Calhoun v. Lanaux

• Citation: 32 L.Ed. 297,8 S.Ct. 1345,127 U.S. 634
• Parties: CALHOUN et al. v. LANAUX
• Decision Date: 14 May 1888
• Court: United States Supreme Court

8 S.Ct. 1345

127 U.S. 634

32 L.Ed. 297

CALHOUN et al. v. LANAUX.

May 14, 1888.

J. P. Hornor, for plaintiffs in error.

B. F. Jonas, for defendant in error.

BRADLEY, J.

This case arose upon a petition filed in the civil district court for the parish of Orleans, January 23, 1884, by Lanaux, the defendant in error, praying for a mandamus against Eugene May, the recorder of mortgages for the same parish, commanding him to cancel and erase from the books of his office all inscriptions against certain property of the petitioner in favor of the Consolidated Association of the Planters of Louisiana, particularly certain inscriptions designated in the petition as being those of a mortgage on three certain lots in New Orleans, dated June 6, 1843, given to secure the payment of a subscription for 15 shares of the capital stock of the company, of $500 each. The state of Louisiana, through its attorney general, the Consolidated Association of the Planters of Louisiana, through its liquidators, and Henry Denis and others, holders of bonds of the state, secured by pledge of the mortgage above mentioned, were made parties to the proceeding. The interest of the collateral parties arose in this way: The mortgage was originally given by one Lebau to secure the payment of his subscription for the 15 shares of stock, and, with the like mortgages of other subscribers, and the other assets of the corporation, was pledged by the company to the state as security for paying certain bonds issued by the state in favor and aid of the company. Hence the interest of the state. The other parties were holders of these bonds of the state, and claimed to be subrogated to its rights. The petitioner alleged that by an act of the legislature of Louisiana, passed in 1847, and by the action of the liquidators of the company, (which had become insolvent,) the stockholders were called upon to contribute $102 per share as a fund to meet the obligations of the state, payable in yearly installments of $6 each, for the period of 17 years; and that all these installments had been paid on the 15 shares secured by the mortgage in question. The petitioner further stated that in the case of Association v. Lord, (one of the stockholders in consimili casu,) 35 La. Ann. 425, the supreme court of Louisiana had decided that the payment of the said installments discharged the obligations of the stockholders both as to the subscription and mortgage. He further stated that the mortgage kept his lots out of commerce, and that he had no adequate relief except by mandamus to the recorder. Prior to the filing of this petition, the circuit court of the United States for the Eastern district of Louisiana had appointed receivers of the said Consolidated Association of Planters, and a copy of the petition was served on them. The attorney general of Louisiana appeared, and filed an exception to the proceeding by mandamus, claiming that the petitioner could only have relief by a plenary suit, via ordinaria; and that it was, in fact, a suit against the state, which could not lie without its consent, and that the state declined to be made a party to the proceeding. The recorder of mortgages appeared, and contended that be could not be required to cancel the inscription of the mortgages until it had been judicially declared that they were not valid and existing securities by proceedings via ordinaria, by way f citation contradictorily had with the parties claiming the benefit of the mortages. The holders of the state bonds, Denis and others, appeared, and denied the allegations of the petition, and pleaded that the court had no jurisdiction of the demand of the relator, because receivers had been appointed to the Consolidated Association of Planters by the circuit court of the United States, and that court only could entertain jurisdiction of the matter. The receivers of the association, appointed by the circuit court, did not appear, and offered no objection to the proceeding. The cause was tried, and the civil district court, for some reason not shown, dismissed the petition. The case was then appealed to the supreme court of Louisiana, which, on the first hearing, affirmed the judgment; but on a rehearing reversed it, and granted a mandamus as prayed.

On the question of jurisdiction raised by the plea of the bondholders, the court said: 'The point made that this court is without jurisdiction because receivers have been appointed for the Consolidated Association by the United States circuit court is untenable, when the object of the proceeding is to erase from the mortgage book of the state an incumbrance created by the law, and which the circuit court of the United States would have no authority to order.' As this presents the only federal question raised in the case we have no occasion to consider any other. If the state court had jurisdiction of the proceedings, its judgment cannot be impeached on the present writ of error, for that is the only objection made to it on federal grounds. The objection is that the court has no jurisdiction because the United States court had appointed receivers of the association. The simple fact that the said court had appointed such receivers is the only fact disclosed in the record, so far as the proceedings in the circuit court of the United States are concerned, until after final judgment had been rendered in the supreme court of Louisiana; and this fact only appeared by the statement of the defendants Forstall and Denis in their answer. After final judgment of the supreme court was rendered, ...