Tennent v. Caffery

129 So. 128, 170 La. 680, 1930 La. LEXIS 1807
CourtSupreme Court of Louisiana
DecidedMay 5, 1930
DocketNo. 29931.
StatusPublished
Cited by17 cases

This text of 129 So. 128 (Tennent v. Caffery) 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
Tennent v. Caffery, 129 So. 128, 170 La. 680, 1930 La. LEXIS 1807 (La. 1930).

Opinion

THOMPSON, J.

This is a suit via ordinaria on a note for $40,000, with interest and attorney fees. The note was signed by Caffery to his own order and indorsed in blank.

It was dated February 10, 1925, and due one year after date. The suit is only in rem as to Caffery by reason of a stipulation in the mortgage that no personal liability should attach to the maker of the note.

A personal judgment is sought against the defendants William T. Nolan and the Westwego Canal & Terminal Company, successive purchasérs of the mortgaged property because of the' ássumption of the debt in their respective acts of purchase.

A number of technical defenses were urged on the part of all three of the defendants, by way of exceptions involving want of jurisdiction ratione persone, prematurity of action, vagueness, misjoinder and nonjoinder of parties, and no cause of action. All of these were overruled, ¿nd the defendants then answered in a common defense that the consideration for which the note was given had failed because Barrow, who sold the property to Caffery, was not the owner of a part-of the property described in the deed.

The' defendant Nolan and the canal company denied- any personal liability for the debt, and alleged that in purchasing the property-they assumed the -debt only to the extent for which Caffery and their vendors were bound.

There was judgment for the plaintiff as prayed for, and Nolan and canal company have appealed.

The payment of the note sued on, although a plain promissory note secured by mortgage on the property for which it was executed, and carrying no personal liability against the maker, has been successfully resisted by various judicial proceedings for more than four years, and the litigation in its final analysis comes to us with ¿ record of three volumes covering six hundred and sixty typewritten pages and two hundred and eighty pages of printed briefs.

In our statement of the facts, we shall be as brief as possible consistent with a proper presentation of the multifarious questions involved and a correct solution thereof.

We may say at the outset that all of the defendants are residents of the parish of Orleans and the mortgaged property is located in the parish of Jefferson.

On February 10, 1925, Robert Ruffin Barrow sold to. Donelson Caffery a certain canal known as the Barataría and Lafourche Canal for the sum of $75,000, $35,000 of which was paid in cash and the remainder represented by the note sued on. In making the purchase, Caffery was acting as trustee for F. Rivers Richardson, Lester F. Alexander, and Frank P. Higgins. The three last named parties had agreed among themselves to form a corporation and to take over the property on which an option to purchase had been acquired.

Not having completed the corporation, it was agreed that the deed should be made to Caffery as their trustee. The co-owners for some cause disagreed as to the formation of the corporation, and Richardson instituted k partition suit against the other two co-owners.

*686 Barrow intervened in this proceeding to protect his interest as owner of the mortgage note. The partition proceeding finally resulted in a consent judgment between the co-owners and Barrow, the mortgage creditor, under which the property was to be offered for sale with an upset price of $72,000. It was stipulated in the judgment that the balance due Barrow on his vendor’s note was to be paid out of the purchase price at partition sale, with the proviso that the purchaser should have the right or the privilege of assuming the payment of the note and to retain in his hands from the purchase price the amount of the note, principal, interest and costs.

The judgment designated C. A. Tessier as auctioneer to advertise and sell the property. In the advertisement the terms were stated as follows: Terms cash, or purchaser to have the right to assume a mortgage note for $40,-OOO, with interest and charges and to pay the balance in cash.

At the auction sale W. T. Nolan became the adjudicatee of the property at' the price of $90,000. The auctioneer drew up and signed a proe&s verbal in which he recited the same terms as stated in the • partition judgment and in his advertisement, and which was accepted by Nolan, the purchaser, and was duly recorded in the parish of Jefferson where the property was located.

There was a stipulation in the judgment ordering the sale that the purchase should be consummated within thirty days after the adjudication.

Before the expiration of this period, Nolan, alleging a defect in the title for want of a certain and definite description, asked for an injunction, and secured a temporary restraining order against Richardson, Alexander, Higgins, Caffery, and Barrow, enjoining them from enforcing the thirty-day clause.

After a hearing ón a rule to dissolve the restraining order and on an exception of no cause of action, the proceeding by Nolan was dismissed.

Thereafter an agreement was entered into between Alexander, Higgins, and Nolan, to the effect that Nolan would take title to the property and release Alexander and Richardson from any further liability, and would proceed against Barrow in an action of quariti minoris. Such a suit was to be instituted against Barrow within six months.' As a guarantee that whatever judgment that was rendered against Barrow would be satisfied, Nolan deposited in a bank $6,500 to be turned over to Alexander and Higgins if Nolan did not file the suit against Barrow within the time stipulated. Barrow was not a party to this agreement, and it was made without his knowledge.

The contemplated suit was never filed, but Nolan took a deed to the property under the adjudication. The deed recited that at the public sale the property was adjudicated to • Nolan as the last and highest bidder for the price of $90,000, payable on the terms and conditions set forth in the advertisement, cash, but the purchaser to hhve the right to assume a mortgage note in rem for $40,000 dated February 10', 1925.

It will be observed that this recital did not follow the judgment of court ordering the sale nor the advertisement and adjudication and the procés verbal of the adjudication.

The notary who passed the act of sale noted at the bottom of the instrument that the words “in rem” were interlined and approved before signing.

It was further stated in the déed to Nolan that the vendor does not warrant the location, description, or measurements of the property conveyed, and only sells such property as was *688 transferred to him. It was further stated that the purchaser, Nolan, assumed the mortgage of Barrow to the same extent that his vendor is obligated, and no further.

Thereafter Nolan, Richardson, and Ulisse Marinoni formed a corporation known as the Westwego Canal & Terminal Company, and on July 9, 1925, Nolan executed a deed to that company of the property involved for a recited consideration, of $200,000, paid in the capital stock of said company.

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Bluebook (online)
129 So. 128, 170 La. 680, 1930 La. LEXIS 1807, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tennent-v-caffery-la-1930.