Cooper v. Jennings Refining Co.

Citations

• 118 La. 181
• 42 So. 766
• 1907 La. LEXIS 689

Syllabus

<p>1. Corporations — Subscription—Payment.</p> <p>Money sent to a company in payment of the sender’s subscription to its stock does not cease to be a payment, and become a loan, or otherwise create an indebtedness on the part of the company, from the fact that the company neglected to deliver the certificate of stock for which the money was paid, or even to give a x'eeeipt.</p> <p>2. Subrogation — What Constitutes.</p> <p>When article 2160, Civ. Code, says of conventional subrogation that “it must be made at the same time as the payment,” it simply means that the agreement of subrogation cannot be entered into after the payment. It does not mean that it cannot be entered into before the payment, as where the agreement is that, in case the party pays the debt at any time in the future, he shall be subrogated to all the rights of the creditor. Where the distinct understanding is that the payment will be made only on the condition of subrogation, the mere sending of a check in payment of the debt, without anything further being said about subrogation, will operate the subrogation.</p> <p>[Ed. Note. — For cases in point, see Cent. Dig, vol. 44, Subrogation, § 68.]</p> <p>(Syllabus by the Court.)</p>