Jackson-Hinds Bank v. Davis

244 So. 2d 633
CourtLouisiana Court of Appeal
DecidedApril 22, 1971
Docket4248
StatusPublished
Cited by6 cases

This text of 244 So. 2d 633 (Jackson-Hinds Bank v. Davis) 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
Jackson-Hinds Bank v. Davis, 244 So. 2d 633 (La. Ct. App. 1971).

Opinion

244 So.2d 633 (1971)

JACKSON-HINDS BANK
v.
Wallace M. DAVIS, Jr.

No. 4248.

Court of Appeal of Louisiana, Fourth Circuit.

February 8, 1971.
Rehearings Denied March 10, 1971.
Writs Refused April 22, 1971.

*634 David E. Hogan, New Orleans, curator ad hoc, for Wallace M. Davis, Jr., (absent defendant) defendant-appellee.

Jones, Walker, Waechter, Poitevent, Carrere & Denegre, New Orleans, for the National Bank of Commerce in New Orleans; Anthony J. Correro, III, defendant in rule, appellee.

Charles D. Lancaster, New Orleans, for Metropolitan Bank of Jefferson, defendant, appellee in rule.

Adams & Reese, Louis A. Wilson, Jr., New Orleans, for Exchange National Bank, defendant-appellee.

Phelps, Dunbar, Marks, Claverie & Sims; Louis B. Claverie and Eugene R. Preaus, New Orleans, for the Hibernia National Bank in New Orleans, defendant-appellee.

Dodge & Friend, Joseph E. Friend, New Orleans, for Jackson-Hinds Bank, plaintiff-appellant.

Before CHASEZ, LEMMON and GULOTTA, JJ.

CHASEZ, Judge.

This is an appeal from a rule ranking the claims of four banks, all creditors of defendant, Wallace M. Davis, Jr. The lower court ranked the banks in chronological order of their seizures as follows:

1) Exchange National Bank;
2) The National Bank of Commerce in New Orleans;
3) The Metropolitan Bank of Jefferson; and
4) The Jackson-Hinds Bank.

The Jackson-Hinds Bank appealed, urging that the seizures of the other three banks were invalid and that it should therefore be ranked first. The National Bank of Commerce in New Orleans, ranked second, appealed claiming to rank first and alleging that the Exchange National Bank's seizure was invalid. With respect to the two banks ranked below it, it concurred with the trial court's judgment.

The facts are not disputed. Wallace M. Davis, Jr. is a non-resident of Louisiana, presently residing in Texas. At the time of his departure from the state, he was indebted to various creditors including the plaintiff in rule herein, The Jackson-Hinds Bank. The creditors involved in the present case were pursuing defendant's interest in property inherited from his father, Wallace M. Davis. By judgment of possession, Mrs. Leona Mae Knoderer Davis, defendant's mother, was given the usufruct of certain property and her son, the defendant, was given the naked ownership. It is this interest which the banks sought to seize. The Exchange National Bank, The National Bank of Commerce in New Orleans, and the Metropolitan Bank of Jefferson effected their seizures during the administration of the succession of Wallace M. Davis and The Jackson-Hinds Bank seized after the judgment of possession and effected its seizure *635 by means of a non-resident writ of attachment.

The rule to rank the banks was precipitated by the Jackson-Hinds Bank who argued that the seizures of all three priorseizing banks were invalid because none of them complied with Revised Statutes 13:3864-3868. Jackson-Hinds further argues that the succession of Wallace M. Davis is closed and there was no mention in that succession of the seizure of any of the creditors seeking to be ranked ahead of the Jackson-Hinds Bank and that the property sought to be seized is now in the possession of the usufructuary, free and clear of any claims or lien. This is based on the contention that a seizure is terminated when the thing seized leaves the possession of the person in whose hands it was seized. In this case the property has gone from the possession of the executor to the possession of the usufructuary.

We will consider first the argument so strenuously urged by plaintiff, that the other creditors should have complied with the statutes which provide a course of action for a creditor who seeks to seize the interest of a litigant in a pending lawsuit. The statutes provide as follows:

13:3864. "When the rights and interests of a litigant in a pending lawsuit are seized, the seizing creditor shall not interfere with the progress of the suit nor thereby acquire control of the action nor be permitted to sell these rights and interest under the seizure except as provided in R.S. 13:3863 through 13:3867.
13:3865. "The seizing creditor shall have a notice of seizure served upon the parties to the suit, and the effect thereof shall be to give such seizing creditor a lien or preference on whatever is realized by his debtor out of the suit. After such notice of seizure the litigants cannot dismiss the suit or make any valid sale, compromise or adjustment of the suit to the prejudice of the seizing creditor or without his consent unless the amount to be received by the debtor in the compromise is sufficient to satisfy the seizing creditor's claim, in which event, the litigant offering the compromise must first satisfy the seizing creditor and obtain from him a release of the seizure under penalty of being liable to the creditor for the amount of his claim.
13:3866. "In the event of judgment being rendered in favor of the seized debtor, the litigant cast shall not pay the amount thereof to the debtor without first satisfying the claim of the seizing creditor, or so much thereof as is covered by the judgment, under penalty of being liable to the creditor for the amount of the judgment.
13:3867. "If the debtor whose rights and interests in a pending suit have been seized shall refuse or neglect to prosecute his cause of action, the seizing creditor may require him to show cause why the rights and interests in the suit should not be sold under the seizure, and upon hearing of the rule the court may order such sale if it appear that the debtor has failed or neglected to prosecute his cause of action to final judgment, or by appeal.
13:3868. "Where final judgment is rendered in the litigation in favor of the seized debtor and it is not paid voluntarily by the party cast, then the seizing creditor may execute on the judgment as exists in favor of his debtor, and shall be paid therefrom the amount of his claim *636 or so much as may be realized from the execution."

A cursory reading of the statutes show with no room for doubt that these statutes are not applicable to a situation such as is now before this court. These statutes deal with seizure of the rights and interest of a "litigant" in a "pending lawsuit." How may an heir who has not contested the succession be considered a "litigant" or the succession proceeding, which in most instances is not a contradictory proceeding, be deemed to be a "pending lawsuit"? Section 3865 of the statute requires notice to be served on all the "parties to the suit;" sections 3866 and 3868 deal with payment of a judgment by the "litigant cast." There is no "litigant" in this succession proceeding.

In addition, counsel for The National Bank of Commerce in New Orleans has pointed out to the court that LSA-R.S. 13:3864-3868 have as their source Louisiana Act No. 85 of 1928 and that, since the adoption of that Act, many cases have passed on the seizure of the interest of an heir in a succession and not one has required the procedure outlined in the mentioned statutes. It is, therefore, this court's opinion that an heir's right in a succession is not a litigious right within the meaning of Civil Code Article 2653 because the rights of the various persons named in the judgment of possession are not established by litigation, and that LSA-R.S.

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Bluebook (online)
244 So. 2d 633, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-hinds-bank-v-davis-lactapp-1971.