Martinez v. Layton
Martinez v. Layton
Opinion of the Court
delivered the opinion of the court. The first question which this case presents, is whether after the failure of the debtor, a mortgagee creditor can exercise his action of mortgage against property, which is in the hands of a third possessor: or whether it should not be prosecuted by the syndics of the insolvent.
We think the action is properly maintainable by the individual creditor. The property,
The third, and by far the most important question in the cause remains: it is, whether a mortgage which has been duly recorded, can be enforced on property, which, previous to the date of recording, had been sold by act sous seing privé, and was in the possession of
In the case of Doubrere vs. Syndics of Grillier, it was decided, that the chirographic creditors of an insolvent could not set aside privé ucs of their debtor; that they did not possess such a right before failure, and. that their rights were not increased by that event. In tine opinion delivered in that case, which received our most serious attention, many oí the topics that necessarily belong to this, were considered, and a good deal of the reasoning-used there, has a strong application to the instance now before us. Vol. 2, 171.
Still, the point there adjudged, is not the same as that ivhich is necessary to the;, decision of this cause; and the express reservation which we made of such a case as that presented at this moment to the court, show's, that wo then considered a decision on the rights of creditors, who had neither privilege or mortgage on the real estate of their debtor, would, not be decisive as to those, who with such advantages should hereafter contest the effect of an act under private signa-;, ture.
According to our code, “ The- mortgage is'
/ Another provision of the same work declares, that sales of immoveable property may be made by authentic act, or under private signature. Civil Code, 344, art. 2.
/ Now, where there is a sale by sous seing privé followed by delivery previous to the date of the mortgage, the thing sold has ceased to be the property of the mortgagor, and it is as we have already seen, only his property that can be affected by it.
If these were the only provisions of our law on the subject, the case would be one of the greatest clearness, and the decision which we should necessarily give on it, would be conformable to the principles of our ancient jurisprudence ; according to which, a sale followed by delivery gave a complete right to the thing, and neither alienation nor mortgage subsequent to such sale and delivery, could affect the thing in the hands of the first purchaser. This principle came from Rome, where as it is well known, the maxim was, traditionibus.i.dominia rerum, non nudis j.metis fransferentvr. ""'Partida 5, fit. 5, c. 20; Febrero
But the change which has takers place in the condition and affairs oí society from the vast extension of commerce, and the great use of credit in modern times, has induced several of the modern nations of Europe to introduce a new and much more complex doctrine in relation to the alienation of immoveable property ; and cases are contemplated, where, though the sale is declared perfect between vendor and vendee, and the thing actually belongs to the latter, it yet remains the property of the seller, so far as third parties, possessing particular rights, are concerned. We have adopted this principle in our legislation.
The counsel for the mortgagee creditor has referred to the Code, page 344, art. 2, which treats of the effect of a sale under private signature. Before examining it, and it will be found very material in the decision of ihe case, it is necessary to recur to other provisions of our law in relation to acts sous seing privé.
The 224th article of the Civil Code, p. 306, is taken verbatim from that of the Napoleon; it is in these words:
The 228th article of the same page declares “that sales of immoveables and slaves, sous seingprivé, shall have effect against third .persons only from the time of their being registered, but that the want or delay of registering cannot be pleaded by any one of the contracting parties, their heirs and assigns, (ayans cause.)
These provisions are the same with those which have occasioned so much discussion among the jurists of France. The strength of the argument on both sides, is no doubt given to us in the works of Toullier and Merlin, which have reached this state; and it is believed that an attentive perusal of them, will either leave men’s minds in as much doubt and difficulty here, or lead to as great a diversity of opinion, as they have done in the country where this discussion has arisen.
It is contended by one class of the French jurists, that the words ayans cause, mean all
Those who maintain the opposite doctrine, insist that the second purchaser is a third party, (tiers') and that he is enabled to allege the want of registering of the act under private signature.
It would be of little utility, if it were practicable, to bring withiuthe compass of a judicial opinion, the various arguments and authorities on which the advocates of the respective doctrines just alluded to rely. In the ardour with which the discussion is conducted, both parties will be found, perhaps, to have fallen into contradictions not easily reconciled ; and to have arrived at conclusions, which in their whole extent, it is difficult to accede to.
ss said, for .example, that, the mortgagee creditor, by convention, is the ayant cause of his, debtor, but that he who makes a seizure in virtue of a judgment, is not; vet it is perhaps
But this inconsistency is still less striking than that exhibited by the advocates of the opposite doctrine. They contend that the seizing creditor is the ayant cause of the debtor, but they insist that as to any act made by him under private signature, the former can plead the want of registry. This argument would appear to be completely at war with the admission, that the creditor is the ayant cause of the vendor; for if he be, the law expressly says, that the act sous seing privé is as binding on him, as the party who signs it. Indeed, on a perusal of the whole of the discussion on this, side, it will be seen that its advocates rely rather on the intention of the law maker, and the inconveniences which would result from adopting the principles of their adversaries, than on the strict meaning of the terras
Without entering, however, on a question on which it is so easy to argue, anti which it is so difficult to decide; we think the case before us may be settled under our law in such a manner, as will most certainly give ef-feet to the intention, of the legislature, and be at the same time in consonance with the letter of the law.
The object of laws for enregistering deeds under private signature, are two fold. First, to secure the purchaser by authentic act from being defrauded by his vendor antidating instruments sous seing privé. Second, to prevent, the latter from obtaining a false credit by titles recorded, which are notice to the world of the property he owns; while at the same time he has divested himself of that property by instruments under private signature, which are unknown to those who trust him, in the confidence of bis' being the proprietor of
/The first evil is effectually guarded against, jjy giving the act under private signature effect only when it is proved by circumstances dehors the instrument, that it was really made at the time it purports to be ; as in the cases put by Pothier. The second is prevented in the greater number of instances, by delivery and possession of the vendee following the act sous seing privé. For we believe that deeds recorded in a notary’s office, are not in general as effectual notice to subsequent purchasers, as a peaceable, public, and notorious possession, by a third party. Our legislature hás lately, and with great wisdom, we think, sanctioned this principle in their amendments to the Civil Code. By the 2242d and 2417th articles of that work, sales under private signature, have effect against third parties from the day they are recorded, or from the time the property is delivered. Pothier, Traite des Ob. 715; ibid, de la Prescription, 99; Lous. Code, 2242 and 2417.
We have no doubt such was always their intention, though the language by which they expressed it, is not so clear and free from am-
By this article d is declared, that “ the sale of any immoveable or slave, made under private signature, shall have effect to the prejudice of persons not parties to it, only from the day said sale ivas registered in the office of a notary.” Civil Code, 344, art. 3.
The prohibition of the law maker, then, is against giving effect to private acts to the prejudice of third parties. What is the conclusion to be drawn from such a prohibition, when such acts do not prejudice third parties ? Why, surely to give them effect. We are: aware that this argument, contraído sensu, is not always conclusive in the interpretation of laws, though in general it is correct, and will lead to truth. But after weighing this case with the most anxious solicitude, and a care and attention which are evidenced by the length of time we have had it under consi
It is true, that the previous article of the code, in relation to the registering of private acts, states generally, that they shall have no effect against third persons. But as the same provision is repeated in that just referred to.
Leaving the general question, and approaching the particular case before us, we are gratified to find the principles just established, enable| us todo justice between the parties. The lot on which the plaintiff insists his mortgage attaches, was given to the vendors of the defendants, in payment of work done by them, on a house still standing, which makes a part of the estate surrendered by the insolvent to his creditors. . In place of the thing alienated, they possess the thing received, and it augments the estate out of which they are to be paid. How, then, can it be said the judgment creditor is prejudiced by this act ? if he be, we are unable to perceive it No.r is he prejudiced by having been led into a false confidence, and giving credit, on the faith of this property, by seeing his debtor in possession oi a title, by public act, ai a lime when it ivas secretly alienated ThL cannot be
The judgment of the parish court is erroneous in being one of nonsuit, when it should have been final for the defendants; but as the appellee has not desired it to be amended, it is therefore ordered, adjudged and decreed, that it be affirmed with costs.
Reference
- Full Case Name
- MARTINEZ v. LAYTON & CO.
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- Published