Holdane v. Sumner

82 U.S. 600, 21 L. Ed. 254, 15 Wall. 600, 1872 U.S. LEXIS 1291
CourtSupreme Court of the United States
DecidedMay 18, 1873
StatusPublished
Cited by3 cases

This text of 82 U.S. 600 (Holdane v. Sumner) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holdane v. Sumner, 82 U.S. 600, 21 L. Ed. 254, 15 Wall. 600, 1872 U.S. LEXIS 1291 (1873).

Opinion

*605 Mr. Justice BRADLEY

delivered the opinion of the court.

By the Civil Code of Louisiana, the lessor has for the payment of his rent, and other obligations of the lease, a right of pledge on the movable effects of the lessee which are found on the property leased; and in the exercise of this right, the lessor may seize the .objects which are subject to it, before the lessee takes them away, or within fifteen days after they are taken away, if they continue to be the property of the lessee, and can be identified. * This seizure is effected by means of a writ of provisional seizure, which is issued to the sheriff' upon the lessor filing a petition in the local court showing the amount of rent due, or the amount accruing on the lease, whether due or not, and swearing that he has good reason to believe that the property will be removed.

But when the goods are in custodid legis, as where they are seized by a sheriff under an execution, or are placed in the hands of a syndic under a cessio bonorum, the lessor cannot exercise this power of seizure, and does not lose his privilege by not exercising it, but said privilege attaches to the proceeds of the property in the officer’s hands. This is the immediate result of the laws directing the proceedings in such cases, and has been expressly decided by the Supreme Court of Louisiana. Sheriffs, on execution, are directed to sell subject to the privileges or special mortgages on the property sold. The syndic, under the insolvent law of 1855, is directed to sell the property absolutely, and to distribute it according to the priorities. § The curator of a decedent’s estate is required to sell the property and distribute it in the same manner. In Robinson v. McCay, Curator, ǁ the curator removed the goods from the leased premises, and then, in opposition to the lessor’s privilege, set up that he had not asserted his claim by seizure of the goods. The court said: “ The representatives of an estate can do nothing which will destroy or impair a claim existing on the deceased’s person or property at the moment of his decease. *606 In this instance the removal by the curator cannot have the effect of destroying the privilege, because the lessor could not exercise his privilege on the thing subject to it. The law makes it the duty of the former to take the property into his possession, sell it, and after the sale to settle the order of privileges contradictorily with the other creditors. The proceeds in the hand of the curator represented the thing. The want of power in the lessor to seize prevented the prescription from running against him.”

It seems that the sheriff may also sell the goods absolutely upon condition of paying the lessor his rent. If the latter apprehends any danger of the goods being sold and removed without his rent being paid, he may get a rule on the sheriff to pay the rent, or get out an -injunction. In Robinson v. Staples, * the court directed the sheriff not only to pay the lessor the rent that was then due but to reserve sufficient to pay that which was yet to accrue. The exception was taken in that ease that the lessor had not exercised his right of provisional seizure. But the court said: “It is not well argued by the plaintiff’s counsel that the lessors cannot have their privilege in this case because they did not make a provisional seizure under the statute. The proceeding was unnecessary, the property being already in custodid legis under the fieri facias. Another creditor threatened to absorb by his proceedings the lessor’s security, and if they -were not permitted to protect their privilege prospectively, the security would have been lost.” It appears from this case, as indeed the words of the Code import, that the lessor’s privilege extends to his unaccrued rent as well as to that which is due; but the purpose of quoting it here is to show that when goods are in custodid legis the lessor’s privilege attaches to the proceeds without any act of seizure on his part.

But it has been held that if the goods are not in custodid legis, or in course of legal administration, the lessor will lose his privilege, unless he enforces his remedy. Thus, in Farnet et al. v. Their Creditors, and Del Campo, Opponent, the *607 lessees becoming insolvent, an amicable meeting of their creditors was had, at which liquidators were appointed, who were to take charge of the property and act as trustees of all the creditors until the will of the foreign creditors could be ascertained. The property was thereupon removed from the leased premises and put on storage in another building. About a month afterwards one of the lessees made a regular cessio bonorum, and the lessor insisted on being placed on the tableau as a privileged creditor. The court held that as no formal assignment was made at the first meeting, it was impossible to give to an amicable arrangement of that sort the effect of a cessio bonorum, “ by which,” said the court, “ the rights of creditors are fixed at the date of the surrender. If formal assignment had been made and possession had been given, it might have created an equity in favor of Pel Campo [the lessor] against the creditors who took part in the assignment, but certainly against none others;” and the lessor’s claim was overruled, because he had suffered the fifteen days to go by without exercising his right of seizure.

Both parties cited this case; the complainants to show that if there be a regular assignment or cessio bonorum in form, the lessor’s privilege is preserved without his making a seizure; the defendants, to show that if the assignment is not regularly made, the lessor must avail himself of the remed}7 which the law gives him. In this case a regular cessio bonorum in form was made; but the Supreme Court set it aside as unauthorized by the law. The question is, whether this unauthorized cessio excused the lessors from following up their remedy, or not. From the authorities which have been cited from the Louisiana reports, it would seem to result that the lessor is only excused from making a seizure in order to preserve his privilege, when he cannot lawfully make it in consequence of the goods being in custodid legis; in other words, when he is prevented from making it by the act of the law. If, in the present case, the proceedings taken by the Belleville Iron Works Company were absolutely void, the lessors were not precluded from seizing the property; if only voidable, they were precluded. *608

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Cite This Page — Counsel Stack

Bluebook (online)
82 U.S. 600, 21 L. Ed. 254, 15 Wall. 600, 1872 U.S. LEXIS 1291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holdane-v-sumner-scotus-1873.