Donohoe Oil & Gas Co. v. MacK-jourden Co.

142 So. 713
CourtLouisiana Court of Appeal
DecidedJune 29, 1932
DocketNo. 4347.
StatusPublished

This text of 142 So. 713 (Donohoe Oil & Gas Co. v. MacK-jourden 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
Donohoe Oil & Gas Co. v. MacK-jourden Co., 142 So. 713 (La. Ct. App. 1932).

Opinion

PALMER, J.

The Donohoe Oil & Gas Company brought this suit against the Mack-Jourden Company as a partnership, and against the individual members composing it, including the partners in commendam, to recover the sum of $650, representing a balance due on the purchase price of a certain standard rig or pumping equipment. In connection with its suit, writs of attachment and sequestration were sued out.

Statement of Case.

It appears that on May 12, 1931, Walter Mack, a resident of the state of Texas, and W. Earl Jourden, a resident of the state of California, associated themselves together in a partnership known as the Mack-Jourden Company. Their articles of partnership specify that the company is the owner of an oil, gas, and mineral lease covering certain lands *714 in the parish of Red River, La., and that the company is formed for the purpose of exploiting and developing, for oil, gas, and other minerals, the lands covered by the lease. In order to further its interests and to carry out the purposes of the partnership, the articles specify that the company may take in and admit partners in eommendam, who shall share in the profits derived from a certain portion of the company’s holdings. Pursuant to this provision a large number of nonresidents were admitted in the company as partners in eommendam.

On or about the 9th of October, 1931, the company, through its member, Walter Mack, purchased from plaintiff company a certain standard rig or pump equipment for a consideration of $1,000, of which amount $350 was paid in cash. The balance was made payable in three equal installments due thirty, sixty, and ninety days. The transaction was consummated in Louisiana. This standard rig was installed by the defendants and used to equip what is termed the Mack-Jour-den well No. 1, on the Lockett property in Red River parish, La. On the 2d of January, 1931, the defendants not having made the deferred payments as they matured, plaintiff instituted this suit. At the time the suit was filed, and for some time prior thereto, it appears that neither of the members of the defendant company was present in the state of Louisiana. In fact, it appears that the company had no designated office in Louisiana, nor an agent or representative upon whom any legal process could be served when the partners were absent from the state. Even all its common laborers appear to have departed from the scene of the company’s former operations.

Plaintiff claims the right to the writ of attachment on the grounds that the defendants are all nonresidents. He bases his claim to the right of the writ of sequestration on the grounds that he has a vendor’s lien and privilege under the laws of Louisiana on the standard rig in question, and on the further ground that he has a lien and privilege as a furnisher of material.

Sidney G. Myers, Esq., one of the attorneys for plaintiff, attached to the petition his affidavit to the effect that the allegations of the petition are true and correct to the best of his knowledge and belief. There was also attached to the petition an affidavit of S. E. Davies to the effect that he is an employee of the plaintiff company; that the debt sued on is owing and due as a balance on the purchase price of the standard rig and equipment in question; ^that it lies within the power of the defendants to conceal, part with, dnd dispose of said movable property in their possession; and that he verily fears that they will so act during the pendency of this suit. He further averred that he believes the debtors have left the state permanently, or are on the eve of leaving it, or that they reside out of the state, or that they conceal themselves' so that citation cannot be served-upon them, or that they have mortgaged, assigned, or disposed of, or are about to mortgage, assign, or dispose of, the property, right, or credits with the intent to defraud their creditors or give an unfair preference to some of them, or that they have converted, or are about to convert, the property into money or evidence of debt with intent to place it beyond the reach of their creditors, and that the copartners are nonresidents of the state of Louisiana.

Defendants, on February 8, 1932, filed a motion to dissolve the writ of attachment on the following grounds:

(a) That defendant company is not a nonresident, but is domiciled in the parish of Red River.

(b) That no action lies against the individual partners until the debt sued on is adjudged to be due and owing by the partnership, and that under no circumstances could the partners in eommendam be held except for any unpaid portion of any subscription that might be due the company.

(e) That the writ issued on an affidavit of an unauthorized person.

(d) That the facts alleged on which the writ was sought are false.

Defendants asked for damages in the sum of $500 to cover cost of replacing the rotary' rig and other property covered by the attachment, which was moved by the sheriff while the property was under attachment in an effort to keep it beyond threatened overflow. They further ask for damages in the sum of $100 as attorney’s fees. At the same time, with full reservations of all their rights, defendants also filed a motion to dissolve the writ of sequestration on the following grounds:

(a) That the affidavit made to secure the issuance of the writ was 'made by a person unauthorized by law.

(b) That the statement of facts made and contained in the affidavit to secure the writ is false and unfounded in fact.

They ask for damages in the sum of $250 ■for the removal of the standard rig while it was under sequestration, on the claim" that such was necessary to keep it out of and beyond a threatened overflow. They further ask for damages in the sum of $100 as attorney’s fees. Subject to these motions to dissolve, defendant at the same time filed an exception of no cause or right of action. The motions to dissolve the writ of attachment and the writ of sequestration were tried together. The exception of no cause of action was not submitted, although the minutes show that the lower court erroneously passed on it.

*715 The lower court sustained the motions to dissolve the writs of attachment ¿nd sequestration, casting the Donohoe Oil & Gas Company in all costs of the proceedings, including the costs incurred in connection with the custody of the property while under seizure, and awarded judgment in favor of defendant Mack-Jourden Company, and against the plaintiff, Donohoe. Oil & Gas Company, in the sum of $100 with legal interest from the' date of the judgment, as attorney’s fees. From that judgment plaintiff prosecutes this appeal.

Opinion.

This case hinges upon the question of whether or not the defendant company was an absentee at the time the writs issued, and whether or not proper affidavits were made as a basis for the writs. We shall consider the writs separately, taking first the writ of attachment.

The writ of attachment was sued out on the allegation that, the defendants are nonresidents of the state of Louisiana. This is the only grounds on which this writ issued. It is claimed by counsel for defendants that no allegation is made that the partnership is a nonresident, but in these conclusions we disagree with counsel.

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Bluebook (online)
142 So. 713, Counsel Stack Legal Research, https://law.counselstack.com/opinion/donohoe-oil-gas-co-v-mack-jourden-co-lactapp-1932.