Hancock Bank v. Alexander

237 So. 2d 669, 256 La. 643, 1970 La. LEXIS 3524
CourtSupreme Court of Louisiana
DecidedJune 29, 1970
Docket50112
StatusPublished
Cited by35 cases

This text of 237 So. 2d 669 (Hancock Bank v. Alexander) 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
Hancock Bank v. Alexander, 237 So. 2d 669, 256 La. 643, 1970 La. LEXIS 3524 (La. 1970).

Opinion

SUMMERS, Justice.

The Hancock Bank of Gulfport, Mississippi, instituted suit in Evangeline Parish *647 on July 25, 1968 against W. R. Alexander and his wife Barbara. The petition alleged that'the bank was the holder of a promissory note drawn by defendants dated August 17, 1967 in the sum of $2,945.10, with 60 percent per annum interest and 33 percent as attorneys’ fees, which was due and unpaid despite amicable demand. It was then alleged that the bank was entitled to have a 1965 Cadillac of defendants seized under a writ of sequestration on the ground that it was within the power of the defendants to conceal, dispose of, or waste the property or revenues therefrom, or remove the property from the parish during the pendency of the action.

The bank then prayed for judgment on the note, that a writ of sequestration issue and that “said sequestration be maintained, with recognition of plaintiff’s lien and privilege arising therefrom, and independently, and that plaintiff’s claim be paid in preference and priority over all other creditors upon the sale of the property seized.” The petition was verified by the bank’s attorney.

On the same day that suit was filed the Court ordered the issuance of a writ of sequestration conditioned upon the plaintiff bank furnishing bond with surety. Bond was forthwith furnished and the writ of sequestration issued immediately. On the authority of the writ thus issued the sheriff seized the Cadillac on August 2, 1968.

Then on August 18, 1968, the wife Barbara Alexander filed an answer and reconventional demand in which she admitted the signing of the note but otherwise denied the allegations of the bank’s petition. She then alleged that the sequestration was unlawful and that the seizure and detention which resulted therefrom humiliated, embarrassed and distressed her, as a consequence of which she claimed $5,000 in damage. She further alleged that she was entitled to attorneys’ fees in the sum of $1,-500 for the dissolution of the writ of sequestration. On September 9, 1968 a joint answer and reconventional demand was filed by W. R. Alexander and his wife Barbara to the same effect. Accordingly, the bank was ordered to show cause on October 14, 1968 why the writ of sequestration should not be dissolved. Answer was filed by the bank denying the allegations of the reconventional demand on September 16, 1968.

Motion for summary judgment was then filed by the bank on October 23, 1968, which was fixed and tried on November 7, 1968. Trial of the motion was had on the basis of a letter from the bank confirming the balance due on the note to be $2,084.10, a deposition of W. R. Alexander previously taken on September 23, 1968, the original of the note sued upon and a deed of trust executed in Mississippi to secure the note.

On the basis of the pleadings, the documents and the deposition, summary judg *649 ment was renderéd in favor of the bank in the sum of $2,084.10 with 33 percent of the principal amount as attorneys’ fees and with recognition of the bank’s “special mortgage” on the Cadillac. It was further ordered that the Cadillac be sold to satisfy the debt, attorneys’ fees and costs.

On January 9, 1969, the Cadillac was sold by the sheriff pursuant to the writ of sequestration already mentioned. Alexander, who as head of the community thereafter properly appeared as the defendant, moved for a devolutive appeal to the Third Circuit on February 6, 1969. There the judgment of the trial court was amended to reduce the principal amount to $2,002, and to reduce the amount of attorneys’ fees to 15 percent as stipulated in the note. All interest on the note was disallowed on the ground that the 60 percent stipulated was usurious. As amended the judgment was affirmed. On Alexander’s application we granted certiorari.

I.

Alexander’s first complaint is that the writ of sequestration was patently unlawful, for it was not issued because the bank claimed “the ownership or right to possession of property, or a mortgage, lien, or privilege thereon” as required by Article 3571 of the Code of Civil Procedure. 1 And the requisite “grounds relied upon for the issuance of the writ,” set forth in Article 3571, did not “clearly appear from specific facts shown by the petition” as required by Article 3501 of the Code. 2 Alexander also contends that the motion to dissolve the writ of sequestration was never tried, and he should have his day in court on this issue.

By a written order fixing it for trial, and according to the minutes of court, the “motion for summary judgment” was tried on November 7, 1968. Nevertheless, both the trial court and Court of Appeal granted the summary judgment, and, in addition,, they maintained the writ of sequestration. In doing so, we assume they adjudicated the issues presented by the motion to dissolve without defendant Alexander’s counsel being aware that the motion to dissolve was being consolidated with the motion for summary judgment.

In its petition the bank simply alleged an indebtedness on a promissory note, for it was not until the motion for summary *651 judgment was tried that the deed of trust was referred to or produced in the record (even if that device could be considered as a “mortgage”, “lien”, or “privilege” as contemplated by Article 3571). Such an allegation, the Court of Appeal found, failed to fulfill the requirements of Articles 3501 and 3571 of the Code. In the Court’s opinion, however, this defect could be cured by subsequent amendments, and such an amendment could be implied from the fact that the deed of trust, the note and Alexander’s testimony in the deposition to the effect that he had executed the note and deed of trust on which he owed a balance of $2,002 had been introduced in evidence without objection.

Support for this position was said to be found in Article 1154 of the Code of Civil Procedure to the effect that “When issues not raised by the pleadings are tried by express or implied consent of the parties, they shall be tried in all respects as if they had been raised in the pleadings * * * ” (Emphasis added.) Thus by not objecting to the introduction of the admission in the deposition or to the introduction of the deed of trust it is asserted the petition for sequestration was impliedly amended, or, as it is sometimes termed, “enlarged” to satisfy the failure to allege a mortgage as a grounds for the sequestration.

Article 1154 was said to overrule the earlier decisions holding that defects in the requirements for the issuance of conservatory writs could not be cured by subsequent amendment to validate the improvidently issued writ. See, e. g., Terzia v. Grand Leader, 176 La. 151, 145 So. 363 (1932); First National Bank of Natchez v. Moss, 41 La.Ann. 227, 6 So. 25 (1889); Louisiana State Board of Medical Examiners v. Sloat, 91 So.2d 412 (La.App. 1956); Salter v. Walsworth, 167 So. 494 (La.App.1936); McMahon, Preliminary Statement, Book VII, Chapter 1, La.Code Civil Proc.; La.Code Civil Proc. Art. 3501, Comment.

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Bluebook (online)
237 So. 2d 669, 256 La. 643, 1970 La. LEXIS 3524, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hancock-bank-v-alexander-la-1970.