Rose v. Eunice Electric Theatre Co.

97 So. 322, 154 La. 81, 1923 La. LEXIS 1895
CourtSupreme Court of Louisiana
DecidedFebruary 26, 1923
DocketNo. 25544
StatusPublished
Cited by14 cases

This text of 97 So. 322 (Rose v. Eunice Electric Theatre Co.) 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
Rose v. Eunice Electric Theatre Co., 97 So. 322, 154 La. 81, 1923 La. LEXIS 1895 (La. 1923).

Opinion

OVERTON, J.

The Eunice Electric Theatre Company desired to construct a brick building, on two lots owned by it, in the town of Eunice, the building, when constructed, to be used for theatrical and mercantile purposes. The company did not let a contract for its construction as a whole, but undertook to do the work, without such a contract, through a firm of architects and a foreman and purchasing agent employed by it. The architects were not only to prepare the plans and specifications, but were employed also to advise in the letting of contracts for labor and material, and to render certain general services as engineers and superintendents of construction, for which they were to receive a percentage of the total cost of the work. The foreman was employed to supervise the construction of the building, and was vested with power to contract fpr labor and material. However, in supervising construction, and in contracting, he was under the general directions of the [84]*84architects, and his work and the contracts entered into by him! were subject to their approval. The construction of the building progressed until February 19, 1921, when the company found that it was financially unable to complete the work and make the necessary payments, and that it was unable to pay even for balances due for material that had been furnished and for work that had been done. The foreman then notified the lien claimants of the financial distress of the company, and suggested that they file their liens against the property.

On April 5, 1920, while the work was in progress, the foreman, acting for the company, entered into a contract with D. O. Rose, Jr., the plaintiff herein, to furnish the material and labor for, and to install, the plumbing, heating, and electrical work for the building. For the electrical work complete, not including certain fans, it was agreed that Rose should receive $4,000, for the plumbing, $1,259, and for the heating, $8,900, making a total of $14,159. It appears that Rose complied with his contract in all respects, and that, on its completion, the work, labor, material, and equipment furnished amounted to $14,259, or $100 in excess of the original contract price. During the course of the work Rose received on account $6,825.95, leaving a balance due him of $7,433.05. On February 4, 1921, 15 days prior to the cessation of all work on the building, and prior to the final acceptance of his work, Rose recorded in the mortgage records of the parish an affidavit showing the above balance due him, and asserting a lien and privilege on the building, and on the lots on which it is located, for labor performed and material furnished. To this affidavit is attached a statement, which was recorded with it, itemized to the extent of showing the amount to which he is entitled, according to his contract, for the installation of each one of the three systems above mentioned, including the furnishing of the necessary material |or each, in which affidavit is included the additional $100 just mentioned. In April, 1921, about two months after the above affidavit and the statement attached to it were recorded, Rose instituted suit against the -Eunice Electric Theatre Company for the above balance of $7,433.05, with legal interest thereon from February 2, 1921, and for the recognition of his privilege, as furnisher of material, and for labor performed in installing said systems, and recovered judgment for that balance, with interest, and with recognition of the privilege claimed by him’.

■ In September, 1920, several months after Rose had entered into his contract, the Eunice Electric Theatre Company executed a mortgage to secure a note, payable to the order of the American Bank & Trust Company, for $15,000, and signed by the former company as maker. In October following, which was prior to the recordation of Rose’s privilege, the above mortgage was duly recorded. The note, secured by the mortgage, 'was indorsed by the American Bank & Trust Company to the Interstate Bank & Trust Company, as collateral security. The latter company instituted suit on • the note and mortgage against the Eunice Electric Theatre Company; and, in,May, 1921, recovered judgment thereon, for the amount of the note, and for the interest and attorney’s fees stipulated therein. The judgment recognized the mortgage.

Some time following the recovery of the above judgment, Rose caused execution 'to issue on the judgment recovered by him, and caused the building and lots, against which he had recorded his privilege, to be seized and advertised for sale, to satisfy his judgment. The Interstate Bank & Trust Company then filed a third opposition, in which it asserts the right to be paid out of the proceeds of the sale of the property seized, by virtue of its prior recorded mortgage, substantially- for the reason that Rose has no privilege on the property; that the privilege [85]*85was not preserved in the manner prescribed by law; and for the further reason that, if he has a privilege, it is subordinate to third opponent’s mortgage, as it was not recorded in the manner and within the time prescribed by law.

As there can be no privilege unless there is a debt, the first question to be determined is whether the record discloses that the Eunice 'Electric Theatre Company is indebted to Rose for the equipment installed by him, and for the work done in installing it. The judgment recovered by Rose, together with the evidence offered by him to support it, is in the record. The Interstate Bank & Trust Company, third opponent herein, was not a party to the suit in which that judgment was recorded, and is therefore not bound by it. The judgment, however, affords prima facie proof of the indebtedness, .and there is nothing in the record to overcome that proof. Moreover, the evidence, as a whole, without reference to the judgment, is sufficient to establish the indebtedness.

Having considered the above question, the next to be considered is: Has Rose a privilege to secure the above indebtedness, and, if he has, does it prime third opponent’s mortgage, although recorded some time after the recordation of the mortgage? In discussing this phase of the ease third opponent contends “that a contractor (referring to one for the construction and repair of buildings and other works) has no privilege whatsoever if his contract is for more than $500 unless the contract is reduced to writing and recorded in the mortgage office within the time required by law,” and also that “the privilege of a contractor is inferior in rank to the claim of a person holding a mortgage on the building or other work unless the privilege is recorded within ‘seven days from the date of the act or obligation of indebtedness.’ ”

In support of its first contention, stated above, third opponent cites -article 2775 of the Revised Civil Code of 1870, which has reference to the privilege accorded the contractor or undertaker for work, and which reads as follows:

“No agreement or undertaking for work exceeding five hundred dollars, which has not been reduced to writing, and registered with the recorder of mortgages, shall enjoy the privilege above granted.”

In support of its second contention, third opponent cites article 3274 of that Code, which reads as follows:

“No privilege shall have effect against third persons, unless recorded in the manner required by law in the parish where the property to be affected is situated.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Union Homestead Ass'n v. Finck
156 So. 458 (Supreme Court of Louisiana, 1934)
Lawrence v. Wright
124 So. 697 (Louisiana Court of Appeal, 1929)
Mercier v. Munich
120 So. 522 (Louisiana Court of Appeal, 1928)
Dixie Bldg. Material Co. v. Chartier
8 La. App. 469 (Louisiana Court of Appeal, 1928)
Burkes v. Kennedy
5 La. App. 338 (Louisiana Court of Appeal, 1927)
Monroe Hardware Co. v. Thompson
110 So. 495 (Supreme Court of Louisiana, 1926)
J. J. Clarke Co. v. Petivan
109 So. 913 (Supreme Court of Louisiana, 1926)
Clarke Co. v. Petivan
5 La. App. 97 (Louisiana Court of Appeal, 1926)
Cook v. Carter
106 So. 704 (Supreme Court of Louisiana, 1925)
Julius Aaron & Son v. Keyser
2 La. App. 649 (Louisiana Court of Appeal, 1925)
H. W. Johns-Manville Co. v. Eunice Electric Theatre Co.
1 La. App. 228 (Louisiana Court of Appeal, 1924)
McNaspy v. Eunice Electric Theatre Co.
97 So. 327 (Supreme Court of Louisiana, 1923)
Berwick v. Eunice Electric Theatre Co.
97 So. 328 (Supreme Court of Louisiana, 1923)
McKinney v. Eunice Electric Theatre Co.
97 So. 327 (Supreme Court of Louisiana, 1923)

Cite This Page — Counsel Stack

Bluebook (online)
97 So. 322, 154 La. 81, 1923 La. LEXIS 1895, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rose-v-eunice-electric-theatre-co-la-1923.