Michelin Tire Co. v. Delcourt

150 So. 303
Louisiana Court of Appeal·Decided October 5, 1933·No. No. 1192.·Published·Cited by 2 cases

Opinion

MOUTON, Judge.

The defendant, Mrs. Camille Delcourt, signed a guaranty agreement to indemnify plaintiff company for advances it might make to Paul E. Delcourt, to any amount not to exceed $2,000.

Counsel for defendant refer to the similarity of the contract of guaranty in this case to the one referred to by the court in the case of Hibernia Bank & Trust Company v. Cancienne, 140 La. 969, 74 So. 267, L. R. A. 1917D, 402.

In our original opinion, we said that for all practical purposes these contracts carried the same obligations, and we find no reason to change our original views in reference thereto.

In that case, the court, as we read the decision, held that the guaranty which Can-cienne had signed for the benefit of the Sug *304 ar Planters Storage & Distributing Company was his debt or obligation, the same as if he had contracted it in person; otherwise it would not have been held that he was not entitled to the pleas of discussion and division accorded sureties under the articles of the Code cited in the decision.

In the case of Gilmore v. Logan et ah, 30 La. Ann. 1276, defendant had given its bond or written obligation to pay its attorneys $5,-000 for services rendered and to be rendered.

In this case the bond was given for advances made and to be made.

In that case, as in this, defendant filed a plea of three years’ prescription against the claim of the plaintiff. The court in that case found that defendant had taken the claim of the plaintiff out of the three years’ prescription by giving a bond or written obligation to plaintiff.

The court in referring to the bond said it was “an absolute promise to pay ,a specific sum of money upon the happening of a certain event — and is barred only by ten years [prescription] under C. C. art. 3544.”

It might be contended here that the bond was not given for a specific amount. Under the bond, Mrs. Camille Delcourt was bound specifically for any sum under the $2,000 fixed as the maximum amount of the bond. This brings this case within the rule stated in the 30 La. Ann. 1276, above cited.

This conclusion of the court was based on article 3538, Civil Code, where, in referring to the prescription on open accounts, it is said: “This prescription only ceases from the time * * * a note or bond [is] given,” etc.

When a bond is given on a claim on open account, the prescription invoked by defendant “ceases,” and the action to recover is prescribed by ten years.

Counsel may contend that the decision in the Gilmore Case, above cited, does not apply because therein the bond was given by defendant for his own debt, while here it was given by the defendant, Mrs. Camille Delcourt, for the obligation of Paul E. Delcourt, a third party.

Under article 3538, C. C., the prescription of three years begins to run against the account from its incipiency or the date the first goods are furnished, Pothier, vol. 2, p. 176; and, after the expiration of that period of time under our Code, the right of action in favor of the creditor expires or is prescribed. The prescription' must be reckoned from the opening of the account when it was acknowledged by the execution of the bond, as the computation of time could not be calculated from the lapse of three years because prescription would have then accrued, and could not cease to run.

If in this case Paul E. Delcourt had given his bond for $2,000 to secure the advances made to him by plaintiff company, it seems to us that the prescription of three years, which would have taken its course from the opening of the account, would have “ceased” from the time the bond was given and the right of action of plaintiff would have lapsed at the expiration' of ten years.

It is true here that the written obligation guaranteeing the payment up to $2,000 was given by Mrs. Camille Delcourt, defendant, and not by Paul E. Delcourt to whom the advances were made. As Mrs. Delcourt gave her written obligation or bond, she was certainly bound by its stipulations which effected a continuing acknowledgment of the debt as the goods were furnished and carried on the account up to the sum of $2,000. By giving the bond she made it her own debt and the prescription of three years, under article C. C. art. 3538, ceased, and plaintiff’s right of action fell under the operation of article 3544 C. C., providing for the prescription of ten years.

This conclusion is reached with due regard to article 3460, C. C., which says prescription not yet acquired cannot be renounced.

There was no renunciation of prescription in the instant ease, as the giving of the bond by Mrs. Camille Delcourt caused the prescription of three years to “cease” by operation of law, and by the effect of her written obligation, the prescriptible period of plaintiff’s action falls under the provisions of article 3544, Civil Code.

The written obligation or bond in favor of plaintiff company was signed by Mrs. Camille Delcourt, defendant, on October 20, 1926. This suit was brought in September, 1931, not quite five years after she executed the bond; hence, the suit was instituted against her prior to the expiration of ten years and within the time allowed by law. The plea of prescription of three years was erroneously maintained below.

Merits.

In our original opinion, we held that plaintiff could recover the amount claimed, which was alleged to be the sum of $1,604. Testimony of Servis, treasurer of plaintiff company, taken by commission, was offered to prove that Paul E. Delcourt owed $1,640 to secure which the bond of $2,000 had been furnished, instead of $1,604 which was claimed by plaintiff in its petition.

Counsel for defendant objected to that offer, contending that it varied and enlarged the pleadings and was therefore inadmissible. We cannot see how this proof could affect the rights of defendant, the rule being, under article 156, C. P., that plaintiff cannot possibly recover any amount over the sum of $1,604 claimed by it; and must, necessarily, lose $36, *305 the overplus of the amount demanded. The fact is that the proof was not introduced to show that Paul E. Delcourt was -owing plaintiff $1,640, as the amount asked was only for $1,604, and this is the only amount claimed, not a cent above that sum. As plaintiff made advances to Paill E. Delcourt to the amount of $1,640 as is shown by the evidence of Servis, it is certain that he owes $1,604, the sum claimed; the lesser being included in the greater.

If the objection of counsel were maintained and the suit was either dismissed or remanded, the same situation would remain, as plaintiff would have to show that the amount advanced was for $1,640, but would be limited to $1,604, as this is the amount claimed in this suit. Plaintiff could enter a remittitur for the overplus, but this would effect no change in the interests of defendant, as the excess of the sum advanced over the amount demanded is lopped off by the present judgment under article 156, C. P. The remanding of the case or its dismissal would be doing a vain thing, in which the law does not indulge, and would lead to a circuity of actions which the law abhors.

It is shown that in 1928 Paul E.

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Michelin Tire Co. v. Delcourt, 150 So. 303 (La. Ct. App. 1933).

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