Moriarty v. Weiss

198 So. 643, 196 La. 34, 1939 La. LEXIS 1267
CourtSupreme Court of Louisiana
DecidedMay 29, 1939
DocketNo. 33877.
StatusPublished
Cited by21 cases

This text of 198 So. 643 (Moriarty v. Weiss) 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
Moriarty v. Weiss, 198 So. 643, 196 La. 34, 1939 La. LEXIS 1267 (La. 1939).

Opinions

O’NIELL, Chief Justice.

The plaintiffs are suing to collect nine promissory notes for $3,500 each, plus the stipulated interest and attorney’s fee. The notes were signed and issued by one Samuel J. Dessalles, but the obligation to pay the notes was assumed afterwards by Sol Weiss, who is the defendant in this suit. He pleaded in defense of the suit, that his assuming of the obligation was for the protection of Dessalles only, and not for the benefit of any holder or owner of the notes; that he assumed only a contingent or conditional obligation, dependent upon the condition that Dessalles should pay certain obligations which he, the defendant, owed, and which Dessalles assumed; that Dessalles defaulted on the obligation which he assumed; and that he, the defendant, was thereby relieved of his contingent obligation to pay the Dessalles notes, held and owned by the plaintiffs in this suit. The defendant pleaded that he was discharged from his contingent obligation by a judicial decree, rendered in a suit which he brought against Dessalles. The judge *37 sustained the defendant’s plea, after hearing the evidence, and dismissed the suit. The plaintiffs are appealing from the decision.

There is no dispute about the facts of the case. On November 28, 1928, the Moriartys, who reside in Chicago, sold to Dessalles a lot of ground in New Orleans, at the corner of Tulane Avenue and South Franklin Street, now Loyola Street. The price was $45,000, of which $10,000 was paid in cash, and for the balance of the price Dessalles issued his ten promissory notes for $3,500 each, secured by a vendor’s lien and mortgage on the property. The notes were made payable to the order of the maker and were endorsed by him. They were payable in one to ten years, respectively. The note that matured on November 28, 1929, was paid. The remaining nine notes are the notes on which this suit is founded. They bear interest at 7 per cent per annum from date, payable annually, and they provide for the payment of 5 per cent attorney’s fee in case of suit. The interest is paid to July 1, 1931.

On June 28, 1930, Weiss and Dessalles entered into an executory contract, commonly called “exchange or trade agreement,” on a printed form furnished by a real estate agent. By the terms of this ex-ecutory contract, Weiss agreed to transfer to Dessalles four pieces of real estate in New Orleans, and Dessalles agreed to assume, as a part of the price, the obligation to pay certain promissory notes which Weiss owed to the Conservative Homestead Association, amounting to $16,900, secured by mortgages on the real estate which Weiss agreed to transfer to Dessalles. In the same contract, Dessalles, agreed to transfer to Weiss the Moriarty property, at the corner of Tulane Avenue and South Franklin Street, and as a part of the price of the property Weiss agreed to assume the debt represented by the remaining nine promissory notes which Dessalles owed to the Moriartys and which were secured by the vendor’s lien and mortgage on the property. The contract was a private instrument, not a notarial' act, and was not recorded.

On September 30, 1930, the executory contract, called “exchange or trade agreement,” was executed and completed by the passing of five separate notarial acts of sale between Weiss and Dessalles. Dessalles bought Weiss’ four pieces of property and assumed the payment of the $16,-900 due to the Conservative Homestead Association and secured by mortgages on the property; and Weiss bought Dessalles’ property, and assumed the payment of Dessalles’ obligation represented by the nine unpaid promissory notes held by the Moriartys,' and secured by the vendor’s lien and mortgage on the property. The-price stipulated in the act of sale by Dessalles to Weiss was $40,300. It was stated in the act that the accrued interest on the-mortgage indebtedness of $31,500 amounted to $1,837.50, making the total indebtedness 'which Weiss assumed $33,337.50.. Hence, Weiss paid the difference, $6,962.50,, in cash, to Dessalles, and he acknowledged, receipt thereof in the act of sale.

The so-called “exchange or trade agreement” was not mentioned in the act of *39 sale from Dessalles to Weiss, or in anyone of the four acts of sale from Weiss to Dessalles. Each one of the five acts of sale was made as an independent and separate transaction, without any reference to any other sale, or agreement or transaction.

On three different occasions-, as the Moriarty notes came due, Weiss asked for and obtained from the Moriartys an extension of time for the payment of the notes, and at the time of the first and second extension Weiss paid the annual interest. The extension agreements were prepared by Weiss in New Orleans, at the request of the Moriartys, and were sent by him to them, in Chicago, for their approval.

The three extension agreements were all of the same tenor, the last one of them being dated December 8, 1931, and reading as follows:

“Whereas, Sol Weiss, of New Orleans, Louisiana, has purchased the property located at the corner of Tulane Ave. and S. Franklin (Loyola) St., and
“Whereas, said Sol Weiss has assumed from Samuel J. Dessalles, the original purchaser of said property, the outstanding mortgage and vendor’s lien against the same, in favor of the Estate of Moriarty and/or the heirs thereof, and
“Whereas, the principal of said mortgage aggregates thirty-one thousand five hundred ($31,500.00) dollars, and
“Whereas, the mortgage note in the sum of thirty-five hundred ($3,500.00) dollars, representing part of said mortgage indebtedness, matured on November 28th, 1930, and
“Whereas, another mortgage note in the sum of thirty-five hundred ($3,500.00) dollars, also representing a part of said mortgage indebtedness, matured on November 28th, 1931, together with interest on the entire mortgage indebtedness, and
“Whereas, the interest on said entire mortgage indebtedness has been paid up to July 1st, 1931, and
“Whereas, by mutual agreement, the maturity of the mortgage note which matured, according to its terms, on November 28th, 1930, has been extended to November 28th, 1931,
“Therefore, for the mutual consideration given and received, it is agreed by the holders and owners of said mortgage notes that the maturity of the mortgage note of thirty-five hundred ($3,500.00) dollars which fell due on November 28th, 1930, is hereby re-extended to May 28th, 1932, and that the maturity of the mortgage note of thirty-five hundred ($3,500.-00) dollars which fell due on November 28th, 1931, is hereby extended to May 28th, 1932, and that the payment-date of the interest on said entire mortgage indebtedness is also extended to May 28th, 1932; conditioned, however, upon the payment at the expiration of this extension of the accrued interest upon the entire indebtedness up until said date, May 28th, 1932, and |the payment also of said two mortgage notes which matured, respectively, on November 28th, 1930, and November 28th, 1931.”

*41 The instrument is signed by Sol Weiss, who is the only defendant in this suit, and by Margaret Moriarty and Daniel J. Moriarty and Jennie Moriarty, who are the plaintiffs in the suit.

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Bluebook (online)
198 So. 643, 196 La. 34, 1939 La. LEXIS 1267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moriarty-v-weiss-la-1939.