By the Civil Code of Louisiana, a time or delay for the payment
of debts, called a respite, is granted by the proper court on
petition of a debtor who is unable to pay his debts, &c., but
notice of the proceeding must be given to every creditor on whom
notice could be served or he is not bound by the same.
The District Court of the United States, of Louisiana properly
overruled a defense set up to an action on a promissory note
against a debtor who had not given notice to his creditors of the
proceedings for a respite. The creditor was in no sense a party to
the proceedings, and his rights were in no sense affected by
them.
The defendant in error instituted a suit in the district court
on a promissory note, and the defendant having applied, after the
suit was brought, to a court of Louisiana for the benefit of the
insolvent law of that state, pleaded a respite obtained in those
proceedings against his creditors.
In the proceedings of the court of Louisiana in the petition of
the plaintiff in error, it nowhere appears that any notice of the
same was given to Francois Girod; on this ground the district court
decided against the plea, and gave judgment for the plaintiff in
that court.
The defendant prosecuted this writ of error.
Page 35 U. S. 284
MR. JUSTICE McLEAN delivered the opinion of the Court.
The plaintiff in the district court filed his petition
representing that Haydel, the defendant, was indebted to him in the
sum of $2,189, being the amount of a certain promissory note drawn
17 July, 1833, by J. J. Haydel, payable in all the month of
February, 1834, to the order of M. Belfort Haydel, by whom it was
endorsed to the plaintiff. That when the note became due, demand
was made and notice given, &c.
On 17 May 1834, the defendant, Haydel, filed an answer in which
he states for exception to the petition that by a decree of the
First District Court of the First Judicial District of Louisiana,
all proceedings against his property and person have been stayed
upon the application of the respondent for a respite under the
provisions of the law of the State of Louisiana.
"That the note or instrument upon which he is sued being made in
said state and payable there, the said Girod, having before and
since the making of said note resided within the said state, is
bound by the laws thereof and cannot, because of the decree
aforesaid, further prosecute his said suit in this court until the
creditors of your respondent shall have refused the respite
demanded by him or until the period thereof, should the said
creditors accord a respite, has expired."
Afterwards the defendant applied for leave to file a
supplemental answer, which was refused under the rule of the
court.
And on 14 January, 1835, a judgment was entered for the
plaintiff.
By the Civil Code of Louisiana, it is declared, Article
3051,
"A respite is an act by which a debtor who is unable to satisfy
his debts at the moment transacts with his creditors and obtains
from them time or delay for the payment of the sums which he owes
them. "
Page 35 U. S. 285
And in Article 3054.
"But in order that a respite may produce that effect, it is
necessary,"
"1. That the debtor should deposit in the office of the clerk of
the court of his domicile, to whom he presents his petition for
calling his creditors, a true and exact schedule, sworn to by him,
of all his movable and immovable property, as well as of his
debts."
"2. That a meeting of the creditors of such debtor domiciliated
in the state shall be called on a certain day at the office of a
notary public by order of the judge, at which meeting the creditors
shall be summoned to attend by process issued from the court if the
creditors live within the parish where the meeting shall take
place, or by letters addressed to them by the notary if they are
not residing in the parish,"
&c.
It was under this law that the matters in the defendant's
answers were pleaded, and it was insisted that the district court
should have suspended all proceedings in the suit.
The defendant, it appears, exhibited his schedule, as stated in
the state court, but it nowhere appears in the record that notice
was given to the plaintiff either by the notary or otherwise, as
the law requires. Without deciding what effect these proceedings in
the state court, if regular, could have on the suit in the district
court, it is enough to say that as the plaintiff had no notice, he
was in no sense made a party to the proceedings, and consequently
his rights are in no respect affected by them. The district court
therefore did not err in overruling this defense and giving a
judgment for the plaintiff.
This point was decided in the case of
Breedlove and Robeson v.
Nicolet and Sigg, 7 Pet. 434. The judgment of the
district court is
Affirmed.
This cause came on to be heard on the transcript of the record
from the District Court of the United States for the Eastern
District of Louisiana and was argued by counsel, on consideration
whereof it is adjudged and ordered by this Court that the judgment
of the said district court in this cause be and the same is hereby
affirmed with costs and damages at the rate of six percentum per
annum.