Seelig v. Brusso, No. 21326

CourtCourt of Appeal of Louisiana (US)
Writing for the CourtMcBRIDE; REGAN
Citation121 So.2d 28
PartiesIsadore SEELIG v. D. James BRUSSO, Bertram R. Schwartz, Milton H. Cohen and Stella Homes, Inc.
Decision Date15 February 1960
Docket NumberNo. 21326

Page 28

121 So.2d 28
Isadore SEELIG
v.
D. James BRUSSO, Bertram R. Schwartz, Milton H. Cohen and
Stella Homes, Inc.
No. 21326.
Court of Appeal of Louisiana, Orleans.
Feb. 15, 1960.
On Rehearing June 6, 1960.

Page 29

I. Jay Krieger, New Orleans, for plaintiff and appellee.

Richard M. Mathews, New Orleans, for D. James Brusso, defendant and appellant.

Frank S. Bruno, New Orleans, for Stella Homes, Inc., defendant and appellee.

McBRIDE, Judge.

Plaintiff, who is the holder and owner for value of a promissory note for $1,000, dated September 12, 1955, payable 90 days after date to the 'order of ourselves' with interest at 4 per cent per annum, and signed and indorsed by D. James Brusso, Bertram R. Schwartz, and Milton H. Cohen, brought this suit against said parties and also against the corporation known as Stella Homes, Inc., seeking to recover of them in solido the amount of said note; the cause of action stated against said corporation rests on the allegation that it assumed and agreed to pay the obligation of D. James Brusso on the note.

Page 30

All defendants filed answers; Brusso denies he owes anything on the note; he alleges his virile portion of the amount due thereon is now and always has been the obligation of Stella Homes, Inc.; that said corporation in consideration of his resignation as a member of its Board of Directors relieved him from any personal liability on the note, and then assuming the position of a plaintiff in third party proceedings, Brusso made Stella Homes, Inc., his defendant and prayed for judgment against said corporation in the event, and for such amount as, the court should find him liable unto plaintiff.

The matter proceeded to trial with the result that there was judgment rendered against the three individual makers and indorsers thereof in solido for the amount of the note; plaintiff's claim against the corporation was dismissed; Brusso's demand against the corporation as third party defendant was dismissed as to nonsuit. Brusso is the only party who appealed from the judgment.

As we view the evidence, the note was given in consideration of a loan for $1,000 made by plaintiff, negotiated on behalf of the corporation by Cohen, its secretary-treasurer, who is one of the signers of said note; the proceeds of the loan were represented by plaintiff's check for $1,000, which was made payable to Cohen who in turn indorsed and deposited said check to the credit of Stella Homes, Inc., in its banking account. It abundantly appears that the three persons who appear as makers and indorsers on the note were accommodation parties, they constituting the Board of Directors of the corporation, and all parties to the transaction were fully cognizant of the fact plaintiff was advancing the money for the corporation's benefit.

During argument appellant Brusso took the position, first, that he is not liable to any extent on the note; second, in no event can he be cast for more than one-third the amount due, or as he termed it, his 'virile' share; and, third, if there is to be judgment against him, he should have a like judgment against Stella Homes, Inc., as his third party defendant.

1. Appellant's liability as maker and indorser is not affected by the fact he is an accommodation party, or that the holder of the note knew him to be such, or that he received no consideration; an accommodation party holds himself out to the world as absolutely bound to every person who shall take the instrument for value to the same extent as if that value were personally advanced to himself or at his request. LSA-R.S. 7:29; William D. Seymour & Co., Inc. v. Castell, 160 La. 371, 107 So. 143.

2. Appellant cites Watkins v. Haydel,...

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2 practice notes
  • Meadow Brook National Bank v. Recile, Civ. A. No. 67-341.
    • United States
    • United States District Courts. 5th Circuit. United States District Court (Eastern District of Louisiana)
    • April 28, 1969
    ...Supply & S. Mat. Co., 202 La. 787, 12 So.2d 819 (La.1943); New Ulm State Bk. v. Moore, 185 So.2d 367 (La.App. 1966); Seelig v. Brusso, 121 So.2d 28 (La.App.1960). This only means that the holder of a negotiable instrument may proceed directly against an endorser who waives these conditions ......
  • Deposit Guaranty Nat. Bank v. Shipp, No. 10897
    • United States
    • Court of Appeal of Louisiana (US)
    • November 28, 1967
    ...194 La. 478, 193 So. 713 (1940); W. F. Brown and Sons v. Easterly, La.App., 4 So.2d 73 (1st Cir. 1941); Seelig v. Brusso, La.App., 121 So.2d 28 We have heretofore stated our conclusion that the signatures of Carl Shipp, Jr., appearing upon the notes are genuine and fully supported by the te......
2 cases
  • Meadow Brook National Bank v. Recile, Civ. A. No. 67-341.
    • United States
    • United States District Courts. 5th Circuit. United States District Court (Eastern District of Louisiana)
    • April 28, 1969
    ...Supply & S. Mat. Co., 202 La. 787, 12 So.2d 819 (La.1943); New Ulm State Bk. v. Moore, 185 So.2d 367 (La.App. 1966); Seelig v. Brusso, 121 So.2d 28 (La.App.1960). This only means that the holder of a negotiable instrument may proceed directly against an endorser who waives these conditions ......
  • Deposit Guaranty Nat. Bank v. Shipp, No. 10897
    • United States
    • Court of Appeal of Louisiana (US)
    • November 28, 1967
    ...194 La. 478, 193 So. 713 (1940); W. F. Brown and Sons v. Easterly, La.App., 4 So.2d 73 (1st Cir. 1941); Seelig v. Brusso, La.App., 121 So.2d 28 We have heretofore stated our conclusion that the signatures of Carl Shipp, Jr., appearing upon the notes are genuine and fully supported by the te......

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