Liquidation of Prudential Savings & Homestead Society v. Gondolf
Liquidation of Prudential Savings & Homestead Society v. Gondolf
Opinion of the Court
Plaintiff alleges that Flynn conspired with defendant to defraud said association and delivered the oheck over to defendant, and fraudulently endorsed, said check without signing the mortgage note for the said sum of §600.00, to be secured by vendor's lien and mortgage upon property tendered oy him, the said society, and viithout otherwise perfecting said loan and said check for said loan was in due course presented for payment through the bank upon which it vías drawn, and vías paid, and that defendant having received the proceeds of the loan without warrant or right, and without having executed the mortgage to secure said plaintiff, must refuad to said society the amount in cuestión.
Pefendant excepted to the petition on the ground that same discloses no cause of action, and pleading further, the prescription of one, three and five years to any
The case having been heard by his Honor the Judge of Division "E", the late Hon. George E. Tneard, the exception of prescription «ras maintained and suit dismissed.
In due course an a^eal was taken and this Court remanded the case, holding substantially that the action was one not only in damages but also quasi ex contractu. Sub^ s equontly answered was filed, which a chits that the application for the loan was made by defendant at the time stated, and for the amount claimed; admits further that the check was delivered to the notary of'the said association, Thomas B. Flynn, by plaintiff, but denies that he, jsix±ji±i££xdefendant, in any manner conspired with said notary to defraud plaintiff; denying that he fraudulently endorsed said check or was in any wise responsible for the failure to complete the transaction in question or that the check was presented to the bank upon which it was drawn, or collected by him; denies that he received any part of the proceeds of said loan, but on the contrary avers that on the lóth of October, 1S11, he agreed to purchase from, one J'. A. Hardin property on Philip Street in this City for the sum of $735.00; that he made this agreement through one S. J. Clesi, a real estate dealer in this City, and deposited 10 per cent of the pir chase price to bind said sale, and subsequently applied to plaintiff for the loan in question; at their request and instance he went to Flynn, the notary's office, to complete this transaction; he further avers that notary Flynn in such capacity was the notary of said association and handed him, the defendant, various documents and papers to be signed which he, Flynn, stated were necessary; that
On the trial of the case plaintiff offered the oheok sued upon, together with the endorsement of defendant, in evidence. The oheok endorsed read, "Vio. J. Gondolf - Deposit, Thomas D. Flynn, Attorney, through Hew Orlean» Clearly House Uaroh 4, ISIS, Bank of Orleans, Heoelving Teller".
Defendant then in his own behalf was the only witness who testified in this cause and he stated that he had purchased this property through Clesi, agent, for $735.00} that he deposited.1C per cent with said agent and made application to plaintiff for a loan of $600.00 aooording to the usual manner that homestead associations tranaaot their business, and on page 3 of his testimony, further explaining the transaction, said: "The homestead passed on the loan, .said it would go through all right and they
"Q- Is this the check Flynn handed you to sign? A- Yes sir.
"Q- Is this your endorsement? A- Yes sir.
v-hat else v'/as on the back of the check?
"A- Thomas Flynn, Attorney. Deposit Thomas Flynn. He handed me two or three papers to sign in his office and I signed them. He then told ms to ¿0 and attend to my business.
"<i- Did you ever get tne proceeds of this check? A- Ho 3±r."
He goes on to testify and states: "Flynn was to have paid Hardin for the property, then transfer it to the association", and this is about the substance of the testimony contained in this record, and the question presents itself from all the foregoing facts, who has to bear the loss?
The answer to the appeal filed in this case praying for an amendment of the judgment in favor of the defendant for ÍÍ70.00, on his reoonventional demand, which amount vías paid by defendant to his agent and deposited with notary Flynn, cannot be allowed. 7e do not think this claim just or that plaintiff should suffer thia loss. This loss must be borne by defendant, and in our opinion plaintiff is in no wi3e responsible therefor.
The law applloable to this case and the decisions covering it are to be found in 45 La. p. 937, Detriham vs. Lumber Company; "VThatever an agent does within the scope of his authority, is m legal effeot the aot of his prlnoipal, who is entitled to its advantages and is also subject to its liabilities; his duty was to attend to plaintiff's interests under the oontraot." And Story on Agency,- 9th Ed. 505, Sec. 404; "But the responsibility of the prlnoipal tc third
Judgment affirmed.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.