Brock v. Black, Rogers & Co.

10 So. 2d 790, 201 La. 1017, 1942 La. LEXIS 1318
CourtSupreme Court of Louisiana
DecidedNovember 4, 1942
DocketNo. 35975.
StatusPublished
Cited by6 cases

This text of 10 So. 2d 790 (Brock v. Black, Rogers & Co.) 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
Brock v. Black, Rogers & Co., 10 So. 2d 790, 201 La. 1017, 1942 La. LEXIS 1318 (La. 1942).

Opinion

PONDER, Justice.

The State Bank Commissioner, in charge of the Hibernia Bank and Trust Company in Liquidation, brought this suit against Black, Rogers & Company, Ltd., seeking to recover the sum of $3,435.58, attorneys’ fees and interest.

The Hibernia Bank and Trust Company entered into a written lease with the defendant on July 29, 1932, for the Rooms Nos. 1217 to 1226, inclusive, of the Hibernia Bank Building, for a period of twelve months, commencing October 1,, 1932, and ending September 30, 1933, at a monthly rental of $601.50 to be paid monthly on the first day of October, 1932, and on the first day of each and every *1019 succeeding month thereafter. On May 20, 1933, the Hibernia Bank & Trust Company was taken over by the State Bank Commissioner for liquidation. At the time the Bank was taken over for liquidation, the defendant had not paid the rent for the months of February, March, April and May, 1933, amounting to $2,406. After the bank was taken, over for liquidation, the defendant continued to occupy the leased premises during the months of June, July, August and September, 1933, and has not to this time paid the rent for those months, amounting to $2,406 less a credit of $5 subsequently paid on the rent. On the same day that the bank was placed in liquidation, the liquidator declared a dividend of 43% to all depositors and creditors of the bank. The defendant was paid $16,307.97, representing 43% of its deposits in the bank.

It appears that there was some controversy between the liquidator of the bank and the defendant as to whether or not the defendant was entitled to an offset against its deposits for the amount of $2,406, representing the amount of rent due for the months of February, March, April and May, 1933, which became due prior to the time the bank was placed in liquidation. It also appears that there was some controversy as to whether or not the defendant would be entitled to an offset for the rent for the months of June, July, August and September, 1933, which became due after the bank was placed in liquidation.

When the defendant, on May 20, 1933, was paid the $16,307.97, representing a dividend of 43% of its total deposits in the bank, the offset or compensation for the rent due prior to the time the bank was placed in liquidation and subsequent thereto was not considered in figuring the dividend.

On May 29, 1936, the defendant wrote two letters to the liquidator of the bank as follows:

“Referring to the controversy as to the rent claimed to be due by the undersigned for the months of June, July, August and September of 1933, we beg to enclose our check for $5 to apply equally on each of the four months, with the understanding, 'however, that this payment is made solely to interrupt prescription that would otherwise accrue, without prejudice to our rights to assert compensation for offset of said rent against our frozen' deposits.
“In other words, payment is made solely to interrupt prescription, and not as an acknowledgment of liability. Kindly confirm.
“Very truly yours,
“Black, Rogers & Co., Ltd.
“(Sgd.) Chas. H. Black
“President”
“In reference to the controversy regarding the payment of our rent for the months of February, March, April and May 1933, and your claim for restitution of 43% dividend over paid on May 20, 1933, please be advised we hereby formally waive our rights to assert any plea of prescription against any demand you may make for restitution of the 43% claimed to have been overpaid; and we further *1021 waive, renounce and abandon any prescription that may accrue on this rent claim, reserving all our rights in reference to our previous asserted claim for offset.
“Yours very truly,
“Black, Rogers & Co., Ltd.
“Chas. H. Black
“President”

On April 30, 1937, the liquidator of the bank wrote the following letter to the defendant:

“The Supreme Court of Louisiana by a decision rendered February 1,% 1937, in the matter entitled ‘J. S. Brock et al vs. Pan American Petroleum Corporation’ #34063, has denied the right to offset deposits against rents due subsequent to May 20, 1933, the date that the Hibernia Bank & Trust Company was placed in liquidation.
“You are indebted to the Hibernia Bank & Trust Co., .in liquidation, for rent due for the months of February, March, April, May, June, July, August and September 1933, at the rate of $601.50 per month.
“By the terms of your lease, you have agreed to pay 10% attorneys fees. However, if full settlement of this claim is amicably made prior to May 10, 1937, our Attorneys have agreed to waive their fee.
“In view of the above decision, no offset can be allowed for the months of June, July, August and September, 1933, since this became due subsequent to May 20, 1933. For the months of February, March, April and May, you will be. permitted an offset of same since this became due prior to May 20, 1933, but in order to do so, it will be necessary that you pay, in cash, the sum of $1,034.58, which is the amount necessary to reconstruct your balance of the date that this rent became due.
“For your convenience, we have attached hereto a statement showing
“(1) the amount due for the rent which became due subsequent to May 20, 1933, and
“(2) the amount which must be paid to reconstruct your account in order to effect an offset on the rent which became due prior to May 20, 1933.
“We ask that you give this matter your immediate attention and forward check to cover to Mr. R. F. Schwaner, Building Manager, Hibernia Bank Building.
“Yours,very truly
“Hibernia Bank & Trust Co.,
“In Liquidation.
«By: -
“Hibernia Bank Building
“April 30, 1937
“Black, Rogers & Co.,
“Rent due — June thru Sept 1933,
@ $601.50 ................. $2,406.00
5/30/36 less payment made to prevent prescription........ 5.00
$2,401.00
Amount necessary to reconstruct your account........ $1,034.58
$3,435.58”

On December 15, 1937, the present suit was instituted. In this suit, the plaintiff is seeking to recover from the defendant $1,034.58, which it is claimed the defendant *1023 was paid through error.

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Cite This Page — Counsel Stack

Bluebook (online)
10 So. 2d 790, 201 La. 1017, 1942 La. LEXIS 1318, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brock-v-black-rogers-co-la-1942.