Lebovitch v. Joseph Levy & Bros.

54 So. 978, 128 La. 518, 1911 La. LEXIS 598
CourtSupreme Court of Louisiana
DecidedApril 10, 1911
DocketNo. 18,116
StatusPublished
Cited by5 cases

This text of 54 So. 978 (Lebovitch v. Joseph Levy & Bros.) 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
Lebovitch v. Joseph Levy & Bros., 54 So. 978, 128 La. 518, 1911 La. LEXIS 598 (La. 1911).

Opinion

BREAUX, C. J.

Plaintiff, Lebovitch, sued the defendants, Levy Bros. Company and others, for $15,000, on the ground that they, Levy Bros. Company and others, made damaging, false, and libelous allegations against plaintiff in a petition filed by them to have the appointment of a receiver recalled and the receiver discharged.

The petition of Levy Bros. Company and others was filed on the 24th day of August, 1909.

The plaintiff, Lebovitch, Lucius Elam, Jr., and Dr. Calvin O. Chunn were the only members of the company known as the Elam Paper & Stationery Company; each being a stockholder and a director.

Elam was president, Chunn, vice president, and plaintiff, Lebovitch, secretary and treasurer.

On August 20, 1909, the Metropolitan Bank, also a creditor, intervened in the suit to oust the receiver.

The intervening bank alleged that it is a creditor of the Elam Paper & Stationery Company in the sum of $2,000, as shown by a promissory note, dated June 11, 1909, for $1,000, payable 90 days after date, with interest, from maturity, drawn by the Elam Paper & Stationery Company through S. L-Elam, Jr., president, and indorsed by Elam, Chunn, and Lebovitch; also a like note for [521]*521the sum of $1,000, dated August 10, 1909, payable 60 days after _ date, with similar rate of interest from maturity.

The other creditors, Schumert & War-field, alleged that they are creditors in the sum of $5,145.46, besides interest.

Interveners pertinently alleged that by statements made to them as late as June 10Í 1909, it was shown that the Elam Paper & Stationery Company was in a prosperous condition.

The loan above mentioned, made by the Metropolitan Bank, was made on the day before the Elam Paper & Stationery Company adopted the resolution to apply for the appointment of a receiver.

They allege that the creditors of the Elam Paper & Stationery Company should have been heard prior to the appointment of a receiver, and that the order appointing such receiver was improvidently issued.

They also allege that they were informed by the said statement rendered to the said Metropolitan Bank on June 11, 1909, that the assets of the said corporation exceeded its liabilities by a considerable sum, and, in the event that the court should hold that there was ground for appointing a receiver, petitioners urge that a person should be appointed receiver, who was thoroughly familiar with the business in which the said Elam Paper & Stationery Company was engaged; that they are informed that Phillips, receiver, is not familiar with the line of business carried on by the said Elam Paper & Stationery Company, and, if the court determined to retain Phillips, then they asked that a co-receiver be appointed.

All the allegations which plaintiff claims were libelous and defamatory are contained in the petition in which defendants moved to have the receiver discharged. It is a different litigation from the present. These allegations were made m S. Lucíus Elam v. Elam Paper & Stationery Co., No. 90,627, district court, in which plaintiff applied for the appointment of a receiver. Plaintiff in the just cited case made the papers in the case part of their petition. They are in consequence before this court in the pending ease before us for decision.

The Elam Paper & Stationery Company answered in case 90,627, denying the verity of the allegations made in said case, and denounced them as false, untrue, and malicious.

It is said that plaintiff in the present case for decision had no authority in the suit 90,-627, district court, to control the litigation and make a defense before bringing the present suit for damages, and that in consequence he could only, in the present suit, vindicate his name from charges brought against him when the receiver was appointed in suit 90,627.

The secretary and treasurer had authority, to some extent at least, to direct the litigation in said suit. He certainly had sufficient right to be heard in order to prove that he was not amenable to the charges contained in the petition in 90,627, district court.

Besides, he might have intervened in suit 90,627, and might have sought vindication if, as he alleges, imputations were directed against him. It was his company which was attacked, and, if needful, he might have gone to the extent of intervening.

But, even without an intervention, the answer placed at issue 90,627 of the district court, the question which he brings up in this suit for decision. They were not pressed to a trial.

We are of opinion that they should have been litigated in the first suit. Before the judge who had charge of the original suit proof should have been made in support of the allegation.

In Brelet v. Mullen, 44 La. Ann. 194, 10 South. 865, this court said:

[523]*523“In order that one can maintain an action for malicious prosecution, the suit must have terminated, after trial on its merits, in favor of the accused.” Brelet v. Mullen, 44 La. Ann. 194, 10 South. 865.

In the matter of probable cause, this court decided that it has frequently been held that the discharge of an accused person by a committing magistrate is prima facie evidence of the want of probable cause, and shifts the burden of proof on the defeudant sued for malicious prosecution. Brown v. Vitter, 47 La. Ann. 607, 17 South. 193; Bornholdt v. Souillard, 36 La. Ann. 103; Plassan v. Lottery Co., 34 La. Ann. 246.

Similar proposition is stated in Whaling v. Wells, 50 La. Ann. 563, 23 South. 447, showing that importance is given to a judgment rendered in the court in charge of the litigation in that court in which the charge is- brought. Here the question is one of probable cause for making the charges vel non, and the same rule applies.

The proceedings for the appointment of a receiver gave rise to a number of issues. Not the least important was that the management had not been proper, and that there was a conversion- of property at the time of the appointment of the receiver.

Why ought not the plaintiff at that time and in that suit before the same judge have cleared himself of the charges? That was the proper time.

If there was no mismanagement and no wrong had been committed, and this had been proven, then there would have been no necessity to appoint another receiver, and, besides, it would have simplified matters very much, and then if it appeared that plaintiffs in motion in suit 90,627, district court, had acted with motive to injure and defame plaintiff in the suit .before us, it would have been time enough to bring suits for damages.

' If the two suits can be litigated at one time before one judge, there might be facts brought to light that would render a suit for damages out of all question.

But to go further into the merits:

The three officers of the company did not agree. The date of the disagreement and the cause are not disclosed.

Dr. Chunn the vice president of the company, was the dissenting member.

In three short months after it began business the company was financially embarrassed, and even insolvent.

We have seen that in August following, just a day before filing the petition for the appointment of a receiver, the president borrowed $2,000.

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Bluebook (online)
54 So. 978, 128 La. 518, 1911 La. LEXIS 598, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lebovitch-v-joseph-levy-bros-la-1911.