Case details
Citation
93 U.S. 78
Full caption
Ryan et al. v. Carter et al.
Country
United States
Jurisdiction
Federal
Court
Supreme Court of the United States
Majority
Davis (Justice)
Majority
Waite (Chief Justice)
Majority
Hunt (Justice)
Ryan et al. v. Carter et al.
1. The first section of the act of June 13, 1812 (2 Stat. 748), making further provision for settling the claims to land in the Territory of Missouri, confirms, proprio vigors, the rights, titles, and claims.to the lands embraced by it, and, to all intents and purposes, operates as a grant.
2. The court adheres to the doctrine, announced in its previous decisions, that a confirmatory statute passes a title as effectually as if it in terms contained a grant de novo, and that a grant may be made by a law as well as by a patent pursuant to law.
8. Said first section is not, by the proviso thereto annexed, excluded from operating on the right and claim of an inhabitant of a village which is therein named to an out-lot, whose title thereto had, on his petition, been recognize and confirmed by the board of commissioners for adjusting and settling claims to land in said Territory.
Error to the Circuit Court of the United States for the Eastern District of Missouri.
This is an action of ejectment, brought Aug. 27, 1873, or part of a tract of land known as Survey 422, situate in the county of St. Louis, Mo. The parties claimed title under Auguste Dodier, and defendants relied also on the Statute o Limitations. . ,
On the 13th of October, 1800, Dodier asked of the then Spams Lieutenant-Governor of Upper Louisiana a concession o *ve hundred arpens of land; and, on the 14th of that month, Lieutenant-Governor ordered that he should be put m posse p. 79sion of the land requested. A survey and plat of the land so ceded was made by Soulard, surveyor under the Spanish government, and certified by him Dec. 10, 1800, and recorded by him in the record-book of surveys. Dodier duly filed and presented his claim to the board of commissioners for adjusting land-titles in the District of Orleans, Territory of Louisiana, who, on the thirty-first day of July, 1810, issued to him the following certificate: —
Commissioners' Certificate, No. 422, July 31, 1810.
“ We, the undersigned, commissioners for ascertaining and adjusting the titles and claims to lands in the Territory of Louisiana, have decided that Auguste Dodier, original claimant, is entitled to a patent under the provisions of the second section of an act of the Congress of the United States, entitled ‘ An Act for ascertaining and adjusting the titles and claims to land within the Territory of Orleans and the District of Louisiana,’ passed the second day of March, 1805, for five hundred arpens of land, situate in the District of St. Louis, on Beaver Pond, as described in a plat of survey, certified the 10th of December, 1800, and to be found of record in book A, page 326, of the recorder’s office, by virtue of a permission from the proper Spanish officer, and also of actual inhabitation and cultivation prior to and on the twentieth day of December, 1803.”
“James B. C. Lucas,
Clement B. Penrose, Frederick Bates.”
The land so confirmed was surveyed in 1817, by the proper surveyor of the United States, and is known as United States Survey No. 422; but the patent reciting the confirmation and survey was not issued until Aug. 9, 1873.
Dodier died in 1823, leaving heirs-at-law, under whom the plaintiffs claim title. Dodier and wife conveyed a part of the land by deed, bearing date Jan. 18, 1805, to Louis Labeaume, who died in 1821, having devised the property to his wife, by w 1 made in 1817; and by mesne conveyances her title passed to the defendant Carter. He, and those under whom he claims, ave been in the open, notorious, and undisputed possession of e demanded premises for thirty-five years before the commencement of this suit. In 1818, on the petition of Labeaume, partition was made between him and the heirs of Dodier; but p. 80the land in controversy is not within the boundaries of the tract described in the report of the commissioners in said partition suit to be set off to Labeaume.
In the year 1822, Susan Labeaume brought an action of trespass quare clausum fregit against Dodier’s heirs, in the Circuit Court of St. Louis County, to which was pleaded the general issue, and liberum tenementum; whereupon the plaintiff replied to second plea by novel assignment (describing the close as in the report of commissioners in the above partition suit). On July 27, 1825, the defendants in said suit obtained a verdict and a judgment thereon, and the case was taken by writ of error to the Supreme Court of the State of Missouri, by which, on May 25, 1826, the judgment was reversed and the case remanded, and on May 8, 1827, defendants again obtained judgment in the said Circuit Court. From the record of the said Supreme Court in said cause, it appears that a transcript of the record of said partition suit of Louis Labeaume v. Dodier’s Heirs, was read in evidence, but that the notice to defendants in said partition suit was not included in the bill of exceptions, and was not before the Supreme Court, and that the conveyance from Auguste Dodier and wife to Louis Labeaume, being admitted by defendants in said trespass suit, was also read upon the trial of said cause, and a copy theieof pre served in the bill of exceptions taken and filed in said cause.
Prior to and on Dec. 20, 1803, Auguste Dodier was an inhabitant of the village of St. Louis, possessed and cultivated the land known as United States Survey No. 422, and ' had a right, title, and claim thereto. It was an out-lot of the said village, within the meaning of the act of June 13, 1812, with definite boundaries and location, prior to and at the date of the acquisition of Louisiana by the United States.
These are the material facts found by the court below, whicR, by written stipulation of the parties, made a special finding o the facts. ,,
The court gave judgment for the defendants, w ereupo plaintiffs sued out this writ of error. . .
Argued by Mr. Daniel T. Jewett for the plaintiffsin error, who cited Magwire v. Tyler, 8 Wall. 650 ; Gibson 13 id. 92; Guitard^. Stoddard, 16 How. 494; Clarke v. Mum p. 81merle, 36 Mo. 620; Glasgow v. Hortiz, 1 Black, 600; Strother n. Lucas, 12 Pet. 410. Mr. Montgomery Blair, contra.
Mr. Justice Davis delivered the opinion of the court.
The defendants, and those under whom they claim, have been in continuous and adverse possession of the land in controversy, claiming title to it for more than thirty-five years. The justice of the case, growing out of such length of possession, is manifestly with the court below; and we think the law of it is equally so.
The property in suit is part of a tract of land known as Survey 422, in the county of St. Louis. The court below, by stipulation, tried the case, and made a special finding of facts, on which it based its conclusion of law, that the plaintiffs could not recover. It is objected that some of these facts were not warranted by the evidence; but this is not a subject of inquiry here. If the parties chose to adopt this mode of trial, they are concluded by the propositions of fact which the evidence, in the opinion of that court, establishes. Whether general or special, the finding has the same effect as the verdict of a jury; and its sufficiency to sustain the judgment is the only matter for review in this court. Norris v. Jackson, 9 Wall. 125; Handers v. Tweed, id. 425; Kearney v. Case, 12 id. 275; Miller v. Life Ins. Co., id. 285.
Both parties claim under Auguste Dodier, to whom the tract was confirmed in 1810, by the board of commissioners created to settle the title to lands in the Territories of Orleans and ouisiana. The plaintiffs insist that this confirmation vested on y an equitable title, and that the Statute of Limitations not begin to run until the fee passed out of the United ates by patent, in 1873. On the other hand, the defendants contend that the fee passed directly to him in 1812, by operation of the act of June 13 of that year (2 Stat. 748); y 5 if so, it is conceded that the Statute of Limitations how f becomes necessary, therefore, to inquire in th aC^S Congress to protect the rights of property 1803$ ac(piired from France by the treaty of April 30,
’ aPply to and affect the title to the land in controversy. vol. hi. „ J p. 82The United States stipulated that the inhabitants of the ceded country should be protected in the free enjoyment of their property; and in discharge of this obligation, and with a view to ascertain and adjust their claims to land, Congress passed acts in 1805, 1806, and 1807. As the board progressed in its investigations, it was found that the enforcement of the rules prescribed for its guidance excluded from confirmation a large number of meritorious claims, and more liberal provision was made for them by the act of June 13, 1812. Its first section declares “that the rights, titles, and claims to town or village lots, out-lots, common field-lots, and commons in, adjoining, and belonging to the several towns and villages (naming them), in the Territory of Missouri, which lots have been inhabited, cultivated, or possessed, prior to the twentieth day of December, 1803, shall be, and the same are hereby, confirmed to the inhabitants of the respective towns or villages aforesaid, according to their several right or rights of common thereto, provided that nothing herein contained shall be construed to affect the rights of any person claiming the same lands, or any part thereof, whose claims have been confirmed by the board of commissioners for adjusting and settling claims to lands in the said Territory.” It does not require the production of proofs before any commission or other tribunal established for that special purpose, but confirms, proprio vigore, the rights, titles, and claims to the lands embraced by it, and operates as a grant, to all intents and purposes. Repeated decisions of this court have declared that such a statute passes the title of the United States as effectually as if it contained in terms a grant de novo, and that a grant may be made by a law, as well as by a patent pursuant to a law.
The court below found that the lot of ground, now known as Survey 422, was an “ out-lot ” of the village of St. Louis, with definite boundaries and location, prior to and at the date of t 6 acquisition of Louisiana by the United States, and that Dodier was in possession of it, and an inhabitant of the village. . follows that the confirmation became complete, and veste m him a legal title, valid against the United States, and all Per sons claiming under it by a subsequent patent, unless his case p. 83was taken out of the enacting clause by the proviso that the act shall not affect any confirmed claims to the same lands. How “ affect ” them ? If in the sense of simply acting upon them, then his title is excepted from the operation of the act. But this exception is not within the reason of the proviso, and the court is at liberty to adopt another construction, if it may be fairly done, by giving full and just effect to the words used.
The general rule of law is, that a proviso carves special exceptions only out of the body of the act; and those who set up any such exception must establish it, as being within the words as well as the reason thereof. United States v. Dickson, 15 Pet. 165. Why should Congress wish to exclude Dodier’s title, if it did not conflict with any other, and was embraced by the general words of the statute ? If it was left incomplete by the act of 1807, and completed by the act of 1812, there was certainly no reason for excluding it. It was within the power of Congress to favor the inhabitants of villages over other claimants; and the fact that he had documentary evidence of his title to this out-lot, which the commissioners recognized and approved, affords no ground for supposing that Congress meant to deprive him of the benefit of another law dispensing with this evidence, and still meeting the requirements of his case. This would lead to unjust consequences; for it would discriminate between villagers, and put claims, supported by paper-title with possession, on a less favored footing than those resting only on cultivation and possession. Besides, such a purpose is inconsistent with the avowed object of the law, which is to confirm to the villagers, without discriminating in favor of any class, their rights of property, whether held in severalty or in common. If Congress had intended to exclude confirmed claims, the fair presumption is, that it would have, in terms, excepted them, or y some form of words declared their exclusion. But common airness required that successful claimants before the board of commissioners should, in any event, be protected, and that the general words of the law should be so limited as not to produce aconflict of title. It would have been wrong, in legislating for ^oeJU a^ants of ancient villages, to do any thing prejudicial ose who, having been invited to present their claims to the p. 84board, had obtained its approval of them. This was recognized by Congress; and, to guard against the possibility of conflict, the proviso was inserted. No known rule of law requires us to interpret it according to its literal import, when its evident intent is different. It may be that the words, taken in their usual sense, would exclude the case of Dodier; but if it can be gathered, from a view of the whole law, and others in pari materia, that they were not used in that sense, and if they admit of another meaning in perfect harmony with the general scope of the statute, it will be adopted as the declaration of the will of Congress. Especially is this so when this construction withdraws the least number of cases from the operation of the statute. It is unnecessary to give the various definitions of the word “ affect.” It is enough to say, that it is often used in the sense of acting injuriously upon persons and things; and in this sense, we are all of opinion, it was used in this proviso. This interpretation accords with the reason and manifest intent of the proviso. It unsettles no confirmed title, and secures to the inhabitants of the villages, according to their respective rights, the protection which Congress in its wisdom thought proper to afford them.
If there were any doubt remaining about the correctness of this construction, it would be removed by a consideration of the act of 1807, which is in pari .materia. The various laws, from time to time passed respecting the claims to lands in the Terri tories of Orleans and Louisiana, were modified as policy required; but they constitute a land system, are all in pan materia, and, in explaining their meaning and import, are to be regarded as one statute. Patterson v. Winn, 11 Wheat. Wo. The third section of the act of 1807 (2 Stat. 440) confirms the claim of the corporation of the city of New Orleans to e commons adjacent to the city, and provides, that herein contained shall be construed to affect or impair the rights of any individual or individuals to the said commons which are derived from any grant of the French or Pa“ governments.” The word “ impair is droppe rom viso in the act of 1812, doubtless because it wasi deemes s f* fluous and unnecessary. There was no reason w y e * provisos should have different limitations. Both had a
object, — to protect individual rights and prevent conflict of titles. The grants of the New Orleans commons, in the one case, and of the village lots in the other, were simply on the condition that no adverse claimant should be injured by them. If it should turn out that any one was benefited by the grant, he was not barred from availing himself of it because he had given another title in evidence before a regularly constituted board of commissioners.
Strother v. Lucas, 12 Pet. 410, is cited by the plaintiffs as an authority in this case ; but it can hardly be considered in that light. It is true that the court treat Lucas’s title as “ being a grant by the United States, under the confirmation of the commissioners and the act of 1812; ” but the effect which that act has on a lot confirmed by the commissioners was not discussed at the bar, or considered in the opinion, nor has it, to our knowledge, been heretofore decided by this court.
It is claimed that the effect of the partition suit is to estop the defendants from setting up title to lands which were not assigned to Labeaume by the commissioners in partition. But the lines of partition were incorrect; for the court finds that the land in controversy is a part of that conveyed to Labeaume by deed from Dodier, and is not within the boundaries o the land set off to him. Besides, neither party recognized the proceedings in partition as binding; nor were they at all necessary, as the deed calls for the whole estate in a specified part of a tract of land. In such a case, the deed ought to and must control the rights of the parties.
It is unnecessary to notice any other assignments of error, for ese views dispose of the whole case, and affirm the judgment 0 t e Circuit Court. Judgment affirmed.
Kitchen v. Randolph.
Unless an appeal is perfected, or a writ of error sued out and served within sixty days, Sundays exclusive, after the rendition of the decree or judgment complained of, it is not within the power of a justice of this court to allow a supersedeas.
On motion to vacate a supersedeas.
This is a motion by the appellee to vacate and set aside an order made by an associate justice of this court, granting the petition of the appellant for a supersedeas directing a stay of all proceedings, under a decree of the Circuit Court of the United States for the Eastern District of Pennsylvania, foreclosing a mortgage on property of the Wilmington and Reading Railroad Company, and ordering a sale of the same.
The bill for the foreclosure and sale was filed by Randolph, as holder of coupon-bonds of that company, secured by a certain deed of trust and mortgage against the company, the trustees named in the deed and two other junior mortgages, and the Baltimore, Philadelphia, and New York Railroad Company, as original defendants.
Subsequently, Kitchen, a bondholder under a junior mortgage of the Wilmington and Reading Railroad Company, was allowed to intervene as a defendant and file an answer.
The case was heard on the bill, the answers of the original defendants, and that of Kitchen ; and, on the 6th of June, 1876, the court below entered a decree foreclosing the mortgage as against certain of the property and franchises covered by it, and ordering a sale by the trustees, after due advertisements for three months prior to the day of sale.
The sale was accordingly fixed by due advertisements, as prescribed by the decree, for the 2d of October, 1876.
No appeal from this decree, or any part of it, was piayed in the court below by any of the defendants ; but, on the 29th o September, 1876, the appellant filed his petition for the allowance of an appeal and for a supersedeas, both of which were allowed on that day by the associate justice, and a citation addressed to the complainant below, returnable on the first ay of the present term of this court, was issued.
The motion was argued by Mr. J. Hubley Ashton for the appellee, and by Mr. Samuel Dickson and Mr. Wayne Mac Veagh for the appellant.
Me. Chief Justice Waite delivered the opinion of the court.
The only question presented by this motion is as to the power of a justice of this court to allow a supersedeas in cases where an appeal was not taken or a writ of error sued out and served within sixty days, Sundays exclusive, after the rendition of the decree or judgment complained of.
The Judiciary Act of 1789 (1 Stat. 84, sect. 22) made provision for a review by this court of judgments and decrees in civil actions and suits in equity in the circuit courts upon writs of error accompanied by a citation to the adverse party, “signed by a judge of such circuit court or justice of the Supreme Court.” By the same section it was further provided, that “ every justice or judge, signing a citation on any writ of error as aforesaid, shall take good and sufficient security, that the plaintiff in error shall prosecute his writ to effect, and answer all damages and costs if he fail to make his plea good.”
The citation was essential to the validity of the writ, and without it the writ would be quashed. Lloyd v. Alexander, Cranch, 365. The writ brought up the record, and the citation the parties. Cohens v. Virginia, 6 Wheat. 410; Atherton v. Lowler, 91 U. S. 146. As the security was to be given when t e citation was signed, there could be no valid writ without the security.
At common law, a writ of error was a supersedeas by implication. Bac. Abr., tit. Supersedeas, D, 4. To avoid the effect t is rule, the act of 1789 (1 Stat. 85, sect. 23) provided that a writ of error “ shall be a supersedeas, and stay execution in ases only where the writ of error is served, by a copy thereof eing lodged for the adverse party in the clerk’s office where re^^01^ rema^ns’ within ten days, Sundays exclusive, after and judgment or passing the decree complained of; ” in cases where a writ of error might be a supersedeas no ution could issue for ten days.
Under this section it was held, in Hogan v. Hoss, 11 How. 297, that there was no authority “ to award a supersedeas to stay proceedings on the judgment of an inferior court upon the ground that a writ of error is pending, unless the writ was sued out within ten days after judgment and in conformity with the provisions of the ” act; and in Railroad Co. v. Harris, 7 Wall. 575, that the effect of the writ as a supersedeas “depends upon compliance with the conditions imposed by the act,” and that “ we cannot dispense with that compliance in respect to lodging a copy for the adverse party.”
The stay of proceedings followed as a matter of right from the issue and service of the writ of error, in the manner and within the time prescribed by the act. No special directions as to the security were necessary, because, under the law as it originally stood, security must be given in all cases when the writ was issued, that the plaintiff in error would prosecute his writ to effect, and answer all damages and costs if he failed to make his plea good. It soon became manifest, however, that, in cases where there was to be no supersedeas, security to this extent was unnecessary; and, consequently, in 1794, it was enacted (1 Stat. 404) “ that the security to be required and taken on the signing of a citation on any writ of error, which shall not be a supersedeas and stay execution, shall be only to such an amount as, in the opinion of the justice or judge taking the same, shall be sufficient to answer all such costs as, upon an affirmance of the judgment or decree, may be adjudged or decreed to the respondent in error.” After this the form of the security became material, and the supersedeas was made to depend upon the condition of the bond executed at the time of the signing of the citation, as well as upon the prompt issue and service of the writ. Rubber Co. v. Goodyear, 6 Wall. 156; Slaughter-house Cases, 10 Wall. 289, 291. .
In 1803 appeals were granted in cases of equity and ot admiralty and maritime jurisdiction, and made “subject to t same rules, regulations, and restrictions as are prescribed in a in case of writs of error.” 2 Stat. 244, sect. 2. It has accor mg; y been held that an appeal to operate as a supersedeas mustme perfected and the security given within ten days rendition of the decree. Adams v. Law, 16 How. 5
kins v. Kemp, 18 id. 535; French v. Shoemaker, 12 Wall. 100; Bigler n. Walker, id. 149. The allowance of the appeal is the equivalent of the writ of error.
It thus appears that, under the statutes which regulated the early practice, a supersedeas could not be obtained except by prompt action and strict compliance with all the requirements of the law. Parties were, however, not unfrequently put to serious inconvenience by so stringent a rule; and, to avoid this, it was enacted in 1872 (17 Stat. 198, sect. 11) “ that any party or person desiring to have any judgment, decree, or order of any district or circuit court reviewed on writ of error or appeal, and to stay proceedings thereon during the pendency of such writ of error or appeal, may give the security required by law therefor within sixty days after the rendition of such judgment, decree, or order, or afterward, with the permission of a justice or judge of the appellate court.” In Telegraph Company v. Kyser, 19 Wall. 419, we held, in reference to this statute, that where an appeal was taken and the requisite security given after the expiration of ten days, but within sixty, a supersedeas followed as a matter of right. In the course of the opinion in that case it was said : “ It is expressly declared that the supersedeas bond may be executed within sixty days after the rendition of the judgment, and later, with the permission of the designated judge. It is not said when the writ of error shall be served. Its issuance must, of course, precede the execution of the bond; and, as the judge who signs the citation is still required to take the bond, we think it is sufficiently implied that it may be served at any time before, or simultaneously with, the filing of the bond. Indeed, the giving of the bond alone is made the condition of the stay. The section is silent as to the writ. . . . The execution, approval, and filing of the ond are substantial. The filing of the writ is matter of form.” In Board of Commissioners v. Corman, 19 Wall. 661, decided at t e same term, we further held, that execution might issue obt6r ten days, if a supersedeas had not been ame ; but, if one should issue, and a supersedeas be thereafter u deC^^’ w°uld only operate to stay further proceedings r t e execution, and could not interfere with what had already been done.
In this condition of the law the Revised Statutes were adopted, and sect. 1007 is as follows: —
“ In any case where a writ of error may be a supersedeas, the defendant may obtain such supersedeas by serving the writ of error, by lodging a copy thereof for the adverse party in the clerk’s office where the record remains, within sixty days, Sundays exclusive, after the rendering of the judgment complained of, and giving the security required by law on the issuing of the citation. But if he desires to stay process on the judgment, he may, having served his writ of error as aforesaid, give the security required by law within sixty days after the rendition of such judgment, or afterward, with the permission of a justice or judge of the appellate court. And in such cases where a writ of error may be a supersedeas, execution shall not issue until the expiration of the said term of sixty days.”
At the next session of Congress, an amendment to this section was passed, limiting the time for withholding execution to ten days. 18 Stat. 318. By sect. 1012, Rev. Stat., that part of the act of 1803 (2 Stat. 244) which placed appeals on the same footing as writs of error was re-enacted, and, by sect. 1000, provision was made for security for costs only in cases where no supersedeas was desired, thus reproducing the old law on that subject.
It is evident that Congress intended in this revision to change to some extent the law of 1872. The fair inference from the opinion in Telegraph Company v. Eyser, is, that as that law “ was silent as to the writ,” and “ it was not said when it must be served,” a supersedeas could be obtained by the execution, approval, and filing of the necessary security, even though the writ of error should not be served or the appeal taken unti after the expiration of sixty days. In this way the old rule requiring promptness of action to obtain a stay of proceedings was substantially abandoned. A justice or judge could, in his discretion, grant the stay at any time, if the writ shoul be issued and served within the two years allowed for that purpose. „ . ., .
The revised section is not “silent as to the writ, an i “said when it must be served.” If a supersedeas is asked or when the writ is obtained, the writ must be sued out andL serve within the sixty days, and the requisite bond execute w
citation is signed. The policy of the old law is thus restored, the only modification being in the extension of time allowed for action. Sixty days are given instead of ten.
Had the section stopped here, a plaintiff in error or appellant would have been compelled to elect, when he sued out his writ of error, or took his appeal, whether he would have a supersedeas or not; because it is made one of the conditions of the stay of proceedings that the requisite security shall be given upon the issuing of the citation. Having once made his election, he would be concluded by what he had done. But Congress, foreseeing undoubtedly that cases might arise in which serious loss would result from such a rule, went further, and, in a subsequent part of the section, provided, that if a writ of error had been served, as required in the first paragraph, a stay might be had as a matter of right by giving the required security within sixty days, and afterwards, as a matter of favor, if permission could be obtained from the designated justice or judge. Thus prompt action in respect to the writ was required, and indulgence granted only as to the security. '
t is contended, however, that the words “ having served his writ of error as aforesaid,” as used in this part of the section, ave reference to the manner of service alone; that is to say, by odging a copy thereof for the adverse party in the clerk’s office, w ere the record remains, and not to the time, sixty days. But ime is one of the necessary ingredients in the prescribed service o secure a supersedeas under the provisions of the first part of e section. It cannot be dispensed with there any more than cou d have been under the act of 1789; and under that act, as een seen, it was essential. In fact, it was the one thing p n w jch, more than all others, the relief sought for depended.
as ^rosaid. ’ must, therefore, mean such a service as • iJ6 the stay, if the proper security had been Wli *S extended only in respect to the security. °f Con^ a^erwar<^s occurred is equally indicative of the intention could -greSS' As the section originally stood, no execution until thSSUe, .W^?n wr^ error might be a supersedeas incr a exPlration of sixty days, the time allowed for perfected ser^d^^ leave. If the writ had been issued erve withotft the security required for a supersedeas, p. 92execution must still be withheld until the time had elapsed within which the further security might be given as a matter of right. This changed the law from what we held it to be in Commissioners v. Gorman, and at once, upon the discovery of the effect of what had been done, the amendment was adopted limiting the time to ten days, as it originally stood. Nothing was done, however, towards adapting the section as revised to the liberal construction of the act of 1872, indicated in Telegraph Company v. Eyser.
We are, therefore, of the opinion, that, under the law as it now stands, the service of a writ of error, or the perfection of an appeal within sixty days, Sundays exclusive, after the rendering of the judgment or the passing of the decree complained of, is an indispensable prerequisite to a supersedeas, and that it is not within the power of a justice or judge of the appellate court to grant a stay of process on the judgment or decree, if this has not been done.
The appeal was taken in this case after the expiration of sixty days, and the motion to vacate the supersedeas must for that reason be granted. Motion granted.
Dresser v. Missouri and Iowa Railway Construction
Company.
A bona fide holder of negotiable paper, purchased before its maturity upon an unexecuted contract, on which part payment only had been made when he received notice of fraud, and a prohibition to pay, is protected only to the amount paid before the receipt of such notice. Error to the Circuit Court of the United States for the District of Iowa.
Submitted on printed arguments by Mr. James Grant for t e plaintiff in error, and by Mr. George G. Wright, contra.
Mr. Justice Hunt delivered the opinion of the court.
This action is brought upon three several promissory notes made bv the Missouri and Iowa Railway Construction Company, dated Nov. 1,1872, payable at two, three, and four months, to the order of William Irwin, for the aggregate amount of $10,000.
The defence is made that they were obtained by his fraudulent representations.
But a single point requires discussion. Conceding that the present plaintiff received the notes before maturity, and that his holding is bona fide, the question is as to the amount of his recovery.
Under the ruling of the court he recovered $500. His contestation is, that he is entitled to recover the face of the note, with interest.
After the evidence was concluded, the plaintiff asked the court to charge the jury, that if they believed, from the evidence, that the plaintiff purchased the notes in controversy of William Irwin for a valuable consideration, on the 1st of November, 1872, and paid $500, part of the consideration, on 21st of January, 1873, before any notice of any fraud in the contract, he was entitled to recover the whole amount of the notes; and the court refused this instruction. But the court charged the iury,—
“ That, in the first place, the jury must find that there was fraud in the inception of the notes as alleged; and that if the defendants failed to satisfy the jury of that fact, the whole defence fails.
That if the fact of fraud be established, and the jury find rom the evidence that the plaintiff paid $500 upon the notes without notice of the fraud, and that after receiving notice of t e fraud the plaintiff paid the balance due upon the notes, he is protected only pro tanto; that is, to the amount paid before he received notice.”
t does not appear that, upon the purchase of the notes in 1 t e plaintiff gave his note or other obligation which might t^h 8 ^nS^er subject him to liability. His agreement seems ave een an oral one merely, — to pay the amount agreed Pon, as should be required; and he had paid $500, and no more, n notice of the fraud was brought home to him. paper ar^amen^ ^he plaintiff in error is that negotiable and t] S°^ ^°r suc^ sum as parties may agree upon, entire a ' W e^er such sum is large or small, the title to the plainr# ?e i ?aSSeS purchaser. This is true; and if the a ought the notes in suit for $500, before maturity p. 94and without notice of any defence, and paid that sum, or given his negotiable note therefor, the authorities cited show that the whole interest in the notes would have passed to him, and he could have recovered the full amount due upon them. Fowler v. Strickland, 107 Mass. 552; Park Bank v. Watson, 42 N. Y. 490; Bank of Michigan v. Green, 33 Iowa, 140. The present case differs from the cases referred to in this respect. The notes in question were purchased upon an unexecuted contract, upon which $500 only had been paid when notice of the fraud and a prohibition to pay was received by the purchaser. The residue of the contract on the part of the purchaser is unperformed, and honesty and fair dealing require that he should not perform it; certainly, that he should not be permitted, by performing it, to obtain from the defendants money which they ought not to pay. As to what he pays after notice, he is not a purchaser in good faith. He then pays with knowledge of the fraud, to which he becomes a consenting party. One who pays with knowledge of a fraud is in no better position than if he had not paid at all. He has no greater equity, and receives no greater protection. Such is the rule as to contracts generally. In the case of the sale of real estate for a sum payable in instalments, and circumstances occur showing the existence of fraud, or that it would be inequitable to take the title, the purchaser can recover back the sum paid before notice of the fraud, but not that paid afterwards. Barnard v. Campbell, 53 N. 73; Lewis v. Bradford, 10 Watts, 82; Juvenal v. Jackson, 2 Harris, 529; id. 430; Youst v. Martin, 3 S. & R- 423, 430.
In Weaver v. Barden, 49 N. Y. 291, the court use this an guage: “ To entitle a purchaser to the protection of a court o equity, as against a legal title or a prior equity, he mus^ n0 only be a purchaser without notice, but he must be a purchaser for a valuable consideration; that is, for value pai. ere man purchases an estate, pays part and gives bon s or due, notice of an equitable incumbrance before P^" “e money, though after giving the bond, is sufficient. Naish, 3 P. Wms. 306; Story v. Lord Windsor, 2 ■ Mere security to pay the purchase price is no a pure: valuable consideration. Hardingham v. uto s, Maundrell v. MaundreU, 10 Ves. 246, 271; Jackson v. CadWt
1 Cowen, 622; Jewell v. Palmer, 7 J. C. 65. The decisions are placed upon the ground, according to Lord Hardwicke, that if the money is not actually paid the purchaser is not hurt. He can be released from his bond in equity.”
The plaintiff here occupies the same position as the bona fide purchaser of the first of a series of notes, of which, after notice of a fraud, he purchases the rest of the series. He is protected so far as his good faith covers the purchase, and no farther.
Upon receiving notice of the fraud, his duty was to refuse further payment; and the facts before us required such refusal by him. Authorities supra.
Crandell v. Vickery, 45 Barb. 156, is in point. Holdridge had obtained the indorsement by Vickery of his (Holdridge’s) notes by false and fraudulent representations. These notes were transferred to Crandell without notice or knowledge of the fraud, he giving to Holdridge several checks for the amount, upon the understanding that they were not to be presented for payment, but when the money was wanted, he was to give new checks as needed. Before giving the new checks, plaintiff was informed of the fraud, and requested not to make payment, or to give his c ecks. He did, however, give his new checks, according to the original agreement, and brought suit upon the notes against Vickery, the indorser.
t was held that he was not a bona fide holder, for the reason t at the transaction was executory when he received notice of t e fraud; that he had then parted with no value; that the rea obligations were given afterwards, and under circumstances that afforded no protection. . That case is stronger for the holder than the one before us, u t e fact that checks were there given on the original transac ion, which might have been presented or passed off to the pre]u ‘ce of the maker; while here the transaction was oral throughout. wh + rfw same purport in principle, although upon facts some-9 a i erent, are the cases of G-arland v. The Salem Bank, 562 S8^i Pulton Bank v. The Phoenix Bank, 1 Hall,
a not °a^eS are — that where a bona fide holder takes misappropriated, fraudulently obtained, or without p. 96consideration, as collateral security, he holds for the amount advanced upon it, and for that amount only. Williams v. Smith, 2 Hill, 301.
In Allaire v. Hartshorn, 1 Zabr. 663, the case was this: Hartshorn sued Allaire on a note of $1,500 at ninety days, made by Allaire. It was proved that the note had been misapplied by one Pettis, to whom it had been entrusted; that he had pledged it to the plaintiff as security for $750 borrowed of him on Hegeman’s check, and also as security for a $400 acceptance of another party then given up to Pettis.
On the trial, the court charged the jury, that, if any consideration was given by the plaintiff for the note, “ they should not limit their verdict to the amount so given, but should find the whole amount due on the face of the note.” The case was carried to the court of errors and appeals of the State of New Jersey, upon an exception to this charge. The court reversed the judgment, holding that, although a bona fide holder, Hartshorn could recover only the amount of his advances.
The case before us is governed by the rule that the portion of an unperformed contract which is completed after notice of a fraud is not within the principle which protects a bona fide purchaser.
No respectable authority has been cited to us sustaining a contrary position, nor have we been able to find any. The judgment below is based upon authority, and upon the soundest principles of honesty and fair dealing, It has our concurrence, and is affirmed.
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