New Orleans Acid & Fertilizer Co. v. O. Guillory & Co.

42 So. 329, 117 La. 821, 1906 La. LEXIS 777
CourtSupreme Court of Louisiana
DecidedMarch 26, 1906
DocketNo. 15,831
StatusPublished
Cited by8 cases

This text of 42 So. 329 (New Orleans Acid & Fertilizer Co. v. O. Guillory & Co.) 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
New Orleans Acid & Fertilizer Co. v. O. Guillory & Co., 42 So. 329, 117 La. 821, 1906 La. LEXIS 777 (La. 1906).

Opinions

PROYOSTY, J.

This suit is brought to set aside as simulated, or at any rate fraudulent, three sales made to the three defendants, separately, by O. Guillory, a member of the merchantile firm of O. Guillory & Co., whereof plaintiffs are creditors.

The allegations are the usual ones of indebtedness, insolvency, the making of the sale for the purpose of defrauding creditors or giving an unfair preference to some of them; also that the price was less than four-fifths of the real value.

At the time of the sales, 7th and 8th December, 1904, O. Guillory & Co., was a going mercantile firm at Eunice, La., composed of O. and O. E. Guillory and Ambroise Lafleur. The firm was holding a large amount of cotton, and there had been recently a slump in the cotton _ market. O. E. Guillory and Am[823]*823broiso Lafleur had no^ individual property. O. Guillory had 806 acres of prairie land, usually cultivated in rice. The land was well fenced and had some houses or cabins on it. He had also a steam cotton gin in the town of Eunice, with the lot or lots on which it stood; also another lot, having on it the store building in which the firm ’carried on its business and a small dwelling house. In the October preceding the firm had written to one of the lflaintiffs, asking indulgence, and representing that its indebtedness ■ was $7,000, as against $20,000 of assets.

On December 7, 1904, O. Guillory and his wife and the defendant Alexander Miller, who is their son-in-law and lives just outside ■of Eunice, came together in a carriage from Eunice to Opelousas, the parish seat, a distance of 30 miles. On that day Guillory sold the 806 acres of land to Samuel and John A. Haas for $2,000 cash, plus the assumption of a mortgage of $6,000 and interest, resting on the property and represented by three notes. Samuel Haas lives at Bayou Chicot, 35 miles from Eunice, and John A. Haas at ■Opelousas, which, as just stated, is 80 miles from Eunice. Samuel Haas and John A. Haas are father and son, and men of large means, who to some extent make a business ■of buying lands cheap when opportunity offers and holding for higher prices.

On the same day, and before the same notary, Guillory sold to Alexander Miller, for $7,500 cash, the steam cotton gin and the lot or lots on which it stood. Miller says that after the sale of the land had been consummated Guillory offered to sell to the Haases the steam cotton gin, and that they declined to buy, and that thereupon he (Miller) proposed to them that he and they make the purchase together, and, they declining, he bought it himself. He says the object of his coming to Opelousas that day was to pay his taxes. He says, further, that they drove back to Eunice the same day, and that he the same evening went to his house, and got the $7,500, and paid it to Guillory. At the time of this sale Miller held the past-due note of Guillory for $3,000. He says Guillory paid him this note on the 12th, a few days after the sale. Miller is a farmer without education, but admittedly a man of considerable means, all of his own making. The witness put upon the stand by plaintiff to prove he could not have had at his house, or readily procured without giving security, so large a sum as $7,500, proved rather the opposite. Miller says he would not have bought the property if he had thought Guillory was making the sale for the purpose of defrauding his creditors; that he knew Guillory was holding an immense amount of cotton, and that there had been a terrible slump in the price of cotton, and that Guillory told him that in order to keep this cotton he needed all the money he could get; that this was the reason why he did not deduct from the $7,500 the amount of his note.

On the next day, December 8th, Guillory sold the store building and the sma'll dwelling house and the lot or lots on which they stood to Francois E. Savoie for $3,500 cash. The sale was made before the local notary, Mr. Dardeau. Savoie lives about six miles from Eunice. He is a farmer and stockraiser, uneducated. He cannot tell what properties he now owns. He owns, he says, “about 400 or 500 acres of cultivable land, or ’maybe 800, on which he has seven families. He says he owns, as we understand, in addition, 500 arpents in pasture land; also in Eunice one acre of unimproved land, which cost him $200, and two improved lots. He admits that he is a debtor on a number of notes for small amounts secured by vendor’s privilege on different tracts of land bought by him at different times, upon which he is paying interest at 8 per cent, and upon which he has been obtaining extensions.

[825]*825The notary before whom the act of sale was passed testifies as follows:

“Mr. Savoie pulled out a roll of bills after the sale. It looked to me like a roll of bills of $5,000. He unrolled it and counted. He said, ‘I want you to count it.’ I counted the money. Mr. Olivrel Guillory was standing by me and counted the same money right behind me. There was $1,000 in it. I said: ‘There is lacking $2,500. What will you do about it?’ Mr. Olivrel said, ‘He will give me a duebill or a note payable in eight or ten days, as he wants.’ Mr. Savoie answered, T will pay you within three days.’ So I made the note payable one. day after the date for the sum of $2,500, with interest at the rate of 8 per cent, from date.”

Savoie testifies he had the other $2,500 in his house and paid it the next day. Touching the source of the money he testifies as follows:

“I had collected different sums, $850, for some cattle that % sold for my mother-in-law. I also kept a little market, and collected from $500 to $600, and then, besides that, I sold to the butchers a considerable amount that I don’t remember that I have marked down at home. I can’t mark it myself, but I have it marked.
“Q. Mr. Savoie, was it from these collections that you have mentioned that you realized the money to pay Mr. Guillory?
“A. Not absolutely that. I had other money. It was mixed with other money.
“Q. Can’t you give us a statement of where you got the money, aside from these collections that you have mentioned?
“A. I could have it at the house.
“Q. Where did you get the money which you claim to have had at your house?
“A. From working and trafficking.”

He says, further, that he has been in possession ever since: “I bought in December, and in January I commenced to collect rent. We fixed the price at $30 a month right after the sale.” He does not say whom, besides himself, he means by we; but a little later in his testimony he says that the store is not occupied now, but has been retained, and he is getting his rent all the same; that O. E. Guillory, of the firm of O. Guillory & Co., representing to him that he was acting for other people, asked him the preference on the store, and that he gave it to him; that Johnny White wanted to rent the dwelling house, but “I told him I had left it with O. E. Guillory to rent for me, and to see him about it”; that this house is rented; and that he got at first $5 rent, but now is getting $6: He does not say to whom. He further testified as follows:

“Q. Who is it that is to occupy that store from now on?
“A. Xves Guillory asked me the preference on the store, and I told him he could have it. He told me that he was representing other people.
“Q.

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Bluebook (online)
42 So. 329, 117 La. 821, 1906 La. LEXIS 777, Counsel Stack Legal Research, https://law.counselstack.com/opinion/new-orleans-acid-fertilizer-co-v-o-guillory-co-la-1906.