Phelan v. Wilson

38 So. 570, 114 La. 813, 1905 La. LEXIS 546
CourtSupreme Court of Louisiana
DecidedMarch 27, 1905
DocketNo. 15,471
StatusPublished
Cited by24 cases

This text of 38 So. 570 (Phelan v. Wilson) 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
Phelan v. Wilson, 38 So. 570, 114 La. 813, 1905 La. LEXIS 546 (La. 1905).

Opinions

Statement of the Case.

NICHOLLS, J.

The plaintiff in this suit claimed to be the owner of certain described property in the parish of De Soto, which he alleged he acquired in good faith and for a valuable consideration from Osear M. Nilson on January 28, 1903, by deed recorded on January 29, 1903.

That defendant was in unlawful possession of the same, and refused to deliver it to him, notwithstanding amicable demand. That he was entitled to damages for the illegal detention. That the property was worth $2,000, and he should be allowed $1,000 for the damages which he had suffered, and rent from January 28, 1903, at $20 per month, up to-the time of the delivery of the property to him. He prayed for judgment in accordance with his allegations.

Defendant answered, pleading first the general issue. She averred that she was in possession of the property, as owner, by notarial act of sale from W. B. Sample, O. W. Blair, and O. H. Sample, of date November [815]*815• 5, 1902, recorded on the date of its execution, and had been in possession ever since the date of the purchase, the price of her purchase having been $1,400 cash. That her vendors were in possession of the property under a valid conveyance and transfer from O. N. Nilson, of date July 16, 1900, recorded on July 28, 1900. That by said act Nilson transferred the property to W. B. Sample, O. W. Blair, O. H. Sample, M. Ricks, N. Cunningham, and the Commercial National Bank of Shreveport. That the three last-named authorized the Samples to sell the property to her. That the consideration of the sale and transfer from Nilson to said parties was not fully stated in the act of July 16, 1900. That Nilson had wrecked the Bank of Mansfield, of which he was the cashier, and of which W. P. Sample, Blair, Cunningham, and Ricks were directors, by using the funds of the bank in buying and operating sugar plantation in the name of corporations, limited, of which he was the chief or sole proprietor, without the knowledge or consent of said board of directors, and he was thereby indebted to said bank in the sum of $26,500, and had been arrested on the charge of embezzling the funds of said bank. That it was intended by said act of July 16, 1900, that the said parties named as vendees should become the owners and acquire said property, with full authority to sell the same and use the proceeds in paying the debts of said bank, and, as a consideration for the same, the said Nilson was released from his said indebtedness to said bank. That said contract was a valid contract for a good and real consideration, and, whether called a sale, or giving in payment, or innominate contract, it was duly executed, the purchasers were placed in immediate possession, and, after trying to get a better price, sold the same to this defendant, and used the proceeds in paying the debts of said bank. That, after using this and all of the assets of said bank in payment of its debts, there was a deficit of $1,828.16, which these purchasers paid out of their own money.

That the said Phelan made his pretended purchase of said property from the said Nil-son after the said Nilson had sold to defendant’s authors, and after they had sold to defendant, and their titles were spread upon the public records of the parish, and they have been in possession for more than two years. That said Phelan is a mere person interposed to try and get said property for the said Nilson; that he never saw the property; is a traveling book agent, living in Chicago, and was never in the town of Mansfield, La. That in passing through the city of Shreveport the attorneys of O. M. Nilson, or M. N. Wood, his agent, asked and obtained his consent for the use of his name in this matter, being the same attorneys of record for plaintiff in this case. That he paid nothing for said property, but pretends to have given his notes on long credit. That he is in bad faith, and without right or interest to disturb defendant.

She alleged that she had put valuable and necessary repair and improvements upon the property. Averring that she had purchased it under full warranty, she called her vendors in warranty, and contingently asked judgment against them. The warrantors answered. They admitted that they sold the property to the defendant, and were liable to her in the event of eviction for the price. They averred that they acquired the property from Nilson as stated in defendant’s answer; that the act of sale and transfer to them of July 16, 1900, had a real, just, and valid consideration, and was none the less valid because the same was not fully and completely expressed. That the debts of the bank of Mansfield, assumed and paid by the vendees under said act of July 15, 1900, less cash and its equivalent on hand, then amounted to $29,000, and that all of the assets of the bank, and all the property transferred to them by the said Nilson, were in[817]*817sufficient to pay said indebtedness, but left a deficit of $1,828.16, which the said vendees paid with their own money.

That the said Nilson had used the funds of the bank in buying the property sued for and in his private business, giving to the bank the notes of the said so-called corporation of which he was proprietor. That he used said funds without the knowledge or consent of the directors of said bank of Mansfield, which was an incorporated bank under the general laws of the state, and he was liable to said bank and its creditors for the money used by him in the sum of $26,-500, and said property was transferred and delivered to said purchasers in payment of said indebtedness of the said Nilson and said bank, with the full purpose and intention that the vendees should become the owners and have the right to sell the property to reimburse them for the debts of said bank assumed and paid by them. That said contract was executed according to its terms and purpose,- and the sale by it to the defendant should be sustained, and plaintiff’s demand rejected, at his costs.

Further answering in the alternative only, that the court should hold that said act of July 16, 1900, and the sale to defendant of November 5, 1902, did not transfer said i:>roperty, and that the defendant’s title cannot be sustained, then and in that event they aver that, if said act is not good as a sale or transfer of said property, it is good and valid as a security or mortgage or hypothecation of said property to secure the said parties in assuming and paying the debts of said bank; and they ask in reconventiou that their rights upon said property be recognized and enforced, and that O. M. Nilson,. a resident of the state of New York, be cited through an attorney ad hoc appointed to represent him, and that there be judgment enforcing their claim for the amount of said deficit, which, with the price of this property to be returned to the defendant, would be $3,228.16, and that said property be seized and sold to pay and satisfy said sum, interest, and costs.

That the said O. M. Nilson had left the state permanently. That he was wholly insolvent, and without means or property, and that a demand upon him was impracticable, and would be wholly vain and useless. That if the court should hold that the act of July 16, 1900, was neither good as a sale or transfer, nor as a security, then and in that event they alleged that the said Nilson bought said property now in controversy from Miss Ella Poster in the name of his wife, Lillie W.

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Bluebook (online)
38 So. 570, 114 La. 813, 1905 La. LEXIS 546, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelan-v-wilson-la-1905.