General Finance Co. of Louisiana v. Veith

184 So. 364
CourtLouisiana Court of Appeal
DecidedNovember 14, 1938
DocketNo. 17005.
StatusPublished
Cited by2 cases

This text of 184 So. 364 (General Finance Co. of Louisiana v. Veith) 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. Veith, 184 So. 364 (La. Ct. App. 1938).

Opinion

*365 McCALEB, Judge.

Henry James Veith, Jr., defendant in this original proceeding, filed a rule against General Finance Company of Louisiana, Incorporated, the plaintiff, and its surety Richard T. McBride, seeking an order for the taxation of costs expended by him in defense of this suit and also for a writ of possession for a certain Buick automobile, to which he alleges he is entitled by virtue of the final decree of this court. From an adverse decision of the trial court, which dismissed the rule on the exceptions filed by the finance company and Mr. McBride, he has prosecuted this appeal.

At the outset, we believe it is pertinent to briefly state the history of this litigation in order that the issues presented in the case may be clearly stated and discussed.

On December 4, 1936, the General Finance Company instituted this action against the defendant Veith declaring, in substance, that it was the owner of a certain Buick automobile then in his possession. It further averred that it was within the defendant’s power to conceal, part with or otherwise dispose of the automobile during the pendency of the suit and that a writ of sequestration was necessary in the premises. Upon this showing, the trial judge issued the writ as prayed for and the plaintiff furnished a bond with Richard T. McBride as surety thereon in the sum of $300, conditioned upon payment to Veith of such damages as might be sustained by him in case it should be decided that the order was wrongfully obtained.

Shortly after the issuance of the writ of •sequestration, Veith, taking advantage of the provisions of Arts. 279 and 280 of the Code of Practice, bonded the seizure and executed a forthcoming bond conditioned upon delivery of the property to the constable in the event the court should decide the contest in favor of the plaintiff. Thereafter, he appeared in court and moved to dissolve the writ of sequestration on the ground that the same was wrongfully issued. This motion to dissolve the writ was referred by the court to the merits of the case and, in obedience to this ■order, Veith answered denying, in substance, all of the allegations in the plaintiff’s petition.

Subsequently, the case was heard and^ the Judge decided the matter in plaintiff’s favor, decreeing it to he the owner of' the automobile and maintaining the writ of sequestration which had been previously issued. The defendant Veith, being unable to furnish the necessary security to take a suspensive appeal from this judgment, prosecuted a devolutive appeal to this court and delivered the automobile in contest to the constable in accordance with the condition of the forthcoming bond executed by him. The constable, upon receiving the automobile from the defendant, delivered the same to the plaintiff in conformity with the judgment of the trial court.

Sometime later, after the hearing of the case in this court, we rendered our opinion and decree recognizing Veith as the lawful owner of the automobile. The judgment of the First City Court was accordingly reversed, the writ of sequestration dissolved, and the plaintiff’s suit dismissed at its cost. See 177 So. 71. A rehearing was applied for and refused and, after the time prescribed by law for the finality of our decrees had elapsed, the record was returned to the trial court where our opinion and judgment were filed and recorded. On December 4, 1937, previous to the finality of the judgment of this court, Veith filed a suit for damages against the plaintiff finance company in the Civil District Court, bearing Docket No. 224—491, wherein he claimed that, due to the wrongful issuance of the writ of sequestration, he had been injured in the sum of $273.65. He included in that suit, among the items listed by him as comprising his damage, the amount he expended for court costs in defending this proceeding in the sum of $23.-65, the $25 fee he paid to an expert who testified on his behalf at the trial and $225 representing the value of the Buick automobile.

Thereafter, while the suit in the Civil District Court against the finance company was pending, Veith filed the present rule in these proceedings, seeking recovery of the costs expended by him in defense of the case, including therein the $25 expert fee. He also requested the issuance of an order directing the finance company to turn over and deliver to him the Buick automobile (to which he is entitled under the judgment of this court), alleging that he had made amicable demand upon it without avail. Further, he prayed that, in the alternative, in the event the finance com-, pany was unable to deliver the automobile in good condition, then there should be judgment in his favor for the value of the car which he avers to be the sum of $225. In addition to his demand against the *366 finance company, Veith also included, as a party defendant to his rule, Richard T. McBride, the surety on the sequestration bond.

In accordance with the allegations of this rule, an order was issued by the trial court for .the finance company and McBride to show cause why the former should not immediately deliver to Veith the Buick car in good condition or, alternatively, in case of default, to show cause why they should not be condemned to pay for its value amounting to the sum of $225 and, further, to show cause why they should not be taxed with the costs expended by Veith in these proceedings, including the $25 expert fee.

Upon the return day of the rule, the finance company and McBride appeared and filed exceptions (1) that the proceeding was improperly brought as it is not accompanied by a petition and citation; (2) that there was pending, at the time of the filing of the rule, a suit in the Civil District Court involving the identical question to be determined by the court and (3) that said rule disclosed no right or cause of action.

After hearing arguments on these exceptions, the trial judge sustained the exception of no right or cause of action of the surety McBride and the exception of lis pendens of the finance company and ordered a dismissal of the rule in its entirety. • We first direct our attention to the action of the lower court in maintaining the exception of no right or cause of action of the surety McBride. This exception is based upon the theory that the sequestration bond neither protected the defendant Veith for the costs of court he expended nor was it a forthcoming bond for the return of the automobile but that, on the contrary, the sole obligation of the bondsman was to pay all damages suffered by the defendant in the event it was determined that the writ had been wrongfully issued.

The exception is well founded. The writ of sequestration issues as a mere incident to the main demand. Under Art. 276 of the Code of Practice, the party obtaining it must give his obligation with solvent surety in favor of the defendant, for such sum as the court shall determine, to be responsible for such damages as the defendant may sustain in case the sequestration is wrongfully issued. The surety on a sequestration bond does not contract to become liable for the costs expended by the defendant in resisting the main demand. The defendant’s right of recovery against the bondsman is limited to the costs and expenses or other damages to which he was subjected in consequence of the unjust order.

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Bluebook (online)
184 So. 364, Counsel Stack Legal Research, https://law.counselstack.com/opinion/general-finance-co-of-louisiana-v-veith-lactapp-1938.