Hibernia Bank & Trust Co. v. Lacoste

182 So. 314, 190 La. 162, 1938 La. LEXIS 1278
CourtSupreme Court of Louisiana
DecidedMay 30, 1938
DocketNo. 34494.
StatusPublished
Cited by5 cases

This text of 182 So. 314 (Hibernia Bank & Trust Co. v. Lacoste) 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
Hibernia Bank & Trust Co. v. Lacoste, 182 So. 314, 190 La. 162, 1938 La. LEXIS 1278 (La. 1938).

Opinion

HIGGINS, Justice.

The plaintiffs instituted foreclosure proceedings via ordinaria on a mortgage note signed by the defendant in the sum of $4,-500.00, payable one year after date and secured by a mortgage on real estate situated in the jurisdiction of the court. They prayed for service of citation on the defendant and for judgment against her for the full amount due, together with interest, attorneys’ fees and costs; for recognition of the mortgage, and for the sale of the mortgaged property at public auction, and that, out of the proceeds thereof, their claim be satisfied by preference and priority, and, if not sufficient, that the unpaid balance of the judgment be enforced against any other property of the defendant; and for all equitable and general relief.

Upon the sheriff’s return that the defendant could not be found within the ju *165 risdiction of the court, the plaintiffs filed a motion for the appointment of a curator ad hoc to represent the absentee, it being contemplated that the proceedings could be carried on contradictorily with the curator as an action in rem, the judgment to be obtained to be executory up to the value of the mortgaged property within the jurisdiction of the court. The judge appointed a curator ad hoc to represent the absentee.

The curator filed a general denial and on the trial the plaintiffs proved their case by introducing in evidence the note and the act of mortgage, which were properly identified, and testimony was offered to show that the note was due in its entirety.

The curator then filed an exception to the jurisdiction of the court ratione personae and testimony was taken showing that the defendant was a nonresident. It was argued that as the proceedings instituted by the plaintiff did not bring the property into the “gremio legis” of the court by seizure, the district judge had no right to render judgment even against the property.

Thereupon, the plaintiffs informed the trial judge they only desired to continue the proceedings in rem against the mortgaged property with the judgment to be rendered to be executory up to the value of the mortgaged property, and that, in the event the judge was of the opinion that the prayer of the petition was insufficient for that purpose, plaintiffs would amend their petition, and requested permission to do 'so. The trial judge refused to permit the amendment, maintained the exception and dismissed plaintiffs’ suit.

Plaintiffs then filed a motion for a new trial on the ground that the prayer of the petition was sufficient under which to render a judgment in rem against the mortgaged property within the jurisdiction of the court, particularly • as the greater included the lesser, and the prayer was for equitable and general relief; the judgment in no wise to constitute a personal one against the defendant.

The motion for the new trial was denied, the Court being of the opinion that it was without jurisdiction ratione personae since the action as instituted by the plaintiff was not one solely in rem, the property not having been seized.

Plaintiffs have appealed.

The act of mortgage contains the usual waiver of appraisement, pact de non alienando and confession of judgment clauses. The plaintiffs, therefore, could have proceeded via executiva, which is strictly an in rem proceeding, via ordinaria, which is also an in rem action, or, sued the defendant in personam on the note. The petition is a combination of an action via ordinaria and in personam. The plaintiffs were entitled to amend their petition as requested for the purpose of waiving the in personam nature of their demand. It was error to refuse this request. Smith et ux. v. Monroe Grocery Co., La.App., 171 So. 167; Wheeler v. Rodriguez, 13 La.App. 97, 126 So. 715; Salter v. Walsworth, La.App., 167 So. 494.

When the learned trial judge declined to permit plaintiffs to amend their petition to make it an action strictly in *167 rem, plaintiffs’ counsel, in open court, stated that it was their intention to limit the demand to the mortgaged property, which was within the jurisdiction of the court, and confine the proceedings to one via ordinaria. On motion for a new trial it was shown that the prayer of the petition asked for the recognition of the plaintiffs’ mortgage on the property in question and that it be sold and out of the proceeds thereof, its claim be paid by preference and priority. It was also pointed out that there was a prayer for equitable and general relief, plaintiffs having disclaimed and abandoned any right to a judgment in personam against the defendant, contending that the prayer was sufficient to cover their demand via ordinaria, citing Abadie v. Gluck’s Restaurant, Corp., 168 La. 241, 121 So. 757; Kinder v. Scharff et al., 125 La. 594, 51 So. 654; Legier v. Braughn, 123 La. 463, 49 So. 22; Newton v. Gray & Campbell et al., 10 La.Ann. 67. The trial judge in his reasons for judgment concedes this, but ruled against the plaintiffs solely on the ground that the property not having been seized, the court was entirely without jurisdiction, as the action was in personam. It is our opinion that the plaintiffs had the right and the court the authority and jurisdiction to convert the proceedings into a strictly via ordinaria or in rem action, without the property first being seized.

In Ouachita National Bank of Monroe v. Fuller, 159 La. 31, 105 So. 90, the plaintiff filed foreclosure proceedings via ordinaria against the defendant, alleging that he was a nonresident of this State. In the prayer of the plaintiff’s petition, it asked for the appointment of a curator ad hoc to represent the absentee and for a judgment against the defendant in the sum of $1,500.00, with interest and attorney’s fees, arid for the recognition and maintenance of the plaintiff’s lien and privilege under the act of mortgage; for the seizure and sale of the property to the highest bidder and payments of plaintiff’s claim by preference and priority from the proceeds. Plaintiff also prayed that the judgment to be obtained against the defendant was to be in -rem only.

The curator ad hoc was appointed, service of the petition and citation was made upon him and a preliminary default entered later. After the expiration of proper legal delays the plaintiff sought to confirm the default but the district judge refused to enter judgment, notwithstanding the proof, on the ground that he was without jurisdiction, because the property had not been seized and the mere appointment of the curator and citation on him was insufficient to give the court jurisdiction against an absentee. Plaintiff appealed and the Court of Appeal of the Second Circuit, under Section 25 of Article 7 of the Constitution of 1921, certified the following question to the Supreme Court:

“In view of Code of Practice Article 206 which reads as follows: '
“ ‘Citation being the essential ground of all civil actions in ordinary proceedings, the neglect of that formality annuls radically all proceedings had, unless the "defendant have voluntarily appeared to the *169 suit and answered the demand. But citation is not necessary in executory proceeding, nor when the proceedings are in rem against the thing as hereafter provided.’

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Bluebook (online)
182 So. 314, 190 La. 162, 1938 La. LEXIS 1278, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hibernia-bank-trust-co-v-lacoste-la-1938.