Holmes & Barnes v. Shawnee Milling Co.

4 La. App. 706, 1926 La. App. LEXIS 264
CourtLouisiana Court of Appeal
DecidedApril 1, 1926
DocketNo. 7841
StatusPublished

This text of 4 La. App. 706 (Holmes & Barnes v. Shawnee Milling Co.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Holmes & Barnes v. Shawnee Milling Co., 4 La. App. 706, 1926 La. App. LEXIS 264 (La. Ct. App. 1926).

Opinion

ELLIOTT, J.

Shawnee Milling Company of Topeka, Kansas, drew a sight draft on Holmes & Barnes, Ltd., of Baton Rouge, Louisiana, for $1075.00 payable to the order of the Bank of Topeka, for collection to the account of the drawer, attaching to the draft a bill of lading as security, issued to Shawnee Milling Co., for 500 barrels of meal consigned to Holmes & Barnes, Ltd., the drawee. The Bank of Topeka endorsed the draft and sent same with the bill of lading attached to Louisiana National Bank of Baton Rouge to be collected, the proceeds to be remitted to the Bank of Topeka. Holmes & Barnes, Ltd., paid the draft, received the bill of lading, and obtained the meal; but at the same time attached the price in possession of Louisiana National Bank, to the extent of $825.00 alleging that same was the property of Shawnee Milling Co., and that the said milling company was indebted to it to that extent. Shawne^ Milling Co. made no appearance in the case.

[707]*707Louisiana National Bank appeared but only to claim protection upon delivery of the funds to the party held entitled thereto.

The Bank of Topeka of Topeka, Kansas, intervened in the suit and opposed plaintiff’s demand. It alleges in its petition of intervention that while said draft recites that it is drawn' in favor of the Bank of Topeka “for collection”, in truth and fact the draft was not handled for collection but was purchased by intervenor for value in due course, together with the bill of. lading attached. That the appearance in the draft of the words “for collection” was by error caused by the use through oversight of a. printed form of collection draft in general use.

The plaintiff answered the intervention and denied the allegation of the Bank of Topeka, alleging that the money seized belongs to Shawnee Milling Co. its debtor.

The district judge for written reasons rendered judgment in favor of the plaintiff as prayed for. The Bank of Topeka has appealed.

The plaintiff expresses doubt in its brief that error in a draft, such as intervenor alleges in this case, can be corrected, even if it exists for the reason that the court here has not jurisdiction in personem over the drawer. Property within the limits of the State of Louisiana belonging to a party resident of another state, is subject to the laws of this state, C. C., Art. 9. When the right and title to such property as is in question here and it is necessary to correct an error, such as is alleged, in order that the title to the property may be determined, the court here has authority to act. If an error of the kind could not be corrected, then there is no use for the courts.

There is no merit in plaintiff’s further conteation that even if there is error in • the draft, such as intervenor alleges, it can not be corrected to the prejudice of an attaching creditor of the drawer, who has seized the proceeds before the error is discovered. The law protecting a bona fide purchaser of real estate, buying on the faith of the recorded title has no application to this case. Neither is plaintiff’s rights the same as that of a note who has acquired same for value, before maturity in due course, without notice of error in the wording.

It is well settled that an attaching creditor has no greater rights in the property attached than the debtor had at the moment of the seizure. Smith vs. Duncan and Jackson, 1 Mart. (O. S.) 26; Executors of Liddell vs. Rucker, 13 La. Ann. 570; Wilson and Company vs. Lizardi, 15 La. 255; Deloach vs. Jones, 18 La. 447; Frazier vs. Willcox, 4 Rob. 517; Bach vs. Goodrich, 9 Rob. 391; Goodhue vs. McClarty, 3 La. Ann. 56; Cammack, Squires and West vs. Floyd, 10 La. Ann. 351; Robertson, Hudson and Pullman vs. Scales and Gibson, 15 La. Ann. 545; Ober, Nanson and Company vs. Matthews, 24 La. Ann. 90; Block, Britton and Company vs. Barton, Miller and Company, 27 La. Ann. 89; Fort Pitt National Bank vs. Williams, 43 La. Ann. 418, 9 South. 117; Kern vs. Day, 45 La. Ann. 71, 12 South. 6; Grisby Const. Company vs. Colly, 124 La. 1071, 50 South. 855.

The right of an attaching creditor is similar'to that of the holder of a judicial mortgage, C. C., Art. 3328. The plaintiff therefore acquired the right and title of Shawnee Milling Co. to the proceeds of the draft as the same existed at the moment of the attachment and no more.

Plaintiff further contends that interven- or’s petition does not allege mutual error m the part of Shawnee Milling Co., and [708]*708intervenor. We think intervenor’.s allegations • and prater sufficient to justify its demand/ It' is true, intervenor did not on the trial move for a default, nor offer evidence against defendant, hut plaintiff does not' urge- that as an ' objection and stands - in defendant’s place and rights; we therefore take up the questions which concern the merits of the controversy.

The record shows close and frequent dealings between Shawnee Milling Co. and the Bank of Topeka. The draft follows in the matter of form their general course of dealing.

The cashier of the Bank of Topeka testifies that the’ words “for collection” used in the draft, were sometimes stricken out of the drafts obtained from defendant and sometimes not. This course of conduct weighs against -the alleged error in the draft in hand. The cashier and discount teller of the Bank of Topeka both testify that the Bank of Topeka purchased this draft and that the words “for collection” appearing in it are there by error and oversight due to the use of a printed blank in general use by the bank. But their evidence also shows that their bank did not purchase it in the sense that current money was paid for it, but that the bank received it at the same time with some other drafts and gave defendant credit for a sum which included it at its face value. That defendant checked out this draft, but we understand from the evidence that, there was no check against this particular draft but that an amount was checked out which included it. ’ That defendant’s ’checking account was considered overdrawn at the time the deposit was made and continued to remain overdrawn.

It does not appear from the evidence of the cashier and discount teller that the Bank of Topeka intended at the time this draft was received from defendant’s bookkeeper to make it different from the other drafts received from defendant at the same' time; but that it was received to be collected for account of defendant,' in the form in which it was drawn without any particular arrangement in regárd to it. It was drawn “for collection” and intervenor endorsed it in the same way and it is a proper inference from the evidence of intervenor’s witnesses that defendant was expected to pay interest on the amount of the draft; this one just like the others, from the time they were deposited until they were paid.

The endorsement “for collection” just as it was drawn and charge if interest is not in harmony with the purchase and error alleged by intervenor. The fact that only the cashier and discount teller were called on to testify indicates that the draft was received by them in the form drawn, without special arrangement of any kind.

The testimony of the bookkeeper of Shawnee Milling Co. taken by intervenor, does not support the conclusions of intervenor’s cashier and discount teller. The fact that defendant’s bookkeeper was the only party connected with defendant called on to testify indicates that- there was no special arrangement made concerning this draft that it was drawn in the usual form and deposited in the ■ general routine.

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4 La. App. 706, 1926 La. App. LEXIS 264, Counsel Stack Legal Research, https://law.counselstack.com/opinion/holmes-barnes-v-shawnee-milling-co-lactapp-1926.