Southern Mutual Insurance v. Pike

34 La. 825
Procedural entryThis page is a short order in Southern Mutual Insurance v. Pike. Read the opinion of the Court — 33 La. Ann. 823
Supreme Court of Louisiana·Decided May 15, 1882·No. No. 7526·Published

Opinion

The opinion of the Court was delivered by

Todd, J.

This is a suit against the widow and heirs of the late William S. Pike, to compel the rendition of an account of his administration of the affairs of the plaintiff Company, aspresident of said Company, and to recover the sum of $280,235.32, the alleged amount of money and funds of the corporation received by him, and of his alleged liabilities for premiums collected, those he failed to collect, etc., and also for the delivery of the notes, hooks, seals, and other property of the Company held by him at Ms death.

[827]*827The character of the action, and the history of the litigation connected with the subject matter of the suit, will be fully seen by referring to cases 7051 and 7821 of this Court, reported in 32 An. 483, 492. The first of these cases was identical with the instant one, except that though the petition in that case charged the same liabilities against all the heirs, the present defendants, and for the same causes as in this case, William S. Pike, Jr., one of the heirs, a resident of the Parish of East Baton Rouge, where that suit was brought, was alone cited.

This Court, by its decree in that case, ordered the defendant therein, W. S. Pike, Jr., to render an account of the administration of the said William S. Pike, Sr., as president and treasurer of said Company, within sixty days after notice of the judgment.

The case 7821 mentioned, shows that in obedience to this decree, W. S. Pike, Jr., rendered the account called for, and pleaded against the action and demands of the corporation the prescription of ten years. This Court affirming the judgment of the District Court, overruled the plea of prescription, so far as related to specific property sought to be recovered, and sustained the plea against the moneyed demand.

In the instant case, the defendants are appellants from a judgment of the District Court, condemning them to pay $115,464.70, and ordering a rendition of an account of W. S. Pike’s administration of the Company’s affairs up to the time of his death, which occurred in 1875.

The defense relied on in this case is the one that prevailed in the previous case — the prescription of ten years against the moneyed demand.

The plaintiff’s counsel, whilst denying the correctness of the decision' in that case, urge that there are certain admissions in the answers of the defendant in this case, that not only takes it out of the principle of that decision, but actually precludes the defendants from entering the plea of prescription, and the Court from entertaining it, and this argument prevailed with the Court of the first instance, as shown by its decree now under Teview.

The admissions referred to we copy from the answer, and are as follows:

Defendants admit that from the 21st day of January, 1856, up to the said day of Wm. S. Pike acted as president and treasurer of the Southern Mutual Insurance Company, in the City of Baton Rouge, but aver that all the business of said corporation ceased in the year 1862, owing to the war then existing between the United States and the Confederate States, and that after that period no new risks were taken. That on the expiration of the practical workings of the corporation in the year 1863, there was on hand in Confederate money, the sum of one hundred and fifteen thousand, four hundred and sixty-four, and [828]*82870-100 dollars, which the said Pike was obliged to receive in tlio business of the Company, in the discharge of 1ns dirties as president and treasurer, that being' the only currency then in use in the State of Louisiana.
“That in the year 1863, the said Win. S. Pike removed to the City of New Orleans, where he resided until his death, in the year 1875. That when he came to this city, as aforesaid, he brought with him the only assets of the Company then existing, consisting of the said $115,-464.70 in Confederate currency, which still exists in kind in the possession of these Respondents, and which is herewith tendered in court to await the order of court.”

These admissions follow the general denial.

The answer in the other case decided by our predecessors, contained substantially the same averment of the conversion of the funds of the Company into Confederate money and the compulsory cause thereof; but there was not in that answer, as in this, a tender of the Confederate money, and it is claimed, besides, that in this answer there is virtually an admission that Pike was the president and treasurer of the Company up to the time of his death, and that during this time prescription could not run in his favor.

The admission is claimed to be found in this expression :

“ Defendants admit that from the 21st day of 'January, 1856, up to the said day of Win. S. Pike acted as president and treasurer of-the Southern Mutual Insurance Company.”

It is this language of the answer which, as stated, it is claimed is inconsistent with, and precludes the plea of prescription filed by defendants. The nature and effect of this part'of the answer are first to be considered.

It is an elementary rule of practice that where a particular thing is demanded in a suit, and the delivery of that thing is tendered by the defendant, in response to the petition, or where a liability is charged for a stated debt, and the money is sought tobe recovered, a tender of the sum claimed, or a part thereof, amount to judicial admissions touching the thing or the money demanded, that cannot, as a rule, be defeated by prescription or any other defense inconsistent with a liability for the thing or money tendered on the part of the defendant, and the right of th.e plaintiff to receive that thing or recover that money. It is quite as elementary, however, that the tender made must accord strictly with the demand.

Here the suit is for the restitution of certain specific objects, and to establish a liability for, and compel the payment of a large sum of money. As to the moneyed demand, the defendants deny any liability therefor, and, as wo construe it, not to weaken that denial, but to [829]*829strengthen it and to g'ive-a reason therefor, they say that the party, whom they are sued as representing, never liad in his possession and keeping the sunr of money charged, and which receiving possession and keeping is averred to be the very basis of their demand, but that only “ Confederate money ” was received by him through compulsion ; and which Confederate money, worthless though it be, is tendered to the plaintiff as the money and only money that Pike had received and kept as president and treasurer of said Company.

We do not think the admission on this point, and the tender referred to, have the force and effect contended for and constitute a confession on the part of the defendants that they owe to the plaintiff the amount of Confederate money so tendered, $115,464.70, in lawful currency of the United States, for which alone — and not for Confederate money— they were sued. And our conclusion is the same, whether we consider the entire answer as a whole, or the parts thereof separately. The admission that Confederate money had been received and the tender in kind of this money, could not reasonably be coustrued as a confession that the defendants, or the party they represented, owed a like amount in any kind or sum of money.

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Southern Mutual Insurance v. Pike, 34 La. 825 (La. 1882).

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