Dickson v. Ford

38 La. Ann. 736
CourtSupreme Court of Louisiana
DecidedOctober 15, 1886
DocketNo. 181
StatusPublished
Cited by25 cases

This text of 38 La. Ann. 736 (Dickson v. Ford) 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
Dickson v. Ford, 38 La. Ann. 736 (La. 1886).

Opinion

The opinion of the Court was delivered by

Poché, J.

Plaintiff sues for the cancellation of a special mortgage of $2,500, which she executed in January, 1881, in favor of W. R. Bar-stow, who is made a party hereto as well as his assignee, Wm. Thurman, the present holder of the mortgage, who is herein represented by a curator ad hoe.

Plaintiff avers that the sole purpose and the true consideration of the mortgage were to secure Barstow from any loss or damage which might have resulted from a release bond in a litigation then pending against her, which bond had been procured for her by Barstow on his personal responsibility, and that said litigation having been finally settled and the demand against her having been fully satisfied, the purpose of the mortgage no longer exists, and that it should be can-celled.

The defense is a general denial, coupled with the averment of the good faith of the transfer from Barstow to Thurman in August, 1885, with a plea of estoppel of plaintiff’s denial of an indebtedness acknowledged in an authentic act importing a confession of judgment, followed by a demand in reconvention for a judicial recognition and enforcement of the mortgage.

The defendants have appealed from a judgment in favor of plaintiff. The serious contention in the case involves the objection to' any parol evidence to show the alleged true consideration of the mortgage, on the ground of the familiar rule that such evidence cannot be admitted against or beyond what is contained in the acts. C. C 2276.

That rule has been the subject of countless adjudications from this Court, and it has been uniformly interpreted and construed so as to admit parol evidence to show error or fraud in the acts, or to show the real cause of the contract when the same is not fully expressed or described therein.

Such a construction was followed in very recent opinions of this [738]*738Court as at present composed, but the earnestness with which defendants’ able counsel have urged the vigorous enforcement in this case of the general rule, as an inflexible bar against all attempts to abridge or modify the irresistible force and effect of authentic acts, has induced us to go once more over the whole field of discussion on this subject, and to review our whole jurisprudence on a point of more than ordinary importance and of great interest.

Our study of the question includes the consideration of a case so strikingly similar to the controversy in hand thatw.e herein transcribe in full the language used by Judge Martin as the organ of the Court in his statement of the salient points discussed in the case of Falcon vs. Boucherville, 1 Robinson, p. 337:

The defendant is appellant from a judgment perpetuating an injunction obtained to stay proceedings on an order of seizure and sale which he had procured, the judgment having been rendered on the ground of the absence of any consideration to support the defendant’s claim to the mortgage he sought to enforce. The authentic act, from which the confession of judgment is said to result, expresses only that the mortgagor has declared that he owes the mortgagee the sum of three hundred dollars, without stating the nature of the debt or the consideration from which it arises. The plaintiff alleges that the real consideration of the debt of $300 mentioned in the authentic act was the payment by the mortgagee of a judgment which Foley had obtained against the mortgagor for $96 and interests, and a compensation to the mortgagee for his services in a suit which he was to carry on for the mortgagor. * * * That the mortgagee has utterly neglected and refused to pay the said judgment * * * or to institute the suit aforesaid; whereby the consideration of the debt of $300 for which tlie mortgage was given has entirely failed. Our attention is first drawn to a bill of exceptions taken by the defendant to the admission of parol evidence to establish the nature of the consideration of the debt and its failure. It does not appear to us that the court erred. The plaintiff relied on the failure of the consideration, and as this consideration was not stated in the act, it became necessary to establish it by testimony, in order to prove its failure.”

The testimony was admitted and considered, and under its effects the mortgage was annulled.

Now, in the instant case, it appears from the act that the mortgagor only acknowledged an indebtedness of $2500 to the mortgagee, for which she executed her note payable in six months, and granted the mortgage, and the act contains no statement as to the nature or' origin [739]*739of the debt. Defendants contend that sucli language necessarily and exclusively infers the existence of a past contracted indebtedness, and that nothing is open to explanation or discussion.

In this lies their principal error, for in this case as well as in the Falcon case, the consideration of the mortgagor’s indebtedness may have arisen from some other cause ; in the former case it was alleged to have arisen from obligation of the mortgagee to pay a judgment obtained against the mortgagor, and to render certain future services; in this case it is" averred to have arisen from the responsibility assumed and the risk incurred by the mortgagee in procuring a release bond for the mortgagor. Jurisprudence and the common experience of business men alike demonstrate that a past pecuniary indebtedness is not the exclusive source of an indebtedness sufficient to serve as a foundation for a mortgage.

Article 3292 of the Civil Code provides : “A mortgage may be given for an obligation which has not yet risen into existence; as when a man grants a mortgage by way of security for indorsements ■which another promises to make for him.”

The source of indebtedness used as an example in that article is of the essence of the source of indebtedness which plaintiff alleges as the foundation of the mortgage which she executed in favor of Barstow.

Hence we conclude that the silence of the act touching the origin of the obligation which the mortgage was intended to secure, left the door open to parol evidence to supplement the omitted information as a necessary step to show the subsequent failure, or more properly, the contingent future extinction of the consideration of the mortgage. It is elementary that when the obligation secured by the mortgage becomes extinguished by any legal mode, the mortgage itself ceases to exist. In the textual language of the Code (art. 3285), “in all cases when the principal debt is extinguished the mortgage itself disappears with it.”

The legal and true purport of the proffered parol evidence, as we understand from the record, is not to vary or contradict any of the recitals of the authentic act, not to disprove the existence of a mortgage as contemplated therein or created thereby, not to establish the nonexistence of the consideration or of the principal debt which is therein stipulated as the foundation of the mortgage resulting therefrom, but simply to establish the true and covenanted source or origin of the principal debt or obligation sought to be secured, not as a means of defeating the legal force and effect of the mortgage resulting from the contract, but merely to establish the subsequent extinction of the in[740]*740debtedness acknowledged by the mortgagor, the true source of which was not set forth or recited in the act, as a means of extinguishing the mortgage as the obligation accessory thereto.

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Bluebook (online)
38 La. Ann. 736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dickson-v-ford-la-1886.