General Finance Co. of Louisiana v. Evans

196 So. 581, 1940 La. App. LEXIS 98
CourtLouisiana Court of Appeal
DecidedJune 13, 1940
DocketNo. 17254.
StatusPublished
Cited by5 cases

This text of 196 So. 581 (General Finance Co. of Louisiana v. Evans) 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
General Finance Co. of Louisiana v. Evans, 196 So. 581, 1940 La. App. LEXIS 98 (La. Ct. App. 1940).

Opinion

McCALEB, Judge.

On December 27, 1938, a concern named Evans Sales Company borrowed from the plaintiff, General Finance Company of Louisiana, Inc., a corporation engaged in the business of lending money, the sum of $282.50 and, as security for the payment of the debt, it executed in favor of the finance company a chattel mortgage upon a certain Chevrolet sedan automobile owned by it. This act of mortgage was passed before R. Emmet Mahoney, notary public, and was duly recorded in the office of the Recorder of Mortgages for the Parish of Orleans. In executing the act, Evans Sales Company-appeared through its duly authorized agent, J. L. Evans, and it is stated therein that the mortgagor is a resident of Port Sulphur, Louisiana, in the Parish of Plaquemines.

On March 1, 1939, the Evans Sales Company sold the automobile, which it had previously mortgaged to General Finance Company, to John H. Truett, Jr., proprietor of Truett Used Car Market, by written bill of sale made in accordance with the provisions of Act No. 178 of 1936. In this- bill of sale, Evans Sales Company was likewise represented by J. L. Evans and it made affidavit to the effect that the property sold by it was free from all liens, mortgages and privileges. On March 14, 1939, John H. Truett, Jr., sold the Chevrolet car to one Wallace P. Veron and executed a bill of sale, in accordance with the provisions of law, in which affidavit was made that the property transferred was free from any encumbrance whatever.

Subsequent to the time Veron purchased the automobile from Truett, J. L. Evans, who represented Evans Sales Company throughout the above stated transactions, absconded. Upon the failure of Evans Sales Company to liquidate its obligation to General Finance Company, the latter caused an investigation to be made and discovered that the mortgaged automobile was m the possession of Veron and thereupon, on April 27, 1939, it caused the chattel mortgage to be recorded in Plaque-mines Parish. On May 10, 1939, the finance company instituted this suit for executory process upon the mortgage in its favor. It alleged the execution of the mortgage and the default of Evans in paying the debt; that Evans was in truth the owner and proprietor of Evans Sales Company and that, as such, he should be made party defendant to the proceeding.

In conformity with the prayer of the petition, a writ of executory process was issued by the court and the Civil Sheriff for the Parish of Orleans, in obedience thereto, seized the mortgaged automobile in the hands of Veron.

In due course, Veron intervened in these proceedings, claiming ownership of the automobile, averring that he purchased it in good faith and that the mortgage held by the finance company was invalid as to him. By supplemental petition, he sought to enjoin the seizure and sale of the car principally upon the ground that, since it had been stated in the act of mortgage that Evans Sales Company, the mortgagor, was a resident of Port ■Sulphur, Louisiana, it was incumbent upon the finance company to have recorded the mortgage in Plaquemines Parish and that its failure to do so, until a date subsequent to the time he had, in good faith, •acquired title to the vehicle, precluded it from now contending that the mortgage ,was effective and binding upon him.

In accordance with the prayer of Veron’s petition, a rule nisi was issued by the trial court and the Civil Sheriff for the Parish of Orleans and the finance company were ordered to show cause why an injunction should not issue restraining the sale of the automobile seized under the writ of execu-tory process. On the date of the hearing of the rule nisi, the finance company and Veron entered into a stipulation whereby it was agreed that the evidence to be taken at the trial of the rule should be considered by the court as a trial of the case on its merits and the court was requested to render judgment accordingly.

After hearing the evidence submitted by the respective parties, the district judge issued an injunction. He decreed that Veron was the owner of the automobile seized under the writ of seizure and sale, that said automobile is not subj ect to execu- *583 tory process and he dismissed plaintiff’s claim for a lien and privilege thereon. He further ordered that the automobile be forthwith restored to the possession of Veron and reserved to the latter the right to proceed by appropriate action to recover such damage as he might have sustained as a result of the wrongful seizure. Plaintiff has prosecuted this appeal from the adverse decision.

A careful study of the record in this case has convinced us that the result reached by the trial judge is correct. At the outset of the argument in this cortrt, counsel for Veron contended that the order for executory process was improvidently granted because the mortgage executed by the Evans Sales Company, wherein it was represented by its duly authorized agent, J. L. Evans, is not in itself authentic proof of plaintiff’s right to proceed via executiva in that there is nothing to show that Evans, the agent, had any authority to encumber the property belonging to the mortgagor.

It seems to have been well settled by the pronouncements of the Supreme Court that a writ of executory process may not legally issue unless it appear that the documents upon which the writ is founded are executed by authentic act. It has been held on many occasions that, where a mortgage by authentic act is executed by an agent for the mortgagor, whose authority to bind his principal is not shown by authentic evidence, the writ of ex-ecutory process may not issue. See Chambliss v. Atchison, 2 La.Ann. 488; Dosson, Curator v. Sanders, 12 Rob. 238; Gaudoz v. Blanque, 23 La.Ann. 520; Crescent City Bank v. Blanque, 32 La.Ann. 264; and Bank of Leesville v. Wingate, 123 La. 386.

In Dosson, Curator v. Sanders, the pertinent part of the syllabus by the court reads: “The authentic evidence required to authorize the issuing of an order of seizure and sale must be complete so far as relates to the debt. Thus where a mortgage by authentic act was executed under power of attorney, or where a note secured by such a mortgage has been assigned, the power and the assignment must be proved by authentic acts.”

And in Crescent City Bank v. Blanque, the court, in annulling the writ of execu-tory process, stated: “The defendant having appealed, assigns as error, patent on the face of the record, the want of authentic evidence of the authority of the agent. That such evidence was necessary, is no longer an open question.”

Applying the foregoing jurisprudence to the facts of the case at bar, it will be readily seen that the writ of ex-ecutory process was improvidently issued in the court below. The chattel mortgage, as we have stated, was executed by Evans Sales Company appearing through its duly authorized agent, J. L. Evans. The record does not contain any proo,f whatsoever that Evans had authority to act for and on behalf of Evans Sales Company. In fact, the contention of the finance company is that Evans is really the mortgagor and that he was doing business under the trade name of Evans Sales Company. But no evidence has been submitted by it to sustain this contention and we have no means of determining whether Evans was operating the business for his own account, or whether the Evans Sales Company was a co-partnership or a corporation.

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Bluebook (online)
196 So. 581, 1940 La. App. LEXIS 98, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-finance-co-of-louisiana-v-evans-lactapp-1940.