Romero v. Newman

23 So. 493, 50 La. Ann. 80, 1898 La. LEXIS 411
CourtSupreme Court of Louisiana
DecidedJanuary 10, 1898
DocketNo. 12,461
StatusPublished
Cited by9 cases

This text of 23 So. 493 (Romero v. Newman) 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
Romero v. Newman, 23 So. 493, 50 La. Ann. 80, 1898 La. LEXIS 411 (La. 1898).

Opinion

The opinion of the court was delivered by

Nicholls, C. J.

Tbe plaintiffs are the owners of tbe Daisy plantation in the parish of Iberia, which they have been cultivating as a sugar plantation.

The defendants are factors and commission merchants in the city of New Orleans. They are also owners of the Linden plantation in Iberia parish, upon which they operate a sugar refinery.

On the 81st of August, 1890, a contract was entered into between the plaintiffs and defendants by which the latter agreed to lay a two-inch pipe from the Linden refinery to the sugar house of the plaintiffs and to furnish a pump to pump the syrup made by the latter from their sugar house to the Linden refinery, at the expense of the defendants, and to refine and granulate said syrup at the rate of one ■cent per pound, and to furnish sugar and molasses barrels in good order at defendants’ refinery. Plaintiffs agreed to boil the juice down and to furnish same as well clarified and in as good a condition as [82]*82possible. It was well understood that defendants were free from all liability from loss occasioned by «.ora-working of machinery, breaking, bursting of pipes or any or whatever loss in the premises before received in their refinery, or from any loss .from frozen cane or sour syrup.

It was further understood that the contract should cover a period of five years, to-wit: 1890, 1891, 1892, 1893, 1894, and at the expiration of the contract plaintiffs should become the purchasers of the pipe and pump so laid-down at the price to be agreed on between the parties, or, if necessary, by arbitration of outside parties.

Separate and apart from this contract there existed between the plaintiffs and defendants, the relation of planters and factors. Defendants agreed to furnish the necessary advances in money and supplies for the cultivation of plaintiffs’ plantation, and they to secure, defendants the reimbursement of their advances delivered to the latter first in 1891, a note for five thousand dollars, secured by mortgage on their plantation, and afterward, on the 24th of February, 1892, a note of that date, for six thousand dollars, payable on the 1st of April, 1893, to the order of H. & 0. Newman, at their office in New Orleans, with eight per cent, interest from date, secured by a new mortgage on the same property. The- last mortgage was to secure a-small balance due on the advances of 1891, as well as those to be made in the future in 1892.

The contract first mentioned continued in force until some time in 1892, when by the destruction of plaintiffs’ sugar house by fire they became unable to carry out their obligation to deliver to tbe defendants syrups made at tbe same.

During the years 1891 and 1892 differences arose between the parties; plaintiffs claiming compensation for a quantity, of syrup which they asserted had been caused to be lost through the negligence of the defendants and their employee?, and defendants contending that they were authorized to demand from the plaintiffs the profits which they would have made under the contract had it been carried to completion, and also the price of the pump and pipes.

After numerous negotiations the parties finally agreed to submit their differences to arbitrators. , An arbitration was attempted, bu it failed in its purpose, and as neither side claims rights under it, no further reference to it need be made.

On the 21st of March, 1893, defendants forwarded to plaintiffs [83]*83a statement of their advance account as being three thousand four hundred and seventy-seven dollars and forty-eight cents, of which two hundred and fifty-four dollars and seventy cents were charged to plaintiffs as commissions of two and one-half per cent, on the bounty which .the latter had collected from the United States government.

Plaintiffs had bo.und themselves in the factorage contract to ship . their crops to defendants for sale for their account, and the latter insisted that they were entitled to deal with the bounty money as if su^,r to the value thereof had been consigned to them for sale and had been sold by them for plaintiffs on the usual commission on sales.

On the 16th of March Messrs. Foster & Broussard, attorneys of the plaintiffs, wrote a letter to the defendant on behalf of their clients, in reference to said account, in which they stated that the latter were willing and ready to settle their indebtedness to them, but that they would not pay the charges for bounty, which cn the account amounted to two hundred and fifty-four dollars and seventy cents. .That, in other words, if they would return their two notes (the five thousand dollar and the six thousand dollar notes) to the New Iberia National Bank and their account corrected, that is showing balance due three thousand two hundred and twenty-two dollars and seventy-eight cents, with instructions to the bank upon payment of this last amount they must turn over the notes to the plaintiffs and give full receipt to them, the three thousand two hundred and twenty-two dollars and seventy-eight cents would be paid at once. That this, however, was not to be construed as a waiver of any further reduction which plaintiffs might have as to interest and other overcharges in case of litigation, which they specially reserved. *

Shortly after receipt of this letter defendants sent 0. H. C. Brown to New Iberia to represent them in this matter in an interview with the parties and their attorneys at that place. A meeting took place between them in the latter part of March, at which the account was fully discussed and an offer was again made on behalf of the plaintiffs to pay the account that day if defendants, through Brown, would deduct the charge for commissions on the bounty money, but this offer was declined. In the course of the conversation which then took place Brown referred to the fact that defendants claimed that [84]*84plaintiffs were indebted to them for profits on the “ refinery account,” and for the price of the pump and, pipes which they had laid down, but plaintiffs refused to discuss those claims, as they bore upon distinct and separate matters. Brown intimated to plaintiffs that the promissory note for six thousand dollars was not yet due; that defendants could transfer the same before maturity and force any litigation which might arise between plaintiffs and defendants to be prosecuted in New Orleans.

A few days after this, Romero, one of the plaintiffs, and R. F. Broussard, one of their attorneys, called at the office o% H. & 0. Newman, in New Orleans, and there matters were again discussed, and the agreement to submit their respective claims to arbitration, to which reference has already been alluded, was reached. No allusion was made at that time to the fact that the note of six thousand dollars had been transferred to E. Feibelman & Co.

In--, 1893, the latter firm instituted executory proceedings in Iberia parish upon that note, claiming to be the owners of the same, before maturity, in due course of trade and for a valuable consideration, and demanding payment of the note with interest, attorney’s fees and costs. The present plaintiffs obtained an order for a suspensive appeal from the order of seizure and sale, but the appeal was dismissed in consequence of the appeal bond having been made for too small an amount'. In order to stop proceedings, plaintiffs were forced to pay Feibelman & Oo., on the 24th of February, 1894, the note with interest, and also attorney’s fees and costs.

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Bluebook (online)
23 So. 493, 50 La. Ann. 80, 1898 La. LEXIS 411, Counsel Stack Legal Research, https://law.counselstack.com/opinion/romero-v-newman-la-1898.