Osborne v. Mossler Acceptance Co.

38 So. 2d 151, 214 La. 503, 1948 La. LEXIS 992
CourtSupreme Court of Louisiana
DecidedDecember 13, 1948
DocketNo. 38748.
StatusPublished
Cited by16 cases

This text of 38 So. 2d 151 (Osborne v. Mossler Acceptance 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
Osborne v. Mossler Acceptance Co., 38 So. 2d 151, 214 La. 503, 1948 La. LEXIS 992 (La. 1948).

Opinions

MOISE, Justice.

We granted a writ of certiorari in this case so that a review could be had on the judgment of the Court of Appeal, First Circuit, awarding to plaintiff the sum of $257.50, representing $132.50 as damages, and $125 as attorney’s fees, this amount to apply as an off-set of the judgment on the reconventional demand for $1,363.50, plus interest and attorney’s fees, granted in favor of the defendant. 31 So.2d 452.

The plaintiff is seeking damages against the Mossier Acceptance Company because of the unlawful seizure of his house trailer by executory process, the Court of Appeal having dismissed the suit and declared the executory process improperly issued, as the Texas chattel mortgage under which the seizure was made was not an authentic act (La.App., 14 So.2d 492); and, since this suit was instituted because of the illegal seizure, it is necessary to briefly summarize the facts of the entire litigation.

The record shows that on September 18, 1942, at Karnack, Texas, plaintiff purchased a house trailer and executed as part payment, his promissory note for $1,363.50, bearing 10% interest from maturity and payable to the order of George F. Stephens, in monthly installments as therein specified, at the office of the Mossier Acceptance Company, Houston, Texas. An endorsement appears on the back of the note whereby Stephens transferred it to the Mossier Company on the same date. In connection with this transaction, plaintiff executed a chattel mortgage on the trailer, to secure the note. This instrument contained the stipulation that the property was not to be moved from the county or out of the State of Texas without the mortgagee’s written consent. The contract of sale, the note, and the chattel mortgage were made and executed in the State of Texas by and between Texas citizens. Since payments were not made as specified by the note, the Mossier Company caused an order of executory process to issue against plaintiff and seized the trailer which was then in plaintiff’s possession and located in Hornback, Louisiana. The Court *507 of Appeal declared the writ of seizure to have been illegal, since the chattel mortgage was not by authentic act, and dismissed, the writ of seizure and sale. 14 So.2d 492. Thereupon, two separate suits were filed against the Mossier Company, one on behalf of plaintiff’s wife for damages for alleged humiliation, etc., and the other, by the plaintiff (the proceeding now before us) for damages claimed to have .been suffered because of the illegal seizure. In answer to these suits, the Mossier Company filed a reconventional demand for the amount of the note given by plaintiff to George F. Stephens and assigned to defendant in the amount of $1,363.50, plus 10% interest and 15% attorney’s fees. Judgment was rendered in the district court in plaintiff’s favor for damages of $410.75; and there was judgment also in favor of the Mossier Company against the plaintiff on the reconventional demand for $1,363.50, with 10% interest and 15% attorney’s fees, recognizing the lien and privilege of the defendant on the trailer, the amount of the judgment in favor of the plaintiff to be allowed as an off-set against the judgment in favor of the defendant on the re-conventional demand. The wife’s suit was dismissed for want of sufficient evidence. Appeals were taken on both suits to the Court of Appeal. That court affirmed the dismissal of the wife’s suit and reduced the judgment of award for damages in Osborne’s favor from $410.75 to $257.50. The judgment in favor of defendant in the sum of $1,363.50, plus interest, etc., on the reconventional demand was affirmed. 31 So.2d 452. A rehearing was denied and we granted a writ of certiorari and now only plaintiff Osborne’s suit is before us for review.

It is plaintiff’s contention that the note and mortgage were altered as to the payments after he signed it; however, he admits he signed the note and mortgage and has failed to prove that the present holder had knowledge of any defects or irregularities in the note and mortgage. The evidence shows that before September 25, 1942, and prior to the due date of the first instalment of the note, plaintiff. was informed by the defendant, Mossier Company, that it held-his note, secured by the chattel mortgage. It has also been shown that plaintiff had received at that time a schedule of payments in accordance with the note. It is clear, therefore, that the defendant acquired the note before maturity and for a valuable consideration.

The contract was made in the State of Texas, to be performed in that State; and the note was to bear interest at the rate of 10% from maturity. There is no proof in the record of the legal rate of interest in the State of Texas. In the absence of such proof of the foreign law, the law of Louisiana must be applied. Barlow v. Fife, 172 La. 176, 133 So. 436. The amount of interest to be allowed herein must, therefore, be determined under our law.

*509 Article 2924 of the Revised Civil Code reads:

“Interest is either legal or conventional. Legal interest is fixed at the following rates, to-wit:

“At five per cent on all sums which are the object of a judicial demand. Whence this is called judicial interest;

“And on sums discounted at banks at the rate established by their charters.

“The amount of the conventional interest can not exceed eight per cent. The same must be fixed in writing; testimonial proof of it is not admitted in any case.

“Except in the cases herein provided, if any person shall pay on any contract a higher rate of interest than the above, as discount or otherwise, the same may be sued for and recovered within two years from the time of such payment.

“The owner or discounter of any note or bond or other written evidence of debt for the payment of money, payable to order or bearer or by assignment, shall have the right to claim and recover the full amount of such note, bond or other written evidence of debt, and all interest not beyond eight per cent per annum interest that may accrue thereon, notwithstanding that the rate of interest or discount at which the same may be or may have been discounted has been beyond the rate of eight per cent per annum interest or discount; but this provision shall not apply to the banking institutions of this State in operation under existing laws.

“The owner of any promissory note, bond or other written evidence of debt for the payment of money to order or bearer or transferable by assignment shall have the right to collect the whole amount of such promissory note, bond or other written evidence of debt for the payment of money, notwithstanding such promissory note, bond or other written evidence of debt for the payment of money may include a greater rate of interest or discount than eight per cent per annum; provided, such obligation shall not bear more than eight per cent per annum after maturity until paid.

“Provided, however, where usury is a defense to a suit on a promissory note or other contract of similar character, that it is permissible for the defendants to show said usury whether same was given by way of discount or otherwise, by any -competent evidence.” (Italics ours.)

Usury was not urged as a defense to this suit in the district court nor in the Court of Appeal.

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Bluebook (online)
38 So. 2d 151, 214 La. 503, 1948 La. LEXIS 992, Counsel Stack Legal Research, https://law.counselstack.com/opinion/osborne-v-mossler-acceptance-co-la-1948.