Case Name: AMERICAN BANK AND TRUST CO. IN MONROE v. CARSON HOMES, INC.; AMERICAN BANK AND TRUST CO. IN MONROE v. LAKESHORE REAL ESTATE EXCHANGE, INC.
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1975-07-25
Citations: 316 So. 2d 732
Docket Number: No. 56346
Parties: AMERICAN BANK AND TRUST CO. IN MONROE v. CARSON HOMES, INC. AMERICAN BANK AND TRUST CO. IN MONROE v. LAKESHORE REAL ESTATE EXCHANGE, INC.
Judges: BARHAM, J., dissents and assigns reasons.
Reporter: Southern Reporter, Second Series
Volume: 316
Pages: 732–736

Head Matter:
AMERICAN BANK AND TRUST CO. IN MONROE v. CARSON HOMES, INC. AMERICAN BANK AND TRUST CO. IN MONROE v. LAKESHORE REAL ESTATE EXCHANGE, INC.
No. 56346.
Supreme Court of Louisiana.
July 25, 1975.
Robert D. Edwards, Metairie, Milton P. Masinter, New Orleans, for defendants-applicants.
James A. Hobbs, Jones, Blackwell, Chambliss, Hobbs & Henry, West Monroe, for plaintiffs-respondents.

Opinion:
SANDERS, Chief Justice.
The American Bank and Trust Co. in Monroe, the holder of mortgage notes, undertook to seize and sell defendants' immovable property by executory process. Defendants sought to enjoin the proceeding. After hearing, the district court denied the injunction. On application of defendants, we granted writs to review the propriety of the executory procedure. La., 312 So.2d 868 (1975).
The sole issue presented for our review is the sufficiency of the authentic evidence to support executory process.
Executory process is an accelerated procedure whereby a mortgage creditor may provoke a sale of the encumbered property to satisfy his mortgage. Because of its summary nature, the law has surrounded executory process with safeguards for the protection of the debtor. Among these is the requirement that the petition be supported by authentic evidence. If the essential authentic evidence is lacking, ex-ecutory process is unavailable, and the creditor's remedy is by ordinary process. LSA-C.C.P. Art. 2635; Miller, Lyon & Co. v. Cappel, 36 La.Ann. 264 (1884); Ricks v. Bernstein, 19 La.Ann. 141 (1867).
Article 2635 of the Louisiana Code of Civil Procedure provides:
"The plaintiff shall submit with his petition the authentic evidence necessary to prove his right to use executory process to enforce the mortgage or privilege. These exhibits shall include authentic evidence of:
"(1) The note, bond, or other instrument evidencing the obligation secured by the mortgage or privilege;
"(2) The authentic act or mortgage or privilege importing a confession of judgment ; and
"(3) Any judgment, judicial letters, order of court, or authentic act necessary to complete the proof of plaintiff's right to use executory process.
"This requirement of authentic evidence is relaxed only in those cases, and to the extent, provided by law."
Defendants assert that the mortgages were executed in the presence of only one witness, that the notary public and second witness, whose names appear on the instrument, were absent and affixed their signatures at a later time. Defendants, therefore, contend that the acts are not authentic acts as defined by Article 2234 of the Louisiana Civil Code. Defendants further contend that the corporate resolutions purporting to authorize the execution of the mortgages are deficient in content and certification.
The plaintiff bank asserts that the mortgages and other documents substantially comply with the requirements for executo-ry process in that the essential evidence is authentic. Alternatively, the bank asserts that the real estate mortgages are equivalent to authentic acts under Article 2242 of the Louisiana Civil Code, since the official of the corporate defendants testified at the injunction hearing that his signature on the mortgage was genuine.
Louisiana courts have consistently held that parole evidence is admissible to establish that an instrument purporting to be an authentic act is not in fact authentic, because it was not executed in compliance with Article 2234 of the Louisiana Civil Code. LSA-C.C. Art. 2236; Succession of Cauvien, 46 La.Ann. 1412, 16 So. 309 (1894); Pain v. Plicque & LeBeau, 10 La. 304 (1836); Union Savings and Loan Association v. The Grand Co., 239 So.2d 395 (La.App. 4th Cir. 1970); Ford Motor Credit Co. v. Williams, 225 So.2d 717 (La.App. 1st Cir. 1969); Finance Security Co. v. Williams, 42 So.2d 902 (La.App. 1st Cir. 1949); Dainello v. McCoy, 14 La.App. 358, 131 So. 608 (Orl.Cir. 1930).
From our review of the evidence, we find that the mortgages were executed in the presence of only one witness. The Notary Public and second witness, absent at the time of execution, signed the instruments at a later time. The trial judge made no contrary finding, but assumed for purposes of his ruling that the Notary Public and attesting witnesses were not present when the mortgages were signed. Hence, we conclude that the mortgages are not authentic acts.
Having found that the acts are not authentic as executed, we must now consider plaintiffs argument that they have the effect of authentic acts by virtue of LSA-C.C. Art. 2242, which provides:
"An act under private signature, acknowledged by the party against whom it is adduced, or legally held to be acknowledged, has, between those who have subscribed it, and their heirs and assigns, the same credit as an authentic act."
At the hearing on the injunction, the official of the corporate defendants testified that he haci signed the notes. Plaintiff argues that this judicial admission gave the instruments the same credit as authentic acts by virtue of the above article.
We find this argument to be without merit. We have always held that the requirements for executory process must be strictly followed. Since Article 22427" LSA-C.C., is a general provision and the executory process requirement is a specific provision, we hold the specific provision controlling. An act under private signature duly acknowledged may support executory process on a chattel mortgage on a movable, but a specific statute has authorized it. See LSA-R.S. 9:5353. The Legislature has made no such exception for mortgages on immovables. The provision in Article 2635, LSA-C.C.P., that "[tjhis requirement of authentic evidence is relaxed only in those cases, and to the extent, provided by law," in light of the special exemption for movables, indicates to us that the exceptions must be clear and specific pronouncements of the legislative will.
In League Central Credit Union v. Montgomery, 251 La. 971, 207 So.2d 762 (1968), this Court stated:
"Our law stipulates the authentic evidence required in order to invoke execu-tory proceedings. C.C.P. Art. 2635. The courts on numerous occasions have held that, without the proper authentic evidence, executory proceedings cannot be had. Miller, Lyon and Co. v. Cappel and Curry, 36 La.Ann. 264; LiRocchi v. Keen, 242 La. 111, 134 So.2d 893."
Having concluded that executory process falls because the mortgages are not authentic, we need not consider defendants' argument that the corporate resolutions attached to the mortgages and notes are defective under LSA-R.S. 13:4103.
Relators are entitled to a preliminary injunction enjoining executory process without bond. LSA-C.C.P. Art. 2753; Buckner v. Carmack, La., 272 So.2d 326 (1973).
For the reasons assigned, the judgment of the district court is reversed and set aside. Judgment is rendered granting to the relators, Carson Homes, Inc. and Lake-shore Real Estate Exchange, Inc., a preliminary injunction restraining and enjoining the American Bank and Trust Company in Monroe from proceeding by executo-ry process in this matter. All court costs in this proceeding are assessed against American Bank and Trust Company in Monroe.
BARHAM, J., dissents and assigns reasons.
. "The authentic act, as relates to contracts, is that which has been executed before a notary public or other officer authorized to execute such functions, in presence of two witnesses, aged at least fourteen years, or of three witnesses, if a party be blind. If a party does not know how to sign, the notary must cause him to affix his mark to the instrument.
"All prooes verbal of sales of succession property, signed by the sheriff or other person making the same, by the purchaser and two witnesses, are authentic acts."