Harz v. Gowland

62 So. 221, 133 La. 27, 1913 La. LEXIS 1992
CourtSupreme Court of Louisiana
DecidedJanuary 20, 1913
DocketNo. 19,755
StatusPublished
Cited by2 cases

This text of 62 So. 221 (Harz v. Gowland) 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
Harz v. Gowland, 62 So. 221, 133 La. 27, 1913 La. LEXIS 1992 (La. 1913).

Opinion

LAND, J.

Pursuant to article 101 of the Constitution of 1898, the judges of the Court of Appeal for the Parish of Orleans have applied to the Supreme Court for instructions as to the proper decision to be made in the above-entitled case, which is stated by them as follows, to wit:

Statement.
“On June 29, 1907, by an act before Charles G. Gill, notary public, Mrs. Joseph Q. Gowland, duly authorized by her husband, purchased from William Gowland, Jr., a certain piece of real estate in New Orleans for the sum of $3,500, $1,000 of which was paid cash and the credit portion was represented by a mortgage note for $2,500, payable one year after date, bearing 8 per cent, interest from date, June 29, 1907. The $2,500 note was purchased by Harz [29]*29on July 11, 1907, from Joseph Q. Gowland on the faith of the mortgage certificate annexed to the act of Charles G. Gill, notary, which declared that the property was freé from all mortgages and incumbrances.”
“The consideration paid Gowland by Harz was $1,500 cash, and the surrender of an unmatured mortgage note for $1,000, paraphed by Joseph Q. Gowland, notary, purporting to be' executed by one Dickson, a fictitious party, which note and mortgage proved to be fraudulent. This fraudulent note had previously been purchased for $1,000 cash by Harz from Gowland. Mr. Gill, the notary, did not obtain from the mortgage office a certificate in the name of the vendor, William Gowland, as required by article 3364, R. C. C., but he annexed to his act of mortgage a certificate originally issued in the name of George Gowland, which had after execution and delivery been transferred by J. Q. Gowland so as to erase the name George Gowla-nd and substitute therefor that of William Gowland, Jr., the vendor.
“It was subsequently discovered that the recital of the certificate annexed to the act was untrue, and that a prior mortgage for $3,000 rested on the property. The property upon which this prior mortgage rested was sold under foreclosure to satisfy the same, and the balance of proceeds of that sale left after satisfying the prior mortgage was $975.53, which was imputed in part payment on the note for $2,500 held by Harz.”
“Harz thereupon brought suit against Charles G. Gill, the officiating notary, the Fidelity & Deposit Company of Maryland, surety on his official bond, Joseph Q. Gowland and his wife, in solido, for $2,500 with interest at the rate of 8 per cent, per annum and attorney’s fees of 5 per cent, thereon, subject to a credit of $975.53. J. Q. Gowland is insolvent, and the property mortgaged was of sufficient value to pay the $2,500 note in full.”
“It is conceded by all parties that the character of Mr. Gill, the notary, is above reproach, and that his asserted liability is based exclusively on the ground of negligence or breach of statutory duty in the securing of the mortgage certificates.”
“Plaintiff’s argument is that Gill is liable for violation of duty, because he failed to obtain personally from the proper officer, and to annex to the act, a certificate in the name of the vendor, William Gowland, Jr., which, if produced, would have shown the existence of a prior mortgage for $3,000 in favor of the Crescent Building & Homestead Association. But for the false recital of the certificate upon which the plaintiff relies the latter would not have bought the note, and hence would not have suffered loss. The proximate cause of the loss sustained by the plaintiff was the failure of the notary to discharge his official duties in the manner required by the laws of the state.”
“For the same reason the surety on the notary’s official bond is liable.”
“The plaintiff claims that the notary and his surety are liable for the full amount of the debt and interest intended to be secured by the mortgage note of $2,500 less the credit of $975.53 collected already, and he cites in support of this claim the following authorities: Roehereau v. Jones, 29 La. Ann. 82; Nolan v. Labatut, 117 La. 447, 41 South. 713; Flannagan v. Spitzfaden, 7 Court of Appeal, 230, and authorities therein cited; Spiro v. Am. Bonding Co., 8 Court of Appeal, 182; Harz v. Gowland, 126 La. 674, 52 South. 986; 29 Cyc. 1091; Sutherland on Damages, p. 1334, par. 488.”
“The notary and surety, defendants, argue that they cannot be held for more than the amount paid by Harz for the $2,500 note, namely, $1,500 less the credit received at the foreclosure sale, and they further argue that the fictitious Dickson note with which he additionally parted represented a loss previously incurred by Harz through the fraud of Gowland and one in no manner due to the fault of Gill.”
“In support of this they rely upon the cases of Nolan v. Labatut, 117 La. Ann. 447, 41 South. 713, and Cluseau v. Wagner, 126 La. 375, 52 South. 547, and Harz v. Gowland, 126 La. 674, 52 South. 986, in which they claim that the 'Supreme Court found “the measure of damages to be the amount actually paid by the party in the purchase of the note and 5 per cent, interest from the date of purchase.”
“In the case of Flannagan v. Spitzfaden et al., 7 Court of Appeal, in which your honors refused a writ of review, we used the following language: ‘Under the foregoing there can be no doubt as to the surety’s liability for the loss caused the plaintiff by the act of the notary. Such loss is the amount which the plaintiff would have received had the forged note been genuine and includes the interest agreed upon as well as the principal; both are equally liquidated and could have been realized. * * * The measure of damages is the amount of the debt and interest intended to be secured by the mortgage.’ This appears to us as in accord with the general trend of jurisprudence.”
“In Harz v. Gowland, 126 La. 679, 52 South. 987, your honors said:
“ ‘The next proposition of the defendant is that, even if the notes had been genuine, plaintiff ought not to recover because there was no property in existence and the notary was insolvent. * * * There is a personal liability on the note, and a guaranty that the notary will not resort to dishonest methods in discharging the duties of his office. The fraud committed gives rise to liability, and not the partial or entire want of value, or the absence of all acts of mortgage.’ ”
“The only difference between the instant case and those cited is that the latter arose from fraud in the official act of the notary, and this case involves damages arising from a breach of statutory duty on the part of the notary. The measure of damage is necessarily the same in both cases.”
“Considering the claim made that the deci[31]*31sions in Cluseau v. Wagner and Harz v. Gowland establish a rule for measuring damages different from that established by Plannagan v. Spitzfaden, in which your honors refused, a writ of review, we have reached the conclusion that a request for instructions would be proper in the premises. We therefore submit for answer the following question:
“Question.

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Bluebook (online)
62 So. 221, 133 La. 27, 1913 La. LEXIS 1992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harz-v-gowland-la-1913.