Thompson v. Mylne

6 La. Ann. 80
CourtSupreme Court of Louisiana
DecidedFebruary 15, 1851
StatusPublished
Cited by3 cases

This text of 6 La. Ann. 80 (Thompson v. Mylne) 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
Thompson v. Mylne, 6 La. Ann. 80 (La. 1851).

Opinion

The judgment of the court was pronounced by

Preston, J.

On the IGth of March, 1828', Messrs. Dennistoun Sf Co. and . G. B. Milligan, entered info the following agreement: “Agreement betwixt Messrs. Dennistoun Sf Co. on the one part, and (i. B. Milligan on the other part: 1. Dennistoun Co. agree to sell to Cl. B. Milligan one-third of a sugar plantation they own, situated near the English Turn, on the other side of the river, with all the slaves, buildings, utensils, &c., thereon, or appertaining thereto, for fifty-two thousand dollars, payable in one, two, three, four, five, six and seven years, in equal installments, without any interest until the end of the contract; and on whatever sum may be then unpaid, G. B. Milligan to pay six per cent interest per annum, with special mortgage of the properly until the whole is paid. 2. It is understood that ton slaves and six manumitted negroes, owned by G. B. Milligan, are to remain on the estate to assist in its cultivation, and bo fed and clothed as the other negroes on the plantation, at the general expense. 3. It is understood that G. B. Milligan will resido upon the plantation, and devote his attention wholly and, exclusively to its cultivation and improvement; that he shall receive from the concern an annual salary of one thousand dollars, and have the privilege of what the plantation may yield, for his own use; but his expenses, otherwise, tobe borne by himself. 4. The supplies, requisite for the plantation to be furnished by Dennistoun Sf Co., and a commission thereon of two and a half percent, as well as on all sums they may lay out. to be charged ; the crop of sugar to be sold by them, chaining a commission of two and a half per cent, as well as on the proceeds of any wood, stock or other produce that may be sold; an annual statement to be made out, and the proceeds of the sales, after deducting the current expenses, to be considered the annual product of the plantation, one-third of which to be placed to the credit, of G. B. Milligan and the remaining two-thirds to the credit of Dennistoun Sf Co. 5. That this contractshall exist for seven years, and at the end of which period, if agreeable to all parties, be renewed; but if a dissolution should take place, the value of the property to be fixed for settlement by mutual appraisement, or by public sale. 6. In case the proposed sugar house and other buildings are erected, and additional negroes purchased, G. B. Milligan to pay one-third of whatever sums may be laid out, bearing interest at six per cent per annum, from the date of the money being advanced by Dennistoun Sf Co. until his share is paid. 7. This agreement will be regularly completed by [81]*81a notary public as soon as possible. Signed in duplicate. New Orleans, this sixteenth day of March, 1828. (Signed,) Dennistoun & Co. G. B. Milligan.”

The partnership thus formed was carried on to the entire satisfaction of all parties until the death of G. B. Milligan, in March, 1841. He was so well satisfied with the arrangement and conduct of the partnership, that he appointed M. M. Thompson, a partner in the firm of Dennistoun Sf Co., his testamentary executor. The accounts of the partnership were kept by the firm of Dennistoun &; Co., who, by the terms of the contract were to be the factors of the plantation, furnishing its supplies and disposing of its crops. They made up and rendered annua] accounts of the partnership, and credited Milligan with one-third of the net proceeds of the crops, which with his annual salary, after deducting his private account, was appropriated to the payment of his interest in the plantation and slaves. They continued to keep and render similar accounts to Thompson, the executor of Milligan, until 1844. He had made an inventory of the estate of Milligan in the parish of Plaquemines, where the plantation was situated, and in March, 1844, rendered an account of his administration. The widow and heirs of David Urquhart, who was a large creditor of Milligan, opposed the account. This induced the executor to bring a suit in New Orleans for a partition of the plantation and slaves, and settlement of the partnership. The widow and heirs of David Urquhart intervened. George B. Milligan has also been appointed dative executor of his father, George B. Milligan, and has become a party to the suit. And after much litigation in the Fifth District Court, in the late Supreme Court, also in this court, the case has been submitted to us almost exclusively on questions of law.

It is ascertained that when Milligan died, on the 16th of March, 1841, he was indebted to the firm of Dennistoun &)• Co. in the sum of $31,834 65, growing out of their transactions with regard to the plantation and slaves. At the same time, he owed the late David Urquhart $93,419 30. The plantation and slaves have'been sold to effect a partition of the same, and settlement of the partnership. And since the death of Milligan there has been realized from the third of the crops belonging to his succession, and from the sale of his third interest in the plantation and slaves, and also from the hire of some slaves belonging separately to his succession, a sum of near sixty thousand dollars.

The firm of Dennistoun Sf Co. insist, that this money should be applied to the extinguishment of the indebtedness of the succession to them. The heirs of David Urquhart contend, that it should be appropriated proportionably to the payment of the indebtedness to them and to Dennistoun $¡• Co. And the dative executor, George B. Milligan, claims that it should be handed over to him to make the distribution, there being no other creditors of the testator.

The decision of the controversy depends upon the application of our laws to the agreement between Dennistoun Sf Co. and George B. Milligan in 1828, and the effect of that agreement under those laws.

It is contended by the dative executor and the heirs of Urquhart, that Dennistoun Co., by the agreement, sold to G. B. Milligan the third of the plantation and slaves on terms, that for the payment of the price they are. his creditors, but have no special mortgage, because none was given or recorded; and have no legal privileges over Urquhart's heirs on the proceeds of the crops, and plantation and slaves, because the code gives them none. They contend further, that Dennistoun Sf Co. are not creditors of the partnership, and are not, therefore, entitled, under article 2794 of the Civil Code, to be paid out of the [82]*82partnership funds in preference to the creditors of the individual partner. In these positions they are correct, and the surviving partners must support their claim without reference to the articles of our code, giving special mortgages or privileges and a preference to the creditors of the partnership over the creditors of an individual partner upon the partnership funds. Those articles do not apply directly to the case before us, although the equitable principles upon which they are founded indicate that the same equity should govern the present case, which is so similar to those to which they apply.

To decide this controversy justly, it is necessary to examine carefully the contract of the parties, to ascertain their objects, and to give effect to their whole intentions, if not prohibited by our laws.

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Cite This Page — Counsel Stack

Bluebook (online)
6 La. Ann. 80, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompson-v-mylne-la-1851.