Posey v. Fargo

174 So. 175, 187 La. 122, 1937 La. LEXIS 1155
CourtSupreme Court of Louisiana
DecidedMarch 29, 1937
DocketNos. 34211-34220.
StatusPublished
Cited by19 cases

This text of 174 So. 175 (Posey v. Fargo) 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
Posey v. Fargo, 174 So. 175, 187 La. 122, 1937 La. LEXIS 1155 (La. 1937).

Opinion

FOURNET, Justice.

William L. Posey, having by attachment proceedings obtained a judgment, in rem, in the Eleventh judicial district court, in and'. *125 for the parish of Sabine, against George K. Fargo and Edward F. Hoeft, nonresident defendants, and having levied on the judgment, caused an alias writ of fieri facias to issue, addressed to the sheriff of the parish of East Baton Rouge, and, under that writ, he instituted garnishment proceedings in the district court for that parish, wherein the Standard Oil Company of Louisiana, which he claimed was indebted to the defendants, was made a party garnishee.

The garnishee, in answer to the interrogatories propounded to it, set forth that it did' not have any money, rights, or credits due or belonging to the defendants or either of them, but that it did have in its hands the sum of $1851.45, in which they might have an equitable interest, the exact' extent of which was unknown to it; that the amount was not due and payable because the stated amount was for oil produced' under an agreement providing that it “may retain the purchase price of the oil, * * * until satisfactory evidence of title, * * * is furnished * * * ”; and that there were outstanding against the fund certain oil rights and liens filed of record in the parish of Sabine, in the names of: (1) T. E. Nicholson, (2) the Pelican Refining Company, (3) E. A. Lafitte, (4) Thomas Moran, (5). O. C. Gaunce, and (6) R. P. Bartlett, who was granted letters as receiver by the district court of Sabine parish for the partnership of George K. Fargo and Edward F. Hoeft, who claimed the entire sum of $1,851.45.

The trial judge, having maintained an exception of nonjoinder of parties defendant filed by the garnishee to plaintiff’s motion and rule to show cause why it should not be condemned to pay the plaintiff’s claim out of the proceeds in its hands, ordered the plaintiff to amend his petition and make all parties at interest parties to the proceedings, which the plaintiff did by a supplemental and amended petition.

In answer to the supplemental petition, the garnishee answered and- averred that all parties having an interest in the funds being before the court, it wished to, and, accordingly, was allowed to, deposit the sum of $1,851.45 in the registry of the court, to be paid by the court to the proper party or parties.

The receiver waived any objection to the jurisdiction of the court and answered, averring that the amount due by the garnishee was for oil produced by Fargo and Hoeft, as partners, who were jointly engaged in oil operations, and, consequently, the oil sold to the garnishee was a partnership asset which should be turned over to him. He also pleaded that the plaintiff had notice of the receivership and, therefore, was estopped to question the validity of the receivership proceedings, or to contest his rights to the fund.

The other claimants, with the exception of E. A. Lafitte and O. C. Gaunce who did not answer, although the latter was represented in court by counsel, answered asserting their respective claims and joined the receiver in his plea of estoppel, and averred that the funds should be paid over to the receiver to be by him distributed according to law among the creditors of the partnership.

*127 After the trial on the merits, the trial judge ordered the sum of $1,851.45, deposited in the registry of the court, paid over to the receiver, R. P. Bartlett. The plaintiff and O. C. Gaunce each appealed from the judgment to the Court of Appeal, First Circuit, which affirmed the judgment of the lower court. 170'So. 512.

The.matter is now before us for review on writs of certiorari granted to each appellant.

The facts, as disclosed by the record', are that George K. Fargo, by a series of conveyances, acquired an undivided one-half interest of a mineral lease on land situated in the parish of Sabine, state of Louisiana, and Edward F. Hoeft, by another series of conveyances, acquired the other undivided one-half of the lease. The two together drilled an oil well on the property covered by the lease, and as a result thereof oil was discovered and produced.

William L. Posey, the plaintiff and one of the appellants in this case, filed a suit in the parish of Sabine against George K. Fargo and' Edward F. Hoeft to recover the sum of $1,389.92, due him for material furnished and labor performed in the building of a rig to drill on the leased property, and, as they were nonresidents, plaintiff caused a writ of attachment to issue against the above-mentioned lease, together with the oil well and equipment, all of which were adjudicated for the sum of $600 to the plaintiff at the sale of the property after final judgment had been rendered in his favor recognizing the attachment and his lien on the property attached, and ordering the same sold. After the cdurt costs were paid there remained' from the proceeds of the sale' $69.37, which was credited on the amount of the judgment.

In the meantime, however, while plaintiffs attachment proceedings were pending and prior to the rendition of the judgment, R. P. Bartlett brought suit in the same court, alleging that George K. Fargo and Edward F. Hoeft were operating as partners on the leased property above referred to; that the affairs of the partnership were financially involved; and that it was necessary for a receiver to be appointed to manage its affairs.

The defendants, George K. Fargo and Edward F. Hoeft, appeared and in their answer admitted the allegations of Bartlett’s petition and, on the same day, Bartlett was appointed receiver. Subsequently, Bartlett, as receiver, obtained an order of court, ordering the sheriff of Sabine parish to deliver to him, as receiver, possession of the property held by the sheriff, under plaintiff’s writ of attachment, in order that he might manage and operate the same, subject, however, to all of plaintiff’s rights under the attachment. '

The record also shows that the oil produced from the well, some prior and some subsequent to the attachment, was sold by the receiver to the Standard Oil Company of 'Louisiana, which, after paying all the royalties out of the proceeds of the sale, owed therefor the sum of $1,851.45, but it declined to pay the same to the receiver because it claimed that there were outstanding against the funds the aforementioned claims and liens filed' of record in the parish of Sabine.

*129 Thereafter, upon petition of the receiver to the district court for Sabine parish, the Standard Oil Company and all the parties claiming any interest in the said funds, including the plaintiff Posey, were made parties to a rule to show cause why the Standard Oil Company should not be authorized and directed to pay over to him, in his capacity as receiver, the amount due by it to the partnership.

The Standard Oil Company excepted to the jurisdiction of the court of Sabine parish. The plaintiff herein joined the Standard Oil Company in its plea to the jurisdiction of the court and also filed an answer in which it joined that company in its refusal to turn over the funds to the receiver.

All the other parties defendant in the rule appeared and' pleaded according to their respective interests.

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Bluebook (online)
174 So. 175, 187 La. 122, 1937 La. LEXIS 1155, Counsel Stack Legal Research, https://law.counselstack.com/opinion/posey-v-fargo-la-1937.