Whitney-Central Nat. Bank v. Sinnott

66 So. 551, 136 La. 95
CourtSupreme Court of Louisiana
DecidedNovember 4, 1914
DocketNo. 20,766
StatusPublished
Cited by25 cases

This text of 66 So. 551 (Whitney-Central Nat. Bank v. Sinnott) 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
Whitney-Central Nat. Bank v. Sinnott, 66 So. 551, 136 La. 95 (La. 1914).

Opinion

Statement of the Case.

O’NIELL, J.

The plaintiffs, Whitney-Central National Bank, Hibernia Bank & Trust Company, Metropolitan Bank, and German-American National Bank, have appealed from a judgment rendered against them un a rule, dissolving their writs of injunction and condemning them to pay attorneys’ fees as damages for their illegal resort to the writs. The defendants, James B. Sinnott and his sons and daughters, have answered the appeal, praying for an increase of the judgment for damages for their attorneys’ fees.

The principal demand is for a judgment against James B. Sinnott, for $215,155.86 with interest and attorneys’ fees in favor of the Whitney-Central National Bank, for $26,000 with interest and attorneys’ fees in favor- of the Hibernia Bank & Trust Company, for $35,000 with interest and attorneys’ fees in favor of the Metropolitan Bank, and for $50,000 with interest and attorneys’ fees in favor of the German-American National Bank. The action is based upon the alleged obligations of a corporation styled Smith Bros. Company, Limited, which are evidenced mainly by numerous promissory notes made by the corporation and indorsed by J. B. [97]*97Sinnott and evidenced partly by drafts and overdrafts of tbe corporation, all of which indebtedness is alleged to be secured by a continuing guaranty on the part of J. B Sinnott. With these demands against James B. Sinnott, an action is brought against him and his sons and daughters and against Charles J. Theard (referred to as a stakeholder), demanding that a certain transfer of property by J. B. Sinnott to his sons and daughters be decreed a mere simulation, and in the alternative, that, if it be not simulated, it be declared fraudulent and be annulled.

In support of their action en declaration de simulation and of their alternative revocatory action, the plaintiffs allege that Smith Bros. Company, Limited, carried on a wholesale grocery business in New Orleans for a number of years; that James B. Sinnott was president of the corporation and was reputed to own a majority of its stock; that, according to the terms of its charter, no business could be transacted by the board of directors without the presence of Mr. Sinnott or Ms capital stock; that he was reputed to be worth' $1,000,000 or more, and had secured the company’s indebtedness by his personal indorsement and guaranty for years past and during the existence of the community of acquets and gains between him and his wife, who died on the 14th of May, 1912, at which time the community owed a contingent liability on account, of these indorsements of $500,000 or $750,000, or perhaps more; that, if the community had been then liquidated and Smith Bros. Company, Limited, forced to pay the debts then due, the community would have been forced to pay perhaps the full amount for which it was endorser or guarantor, but that there was no liquidation of the community at that time; that plaintiffs did not force Smith Bros. Company, Limited, to settle the indebtedness then due, but that they and other banks continued to carry the indebtedness of the corporation with the indorsement or continuing guaranty of J. B. Sinnott.

The petition alleges that it. has developed recently that Smith Bros. Company, Limited, is hopelessly insolvent, and an application has been made to the federal court to have the company adjudged a bankrupt; that, from all indications, only a small, proportion of the company’s debts will be paid from a distribution of its assets; and that J. B. Sinnott has not now in his possession sufficient property or effects to pay his indebtedness to the plaintiffs.

It is alleged that Mrs. Sinnott bequeathed the use of her entire estate to her husband, J. B. Sinnott, and the ownership to her six children, namely, Mrs. Mollie S. Holland, Miss Emma Sinnott, Charles J. Sinnott, Mrs. Ella Sinnott Vallon, wife of Raoul Yallon, James B. Sinnott,' Jr., and Henry Lee Sinnott; that the will was admitted to probate, and James B. Sinnott, being named as the testamentary executor qualified in that capacity; that an inheritance tax due upon the property was paid; that all of the heirs, being of age, joined in a petition with their father and had Mm discharged from the executorship and relieved of all liability as executor, and they then accepted the succession, alleging that all of the property of which their mother died possessed was community property; that J. B. Sinnott was thus sent into possession of all the property, as the owner of one half and usufructuary of the other half under the will; that he thus held and administered the property, treated it as his own with the knowledge, consent, and acquiescence of his children; and that, upon the faith of his possession and reputed ownership, he secured credit from these plaintiffs.

It is alleged that, within the year preceding the filing of this suit, and since his indébtedness to the plaintiffs accrued, J. B. Sinnott has, to the great prejudice and in[99]*99jury of petitioners, disposed of certain of the property which he had received under the will of his wife to his children above named; that the plaintiffs have not yet ascertained the exact amount of property transferred nor exactly what it consists of, but that it consists of stocks, bonds, and other choses in action; and that petitioners have been informed, and aver, that J. B. Sinnott is attempting to transfer this property under the pretense that he desires to restore to his children the amount of the property. It is alleged that at least one-half of the property belongs to J. B. Sinnott, and, if the entire property is not subject to his debts, his usufruct of the portion owned by his children is an asset of J. B. Sinnott, and, like the property of which he has the full ownership, is the comnlon pledge of his creditors, and the disposition or attempted disposition of it is of great and irreparable injury to the' plaintiffs. The petition recites that the plaintiffs believe and aver that, unless J. B. Sinnott is restrained from further disposing of property to his children, and unless they are enjoined from receiving from him and from disposing of the property which they have already received, it will be placed entirely beyond the reach of the creditors of J. B. Sinnott pending this action.

It is alleged that the plaintiffs have been informed and believe that, at the time of the death of J. B. Sinnott’s wife, he or the community existing between them owned a large quantity of real estate, and stocks, and perhaps bonds, of the following named companies: Ponchatalaway Land & Improvement Company, French Opera, Hull Copper Mine, Petrolithic Good Roads & Development Company, American Land Company, Banc Atlantida, Pan-American Life Insurance Company, New Orleans Land Company, Golden Ranch Land & Drainage Company, Alluvial Land Company, Realty Realization Company, Colusa Leonard Extension Copper Company, New Orleans Board of Trade, Wireless Liquidating Company, American Railway Mail Device, Whitney-Central National Bank, and the Hibernia Insurance Company — and stocks and bonds perhaps in other companies which have not come to the knowledge of the plaintiffs.

The petition recites that Charles J. Theard, an attorney at law, representing one or more of the children of J. B. Sinnott, defendants herein, is holding certain stocks, bonds, money, or choses in action, as the property of certain ’ of the parties named, in trust and under certain transactions by which the property was transferred, and that he should be made a party defendant and be required to retain the property as a stakeholder or turn it over to the court and be relieved from this suit. .

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Cite This Page — Counsel Stack

Bluebook (online)
66 So. 551, 136 La. 95, Counsel Stack Legal Research, https://law.counselstack.com/opinion/whitney-central-nat-bank-v-sinnott-la-1914.