Butto v. Central Finance Co.

73 So. 2d 44, 1954 La. App. LEXIS 782
CourtLouisiana Court of Appeal
DecidedJune 7, 1954
DocketNo. 20289
StatusPublished
Cited by3 cases

This text of 73 So. 2d 44 (Butto v. Central Finance Co.) 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
Butto v. Central Finance Co., 73 So. 2d 44, 1954 La. App. LEXIS 782 (La. Ct. App. 1954).

Opinion

JANVIER, Judge.

The plaintiff, Joseph P. Butto, while an unemancipated minor, purchased from Carroll O. Heimiller, one of the defendants, a Chevrolet automobile for $2,131.75, paying $500 cash and executing a chattel mortgage and note for $1,631.75. The note [45]*45provided for payment in twenty-three monthly installments, each in the sum of $62.25. The note was transferred by endorsement to the other defendant, Central Finance Company.

On October 12, 1951, Butto attained his majority. In the meantime he had taken the car to Philadelphia, Pennsylvania, where he left it in the custody of his father, since he himself was in service in the United States Coast Guard. In the early part of December, 1951, Butto returned to Philadelphia from Coast Guard Service in the United States. In the latter part of January, 1952, the Central Finance Company repossessed the car, there being an unpaid balance amounting to a little more than $400.

No complaint is made that the repossession of the car was done illegally or otherwise than in strict accordance with law.

On January 9, 1953, Butto brought this suit against Heimiller and Central Finance Company, praying for solidary judgment against them in the sum of $1,700, representing $1,600 which he paid on the purchase price of the car and $100 as the value of certain personal articles which he says were in the car when it was repossessed. In the alternative, he prayed for judgment for $1000, alleging that amount to represent the difference between the actual value of the car at the time at which it was repossessed and the balance which, at that time, was due on the mortgage note.

He alleges that he was a minor at the time of the purchase of the car and the execution of the chattel mortgage and note; that both the sale and the mortgage were unenforceable and voidable because of his minority, and he prays that the sale be rescinded and the mortgage and the note can-celled.

The defendants admitted the sale of the car and the execution of the mortgage and note. They averred that Butto, at the time of the purchase, declared that he was twenty-two years of age and that, after he reached the age of majority, he ratified the contract, and they further alleged that the contract under which the plaintiff purchased the car “was beneficial to plaintiff,” and consequently the sale could not be rescinded.

There was judgment rescinding the sale of the automobile and in favor of plaintiff and against Heimiller for the sum of $500, and in favor of plaintiff and against Central Finance Company in the sum of $1,100. From this judgment both defendants have appealed.

It is conceded by defendant’s that, at the time of the execution of the contract of purchase and of the mortgage and the note, the entire transaction was invalid and that, on reaching his majority, had the plaintiff not ratified the contract he could have had the entire transaction rescinded except for the alleged fact that the automobile was of benefit to him. However, defendants declare that, for any one of three reasons, the claim of plaintiff must now be dismissed.

They maintain that the car which was bought by the minor was “an object of utility” and that therefore, because of the provisions of Article 2147 of our LSA-Civil Code, the payment which was made cannot be reclaimed and the mortgage and the note which were executed were enforceable. That article reads as follows:

“Payment made to the creditor is not valid, if he is one of those whom the law has placed under an incapacity to receive it, unless the debtor prove that the payment was applied to some object of utility for the creditor; it is not sufficient if it was applied merely to contribute to his pleasure.”

The next contention made by defendants is that although a contract with a minor is unenforceable, nevertheless if it has been executed there arises a natural obligation not to claim back what has been paid on account of it. Defendants cite Article 1757, paragraph 2, of our LSA-Civil Code, which reads as follows:

“A natural obligation is one which can not be enforced by action, but which is binding on the party who [46]*46makes it, in conscience and according to natural justice.”

Defendants then direct attention to LSA-Civil Code Article 1758, paragraph 2, which declares that among natural obligations are:

“Such as are made by persons having the discretion necessary to enable them to contract, but who are yet rendered incapable of doing so by some provision of law.”

And they also point to Article 2303 which requires that where one who, believing himself to be a debtor, pays and later claims back that which he has paid, “it is necessary that the thing paid be not due in any manner, either civilly or naturally.” This article further declares that: “A natural obligation to pay will be sufficient to prevent the recovery.”

Defendants say that plaintiff was nineteen years of age; that he had been in the Navy for a period of some three years, and that he possessed the necessary discretion to enable him to contract.

The third contention of defendants is that, after plaintiff attained majority, he, by his failure to indicate his intention to rescind the contract and by his making use of the car and particularly by his action in attempting to sell it, ratified the contract and thus deprived himself of the right to have the sale declared null.

Since we think that these actions of plaintiff must be construed as evidencing ratification, we find it unnecessary to consider the other contentions made by defendants.

Plaintiff, on attaining majority on October 12, 1951, did nothing to indicate an intention to rescind the contract and, in fact, by his use of the car and by his attempt to sell it, evidenced an intention to ratify it. We cannot believe that, at that time, he had the slightest intention of rescinding the contract, and we are convinced that, had the defendant finance company not taken proceedings to repossess the car, it would still be in plaintiff’s possession and would be in use by him.

It is true that he was away in the service until the early part of December, 1951, and possibly he could have done nothing until he returned to Philadelphia, which he says was in the early part of December, 1951. Yet, almost two months after his return to his home in Philadelphia, he had done nothing to indicate his intention to rescind the contract and, in spite of his denials, we think it obvious that he was using the car. He did nothing until the car was seized, and even at that time he made several efforts to sell the car to used car dealers after first attempting to dispose of it to his brother. He said that he first attempted to contact his brother as he wanted to give him the preference, and then tried to sell it to the dealers to whom we have referred.

The question of what constitutes ratification of such a contract is a very interesting one.

In Kothe v. Von Behren, La.App., 5 So.2d 571, we considered such a defense of ratification and reached the conclusion that there had been no ratification of the contract entered into during minority. We relied largely on what the Supreme Court said in International Accountants Society v. Santana, 166 La. 671, 117 So. 768, 770, 59 A.L.R. 276. We note particularly the following reference made by the Supreme Court to the decision of this Court:

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Bluebook (online)
73 So. 2d 44, 1954 La. App. LEXIS 782, Counsel Stack Legal Research, https://law.counselstack.com/opinion/butto-v-central-finance-co-lactapp-1954.