Cristina Inv. Corporation v. Gulf Ice Co.

55 So. 2d 685
CourtLouisiana Court of Appeal
DecidedDecember 20, 1951
Docket3480
StatusPublished
Cited by12 cases

This text of 55 So. 2d 685 (Cristina Inv. Corporation v. Gulf Ice 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
Cristina Inv. Corporation v. Gulf Ice Co., 55 So. 2d 685 (La. Ct. App. 1951).

Opinion

55 So.2d 685 (1951)

CRISTINA INV. CORPORATION
v.
GULF ICE CO., Inc. (Lilly Co., third-party opponent).

No. 3480.

Court of Appeal of Louisiana, First Circuit.

December 20, 1951.

*686 Heller & Heller, New Orleans, for appellant.

Martin, Himel, Hinckley & Morel, New Orleans, for appellee.

ELLIS, Judge.

The Cristina Investment Corporation, plaintiff herein, brought foreclosure proceedings against the Gulf Ice Company, Inc., the defendant, under a mortgage it held against the real property of the defendant. The property securing the mortgage and vendor's lien notes was an ice manufacturing plant, which was seized and sold, but the amount of the sale was insufficient to satisfy the indebtedness sued upon.

Plaintiff's mortgage was dated April 28, 1949 and recorded May 28, 1949. On July 7, 1949 the Lilly Company sold to the Gulf Ice Co. a certain ice crusher, which was placed upon the premises upon which the plaintiff held the mortgage.

The Lilly Company, third opponent herein, prior to the date of the foreclosure sale, obtained an order directing the Sheriff to appraise and sell separately, and to hold the proceeds thereof, a certain ice crusherslinger which the Lilly Company had sold to the defendant and upon which it claimed a vendor's lien arising from a conditional sales contract executed and performed in this State.

The ice crusher was sold under the order obtained for $1350.00 and the funds were held by the Sheriff subject to the disposition of the Court.

The District Court on the trial dismissed the rule and rendered judgment in favor of the plaintiff, Cristina Investment Corporation, and against the Lilly Co., third opponent, decreeing the proceeds from the sale of the ice crusher to be paid to the plaintiff.

From this judgment the Lilly Co., third opponent, has appealed.

There is a stipulation of facts in the record between the Cristina Investment Corporation and the Lilly Co., agreeing that: On July 7, 1949 the Lilly Company, a Tennessee corporation, sold to the Gulf Ice Company, one model 440, new ice crusherslinger complete with motor, hose and swivel nozzle. This machine was the same model and exactly similar to the model 440 machine illustrated on page 7 of the Link Belt Company's catalog, which catalog was introduced and filed as evidence. The sale was made under a conditional sales contract signed by both parties in the State of Louisiana and is filed in the record. The Gulf Ice Company did not make the payments as promised, and on March 22, 1951 was indebted to the Lilly Co. in the amount of $1326.00 plus interest at 6% from March 22, 1951 until paid, and *687 all costs and expenses incurred in the collection of said indebtedness. That the ice crusher was appraised separately from the other assets of the Gulf Ice Co. and was sold separately by the Sheriff at a valid judicial sale for the sum of $1350.00, the proceeds of said sale to be held by the Sheriff subject to the disposition of the Court.

Only two witnesses testified, both of whom were called by the plaintiff. The first was Mr. Robert J. Cristina, who testified that prior to April, 1949 he operated the ice plant, which was later sold to the Gulf Ice Co., and that at the time he operated it the plant sold most of the ice it processed to boats and that most of this ice was furnished in crushed form. Further, that the ice crusher in question was one of two maintained by the plant, and that after 1949 he visited the plant only occasionally, but that there was no change in the nature of the operation thereof.

The other witness was Mr. Victor Webb, a graduate engineer, whose business is designing, selling and erecting refrigerator plants. He testified he was familiar with the plant in question, and had on the day of the trial inspected it, especially with respect to the installation and use of the ice crusher, forming the basis of this suit.

He testified the machine was designed as a portable or stationary unit, and that it was located on a platform near the dock about 25 or 30 feet from the plant; that the wheels were still on the machine, but that blocks had been nailed to the platform to keep the machine from rolling. He further stated that the intake part of the ice crusher was moved up, touching the conveyer belt coming out of the ice plant, and was held on by means of angle irons, which were part of the machine itself, or had been put on to the crusher, and that these angle irons had been pushed into the wood of the conveyer belt. He observed that the electric wires to the crusher came from the plant, and that by removing the blocks in front of the wheels and straightening the angle irons and attaching a plug to the electrical wires, the machine could be used as a portable unit, and that these operations would take three or four hours at most to complete, and could be done without any damage to the dock, the conveyer belt, or any other part of the plant.

While we have not been favored with any written reasons for judgment, appellant's brief and appellee's supplemental brief state the trial Court was of the opinion the machine had become an immovable by destination and attached to the realty in such a manner it could not be removed without damaging the realty, and consequently, although sold subject to a vendor's lien, this privilege was out-ranked by the first mortgage and vendor's lien previously executed and recorded on the ice factory.

In Louisiana a vendor of movables is given the privilege for the unpaid price of the property sold as long as the property remains in the possession of the vendee and can be identified. Revised Civil Code, Articles 3227 and 3231.

The third opponent firstly urges the ice crusher did not become an immovable by destination but retained its character as a movable, and secondly, even though the movable property be incorporated into immovable property as the machine can be removed and reclaimed in substantially the same condition it was when sold, without serious or material injury to the immovable to which it is attached, that its vendor's lien primes the mortgage in question.

On the other hand, the appellee insists the crusher has become a permanent rigid installation, immovable by destination, and a component part of the ice manufacturing plant, continuously used in this business, and it cannot be detached without working material injury to the immovables covered by the mortgage which he claims and therefore out-ranks third opponent's vendor's lien and privilege.

First, we might mention that under the law of Louisiana, which does not recognize conditional sales, such contracts are considered outright sales vesting absolute title in the buyer, but a vendor's lien is thereby created when entered into and executed in Louisiana. Graham Glass Co. v. Nu Grape Bottling Co., 164 La. 1103, *688 115 So. 285; In re New Orleans Milling Co., D.C., 263 F. 254.

A leading case upon the questions involved in the case at bar is Caldwell v. Laurel Grove Co., Inc., 1932, 175 La. 928, 144 So. 718, 721. There a Third party opponent vendor had sold to a plantation a lot of second hand rails, switches, and other related railroad supplies, and this material was all made into a railroad on the plantation's road-bed. A foreclosing mortgage creditor claimed the equipment, maintaining it had become immovable by destination and by nature, and that the vendor's privilege claimed by the opponent was extinguished. The District Court recognized the vendor's lien, the Court of Appeal reversed this holding, and the Supreme Court reinstated the judgment of the District Court upon application for writs, saying:

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Bluebook (online)
55 So. 2d 685, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cristina-inv-corporation-v-gulf-ice-co-lactapp-1951.