Seal v. Gano

107 So. 473, 160 La. 636, 1926 La. LEXIS 1938
CourtSupreme Court of Louisiana
DecidedFebruary 1, 1926
DocketNo. 25655.
StatusPublished
Cited by10 cases

This text of 107 So. 473 (Seal v. Gano) 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
Seal v. Gano, 107 So. 473, 160 La. 636, 1926 La. LEXIS 1938 (La. 1926).

Opinion

THOMPSON, J.

This is an appeal by the plaintiff from a judgment which dismissed his suit on an exception of want of jurisdiction ratione materias and ratione person® filed by the defendant Gano, who is a resident of the city of New Orleans, and the United -States Fidelity & Guaranty Company domiciled at Baltimore, Md., and having an agent in this state residing also in said city of New Orleans.

The defendant Gano on August 16, 1919, entered into a written contract with the police jury of Concordia parish and the state highway commission to build a division of the state highway system of public roads from Yidalia to Tensas river.

The contract and the bond of the contract- or with the aforementioned company as surety were duly recorded in the parish where the work was to be done.

The contractor, Gano, employed the plaintiff to execute certain work on said highway which is fully set out in the petition.

The road was completed and was accepted by the police jury and the state highway department, though no written acceptance was ever placed of record.

The plaintiff filed with the police jury and with the highway department. and caused to be recorded in the mortgage office of Concordia parish a sworn statement of the work he had performed and the amount due him; the said filing and recordation being made prior to the acceptance of the road by the public authorities.

The contractor having failed to pay the plaintiff after due demand, and there being other claims of workmen recorded against the contractor, this suit was filed in the district court of 'Concordia parish.

The prayer is that the police jury, the state highway commission, Gano, the con *639 tractor, the surety company, and two workmen, who had not been paid, and who had recorded claims against the contractor, be duly cited and required to assert whatever claims they may have against said Gano and the surety company, to the end that all claims may be tried in concursus, and finally that plaintiff ¡have judgment against the said Gano and said surety company for $2,-619.05, with legal interest from October 1, 1921, and 10 per cent, attorney fees. •

The proceeding is- instituted under Act No. 224 of 1918.

That act provides that when public buildings, public roads, or public work of any character are about to be constructed under contract in excess of $500 at the expense of the state, or any parish, city, town, etc., it shall be the duty of the official representative to reduce said contract to writing and to require of the contractor a bond in the sum not less than 50 per cent, of the contract price for the faithful performance of the work and with the additional obligation for the payment by the contractor for all work done, labor performed, or materials furnished in the construction of the work contracted for.

The act further provides that any person to whom any money shall be due for work done, labor performed, or materials furnished, may file with the authority having the work done and record in the mortgage office, at any time after the maturity of his claim, a sworn statement of the amount due him.

It is further provided that any person to whom any money shall be due for work done shall, within 45 days after the acceptance of said work by the public authorities having such work done, or within 45 days after the default of the contractor, file with the said authority a sworn statement of the amount due him and_reeord a sworn statement thereof in the mortgage office. It is provided that the said 45 days shall not begin to run until the said authorities shall record in the mortgage office an acceptance of the work, or notice of the default of the contractor.

It is further provided that, if at the expiration of said 45 days there are recorded claims filed with the said authorities and recorded in the mortgage office unpaid, the said authorities shall file a petition in the proper court where the work was done, citing such claimant and contractor and surety on the bond, and the said authorities shall assert whatever claims they have against any and all of them, and to require the said claimants to assert whatever claims they have against any and all of them, and all of-said claims shall be tried in concursus.

It is further provided that, if the authorities do not file such a concursus proceeding, then any person having a claim for work done, labor performed, or materials furnished, may do so.

It may be conceded, in fact, we believe it is conceded, that, if the plaintiff is entitled to proceed under the act referred to in the Concordia court, and if the allegations of his petition bring him within the terms of said act, then the court of Concordia parish was .competent to render a personal judgment against the contractor and his surety, notwithstanding the fact that the domicile of the contractor and his surety was without the territorial and jurisdictional limits of said court.

The exception to the jurisdiction ratione materise is predicated upon the contention that the proceeding is not one in concursus, because there is no money on deposit to be distributed among the creditors and no fund or property under seizure on which the rights of the creditors are to be adjudicated and regulated.

Counsel, cite numerous authorities going to show that a' concursus is in the nature of a proceeding in rem and can only take place where there is property or money in pos *641 session of the court, or brought under its control by appropriate process.

Ordinarily, this is true, and no fault can be found with the authorities so holding under the peculiar issues and circumstances involved in the cases cited.

But the proceeding here under consideration does not fall within the rule laid down in the authorities cited.

It is a special remedy afforded a certain class of creditors for the concurrent enforcement of their' claims and to regulate their rights as between themselves and against a contractor doing public work, and the surety on his bond.

It is a statutory eoncursus authorized to be instituted under certain conditions by the public authorities letting the contract for the public work, or by any person having a properly recorded claim against the contractor who performed the work or caused the same to be done, in the event the authorities failed or neglected to exercise the right.

The bond furnished by the contractor for the benefit of the authorities having the work done and for the benefit of claimants against the contractor represents the fund upon and against which the rights of the creditors of the particular work are to be regulated and enforced.

The authority of the Legislature to authorize such a proceeding and to determine the jurisdiction in which such a proceeding may be instituted is not questioned.

In the case of Sehroeder v. Nicholson, 2 La. 350, it was said:

“The .suit in concurso is a remedy provided by state laws, to enable creditors to enforce their claims against a debtor. Its constitutionality, so 'far as it affects creditors, citizens of this state, cannot be questioned.
“This has been settled by the highest authority.”

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Bluebook (online)
107 So. 473, 160 La. 636, 1926 La. LEXIS 1938, Counsel Stack Legal Research, https://law.counselstack.com/opinion/seal-v-gano-la-1926.