Zeigler v. His Creditors

Citations

• 116 La. 250
• 40 So. 693
• 1906 La. LEXIS 494

Syllabus

<p>Insolvency — Unauthorized Payment by Syndics—Liability Thereeok.</p> <p>Both syndics appointed to an insolvency having died, their heirs presented a final account of administration. It showed the amounts received and disbursed by the syndics and a trifling balance of money on hand. Certain mortgage creditors opposed the account on the ground that they were entitled to receive payment in full of their claims, that the disbursements as made by the syndics were without authority of the court, that payments in full had been made to creditors subordinate in rank and to right of payment to themselves, and that the effect of the payments made by the syndics would be besides to throw upon opponents costs and expenses of administration, for which others than themselves were wholly responsible. They prayed that the accounts be amended so that they should be paid their claims in full and for judgment against the syndics. Judgment was rendered in their favor, and the heirs of one of the syndics appealed, urging that the amounts paid out were for debts justly due and liberated the insolvency to that extent; that, if opponents had any claim to be paid, under the circumstances they should assert their rights against the creditors who had been paid, whom they charge should not have been paid until after the payments of the costs, as provided by article 1188 of the Civil Code; that opponents should not be permitted to recover more than the amount in their hands; that, if they had any remedy against themselves, it was by following the provisions of articles 1055 and 1056 of the Code of Practice, and judgment against them should not have been rendered by the court.</p> <p>Held, that the remedy resorted to and accorded was justified by the decision in Ford v. Kittredge, 28 La. Ann. 113; that, appellants having made payments without orders of court, the provisions of article 1188 of the Civil Code did not apply to the case; that, if repetition or credit could be claimed in any direct