City Bank of New Orleans v. McIntyre

8 Rob. 467
CourtSupreme Court of Louisiana
DecidedJuly 15, 1844
StatusPublished
Cited by2 cases

This text of 8 Rob. 467 (City Bank of New Orleans v. McIntyre) 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
City Bank of New Orleans v. McIntyre, 8 Rob. 467 (La. 1844).

Opinion

BullaRd, J.

This is an appeal from a judgment dissolving an injunction upon motion, and for want of equity on the face of the papers, which had been obtained by the City Bank of New Orleans and the Roman Catholic Church of St. Patrick, to arrest the proceedings of the defendants, under a judgment against the church, upon a mortgage debt. The correctness of the judgment below depends, therefore, on the question, whether the petition discloses sufficient legal ground for arresting the proceedings of the defendants, the allegations therein contained being assumed as true.

The facts alleged are, that the church issued certain bonds to the amount of $36,000, bearing mortgage upon the church, the lots in New Orleans upon which it is erected, and all its appurtenances. That these bonds have been negotiated to various individuals, of which five, amounting to $>5000, belong to the City Bank. That Philip McIntyre is holder of six of the bonds, amounting to $6000, on which he has recovered a judgment. That he has obtained several executions upon said judgment, under one of which he caused to be exposed at sheriff's sale, on the 29th April, 1843, (the present petition was filed January 23, 1844,) the unsold pews in said church, without designating in the advertisement, or at the day of sale, the number of pews so sold, or intended to be sold, and without any reference to the number or situation of said pews, whereby bidders may be ill-formed of their real value, thereby deterring bidders at said sale; and that, by direction of said McIntyre, the pews were sold in lump, and that James McIntyre, the brother of the said Philip, purchased all said pews for $500, on a credit of twelve months, and he claims to be the owner, of ninety pews, worth about $500 each. That in October, 1843, under another writ of fieri facias, the said Philip McIntyre caused to be advertised all the ground rents due said church upon pews sold to individuals, without designating the number of pews, or to whom sold; and on said ¡sale, by direction of McIntyre, the whole of said ground rents [469]*469were offered together in the lump, and bid in- by James McIntyre for $600, when, in fact, the annual revenue from said pews was above $1100. These acts are represented to be oppressive, and in fraud of the rights of the other creditors. They further show, that James McIntyre, claiming to be the owner, has instituted suits against a number of persons in the court of Gallien Preval, one of the city judges, and is endeavoring to recover judgments against them, as holders of pews in said church, and thus to deprive the church of the income necessary for the support of its pastor, and the payment of its debts. They further represent, that the said Philip McIntyre has caused to be advertised for sale the four lots on which the church is built, and the improvements thereon, to wit, the church itself, with the exception of said ninety pews and the ground rents; all of which are alleged to belong to James McIntyre, by which exception the whole value of the said premises is destroyed, whereby other bidders will be deterred from attending, and the said McIntyre will be able to obtain said property for a nominal consideration, and the rights of other creditors be defeated. They allege the nullity of these sales, and to prevent further injury state, that an injunction is necessary. They further allege, that they have notice that the judgment has been transferred to Mary Louisa McIntyre, who is made a party. They pray, that the sales be annulled, and that the defendant may be decreed to have no other right against the property than to prosecute his claim concurrently with,, and for the joint benefit of the City Bank, and the other bond-holders.

The question whether the sale of the pews and of the ground rent be null, either as it relates to the church or another mortgage creditor, is not before us. That question remains to be tried upon its merits in the court below. Our only inquiry is, whether, pending such an investigation of the rights of the parties, the defendants ought to have been restrained from proceeding to sell the lots on which the church is built, or from exercising any acts of ownership as to the pews and the ground rents.

The two parties, plaintiff, stand in different positions towards the defendants in injunction, and therefore their pretensions must be considered separately. The City Bank is merely the co-creditor, with McIntyre, of the church, their claim being secured by [470]*470the same mortgage, and therefore having a right to be paid concurrently out of the proceeds of the mortgaged premises. The church, on the other hand, is the common debtoras it relates to McIntyre, by mortgage and a judgment in the ordinary form; as to the bank, by mortgage without judgment.

And first, as to the bank. Admitting the right of the City Bank to participate with the defendant McIntyre in the proceeds of their common pledge, it does not follow that they have any other right to interfere than to cause such proceeds to be brought into court for distribution, and not to arrest the sale. The City Bank has no claim on the pews unsold, nor on the ground rents due by those which have been sold. By an amendment of the charter of the church of St. Patrick, passed in 1842, it is declared, that the purchasers of pews in fee simple shall hold them forever free from any liability for debts, and that they shall never be susceptible of any species of mortgage, and that the sale of such pews need not be recorded. Acts of 1842, p. 128. The pews are therefore a distinct property, and when owned by an individual, not liable to be seized for his debts. They are quite distinct from the church, and the ground on which it stands. If the church wardens had sold every pew after the date of the mortgage of the contending parties, it would not have impaired their hypothecary rights. The bank, therefore, has no right to complain of the manner in which the pews have been sold by the sheriff. .

How does the matter stand in relation to the church 1 That corporation complains with ill grace of what might have been prevented by themselves. They knew the number of pews unsold, and can gain no advantage by concealing their knowledge from the defendants. They might have had a fair sale, pew by pew, by interfering for that purpose. There is no equity in their lying by until the pews were sold, and then complaining of an irregularity caused in a great measure by themselves. They do not now aver, that either more or less than the true number was sold. The defendant sold without opposition from the church. The corporation might have purchased the pews and the ground rents, at the second exposure, on a credit of twelve months. They chose to forbear that' advantage which [471]*471the law allows to judgment debtors. The defendants having purchased, were entitled in the meantime to enjoy the advantages of their purch se, and to enjoy the property as owner.

While we concur with the Parish Court in the opinion that the injunction ought to be dissolved, we think the damages awarded under the act of 1831 and 1833 excessive, considering the very short time that the proceedings of the defendants have been wrongfully suspended. The injunction was obtained in January, 1844, and was dissolved on the 12th of April. The debt itself bears an interest of eight per cent, and no special damages are shown. Under these circumstances, we think two per cent interest per annum, and damages at five per cent, are a sufficient remuneration.

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Related

Smith v. Sanders-Lenahan Lumber Co.
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Cite This Page — Counsel Stack

Bluebook (online)
8 Rob. 467, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-bank-of-new-orleans-v-mcintyre-la-1844.