Marks v. Germania Sav. Bank

34 So. 725, 110 La. 659, 1903 La. LEXIS 690
CourtSupreme Court of Louisiana
DecidedApril 13, 1903
DocketNo. 14,184
StatusPublished
Cited by11 cases

This text of 34 So. 725 (Marks v. Germania Sav. Bank) 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
Marks v. Germania Sav. Bank, 34 So. 725, 110 La. 659, 1903 La. LEXIS 690 (La. 1903).

Opinion

BLANCHARD, J.

Plaintiff sues to be declared the owner of certain securities alleged to be held by the defendant bank, and prays for a decree condemning the bank to surrender the same to her, or, in default of so-doing, to pay her the sum of $58,000.00, averred to be the value of the securities.

She is a married woman — the wife of Abraham F. Marks. She avers their residence to be the City of New Orleans.

She declares she sues by authority of the court, her husband having refused his authorization.

The substantial averments of her petition are:—

That as testamentary heir of her first husband, Jacob Feitag, she acquired a large-amount of property, a part of which consisted of the securities sued for, and which she describes, being negotiable bonds of certain corporations domiciled in the City of New Orleans, and of the par value of $54,300.00.

That the bonds in question were in hex-possession and under her control at the time of her marriage to A. F. Marks, and after her marriage to him she retained the administration of her separate estate, including the bonds aforesaid.

That defendant bank, a Louisiana corporation, whose domicile is in New Orleans, came into the unlawful possession of the bonds on or about August 1, 1898, without any consideration therefor to her and without hex-knowledge or consent — her information being that it received the same as security for a loan made to her husband.

[662]*662That her husband was without right or authority to pledge her separate property, under her control and administration, to secure a debt of his own; that such pledge was void; that the officers of the bank well knew the bonds were not the property of her husband, that they were her property, and were aware that he was without right or authority to pledge or dispose of them.

That under the Louisiana law the wife is prohibited from binding herself for the payment of any debt of the husband, contracted before or during the marriage, and that the pledge of her property to the bank by her husband (the bank being aware the bonds were hers) came within the said prohibition and is void.

That as soon as she was informed the bank had possession of the bonds and claimed to hold the same in pledge, she demanded the restoration thereof to her, and warned the bank not to dispose of the same.

That the bank, notwithstanding this demand and warning, refused to surrender the bonds to her, and has, she learns, sold and disposed of the same for its own benefit and account.

Defendant, in its answer, gives the history of its acquisition as pledgee of the bonds and avers its possession of the same to have been lawful and in good faith, and without knowledge ,of plaintiff’s alleged ownership; that the loan of $55,000.00 which it made to A. E. Marks was an ordinary transaction of commercial business, made in flue course, and predicated upon the faith of his possession and apparent ownership of negotiable securities payable to bearer, and which were deposited by him as security for the loan.

It then specially denies that the plaintiff, at, before or subsequent to the date of the loan to A. E. Marks, was a resident of, or domiciled in Louisiana, and, in this connection, it is charged that her allegation of a Louisiana domicile was made for the purpose of claiming the benefit of the statute law of Louisiana, which forbids married women from becoming responsible for the debts of their husbands, or of the marital community, and which equally forbids the pledge of their separate property for such debts.

The bank then avers that plaintiff and her husband were, at the time of the transactions out of which this suit has arisen, citizens Of and domiciled in either the State-of Mississippi, or the State of New York.

It then sets up that the statutes of Louisiana enacted for the protection of married women are special, personal statutes intended to apply within the State only and for the benefit of married women in the State; that no such law, whether statutory or common, obtains in either Mississippi or New York; that under the laws of those States-married women possess and enjoy the same legal capacity with regard to pledging, mortgaging, or disposing of their property, or-contracting debts, or becoming security for the debts of their husbands, or third persons, as is possessed and enjoyed by a person sid juris; and that plaintiff’s knowledge of her husband’s possession of the bonds'sued for, and of the use he made of the' same, and her consent thereto, bind her, as. to third persons, in the same manner and. to the same extent that any person of full capacity and unrestricted powers of disposition would be bound.

The court a qua decided the issue thus raised in favor of the plaintiff and from this-adverse judgment defendant prosecutes this-appeal.

Opinion.

This action is predicated upon article 2398 of the Civil Code, which declares that the wife, whether separated in property from her husband, or not separated, cannot bind herself for him, nor conjointly with him, for debts contracted by him before or during the marriage.

It is settled jurisprudence in this State that laws, such as the one just referred to,, regulating the privileges and prescribing the disabilities of married women are “personal”' statutes, purely domiciliary in character, and do not operate to the benefit of married women domiciled elsewhere than in Louisiana. Augusta Ins. Co. v. Morton, 3 La. Ann. 417; Hyman, Lichtenstein & Co. v. Schlenker & Hirsch, 44 La. Ann. 108, 10 South. 623; Baer Bros. v. Terry, 105 La. 480, 29 South. 886; Roberts v. Wilkinson, 5 La. Ann. 372.

The question of domicile, therefore, is-crucial.

If the plaintiff were a Louisiana wife dur[664]*664ing the year 1898, at the time the business •dealings between her husband and the bank, of which she complains, took place, she may invoke the protection of Civ. Code, art. 2398, provided the facts of the case bring it within the scope or reach of that law.

If, on the other hand, she were not a Louisiana wife, if she and her husband were not then domiciled in Louisiana, if their domicile were in either the State of Mississippi, or the State of New York, as averred by defendant, she may not invoke the shield of the Louisiana law referred to.

Under the laws of Mississippi there is no prohibition against a married woman pledging or mortgaging her property for the benefit of her husband, or to secure his debts, nor restriction upon her rights to give her property to him for the purpose of its being so used; and in that State the pledge of the separate property of a married woman for the benefit of her husband, or to secure his debts, and whether pledged by her, or by him with her consent, is valid and legally binds her and her separate property so pledged in the same manner and to the same extent as if she were unmarried and in all respects a person of full capacity to contract.

The same is true, in all respects, of the State of New York. There the “wife” remains sui juris in all things relative to property rights. She may make contracts and sue and be sued as any other person. See Domestic Relations Law (being chapter 48, p. 3954, of the General Laws of New York) art. 111, §§ 20, 21, 23, 26—for which see Session Laws of New York for 1896, p. 215, c. 272.

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Bluebook (online)
34 So. 725, 110 La. 659, 1903 La. LEXIS 690, Counsel Stack Legal Research, https://law.counselstack.com/opinion/marks-v-germania-sav-bank-la-1903.