. Sazdoff, 209 So. 2d 320 (La. Ct. App. 1968).

Opinion

209 So.2d 320 (1968)

Clyde V. BOURGEOIS, Jr.
v.
George J. SAZDOFF, a/k/a George J. Sazdoff, d/b/a George's Hardware and Sporting Goods.

No. 2963.

Court of Appeal of Louisiana, Fourth Circuit.

April 8, 1968.
Rehearing Denied May 6, 1968.

*321 Robert D. Edwards, Gretna, for plaintiff-appellee.

John M. Holahan, New Orleans, for defendant-appellant.

Before CHASEZ, BARNETTE and JOHNSON, JJ.

JOHNSON, Judge.

In the foreclosure of a chattel mortgage by executory process the public sale of the mortgaged property for the price of $4,000.00 did not pay the debt in full and plaintiff obtained a deficiency judgment for $23,611.00, with 6% interest and 15% attorney's fees, subject to a credit of $4,000.00. The deficiency judgment was rendered on June 16, 1967, by the Twenty-Fourth Judicial District Court against the defendant, the mortgagor. The defendant brought the issues to this court by a devolutive appeal.

In the foreclosure petition filed January 22, 1964, plaintiff alleged that the stock of merchandise and fixtures, (consisting of hardware, sporting goods, office appliances and fixtures all covered by the chattel mortgage), were perishable and the court ordered a quick sale without advertisement but with appraisement. The court order was dated January 23, 1964, and the sale was made by the sheriff on January 27, 1964.

Plaintiff's petition for a deficiency judgment, filed on July 10, 1964, alleges that the plaintiff is the holder and owner of a promissory note dated May 2, 1961, made by defendant in the original principal sum of $27,000.00, stipulating 6% interest and 15% attorney's fees; that the note and mortgage are attached to the petition for executory process filed on January 22, 1964; that in the foreclosure proceeding the property was appraised at $6,000.00 and sold to plaintiff for $4,000.00. On April 2, 1965, counsel for plaintiff filed an amended petition adding a new article alleging that the debt sued on arose as a result of a criminal act on the part of defendant by disposing of mortgaged property without remitting to plaintiff the price received to apply on the debt and by concealing mortgaged property without *322 a release from the mortgage, and, therefore, this debt is not dischargeable in bankruptcy.

On the same day, April 2, 1965, counsel for defendant filed an answer to plaintiff's original petition for a deficiency judgment denying all the allegations of the petition and alleging that the plaintiff unlawfully and illegally seized the mortgaged property and because of the illegal seizure and sale the defendant has been unable to pay the debt; that the property seized was not perishable in the sense of the law of this state and that the petitioner is barred from obtaining a deficiency judgment. On April 27, 1966, the defendant filed an amended answer alleging that the quick sale of the property as perishable "in globo," without advertisement and without inventory was illegal; that the "defendant" had appraised the property at $4,000.00, (this is evidently in error for the reason that before the sale the defendant appraised the property at $25,000.00 and the "so-called" appraisement of the plaintiff through his attorney was $4,000.00), and that the third appraiser (appointed by the sheriff because of the difference) signed an appraisal form but did not enter any amount as his appraisal. Defendant alleges as a further illegality that the property being in no way perishable, the sale as such was in violation of the deficiency judgment law and amounted to a "dation en paiement." It is further alleged that in any event, the debt is barred by the discharge of defendant in bankruptcy in the proceeding filed in the United States District Court on April 8, 1965, and the discharge granted on July 19, 1965.

On these issues, made by the petition as amended and the answer as amended and certain documents and proceedings referred to in each, testimony was heard in the trial of the case on May 27 and June 20, 1966, and March 6, 1967. Judgment was rendered on June 16, 1967, in favor of plaintiff and against the defendant as prayed for.

In the preamble of its judgment the court said, inter alia, that the court was convinced that the sale was valid and that this is a valid suit for a deficiency judgment; that the defendant is not discharged in bankruptcy of this debt because the debt was not listed in the bankruptcy schedule; that the plaintiff had no actual knowledge of the bankruptcy, and had no opportunity to file proof of his claim therein; that the defendant, with the intention of preventing plaintiff from obtaining the money due him, had sold merchandise contrary to his written agreement with plaintiff, thereby defrauding plaintiff, which the court felt made the debt nondischargeable in bankruptcy, and the court held that the plaintiff had proved his case by a preponderance of the evidence.

We find several irregularities in the foreclosure of the chattel mortgage and sale of the movable property of such a nature as to make this deficiency judgment invalid and it must be set aside. We think the most serious defects in the foreclosure proceeding is the sale of the property as perishable, without advertisement and under circumstances which amount to a sale without appraisement.

There are provisions of the law which make it proper for the court to order the immediate sale at public auction, without advertisement of property that because of its inherent qualities it is subject to decompose rapidly and to loss or deterioration pending compliance with the usual formalities. C.C.P. arts. 2333; 2503; 2724; 3513. But there is no evidence in this record to indicate that the stock of merchandise and fixtures, consisting entirely of hardware, sporting goods, air conditioners, cash register, Victor icebox, filing cabinet, desk and chairs, Howell scale, pipe machine, shelves and counters should be classed as perishable, and we are firmly convinced that such articles would not lose their value or usability in the two weeks it would require to advertise and sell them. In fact, on page 18 of the transcript of testimony of March 6, 1967, Mr. Edwards, attorney for plaintiff, throughout this proceeding, made this stipulation: "* * * that if it [the stock] *323 had remained in the building for 30 days, as it remained at the time of the sale, the deterioration would have been negligible." The petition for the foreclosure, filed by Mr. Edwards for plaintiff, made the allegation that the owner of the building would throw the property out of the building within 48 hours and the elements would destroy its use and value before the property could be advertised according to law, but there is not one word of evidence to support that allegation. In fact, the evidence shows beyond question that there never was any emergency or threat to expose the property to the outside elements.

When the order for the quick sale issued, the notice of seizure, with a detailed inventory attached, was served on the defendant on January 24, 1964. At the end of the inventory there appears the initials "C B" and "G J S" which indicates the approval by both plaintiff and defendant. That notice, addressed to and served on defendant, said at the very beginning: "TAKE NOTICE, That I have seized, and, in three days from the service hereof, shall proceed to advertise and sell, according to law, the following described property, to-wit:" In that notice the defendant was called upon to appoint an appraiser at the sheriff's office on the 27th day of January, 1964, at 9:30 o'clock a. m.

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Cite This Page — Counsel Stack

Bluebook (online)
209 So. 2d 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bourgeois-v-sazdoff-lactapp-1968.