George Moroy Cigar & Tobacco Co. v. Henriques

184 So. 403
CourtLouisiana Court of Appeal
DecidedNovember 14, 1938
DocketNo. 16897.
StatusPublished
Cited by5 cases

This text of 184 So. 403 (George Moroy Cigar & Tobacco Co. v. Henriques) 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
George Moroy Cigar & Tobacco Co. v. Henriques, 184 So. 403 (La. Ct. App. 1938).

Opinion

JANVIER, Judge.

The George Moroy Cigar & Tobacco Company, Inc., is engaged in the sale of tobacco products. During the year 1934, Vivien N. Henriques, apparently a retailer of such products, purchased stocks of merchandise from the Moroy Company. On May 1, 1934, Henriques, on the demand of the cigar company for a continuing guaranty, prevailed upon Eva A. Brandao and Medeille Brandao to sign as sureties a document reading as follows:

“In consideration of Geo. Moroy Cigar & Tobacco Co., Inc., at my request, giving or extending credit to Vivien N. Henriques hereinafter called the Debtor, I do hereby give this Continuing Guaranty to said Geo. Moroy Cigar & Tobacco Co., Inc., hereinafter called the Company, its successors and assigns, for the payment in full, together with all interest, attorney’s fees, costs and charges of whatsoever nature and kind, of any indebtedness of said Debtor to said Company, up to the amount of Three Hundred Dollars ($300.00), whether due or to become due, now existing or hereafter arising.
“I hereby waive notice of acceptance of this guaranty, and all notices of the amounts advanced hereunder, and all notices of defaults by said Debtor and consent and agree to any extensions of the time of payment of said indebtedness, or of any portion thereof,, and to any change in the form of or renewal, at any time, of said indebtedness, or of any evidence thereof taken by said Company.
“I hereby waive all pleas of division and discussion and bind myself in solido with said Debtor for the payment of said indebtedness precisely as if the same had been contracted and was due or owing by me in person, hereby agreeing to, and binding myself by all the terms and conditions contained in any note or notes, or other agreements or evidences of indebtedness, signed or to be signed by said Debtor, and agree to pay the full amount of said indebtedness, together with all interest, attorney’s fees, costs and charges as above set forth.
“It is expressly agreed that this continuing guaranty is absolute and complete and the same shall continue in force until written notice of its discontinuance shall be served upon one of the executive officers of said Company, but such discontinuance shall not affect my liability on any indebtedness or obligations of the debtor then existing. This guaranty shall extend to my heirs, administrators, executors and assigns, and in the event of my death, I hereby bind my heirs, administrators, executors and assigns, for all advances made hereunder until knowledge of such death shall reach said Company.
“In witness whereof, I have hereunto set my hand and seal at the city of New Orleans, La., on this the 1st day of May, 1934, in the presence of the undersigned competent witnesses.
“(Signed) Eva A. Brandao
. “(Signed) Madellie Brandao
“Witnesses: 5207 Magazine St.
“(Signed) Doussan D. Rando,
“2020 Lapeyrouse
“(Signed) Mrs. D. N. Henriques,
“4236 Jena.”

Thereafter, merchandise was sold by the cigar company to Henriques.

The company alleges that there is due by Henriques a balance of $1,971.42 and it seeks judgment against him with interest and costs for that amount and it also prays *405 for judgment against each of the guarantors in the sum of $300, with interest and costs, and in addition prays for the recovery from each of the guarantors of $60 as an attorney’s fee. It contends that $60 is a reasonable fee in each instance and that a reasonable attorney’s fee is stipulated for in the continuing guaranty.

Henriques made no defense and judgment was rendered against him for the full amount claimed. Each of the guarantors conceded liability under 'the agreement, but asserted that it should be construed only as a solidary obligation for a total of $300 and that, each could not be held severally liable for $300. They also contended that there was no liability in them for attorney’s fees, or costs, or interest beyond the said limit of $300.

After the suit had been filed the guarantors made formal tender of $300, which was refused. In their answer they declared their willingness to pay $300 but no more and prayed that such judgment as might be rendered against them be limited to $300, less such costs as they themselves had been required to expend.

There was judgment below against them solidarily for $300, with legal interest from judicial demand, but assessing court costs against the plaintiff. Plaintiff has appealed.

Defendants, appellees, though they have maintained that they owe no interest except such as may be included in the $300, have failed to answer the appeal or to appeal independently and they, therefore, now concede that they must be held liable for interest since the judgment cannot be amended in their favor, in the absence of an appeal or of an answer to the appeal.

Appellant points out as errors the failure of the District Court to render judgment against each of the guarantors for $300 and the failure of the District Court to render judgment for attorney’s fees against each of the guarantors.

The principal question is whether or not the document evidences a solidary obligation, or several obligations included in one document. Plaintiff maintains that, in reality, the contract includes two separate agreements — one with each of the guarantors— and that, since there is no statement setting forth in express terms the solidarity of the obligation of the guarantors, each may be held for $30Q, attorney’s fees, costs and interest.

Our attention is directed to Art. 2093 of the Revised Civil Code, which article reads as follows:

“An obligation in solido is not presumed; it must be expressly stipulated.
“This rule ceases to prevail only in cases where an obligation in solido takes place of right by virtue of so'me provisions of the law.”

On behalf of plaintiff it is argued that, since neither the words “in solido”, nor the word “solidary”, appears in the agreement, the result is that because of the codal provision it is not a solidary agreement, but one in which several obligations are independently assumed by the respective guarantors. Our attention is directed to Art. 2078 of the Revised Civil Code, which reads as follows:

“Several obligations are produced, when what is promised by one of the obligors, is not promised by the other, but each one promises separately for himself to do a distinct act; such obligations, although they may be contained in the same contract, are considered as much individual and distinct as if they had been in different contracts, and made at different times.”

It is true that the document does provide that each of the guarantors is bound solidarily with the debtor to pay the amount for which the guarantor is bound.

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

Related

First National Bank of Crowley v. Green Garden Processing Co.
371 So. 2d 1294 (Louisiana Court of Appeal, 1979)
Securities Inv. Co. of St. Louis v. Donnelley
513 P.2d 1238 (Nevada Supreme Court, 1973)
Williams v. United States
353 F. Supp. 1226 (E.D. Louisiana, 1973)
Flintkote Company v. Thomas
223 So. 2d 676 (Louisiana Court of Appeal, 1969)
Rulf v. Von Schoeler
52 So. 2d 82 (Louisiana Court of Appeal, 1951)

Cite This Page — Counsel Stack

Bluebook (online)
184 So. 403, Counsel Stack Legal Research, https://law.counselstack.com/opinion/george-moroy-cigar-tobacco-co-v-henriques-lactapp-1938.