Alexander v. Jacob
Alexander v. Jacob
Opinion of the Court
delivered the opinion of the court. The plaintiff and appellant built a house for Henry Jacob, one of the defendants. Jacob, not being able to pay him agreed to let him collect the rents of the house until the ex-tinguishment of the debt. The appellant did actually obtain part of his payment in that manner; and, being about absenting himself, left the house under the care of an agent authorized
The defence of appellees rests upon several grounds; the first of which in order is that the appellant is not entitled to have and maintain his action against them. The objection which they raise, under that part of their answer, is that, before the plaintiff could sue them, he ought to have obtained judgment against his debtor, Jacob, as required in such cases by our statute. Civ. Code, 460, art. 43. The article relied on does not seem, however, to support the defendant in that objection. It goes no further than providing that the creditor, whose pledge is in the hands of a third posses sor, shall not cause it to be sold, without hav- ing previously obtained judgment against his East'n
But, under that part of the answer of the ap-pellees, another objection arises, which this court must take notice of, and which goes to defeat this action. The appellees are not third-possessors, who have bought from a debtor pro. perty incumbered with a mortgage or privilege. They are purchasers of property sold under execution, at the suit of a creditor of the mortgagor. The creditor, whose pledge is seized and offered for sale at the suit of another creditor, would not, if present, have a right to oppose that sale, and to preserve his pledge in kind, until he should please to have it sold himself. His right is that of being paid out of the proceeds of sale, in preference to the seizing creditor, if his claim is of a higher order or anterior date. Curia Philipica, tercero opositor, n. 9. As a consequence of that principle, if the privileged creditor was absent, and had no knowledge of the sale, his first course is
This view of the case precludes the necessity of examining the other points at issue between the parties.
It is, therefore, ordered, adjudged and decreed, that the judgment of the district court be affirmed, with costs.
Workman, on a motion for a re-hearing. The appellees, says the court, are, not third possessors who have bought from a debtor encumbered property-they are purchasers of property sold under execution at the suit of a creditor of the mortgager.
These persons appear to me to be third pos sessors, in the strictest sense of the law. What meaning can the expression third possessors have, if not that of possessors distinct from
The passage cited from the Curia Philipica does not tend to destroy or diminish my client's right. The article referred to says-" Si el accreedor posterior executante se opone, pidi-endo solo se le entreguen como tal los bienes executados per derecho de prenda de su deuda, esta oposicion no impide la execucion. Y asi sin embargo de ella, se ha de continuar, y vender los bienes, y de su valor y precio pagar al anterior, y de lo que restare, al posterior que executô." All this is very satisfactory. It is not pretended, that the privilege or mortgage creditor can prevent the sale by a subseqent creditor, and preserve his pledge in kind, until he should please to have it sold himself. Such sales may always take place, subject to the an- tecedent incumbrance; and such sales will clear off the incumbrances, provided payment be be
If the anterior creditors were present, and in the habit of perusing the advertisements in all the daily newspapers, they might, indeed, defeat this goodly project, by interposing their claims. But who thinks, or who ever thought it necessary to be thus perpetually on the look out to preserve a privilege or a mortgage? Does not every mortgage creditor deem it sufficient
If the creditor on the spot would have some chance of security, the absent creditor would have none at all.
Publish this doctrine tomorrow, and in less than a twelvemonth, I am persuaded, we shall find the rights of mortgage creditors, and the credit of the state itself, materially injured by it.
The texts, on which the commentary above mentioned of the Curia Philipica is founded, put the question out of all doubt. The 5th part. title 13, law the 38th declares that the right of pledge is extinguished by paying the creditor, or depositing the sum due for him, in case he refuses the payment.
All these provisions arise out of the follow-in~ decision of the Roman civil law. Quod si res sit pignorata, que pignori capta est, viden-dum est n sic distrahi possit, ut dimisso credi-tore, superfluum in causam judicati converta-tur. Et quanquam non cogatur creditor rem, quem pignori accepit, distrahere, tamen injudi- cati executionem servatur, ut si emptorem in- venerit res que capta est, qui dimisso priore creditore, superfluum solvere sit paratus, ad- mittenda sit hujus quoque rei distractio.
And let it be particularly remarked, if the court please, that all the authoritiea referred to, contemplate a pledge, not a mortgage,-pignus, not hypotheca, a thing in the actual possession of the creditor, not a thing possessed by others, in which he has only an invisible, incorporeal right. To sell this pledge without his know- ledge, is impossible. And when it is sold by judicial authority, he may retain or demand the amount for which it may have been pledged to him. Very different is the situation of a mortgage or privilege. The property affected by the one or the other, may be disposed of, as in the instance now before the court, without the creditor's consent, or knowledge; and the whole proceeds removed or dissipated before it could be possible for him to secure, or even to claim any part of them.
The articles of the civil code, already noted
Lastly, the determination of the court in the case of Sadler vs. Lafon, referred to and explained at the first hearing, is in strict conformity to these laws, and was supposes to have set all these questions at rest. 4 Marting 477.
The leciston of the present cqe is believed to admit principles unknown to our ancient law, principles adverse to those of our civil code, contrary to uniform and approved practice, and dangerous to the rights of all privileged and mortgage creditors. A rehearing of the cause is therefore respectfully and earnestly requested.
No re-hearing was granted.
Reference
- Full Case Name
- ALEXANDER v. JACOB & AL.
- Cited By
- 6 cases
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- Published