Hood Motor Company, Inc. v. Lawrence

320 So. 2d 111
CourtSupreme Court of Louisiana
DecidedOctober 1, 1975
Docket55976
StatusPublished
Cited by19 cases

This text of 320 So. 2d 111 (Hood Motor Company, Inc. v. Lawrence) 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
Hood Motor Company, Inc. v. Lawrence, 320 So. 2d 111 (La. 1975).

Opinion

320 So.2d 111 (1975)

HOOD MOTOR COMPANY, INC., Plaintiff-Appellee-Relator,
v.
James W. LAWRENCE, Defendant-Appellant-Respondent.

No. 55976.

Supreme Court of Louisiana.

October 1, 1975.
Rehearing Denied October 31, 1975.

*112 Thomas L. Giraud, New Orleans, for defendant-appellant-respondent.

Joseph H. Simpson, Amite, for plaintiff-appellee-relator.

TATE, Justice.

Here contested is the validity of executory proceedings to seize and sell mortgaged property without citation or judgment. La.C.Civ.P. art. 2631 et seq. The issue before us is whether an order of seizure and sale, La.C.Civ.P. art. 2638, signed by the parish clerk of court, La.C.Civ.P. art. 283, rather than by a judge, is sufficient compliance with the federal due process requirement of judicial control of ex parte seizures. Mitchell v. W. T. Grant Company, 416 U.S. 600, 94 S.Ct. 1895, 40 L.Ed.2d 406 (1974).

For reasons to follow, we find no constitutional infirmity in executory proceedings based upon an order of seizure and sale signed by a clerk instead of by a judge.

The plaintiff creditor ("Hood Motor") initially seized a mortgaged Chevrolet and sold it by executory process. It then sued the defendant debtor Lawrence and obtained a judgment for the deficiency between the mortgage debt and the price brought at judicial sale. The debtor's chief defense is that the ex parte seizure by executory process offended the federal constitution.

On the debtor's appeal, the court of appeal reversed. 307 So.2d 143 (La.App. 1st Cir. 1974). The court denied a deficiency judgment because it held the initial seizure offended federal due process. The basis for this holding is that the order of seizure and sale was signed by the parish clerk of court, not a judge, as authorized (for parishes other than Orleans) by Article 283(2) of the Louisiana Code of Civil Procedure (1960). The code article was held unconstitutional insofar as thus providing.

We granted certiorari, 309 So.2d 678 (La.1975), because of the policy of this court to afford review of right when the intermediate court declares a statute unconstitutional. Bradford v. Department of Hospitals, 255 La. 888, 233 So.2d 553 (1970).

I.

Before we consider the narrow issue before us, we deem it advisable to advert to its statutory and jurisprudential context.

An executory proceeding in Louisiana is an in rem action derived from the *113 civil law. Buckner v. Carmack, 272 So.2d 326 (La.Sup.Ct.1973); McMahon, The Historical Development of Executory Procedure in Louisiana, 32 Tul.L.Rev. 555 (1958). By an executory proceeding, a creditor may effect ex parte "the seizure and sale of property, without previous citation and judgment, to enforce a mortgage or privilege thereon evidenced by an authentic act[1] importing a confession of judgment."[2] La.Civ.P. art. 2631.

To exercise his right to obtain an ex parte order of seizure and sale, La.C. Civ.P. art. 2638, the creditor must submit with his petition authentic evidence or its statutory equivalent "necessary to prove his right to use executory process". La.C. Civ.P. art. 2635. This requirement includes not only the instruments evidencing (1) the obligation secured by the mortgage or privilege and (2) the mortgage or privilege importing a confession of judgment, but also (3) evidence "necessary to complete the proof of plaintiff's right to use executory process." La.C.Civ.P. art. 2635.

Before the order is signed for issuance of a writ of seizure and sale, the court is required by La.C.Civ.P. art. 2638[3] to satisfy itself that the plaintiff's petition is supported by authentic evidence and other showings which affirmatively establish the right to the relief sought. Buckner v. Carmack, 272 So.2d 326 (La.1975).

(In the present case, the order was signed by the clerk of court, not a judge, as authorized by La.C.Civ.P. art. 283. The contention that the present seizure and sale under executory process is constitutionally infirm is based solely on this circumstance.)

After the order is signed, a demand for payment must be made upon the defendant, unless it has been waived by the debtor in the act of mortgage (as is often the case). La.C.Civ.P. arts. 2639, 2640. In all cases, however, after the property is seized by the sheriff, written notice of its seizure must be served upon the defendant. La.C. Civ.P. art. 2721.

The defendant may contest the order of seizure, either by a suspensive appeal or by an injunction procedure to arrest the sale. La.C.Civ.P. art. 2642.

In the latter event, the debtor is entitled to an injunction without bond on numerous grounds. La.C.Civ.P. art. 2753. They include that the debt is not due, that the act evidencing the mortgage was the product of fraud or other illegality, and that the ex parte order directing the issuance of the writ of seizure and sale was not based upon sufficient or actual authentic evidence. The debtor is entitled to a full evidentiary hearing on his contentions that the sale should not be held. Cf. American Bank & Trust Co. v. Carson Homes, Inc., 316 So.2d 732 (La.1975).

In Fuentes v. Shevin, 407 U.S. 67, 92 S. Ct. 1983, 32 L.Ed.2d 556 (1972), Florida and Pennsylvania pre-judgment replevin proceedings were held to offend federal due process of debtor's rights. Upon ex parte allegations of the creditor, these proceedings permitted a creditor to effect seizure *114 of a debtor's property without prior notice to him nor any prior opportunity for him to be heard.

Shortly thereafter, based on Fuentes, the Louisiana seizure and sale by executory process, La.C.Civ.P. arts. 2631 et seq., and the Louisiana pre-judgment sequestration procedures, La.C.Civ.P. arts. 3571 et seq., were attacked as constitutionally invalid. Neither attack was successful.

Louisiana executory proceedings were held not invalidated by Fuentes in Buckner v. Carmack, 272 So.2d 326 (La.1973). Based essentially upon the safeguards above set forth, we held that our executory proceedings afford a debtor adequate opportunity to assert defenses and objections and that issuance of the order of seizure did not rest upon the ex parte allegation of the creditor. The United States Supreme Court indicated that this result was correct when it dismissed the appeal to it "for want of a substantial federal question". Carmack v. Buckner, 417 U.S. 901, 94 S.Ct. 2594, 41 L.Ed.2d 207 (1974).

Some two weeks earlier, the United States Supreme Court had rejected Fuentes-based attacks on our Louisiana pre-trial sequestration seizure. Mitchell v. W. T. Grant Company, 416 U.S. 600, 94 S. Ct. 1895, 40 L.Ed.2d 406 (1974). The sequestration procedure gave the debtor at least the protections afforded him in executory proceedings. Based upon these safeguards (including that the writ did not issue simply upon conclusory allegations of the creditor) and the "judicial control of the process from beginning to end", 94 S. Ct. 1904-05 our high tribunal held these pre-trial seizure procedures did not offend due process, even though the debtor was afforded no opportunity to contest the seizure prior to his dispossession by it.

Both Carmack and Mitchell

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