Case Name: Yale, Syndic v. Nolan
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1848-05
Citations: 3 La. Ann. 449
Docket Number: 
Parties: Yale, Syndic v. Nolan.
Judges: 
Reporter: Louisiana Annual Reports
Volume: 3
Pages: 449–450

Head Matter:
Yale, Syndic v. Nolan.
Where a creditor, who had wrongfully obtained certain merchandize from the shop of hiu debtor, on the eve of his cession, in satisfaction of his claim, has a judgment rendered against him in an action by the syndic for the value of the merchandize, he cannot plead in compensation of the judgment the debt, evidenced by a note, due from the insolvent to him. His only right is to a proportional share of the funds of tho insolvent when distributed.
APPEAL from the Third District Court of New Orleans, Kennedy? J.
Emerson, for the plaintiff.
Redmond, for the appellant.

Opinion:
The judgment of the court was pronounced by
Kin®, J.
Our conclusion upon the merits renders it unnecessary to consider the motion to dismiss this appeal.
The plaintiff, in his capacity of syndic, obtained a judgment against the defendant for the value of a quantity of merchandize, which the latter wrongfully obtained from the store of Pigneguy, on the eve of P'igneguy's surrender. The judgment was affirmed by Shis'court. [This case is not reported, having turned on questions of fact. R.] After its return to the lower court, a rule was taken om the syndic, to show cause why a note held by Nolan should not be compensated against the judgment. The rule was discharged, and Nolan has appealed.
The district judge did not, in our opinion, err. The wrongful act of Nolan in obtaining possession of goods, which were the common pledge of the insolvent's creditors, and which he was required to restore to the syndic, did not establish the relation of mutual indebteness from which compensation results. To sanction Nolan's present claim, would be to permit him indirectly to secure an unjust preference over other creditors. His only right is to his rateable distribution of the funds of the insolvent.
Judgment affirmed.
This note was the evidence of the debt, which Nolan attempted to satisfy by taking the merchandize on the eve of Pigneguy's cession, . K.