Lichtenstein v. Lyons

40 So. 454, 115 La. 1052, 1905 La. LEXIS 760
CourtSupreme Court of Louisiana
DecidedDecember 18, 1905
DocketNo. 15,603
StatusPublished
Cited by6 cases

This text of 40 So. 454 (Lichtenstein v. Lyons) 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
Lichtenstein v. Lyons, 40 So. 454, 115 La. 1052, 1905 La. LEXIS 760 (La. 1905).

Opinion

Statement.

MONROE, J.

Plaintiffs allege that they are holders and owners of two notes made by the defendant — the one for $6,457.64, dated April 19, 1898, payable March 1, 1899; the other for $2,000, dated August 3, 1898, paya[540]*540hie February 1, 1899 — each of them bearing interest at the rate of 8 per cent, per annum from maturity, being secured by mortgage, and calling for 10 per cent, attorney’s fees in case of suit. They allege that the note of April 19, 1898, was given for a debt due by the defendant to A. Kaplan; that the note of August 3, 1898, was given for a debt due to H. Lichtenstein & Son; and that plaintiffs acquired them both “in due course” and fox-value — the fact being, however, that both notes were given to H. Lichtenstein & Son in connection with contracts for advances, and that plaintiffs acquired them either as members of that firm, or as heirs of the senior partner, or in both capacities. Plaintiffs allege that there remains due to them, on account of said notes, the principal sum of $3,919.27, with interest thereon at the rate of 8 per cent, per annum, from June 4, 1902, until paid, together with 10 per cent, upon the aggregate of principal and interest, as attorney’s fees, and, “reserving their mortgage rights,” they pray for judgment accordingly.

The defendant for answer alleges in substance that the notes were given to secure advances to be made for the making of his rice crop in 1898, and that by payments made by him from time to time they have been 'extinguished. He pleads payment, novation, and usury, and prays for judgment.

It appears from the evidence that H. Lichtenstein & Son and the defendant had been engaged in business together, as factors and planter, respectively, for several years, and that, continuing in the same relation, defendant,- upon April 19, 1898, gave a note of that date, and to secure its payment pledged a like note (being the note here sued on), secured by mortgage and by pledge of certain approved claims against the parish fox-services as sheriff, as also of his rice crop, then growing, all in accordance with a written contract of even date with the note, reading in part as follows, to wit:

“In considex-ation of a line of advances made by H. Lichtenstein & Son, as evidenced by my note * * * for $6,457.64, which note is to be discounted by H. Lichtenstein & Son, and the proceeds, amounting to $6,000, placed to my credit, I agree to ship H. Lichtenstein & Son all the rice I make, ship, and control during the year 1898, the said shipments of rice to be not less than 9,680 sacks of rough rice, between this date and the maturity of this note; said H. Lichtenstein & Son to charge a commission of 2% per cent, on sales for selling said rice, as well as the other usual charges, and, in the event that ’ my shipments should fall short of the above stipulated number of sacks, I agree to pay said H. Lichtenstein & Son 10 cents per sack for each sack short. * * * An interest account shall be kept of my open account * * * at the rate of 8 per cent, per annum pro and eon. The said H. Lichtenstein & Son are authorized to apply the proceed of sales of said shipments of rice and cotton, and remittances I may make them, and other credits, either to the payment of the aforesaid note, my open account, or any other indebtedness which I may owe the said H. Lichtenstein & Son, as they may elect. Such imputation to be made at any time and in any manner they see fit. As security for the aforesaid note, * * * as well as for any other indebtedness of any kind, on open account or otherwise, to the amount of $10,000, remaining due after the close of season, and in order to secure the above amount and the faithful performance of this contract, I have pledged the following securities: [Here follows an enumeration of the securities as heretofore mentioned.] It is agreed that, should I desire to have my rice milled by the People’s Independent Rice Mill * * * and the said H. Lichtenstein & Son consent thereto, on such rice, so milled, I am to pay said H. Lichtenstein & Son a commission of ten cents per sack,” etc.

On August 3, 1898, defendant gave the note of $2,000, in connection with a similar contract, in which it was agreed that the proceeds of the discount should be $1,914.90; the note so given being secured by mortgage and by pledge of approved claims and of the crop, and the defendant agreeing to ship 2,500 sacks of rice or pay for shortage as in the previous contract. And on November 1, 1898, he gave a note for $3,075.10, the proceeds of the discount of which it was agreed should be $3,000, and bound himself to ship 2,000 sacks of rice; said note being unsecured [541]*541save by the crop lien, but the contract in accordance with which it was given being otherwise similar to those already made.

For the purposes of the trial, the plaintiff, in compliance with the defendant’s demand, produced what purport to be statements of his account taken from their books, and the defendant offered certain statements which had been furnished to him by the plaintiffs, or by Lichtenstein & Son, prior to the institution of the suit. These different statements are not altogether reconcilable with each other, nor do they altogether sustain the theory upon which the suit has been brought; it being now admitted that the note for $2,000, upon which plaintiffs in part predicate their demand, has been pa,id, and it being shown that defendant is entitled to certain credit which has not been accorded him.

The first transaction between the parties —that is to say, between the firm of H. Lichtenstein & Son and the defendant — was the discount by the firm of defendant’s note for $700, upon August 15, 1894; the proceeds of the note having been placed to the credit of defendant’s account and drawn out by him, the note having been charged at maturity to the same account, and the account having been settled by defendant’s checks to the satisfaction of Lichtenstein & Son (though, as we understand the figures, there was an error of $45 to their prejudice in the settlement). The next transaction, so far as the record shows, was on June 13, 1896, when the parties entered into a contract similar to those already mentioned, pursuant to which Lichtenstein & Son discounted defendant’s note for $1,778.55, placed the proceeds to the credit of his account, debited his account with his drafts against these proceeds, and at its maturity with the amount of the note; and pursuing a like course with reference to a note of $333.10, discounted July 2, 1896, further debited his account with $250 for shortage in shipments of rice, and credited it with payments made, amounting to $1,216.-44, leaving, as the balance due by him on January 28, 1897, the sum of $1,645.21.

On February 12, 1897, Lichtenstein & Son discounted defendant’s note for $5,467.73 and placed the proceeds, amounting to $5,000, to-the credit of his account. On February 19th following defendant drew upon the amount so credited for $1,645.21 in payment of the' balance due by him, and subsequently drew other drafts, exhausting the amount to his credit and (upon May 10, 1897) leaving unpaid the note for $5,467.73.

In June, 1897, there was a transaction involving $800, which was settled in July, save as to a matter of $6.75 in the way of interest, leaving the note of $5,467.73 still unpaid.

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Cite This Page — Counsel Stack

Bluebook (online)
40 So. 454, 115 La. 1052, 1905 La. LEXIS 760, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lichtenstein-v-lyons-la-1905.