Graugnard v. Forsyth

44 La. Ann. 327
CourtSupreme Court of Louisiana
DecidedMarch 15, 1892
DocketNo. 10,964
StatusPublished
Cited by2 cases

This text of 44 La. Ann. 327 (Graugnard v. Forsyth) 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
Graugnard v. Forsyth, 44 La. Ann. 327 (La. 1892).

Opinion

The opinion of the court was delivered by

Breaux, J.

Plaintiff, on the 14th of January, 1891, bought four notes of the Citizens Bank, of $4037.25 each. He at the same time bought one note of $5378 from the Burbridge heirs, and four notes of $3000, all secured by mortgage on Pike’s Peak plantation, in the parish of St. James. The last four are also secured by special mortgage on the Burbridge plantation, in the parish of Plaquemines.

Plaintiff, on the 27th of January, 1891, obtained from the District Court of the parish of St. James a writ of seizure and sale, on the said mortgage notes, against Pike’s Peak plantation.

Afterward plaintiff obtained in the United States Circuit Court a writ of seizure and sale against the said Burbridge plantation, on the said four notes of $3000 each.

On the 6th day of March, 1891, as directed by the plaintiff, the sheriff discontinued all proceedings under the writ of seizure and sale issued in St. James parish on the said four notes of $3000 each, and continued with the seizure on the other notes.

A satisfaction of judgment was entered by plaintiff’s counsel, and payment of the five notes attached to plaintiff’s petition (the first notes before mentioned) was acknowledged, and the clerk was authorized to cancel the mortgage.

Pike’s Peak plantation was sold under the said writ on the 7th day of March, 1891, for $39,200, with the machinery in the sugar house, which was appraised and sold separately; it brought $41,325.

On the 5th day of March, 1891, the plaintiff and Pugh & Co., holders of an inferior mortgage', entered into an agreement setting forth that executory process had been obtained and Pike’s Peak plantation seized on nine promissory notes due by the defendant, being the notes before referred to; “that four of these notes were secured by mortgage and vendor’s privilege, as per act passed 23d January, 1889; that another was also secured by mortgage on the 26th Janu[329]*329ary, 1889; and that four (of the said nine notes), dated November 18, 1885, were secured by mortgage and vendor’s privilege on the Burbridge plantation, as per act of sale of that date; that they were also secured by mortgage on Pike’s Peak plantation, under the 'before mentioned act of January 26, 1889.

“That since the said proceedings were instituted, executory process was issued on said four notes of $3000 each, before the Circuit Court of the United States, whereby the-said notes have been withdrawn from the operation of said writ of seizure and sale in the District ■Court of St. James.

“ That Pugh & Co. are mortgage creditors of the defendant in the ■-sum of $12,271.79,and interest and attorney’s fees, for which judgment has been obtained, as per said mortgage on Pike’s Peak plantation, ■dated May 1, 1890.

“That they had sued out, or were about to sue out, a third opposition in said District Court, claiming to be paid by preference over the plaintiff as holder of the said $3000 notes, bearing on said plantations, out of the proceeds of said Pike’s Peak plantation, and claiming, as to these (4) notes, that plaintiff is bound to discuss the said Burbridge plantation, and that an injunction might become necessary to protect their interest as mortgage creditors.”

After these preliminaries had been written, it was agreed that the sheriff should return the writ, quoad said notes and retain in his •hands, out of the proceeds of the sale of Pike’s Peak plantation (after paying plaintiff’s said four notes of $4031.25 each and the note for $5375, also interest, attorney’s fee and cost), a sum sufficient to pay and satisfy the judgment of Pugh & Co., and hold the amount subject to the decree of the court in said opposition.

It was also agreed that after the sale of the Burbridge plantation, under the writ in the Circuit Court of the United States, the plaintiff “ shall credit said writ with the proceeds of said sale, and that any balance due to said Graugnard, after exhausting the proceeds of said Burbridge plantation, shall be paid out of the proceeds of the said Pike’s Peak plantation by preference over Pugh & Co.; the intent and purpose of this agreement being to prevent litigation and the -arrest of the sale of Pike’s Peak plantation by injunction, which would inflict injury on all parties in interest, and it being also the interest hereof that while Graugnard authorizes and instructs the 'Sheriff to discontinue the writ in so far as the said four notes each [330]*330for §3000 are concerned, he in no manner abandons his mortgage rights in Pike’s Peak plantation or the proceeds to satisfy any balance which may be dne him on said four notes of §3000, after the-sale of the Burbridge plantation.”

The sheriff, in accordance with agreement, paid to plaintiff the five notes and interest, from the proceeds of sale of Pike’s Peak plantation, but refused to pay the fee of plaintiff’s attorney of $1270, and retained the remainder of the proceeds.

The Burbridge plantation was sold in April, 1891, by the United States Marshal, and brought $7700; the taxes, commissions and costs of planting the crop were $2180; balance, $5514.

A. F. Slangerap, a creditor of the defendant, intervened in the United States Circuit Court in the case of G-raugnard vs. Forsyth and claimed the proceeds of the sale of the Burbridge plantation to an amount sufficient to satisfy his claim.

Four thousand dollars (§4000) were retained, subject to the further-orders of the court, leaving §1514, which were paid to plaintiff and properly credited.

Pugh & Co. filed their opposition on the 6th day of March, 1891,. and claimed the proceeds to which they laid claim in the said agreement.

Plaintiff denied their right to recover, and further alleged, in his answer, that should the court recognize their right, he was entitled, to be paid the sum of §11,500 out of the proceeds in the sheriff’s-hands, leaving §4000 to be paid after the determination of the case-before the United States court.

At the instance of the plaintiff’s counsel a rule was issued against the sheriff, to show cause why the fee stipulated in the act of mortgage should not be paid to them.

That officer, jn his answer, denied their rights.

The intervenors made themselves parties, and, answering, alleged that plaintiff, in rule, had no right to stand in judgment.

Other creditors hereafter named also intervened.

The District Court rendered judgment ordering the sheriff to pay plaintiff’s claim secured by mortgage, including attorney’s fees, by preference over all. opponents, from the §12,854.20 retained by him, subject to a credit of §1514, collected by the plaintiff from the proceeds of the sale of the Burbridge plantation, and decreed that the sum of §2125 be paid to H. Kohn, M. Schwartz & Co., and Taylor [331]*331Bros., respectively, being due on amount secured by privileges recognized by the judgment, leaving an amount of more than $400 due plaintiff.

The claim of A. G-. Paynes, also an intervenor, was rejected.

Prom this judgment Pugh & Oo. are the only appellants.

Plaintiff chose to enter into an agreement, the purpose of which he declares was to avoid litigation.

He was to endeavor to secure an amount under the mortgage on Pike’s Peak plantation, which also attached to another plantation.

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Related

Raines v. Dunson
82 So. 690 (Supreme Court of Louisiana, 1918)
Board of Com'rs v. Dowdle & Windett
67 So. 324 (Supreme Court of Louisiana, 1915)

Cite This Page — Counsel Stack

Bluebook (online)
44 La. Ann. 327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/graugnard-v-forsyth-la-1892.