Nicolson & Co. v. Citizens' Bank
Nicolson & Co. v. Citizens' Bank
Opinion of the Court
The petition alleges that “ on February 8, 1870, Nicolson and Company, in liquidation, filed their petition, alleging that under a notarial contract with the city of New Orleans they had
The Citizens’ Bank answered that it had the first mortgage on the property; that the privilege claimed by the plaintiffs never existed; that if the privilege ever existed the claim was novated and the privilege was lost, and that the privilege had already been rejected in a suit between the plaintiffs and Stinson, the former owner of the property.
It appears that Nicolson & Co. took the note of Stinson for the amount of their claim for paving; that they had their claim recorded in the Book of Records, in March, 1860; that they sued Stinson on the said note and claimed a privilege on the property, and there was a judgment in their favor against Stinson for the amount of the note or claim, but the judgment said nothing about the privilege, and this-judgment became final. The judgment was rendered in February, 1861, and was duly recorded. . The bank’s mortgage was recorded in February, 1837.
It is evident, therefore, that the bank’s mortgage outranks the mortgage of the petitioner's, and that their pretensions to be paid by .preference can only be maintained by showing that they have a privilege on the property sold.
Privileges are strieii juris and must be clearly established by those who assert them. Pretermitting the expression of an opinion as to whether or not Nicolson & Co. novated their claim for paving by taking the promissory note of Stinson, and thus lost their privilege, it would seem that the judgment which they obtained against Stinson on that note should be conclusive against their claim now asserted to be a privilege. That judgment, we have seen, did not allow the privilege, although claimed in that suit. They rested satisfied with the judgment and had it recorded.
But even if that judgment did not settle the claim of Nicolson & Co.- adversely to them, they have lost their privilege by failure to reinscribe it within ten years. The privilege was recorded in 1860; the judgment was recorded in 1861, and there had been no reinseription thereof in 1872, when the bank foreclosed its mortgage. C. C. 3369.
It is therefore ordered that the judgment appealed from be affirmed with costs of appeal.
Reference
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