Erwin v. Greene

5 Rob. 70
Supreme Court of Louisiana·Decided May 15, 1843·Published·Cited by 2 cases

Opinion

Simon, J.

This is an appeal from an order of seizure and sale, granted on the petition of the plaintiff, as transferee of James Erwin, who sold the property to the defendants. The act of sale shows, that four lots of ground, therein described, were offered for sale at public auction, and adjudicated to the defendants ; to wit, Peters & Millard, Henry Lockett, and John Greene, for the sum of $37,800, at a credit of six months without interest, and one, two, three, four, and five years, with six per cent interest per annum, for approved endorsed notes, secured by special mortgage, until final payment. The act of sale was passed accordingly, to the three purchasers, all present and accepting, according to a plan deposited in the office of the notary, for and in consideration of the said sum of $37,800, for which, three sets of notes, endorsed by different persons, corresponding with the terms of the adjudication, were given to the vendor ; to wit, the notes of Peters & Millard, endorsed by Henry Lockett, those of Henry Lockett, endorsed by Peters & Millard, and those of John Greene, endorsed by James Ogilvie, all paraphed, “ ne varietur,” by the notary. The act of sale further stipulates, that to secure the payment of the aforesaid notes, the purchasers hereby mortgage and specially hypothecate the herein described property; and at the [71] close of the act, it is stated* that “ the said purchasers hereby declare, that they are interested in the herein described property, as follows, viz : Peters & Millard for the one-third interest, and Henry Lockett, and John Greene, each, for one-third interest.” The price had been divided accordingly ; and the vendor took the three distinct sets of notes froto each of the vendees respectively, in accordance with their respective proportions of interest, and a list of the said notes is contained in the act of sale,- forming the gross amount of the purchase.*

The petition represents, that all the notes described in the act as being drawn by Henry Lockett and Peters & Millard, have been paid ; but that the following described notes, drawn by John Greene, are still due and unpaid, to wit1 six several promissory [72] notes drawn by Greene to the order of, and endorsed by, James Ogilvie for the sums'therein stated, being part of the price of the property sold. The judgment, or order appealed from, orders, that the mortgaged premises described in the petition (the four lots of ground) be seized and sold as prayed for, and according to law.

The question presented in this case, is one of considerable difficulty, and we must confess, that the conclusion which we have adopted is not free, even in our own minds, from objections which may be urged with a certain degree of plausibility ; but they have appeared to us mere specious than solid, and we feel convinced, that our judgment is based upon a correct application of the true principles of law which should govern this case, and is in accordance with the real intention of the parties at the time of the contract.

On the one hand, it is contended, that the plaintiff’s mortgage reserved in the act, and therein declared and stipulated to secure the payment of the notes, extends over all and every part of the property sold, to be exercised on the four lots until the complete payment and satisfaction of the whole price, principal and interest ; that the vendor never meant to divide his security; and that the purchasers, although they fixed their respective proportion of interest in the property purchased, as between themselves, by the last clause contained in the act, fully understood, that the entirety of the property purchased was to be the security for the purchase money.

On the other hand, it is insisted, that the division of the property. or of the purchasers’ interest therein, was provided for in the act of sale ;■ that the vendor consented to such division ; that he took the separate notes of the purchasers accordingly, and that it was distinctly and perfectly understood, that the payment of the notes by one of the vendees, would extinguish his obligation, and give him a title free from the vendor’s mortgage upon his portion.

It will be conceded, that the obligation contracted by the purchasers of the property ordered to be seized and sold, was a joint one; and that, had they given no notes for their respective portions of the price, they would have been bound jointly for the payment of the purchase money. 13 La. 448. Civil Code, art. 2075. [73] If so, after being all sued upon their joint contract as required by art. 2080, it is clear, that the two obligors who had paid their proportions, would be discharged from their obligation, and judgment would be rendered in their favor. Civil Code, art. 2082. Here, the contract is not only a joint one by the effect of the law, but each of the obligors has promised respectively and separately for himself, to pay his portion of the price, and has given his own notes accordingly, which have been accepted and received by the vendor. Thus, they contracted several and distinct obligations, which, although contained in the same contract, are by law considered as much individual and distinct, as if they had been contained in different contracts and made at different times, and as such, although created by one act, have no other effect than the same obligations would have had, if resulting from separate contracts. Civil Code, arts. 2073, and 2079. Now, it is a well known rule, that solidarity is not presumed, and that it must be expressly stipulated, Civil Code, art.. 2088 ; and that suretyship cannot be presumed ; that it ought to be expressed, and is to be restrained within the limits intended by the contract. Civil Code, art. 3008. The contract, in this case, does not contain any clause which would give rise even to any presumption of solidarity or suretyship. Each of the obligors promised to pay his portion of the price for which he gave his separate notes; and they took care to distinguish, and designate the proportion of their respective interests in the property, in the same act which constitutes and establishes their liability as purchasers. We cannot doubt, that the vendor understood it so, and that he signed the act of sale with the idea, that each pf the purchasers was only bound for his third of the price, and that the said third formed the whole extent of his obligation under the contract.

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