Offutt v. Hendsley

9 La. 1
CourtSupreme Court of Louisiana
DecidedJuly 1, 1835
StatusPublished
Cited by7 cases

This text of 9 La. 1 (Offutt v. Hendsley) 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
Offutt v. Hendsley, 9 La. 1 (La. 1835).

Opinion

Marlin J.

delivered the opinion of the court.

This suit commenced by an injunction to stay certain executory proceedings against a mortgaged slave in the possession of the plaintiffs in injunction. They are appellants from the judgment of the District, Court, dissolving their injunction, staying the execution of the order of seizure and sale of the slave in question, and which the present defendants had obtained and were proceeding to execute; The latter, in their answer to the appeal, pray that tlie judgment appealed from, may be amended in their favor so as to allow them full damages for the detention and hire of the slave in question,, which they have a right to claim.

[10]*10Tlie facts, as exhibited in the record, so far as they are material to the case, are briefly as follow : the slave Randal,' under seizure, made part of the estate of the late Wm. Thompson, deceased, former husband of the present widow Hendsley, and father of several of her minor children, all of whom are made defendants to the present injunction suit. At the probate sale of Thompson’s succession, this slave was sold and purchased by Wm. Haslett, for the sum of one thousand five hundred and ten dollars; and a mortgage retained to secure payment of the purchase money. Haslett failing to pay the price, judgment was obtained, upon which execution issued; the slave in question was seized and sold, and bid in by Haslett, the judgment debtor, for one thousand two hundred and sixty-two dollars, on a twelve months’ bond. Haslett subsequently sold and conveyed Randal to one Davis, who died, and this same slave was again sold at the probate sale of his succession, and purchased by Irwin; and at the sale of Irwin’s succession, was purchased by Boardman, who sold toN. Offutt & brother, the present plaintiffs in the injunction.

The widow Hendsley and her children, who are the surviving widow and heirs of Wm. Thompson, deceased, obtained an order of seizure and sale, grounded on the vendor’s privilege and special mortgage arising out of the first sale of the slave at the probate sale of Thompson’s succession; and also, resulting from the sheriff’s sale; and on the general mortgage arising from the recording of the judgment against Haslett.

It is deemed sufficient to a proper decision of this case, to confine-the inquiry and direct the attention of the court to the right of the seizing creditors on the general mortgage, which their counsel contends, still remains in force and unex-tinguished.

The different modes by which mortgages expire or are extinguished, are detailed in the 3374th article of the Louisiana Code. The fourth mode pointed out in that article, is the extinction of the obligation of which the mortgage is the accessory. In this case, in order that the sheriff’s sale might be said to have extinguished the general mortgage [11]*11resulting from Hendsley’s judgment against Haslett, duly recorded, it should be shown that the sale under it has operated the extinction of the obligation flowing from the judgment itself.

Gold and silver only can be legally tendered in payment of debts. So, a twelve months’ bond, taken for the price of the adjudication of property of a debtor, seized and sold by a creditor, is nothing more than a bond and security with mortgage on the property sold, and which does not discharge the original obligation or judgment. A judicial sale made to effect the payment of mortgage debts, has also the effect of transferring the thing sold, free and unincumber-ed of the mortgage previously existing on it, even when sold for a less sum than that for which it was mortgaged. ✓ When mortgaged property passes by a judicial sale into otherhands, than those of the judgment debtor and mortgagor, the mortgage attaches to the price, and the purchaser takes the property free and unincumbered. But where a slave is seized and sold by a judgment creditor and purchased in by the debtor, on liis twelve months’ bond, it becomes immediately affected by the general mortgage resulting from the judgment, as well as by the special mortgage given in the twelve months’ bond to the sheriff.

[11]*11The manner in which obligations are extinguished, is also treated of and detailed in the 2126th article of the Louisiana Code. Payment is first mentioned, and is the mode by which the obligation in question can only be supposed to be extinguished, if at all.

As gold and silver only can be legally tendered in the payment of debts, it follows that a twelve months’ bond, taken for the price of the adjudication of property seized and sold by a creditor, produces nothing more than a bond with security and a mortgage immediately on the property sold, and it cannot, therefore, have the immediate effect of discharging or extinguishing the original obligation.

It is, however, contended, that although the sale of the slave may not have the effect of extinguishing the general mortgage under which the seizure took place, it had that of disincumbering the thing sold from the general mortgage; this court having often held that a judicial sale made to effect the payment of mortgage debts, has also the effect of transferring the property or thing sold, free and unincumbered of the mortgage with which it was burdened, in the hands of the mortgage debtor; even, when it was sold for a price, which left part of the mortgage debt unpaid. This is certainly true when the property passes by a judicial sale into the hands of any otherperson except the mortgage debtor. In the hands of the purchaser, the purchase becomes instantly liable to all the judicial or legal mortgages with which all the rest of his property is burdened. So in the present case, when Haslett bought the slave the second time, it was immediately affected by the general mortgage resulting from the judgment, as well as by the special mortgage given in the twelve months’ bond to the sheriff.

We, therefore, conclude this part of the case, by saying, that the sheriff’s sale and twelve months’ bond taken, did not [12]*12release, free or disincumber the slave Randal from the original mortgage resulting from the judgment.

So, where a debtor buys in his own property, on a twelve months’ bond, it is not released from the original mortgage resulting from the judgment under which it was .sold. There is a privity of coil-tract between debtor^'and °the creditor, which compels the latter to preserve forniei'.ltS fol th°

It is further contended, that if this sale did not extinguish the general mortgage, nor disincumber the slave from its burden, it had at least the effect of suspending the exercise of the creditor’s right, under the judgment, until he had exhausted all the means which the debtor had at the time of sale, in order to obtain payment; and that the vendee of the slave may resist the attempt to have the slave sold under the general mortgage, until all these means are fairly exhausted.

It is clear, Haslett, the vendor of the plaintiffs in the injunction, could not have stayed a sale on the special mortgage he gave to the sheriff in the twelve months’ bond, but his vendee can. If the slave cannot be sold in the hands of the vendee, he cannot complain that this means of obtaining payment has not been exhausted.

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Bluebook (online)
9 La. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/offutt-v-hendsley-la-1835.