Midland-Guardian of Pensacola, Inc. v. Carr
Citation | 425 F.2d 793 |
Decision Date | 18 June 1970 |
Docket Number | No. 27020.,27020. |
Parties | MIDLAND-GUARDIAN OF PENSACOLA, INC., Plaintiff-Appellant, v. Mary H. CARR, Wife of/and Earl T. Carr, et al., Defendants-Appellees. |
Court | United States Courts of Appeals. United States Court of Appeals (5th Circuit) |
Carl W. Cleveland, New Orleans, La., for appellant.
Fernand F. Willoz, III, New Orleans, La., for appellees.
Before RIVES, BELL and DYER, Circuit Judges.
Rehearing Denied and Rehearing En Banc Denied June 18, 1970.
The sole issue on this appeal is the type of relief granted to Midland by the District Court when it sustained Midland's attack upon a purported act of sale to certain valuable real property1 executed by Earl T. Carr to Earl T. Carr Realty Co., Inc. The district court decreed that the sale of the property "be and it is hereby declared null and of no effect and the property is subject to the just claims of the debtor's creditors." Midland insists on this appeal that the district court should have nullified the sale only insofar as it, Midland, the creditor asserting the action, is concerned. Midland is aggrieved by the district court's choice of remedy because Midland was the last of Earl T. Carr's creditors to reduce its claim to judgment and would rank last in its claim to the proceeds from the sale of the property; whereas if the decree operated only in favor of the creditor successfully asserting the action, Midland would have the right to execute against the property in the hands of the fraudulent transferee.
In its complaint filed in the district Court, Midland sought to recover a deficiency judgment on eleven promissory notes executed by Earl T. Carr and his wife, Mary H. Carr, secured by separate collateral mortgages on each of eleven house trailers. The Carrs contended that their signatures on the promissory notes were procured by fraud, in that Midland represented that their signatures were necessary only to reflect that Midland retained the chattel mortgages on the trailers and Midland would in no event seek collection of the amount of the notes except to the extent of foreclosing on the chattel mortgages. The district court found as a fact that the signatures of the Carrs were not procured by fraud and entered a money judgment against the Carrs for $31,385.31 plus interest, costs and attorneys' fees in the amount of 25%.2
Midland joined its suit for a money judgment against the Carrs with an attack upon the conveyance of real estate by Earl T. Carr to Earl T. Carr Realty Co., Inc. The attack upon the conveyance was based in the alternative upon two separate and distinct theories of action, the action to declare simulation and the revocatory action embodied in Louisiana Civil Code, Articles 2239 and 1970-1994, respectively, which adopted the theories of action from the French Civil Code and its predecessors.3
The relief granted by the district court was under the doctrine of simulation. The effect was simply to declare the alleged transfer of property void and of no effect and to make the property subject to the just claims of Carr's creditors. The relief thus chosen followed the first alternative asserted by Midland in its complaint.4
Apparently the district court granted Midland the relief which it sought. The appendix on this appeal closes with this final judgment of the district court. Midland's original brief informs us of further proceedings:
The only appearance noted by the Carrs in this case is in a letter to the Clerk, reading:
A letter to the Clerk from Midland's counsel is more explicit:
We have...
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Haile v. SUPERIOR COURT OF STATE OF DELAWARE
...g., Moore v. Charlotte-Mecklenburg Board of Education, 402 U.S. 47, 91 S.Ct. 1292, 28 L. Ed.2d 590 (1971); Midland-Guardian of Pensacola, Inc. v. Carr, 425 F.2d 793 (5th Cir. 1970). In the case presently before this Court, the Superior Court of the State of Delaware has no stake, monetary o......