Musson v. Richardson

11 Rob. 37
Supreme Court of Louisiana·Decided May 15, 1845·Published·Cited by 3 cases

Opinion

Simon, J.

The object of this suit is to obtain the nullity of a certain judgment rendered on the 13th of June, 1844, in favor of the plaintiff William Vance, against the Louisiana State Insurance Company, a corporation whose charter had expired on the 1st of May, 1835. The petitioner states, in substance, that said company was incorporated by an act of the legislature of the 6th of March, 1819, to remain in existence until the 1st of May, 1835. That the said company being still in operation, on the 22d oí December, 1834, William Vance insured, in the sum of #5,000, his commissions on goods that were to be sent and consigned to him, in the ship Springfield, at and [38]*38from Belfast to New Orleans. That the said ship having been lost, said Vance applied to the company for the amonnt of insurance, and payment being refused, instituted a suit against them for said amount, which George Eustis, Esq. was instructed to defend, but the answer was only filed on the 5th of May, 1835: That on the 1st of May, the charter expired, and that a short time previous, said company had transferred all its stock to The Louisiana State Marine and Fire Insurance Company, for a valuable consideration.That before and at the time of the dissolution of .said .company, the petitioner held twenty shares of the capital stock, of $1,000 the share, which were also sold to the said Marine and Fire Insurance Company. That one of the consequences of the sale of the stock was, that the latter should hold the old company secure against any outstanding claims and demands. :That according to the 16th section of the charter, the stockholders are- made responsible, at the time of dissolution, to the extent of their respective shares, and no further, in any suit or action then pending, or to he brought after the said dissolution. That since the 1st of May, 1835, the said Louisiana State Insurance Company had no longer any property or legal existence, and could not stand in judgment, and that if the said Yance had intended to prosecute his suit in a valid and legal manner, he should have made the stockholders of the old company, or the Louisiana State Marine and Fire Insurance Company parties defendant to the suit.

He further represents that no step whatever was ever taken in said suit, from the 5th of May, 1835, to the 13th of June, 1844, when the same was tried ex parte, and judgment rendered for the amount of the claim; that an execution was lately issued under said judgment, and although the same is nugatory, still, as the judgment might be made, under the 16th section, the basis of a claim against the petitioner, he is interested in having the same annulled and set aside as being contrary to law.

The petition proceeds to state divers facts in relation to the cession of property made to his creditors by Wm. Vance, in 1838,‘in whose schedule the claim of f 5,000 was included — to the appointment of H. D. Richardson, as syndic — to the tableaux of distribution by him filed — to the sale and adjudication of the [39]*39uncollected claims of the insolvent, made on the 23d of July, 1842, to one William Stewart, for-$165 cash, which claims amounted to $53,665 33, and in which the claim of Vance against the Louisiana State Insurance Company, is included; and further alleges that the company had a good defence to the said claim, to wit, that that the greater part of the goods which Vance was to receive on consignment were sent to him by another vessel.

The petition avers that the proceedings had in said suit were calculated to take the parties by surprise, and to defeat their de-fence j that Wm. Vance, by his cession of property, lost all title and interest in said claim ; that either his syndic, or those claiming from him ought to have made themselves parties to the suit; that said suit was placed on the jury docket, and could only be tried as a jury case ; that the counsel who had filed the original answer- was, in 1844, no longer engaged in the cause; and that the judgment never was served upon any party. It further represents that the Louisiana State Marine and Fire Insurance Company, by reason of its purchase of all the stock of the old company, is bound to protect the petitioner against the said claim, and to settle and extinguish the same, and to relieve him from the danger of the contingencies to which he is exposed. That the concerns of the said Marine and Fire Insurance Company are now administered by three commissioners, appointed for its liquidation ; and that, from the contrivances of the parties herein opposed to him, it is impossible to know for whose benefit the execution was issued, but that he believes Robert Gamble and Isaac Stewart claim to be the owners of the judgment.

Wherefore he prays that said Gamble and Stewart, and the syndic Richardson, and the three commissioners of the Louisiana State Marine and Fire Insurance Company be cited ; that the judgment complained of be annulled, and that an injunction issue, &c.

Stewart and Gamble filed separate answers, in which they disclaim, respectively, all right, title, and interest in the said judgment. A judgment by default was taken against the syn-dic ; and William Vance intervened in the suit for the purpose [40]*40only of claiming the dismissal of the injunction on divers grounds stated in his petition, and of praying that a judgment for $12,000 damages might be awarded to him against the plaintiff, and his surety in the injunction bond. This petition of intervention was excepted to by the plaintiff, on the ground that Wm. Yance, in consequence of his cession of property, has no interest in the judgment complained of; that it is not alleged that he ever re-acquired a right thereto ; and that the allegations contained in the plaintiff’s petition are true and correct. The commissioners of the Louisiana State Marine and Fire Insurance Company answered the petition of the plaintiff, and that in intervention, by pleading the general issue.

Judgment was rendered below in favor of the plaintiff, perpetuating the injunction, and annulling the judgment by him complained of; and from this judgment, William Yance has appealed.

The principal, nay the only question which this case presents, under the pleadings, is, whether the plaintiff has made out such a case as to entitle him to be relieved against the judgment upon which the execution enjoined was issued.

It cannot be doubted that, as one of the stockholders of the Louisiana State Insurance Company, whose charter expired on the 1st of May, 1835, the plaintiff has a great interest in defeating the outstanding claims which may exist against the company. His responsibility results from the 10th section,' which makes him liable in his individual and private capacity to the extent of his shares, in any suit or action pending at the time of the dissolution of the charter, orto be brought thereafter; and if the judgment complained of was shown to have been properly and legally rendered, it is obvious that the plaintiff would be bound to its satisfaction to the extent of his interest in the stock of the company. It is clear, therefore, that if he has succeeded in establishing the grounds of nullity set up in his petition against said judgment, he has a right to demand that its nullity be declared, and that the injunction issued against its execution be perpetuated.

It appears from the evidence, that the suit alluded to in the petition was brought against the company, of which the plain[41]

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Musson v. Richardson, 11 Rob. 37 (La. 1845).

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