Wheelwright v. St. Louis, New Orleans & Ocean Canal & Transportation Co.

47 La. Ann. 533
CourtSupreme Court of Louisiana
DecidedJuly 1, 1895
DocketNo. 11,591
StatusPublished
Cited by3 cases

This text of 47 La. Ann. 533 (Wheelwright v. St. Louis, New Orleans & Ocean Canal & Transportation Co.) 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
Wheelwright v. St. Louis, New Orleans & Ocean Canal & Transportation Co., 47 La. Ann. 533 (La. 1895).

Opinion

The opinion of the court was delivered by

Nicholls, C. J.

In the pleadings the “Police Jury of St. Bernard” is made to appear as the party claiming remuneration for the cost of construction of the dam, whilst in the evidence and in the judgment of the District Court the claim is dealt with as one due to the sheriff. It seems to be conceded by all parties here that this variance was the result of a mistake, and that the claim for the levee work (attacked by the plaintiff and defended in the suit) was, in reality, a claim advanced by the sheriff, and not by the police jury. Apparently consent is given that it should be passed on by us as such.

[536]*536The first question which meets us is the correctness or incorrectness of the judgment of the District Court, recognizing that the amount of the indebtedness due by the defendant company to Guichard is secured by lien and privilege, and that by virtue thereof his claim primes the mortgage claim of the plaintiff. The latter admits the existence of the indebtedness to the amount declared on, biit denies the existence, quoad himself, of a privilege as supporting it. He contends that even if from the nature of Guichard’s claim the law created a privilege securing their payment, the same law made this privilege in its effect, as such, upon pre-existing mortgages dependent upon the registry of the claims, in the manner and at a time and place which has not been complied with. In support of this position, counsel refer us to Art. 3274 of the Civil Code, as amended by Act No. 45 of the regular session of 1877, which article as amended provides that “no privilege shall have effect as against third persons, unless recorded in the manner required by law, in the parish where the property to be affected is situated. It shall confer no preference on the creditor who holds it over creditors who have acquired a mortgage, unless the act, or other evidence of the debt, is recorded within seven days from the date of the act or obligation of indebtedness, when the registry is to be made in the parish where the act was passed, or the indebtedness originated, and within fifteen days if the registry, is required to be made in any other parish of this State. It shall, however, have effect against all parties from date of registry.”

The registered act upon which Guichard relies was recorded on the 24th of December, 1891, long after the registry of plaintiff’s mortgage, and is as follows: “ Robert P. Guichard, being duly sworn, does depose and say that the St. Louis, New Orleans and Ocean Canal and Transportation Company is justly and truly indebted to affiant in the full sum of twenty-three hundred and thirty-six dollars and twenty-one cents, exclusive of interest and costs, as the whole does more fully appear, together with all necessary particulars, from affiant’s petition with the exhibits thereto annexed, which are about to be filed in the Twenty-fourth Judicial District Court of the State of Louisiana, for the parish of St. Bernard, and that for the payment of said claim, with interest and costs, affiant claims a lien and privilege on the property of the said company, real and per[537]*537sonal, which is situated in said parish, and especially its canal property, as described in the records of the parish.”

Turning to the record of the case of Guichard against the defendant company, which has been copied into the transcript, we find, independently of any question whether the claims declared on in that case were really secured by privilege or not, that “the dates of the acts or obligation of indebtedness” preceded by over seven or fifteen days the date of the registry of Guichard’s affidavit of indebtedness. The District Judge was of opinion that that fact made no difference, for two reasons: First, for the reason that Guichard’s right to a privilege had been recognized by a judgment of court, and secondly, because the law-maker had declared in the article cited that although a privilege had been tardily registered, yet it should have effect against all parties from the date of its registry, and inasmuch as a privilege in its nature and outside of the question of the date of its creation outranks a mortgage, it necessarily follows that mortgage rights are subordinated to privileged lights regardless of the dates of their respective registry.

Whether or not in reaching his conclusion on the first point the District Judge adopted the view of the defendant that this litigation was a collateral attack upon Guichard’s judgment, and that the issue attempted to be raised here could only be raised in a direct action of nullity, or whether he was of the opinion that the judgment obtained by him was conclusive of the question of privilege, as res judicata, he was equally wrong. Plaintiff was not a party to the judgment which declared the existence of the privilege. The privilege, if it existed, sprung neither from the convention of the parties, nor was it created by the judgment — -it was the creation of the law. Its existence is outside of the judgment and is to be determined as to third parties independently of it. This suit is not a collateral attack upon plaintiff’s judgment — the attack is direct upon his right to a privilege and upon his rank as a creditor.

The second position of the District Judge is reached by a construction of the law, which makes the law-maker in the latter part of an article completely undo what he had otherwise provided for in its beginning. It is expressly declared in Art. 3274 that “ no privilege shall confer a preference on the creditor who holds it over creditors who have acquired a mortgage,” unless the act or other evidence of the debt is recorded within a certain time.

[538]*538If this be the law, courts are bound to give it effect by placing on other portions of the article a construction which admits of this being done. The article in question presents no difficulty whatever.

Article 3186 of the Civil Code, which declares that a privilege is a right which entitles the creditor holding it to be preferred over other creditors, even those who have mortgages, merely states the nature and effect generally of privileges, while Art. 3274 of the Code restrains and modifies this general effect in the special case provided for by it, when a privilege tardily recorded would come in competition with a pre-existing registered mortgage. For such a case, it is provided that the tardily recorded privilege, though none the less a privilege because not promptly recorded, shall fall behind and be subordinated to a prior mortgage — in other words, practically and substantially that quoad prior existing mortgages it should lose its peculiar character of a privilege, and be ranked and classed as to it as a junior mortgage.

Such was, in express terms of the law, the effect of a tardily registered privilege under the articles of the Civil Code of 1825, as they stood originally.

Article 3240, as it stood originally, declared that “ the privileges enumerated in the two preceding articles are valid against third persons, from the date of the act, if it has been duly recorded; that is to say, within six days of the date, if the act has been passed in the place where the registry of mortgages is kept, or added one day more for every two leagues from the place where the act was passed to that where the register’s office is kept.”

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Cite This Page — Counsel Stack

Bluebook (online)
47 La. Ann. 533, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wheelwright-v-st-louis-new-orleans-ocean-canal-transportation-co-la-1895.