Southwest Motor Co. v. White System of Lafayette, Inc.

55 So. 2d 609, 1951 La. App. LEXIS 936
CourtLouisiana Court of Appeal
DecidedDecember 20, 1951
DocketNo. 3467
StatusPublished

This text of 55 So. 2d 609 (Southwest Motor Co. v. White System of Lafayette, Inc.) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Southwest Motor Co. v. White System of Lafayette, Inc., 55 So. 2d 609, 1951 La. App. LEXIS 936 (La. Ct. App. 1951).

Opinion

■LOTTINGER, Judge.

The plaintiff, a commercial partnership engaged in the automobile business, instituted this suit against the defendant corporation, a lending agency, to recover the amount which it was forced to pay to the holder of an unknown chattel mortgage which had been in existence at the time the defendant had allegedly sold to plaintiff a 1940 model used Ford pickup truck. Judgment is sought in the total amount of $287.25, of which $187.25 represents the amount plaintiff was compelled to pay, and $100.00 -representing the amount prayed for as attorney fees for the prosecution of the suit. •

It is alleged in the petition that on February 14, 1949, the defendant sold the plaintiff the pickup truck for the price of $500.-00 and that at the time there were due and owing thereon three certain debts secured by chattel mortgage as follows:

“(1) That certain indebtedness due and owing by Numa Durio to the White System of Lafayette, Inc., dated August 12, 1948, in the original amount of $754.35, plus interest and costs, which said act of chattel mortgage was recorded in the Clerk’s Office, Parish of Lafayette, under Entry No. 214596, Book o*f Chattel Mortgage #21, page 583, on August 23, 1948:
“(2) That certain indebtedness due and owing by Numa Durio to Dauterive Motor Company, dated September 1, 1948, in the original amount of $231.52, .plus interest and costs, which said act of chattel mortgage was recorded in the Clerk’s Office, Parish of Lafayette, under Entry No. 215035, Chattel Mortgage Book #21, page 603, on September 7, 1948; and
“(3) That certain indebtedness due and owing by Numa Durio to Southwest Motor Company, dated January 14, 1949, in the original amount of $125.02, plus interest and costs, which said act of chattel mortgage was recorded in the Clerk’s Office, Parish of Lafayette, under Entry No. 219547, Chattel Mortgage Book #22, page 142, on January 14, 1949.”

[610]*610The plaintiff alleged further that at the time it did know of the chattel mortgage in favor of itself and that in favor of the defendant, but that it was unaware of the existence of the mortgage in favor of the Dauterive Motor Company. It was agreed in the sale, plaintiff averred, that the defendant would cancel its first mortgage and that plaintiff would assume the payment of its own mortgage.

The further allegation was made that on September 1, 1948 (evidently intended to mean 1949), plaintiff sold the truck with guarantee of title and free from all encumbrances, to one Duglas Duhon; that in December, 1949, the Dauterive Motor Company (holder of the outstanding second chattel mortgage) made demand on the plaintiff for payment of same at which time plaintiff called in warranty its vendor, the defendant herein, who refused to either pay the amount due or to reimburse the plaintiff in the event it should choose to pay the mortgage 'indebtedness.

The petition then sets 'forth that on January 20, 1950, the Dauterive Motor Company instituted suit against Numa Durio, the original owner of the truck and mortgage debtor, and by executory process obtained a suit of seizure and sale to satisfy its claim of $154.13 together with interest, costs and attorney fees. These proceedings are made .a part of the petition by reference and show that the truck was seized from Duhon, the plaintiff’s vendee.

Subsequently Duhon ¡made demand on the plaintiff, and it is then alleged that the plaintiff paid to' Duhon and his attorney the sum of $187.25 in full payment of the chattel mortgage and that thereafter the seizure was released. Demand was later made on the defendant for the said amount and the latter having refused payment, suit was filed for the $187.25 and $100.00 as attorney fees as well.

The delfendant in its answer denied the alleged sale to1 the petitioner but admitted the existence of the three chattel mortgages. •It then alleged that it was the holder of the first mortgage and that it learned in January, 1949, through the “Daily Legal News” of the plaintiff’s mortgage. At this time, the defendant averred, Durio’s account with it was delinquent and foreclosure proceedings had been contemplated. After learning of the plaintiff’s mortgage, a Mr. Frank Clay, a representative of the defendant corporation contacted a Mr. L. A. Bourgeois, a member of the plaintiff partnership, advised him of their first mortgage and that they were contemplating foreclosure. It is further alleged that Mr. Bourgeois then, suggested that defendant hold up any such procedure for a few days until his company could investigate the possibility of taking over the truck and paying off defendant’s mortgage without necessity of foreclosure.

The answer then sets out that later Clay, together with Bourgeois, went to-see Durio who agreed to surrender the truck to the plaintiff provided the latter be relieved of all indebtedness to both plaintiff and defendant. It was agreed at that time, defendant averred, that plaintiff would pay defendant’s mortgage and that it did pay the sum of $500.00 in full settlement of the mortgage. It is further set out that the defendant had no knowledge of the Dauterive Motor Company mortgage until advised by their attorney in December, 1949. The defendant also expressly averred that at no time did it acquire or sell to the plaintiff the truck and the $500.-00 was accepted in full settlement of the first mortgage which 'it held against the truck.

The testimony in the record is just as conflicting as the allegations of the petitioner and answer. The trial judge, in his written reasons for judgment, held that there was a lack off understanding between the parties and rendered judgment in favor of the defendant, from which judgment the plaintiff has appealed.

According to Mr. L. A. Bourgeois, a witness for the plaintiff, the track was definitely repossessed by the defendant from Durio and then sold to them. The following is his testimony in this regard:

“Q. Will you give the court the benefit of the conversation which you had with Mr. Clay? The first conversation. A. Yes, Mr. Clay told me that he had the first [611]*611mortgage on Mr. Numa Durio’s truck and that he was delinquent in his payments and he was going to repossess the truck. He told me that Mr. Durio owed him $550 and if I gave him $500 for the truck that he was going to repossess the truck and asked me if I would give $500 for it.
“Q. Was that conversation over the telephone? A. No, that was in my office.
“Q. Was anybody else there at the time? A. No.
“Q. What was your answer? A. I told Mr. Clay that I didn’t know the condition of the truck and if it was worth the money I would buy it from him.
“Q. You didn’t do any business with him on that particular day? A. No.
“Q. Did you meet again with Mr. Clay on the same subject matter ? A. He called me up and told me that he was going to repossess the truck that same afternoon and wanted to know if I was willing to give him $500 for the truck. I told him that I hadn’t seen the truck and that I would be glad to go out there with Mr. Theaux to let Mr. Theaux pass judgment; that Mr. Theaux was the used car man and he appraised our used cars.
“Q. Did you subsequently go out there, and if so, with whom? A. I asked him what time he was going out there and he told me. I said, T will ipick you up’, which I did.

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Bluebook (online)
55 So. 2d 609, 1951 La. App. LEXIS 936, Counsel Stack Legal Research, https://law.counselstack.com/opinion/southwest-motor-co-v-white-system-of-lafayette-inc-lactapp-1951.