Martin-Owsley, Inc. v. Philip Freitag, Inc.

12 So. 2d 270, 202 La. 554, 1943 La. LEXIS 912
CourtSupreme Court of Louisiana
DecidedFebruary 1, 1943
DocketNo. 36927.
StatusPublished
Cited by3 cases

This text of 12 So. 2d 270 (Martin-Owsley, Inc. v. Philip Freitag, Inc.) 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
Martin-Owsley, Inc. v. Philip Freitag, Inc., 12 So. 2d 270, 202 La. 554, 1943 La. LEXIS 912 (La. 1943).

Opinion

ROGERS, Justice.

Martin-Owsley, Inc., a Louisiana corporation engaged in business as an insurance agent, brought suit against Philip Freitag, Inc., a foreign corporation, to recover $10,-816.85, representing the balance of insurance premiums due for compensation 'insurance. Plaintiff alleged that the defendant corporation was not qualified to do business in this State and had no agent within the State who was designated to accept service of process, and that a writ of attachment was necessary to protect its rights. Plaintiff furnished the bond required in such cases, and certain tools and other equipment were seized by the sheriff as the property of defendant.

Shortly after plaintiff’s petition was filed, Benjamin Lutwick, of the State of New York, appeared through counsel and filed an intervention and third opposition to plaintiff’s demand, alleging his ownership of the property seized and annexing to his petition an act of sale of the property from the defendant to him. Intervenor and third opponent alleged that subsequent to his acquisition of the property, he leased it to the defendant. He prayed to be declared the owner of the property and that the attachment be dissolved. On the same day, through his counsel, the intervener and third opponent caused a rule to be issued upon plaintiff to show cause why the mover should not be permitted to bond the.,writ.’ This rule was made returnable on November 19, 1942.

After the filing of the intervention and third opposition of Lutwick, and prior to the return date fixed in his rule to bond the attachment, the defendant Philip Freitag, Inc., through counsel, filed an exception to the plaintiff’s petition alleging that defendant had qualified to do business in this State and had designated Morris P. LeCompte, with offices in the Pere Marquette Building in New Orleans, as its agent for the service of process. Defendant alleged that LeCompte had been registered as its agent with the Secretary of State and defendant annexed to its exception the certificate of the Secretary of State showing such registry. Defendant alleged that Elmo L. Evans, its superintendent of labor on whom citation was served, was not authorized to receive service of legal process on defendant’s behalf, and that the service of citation upon Evans was illegal and of no effect. Defendant prayed that its exception be maintained and that the writ of attachment be dismissed.

On the day preceding the filing of defendant’s exception to plaintiff’s original petition, plaintiff filed a supplemental and amended petition in which plaintiff increased the amount of its demand to $15,-313.10. Plaintiff alleged that since filing its original petition it had been advised by the Secretary of State that the defendant corporation had qualified to do business in *560 this State and had appointed Morris P. LeCompte of New Orleans as its agent for service of process. Plaintiff alleged that the defendant had entered into a simulated sale of its' physical assets to Benjamin Lutwick of New York for the purpose of placing its property beyond the reach of its creditors and that Lutwick had executed an act of sale of the property to the Empire Contracting Company, Inc., an alleged Louisiana corporation; that the Empire Contracting Company, Inc., “was a dummy corporation, set up for the sole purpose of having said property transferred to it in the scheme of defendant to conceal its property and prevent its attachment or seizure by creditors.” Plaintiff prayed for and obtained a writ of attachment upon giving the required bond.

Defendant, Philip Freitag, Inc., through its counsel, filed exceptions to the supplemental and amended petition, averring that the petition altered and changed the substance of plaintiffs demand as set up m the original petition; that the sales by defendant to Lutwick and by Lutwick to the Empire Contracting Company, Inc., could not be collaterally attacked on the ground that they were simulations; and that there was a non-joinder of parties defendant. Defendant prayed that the exceptions be maintained, the writ of attachment dismissed, and that plaintiff’s suit be dismissed. On the same day the defendant, Philip Freitag, Inc., reserving the benefit of its exceptions, filed an answer to plaintiff’s original and supplemental and amended petitions. At the time the supplemental and amended petition was filed and the new attachment issued, no pleadings of any kind had been filed by Philip Freitag,. Inc., the defendant.

On November 19, 1942, which was the-return day fixed in the rule filed by Lutwick, the intervener and third opponent,, for permission to bond the writ of attachment issued upon plaintiff’s original petition, the case was called for trial on the intervener’s rule and the defendant’s exceptions. All parties were present through counsel. By agreement among counsel and by direction of the court, the exceptions filed by the defendant, Philip Freitag, Inc., were argued first, it being agreed that it was proper to hear defendant on its exceptions in order to establish the relative rights of the intervener and the plaintiff. At the conclusion of the arguments, the trial judge rendered a judgment maintaining all the exceptions, dissolving both writs of attachment, and dismissing plaintiff’s suit in its entirety. Thereupon counsel for Martin-Owsley, Inc., the plaintiff, notified the trial judge that he would apply to this Court for writs of mandamus,, certiorari and prohibition. He further requested that a copy of the notice, which he dictated into the record, be served on the sheriff so that he might be made acquainted with the facts. Plaintiff’s application for writs was then made to this Court which, after due consideration, issued a writ of certiorari and a rule nisi directed to the trial judge, the defendant,, and the sheriff, ordering them to show cause -on the date fixed why the relief prayed for in relator’s petition should not be granted.

*562 The trial judge was correct in maintaining the exception filed by the defendant, Philip Freitag, Inc., to the plaintiff’s original petition. The certificate of the Secretary of State attached to the exception shows conclusively that the defendant corporation was qualified to do business in the State of Louisiana and had designated an agent within the State upon whom service of legal process should be served; hence, the service upon Elmo L. Evans, defendant’s foreman, was illegal and of no effect. Lehman v. Broussard, 45 La.Ann. 346, 12 So. 304; Burgin Bros. & McCane v. Barker Baking Co., 152 La. 1075, 95 So. 227; Fullilove v. Central State Bank, 160 La. 831, 107 So. 590.

The trial judge erred in maintaining the exceptions to the supplemental and amended petition and dismissing plaintiff’s suit. Prior to the filing of the exception to the original petition, plaintiff, by supplemental and amended petition, renewed and increased its demand against defendant. In its supplemental and amended petition, plaintiff prayed for an attachment and a citation to the defendant. Plaintiff did not rely on the writ originally issued and cause another seizure to be made under it, but resorted to a new attachment. The original writ was entirely abandoned and, in taking out the new writ, plaintiff complied with all the formalities necessary to give it validity as a separate and distinct proceeding. Proper service of citation was made upon the defendant corporation in accordance with the prayer attached to the supplemental and amended petition.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Conner v. Continental Southern Lines, Incorporated
294 So. 2d 485 (Supreme Court of Louisiana, 1974)
Colonial Buick, Inc. v. Crescent Chemical Sales, Inc.
240 So. 2d 567 (Louisiana Court of Appeal, 1970)
City of Gretna v. Gulf Distilling Corporation
21 So. 2d 884 (Supreme Court of Louisiana, 1945)

Cite This Page — Counsel Stack

Bluebook (online)
12 So. 2d 270, 202 La. 554, 1943 La. LEXIS 912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martin-owsley-inc-v-philip-freitag-inc-la-1943.