Gajan v. Patout & Burguieres

65 So. 17, 135 La. 156, 1914 La. LEXIS 1736
CourtSupreme Court of Louisiana
DecidedMarch 30, 1914
DocketNo. 19,099
StatusPublished
Cited by24 cases

This text of 65 So. 17 (Gajan v. Patout & Burguieres) 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
Gajan v. Patout & Burguieres, 65 So. 17, 135 La. 156, 1914 La. LEXIS 1736 (La. 1914).

Opinion

Buie for Contempt.

MONBOE, J.

The circumstances leading to this rule are, in part, narrated in the original opinion handed down in the above-entitled suit,-and reported in 133 La. 1060, 63 South. 585. Those which, for a clear understanding of the present situation, need be here recited, are as follows:

In 1906 the planting firm of Patout & Burguieres, composed of Mrs. Marie Olive Suberbielle, widow of L. P. Patout, and L. J. Burguieres, borrowed $50,000 from A. Adler & Co. for the making of a crop of sugar upon Yacherie plantation in the parish of St. Mary, and they gave their note for that amount, secured by mortgage upon the plantation. In 1908 the Seaboard National Bank of New York, appearing as the holder of the note, caused executory process to issue, under which the plantation was seized and advertised -for sale. Pending the seizure, the sheriff made demands for money, wherewith to defray the expense of operating the plantation, and, as the note belonged to the State National Bank, its liquidators made the advances required, to an amount exceeding $12,-000, which, with other money advanced by the sheriff himself, made a total of over $14,-' 000 of costs expended. The property was advertised to be sold on July 11, 1908, but before that day was reached, the liquidators sold the note sued on to Emile Gajan and others, associated with him. The property was, however, offered, as advertised, on July 11th, and was adjudicated to A. D. Kemper, acting for Gajan and his associates, for $130,000, but the parties interested concluded, upon inquiry, that the amount bid was in[160]*160sufficient to satisfy the mortgages and privileges (including the hill of costs to which we have referred), which primed the mortgage of the seizing creditor, and by common consent the adjudication to Kemper was held to be void. Gajan et al. then abandoned the writ of seizure and sale which had been issued, and the property reverted to the possession of Patout & Burguieres; but a few months later they (Gajan et al.) caused another writ to issue, under which it was again seized and advertised, to be sold on October 17th following. On October 13th the liquidators intervened in the proceeding, asserting a lien on the crop for the advances which had been made by them, to the sheriff, and praying that the crop be appraised and sold separately, and that the sheriff be ordered to retain sufficient of the proceeds to meet their demands, and the separate appraisement and retention were ordered, with the result that, when the sale was made, the sheriff retained $15,000, of which he still holds the proportion attributable to the claim of the liquidators; the amount so held being the subject of the present controversy.

While the property was being advertised, Gajan, plaintiff in the seizure, Mrs. Patout, defendant, and J. Paul Suberbielle, Mrs. Pa-' tout’s brother, and others entered into an agreement to bid it in, through Preston King, and, in the event of its being adjudicated to King, to form two corporations, the one to take the sugar factory and its appurtenances, and the other to take the remainder of the estate. In contemplation of their proposed action the parties whom King was to represent applied to the counsel representing the sheriff for information as to the amount of the bid that would be required to cover the ranking mortgages and privileges, and a statement was exhibited to them showing that amount to have been $141,463, the first item upon the statement, being $12,436.56, appearing as due to the liquidators; and thereafter the adjudication was made to King at $142,000.

On the day of the sale, there were recorded against the property, as priming the mortgage under which the sale was made, the following claims, to wit: Louis Levy, $21,-477.03; Minors Patout, $34,471.75, with interest amounting to $10,473.18; Payne and Joubert, $56,199.75; Bank of Baldwin, $1,-619.70; A. Hansen Lumber Company, $6,-193.66; costs advanced by sheriff and seizing creditors, $14,065.83. The parties whom King represented appear, about that time, to have organized the L. P. Patout Company, Limited, which took over the entire property, and thereafter conveyed the refinery and appurtenant land to another newly created corporation. The liquidators had intervened, before the sale, to assert their claim against the proceeds; Louis Levy filed an interven tion on the day of the sale, for a like purpose; Gajan and his associates answered the intervention of the liquidators on April 17, 1909, and filed amended answers, afterwards contesting the claim of the liquidators, asserting that, as owners of the $50,000 note sued on, they were entitled to a certain balance of (say) $17,000, in the hands of the sheriff, and that the makers of the note remained their ordinary debtors for a further balance of $38,000, and Patout & Burguieres, also, and on the same day answered the intervention of the liquidators, ¿dopting the answer that had been filed by Gajan et al., so far as it denied any right of recovery in the liquidators. On January 10, 1910, the sheriff filed an opposition, alleging inter alia, that, in addition to the amount which he had received from the liquidators and expended for the preservation of the plantation and its crop while under seizure, he himself had expended $1,054.10 in the same behalf; that the crop which was on the plantation at the time of the sale had been separately appraised at $15,000, and that that sum had been [162]*162set apart from the proceeds of the sale to meet his demand and that of the liquidators. In April, 1910, about 18 months after the liquidators had filed their intervention, L. P. Patout Company, Limited, appeared in the case by way of a third opposition, and also contested the claim of the liquidators to the fund set apart at their instance and in the hands of the sheriif. The opponent alleged that while the plantation in question was under seizure, J. Paul Suberbielle, its president, entered into an agreement with the seizing creditors—

“the then holders of said note [meaning the note of $50,000, for the payment of which the seizure had been made], by which he would purchase said note for a company, to be organized by him in the event it became the purchaser of * * * plantation.”

It then alleged the adjudication to King and the transfer by him to the Patout Company, and further alleged that it—

“thereafter acquired said note_, * * * and, the same being secured by special mortgage on the * * * plantation, is entitled to the proceeds resulting from the sale thereof, in' preference over all other creditors, and especially in preference over the pretended claim of the liquidators of the -State National Bank ® * * as costs, under the writ that it afterwards abandoned; * * * that when the said * * * plantation was sold, it was acquired by the agent of your petitioner, Preston King, for * * * $142,000; that the mortgages and privileges ranking that of the seizing creditor, Emile Gajan, aggregated upwards of $123,000, leaving your petitioner, by reason of its purchase of said note, an ordinary creditor of Patout & Burguieres for upwards of $38,000; that, the entire plantation and crop being covered by the mortgage of your petitioner, it is entitled to the proceeds now in the hands of the sheriff, without which it will have received no credit on said note.”

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

Related

Furie Petroleum Co. v. SWEPI, LP
152 So. 3d 255 (Louisiana Court of Appeal, 2014)
McNeal v. Normand
552 So. 2d 1234 (Louisiana Court of Appeal, 1989)
Ryan v. Grandison Trust
504 So. 2d 844 (Supreme Court of Louisiana, 1987)
Ruston State Bank & Trust Co. v. Crystal Oil Co.
463 So. 2d 860 (Louisiana Court of Appeal, 1985)
Tassin v. Sayes
386 So. 2d 995 (Louisiana Court of Appeal, 1980)
Maher v. City of New Orleans
371 F. Supp. 653 (E.D. Louisiana, 1974)
White v. White
233 So. 2d 289 (Louisiana Court of Appeal, 1970)
Taylor v. Williams
107 So. 2d 319 (Louisiana Court of Appeal, 1958)
Succession of Reynolds
91 So. 2d 584 (Supreme Court of Louisiana, 1956)
Brown Land & Royalty Co. v. Pickett
75 So. 2d 18 (Supreme Court of Louisiana, 1954)
Quarles v. Lewis
75 So. 2d 14 (Supreme Court of Louisiana, 1954)
Durmeyer v. Streiffer
41 So. 2d 226 (Supreme Court of Louisiana, 1949)
Adkins' Heirs v. Crawford, Jenkins & Booth, Ltd.
24 So. 2d 246 (Supreme Court of Louisiana, 1945)
Himel v. Connely
197 So. 424 (Supreme Court of Louisiana, 1940)
Hope v. Madison
193 So. 666 (Supreme Court of Louisiana, 1940)
Exchange Nat. Bank v. Holoman Bros.
148 So. 702 (Supreme Court of Louisiana, 1933)
Speakman v. Bernstein
59 F.2d 523 (Fifth Circuit, 1932)
First Nat. Life Ins. Co. v. Bell
140 So. 11 (Supreme Court of Louisiana, 1932)
Bell v. First Nat. Life Ins.
138 So. 904 (Louisiana Court of Appeal, 1931)
Richardson v. Trustees' Loan & Guaranty Co.
132 So. 387 (Louisiana Court of Appeal, 1931)

Cite This Page — Counsel Stack

Bluebook (online)
65 So. 17, 135 La. 156, 1914 La. LEXIS 1736, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gajan-v-patout-burguieres-la-1914.