Carter v. Third Dist. Homestead Ass'n

197 So. 230, 195 La. 555, 1940 La. LEXIS 1098
CourtSupreme Court of Louisiana
DecidedMay 27, 1940
DocketNo. 35631.
StatusPublished
Cited by8 cases

This text of 197 So. 230 (Carter v. Third Dist. Homestead Ass'n) 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
Carter v. Third Dist. Homestead Ass'n, 197 So. 230, 195 La. 555, 1940 La. LEXIS 1098 (La. 1940).

Opinion

O’NIELL, Chief Justice.

This suit was commenced as a mandamus proceeding by a married woman against a building and loan association to compel the association to issue to her a duplicáte stock certificate and pass book. The certificate and pass book-represent certain shares of stock that were subscribed for by the wife and were issued to her and are standing in her name, on the books of the corporation. She alleged that her husband had taken possession of the stock certificate and pass book without her consent and that he refused to surrender them to her. The building and loan association answered that the husband was claiming that the stock was paid for with funds that were earned by him during the matrimonial community and hence that the funds and the stock were community property. The building and *560 loan association therefore prayed that the husband should be cited as defendant in the suit in order to settle the dispute between the husband and wife over the ownership of the stock. The wife then filed a supplemental petition, citing her husband as defendant and obtaining a writ of sequestration, under which the certificate and pass book were surrendered to the sheriff. The husband excepted to the suit on the ground that the wife had no right or cause of action. The exception was overruled. The husband then answered that the funds which were deposited with the building and loan association, and which were represented by the stock certificate and pass book ,in contest, were community funds, earned by him during his marriage with the plaintiff, and deposited with the building and loan association previous to the year 1932; hence he averred that, as the community had not been dissolved, he, as head and master of the community, had exclusive control over the administration and disposition of the funds represented by the stock certificate and pass book in contest.

On the trial of the case the wife proved that she alone signed the subscription for the stock and that the certificate- and pass book were issued to her and in her name. The husband then offered to prove that the funds that were deposited with the building and loan association, from time to time, in payment for the stock, were funds earned by him during the matrimonial community. The attorneys for the wife objected to the testimony on the ground that, as long as the community was not dissolved, the husband could not demand reimbursement for his half of the community funds invested in property acquired in the name of his wife. The objection was founded upon the statutes, — section 13 of Act No. 120 of 1902 and section 34 of Act No. 140 of 1932 — which allow a married woman to buy stock in a building and loan association without being authorized so to do by her husband. The attorneys for the wife in this case contend that these statutes declare that all such stock so bought is the separate property of the wife. The judge reserved his ruling on the objection and heard testimony tending to prove that the stock that was bought by and in the name of the wife was paid for with community funds. Thereafter the judge sustained the objection and gave judgment for the wife, declaring that the stock in dispute was her separate property, and ordering the sheriff to deliver the stock certificate and pass book to her. The husband is appealing from the decision.

It is conceded that the suit is now merely a contest between the husband and wife over the ownership of the stock in the building and loan association. The association has no interest in the outcome beyond being protected by a judicial decree in the matter of recognizing the rightful owner of the stock.

The suit must stand or fall as an action by a wife against her husband for the restitution of her paraphernal property. She bases her claim upon certain provisions in section 13 of Act No. 120 of 1902 and in section 34 of Act No. 140 of 1932, which— as she contends — declare that if a married woman subscribes for stock in a building and loan association and the stock is is *562 sued in her name it becomes her separate property, even though it is paid for with community funds. The husband in this case relies upon the community laws generally, and especially upon the provision in article 2334 of the Civil Code, that all property bought by either the husband or the wife during the existence of the community, and with community funds, belongs to the community, even though it is bought in the name of only one of the spouses. The husband denies that section 13 of Act No. 120 of 1902 changed the community laws in that respect, even with regard to stock in building and loan associations; and he argues that that section of the statute cannot be construed as making such a change in the community laws without rendering it unconstitutional, because no such object or purpose was indicated in the title of the act. The husband argues also that section 34 of Act No. 140 of 1932, in so far as it purports to change the community laws with regard to a married woman’s buying building and loan association stock in her own name, is not applicable to this case because the statute was enacted after the marriage was contracted and even after the stock was acquired.

The provision in section 13 of Act No. 120 of 1902 which the wife relies upon is in the concluding sentence, viz.:

“Married women may subscribe for, hold, withdraw, transfer, pledge, borrow upon and surrender stock in such corporations [meaning building and loan associations] without the consent or authorization of their husbands, and same shall be for her separate benefit as paraphernal property.”

It is argued that the only object of that provision in the statute was to protect building and loan associations in their dealings with married women, and that there was no intention to change the community laws with regard to the relative rights of a husband and wife on property bought in her name. That interpretation is supported in some measure by the fact that the provision for purchases of stock by married women follows immediately a provision allowing purchases of stock by minors. Besides, the title of Act No. 120 of 1902 merely declared that its object was to provide for the organization, regulation, supervision and inspection of building and loan associations, and to define the rights, powers and privileges of such corporations and of the members thereof. There was no indication, in the title of the act, of an intention to change the community laws, or to do anything else but to regulate building and loan associations and to define their rights’ and the rights of their members. We find it unnecessary, however, to decide now whether this clause in section 13 of the act of 1902 changed the community laws with regard to the relative rights of the husband and wife, or to decide whether such an interpetation of that section of the act would render it unconstitutional. The reason why it is not necessary now to consider the act of 1902 is that it was superseded by Act No. 140 of 1932, codifying the laws relating to building and loan associations and embracing the whole subject matter. There is a provision in the title of the act of 1932 that takes care of the supposed defect in the title of the act of 1902. We refer to this *564

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Bluebook (online)
197 So. 230, 195 La. 555, 1940 La. LEXIS 1098, Counsel Stack Legal Research, https://law.counselstack.com/opinion/carter-v-third-dist-homestead-assn-la-1940.