Calhoun v. Lanaux

127 U.S. 634, 8 S. Ct. 1345, 32 L. Ed. 297, 1888 U.S. LEXIS 2027
Supreme Court of the United States·Decided May 14, 1888·No. 239·Published·Cited by 18 cases

Opinion

Mr. Justice Brapley

delivered the opinion of the court.

This case arose upon a petition filed in the Civil District Court for the parish of Orleans, January 23d, 1884, by Lanaux, the defendant in error, praying for a mandamus against Eugene May, the recorder of mortgages for the same parish, commanding him to cancel and erase from the books of his *635 office all inscriptions against certain property of the petitioner in favor of The Consolidated Association of the Planters of Louisiana, particularly certain inscriptions designated in the petition as being those of a mortgage on three certain lots in New Orleans, dated June 6th, 1843, given to secure the payment of a subscription for fifteen shares of the capital stock of the company, of $500 each. The State of Louisiana, through its Attorney General, the Consolidated Association of the Planters of Louisiana, through its liquidators, and Henry Denis and others, holders of bonds of the State, secured by pledge of the mortgage above mentioned, were made parties to the proceeding. The interest of the collateral parties arose in this way: The mortgage was originally given by one Lebau to secure the payment of his subscription for the fifteen shares of stock, and, with the like mortgages of other subscribers, and the other assets of the corporation, was pledged by the company to the State, as security for paying certain bonds, issued by the State in favor and aid of the company. Hence the interest of the State. The other parties were holders of these bonds of the State, and claimed to be subrogated to its rights. The petitioner alleged that by an act of the Legislature of Louisiana, passed in 1847, and by the action of the liquidators of the company, (which had become insolvent,) the stockholders were called upon to contribute $102 per share, as a fund to meet the obligations of the State, payable in yearly instalments of $6 each for the period of seventeen years; .and that all these instalments had been paid on the fifteen shares secured by the mortgage in question. The petitioner further stated that in the case of The Association v. Lord, one of the stockholders in consimili casu, 35 La. Ann. 425, the Supreme Court of Louisiana had decided that the payment of the said instalments discharged the obligations of the stockholders both as to the subscription and mort.gage. He further stated that the mortgage kept his lots out of commerce, and that he had no adequate relief except by mandamus to the recorder.

Prior to the filing of this petition, the Circuit .Court of the United States for the Eastern District of Louisiana had *636 appointed receivers of the said Consolidated Association of Planters, and a copy of the petition was served on them.

The Attorney General of Louisiana appeared and filed an exception to the proceeding by mandamus, claiming that the petitioner could only have relief by a plenary suit, via ordinaria; and that it Avas, in fact, a suit against the State, which could not lie without its consent, and that the State declined to be made a party to the proceeding.

The recorder of mortgages appeared, and contended that he could not be required to cancel the inscription of the mortgages until it had been judicially declared that they were not valid and existing securities by proceedings via ordinaria by way of citation contradictorily had with the parties claiming the benefit of the mortgages.

The holders of the state bonds, Denis and others, appeared, and denied the allegations of the petition, and pleaded that the court had no jurisdiction of the demand of the relator, because receivers had been appointed to the Consolidated Association of Planters by the Circuit Court of the United States, and that court only could entertain jurisdiction of the matter.

The receivers of the association, appointed by the Circuit Court, did not appear, and offered no objection to the proceeding.

The cause was tried and the Civil District Court, for some reason not shown, dismissed the petition. The case was then appealed to' the Supreme Court of Louisiana, Avhich, on the first hearing, affirmed the judgment; but, on a rehearing, reversed it and granted a mandamus as prayed.

On the question of jurisdiction raised by the plea of the bondholders, the court said: “ The point made that this .court is without jurisdiction because receivers have been appointed for the Consolidated Association by the United States Circuit •Court is untenable, when the object of the proceeding is to erase from the mortgage book of the State an incumbrance created by the laAv, and which the Circuit Court of. the United ■States would have no authority to order.”

As this presents the only federal question raised in the case, *637 we have no occasion to consider any other. If the state court had jurisdiction of the proceedings, its judgment cannot be impeached on the present writ of error, for that is the only objection made to it on federal grounds. The objection is that the court has no jurisdiction because the United States court had appointed receivers of the association. The simple fact that the said court had appointed such receivers is the only fact disclosed in the record, so far as the proceedings in the Circuit Court of the United States are concerned, until after final judgment had been rendered in the Supreme Court of Louisiana; and this fact only appeared by the statement of the defendants Forstall and Denis in their answer. After final judgment of the Supreme Court was rendered, John Calhoun, who had become sole receiver, together with Denis, one of the state bondholders, presented to the Supreme Court a petition for an order to call on the other defendants to join them in an application for a writ of error in this court, and if they refused, then that such writ be allowed to the petitioners alone. To' this petition was annexed a copy of an order of the Circuit Court, made December 29th, 18S3, in a cause in which William Cressey was complainant and The Consolidated Association of Planters were defendants, for an injunction and the appointment of receivers, enjoining the defendants from disposing of the association’s assets or property; and appointing John Calhoun, T. J. Burke and George W. Nott as receivers in the cause, and directing them forthwith to take possession of all the property and assets of the said association and proceed to administer the same under the direction of the court, and collect all accounts due said association, and all parties having possession of assets, securities, books, papers, vouchers or effects of said association be ordered to deliver up the same to said receivers, and that said receivers be vested with all the rights and powers of receivers in equity in this cause.

A subsequent order, a copy of which wás also annexed to the petition .for writ of error, continued Calhoun and Burke as receivers, and- specified more minutely their powers and duties, not materially differing from the above. By another order; made in June, 1884, a copy of which was also annexed to the *638 petition, Burke was relieved and Calhoun was continued as sole receiver.

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Calhoun v. Lanaux, 127 U.S. 634, 8 S. Ct. 1345, 32 L. Ed. 297, 1888 U.S. LEXIS 2027 (1888).

127 U.S. 634 (Calhoun v. Lanaux) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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