Morris v. Transtates Petroleum, Inc.

246 So. 2d 183, 258 La. 311, 1971 La. LEXIS 4532
Supreme Court of Louisiana·Decided March 29, 1971·No. 50543·Published·Cited by 30 cases

Opinion

SUMMERS, Justice.

C. L. Morris and E. J. Green, Jr., instituted this suit against Transtates Petroleum, Inc., seeking judgment on a promissory note, interest, attorneys’ fees and recognition of the privilege due on other notes pledged as security. Judgment was rendered on October 23, 1968 in favor of Morris and Green for $35,944.50, plus interest and attorneys’ fees and recognizing plaintiffs’ pledge and privilege. The pledged notes were sold by the sheriff, and the sum of $25,598.39 realized therefrom was applied in partial satisfaction of the principal obligation. Thereafter a writ of fieri facias issued to enforce the deficiency, and a Franks Single Pole Pulling Machine mounted on a 1958 Chevrolet 114 ton truck in Transtate’s possession was seized. This movable oil field equipment had been used by Transtates in maintenance and work-over oil well operations. Public sale by the sheriff of the pulling machine was scheduled for December 18, 1968.

On December 17, 1968, the day prior to the sheriff’s sale, Christopher C. Olmstead, Margaret L. Olmstead, Anthony S. Morris, Sr., Walter G. Robinson and Jennie Loyd Kinnard intervened claiming ownership of the seized pulling machine by virtue of alleged sale transactions with Transtates. Availing themselves of the provisions of Article 1092 of the Code of Civil Procedure, 1 intervenors sought a restraining order and injunction prohibiting the sale pending adjudication of their claim of ownership.

On these representations a temporary restraining order was signed and a rule nisi served on Morris, Green and the sheriff to show cause why a preliminary injunction should not issue restraining the sheriff’s sale.

Morris and Green answered the petition for intervention denying that the alleged *315 transactions conveyed ownership of the pulling machine to intervenors. They alleged, instead, that intervenors’ transactions with Transtates were for security purposes only and title to the pulling machine remained in Transtates, the seizure was proper and the sheriff’s sale should proceed.

The matter came for trial on May 2, 1969 on the rule to show cause why a preliminary injunction should not issue. By stipulation it was recognized that Green, having purchased Morris’ interest, was then the sole plaintiff in suit.

The trial judge rendered his decision on October 15, 1969, and, in written reasons, expressed the opinion that the transactions relied upon by intervenors to support their claim to ownership of the pulling rig were not sales but merely obligations to repay sums of money. The formal judgment dated October 22, 1969 was cast in these words:

This cause having regularly come on for trial on the rule to show cause why a preliminary injunction should not issue herein, evidence having been introduced in the form of affidavits and the testimony of witnesses, counsel for both plaintiff and intervenors being present, the law and the evidence being in favor thereof for the reasons assigned in a written opinion filed herein on October 15, 1969:
It is ordered, adjudged and decreed That there be judgment herein in favor of the plaintiff and against the intervenors rejecting the intervenors’ demands at their costs.
It is further ordered That the temporary restraining order issued herein on December 17, 1968 be dissolved and that the preliminary injunction requested be refused.
Judgment rendered the 15th day of October, 1969 and read and signed this 22nd day of October, 1969.

Intervenors filed a motion for a new trial on October 24, 1969 which was denied on November 5, 1969. Green then asserted a reconventional demand by supplemental answer claiming damages and attorneys fees for the wrongful issuance of the temporary restraining order.

On November 12, 1969 intervenors moved for a suspensive appeal which was denied; however, a devolutive appeal was granted, returnable on January 5, 1970. Intervenors then gave notice that they would apply for writs of certiorari, mandamus and prohibition. As a result the trial court granted a stay order for ten days on condition that the advertisements of the property under seizure proceed as scheduled.

In their application for writs to the Court of Appeal, Second Circuit, intervenors sought to invoke that Court’s supervisory jurisdiction, asserting that unless the *317 proceedings were stayed irreparable injury would ensue by reason of the trial court’s order refusing to grant a preliminary injunction, and its refusal to grant intervenors a suspensive appeal from that order, for the sale would occur before a devolutive appeal could be heard.

Acting on this application the Court of Appeal granted writs with stay order directing the trial judge to show cause on or before January 6, 1970 why the relief prayed for should not be granted. Green then moved to recall the writs and dissolve the stay order representing that the trial court order of October 22, 1969 dissolving the temporary restraining order and denying the preliminary injunction had become final because no timely appeal was perfected.

Green’s motion to recall was based upon Article 3612 of the Code of Civil Procedure 2 which requires that an appeal from an order or judgment relating to a preliminary injunction must be taken and a bond furnished within fifteen days from the date of the order or judgment. Green contended the motion for the suspensive appeal was untimely for it was made on November 12, 1969 and the appeal bond furnished November 19, 1969, more than fifteen days from October 22, 1969, the date of the order denying the preliminary injunction. It was also alleged that although the Court of Appeal has supervisory jurisdiction, where appeals are permitted, no writ can be granted in a matter for which the law has prescribed a delay for appeal and that delay has been allowed to run.

On the other hand, intervenors contended that the order of the trial court was a final judgment on the merits of the case and not a mere order “relating to a preliminary injunction.” Thus, intervenors argued, the delays applicable to final judgments control, and the suspensive appeal filed on November 12, 1969 (appeal bond having been furnished on November 19, 1969) was within the fifteen day delay allowed after refusal of the application for new trial on November 5, 1969, all as provided for by Article 2123 of the Code of Civil Procedure. 3

*319 On these issues the Court of Appeal found that it lacked jurisdiction. Accordingly, the writs were recalled and damages, In an amount to be determined by the trial court, were recognized to be due for the improvident issuance of writs on intervenor’s application. The case was remanded to the trial court for appropriate disposition. 234 So.2d 243. Intervenors made timely application for rehearing which was denied on March 31, 1970. Application to this Court for review was granted.

The ruling of the Court of Appeal was correct.

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Morris v. Transtates Petroleum, Inc., 246 So. 2d 183, 258 La. 311, 1971 La. LEXIS 4532 (La. 1971).

246 So. 2d 183 (Morris v. Transtates Petroleum, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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