Peoples Bank v. Waggoner

200 So. 28
CourtLouisiana Court of Appeal
DecidedJanuary 13, 1941
DocketNo. 6258.
StatusPublished
Cited by2 cases

This text of 200 So. 28 (Peoples Bank v. Waggoner) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peoples Bank v. Waggoner, 200 So. 28 (La. Ct. App. 1941).

Opinion

DREW, Judge.

On September 8, 1928, W. D. Womack sold to Arminda Waggoner, and W. W. Waggoner, her husband,’80 acres of land situated in Jackson Parish, Louisiana. The consideration was $800, payable $500 in cash and two notes for $150 each payable October 1, 1929 and 1930, respectively, bearing 7% per annum interest from date until paid and 10% upon both principal and interest as attorney’s fees, if collection by legal process became necessary. The notes were duly para-phed to identify them with the act of mortgage and vendor’s lien and the 80 acres were specially mortgaged to secure the payment of the two notes. They were pledged as security for a note made to the Peoples Bank of Chatham, Louisiana, by Arminda and W. W. Waggoner.

At the time the notes were pledged to the Bank it gave to W. D. Womack the money and prepared an envelope note which was signed by Arminda and W. W. Waggoner, and the mortgage notes were placed against it as collateral. Mr. C. M. Womack, cashier of the Bank at that time, is positive that the two mortgage notes were pledged to the Bank by the Waggoners and not by W. D. Womack; that the original transaction between the Bank and the Waggoners started with an envelope note and, in order to secure it, the two mortgage notes of $150 each were pledged as collateral. This was some time before the year 1930, the exact date, however, not being shown.

The envelope note was renewed several times by giving a new;' one, the old one being given or sent to Mr. and Mrs. Wag-goner. In fact, this was a yearly occurrence up until January 25, 1936, when the last new envelope note was executed. This note was made payable January 25, 1937, and shows on its face that the two mortgage notes of $150 each were deposited as collateral security.

No part of the principal was ever paid and although plaintiff contends there was $80 paid on the interest in the year 1938, it is shown to have been given to the Bank by W. W. Blocker who had taken a lease on the 80 acres of land involved here, and it is not shown by what authority it was. paid to the Bank. Mr. and Mrs. Waggoner deny that they authorized the payment or had ány knowledge of it. However, this payment could not have any bearing on a determination of the issue before us at this time.

On January 21, 1939, the Peoples Bank instituted this suit against Arminda Wag-goner and W. W. Waggoner on the two* mortgage notes praying for judgment in the amount of principal, interest and attorney’s fees and for recognition of its special mortgage on the 80 acres of land for which the notes were., given as a part of the purchase price and also for its rights, against the endorser ■ thereon, W. D„ Womack, to be specially reserved.

Plaintiff then filed a supplemental and amended petition in which it alleged:

“3. That the mortgage and vendor’s, lien notes as herein originally sued upon and described in plaintiff’s petition ■ were transferred, negotiated and delivered to the-petitioner subsequent, but soon after their date and that said notes have remained and continued in the possession of petitioner from the date of its said acquisition thereof until this time.
“4. That, however, merely in conformity with the universal rules of banks, against keeping on hand or carrying past-due paper and the laws governing banks, and without any intention of novating said debt, the said W. W. Waggoner and Mrs. Arminda Waggoner have, subsequent to-petitioner’s acquisition of said mortgage- *30 and vendor’s lien notes, executed in renewal and as a continuance of said obligation and debt and especially note of $420.00, dated April 27, 1935, another on December 12, 1935, and another January 25, 1936, as well as other notes prior to 1935, all of which except the one last dated, were returned to defendants.
“5. The last-dated note being for $420.00 payable to petitioner January 25, 1937, executed and signed by W. W. Waggoner and Arminda Waggoner, bearing 8% per annum interest from maturity until paid and stipulating 10% additional on principal and interest as attorney’s fees in case said note should be placed with an attorney for collection, as will be shown by said note attached hereto and made a part hereof, was transferred, negotiated and delivered to petitioner and of which petitioner is the holder and owner before maturity and for a valuable consideration.
“6. That the said last-dated note and the one described in the preceding paragraph is the written acknowledgment referred to in Paragraph 7 of plaintiff’s original petition and, in compliance with the order of the Court to file and produce the same, petitioner attaches hereto and makes a part hereof, files and produces the same in Court.
“7. Now, in the alternative and only in the event and alternative the Court should hold for any reason that plaintiff is not entitled to judgment on the original notes, as herein sued upon, then and in that event and alternative, petitioner shows that the said W. W. Waggoner and Arminda Wag-goner are legally and justly indebted unto petitioner in solido on the note herein described in Paragraph 6 of this amended and supplemental petition for the full sum of $420.00, with 8% per annum interest thereon from January 25, 1937, until paid, together with 10% additional on both principal and interest as attorney’s fees and for all costs, for which amount, in said alternative, it should have judgment in solido against the said W. W. Waggoner and Mrs. Arminda Waggoner and further recognizing its vendor’s lien and special mortgage on the property and its mortgage and vendor’s lien as described and set forth in Paragraph 5 of its original petition.
“8. Petitioner further shows that the endorser, W. D. Womack, has acknowledged and promised to pay said notes and indebtedness on various and sundry occasions and during each and every year during and since the year of their maturity verbally and particularly to and including the year 1938.”

It reiterates its former prayer and, in the alternative prays: “Petitioner further prays in the alternative and only in the event and alternative, and in the event the Cburt should hold that petitioner is not entitled to recover for the amount as originally sued for, then and in that event and alternative, there be judgment herein in favor of petitioner and against the said defendants, in solido, for the full sum of $420.00, with 8% per annum interest thereon from January 25, 1937, until paid, together with 10% additional on principal and interest as attorney’s fees and for all costs of this suit, and recognizing and enforcing petitioner’s aforesaid vendor’s lien and special mortgage, lien and privilege on the aforesaid property and ordering the same enforced and said property sold in accordance with law and from the proceeds thereof petitioner be paid by preference the amount of its claim and the judgment to be rendered herein.”

Defendants answered denying their signatures to the $420 envelope note sued on in the supplemental petition. They also pleaded payment of the two mortgage notes. They also filed a special plea of prescription of five years and ten years against the two mortgage notes and the act of mortgage.

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Bluebook (online)
200 So. 28, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peoples-bank-v-waggoner-lactapp-1941.