Naef v. Vergez

72 So. 935, 140 La. 196, 1916 La. LEXIS 1871
CourtSupreme Court of Louisiana
DecidedOctober 6, 1916
DocketNo. 21908
StatusPublished

This text of 72 So. 935 (Naef v. Vergez) 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
Naef v. Vergez, 72 So. 935, 140 La. 196, 1916 La. LEXIS 1871 (La. 1916).

Opinions

Statement of the Case.

MONROE, C. J.

Defendant, upon certain allegations of conspiracy to defraud, fraud and forgery, obtained an injunction against the execution of a writ of seizure and sale, issued at the instance of plaintiff, as the holder of defendant’s note for $6,000, secured by mortgage on his property.

The case, as presented by the evidence, is as follows: Defendant owned certain lots composing the greater part of the square of ground bounded by Canal, Olympia, Gasquet, and St. Patrick streets (Gasquet street being now called Cleveland avenue), and, as far back as 1906, imposed a mortgage upon the entire property to secure a note of $4,500, and, about the time that the note fell due, he was confronted with the demands of three persons, each holding a note of that description which each asserted was the genuine instrument; the holder of one of them being represented by Thompson B. Walker, an attorney at law. We find in the evidence a reference, also, to another alleged mortgage of $7,600, in which, as in the case mentioned, the signature of defendant is said to have been forged. The result was that defendant was plunged into a litigation, which cost him a great deal of both trouble and money, and part of which was terminated by the judgment of this court in Siekmann v. Vergez, 127 La., 944, 54 South. 295, in which it was held that one of the $4,500 notes was genuine, and that the others had been forged, probably, by the notary before whom the mortgage had been executed, and who was found to have done a great deal of work of that character and sent to the penitentiary.

In order to obtain the money wherewith to pay the debt that he owed, with the fees of his counsel in the litigation thus mentioned, defendant issued his note for $15,300, bearing interest at 8 per cent., and, paying off the existing mortgage debt with the proceeds, secured the uote by a new mortgage on the same property. A few years later, being but a milkman, and finding, probably, that the interest was more than his business could well bear, he sold part of the property, and, paying the proceeds to plaintiff (who was the holder of the note), reduced the indebtedness to $13,300. In 1914, he received an offer from the Reverend Eather Lorente (on behalf, as we understand, of the diocese of the Catholic Church) of $16,000 for another portion of the property, fronting on Canal, and extending back on Olympia street, and still leaving the third portion, upon which there are several cottages in the rear; the terms of the offer being one-third cash, and the balance in one and two years represented by the notes of the purchaser secured by mortgage and privilege, which offer he accepted, his sole purpose being to pay off his debt, which he supposed he would be able to do by turning over to plaintiff the notes of the Reverend Eather for the deferred payments and so much of the cash paid by him as might be necessary. When, however, on or about March 9, 1914, the parties met at the office of the notary to consummate the sale, and plaintiff to surrender his note of $13,300, receive the Lorente notes and cash, and consent to the cancellation of his mortgage, it developed that he was unwilling to enter into that arrangement; the reason assigned being that his note bore 8 per cent, interest and the Lorente notes but 7 per cent., though plaintiff, in his testimony, states that defendant had disappointed him, and that he did not care to have any further business with him. However that may be, when he declined the proposition that was made to him, further action in the matter of the sale was suspended, and Mr. Carrere, a real estate agent, who, through Mr. Brennan, another [199]*199agent, had conducted the negotiations for Father Lorente, was called in to assist in finding some one else who would take the Lorente notes and furnish (with the cash to be paid by Lorente) the money wherewith to satisfy plaintiff’s claim and clear the property, and Mr. Carrere proposed to furnish the money for that purpose, and clear the property of plaintiff’s mortgage, and any other incumbrance, on condition that he be given a mortgage for $10,000 on so much of the property as was not to be included in the sale to Lorente, with the Lorente notes as additional security, and paid a commission of 1 percent. (or $100) on the $10,000 for his services. His proposition was not acted on immediately, but on the next day (March 10th), defendant called on him, with T. B. Walker as his legal adviser, and accepted it. After accepting it, however, defendant found that he had some objections to it, and Walker strongly advised against it and suggested that he (Walker) might make a better arrangement; and, pursuant to that suggestion, a day or two later, he took defendant to call on Emanuel Weil, where he and Weil had a conversation in which, as we think, defendant did not participate and which produced no result. He then gave defendant more advice, negotiated with plaintiff, and brought about no less than three understandings; one between defendant and himself; another between plaintiff and himself; and the third between plaintiff and defendant, which, according to his version of the matter, were as follows (referring, first, to his understanding with defendant after their interview with Carrere), to wit:

“I says, Mr. Vergez, they have got you. You are tied up. They have got you. I cannot help you. Money is tight. It is one of two things —surrender to Mr. Carrere, or [and] you will have to pay for it- — for Mr. Carrere wants a $10,000 mortgage on all of your holdings. If you can borrow $6,000 upon the two pieces back of your property you will have to make some sacrifice — how much, I don’t know. Whatever the difference will be, in order to finance you, I will, pay it, and you will know what it is, and the balance, I will use it, and, when your note becomes due, I will take care of it.” Says he, “Mr. Walker, if, to-day, I have anything at all, I can thank you for it.”

On his cross-examination, touching the same matter, he said:

“Mr. Adams, I have told you, a while ago, that Mr. Vergez— It was one of two propositions with him. This note of Mr. Naef was becoming due April 12th. Father Lorente wanted title to the property that he [defendant] had agreed to sell. Mr. Vergez was bound to make title or to be sued for specific performance. I wanted to save him from a damage suit, or specific performance, or damages. He could not turn his property over, and, certainly, the church wanted their property.’ The note of Mr. Naef was becoming due April 12th, which I told Mr. Vergez: ‘When this becomes due, I will foreclose, and my fees will he $815 and costs. The sheriff’s costs of advertising your whole property and plunging you into litigation will be God knows how much more. You will have to make sacrifices. If you mortgage your property for $6,000, I will pay Mr. Naef what he demands, and I will use the balance, whatever is there, and when your note becomes due I will take care of it.’ ”

His own particular agreement with Naef and the understanding between Naef and Vergez are stated by the witness (after saying that he had telephoned to Naef to come to his office) as follows:

“Mr. Naef came over to my office. I says: ‘Mr. Naef, you have taken a chance of lending this money when you were not even secured with your loan.’ (The witness here refers to Naef’s original loan of $15,300, secured by mortgage upon the whole property, including a portion which had been sold and of which he had received part of the proceeds before this story begins.) T will give you $1,000 if you will finance him.’ Mr. Naef says to me, ‘Mr.

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Related

Siekmann v. Vergez
54 So. 295 (Supreme Court of Louisiana, 1911)
State v. Walker
68 So. 407 (Supreme Court of Louisiana, 1915)
Succession of Harkins
2 La. Ann. 923 (Supreme Court of Louisiana, 1847)

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Bluebook (online)
72 So. 935, 140 La. 196, 1916 La. LEXIS 1871, Counsel Stack Legal Research, https://law.counselstack.com/opinion/naef-v-vergez-la-1916.