J. Grossman's Sons v. Chachere

67 So. 545, 136 La. 666, 1915 La. LEXIS 2051
CourtSupreme Court of Louisiana
DecidedFebruary 8, 1915
DocketNo. 20727
StatusPublished
Cited by4 cases

This text of 67 So. 545 (J. Grossman's Sons v. Chachere) 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
J. Grossman's Sons v. Chachere, 67 So. 545, 136 La. 666, 1915 La. LEXIS 2051 (La. 1915).

Opinion

PROVO STY, J.

Plaintiffs are the judgment creditors 'of the defendant Nolle Ohachere and of his mother, Mrs. Lucile Chachere. They bring this suit to set aside a sale by him to her of three tracts of land, and likewise to set aside a sale by her of the same lands and also of another tract to her daughters Mrs. Burleigh and Mrs. Smith, as being simulations designed to screen the property from the pursuit of creditors, and in the alternative, in the event said sales are held not to have been simulations, then to set them aside as in fraud of creditors, and finally, in ease neither of said demands can be maintained, then to set aside said sales on the ground that the property was sold at one-fifth less than its value.

The facts are as follows: The defendant Nolle Chachere kept a saloon in the village of Lewisburg, about a mile from Bellevue, where he and his mother, aged 65, owned adjoining tracts of land upon which they lived. His tract contained 75 acres; hers 105. He owned also the store building at Lewisburg in which he kept his saloon. With his mother lived her daughter Mrs. Burleigh and the latter’s husband, who cultivated his mother-in-law’s said land in com and cotton. On what terms, whether as tenant or otherwise, the record does not show. Her other daughter, Mrs. Smith, and the latter’s husband, lived at Sunset, about six miles from Bellevue. Mr. Smith was in the mercantile business, on a small scale, as we gather. Nolle Chachere had not been very successful in his said business; from time to time he had had to seek financial aid from his mother. In January, 1912, she signed jointly with him four notes of $250 each in favor of the plaintiff J. Grossman’s Sons, and she had lent him her signature on other notes. In May, 1912, she let him have $1,000, which she had borrowed for that purpose from the St. Landry State Bank by mortgaging her said homestead. On November 25, 1912, one of the plaintiffs in this suit, Lon A. Bernard, brought suit against her son in the district court on several notes aggregating about $250 in capital, interest, and attorney’s fees. He had then ceased making payments to his creditors. On December 3, 1912, another creditor, F. L. Sandoz, brought suit against both him and [669]*669her in the city court on a note of $131, signed by them jointly. The next day, December 4, 1912, by act passed before the lawyer notary employed by him to defend the Bernard suit in the district court, he made the sale in question to his mother. The three tracts of land are described by metes and bounds, and as having buildings and improvements upon them, and as containing, one of them, 13 acres, another, 7 acres, and the third, 55 acres; two of them contiguous to the said homestead of the vendee.

The act recites that the price is $2,990; and that in payment of it the vendee has paid $1,400 cash and assumed the payment of six notes of $265 each, given by the vendor for the purchase of the same property from Joseph Smith. Two years previously, on December 27, 1910, the said vendee, Mrs. Chachere, had sold these three tracts by the same description to Joseph Smith, father of Mr. Smith, the husband of her daughter Mrs. Smith, for $3,650, whereof $1,000 cash, and the balance on a credit secured by mortgage on the property. On February 8, 1912, Jos. Smith had sold this same property, by the same description, to Nolle Chachere at the same price of $3,650, whereof $1,265 cash, and the balance by assuming the mortgage resting upon the property in favor of his mother. This mortgage is the same which Mrs. Chachere assumed in part payment of the price of the hereinabove mentioned sale by her son to her. At about this time, Nolle Chachere sold the building in which he had kept his saloon at Lewisburg, but whether before or after this sale to his mother, the record does not show. Notwithstanding the recital to the contrary in the act of sale, Mrs. Chachere did not, as a matter of fact, pay $1,000, or any amount whatever, cash, at the passage of the act of sale; but, as she and her son testify, the $1,000 said to have been then paid cash was in reality the $1,000 she had borrowed from the St. Landry Bank and lent him; and the remaining $400 said to have been paid cash was paid only some time later, if ever at all. On December 10, 1912, the plaintiffs in this suit, J. Grossman’s Sons, filed suit in which they obtained the judgment for $1,000 and interest which they are now seeking to enforce. On January 15,1913, the defendant Mrs. Chachere borrowed $1,500 from Edward M. Boagni by mortgaging her 105-acre homestead, and out of this money paid, as she testified, the debt of $1,000 to the St. Landry Bank, and $400 to her son. On March 8, 1913, Mrs. Chachere executed an act of sale in favor of her two daughters Mrs. Burleigh and Mrs. Smith, purporting to transfer to them, in consideration of $5,000, the three tracts of land which her son had transferred to her, as well as her own homestead of 105 acres, thereby divesting herself of all property she had liable to seizure. The act recites that the said $5,000 was paid $1,-910 cash, $1,500 by assumption of the mortgage theretofore executed in favor of Edward M. Boagni, and the balance by the execution of the notes of the two daughters secured by mortgage on the property sold. On the day on which this cessio omnium bonorum was made, but only after the sale had been consummated, the citation in the suit of the plaintiffs J. Grossman’s Sons, filed months before, was served on Mrs. Chachere, as well as the citation in another suit, both of which citations had been held up by the sheriff, at the request of Nolle Chachere. He assigns on the witness stand, as the reason why he prevailed on the deputy sheriff not to serve these citations on his mother, that he had hopes, of being able to pay the debt; but the fact that the service of the citations was withheld so long, and was made just as soon as the sale had been consummated, in the evening, of the same day, is too significant for the court not to understand what the true reason was.

[1] Whether the sale to the mother was or was not intended to be a final transfer of the property, we have no doubt at all that it was [671]*671not intended to tie a mere simulation, but a real contract. We believe the mother when she testifies that she “had paid out a grpat deal for Nolle,” had “given him several thousand dollars,” had “many times signed his note and paid out all I could,” and that she “just simply took this property from him to protect the indebtedness he owed” her “and the money” she “had given him and debts” she “had paid.” Perhaps the contract was .a mere contract of security, and probably was, since no reason is otherwise assigned why Nolle Chachere should have desired to divest himself of this property which he had but recently acquired, nor the mother to reacquire it after having two years before sold it; and, moreover, there must have been due one year’s interest on the notes, unless Nolle Chachere had paid this interest in advance to his mother, the holder of the notes — a thing very unlikely, since he had been borrowing money from her — and yet this interest does not seem to have been taken into computation at all; however, the contract was, we are satisfied, a real contract, though possibly not a sale.

[2, 3] There is no positive evidence that Mrs. Chachere knew of her son’s insolvency; but we are satisfied that she did. In cases such as this, “it will not be necessary to establish positive knowledge in the obligee of such insolvency; proof of circumstances, tending to produce a strong impression that he was aware of it, will suffice.” De Blanc v. Martin, 2 Rob. 38.

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Cite This Page — Counsel Stack

Bluebook (online)
67 So. 545, 136 La. 666, 1915 La. LEXIS 2051, Counsel Stack Legal Research, https://law.counselstack.com/opinion/j-grossmans-sons-v-chachere-la-1915.