Lafarge v. Morgan

9 Mart. 462
CourtSupreme Court of Louisiana
DecidedMay 15, 1822
StatusPublished
Cited by6 cases

This text of 9 Mart. 462 (Lafarge v. Morgan) 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
Lafarge v. Morgan, 9 Mart. 462 (La. 1822).

Opinion

Porter, J.

delivered the opinion of the court. The plaintiff sold on the 26th March. 1820, to Samuel Packwood, a plantation and slaves, for the sum of 110,000 dollars : 25,000 dollars of which was paid in cash, and for the [519]*519balance, notes were given, indorsed bv ° . berry Dorsey. The act of sale contained; a warranty of all debts, gifts, mortgages, evictions, alienations, and other incumbrances whatever; — a declaration of the vendor, that according to the certificate of the register of mortgages, the land and twenty-nine of the negroes were hypothecated in favor of Al-bín Michel, for securing the sum of 55.000 dollars; and that he had paid 22,6136 dollars 66 cents, in discharge of it. Mention is also made of another mortgage resulting from a judgment, for the sum of 1021 dollars 87 cents.

By an instrument of the same date with the deed of conveyance just stated, the defendants, Morgan, Dorsey & Co., acknow-leged to have received of “ J. Lafarge the notes of S. Packvvood, indorsed by G. Dorsey, to the amount of 55,000 dollars, being part of the notes mentioned in the bill of sale of plantation, sold by Lafarge, to S. Packwood, held until the mortgages on said plantation are raised by said Lafarge, and when the said mortgages are raised, the notes to be returned to Lafarge. But the notes to be returned in proportion as the mortgages are raised, so [520]*520that no more in amount is to be retained than . , remains oí the mortgage uncancelled.

On the 10th of April following, this action was instituted in which the petitioner demands that the defendants be decreed to give up all the notes placed in their hands, except the sum of 16,366 dollars 66 cents; and that they [521]*521be condemned to pay him 10,000 dollars, the damages he has sustained by their breach of contract.

The defendants answered. — Admitting : the deposit for the purposes averred in the receipt: averring, that they were ready to hand over the notes whenever authorised by Packwood, and had always been willing to do so — that Packwood had instructed them there existed on the plantation divers mortgages, particularly one in favor of Albin Michel and his wife, and had forbidden them to deliver up the notes to the plaintiff

That attachments had been levied on these notes; one at the suit of Samuel Ruggles for 25,000 dollars, and the other at that of William D. Patterson for 6,666 dollars, 66 cents; and they prayed that S. Packwood, and A. Michel and wife, should be made parties, and that if damages were awarded to the plaintiff, they should be condemned to pay them.

Albin Michel was cited, but did not appear. Packwood made himself a party to the proceedings, and averred that he had expressly directed Morgan, Dorsey ⅜- Co. not to give up the notes; that they were bound as seques-trators to hold them, until all the mortgages [522]*522were raised,and the title made valid, and com- , 11 , . , píete in law; and be prajed that they might be decreed to retain them until the plantation an(j sjaves were discharged from all incum-brances or liens whatever.

The cause was tried by a jury, who found for the plaintiff, damages 4,000 dollars. On this verdict, judgment was rendered that the petitioner recover of the defendants that sum, and that they return of the notes placed in their hands, the amount of 38,633 dollars 33 cents. The defendants have appealed.

The first question to be decided, is whether the appellants are responsible, and liable to pay damages for their refusal to give up the obligations when called on. The second is, should they now be decreed to restore them.

it is a matter, perhaps, of little importance in settling the rights of the parties in this action, whether the defendants are considered depositories strictly such, or conventional se-questrators, as with some slight exceptions, not necessary to be-noticed in this case, acting in the latter capacity, without compensation, creates the same obligations, as the real contract of deposit.

[523]*523If we consider them as sequestrators acting for both parties: for Packwood, who had a great interest to prevent these notes getting into circulation improperly: for Lafarge, to whom it was important that they should not be retained after the incumbrances were raised ; their duties may be easily defined : they were obliged to hold the notes until both parties agreed to their delivery, or if they could not agree, until a court of justice decided they should be given up.

The whole circumstances of the transaction, as proved in evidence, induce us to regard the defendants as conventional seques-trators, and subject to the obligations just stated.

Should we, however, adopt the construction which the plaintiff contends for, that by the terms of the receipt the defendants undertook to return the notes and obligations on the happening of a certain event; and that in doing so they took on themselves the risk of judging whether it had in reality occurred or not, the circumstances, under which they entered into that engagement, must be considered in ascertaining what consequences follow if they committed an error in the interpretation of it. The contract was entirely gratuitous; nothing [524]*524of course will make them responsible, but . , . * gross negligence in keeping the property, or fraud in refusing to give it up. No proof of that ⅛⅛<1 has been made in the suit before us. It has not been shewn they had any interest in holding these notes, or that they acted in bad faith. By the words of the receipt they were to give up the obligations when the mortgages were cancelled. If they gave them up before they were cancelled, they violated their contract, and would have been responsible in damages to Packwood, for whose interest that condition was inserted. In what situation then (according to this doctrine) would these men, acting in good faith, have been placed ? Without reward or compensation, made responsible in damages for mistaking the law, in a matter which the courts of justice to whom it is submitted, have found difficulty in settling, after much time has been taken for reflection, and the judges have had the assistance of able counsel to aid their deliberations. This never could have been the intention of the parties, and we are all clearly satisfied the law creates no such responsibility. In regard to Packwrood, by whose directions the defendants acted, a different question [525]

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9 Mart. 462, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lafarge-v-morgan-la-1822.