Federal Land Bank of New Orleans v. Lococo

178 So. 192
CourtLouisiana Court of Appeal
DecidedJanuary 11, 1938
DocketNo. 1781.
StatusPublished

This text of 178 So. 192 (Federal Land Bank of New Orleans v. Lococo) 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
Federal Land Bank of New Orleans v. Lococo, 178 So. 192 (La. Ct. App. 1938).

Opinion

OTT, Judge.

On June 11, 1927, the Federal Land Bank of New Orleans sold to the defendant, Onofrio Lococo, and another party, a plantation on the right descending bank of Bayou Lafourche. The sale was made with full warranty of title. At the time of the sale there was located on said plantation a sugar cane hoisting derrick on the banks of the said bayou, which derrick was used to load barges with sugar cane grown on the plantation. The defendant purchased the interest of his co-owner in the plantation and became the owner of the entire plantation in 1934. The plaintiff will hereafter be referred to as the bank, and the defendant will be referred to as the defendant, which reference will apply to him in his position as plaintiff in injunction as well as defendant in the main suit.

In 1935, the United States engineers were dredging the said bayou in connection with work on the Intracoastal Canal, and, by reason of excavations made along the bank of the bayou, the dirt opposite this derrick became loosened, and the derrick fell into the bayou, rendering it useless to the owner of the plantation. The United States engineers refused to repair the derrick or pay damages for its destruction for the reason that the derrick had been built on the banks of the bayou without permission from the United States engineers as required by an act of Congress. Act June 13, 1902, § 1, 33 U.S.C.A. § 565.

Defendant attempted to hold the bank responsible for the repair of the derrick which had been erected on the land before he purchased it from the bank. He claimed that the bank was liable for the repair of the derrick under its warranty title. After some negotiations between the bank and defendant, they entered into a compromise agreement on this disputed point of the liability of the bank for the repair. This compromise agreement was in writing, and is dated September 9, 1935, and the substance of the agreement is as follows :

The parties accepted the estimate of Edward Campos, of Thibodaux, to repair the derrick for the sum of $1,300, and agreed that, on the completion and acceptance of the repair work, the bank was to pay said Campos the entire cost of the repair, and defendant was to reimburse the bank for one-half of the cost by giving twenty notes, running over a period of twenty years, with 5 per cent, interest per annum, which notes were to be secured by a second mortgage on the plantation in *194 favor of the bank. The last paragraph of the compromise agreement reads as follows : “That, upon execution of the aforesaid notes and second mortgage, completion of the repair work and payment of the firm of Edward Campos, Thibodaux, Louisiana, the party of the first part (defendant) will release and relieve the party of the second part (the bank) from any and all claims or actions of any nature or kind whatever that might now exist or later arise in connection with the sugar cane hoisting derrick, or permit therefor, on said property.”

In the meantime, and before the compromise agreement was signed, the bank had procured for defendant a permit from the United States engineers to erect the derrick on the banks of the bayou under certain restrictions and according to plans and diagrams shown on the drawings attached to the permit. On September 10, 1935, the bank addressed a letter to Campos accepting for itself and for the defendant the proposal to repair the derrick for $1,300, subject to the condition that Campos, before beginning the work, was to procure from each of his employees on the job, a statement relieving defendant and the bank from any claims they might have on account of the work; further, that the work was to be performed in accordance with the plans and permit approved and issued by the United States engineers, and, before Campos was to be paid, the work was to be approved and accepted by the defendant and Mr. Roberts, engineer for the bank. A copy of this letter was furnished to the defendant, and he acquiesced in the terms of the contract, and the contractor, Campos, proceeded to repair the derrick.

It appears that Mr. Roberts, the engineer of the bank, made some three or four trips to the plantation to start off the work and, during the progress of the work, to advise with and instruct the contractor, and, on October 22, 1935, this engineer accepted the work as complete. On that date the bank paid the contractor the total cost of the repair work, $1,405, and on the same date, the defendant signed a letter to the bank in which he stated that the repairs on the derrick had been satisfactorily completed, and he authorized the bank to pay the contractor in accordance with the compromise agreement. The last paragraph of this letter reads as follows: “Further, this is to advise that I hereby release and relieve The Federal Land Bank of New Orleans from any and all claims or actions of any nature or kind whatever that might now exist or later arise in connection with the sugarcane hoisting derrick, or permit therefor, on said property.”

The notes and mortgage were executed by the defendant to the bank on the same day for the sum of $700, being the amount due by the defendant for his one-half of the cost, represented by twenty notes for $35 -each, running over a period of twenty years; the first note being due December 1, 1935, and annually thereafter. The first note was paid, but the defendant failed to pay the note due December 1, 1936.

Just after the payment of the first note, that is to say on the 13th day of December, 1935, the derrick which had been erected by Campos collapsed and fell into the bayou after it had been used for some twelve days. .The defendant made a demand on Campos to repair the derrick, as defendant claimed that the derrick had fallen because of a defective guy line put up by Campos. Being unable to get any satisfaction out of Campos, defendant, through his attorney, requested the bank to join him in an action against Campos to force him to replace the derrick, but the bank refused to join defendant in such an action.

Defendant having failed to pay the note due December 1, 1936, the bank, under a clause in the mortgage maturing all notes on the failure to pay any one note, instituted foreclosure proceedings against the defendant in January, 1937. The defendant filed a petition for an injunction and obtained a restraining order and rule against the bank to show cause on February 12, 1937, why the injunction should not be made permanent. He also asked for damages against the bank in the sum of $1.464.80, which he claimed to have sustained in repairing the derrick, the value of a mule killed when the derrick fell, and the expense incurred by him in getting off his 1935 cane crop.

The ground on which defendant bases his action for an injunction to arrest the sale of his property is that the notes were given without consideration, for the reason that the bank prepared the plans, secured the permit, and supervised the repair of the derrick by Campos; that defendant relied on the engineer of the bank who accepted, the work and who represented to defendant that the work had been done in a prop *195 er manner, and that it was on these representations of the bank’s engineer that he signed the mortgage, notes, and release to the bank; that when he signed said mortgage, notes, and release to the bank, he did so believing that the derrick had been properly repaired by said Campos, and that these documents were signed by him through error and without consideration.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Penn Bridge Co. v. City of New Orleans
222 F. 737 (Fifth Circuit, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
178 So. 192, Counsel Stack Legal Research, https://law.counselstack.com/opinion/federal-land-bank-of-new-orleans-v-lococo-lactapp-1938.