Succession of Harris

14 Teiss. 445, 1917 La. App. LEXIS 90
CourtLouisiana Court of Appeal
DecidedJune 30, 1917
DocketNo. 7099
StatusPublished

This text of 14 Teiss. 445 (Succession of Harris) 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
Succession of Harris, 14 Teiss. 445, 1917 La. App. LEXIS 90 (La. Ct. App. 1917).

Opinion

His Honor,

CHARLES F. CLAIBORNE,

rendered the opinion and decree of the Court, as follows:

[446]*446Opponents herein seek to recover as their own property certain sums of money which they allege were collected for rents for their account by their agent, the deceased, and by him deposited in bank to his own account.

Alphonse Harris died on May 6th, 1916; his succession was opened by his widow; she was appointed administra-trix. The inventory showed that his succession consisted of an item of $274.76 deposited by him to the credit of an account kept in his name in the Hibernia Bank, and an undivided one-half interest in real estate, appraised at $1500 for the half interest, and a half interest in the partnership of Danove and Harris not appraised. This real estate was subsequently sold as a whole for $875 to effect a partition, leaving nothing for the owners after paying costs and a mortgage upon it.

The administratrix filed an account by which she proposed to distribute the only asset in her hand, that is the sum of $274.76 deposited in the Hibernia Bank. It was absorbed by law charges and the widow in necessitous circumstances.

This account was opposed by Dr. Jensen and George Long. They averred that the deceased was their agent for the purpose of collecting their rents; that, in that capacity, he had collected for their account $299.50 for which he had not accounted to them; that said amount had been deposited in the Hibernia Bank in his name, although it belonged to them; that if it did not belong to them they were entitled to be paid by preference and priority over all other creditors because it was a trust fund upon which they had an equitable lien; and that the administratrix had failed to account for the proceeds of the real estate; they opposed each and every item on the debit side of said account, and allged that the sale of the real estate was null and void on several grounds.

[447]*447There was judgment in favor of the opponents recognizing them as creditors of the succession in the sum of $299.50, and entitling them to be paid by preference and priority over all other creditors out of the funds on deposit in the Hibernia Bank to the credit of the succession of Alphonse Harris, $274.76, “upon which fund the lien and privilege of opponents as depositaries is recognized and ordered enforced.”

From this judgment the widow individually and as ad-ministratrix and other creditors on the account have appealed.

We are of the opinion that there is error in that part of the judgment recognizing any privilege or right of preference or priority in favor of the opponents upon this fund in the Hibernia Bank. 1st. The opponents claim it by virtue of article C. C. 3261 (3228), conferring a privlege in favor of the depositor upon the thing deposited. But they were not the depositors; it was Harris who made the deposit. 2nd. Even he was not entitled to a privilege. This article refers to regular deposits, not to irregular bank deposits. One depositing money in bank to his account under an ordinary pass book and checking account, enjoys no privilege, because money so deposited, by mutual consent and common understanding ceases to belong to the depositor and bcomes the property of the bank with power to use it in its business, and is mingled with its other assets, and the depositor remains only an ordinary creditor of the bank for the amount deposited.

C. C. 3222 (3189) : “He who deposits a thing in the hands of another still remains the owner of it.”

C. C. 2963 (2934) :

“The only real deposit is that where the depositary receives a thing to be preserved in kind, without the [448]*448power of using it, and on the condition that he is to restore the identical object.”

134 La., 879; 135 La., 65.

3rd. Neither have the opponents, as principals, any privilege upon the property of their agent for the reimbursement of money collected by him. 9 La., 44; 1 R., 21; 31 A., 311; 134 La., 879.

4th. “There is in this State no such thing as an equitable lien on money, movables or other property. With us a lien or privilege is stricti juris, and must be expressly created by law.” 134 La., 879 (890).

The only right that opponents can assert upon the fund for distribution is one of ownership, by identifying the fund as the proceeds of the rents of their properties collected by Harris and depositd by him to his account.

The appellees have recognized this by their answer to the appeal praying to be recognized as such owners. The law of the case is established by several decisions of our Supreme Court.

Thus in the early case of Clay v. His Creditors, 9 M., 519, Grew had placed in the hands of the insolvent as security notes and bills of exchange to the amount of $12,000. Grew claimed to be classed as a privileged creditor. The Supreme Court said:

“These authorities are in my opinion, decisive on the question. They establish the principle, that when the debtor receives property by a contract which in its nature, does not transfer the dominion or right in it, that the owner retains the privilege of being paid in preference to other creditors, * * * and that if the thing be alienated, there is the same privilege on the price.”

In L’Hommedieu v. Perry, 6 La., 599, the plaintiff consigned a quantity of lime to Perry who sold it for account [449]*449of plaintiff. Among the purchasers was Bosque who gave his note payable at five months to Perry for $1412.44. Perry died; executors were appointed to his will and they collected the note and held the proceeds. The Supreme Court said:

“The present suit was instituted to enforce the plaintiff’s right to have the amount of the note separated from.the estate of the deceased and paid over to him. This was decreed by the Court of Probates and the executors appealed. The judgment of the Court of Probates appears to us perfectly correct. The deceased was the plaintiff’s factor. The note belonged to the former, and ought to have been returned to him without being mingled with thosé of the deceased; so must the proceeds.”

The leading case on the question is that of Longbottom v. Babcock, 9 La., 44. Cotton Henry claimed to be paid by privilege $1100 under the following circumstances: Long-bottom had been the agent of Cotton Henry; he had received from Henry a check for $1300 to be disbursed for his account; after his death $1100 were found in his store. Henry claimed to be paid this amount by privilege. The Court held, that there was no evidence to show that this sum is the same money received by the testator from Henry, and denied his claim.

In discussing this case in Young v. Teutonia Bank, 134 La., 879 (886), the Supreme Court said:

“The Longbottom case is stare decisis, and as between principal and agent, established the following rules:
“1. That the principal has no lien or privilege on the property of the agent;
“2. That the agent is bound to account for the money of his principal, but not to restore it in kind;
[450]*450“3.

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14 Teiss. 445, 1917 La. App. LEXIS 90, Counsel Stack Legal Research, https://law.counselstack.com/opinion/succession-of-harris-lactapp-1917.