National Bank of Commerce v. Sullivan

41 So. 480, 117 La. 163, 1906 La. LEXIS 664
CourtSupreme Court of Louisiana
DecidedApril 23, 1906
DocketNo. 15,737
StatusPublished
Cited by24 cases

This text of 41 So. 480 (National Bank of Commerce v. Sullivan) 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
National Bank of Commerce v. Sullivan, 41 So. 480, 117 La. 163, 1906 La. LEXIS 664 (La. 1906).

Opinion

Statement.

MONROE, J.

Plaintiff sues on three notes of $1,600, $1,500, and $4,000, dated July 9, August 16, and September 26, 1904, respectively, a'nd on open account for $1,440.25, all for advances alleged to have been made to the defendant for the purposes of the crop of 1904 on Dunbarton plantation in the parish of Concordia. It alleges that it has a privilege for the whole amount claimed, and also a right of pledge resulting from a written instrument duly recorded, and it prayed for a writ of'sequestration, and for judgment with recognition of its privilege, and pledge on the products to be seized. A writ of sequestration was accordingly issued under which certain cotton and cotton seed were seized on Dunbarton plantation and elsewhere and, thereupon, the Union Oil Company intervened, alleging that the sheriff had taken 129 tons of seed which it (intervener) had bought, paid for, and had in its possession, and praying judgment for the same with damages. To this intervention, plaintiff answered, averring that when intervener made the alleged purchase it was well aware of plaintiff’s privilege and right of pledge, and adopted the course pursued by it for the purpose of defeating the same, and it prays for judgment not [165]*165only with respect to the seed actually taken into custody by the sheriff, but, also, with respect to certain other seed which the intervener acquired possession of, not as plaintiff alleges by virtue of a sale, but by virtue of a fraudulent giving in payment by an insolvent debtor. The defendant, after moving unsuccessfully to dissolve the sequestration, filed an answer, denying the allegations of the petition, and setting up some other matters which are not insisted on and need not be considered.

The facts of the case appear to be as follows:

Defendant was regarded as a man of means, and enjoyed a good credit, and his embarrassed condition, as made known through the transactions out of which this litigation arises and more particularly, perhaps, through the litigation itself, appears to have been a matter of surprise to those with whom he was doing business. He owned a residence in Natchez, and a valuable plantation in the parish of Concordia, La., which was made up of four contiguous tracts or plantations, known as “Dunbarton,” “Fairview,” “McCarthy,” and “Ramshorn” “(or Ross & Marks),” respectively; the whole operated under one management, as one plantation, and known as “Dunbarton.” On April 18, 1904, he entered into a verbal contract with plaintiff to the effect that the latter should advance him money .to the extent of $12,000 for the making of his crop for that year. What then occurred is stated by the assistant cashier of the bank in the following language, to wit:

“He said he wanted $3,000 on that day. I told him I would let him have the $3,000, but, owing to the importance of the transaction, would not attempt to prepare the papers myself, but would have the necessary act of pledge drawn up which he could sign at a later day. He, then, before the pledge was executed, wanted $3,000 more, which we let him have, as evidenced by note dated May 31, 1904. On July 9th, I had the necessary paper and this pledge was executed, and another note for $1,600, dated July 1st [.9th] was made.”

Referring elsewhere to this matter, the witness testifies as follows:

“Q. How much had the bank advanced to Sullivan for his crop at the time the pledge was signed? A. $7,600. * * * Q. The pledge describes three notes — one for $3,000, dated April 18, 1904, one for $3,000, dated May 31, 1904, and the third for $1,600, dated July 9, 1904. Had the money evidenced by these notes been advanced to Mr. Sullivan prior to the execution of the pledge? A. It had.”

The act of pledge referred to reads in part as follows:

“Personally came * * * J. B. Sullivan * * * who declared * * * that he has this day borrowed from the * * * bank * * * the sum of $7,600 * * * to enable him * * * to cultivate, make, and produce a crop of cotton, corn, and other produce on his Dunbarton plantation * * * during the year 1904, for which amount the said James B. Sullivan has executed his three promissory notes * * * for $3,000, dated April 18, 1904, * * * for $3,000, dated May 31, 1904, * * * and for $1,000, dated July 9, 1904, * * * and the said appearer hereby declares that in order to fully secure the * * * bank * * * in the full and final payment of the said notes and said advances so •made, or that may hereafter he made, * * * he does hereby give and grant, * * * in addition to the privilege now conferred by law to the furnisher of supplies, a lien and pledge upon all the cotton, cotton seed * * * raised or produced by him, either by himself, his tenants, * * * on said plantation. It is further agreed that said J. B. Sullivan will cultivate his said crop, gather and prepare same for market as soon as practicable, and, as soon as same is prepared for market, will ship the same to the * * * bank * * * or to any commission merchant designated by them, to their account; the proceeds thereof shall be applied to the extinguishment of the advances so made, or, at the option of the * * * bank * * * shall be applied to any other or additional amount advanced that may not be secured by an act of pledge, as the bank may see fit. * * * It is agreed that this is a Louisiana contract, and the enforcement, if necessary, shall be governed by the laws of the state of Louisiana.”

About September 1st, following the foregoing, the defendant agreed with H. & O. Newman, of New Orleans, to ship to that firm his entire crop of cotton, less about 60 bales which he shipped to J. Weis & Co. of New Orleans, and when and as the cotton was picked and ginned, he shipped it accordingly —367 bales to Newman and 61 bales or 63 bales to Weis; all of which was without [167]*167plaintiff’s knowledge or consent. On September 26th or 27th he sold to the intervener for future delivery 300 tons of cotton seed from the Dunbarton crop of 1904, for which intervener paid, in advance, by honoring his drafts, of September 28th for $1,500, and of October 4th for $2,000, and this, also, was done without the knowledge or consent of plaintiff; in fact, as late as January 5th, 1905, plaintiff wrote to defendant:

“You are aware we have a crop pledge on your cotton, cotton seed, corn, etc., recorded, and this pledge promises all cotton shall be shipped for our account. Please accept this as notice that no cotton, or seed, or corn, must be shipped or sold, except for our account, until this indebtedness is satisfied.”

To which defendant replied, on January Gth:

“No cotton, or anything, will be shipped until you are paid, which will be in four or five days; some time next week.”

It is fair to say that defendant’s arrangements with H. & O. Newman had up to that time enabled him to pay to plaintiff the two notes of $3,000 each, mentioned in the act of pledge, as also a note of $3,500, which he had previously given to plaintiff in a different matter, and that he appears to have entertained the hope (which was not realized) that Newman would pay the balance of his debt to plaintiff. It was part of intervener’s understanding with defendant that it should send for the seed for which it had contracted when the river (Tensas) should have become navigable, and, on Thursday, January 18, 1905, the steamboat J. W.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Guillory v. Terra Intern., Inc.
613 So. 2d 1084 (Louisiana Court of Appeal, 1993)
City Bank and Trust Co. v. Marksville Elevator Co.
221 So. 2d 853 (Louisiana Court of Appeal, 1969)
Alexandria Production Credit Ass'n v. Horn
199 So. 430 (Louisiana Court of Appeal, 1940)
United States v. Fontenot
33 F. Supp. 629 (W.D. Louisiana, 1940)
Dunn Mercantile Co. v. Hudson
136 So. 626 (Louisiana Court of Appeal, 1931)
Buelow v. Abell
121 So. 657 (Louisiana Court of Appeal, 1928)
Sauls v. Bracy
4 La. App. 587 (Louisiana Court of Appeal, 1926)
Gournay v. Prather
4 La. App. 715 (Louisiana Court of Appeal, 1925)
Cargill v. Otwell
3 La. App. 197 (Louisiana Court of Appeal, 1925)
American Cotton Oil Co. v. Spiller Sugar Co.
108 So. 878 (Supreme Court of Louisiana, 1925)
Traylor v. Murphy
2 La. App. 593 (Louisiana Court of Appeal, 1925)
Bank of Houma v. Shaffer
101 So. 403 (Supreme Court of Louisiana, 1924)
Purity Feed Mills Co. v. Moore
93 So. 196 (Supreme Court of Louisiana, 1922)
Duke v. Crawford, Jenkins & Booth
91 So. 440 (Supreme Court of Louisiana, 1922)
Roger v. Milliken & Farwell
91 So. 143 (Supreme Court of Louisiana, 1922)
Pierson v. Carmouche
84 So. 59 (Supreme Court of Louisiana, 1920)
Pierson v. Carmouche
2 Pelt. 199 (Louisiana Court of Appeal, 1920)
Maurepas Milling Co. v. Opdenweyer - George Lumber Co.
2 Pelt. 112 (Louisiana Court of Appeal, 1918)
Union Seed & Fertilizer Co. v. J. Supple's Sons Planting Co.
71 So. 949 (Supreme Court of Louisiana, 1916)
Coguenhem v. Himalaya Planting & Mfg. Co.
73 So. 301 (Supreme Court of Louisiana, 1916)

Cite This Page — Counsel Stack

Bluebook (online)
41 So. 480, 117 La. 163, 1906 La. LEXIS 664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/national-bank-of-commerce-v-sullivan-la-1906.