President of the Planters Bank v. Watson

9 Rob. 267
Supreme Court of Louisiana·Decided October 15, 1844·Published·Cited by 1 cases

Opinion

Garland, J.

A judgment in this case was rendered at a previous term of the court, in favor of the plaintiffs and appellants, and a re-hearing granted, pending which the parties have transacted in relation to, and compromised their differences; by which, among other things, it is agreed that this suit shall be dismissed both in the court below and in this court, the plaintiffs having acknowledged to have received full satisfaction for all the liabilities of said defendant, for the claims set up against him in this suit, as appears by the act of compromise filed in the record.

Appeal dismissed. *

Footnotes

Simon, J. This is a revocatory action, founded upon allegations of fraud and simulation. The magnitude of the amount involved in the controversy, and the strict appli[268] cation of the legal principles which we are about to recognize, render this case one of considerable importance. It has been ably and elaborately argued on both sides, and before coming to the conclusion which we have adopted as the basis of the judgment which we have to pronounce, we have not failed to bestow upon it the most intense consideration.

The history of this ease is this: On the third of February, 1835, a certain note of $20,000, endorsed by the defendant, Watson, as third endorser, became due at the Planters Bank of Mississippi, at Port Gibson, and was duly protested. On the second of May, 1836, two other notes amounting together to $118,304 06, on one of which said Watson was first endorser, and second endorser on the other, fell due at the office of the Bank of the United States, at Natchez, and were also duly protested. In July, 1836, a suit was instituted by the plaintiffs against Watson, on the note of $20,000, before the District Court of the Third District of the State of Mississippi, from which there resulted a judgment in favor of the plaintiffs, which was rendered and made final on the 27th of May, 1840, for the sum of $28,533 33. On the 7th of June, 1836, another suit had been instituted by the plaintiffs against Watson on the two other notes, amounting together to $118,304 06, before the same court, in which a judgment having been rendered in favor of the defendant, an appeal was taken to the High Court of Errors and Appeals of the State of Mississippi, whereupon the judgment appealed from was reversed, and final judgment rendered in favor of the plaintiffs, against Watson, in January, 1840, for the sum of $133,871 38. The certificate of this judgment was not filed in the lower court, until the 28th of May, 1840.

On the 14th of December, 1837, during the pendency of the two suits above mentioned, the defendant Watson conveyed to the defendant Walker, his son-in-law, residing in the State of Arkansas, all his, Watson’s, property, situated in the parish of Concordia, consisting in large tracts of land, and a great number of slaves, &c., including therein four hundred bales of cotton ready for market, for and in consideration of $280,000, divided in nine promissory notes, payable to the order of Watson; the first for $20,000, to be paid on the 25th of March, 1838, and the others in eight equal annual instalments, from the 1st of January, 1838, and bearing ten per cent interest after maturity, until paid. Watson’s wife intervened in the act of sale for the purpose of renouncing her legal mortgage on the property sold, and certain mortgages, amounting to the sum of $90,710 39, exclusive of interest, were declared to exist on said property; and the act was accepted by the vendee, with the promise on the part of the vendor, to assume said mortgages, and to guaranty the vendee from the payment thereof.

On the same day that the. sale was executed, a notarial act of procuration was passed by Walker to Watson, in which the latter was appointed and constituted his son-in-law’s general and special agent and attorney in fact, for the term of one year, giving him the fullest and most extensive powers on the property which had just been conveyed, even authorizing him to sell and buy, to draw and endorse notes and bills of exchange, to employ and dismiss overseers at his pleasure, &c; agreeing to pay to the said Watson, a compensation of $1,500, at the termination of the twelve months, and to furnish him and his family with the use of the dwelling house on the plantation just conveyed; in consequence whereof, the vendor, as the agent of the vendee, continued to remain in possession of the plantation, slaves, and other property, and to [269] administer them as if they still belonged to him. There is no evidence that this procuration was ever renewed, or the time extended by any subsequent act.

On the 20th February, 1841, due proceedings were had, and applications were made by the plaintiffs to the judge of the Ninth District of Louisiana, to render the above mentioned two judgments executory under our laws, whereupon it was ordered and decreed that said judgments be executed, and that executory process issue according to the prayers of the plaintiffs’ petitions. Writs of seizure and sale were accordingly sued out, and put in the hands of the sheriff of the parish of Concordia, who stated, in his return, that, after diligent search and inquiry being made, and no property found in his parish, belonging to the defendant Watson, whereon to levy the writs, he returned them, nulla bona.

The plaintiffs having thus unsuccessfully attempted to obtain satisfaction of their judgments, instituted the present action, in which, on divers allegations of fraud and simulation, made against both the vendor and vendee, they seek to annul and set aside, as fraudulent and simulated, the conveyance executed by Watson to Walker. They pray that the said pretended sale be, as to its effect upon the rights of the petitioners, avoided, rescinded, and annulled; that the property be made subject to be seized and sold to satisfy their judgments ; and that, in the mean time, Watson be enjoined from parting with the notes given by Walker, and from disposing of them in any manner until the final decision of the suit.

Watson joined issue by denying the allegations contained in the petition, admitting the sale made by him to Walker, and further alleging that the same was made in good faith and for a just price.

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