Bank of St. John v. Hibernia Bank & Trust Co.

FOURNET, Justice.

This suit was instituted by the Bank of St. John against the Hibernia Bank & Trust Company, in liquidation, and the Reconstruction Finance Corporation for the cancellation and return of its two certain promissory notes for the sum of $10,000 each, together with the collateral attached thereto in pledge to secure the payment, thereof, on the ground that the notes were fully compensated and offset by operation of law, under the provisions of article 2208 of the Revised Civil Code.

The defendants answered the suit denying the allegations supporting plaintiff’s contention and…