Smith v. McMicken

12 La. 653
Supreme Court of Louisiana·Decided February 15, 1846·Published

Opinion

Simon, J.

The facts of this case are these : It appears that, in December, 1839, Peyroux, Arcueil & Co., having sued Charles C. S. Farrar and his wife, Mary A. Farrar, for the recovery of a certain sum of money, judgments were confessed by each of the defendants respectively in favor of the plaintiffs, in the following manner; to wit: the husband confessed judgment for the sum of $8031 40, with interest, and the wife confessed judgment for the sum of $8402 13, also with interest; whereupon regular judgments were rendered and signed accordingly.

On the 31st of August, 1843, Peyroux, Arcueil & Co., being yet the owners of the aforesaid judgments, executed an act of pledge by notarial act, in favor of the Consolidated Association and of the- Citizens Bank of Louisiana, creditors of their firm, in a certain amount therein stated, in and by which they stipulated a transfer to the said banks, a titre- de gage ei de nantissement, of the judgment by them heretofore obtained against Charles C. S. Farrar for the sum of $8031 40, with interest, taking charge and promising to take all necessary steps to recover and collect the amount of said judgment, at their own expense, for the benefit of said banks, to whom the proceeds thereof were to be paid, The judgment against Mary A. Farrar is not mentioned in the act of pledge.

On the 5th of January, 1844, a power of attorney was executed by the partners of the house of Peyroux, Arcueil & Co., then in liquidation, to their co-partner, L. R. Arcueil, authorizing him to manage and transact all their affairs, business and concerns of whatsoever nature and kind, without exception or reserve whatsoever ; to open their letters of correspondence addressed to the firm; to make and endorse promissory notes; to make checks and draw money out of banks; to deposit drafts and bills, &c.; to sell or transfer all or any shares of the capital stock of any bank; to pledge and pawn them, &c.; and giving him all such other detailed powers as were deemed necessary for the liquidation of the firm, without, however, expressly and specially giving him any authority to sell or transfer any of the claims, credits, or assets of said firm to any person; but authorizing him merely to ask ‘ demand, recover and receive, all such sums as [655] might be due to the firm, by virtue of whatever right or means to them appertaining, and to adjust and settle all accounts, &c., and to do and perform all acts necessary for the affairs and concerns of the firm in liquidation.

On the 26th of March, 1844, Arcueil, by an act under private signature, and acting for himself, and as the. agent of his firm, under the said power of attorney, executed a transfer or assignment of the two judgments heretofore obtained against C. O. S. Farrar and his wife, to William D. Boyle. No consideration is expressed in the act, but it is therein recited, that “ the consideration of this transfer is expressed more fully in an act passed this day, (26th of March, 1844,) before Amedée Ducatel, notary public of this city, to which Hypolite Gaily and James B. Hul-lin, myself, and William D. Boyle are parties? This last act, however, was not produced in evidence in this cause.

On the 4th of April, 1844, William D. Boyle, executed a transfer of the said judgments to thei plaintiff in this suit, in consideration of which the transferee assumed the payment of certain notes given by the transferror and endorsed by other persons, payable in five annual settlements from date, for a sum left in blank, referring to a notarial act passed in New Orleans on the 25th of March preceding, to the Citizens Bank and the Consolidated Association. This assignmentwas duly notified to the debt ors, on the 13th of July, 1844.

It further appears, that a suit having been instituted, in April, 1844, by the defendant, McMicken, against Peyroux, Arcueil & Co., for a large sum of money, judgment was rendered against the latter,, in May following, by virtue of which an execution, issued on the 2d of July, was levied on the 5th, on the judgments against Farrar and wife, which levy was renewed on the 5th of August, by direction oí the plaintiff’s attorneys; and notices thereof were duly given by the Sheriff, on the same and following days, as other notices had also been previously given to the parties therein interested, in consequence of the previous seizure.

On the 7th of September, 1844, the present suit was instituted by injunction, which was obtained on the allegations of the plaintiff, Gordian A. Smith, that he was the owner of the judgments [656] rendered in favor of Peyroux, Arcueil & Co., against C. C. S. Farrar and his wife, by virtue of the transfers and assignments above referred to; that those judgments had been previously conveyed by act of pledge to the Citizens’ Bank and the Consolidated Association, whereof due notice was given to Farrar and wife, and a copy of the same furnished to them; that due notice was also given to the said Farrar and wife, of the transfer made by Arcueil to William D. Boyle, and of that of the latter to the petitioner; that the firm of Peyroux, Arcueil & Co. had no interest whatever in the said judgments at the time of the seizure thereof, and that he, the plaintiff, is in danger of being illegally deprived of his rights over the same, &c.

The sale of the judgments seized was arrested by the issuing of the writ of injunction; and the defendant, McMicken, filed his answer, first pleading the general issue and requiring strict proof of the plaintiff’s allegations ; he further denied the validity of the transfer of the judgments; alleged that the pretended transfer made to William D. Boyle was fraudulent and collusive; and prayed, that the injunction might be dissolved, and the plaintiff condemned to pay interest and damages, &c.

Judgment was rendered below in favor of the plaintiff, perpetuating his injunction; and the defendant, after an unsuccessful attempt to obtain a new trial, took this appeal.

The first question to which our attention is called, under the state of facts above exposed, is, whether the transferror, Arcueil, acting for the firm of which he was a member, and which was in a state of liquidation, was sufficiently authorized by his power of attorney to transfer to others, the debts, rights and credits, or the general assets belonging to the firm ? If he was, could he do so for any other purpose but for that of bringing the partnership to its final liquidation ? And if he was not, would not the transfer by him made to Boyle be null and void, unless it be shown that it was made for a good and valuable consideration, in relation to the. liquidation of the firm then under his charge ?

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Smith v. McMicken, 12 La. 653 (La. 1846).

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