La Gourgue v. Summers

8 Rob. 175
CourtSupreme Court of Louisiana
DecidedJune 15, 1844
StatusPublished
Cited by3 cases

This text of 8 Rob. 175 (La Gourgue v. Summers) 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
La Gourgue v. Summers, 8 Rob. 175 (La. 1844).

Opinion

Simon, J.

The plaintiff is appellant from a judgment discharging a rule which he had obtained on the sheriff of the parish of Orleans, to show cause why he should not pay over to him the money in his hands, seized under the writ oí fieri facials issued in this cause, as appears by his return thereon ; and further praying that Dawson & Co., and G. T. Laguerenne, two of the defendant’s judgment creditors, might be notified of the rule.

The plaintiff obtained judgment against the defendant Summers, on the 17th' November, 1840, for the sum of $525, with interest and costs, which judgment appears to have been duly recorded in the office of the recorder of mortgages ; and an execution having been issued thereon, the same was levied on the 21st of October, 1843, by the sheriff of the parish of Orleans, on the surplus in his own hands of the proceeds of the sale of the property seized and sold at the suit of Lucien Soulié v. Patrick Summers, after satisfying the judgment of the seizing creditor, said surplus amounting to $304, which the sheriff keeps subject to the order of the Parish Court.

It further appears, that the property, the surplus of the proceeds of the sale of which was seized as above stated, was seized and sold by the said sheriff, to satisfy a debt secured by special mortgage granted on the same by Summers in favor of Luden Soulié, long previous to the recording of the plaintiff’s judgment; and that the property mortgaged was sold for $2725, of which, after satisfying the claim of the seizing creditor, there remained a balance in the sheriff’s hands, amounting to the sum of $304.

The record shows, that Dawson & Co., the recording of whose judgment is anterior to plaintiff’s, having issued execution thereon, in January, 1841, caused it to be levied on a piece of real property belonging to the debtor, which was shortly afterwards sold by the sheriff at twelve months credit, for a sum much larger,than necessary to satisfy the execution. A bond was furnished in their favor by the purchaser for the amount of the debt, interest and costs, with good and sufficient surety, and special [177]*177mortgage reserved on the property sold, which bond fell due on the 6th of April, 1842.

The record shows also, that Laguerenne, whose judgment was recorded previous to the plaintiff’s, issued an execution thereon, in December, 1840, which was returned by the sheriff in March following, in these words; “ Costs satisfied, and judgment settled between the parties.*’

It further appears by a certificate of mortgage produced on the trial, and dated the 17th of October, 1843, that the property seized and sold in the suit of Soulié v. Summers, was, at the date thereof, subject to several mortgages, to wit: 1st. To the special mortgage of Soulié. 2d. To the judicial 'mortgage of Dawson & Co. 3d. To the judicial mortgage of Laguerenne; and 4th, to that of the plaintiff; and also to four other posterior judicial mortgages. But by another certificate of mortgage, also produced on the trial of this cause, and dated the 10th of April, .1844, it is declared by the recorder of mortgages, that “ there is no mortgage standing in the name of Patrick Summers, and recorded against a certain lot of ground, &c.,” the description of which is exactly the same as that of the property sold at the suit of Soulié, and the balance of the proceeds of the sale of which is now in controversy.

With these facts before us, it is contended by the appellees, that the funds in the hands of the sheriff ought to be applied to the satisfaction, pro tanto, of their judgments, the recording of which is anterior to that of the plaintiff’s; that the funds represent Summers’s property, on which their mortgage stood ; and must be distributed according to law, and not be paid over to the fourth mortgagee, whilst the second and third are not satisfied.

On the other hand, the appellant insists, that he is entitled to the benefit of his seizure, and that the sheriff is bound to pay over to him the amount upon which his execution was levied.

By art. 707 of the Code of Practice, if the seizing creditor has a special mortgage on the property seized, which is preferable or anterior to other mortgages existing on the property, the sheriff can • only require the purchaser to pay the price, to the amount of the seizing creditor’s mortgage, and the purchaser keeps the surplus [178]*178of said price, to be by him applied to paying the inferior or subsequent special mortgages existing on the property. This article only applies to special mortgages, the owners of which can subsequently call upon the purchaser for the payment of the balance, or surplus remaining in his hands, according to their rank.

Art. 710, of the same Code, provides for the cases in which there exists a general mortgage on the property sold, resulting either from a legal or judicial mortgage, and says, that the purchaser cannot retain any fart of the price for the purpose of paying it, or refuse paying the same, unless he is in danger, by a suit already commenced against him, of being evicted, or unless he has just reason to fear that a suit will be instituted ; in which case he may retain the price, unless the suing creditor shall relieve him from the disturbance, or give him proper security against it. From the words of this article, it is obvious, that its provisions apply more particularly to judicial mortgages anterior in date to that of the suing creditor; for, as to those posterior in date, there would be no need of providing against any danger of eviction or disturbance from their existence, as they could never be an impediment to the suing creditor’s applying the proceeds of the sale of the property, first to the satisfaction of his mortgage claim ; and the subsequent mortgagees could never complain of the sale, or disturb the purchaser. Be this as it may, it is clear from this article, that the purchaser cannot retain any part of the price except in certain cases when the property sold is subject to special mortgages, other than the seizing creditor’s ; and that the amount of the price must be paid to the sheriff, without any regard to the general mortgages. Thus, the sheriff has a right to require payment of the whole price, unless there be special mortgages; and the question presents itself, what must he do with the balance, after satisfaction of the debt due to the seizing creditor 1 This question was answered by us in the case of Powell v. Kellar, (5 Robinson, 272,) in which, under what we considered to be a correct application of art. 708 of the Code of Practice, we came to the conclusion, that the safest course to be pursued was, to discharge the subsequent general mortgages to the extent of the funds in the hands of the sheriff, in order to give to the purchaser a clear and unencumbered title. [179]*179Indeed, it cannot be pretended that the debtor is entitled to receive such surplus, and to keep it for his own use, to the prejudice of his other mortgage creditors, who, perhaps, would find no other property on which their executions could be levied, and who would have no recourse against the property sold to satisfy a debt secured by an anterior mortgage. So we held again in the case of Fortier v. Slidell et al., (7 Robinson, 398,) although the features of that case, and the proceedings resorted to, were somewhat different from those of the case first above referred to.

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Cite This Page — Counsel Stack

Bluebook (online)
8 Rob. 175, Counsel Stack Legal Research, https://law.counselstack.com/opinion/la-gourgue-v-summers-la-1844.