Charrier v. Greenlaw Truck & Tractor Co.

2 La. App. 622, 1925 La. App. LEXIS 221
CourtLouisiana Court of Appeal
DecidedJune 13, 1925
DocketNo. 2225
StatusPublished
Cited by8 cases

This text of 2 La. App. 622 (Charrier v. Greenlaw Truck & Tractor 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
Charrier v. Greenlaw Truck & Tractor Co., 2 La. App. 622, 1925 La. App. LEXIS 221 (La. Ct. App. 1925).

Opinions

CARVER, J.

On March 17, 1923, Green-law .Truck & Tractor Company, Inc., sold to Charles F. O’Rourke a Federal truck on terms of part cash and part credit, taking notes for the credit part, secured by vendor’s privilege on that truck and also by a chattel mortgage on both that truck and a Huffman truck already belonging to O’Rourke.

The act acknowledging the vendor’s privilege and granting the chattel mortgage was passed before Harry E. McEnerny, a Notary Public in and for Orleans parish, and two witnesses, and was duly re- . corded, in that parish.

It contained the- non-alienation clause.

O’Rourke having removed the trucks to Avoyelles parish, the Greenlaw company sent a certified copy of the act to the Clerk of the District Court and ex-officio Recorder of that parish to be recorded.

This copy was not marked filed, but an unsigned notation was made by a deputy clerk on the foot of' it reading as follows:

“Reed Book 1 folio 300 in Avoyelles parish records.”

The clerk keeps, as required by the chattel mortgage law, a chattel mortgage book [624]*624ruled off into columns with headings as follows:

“Number”
“Date & time filed Month Day Year Hour”
“Mortagor”
“Mortagee”
“Date-of Instrument Month Day Year”
“Amount Secured”
“When due Month Day Year”
“Description”.

In this book, under date of March 21, 1923, the act in question was recorded by writing in the respective columns the appropriate details of the act, all being correctly done except that in the column headed “Mortagor” the name of the no tary, McEnerny, was written instead of O’Rourke’s name.

The clerk also keeps an index to chattel mortgages in which the act was indexed as a mortgage from McEnerny to the Greenlaw company.

He also keeps a book in which he notes in chronological order all instruments filed for record.

In this book, too, the act was noted as a mortgage from McEnerny to the Green-law company.

On October 20, 1923, the sheriff of Avoyelles parish sold both trucks under a writ of fieri facias issued on a judgment duly rendered against O’Rourke in the suit of .Voorhies Moreau against him.

The sheriff did not obtain or ask for a certificate of mortgages and, of course, ,did not read such a certificate.

At this sale- John C. Charrier bought the Huffman truck for $300.00 and Felix E. -Bordelon bought the Federal truck for $100¡00. , They paid these amounts to the sheriff and took possession of their respective trucks.

The price of the trucks, after paying Moreau’s debt and costs, left a considerable surplus.’ which was paid to O’Rourke’s wife, whose right or authority to receive it is not questioned.

On January 5, 1924, the Greenlaw company sued out a writ of seizure and sale to enforce payment of a balance due on its mortgage debt, and thereunder the sheriff seized the trucks in possession of Charrier and Bordelon.

Thereupon they filed the present suits, claiming ownership of the trucks and enjoining the sheriff from selling them.

They also called the clerk and sheriff in warranty, alleging liability on the part of those officers for their damages in case they lost the trucks, the former because of the erroneous registry of the mortgage and the latter because of his failure to procure and read a mortgage certificate.

In view of the conclusion at which we have arrived, it is not necessary to state the defenses made by these officers.

The Greenlaw company answered asserting its right to pursue the mortgaged property in plaintiff’s hands by virtue of the non-alienation clause in its mortgage, the registry of which, they claim, was sufficient, and alleging the nullity of the sheriff’s sale because of his failure to read a mortgage certificate.

The' district judge maintained Bordelon’s claim, but rejected Charrier’s. We a,re informed that his reason for -thus distinguishing was that Bordelon had the records examined by an attorney, who reported the trucks free of encumbrances, whereas Charrier bought without examination

OPINION.

We think the failure of the sheriff to read the mortgage certificate was, under the circumstances of this case, immaterial.

If the Greenlaw mortgage .was effective as to third persons, the sheriff’s sale would [625]*625offer no obstacle to its enforcement because it carried the non-alienation clause. If it was not so effective, then the purchases made by Bordelon and Charrier gave them a good title.

The sheriff’s sale, if a nullity, on the ground claimed, was only relatively so and the defendant in execution or his representative ratified it by accepting the surplus.

This, we think, gave it the effect of a conventional sale.

2.

The defense chiefly relied on is that such registry as was made of the chattel mortgage was sufficient to preserve the rights of the Greenlaw company which, it is claimed, complied with its full duty by depositing the act for record and was not obliged to see that it was recorded correctly.

Up to the time Act 215 of 1910 was passed, mortgages took effect not from the time of filing but only from the time they were actually inscribed in the mortgage book.

In Slocum vs. Rogillio, 30 La. Ann. 833, the Supreme Court pointed out that the provisions of the Code respecting the registry of mortgages were essentially different from the provisions respecting the registry of conveyances.

As to conveyances, as pointed out in Payne vs. Pavy, 29 La. Ann. 116, the Code, in Articles 2264, 2254 and 2266, expressly provided that they should take effect from the time they were deposited in the proper office and endorsed by the proper officer; whereas, as to mortgages, the Code provided, in Article 3329, that “among creditors the mortgage, whether conventional, legal, or judicial, has force only from the time of recording it in the manner hereafter directed”; in Article 3342 that mortgages are only allowed to prejudice third persons when they have been publicly inscribed in records kept for that purpose and in the manner hereafter directed; in Article 3345 that “all mortgages, whether conventional, legal or judicial, are required to be recorded in the manner hereafter provided”; and in Article 3348 that “any person entitled to a mortgage or privilege on the property of another .person must cause the evidence of such mortgage or privilege to be recorded in the mortgage book of the parish where the property is situated”.

The court, in the Slocumb case, further said, page 835: “And so it has been often held that the registry of a mortgage in the book of conveyances though in the proper office is insufficient and without effect as to third persons, the only exception being where it appears that only one book of record is kept in which both sales and mortgages are registered indifferently. Robertson vs. Brown, 5 La. Ann. 154; Carpenter vs. Allen, 16 La. Ann. 435; Verges vs. Prejean & Bernard, 24 La. Ann. 78, and authorities cited.”

In succession of Falconer, 4. Rob.

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Bluebook (online)
2 La. App. 622, 1925 La. App. LEXIS 221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/charrier-v-greenlaw-truck-tractor-co-lactapp-1925.