Henderson v. Merchants' Mutual Insurance

25 La. Ann. 343
CourtSupreme Court of Louisiana
DecidedApril 15, 1873
DocketNo. 1848
StatusPublished

This text of 25 La. Ann. 343 (Henderson v. Merchants' Mutual Insurance) 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
Henderson v. Merchants' Mutual Insurance, 25 La. Ann. 343 (La. 1873).

Opinion

Howell, J.

On the first day of July, 1867, the plaintiff, John [344]*344Henderson, bought at sheriff’s sale, under executory process sued, out by Gilbert against J. Menard, a lot and improvements in New Orleans, for $5625, and after paying the claim of the seizing creditor, costs, and certain privileges, retained in his hands the sum of $3499 07, to be applied to the payment of the subsequent mortgages set forth in the certificate of the recorder of mortgages, read by the sheriff at the time of the sale. According to said certificate, there was a special mortgage in favor of the Merchants’ Mutual Insurance Company, for $10,000, granted by the debtor, Joseph Menard, on the twenty-ninth May, 1857, and reinscribed on the twenty-fifth June, 1867, and several judicial mortgages, resulting from judgments recorded prior to the reinscription of the above special mortgage.

Subsequent to the said purchase, the Merchants’ Insurance Company obtained an order of seizure and sale against said property, for $5000 interest and attorneys’ fees, and asked that demand of payment and notice of seizure be served on Joseph Menard and John Henderson, alleging the latter to be the holder and possessor of the property, who refuses to pay, and that demand had been made of Menard more than thirty days prior thereto; whereupon Henderson instituted this proceeding by injunction, to restrain the sale of the property, on the-following grounds:

First — The note on which the said claim is based is prescribed by five years.

Second — The mortgage securing said note is prescribed by ten years, and the reinscription after the lapse of more than ten years-could not impair the precedence of other mortgages.

Tim'd — The property having been sold under an anterior mortgage, could not be again seized and sold for an amount more than the balance of the purchase price in the hands of the purchaser.

Fourth — The order of seizure and sale issued upon insufficient evidence, in that there is no authentic evidence of the renewal or extension of the note; there is no stamp on said note; there is no allegation nor legal proof that the mortgage was inscribed in due time, the evidence of which must be stamped; there is no declaration in the affidavit or petition that the debt is due the plaintiff in the hypothecary action, and there is no allegation that ten days’ notice had been given to the third possessor. All the parties in interest are called into court to discuss their rights to the said balance of the price and a prayer ■that all mortgages be canceled.

Issue was joined as to the several parties, but it is necessary to examine the defense set up by only two, J. T'. Delmas, a judicial mortgagee, and the Merchants’ Insurance Company.

Delmas answers that, having a judgment in the Second District Court of New Orleans, amounting to $5486 73 against Joseph Menard [345]*345and the firm of Menard & Vignaud, he issued á garnishment process and seized in the hands of Henderson the sum of $3499 07, the balance of the price of the property of Menard bought by Henderson and which belonged and accrued to said Menard; that to the interrogatories propounded, Henderson admitted owing said sum, but failing to-pay, proceedings have been taken to compel him to do so ; that respondent’s judicial mortgage takes precedence of the pretended mortgage of the Merchants’ Insurance Company, which and the claim are prescribed by ten and five years, and Menard could not waive or renounce to the prejudice of respondent’s rights ; he specially denies that Menard has any other property out of which his judgment can be satisfied, and avers that by his seizure he has acquired a privilege on the funds in the purchaser’s hands; and he prays that the injunction be maintained against the insurance company and that Henderson be ordered to pay his whole claim.

The Merchants’ Insurance Company, besides the general issue, denies the validity and finality of the judgment set up by Delmas, for the reason that the consideration of the claim on which it is based was Confederate money; propounds interrogatories to him to prove the fact, and prays that his said judgment be declared null.

There was judgment dismissing the demands of all the parties, at their respective costs; and Henderson and Delmas have appealed.

We will dispose, first, of the demand of Delmas, the judicial mortgagee:

Admitting the correctness of the legal positions assumed by him, he is successfully met by the plea to the validity of his judgment, which is not yet executed. His answers to the interrogatories leave no doubt that the said judgment was based on a contract or agreement, the consideration of which was Confederate money, and is, therefore, null. To render the decree asked for by him, would be to enforce a prohibited agreement. Article 127, Constitution. The District Court did not, therefore, err in dismissing his demand.

As to the questions between the plaintiff and the Merchants’ Insurance Company, it need only be remarked, that the latter, holding the special mortgage next in rank to the one under which the property was sold, has the right, under the law and the facts of this case, to-the balance of the price and interest retained by the purchaser, who is-personally liable for its payment, and ten days’ notice is, consequently, not required. C. P. 707, et seq.; 16 La. 163. The injunction should be perpetuated, however, as to the excess.

We deem the objection as to stamps of no weight. The note having been made prior to the date of the Stamp Act, was exempt, and the extensions of payment are not such agreements as require stamps under said act. There is no evidence as to the stamp on the act of [346]*346reinscription of the mortgage; and if a stamp is necessary, the presumption is in favor of the officer. The other questions presented in the record merit no consideration.

It is, therefore, ordered that the judgment of the lower court, dismissing plaintiff’s demand, be reversed; and it is now ordered that there be judgment in his favor, with costs, perpetuating the injunction herein for the excess of defendant’s writ of seizure and sale, over and above the sum of three thousand four hundred and ninety-nine dollars and seven cents ($3499 07), and the interest thereon, at eight per cent, from first July, 1867, for which sum and interest the said order ■of seizure and sale is hereby maintained.

It is further ordered, that as thus amended, the judgment be affirmed. Costs of appeal to be paid by J. T. Delmas and the Merchants’ Mutual Insurance Company.

Rehearing refused.

Writ of error prayed for by F. Wooldridge, JB. Howard McOaléb and 'Campbell d¿ Spofford, of counsel for John T. Delmas, returnable to the Supreme Court of the United States.

On tiie Application for Writ of Error.

Ludeling, C. J.

In this case an application for a writ of error to the Supreme Court of the United States has been made on the following grounds:

First — Because it is alleged there was drawn in question the application of article 127 of the constitution of the State of Louisiana, and that, by the judgment of the Supreme Court of Louisiana, the claim ■of petitioner was rejected, in violation of article 1, section 10 of the constitution of the United States.

Second

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Bluebook (online)
25 La. Ann. 343, Counsel Stack Legal Research, https://law.counselstack.com/opinion/henderson-v-merchants-mutual-insurance-la-1873.