Gajan v. Patout

63 So. 585, 133 La. 1060, 1913 La. LEXIS 2151
CourtSupreme Court of Louisiana
DecidedOctober 20, 1913
DocketNo. 19,099
StatusPublished
Cited by2 cases

This text of 63 So. 585 (Gajan v. Patout) 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, 63 So. 585, 133 La. 1060, 1913 La. LEXIS 2151 (La. 1913).

Opinion

Statement of the Case.

MONROE, J.

On February 23, 1906, Mrs. (Widow) L. P. Patout and L. J. Burguieres, individually and on behalf of the firm of Patout & Burguieres, of which they constituted the membership, executed a notarial act of mortgage and pledge upon their interest in Vacherie plantation, in the parish of St. Mary, to secure the payment of a note for $50,000 made by them, of even date with the act, identified therewith, payable to their order on February 1, 1907, and by them indorsed in blank, which note was given as representing the indebtedness of the makers for money loaned to them, at the time, by the firm of A. Adler & Co., of this city, for ■the making of the sugar crop of 1906-07 upon the plantation mentioned. On March 19, 1908, the Seaboard National Bank, of New York, appearing as the holder and owner of the note so described (subject to a credit of $5,000), obtained an order for the seizure and sale of the mortgaged property for the payment of the same, and, pending the delay required for notice to defendants, there was some correspondence between the sheriff and the counsel for the plaintiff, and between the counsel and their client, upon the subject of the advances that would be required to operate the plantation. On March 20th the sheriff wrote to the counsel:

“Will you kindly advise whether you will make arrangements for the money necessary for same [for the sheriff to take charge of, and run, said plantation] or will you expect the sheriff to do so? I ask this in advance so as to prevent any discord among the laborers or damage to the crop, by allowing the place to remain idle during the time said place is under seizure. * * * ”

The counsel, having communicated with their client, received a telegram reading as follows:

“Seaboard will not pay operating expenses. Suggest you give opportunity to owners and other lienors and State National Bank, which is interested, to operate plantation, if they desire, pending our possession. Have written.”

A letter confirming the telegram having been received, counsel, on March 23d, wrote to the sheriff that the plaintiff in the writ would not assume the expense of operating the plantation, and on the following day the sheriff answered (quoting in part):

“Replying to your favor of the 23d, in reference to the operation of the Vacherie plantation — against which you have issued execution for the Seaboard Nat. Bank, and which will be seized to-morrow, under the writ of seizure— beg to say that I have always understood the law imposed upon me the duty and obligation of administering and caring for whatever property I might seize under final process. Our custom, out here in the country, when a sheriff is required to seize a plantation upon which there is a growing crop, has always been to take possession and cultivate the crop. In fact, as I read article 657, Code Prac., it makes it the duty of the sheriff to do this. You will readily appreciate that, if a sugar plantation, upon which has been planted a crop of sugar cane, was to remain uncultivated for the five or six weeks that the property was in the hands of the sheriff, the crop would become worthless, as it would grow up in weeds; and, on this particular plantation, it might become entirely lost, because the lands are almost all reclaimed lands and every heavy rain requires that it be drained by the three draining machines on the plantation.”

The sheriff then quotes his attorney, to the effect that:

“The law makes it the duty of the sheriff, whenever he has seized a plantation, to appoint an overseer to manage the plantation and to cultivate it. He would be responsible for damages resulting to the creditors for permitting the plantation to remain idle,”

—and, upon the same authority, cites in support of that view Lockhart v. Morey, 41 La. Ann. 1165, 4 South. 581, Learned v. Walton, 42 La. Ann. 455, 7 South. 723, and Am. Nat. Bank v. Childs, 49 La. Ann. 1359, 22 South. 384. He then continues:

“The costs, such as you mention in your letter [cost of making the seizure, advertising the sale, and a keeper; in other words, the actual sheriff fees], under our custom here, are never [1063]*1063paid until the sale. The custom in the country is to pay off the labor on the plantation every two weeks, and this money will have to be advanced for that purpose.”

The counsel wrote again to their client, and again received the suggestion that they had better give other parties in interest an opportunity to make the advances, but that it (the Seaboard) would not do so. Counsel thereupon (on April 1st) addressed a circular letter to the owners of the plantation, to a party who held a contractor’s lien on the sugar house and one acre of ground, and to the State National Bank, informing them of the situation, and submitting to them the question, what should be done about making the advances needed by the sheriff. The owners and the holder of the contractor’s lien paid no attention to the letter. The liquidators of the State National Bank were more concerned, but did not see their way to immediate action; the facts in that connection being that, prior to going into liquidation (in December, 1907), the State National Bank, in the course of its business relations with the Seaboard National Bank, had pledged to the latter the $50,000 note in question, with other paper, as collateral security, and was bound to make the Seaboard whole with respect thereto, and negotiations for the settlement of the account between the bank and the liquidators were then pending. As a result of those negotiations, the liquidators reacquired the note in question shortly before the 9th of May, when the property seized for its payment was to be sold, and they engaged the services of the counsel who had represented the Seaboard to continue in charge as their representatives, requesting them to obtain a postponement of the sale, or, in the alternative, to bid on the property at the offering by the sheriff. On May 7th therefore the counsel telegraphed the sheriff to postpone the sale; but the sheriff, who had, in the meanwhile, been operating the plantation, in part apparently upon credit, and in part with borrowed money, sent a reply telegram upon the subject of his advances, to which on May 8th the counsel answered :

“Referring to your telegram of even date, this is to advise that the liquidators of the State National Bank will honor your draft for account costs, in accordance with your telegram.”

And the liquidators wrote a letter, on the same day, to the same effect. Even then, however, the sheriff was not satisfied, and, one of the counsel having gone to Franklin (the parish seat), on May 8th was given to understand that the sale would not be postponed unless a more satisfactory arrangement should be made. He, therefore, telephoned to the liquidators and received an answer, on the following morning (May 9th), advising him that the liquidators had deposited, in a bank in New Orleans, to the credit of one of the banks in Franklin, the amount called for by the sheriff (say $7,203.-51), to cover the expense of his administration of the seized property up to that time, that the sheriff could draw on the Franklin Bank for that amount, and that he could draw on the liquidators for expenses to be thereafter incurred in the same behalf. And the sale was thereupon postponed.

The counsel then addressed a letter to the sheriff in which they said:

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Related

Hollingsworth v. Ratcliff
110 So. 422 (Supreme Court of Louisiana, 1926)
Gajan v. Patout & Burguieres
65 So. 17 (Supreme Court of Louisiana, 1914)

Cite This Page — Counsel Stack

Bluebook (online)
63 So. 585, 133 La. 1060, 1913 La. LEXIS 2151, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gajan-v-patout-la-1913.