Sligo Iron Store Co. v. Blanks

105 La. 663
CourtSupreme Court of Louisiana
DecidedJuly 1, 1901
DocketNo. 13,977
StatusPublished
Cited by2 cases

This text of 105 La. 663 (Sligo Iron Store Co. v. Blanks) 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
Sligo Iron Store Co. v. Blanks, 105 La. 663 (La. 1901).

Opinion

Statement of the Case.

The opinion of the court was delivered by

Nicholls, C. J.

The plaintiffs in this case, sixteen in number, appeal from a judgment dismissing their suit upon an exception of no cause of action and prescription.

In the petition filed by them after setting forth the amounts which they alleged to be due to each respectively by the Woodworth Lumber Company, Limited, they averred that on the 16th of May, 1898, the said company was dissolved and O. A. Haydon and O. S. Woodworth were appointed commissioners to liquidate the affairs of said corporation. That the said commissioners sold the property, rights and credits of the said company, to R. B. Blanks for $80,000.00 cash paid, which was deposited in the M. & E. Bank to the credit of the said Haydon and said Woodworth, commissioners, and! that the said commissioners appointed R. B. Blanks, president of the M. & E. Bank, their agent for the purpose of distributing said fund among the creditors of the said corporation. That the said commissioners were directed and ordered to use said funds for the payment of all the debts of the said Woodworth Lumber Company, Limited, as far as said funds would go; that said commissioners signed checks in blank and left them with the said [665]*665Blanks for the purpose of paying all the creditors of the said corporation 50' cents on the dollar, except the costs of court and the labor claims, which were to be paid in full; that two of petitioners, to-wit: C. W. Sheets and A. H. Hoot, had a lien and privilege, as laborers, for the amount of their claims on the lumber owned by the said Wood-worth Lumber Company, Limited, and sold by said commissioners.

That there were no other privileges whatever against said fund, but that all privileges and rights of preference were relinquished and abandoned by all of the creditors who agreed to accept 50 cents on the dollar in settlement of their claims, including petitioners. That E. B. Blanks, individually, and as president of the M. & F. Bank of Monroe, acting by the authority of said commissioners, proceeded to distribute said funds in violation of his agreement, and the agreement entered into by all of the creditors of the said company, but refused and failed to pay petitioners any part of said fund, and the said commissioners had failed to pay anything to petitioners, notwithstanding amicable demand.

That the said E. B. Blanks and the said commissioners illegally and unfairly paid to the M. & F. Bank, out of said funds by check dated May 21st, 1898, $39,993.39 in payment of nine promissory notes, all dated March 1, 189'7, at the same time, and in pursuance of the same agreement ,that the notes were signed in favor of the Bank; that the said notes bore no privilege whatever on said funds; that only three of said notes were due at the time of said payment; that the nine notes aggregated $39,993.39, and that the amount, for which the commissioners and E. D. Blanks gave the bank a check, exceeded the entire principal of said notes by $60.12.

That the said M. & F. Bank and E. B. Blanks received the further amount of $8000 from the Eau Claire St. Louis Lumber Company as a bonus on the sale of the property of the Woodworth Lumber Company, Limited, in addition to the purchase price paid by said commissioners; that the attempt to pay said amount of the said funds to the M. & F. Bank was illegal, wrongful and a fraud upon petitioners’ rights, and was done for the purpose of giving the said M. & F. Bank an unjust and unlawful preference and advantage over the other creditors of the said Woodworth Lumber Company, Limited.

That the said E. B. Blanks, individually, and as president of the M. & F. Bank, agreed to act and did act as the agent of the said commissioners in the distribution of said funds, and he and the said bank [666]*666were liable in solido to petitioners for their rightful and legal share of said fund.

That they were informed and believed that the said R. B. Blanks had paid a pro-rata share of said funds to all of the creditors of the said Woodworth Lumber Company, Limited, except petitioners. That the said M. & F. Bank, under the agreement entered into by all the creditors prior to the sale, was entitled to only fifty per cent, of its claims, to-wit: the sum of nineteen thousand seven hundred and sixty-six 63-100 dollars, and that the balance of the amount assumed to be transferred to said M. & F. Bank still belonged to the Woodworth Lumber Company, Limited, and the commissioners thereof, for the benefit of all its creditors.

That in pursuance of the agreement entered into by all the creditors, except the labor claims and costs aforesaid, all the attachment and other suits against the Woodworth Lumber Company, Limited, were dismissed and. the property released, and all claims and mortgages whatsoever were cancelled and erased, thus placing all creditors on a plane of exact equality.

That said commissioners had disposed of said funds illegally; that they turned the same over to said R. B. Blanks individually and as president of the said M. & F. Bank, with a book of cheeks signed in blank, for the purpose of giving said Blanks and said bank an unfair and unjust preference and advantage over petitioners, and to defeat their rights and claims against said funds.

In view of the premises, they prayed that C. S. Woodworth, O. E. Haydon, R. B. Blanks and the Merchants and Farmer’s Bank of Monroe, be cited to appear and answer hereto; that on final trial petitioners have and recover judgment against said defendants, in solido, for fifty per cent, of their respective claims above set forth against the Woodworth Lumber Company, Limited, with legal interest from May 23rd, 1898; that said Woodworth and Haydon be ordered and compelled to file a full and correct tableau and account of the funds received by them for the sale of the property of the Woodworth Lumber Company, and that said R. B. Blanks and said Merchants and Farmer’s Bank be ordered to return and distribute among the creditors of Wood-worth Lumber Company, Limited, all the funds deposited by said commissioners in said bank on May 21st, 1898, and to pay over to petitioners their legal and just share of said funds.

They further prayed for all such further orders and decrees and [667]*667proceedings as may be necessary to place them on an equal footing with the other creditors of the Woodworth Lumber Company, Limited, and for all costs and for general relief.

Defendants excepted that plaintiffs’ petition disclosed no cause of action, and that if it did the cause of action was long since prescribed; they further pleaded estoppel.

The District Court overruled the pleas of res judicata and estoppel, and sustained their plea of no cause of action and prescription, and plaintiffs appealed.

Opinion.

The defendants filed in the Supreme Court a motion to dismiss the appeal on the ground that the court was without jurisdiction ratione materiae. They claim that the action brought is a revocatory action and that the aggregate amount of the complaining creditors’ claim being less than two thousand dollars, the Supreme Court has no jurisdiction. We do not consider the action a revocatory action, though there are allegations of unjust preference having been given and of wrong doing.

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Bluebook (online)
105 La. 663, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sligo-iron-store-co-v-blanks-la-1901.