Lake End Lumber Co. v. Walker

99 So. 598, 155 La. 783, 1924 La. LEXIS 1875
CourtSupreme Court of Louisiana
DecidedFebruary 25, 1924
DocketNo. 26391
StatusPublished
Cited by2 cases

This text of 99 So. 598 (Lake End Lumber Co. v. Walker) 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
Lake End Lumber Co. v. Walker, 99 So. 598, 155 La. 783, 1924 La. LEXIS 1875 (La. 1924).

Opinion

OVERTON, J.

The Lake End Lumber Company, a partnership, instituted this suit against Chester . J. Walker to.-recover judgment against the latter for $2,697, the alleged value of certain timber on land situated in the parish of Natchitoches, and the loss alleged to have been sustained by plaintiff in constructing a tramroad to remove the timber.

The cause of action is based on the following facts alleged by plaintiff: On March 4, 1918, defendant sold the* timber to R. T. Moore, trustee, and gave thé vendee a period of five years within which to cut and remove it. By deed' recorded on June 9, 1919. Moore, trustee, sold the timber acquired by him to the members of the plaintiff firm, granting to them the same term of five years within which to. remove it; and on June 20, 1921, an extension of time in which to cut and remove the timber was granted the members of the plaintiff firm by defendant, the extension to expire on March 4, 1928. Plaintiff, it is alleged, failed to record the act granting the extension. Defendant, it is set forth, discovered that plaintiff had .failed to record the extension, and taking advantage of his discovery sold the timber on March 29, 1923, to P. M. Gaddis. Plaintiff was actually engaged in exercising the rights conveyed to it, by cutting the timber, and laying railroad tracks to remove it, when it [786]*786was notified tfiat Gaddis claimed the ownership of the timber, and, upon investigating the public records, it is alleged, plaintiff discovered the deed to Gaddis and the fact that it had failed to record the extension which it had obtained. Defendant lived in the vicinity of the timber, and knew that plaintiff was grading the right of way for the railroad and laying the tracks, but did not notify plaintiff that he had sold the timber to Gaddis, which, had he done, would have lessened the loss and damage caused plaintiff, occasioned by constructing said railway. The petition then continues by alleging;

“That as between the said defendant and your petitioner the sale and jhe extension of time granted were binding, legal and valid, and your petitioner was the owner of said timber, subject to the right to cut and remove it at any time prior to March 4, 1028, and the said Walker (defendant) is liable to your petitioner for the value thereof as well as for the actual loss and damages petitioner has sustained by reason of his illegal and wanton act.”

The petition then sets out the various items of the loss and damage occasioned, amounting in the aggregate to the sum above stated, and concludes with a prayer for judgment for the amount of that loss and damage, with legal interest from judicial demand.

The petition, reciting the above facts, -was served on defendant. Defendant made no appearance, and, in due course judgment by default was rendered against him, though not for the full amount prayed for, but for only $2,235 thereof. It is said that due to a mishap the suit was not defended in the lower court; but, as this has nothing to do with the appeal before us, we mention it no further.

Defendant has appealed from the judgment rendered and assigns several reasons why it should be reversed.

Opinion.

If the individual members of the plaintiff firm held the legal title to the timber by mesne conveyances from defendant, though the firm had only the equitable title — in other words, if the timber or its value was in reality a partnership asset — and if defendant granted an extension of time within which to remove it, then there should be no question that, if defendant, notwithstanding the extension of time granted by him, took advantage of the failure to record the extension, or of the failure to file it for record, by selling the timber to another, after the expiration of the time originally granted, and appearing of record, but before the time, as extended, had expired, he is liable for the loss occasioned plaintiff by selling the timber the second time. This is so, because the extension, though not recorded, was nevertheless binding on defendant, though, because of the failure to file it for record, it was of no effect as to third persons, and, being binding on him, he was without right, in so far as concerns plaintiff, to ignore it, and treat the timber and the accessory rights granted as having reverted to him, by selling the timber to another.

Defendant, however, contends that, while this suit is brought by the Lake End Lumber Company for the value of the timber and for the loss sustained in constructing the tramway to remove it, yet the evidence does not show that the Lake End Lumber Company was the owner of the timber, or had the equitable title to it, at the timé he (defendant) sold to Gaddis, or had any legal or equitable claim to it at any time, and hence that the judgment rendered should be reversed.

The only evidence ^ in the record, on the question of title, is a deed from defendant to Moore, trustee, and one from Moore, trustee, to W. A. McKennon, John B. Hutchinson, and C. M. Hutchinson, and the extension of time granted by defendant to the persons 'last mentioned. At the time the deed was executed to McKennon and the Hutehinsons, they were members of the Lake [788]*788End Lumber Company, or soon afterwards organized that firm. However, if tbe Lake End Lumber Company was in existence at the time of the execution of the deed to Mc-Kennon and the Hutchinsons, its name, it may be observed, is not mentioned in the deed, nor is it mentioned in the extension. Moreover, after the execution of the deed to McKennon and the Hutchinsons, .and after the granting of the extension, but before the filing of this suit, McKennon withdrew from the partnership, and the evidence offered (parol), to prove the transfer that followed, shows that he (McKennon) sold his interest in the partnership to John B. and C. M. I-Iutchinson, his former partners, who after-wards conducted the business under the same name as that formerly used. The suit was instituted by the Lake End Lumber Company, a partnership composed of J. B. Hutchinson and C. M. Hutchinson.

In our opinion, while the evidence adduced on the confirmation of the default strongly suggests that the timber, or its value, was a firm asset, yet it does not show it with legal certainty. Had the two Hutchinsons joined in the suit to aid the firm in recovering the damages sued for, then we should feel justified in holding that, as they had thereby treated the timber, or its value, as a partnership asset, we ourselves should so consider it, in so far as their interests are concerned. However, they have not joined in the suit in any manner. Even had they done so, pretermitting all reference to the character of the evidence (parol) to show the transfer of McKennon’s interest in the timber, which, being standing timber, was an immovable, still, in so far as relates to the interest of McKennon therein, we should hardly feel justified in holding that he transferred that particular interest, in the absence of proof showing that, when MeKennon sold, the timber or its value was a partnership asset, since the only evidence as to what McKennon conveyed is that he sold his interest in the firm.

Counsel for plaintiff contend, however, that in the purchase of immovable property by a commercial partnership, as is plaintiff, it is immaterial whether the purchase be made in the name of the partnership or in the name of the partners, and they cite in support of their proposition May v. New Orleans & Carrollton Railroad Co., 44 La. Ann. 444, 10 South. 769, and Thomas v. Scott, 3 Rob. 256. Those cdses support that view, as does the case of Baca v.

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Bluebook (online)
99 So. 598, 155 La. 783, 1924 La. LEXIS 1875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lake-end-lumber-co-v-walker-la-1924.