Item Co. v. National Dyers & Cleaners, Ltd.

130 So. 879, 15 La. App. 108, 1930 La. App. LEXIS 672
CourtLouisiana Court of Appeal
DecidedNovember 17, 1930
DocketNo. 13,361
StatusPublished
Cited by16 cases

This text of 130 So. 879 (Item Co. v. National Dyers & Cleaners, Ltd.) 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
Item Co. v. National Dyers & Cleaners, Ltd., 130 So. 879, 15 La. App. 108, 1930 La. App. LEXIS 672 (La. Ct. App. 1930).

Opinion

JANVIER, J.

The Item Company, Ltd., seeks to recover for certain advertising matter published for National Dyers & Cleaners, Ltd., which concern was the sole defendant named in the original petition and which, in answer to that petition, filed a general denial.

Before the matter came up for trial, plaintiff, in a supplemental petition, alleged that while the case was pending on the trial dockét on the issue as tendered by the original petition and answer, defendant had sold all or substantially all of its machinery, fixtures, automobiles, trucks and other property owned and used in its business to Augustus E. Massey; that Massey had sold all of the said property to National Cleaning & Dyeing Company, Inc., a new corporation; that neither plaintiff nor any other creditor was notified of either of said transfers; that for this and other reasons the said transfers were in [109]*109violation of Act No. 270 of 1926 of 'Louisiana commonly known as the “Bulk Sales Act.”

In the supplemental petition it is also alleged that the sale to Massey and the sale hy Massey to National Cleaning & Dyeing Company, Inc., were not hona fide transactions, hut were in fact simulations, and that therefore plaintiff should he allowed recovery directly from the National Cleaning & Dyeing Company, Inc., the new corporation, and, in the alternative, if the said transfers were in fact real sales, then judgment should he rendered against the said Massey because of the provisions of the Bulk Sales Law.

To this second petition both Massey and National Cleaning & Dyeing Company, Inc., filed exceptions of no cause of action, and the matter is now before us on appeal hy the Item Company, plaintiff, from a judgment maintaining the said exceptions and dismissing the suit as to the defendants Massey and National Cleaning & Dyeing Company, Inc.

The contentions raised hy the exceptions, though not specifically set forth therein, are as follows:

First, that the Bulk Sales Act (Act No. 270 of 1926) applies only to a merchandising business involving the buying and selling of goods, wares, and merchandise, and < therefore has no application to such business as that conducted hy the various defendants, that of dyeing and cleaning.

Second, that even in cases in which the act is applicable, it affords protection, not to all creditors, hut only to those who have sold goods, wares, and merchandise.

In Esther R. Denekamp v. Mr. and Mrs. William F. Heisler and John D. Nix, Jr., 12 La. App. 471, 126 So. 447, 448, we were called upon to consider and pass upon the identical question presented hy plaintiff’s contention that the statute in question applies to all classes of business and is not limited to persons, firms, and corporations engaged in merchandising, and in that case we said:

“Section 1 of the act prohibits the transfer in bulk of a stock of merchandise otherwise than provided hy the act and sets forth the kind of merchandise embraced within the terms of the act as ‘the whole of a stock of merchandise, or merchandise and fixtures, or of all or of substantially all of the fixtures or equipment used or to be used in the display, manufacture, care or delivery of any goods, wares or merchandise including movable store and office fixtures, horses, wagons, automobile trucks and other vehicles or other goods or chattels of the business of the transferor shall be void as against the creditors of the transferor, unless made in conformity with the provisions of this Act.’ The only possible basis for the application of the act relied on to the transaction set forth in the petition is the use of the words ‘or other goods or chattels of the business of the transferor.’ But these words plainly relate to the goods or chattels of the same kind referred to in the detailed description. Defendant’s hoarding house business cannot he considered as merchandising within the meaning of the act. Swift v. Tempelos, 178 N. C. 487, 101 S. E. 8. 7 A. L. R. 1581; Bowen v. Quigley, 165 Mich. 337, 130 N. W. 690, 34 L. R..A. (N. S.) 218; Toxaway Hotel Co. v. Smathers, 216 U. S. 439, 30 S. Ct. 263, 54 L. Ed. 558.”

In that ease the Supreme Court granted a writ of certiorari and, after considering the case, remanded it on other grounds hut did not discuss the question presented here.

Counsel for plaintiff call to our attention the fact that one of the cases cited in our opinion in the Denekamp case has no application to the particular question presented here, which is true, that case being [110]*110cited as authority for another proposition, and counsel also suggests that the other two cases dealt with statutes by their terms restricted in their application to mercantile pursuits, and it is argued that those cases should not be considered as binding even by authority of reason because our statute is broader than those which the courts in those cases discussed.

It is true that in Swift & Co. v. Tempelos, 178 N. C. 487, 101 S. E. 8, 7 A. L. R. 1581, the statute under consideration referred solely to “the sale in bulk of a large part or the whole of a stock of merchandise.” Likewise in Bowen v. Quigley, 165 Mich. 337, 130 N. W. 690, 34 L. R. A. (N. S.) 218, the statute which the court was called upon to interpret was, by its terms, limited to the sale of “* * * a stock of merchandise, or merchandise and the fixtures pertaining to the conducting of said business.”

The Louisiana statute prohibits the sale out of the regular course of business of not only merchandise, but also fixtures and “other goods or chattels,” and it is the inclusion in the prohibition of “other goods or chattels” which forms the basis of plaintiff’s argument; it being conceded that if the- inhibition were directed against the' sale of merchandise and display fixtures only, it would be impossible to interpret the act as applying to any business other than that of selling merchandise.

However, we do not feel that by including in the inhibition the sale of “other goods or chattels” the Legislature intended to bring into the contemplation of the statute all businesses, but that the words above quoted were inserted for the purpose of bringing within the terms of the statute, not all businesses, but all property owned by any one engaged in the particular class of business contemplated, that of buying and selling merchandise.

It would be most unreasonable to interpret the act as applying to any other business than that of buying and selling, as it is manifest that any concern not engaged in such business cannot sell anything without complying with the detailed requirements of the act, because any such sale would manifestly be out of the usual course of business or trade.

A doctor is not engaged in selling merchandise.. Therefore, any sale made by a doctor is out of the usual course of his trade or business. If a doctor desired to refurnish his office, he could not sell all or substantially all of his. old furniture without first notifying all of his creditors and without otherwise complying with the detailed requirements of the statute.

A telegraph company is not engaged in buying and selling; therefore, any sale made by it is out of the usual course of its trade or business.

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Bluebook (online)
130 So. 879, 15 La. App. 108, 1930 La. App. LEXIS 672, Counsel Stack Legal Research, https://law.counselstack.com/opinion/item-co-v-national-dyers-cleaners-ltd-lactapp-1930.