Posey v. Fargo

170 So. 512
CourtLouisiana Court of Appeal
DecidedNovember 7, 1936
DocketNo. 1643.
StatusPublished
Cited by1 cases

This text of 170 So. 512 (Posey v. Fargo) 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
Posey v. Fargo, 170 So. 512 (La. Ct. App. 1936).

Opinion

LE BLANC, Judge.

On October 17, 1934, plaintiff, William L. Posey, obtained a judgment against the defendants, G. K. Fargo and Edward F. Hoeft, in the Eleventh judicial district court sitting in and for the parish of Sabine, for the sum of $1,389.92. The defendants Fargo and Hoeft were engaged in an oil venture in the parish of Sabine, and the plaintiff’s claim was for material and supplies furnished with other parties who had assigned him their claims, and for work performed in erecting a stand-arcfrig on a well which produced oil. On representing to the court that the defendants were nonresidents, plaintiff obtained a writ of attachment under which their property was seized, including the oil well and equipment and, at the sale thereof by the sheriff of Sabine parish, yielded a sum only $69.37 in excess of the amount of the costs, which sum was duly credited on thei writ.

Plaintiff’s suit in which he obtained the judgment referred to had been filed May 16, 1934, and while same was pending, on June 12, 1934, one R. P. Bartlett, another creditor of the defendants, initiated a receivership proceeding in the same district court in Sabine parish, against the defendants, in which he alleged that they were operating, as partners, in the drilling of the oil well, and that as they had both left the state, there was no one left with authority to manage and take care of the interests of the said partnership. He accordingly prayed for a rule nisi against a curator ad hoc whom he also asked to be appointed to represent the absent defendants, asking for the appointment of a receiver to take possession of the assets of the partnership and to. administer the same as the court might direct. The defendants appeared in answer to the rule through their own counsel and virtually admitted all the allegations of -the petition asking for the appointment of a receiver. The court heard the rule and on June 14, 1934, rendered judgment appointing Bartlett himself, receiver, with full power to take charge of and manage the affairs of the partnership.

Bartlett qualified as receiver at once and obtained various orders from the court, one of which was to order the sheriff to surrender and deliver possession of the property which he held under the attachment issued in plaintiff’s suit, and to operate the same in the management of the oil production from the well, all subject, however, to the rights and claims of the privilege asserted against the same by plaintiff.

At a subsequent date, that is, January 16, 193S, the receiver presented to the court a petition in which he alleged that prior to the period of the receivership, certain oil produced from the properties of the defendant partnership had been sold and delivered to the Standard Oil Company and for which that’ company acknowledged its indebtedness in the sum of $1,851.45, but which it declined to pay because certain liens, including one by plaintiff, had been filed in the recorder’s office of Sabine parish against the defendants. He accordingly prayed for a rule to issue against all the named lien claimants and the Standard Oil Company, ordering them to show cause why the said Standard Oil Company should not he authorized and directed to pay over to him, in his capacity as receiver, the amount due by it to the partnership.

All parties defendant in the rule filed certain pleas in answer thereto, among them being a plea by the Standard Oil Company 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.

On January 24, 1934, the plea to the jurisdiction of the court on behalf of the Standard Oil Company was sustained by the district court of Sabine parish and the *514 rule dismissed in so far as it affected that defendant. On the following day, plaintiff herein obtained an alias writ of fieri facias addressed to the sheriff of East Baton Rouge parish, under which the present garnishment proceeding was instituted against the Standard Oil Company on January 25, 1934. As a result of the answers of the Standard Oil Company to the interrogatories propounded to it, that company finally deposited the full amount of $1,851.45 held by it, with the clerk of the district court of East Baton Rouge parish, and all parties claiming any rights or liens against it were given the opportunity of asserting their respective claims. All claims seem to have been later withdrawn or were not proven except that of the receiver, Bartlett, who still contends that the funds should be turned over to him in his capacity as receiver to be administered in due course and proper order, in the receivership proceedings in the district court of Sabine parish; that of the plaintiff herein who contests the right of the receiver because of the illegality of his appointment, and insists on his right to the fund by reason of his seizure, and that of a party named O. C. Gaunce, who claims the sum of $600 still due him from a sale of a one half interest in the oil and mineral lease involved in this litigation.

Upon trial of the issues as thus presented to the district court of East Baton Rouge parish, there was judgment dismissing the garnishment proceedings and ordering the clerk of the district court to pay over to R. P. Bartlett, receiver, the sum of money in his hands, after deducting 'the amount of costs ordered paid therefrom, and rejecting the demands of all other claimants. From that judgment, plaintiff Posey and the claimant Gaunce have both taken an appeal to this court.

Plaintiff’s proceeding appears now to have taken more the form of an attack against the appointment of the receiver to the defendants’ alleged partnership, by the district court of Sabine parish, than anything else. Indeed, he can only hope to recover if he can demonstrate to the court that the said appointment was illegal. With this thought in mind, the question which then suggests itself is: Can he here collaterally attack the proceedings had in that court? We doubt very much that he can. Whilst he was not a party to the original proceeding in which application was made for the appointment of a receiver, he nevertheless was, at that time, a creditor of the defendants, with a suit pending against them, and did not object to or oppose the application. He later on took part in the proceeding itself, joining the Standard Oil Company, in its refusal to turn over to the receiver the very same fund which is now in contest. It is true that in his answer, after having filed various exceptions, he did allege a mere legal conclusion to the effect that the receiver was not “a duly qualified receiver,” but he did not press that issue and seemed" to have been satisfied with the disposition of the matter on a plea to thu jurisdiction of the court on behalf of the Standard Oil Company, in which he had joined.

But it does not seem to be necessary for us to have to pass on the question of his right to here attack the appointment, as the receiver has met the issue on which the attack is based and appears willing to have the matter disposed of on that issue.

The issue, as presented, involves two questions, as the attack against the receiver is based on the ground, first, that there never existed a partnership between the two defendants Fargo and Hoeft; and, second, granting that there was a partnership, there is no authority in the law of this state for the appointment of a receiver to a partnership.

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Related

Duncan v. Gill
227 So. 2d 376 (Louisiana Court of Appeal, 1969)

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Bluebook (online)
170 So. 512, Counsel Stack Legal Research, https://law.counselstack.com/opinion/posey-v-fargo-lactapp-1936.