Swift v. Bonvillain

71 So. 849, 139 La. 558, 1916 La. LEXIS 1591
CourtSupreme Court of Louisiana
DecidedApril 24, 1916
DocketNo. 20408
StatusPublished
Cited by14 cases

This text of 71 So. 849 (Swift v. Bonvillain) 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
Swift v. Bonvillain, 71 So. 849, 139 La. 558, 1916 La. LEXIS 1591 (La. 1916).

Opinion

Statement of the Case.

MONROE, C. J.

Plaintiff brought this suit on a promissory note for $3,056.11, of which [562]*562defendant was the maker, and which, when sued on, was past due by nearly a year. Defendant filed an exception of prematurity of action, alleging that an extension of time had been granted, but on the trial offered no evidence to support his allegation, and the exception was overruled. Thereupon, on the same day, plaintiff filed a supplemental petition making the following allegations, upon the basis of which it obtained a writ of attachment, to wit (quoting only those which are material to the issues here involved):

“That defendant is manufacturing sugar and molasses, * * * and that, as so, and when, manufactured, * * * ships, and is regularly shipping, the sugar and molasses'to * * * Leon Cahn & Co., of New Orleans, La.; * * * that the said firm of Leon Cahn & Co. is also a creditor of the said A. A. Bonvillain in a sum the exact amount of which petitioner does not know; that the said shipments of sugar and molasses are being made * * * to give, and * * * do, in fact, give, to the said Leon Cahn & Co., an unfair preference over other creditors of defendant, including petitioner. Petitioner shows that its remedy herein is by attachment, and * * ,? that, unless such attachment issues, * * * the said A. A. Bonvillain will continue to ship the aforesaid sugar and molasses to the said Leon Cahn & Co., so as to prefer the said Leon Cahn & Co., and in fact prefer the said Leon Cahn & Co., over defendant’s other creditors, including petitioner, and petitioner fears and believes and avers that by such shipments it will be left without means of recovering from said A. A. Bonvillain the aforesaid indebtedness, due by him to petitioner.”

The writ of attachment was issued as prayed for, and the sheriff seized a quantity of sugar, part of it in defendant’s sugar house and part loaded on cars for shipment; and thereafter Leon Cahn & Co. (upon .whom plaintiff had prayed, that its petitions be served) appeared in the case by motions, and alleged that they had a privilege and right of pledge on the sugar under recorded acts of pawn and pledge, and, moreover, were subrogated to the actions and privileges of the vendors of cane, and that, under their contract with Bonvillain, they had the right to have all sugar manufactured by him shipped to them, and they reserved their right to intervene, and in the meantime desired that the sugar should be released to them on forthcoming bonds, and it was so released.

Defendant then moved to dissolve the attachment on the following grounds:

That plaintiff has obtained a writ of attachment on the allegation “that mover is’shipping his sugar to Leon Cahn & Co., * * * a creditor of A. A. Bonvillain, and is thereby giving said Leon Cahn & Co., an .unfair preference over other creditors of mover, including plaintiff herein, and that the allegation is false; that the writ should be dissolved, for the following reasons, to wit: That mover is shipping his sugar to Leon Cahn & Co., under agreements which are duly recorded in the records for the parish of St. Mary, * * * and which is therefore notice to plaintiff herein; that, under said agreements, mover is compelled legally to ship his sugar to Leon Cahn & Co., and that he could be compelled by injunction by Leon Cahn & Co. to ship said sugar to it; that said agreements are dated December 13, 1912; * * * that, in addition thereto, the said sugar is pawned and pledged to Leon Cahn & Co. under an agreement duly recorded; that the sugar in the S. P. car, when seized, had already been consigned to Leon Cahn & Co.; that, in addition thereto, the said Leon Cahn & Co., has paid for all cane purchased by A. A. Bonvillain from outside parties, and has been subrogated to the actions and privileges of the vendors of the cane, both by _ conventional and legal subrogation ; that plaintiff herein had actual notice of the agreement between A. A. Bonvillain !,: * * and Leon Cahn & Co. and of the fact that Leon Cahn & Co. had a privilege, pawn, and pledge on said sugar, and was entitled, under its contract, to have said sugar shipped to it, and that therefore the affidavit upon which the writ of attachment herein issued was made in bad faith; that for the past two months mover herein has been negotiating with all of his creditors, including Swift & Co., with a view of paying a certain percentage on his claims and to have the balance extended for one and two years, and that this was conditioned upon all of his creditors accepting the proposition; that this settlement contemplated the shipment of all sugar to Leon Cahn & Co.; that under the agreement such shipment was necessary, and that the proposed cash payment would only be made after sugar was shipped and Leon Cahn & Co. settled with; that the plaintiff herein was cognizant of all this, and knew, when it made this affidavit, that no effort was being made to dispose of the sugar out of due course, or for the purpose of defrauding any one, but to carry out a proposition which it had accepted.”

Some days later defendant filed an exception to the' effect that the supplemental petition disclosed no right or cause of action for the issuance of an attachment, which ex[564]*564ception was overruled, but which, by answer to the appeal, defendant now urges.

On the trial of the motion to dissolve there were filed in evidence several contracts between defendant and Cahn & Co., and considerable oral testimony was admitted, and other such testimony excluded. The contracts are as follows:

January 11, 1911, defendant gave his notes for $100,000, and Cahn & Co. agreed to advance that amount, including balance then due, for the making and manufacturing of the crop of 1911-12, the growing crop being pledged to them and defendant agreeing to ship the products to them .when ready for market.

January 10, 1912, defendant gave his notes for $60,000, secured by mortgage and confession of judgment, in reimbursement of moneys loaned and advanced, with the agreement that no portion of the (proceeds of) crops and produce shipped by the mortgagor should be imputed to the payment of said notes.

March 27, 1912, Cahn & Co. agreed to advance $60,000 for the making and manufacturing of the crop of .1912-13, and defendant gave his two notes of $26,000 each, secured by mortgage importing confession of judgment, and by pledge and pawn of said crop, as authorized by Act 66 of 1874, and it was further agreed (quoting the language of the contract):

“That said Leon Cahn & Co. shall have the exclusive right to apply the net proceeds .of sales of all products shipped and all payments of money made to them by said party of the first part to the payment of any indebtedness which may now be due or which may hereafter become due to them by said party, * * * whether on open account or otherwise, according to said Leon Cahn & Co.’s view of the exigency of the case; that such application may be made at such time and in such manner as said Leon Cahn & Co. may elect; that no application of such proceeds of sale or of money to the payment of any debt due on open account or otherwise which may at any time be due to said Leon Cahn & Co. by said party of the first part shall impair, lessen, or prejudice the indebtedness secured by these presents; and that said Leon Cahn & Co.

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Cite This Page — Counsel Stack

Bluebook (online)
71 So. 849, 139 La. 558, 1916 La. LEXIS 1591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/swift-v-bonvillain-la-1916.