Kelly-Goodfellow Shoe Co. v. Fluker
Kelly-Goodfellow Shoe Co. v. Fluker
Opinion of the Court
The opinion of the court was delivered by
The judges of the Court of Appeals for the Second! Circuit have submitted to this court, for its opinion, under Article 101 of the Constitution, the following question of law, the determination of which they declare is necessary and proper for a decision by the Court of Appeals, of the case of the Kelly-Goodfellow Shoe Company vs. Ben. K. Fluker et al., pending before it on appeal.
“After the full term of a respite has elapsed, and no payments have been made by the debtor, can a creditor who participated in the meeting of creditors, and voted for the respite, proceed against the debtor by direct action for the recovery of his debt alone without first resorting to judicial process to annul or vacate the judgment homologating the proceedings of the creditors, or proceeding to force a cessio bo noruin
They state that the question arose under the following facts :
The defendant, Ben. K. Fluker, in March, 1895, was granted a respite for three years for the payment of his debts. The judgment
The plaintiffs were creditors, participated in the proceedings and voted for the respite. The respited debtor failed to pay any part of plaintiffs’ claim during the term of the respite, and on October 25, 1898, the plaintiffs brought an ordinary action against him to recover the same, coupling an attachment thereto.
'■ The defendant, Eluker, pleaded the respite in bar of the suit, alleging that the judgment of March 2, 1895, had never been revoked or annulled, but was still in full force and effect, and therefore the suit ought not to be entertained.
The district judge, in a written opinion filed in the cause, while maintaining that the plea should be overruled, yet maintained it contrary to his own views, because the Court of Appeals for the First Circuit, in. the First Circuit, in the case of Mrs. M. L. Bennett vs. Meredith, Sheriff, decided by that court in October, 1890, in the parish of Caldwell, maintained an injunction presenting the same issue.
The judges of the Court of Appeals for the Second Circuit, in their application, state that they differed from the views expressed in that case, and thought that the respite presented no bar to plaintiffs’ suit, because the period for which it was granted has expired, and submitted the question to the Supreme Court in the interest of uniformity in the jurisprudence of the State for a proper decision of the cause.
We know of no legal reason why individual creditors, whose action has been stayed by an order of respite, may not proceed at once after the expiration of the delay fixed by the order to enforce their rights (if not then satisfied) by ordinary proceedings as if the respite had not been granted.
We have, on several occasions, declared, while the respite was still in force, individual creditors would not be permitted to institute suits in their separate interest under and through which the property of the. debtor, the common pledge of the creditors, should be appropriated to their own particular benefit. That the order for the respite, and the respite proceedings themselves, could not bo ignored by direct action of individual creditors, acting exclusively in their own behalf, even though the debtor may have failed to have carried out the duties
It is obvious that the restriction upon the action of creditors is limited to the period fixed in the order of respite, and that the contract of respite terminating ipso facto by expiration of time, all parties are released from the restrictions imposed by it, and fall back upon their original rights which have remained all the time intact and unimpaired, though temporarily held in abeyance (St. Louis National Bank vs. Block, 44 An. 893).
Erom that time forward the various creditors owe no duty to each other, and none to the debtor under the respite. Individual creditors,by placing themselves in the situation which would authorize them to-exact a cessio honorunij may have recourse to that remedy^ but they are under no legal obligation or duty to do so. Act No. 133 of 1888, if it applies at all to proceedings to be taken after the expiration of the respite delay, is permissive, not mandatory.
The objections urged in this case are not advanced by á creditor, but by the debtor himself in his own interest. His pretensions are utterly without foundation (Dyson vs. Brandt, 9 M. 498.) If he desires to make a voluntary surrender, he is at liberty to make an application to the court to that end, but he can neither gain additional time under the respite, nor force his creditors to throw him into a surrender under a supposed right which he holds against them to do-so. The right to force a surrender upon the debtor is a rigm held by creditors adversely to their debtor, and not one which the debtor can coerce them into exercising.
We answer in the affirmative the question submitted to us herein.
The decision of the Court of Appeals for the Eirst Circuit in the-case of Mrs. M. L. Bennett vs. Meredith, Sheriff, referred to by the judges of the Second Circuit, is erroneous, and should not he followed.
Reference
- Full Case Name
- Kelly-Goodfellow Shoe Company v. Ben. K. Fluker, Certified from the Court of Appeals, Second Circuit, by the Judges. Thereof Applying for Instructions
- Status
- Published
- Syllabus
- Syllabus. The expiration of the period *'or which a respite has peen granted, authorizes-parties whom; right of action has been stayed by the order of respite, and whose claims have not been paid, to proceed separately in their individual behalf against their debtor. There is no obligation- or duty on their part to foiee him to a oessio honor um.