Case details
Citation
98 U.S. 470
Full caption
Amy v. Dubuque.
Country
United States
Jurisdiction
Federal
Court
Supreme Court of the United States
Majority
Harlan (Justice)
Amy v. Dubuque.
The Statute of Limitations of Iowa begins to run against coupon interest warrants from the time they respectively mature, although they remain attache to the bond which represents the principal debt.
Error to the Circuit Court of the United States for the District of Iowa.
The facts are stated in the opinion of the court.
Submitted on printed arguments by Mr. James G-rant for the plaintiff in error, and by Mr. 0. P. Shiras for the defendant in error.
Mr. Justice Harlan delivered the opinion of the court.
The question of limitation presented for our consideration upon this writ of error depends for its solution upon the sta utes of Iowa. “ It is not to be questioned,” said this court i Hawkins et al. v. Barney's Lessee (5 Pet. 457), “that laws iting the time of bringing suit constitute a part of the lex of every country: they are laws for administering justice,
of the most sacred and important of sovereign rights.” McElmoyle v. Cohen, 13 Pet. 312.
It as is little to be questioned that “ the courts of the United States, in the absence of legislation upon the subject by Con gress, recognize the statutes of limitations of the several States, and give them the same construction and effect which are given by the local tribunals.” Leffingwell v. Warren, 2 Black, 599 ; Green v. Lessee of Neat, 6 Pet. 291; Harpending v. The Dutch Church, 16 id. 455; Davie v. Briggs, 97 U. S. 628.
Guided by these established rules, we proceed to the consideration of the question before us, in the light both of the statutes of Iowa and of the construction given to them by the highest court of that State.
Our first inquiry is as to the cause of action set out in the petition. The plaintiff in error seeks to recover the amount of sundry interest-coupons annexed to bonds issued by the city of Dubuque in 1857, in payment of a subscription to the capital stock of a railroad company. The bonds are in the usual form of municipal securities, and were made payable on the 1st of January, 1877, at a bank in the city of New York, together with interest thereon at the rate of ten per cent per annum, payable semi-annually on each first day of July and January, on the presentation and surrender of the coupons at such bank as they should respectively become due by the terms thereof. Each bond was secured by a pledge of the shares of stock received in exchange therefor; and the stock pledged was placed in t e hands of authorized trustees, who were empowered and required, at the request of the holder of the bond, and when ie city was in default in the payment of either principal or interest, or any part thereof, to sell it, at public or private sale, ischarge of the unpaid principal or interest. The coupons ue on had not, at the institution of this action, been severed
^°n^S which they were annexed. Judgment is e or the several instalments of interest, with interest on teCfl ln^a^men^ fr°m the time it became due. The city contation aC^°n *8 h^rred by the Iowa Statute of Limis- n that view the circuit judge concurred, and judgment was rendered for the city. * code of Iowa declares that actions “ founded on written p. 472contracts ” may be brought within ten years “ after their causes accrue, and not afterwards.” Code of 1873, sect. 2529. Such had been the law of that State for many years prior to the adoption of the code of 1873. We find the same provision in the code of 1851. Code of 1851, sect. 1659. What actions are founded on written contracts, and when causes of action accrue, within the meaning of the Iowa code, may be gathered from decisions of the Supreme Court of that State. The earliest decision to which we are referred is Bahr v. Arndt, 9 Iowa, 39. That was the case of a mortgage executed to secure a note payable ten years after date, with interest, at the rate of ten per cent per annum from date, payable annually. The court held that a foreclosure could be had before the maturity of the note for an instalment of interest due. In Mann v. Cron (9 id. 327), which was a suit to foreclose a mortgage, given to secure a note bearing ten per cent interest, payable annually, the court said: “Was he [the mortgagee] entitled to six per cent interest upon the interest annually due? We think he was. The respondent was under a legal obligation to pay this interest at the end of the year; it was a sum of money then due, without a contract fixing the rate of interest upon it, and for which he might have been sued. He was, therefore, bound to pay its legal value, which by our law, in the absence of a written agreement reserving more, is fixed at six cents on the hundred.” Hershey v. Hershey (18 id. 2 ) was the case of a written agreement to purchase an interest m mill property at a valuation by appraisers, and “ to pay t e principal sum of such purchase on or before five years from the date of the appraisement, and in the mean time to pay in terest for the full sum at the rate of seven per cent per annum, the interest to be paid semi-annually.” It was held that an action at law could be maintained for any unpaid semi-annua instalment of interest. Said the court: “ The payment of in terest periodically is expressly stipulated for, and for a breae of this contract plaintiff may recover, just as clearly as foi non-payment of an instalment of principal. By their ment the parties have made this interest, when it matures, n simply an incident of the debt, but pro tanto the debt its And plaintiff was not, therefore, bound to wait the expira p. 473of the five years from the date of the award to recover for the semi-annual instalment of interest.” The court said further: “The plaintiff sues at law for the interest precisely as if he had separate notes for the same, and as he might do in case of an ordinary bond.” To the same general effect is Preston v. Walker, 26 id. 205. In the subsequent case of Baker n. Johnson County (33 id. 151), the inquiry arose as to the time when limitation commenced to run upon a contract whereby Baker was employed to render services in behalf of the county in connection with its claim against the general government for swamp-land money and land scrip. The court held that Baker had a right of action from the date when his services were completed, and that his cause of action accrued at that date. Callanan v. The County of Madison (45 id. 561) was an action to recover back taxes which had been improperly exacted. The defence of limitation being interposed, the court said that “ the cause of action accrues at the very moment of payment of the taxes, if at that time the tax was erroneous or illegal. The right of the plaintiff and the liability of the county do not depend upon the future acts to be done or suffered by either; their relation as creditor and debtor is fixed by the illegality of the tax.”
It seems from these authorities to be the settled law of Iowa: 1st, That where interest is, by contract, made payable at stated times, an action may be maintained therefor in advance of the maturity of the principal debt, and legal interest upon such interest recovered. 2d, That within the meaning of the Iowa tatute of Limitations the cause of action accrues when suit may be commenced for the breach of such contract. Both of t ese propositions are in line with the former decisions of this court. . We have held in numerous cases not only that suit may e maintained upon unpaid coupons, in advance of the maturity th and without producing the bonds, but that e older of such coupons is entitled to recover interest thereon om their maturity. Commissioners of Knox County v. Aspin-
21 H°W‘ 639 5 adPc1ee v* Oity of Dubuque, 1 Wall. 14 a 9 V' ^amson'> $ 5 ^y of Lexington v. Butler, ld-282; Clark v. Iowa City, 20 id. 583; Town of Genoa n.
ruff, 92 U. S. 502. This court has also had occasion to p. 474consider the question as to when, upon principle, limitation commences to run. In TRZcoa? v. Plummer's Executors (4 Pet. 172), it was said: “ The ground of action here is a contract to act diligently and skilfully; and both the contract and the breach of it admit of a definite assignment of date. When might this action have been instituted is the question ; for from that time the statute must run.” Angell, Limitations, sect. 42; 2 Saunders, Pl. and Evid. 309.
This action is, beyond question, founded upon written contracts. The coupons in suit matured more than ten years prior to its commencement. Upon the non-payment, at maturity, oi each coupon, the holder had a complete cause of action. In other words, he might have instituted his action to recover the amount thereof at their respective maturities. From that date, therefore, the statute commenced to run against them. The premises conceded, as they must be, there is no escape from the conclusion stated.
But it is insisted that this conclusion is in conflict with the former decisions of this court in The City v. Lamson, supra; City of Lexington v. Butler, supra; and Clark v. Iowa City, supra. In this counsel are mistaken. They misapprehend altogether the doctrines settled in those cases. The first arose under the Wisconsin Statute of Limitations, while the second involved the construction of a Kentucky statute. The decisions in those cases, as we declared in the third case, only establishe the doctrine that coupons were not mere simple contracts, but, under the local statutes of particular States, were to be re garded as specialties and separate contracts, like the bonds to which they are attached. After an examination of the pre ceding cases, we said that “it was not the intention of the court to decide that an action upon a coupon, detached from the bond, and negotiated to other parties, was not subject to the same limitations as an action upon the bond itself; muc less to hold that the coupons remained a valid and subsisting cause of action not only for the period prescribed for action on the bond after its maturity, but for the additional perio intervening between the maturity of the coupon and the ma rity of the bond, however great that might be. The 9ues / before the court in those cases was only whether the
the statute ran against the coupon was the longest or shortest period; — was it six or twenty years in the Wisconsin case, or was it five or fifteen years in the Kentucky case; — and the court held that the statute ran for the longest period, because the coupons partook of the nature of the bonds, and the statute ran for that period as to them.”
The case of Clark v. Iowa City arose under the same Statute of Limitations which is invoked by the city of Dubuque for its protection in this case. It is cited by counsel for plaintiff in error in support of the proposition that limitation, under the Iowa statute, does not commence to run against a coupon until it is detached from the bond. There are some expressions in the opinion in that case which, standing alone, would seem to sustain that construction of the statute. But it is quite obvi ous, from the whole opinion, that the conclusion reached, upon the point necessary to be decided, did not rest upon the isolated fact that the coupons sued on had become severed from the bond. It did rest, mainly, upon the ground that the coupons sued on were specialties, separate written contracts, capable of supporting actions after their maturity, without reference to the maturity or ownership of the bonds. We distinctly held that all statutes of limitation begin to run when the right of action is complete. We said: “ Every consideration, therefore, which gives efficacy to the Statute of Limitations, when applied to actions on the bonds after their maturity, equally requires that similar limitations should be applied to actions upon the coupons after their maturity.” Our answer to the specific question certified to us was, “ that the statute of Iowa, which extends the same limitations to actions on all written contracts, sea ed or. unsealed, began to run against the coupons in suit om their respective maturities.” So far, then, as that case ears upon the defence of the city, it is an express authority or t e position that the limitation of ten years prescribed by Th 8^U^e aPPH- equally to bonds and their coupons. . e on y material respect in which this case differs from that, th C0uP0ns in suit here have never been severed from th t °n S’ an^ are held by the owner of the latter, while in ase t. ey were severed from bonds which had been prey paid off. But this difference cannot logically, or in p. 476view of the Iowa decisions, affect the construction of the statute under examination. The right of the plaintiff in error to sue upon the coupons was complete after their non-payment at maturity, whether they had been previously severed or not from the bond. Upon principle, his failure or neglect to detach the coupon and present it for payment at the time when, by contract, he was entitled to demand payment, could not prevent the statute from running from that date. Such a construction of the statute would defeat its manifest purpose, which was to prevent the institution of actions founded upon written contracts after the expiration of ten years, without suit, from the time “their causes accrue; ” that is, from the time the right to sue for a breach attaches. We adhere, therefore, to our decision in Clark v. Iowa City^ that the Statute of Limitations began to run, under the Iowa statute, from the time the coupons respectively matured.
Judgment affirmed.
Harkness v. Hyde.
1
Process from a district court of Idaho cannot be served upon a defendant on an Indian reservation in that Territory. .
2
Illegality in the service of process by which jurisdiction is to be obtaine m not waived by the special appearance of the defendant to move that t e service be set aside; nor after such motion is denied, by his answering the merits. Such illegality is considered as waived only when he, wit on having insisted upon it, pleads in the first instance to the merits. Error to the Supreme Court of the Territory of Idaho. The facts are stated in the opinion of the court. Mr. Greorge H. Williams for the plaintiff in error. Mr. R. P. Lowe for the defendant in error. Mr. Justice Field delivered the opinion of the court. This was an action to recover damages for maliciously an without probable cause procuring the seizure and detentio property of the plaintiff under a writ of attachment, brought in September, 1873, in a district court of the. err of Idaho for the county of Oneida. The summons, wit VOL. VIII. -31 v
of the complaint, was soon afterwards served by the sheriff of the county on the defendant, at his place of residence, which was on the Indian reservation, known as the Shoshonee reser - vation.
The defendant thereupon appeared specially by counsel appointed for the purpose, and moved the court to dismiss the action, on the ground that the service thus made upon him on the Indian reservation was outside of the bailiwick of the sheriff, and without the jurisdiction of the court. Upon stipulation of the parties, the motion was adjourned to the Supreme Court of the Territory, and was there overruled. To the decision an exception was taken. The case was then remanded to the District Court, and the defendant filed an answer to the complaint. Upon the trial which followed, the plaintiff obtained a verdict for $3,500. Upon a motion for a new trial, the amount was reduced to $2,500; for which judgment was entered. On appeal to the Supreme Court of the Territory, the judgment was affirmed. The defendant thereupon brought the case here, and now seeks a reversal of the judgment, for the alleged error of the court in refusing to dismiss the action for want of jurisdiction over him.
The act of Congress of March 3, 1863, organizing the Territory of Idaho, provides that it shall not embrace within its limits or jurisdiction any territory of an Indian tribe without the latter s assent, but that “ all such territory shall be excepted out of the boundaries, and constitute no part of the erritory of Idaho,” until the tribe shall signify its assent to
t e President to be included within the Territory. 12 Stat. 808. J On the 3d of July, 1868, a treaty with the Shoshonee Indians was ratified, by which, among other things, that portion of the country within which service of process on the defendant was nia e in this case was set apart for their “ absolute and unS.ULe.d use an^ occupation; ” and such other friendly tribes
ividual Indians as they might be willing, with the con-sen o the United States, to admit amongst them ; the United
, 8that no persons except those mentioned, and o cers, agents, and employés of the government as might onzed to enter upon Indian reservations in discharge of p. 478duties enjoined by law, should ever be permitted “ to pass over, settle upon, or reside ” in the territory reserved, and the Indians relinquishing their title to any other territory within the United States. 15 id. 674, art. 2. No assent was given by this treaty that the territory constituting the reservation should be brought under the jurisdiction, or be included within the limits, of Idaho. Any implication even of such an assent is negatived by the terms in which the reservation is made, and it is not pretended that any such assent has been signified to the President. The territory reserved, therefore, was as much beyond the jurisdiction, legislative or judicial, of the government of Idaho, as if it had been set apart within the limits of another country, or of a foreign State. Its lines marked the bounds of that government. The process of one of its courts, consequently, served beyond those lines, could not impose upon the defendant any obligation of obedience, and its disregard could not entail upon him any penalties. The service was an unlawful act of the sheriff. The court below should, therefore, have set it aside on its attention being called to the fact that it was made upon the defendant on the reservation. The motion was to dismiss the action; but it was argued as a motion to set aside the service; and we treat it as having only that extent. The code of Idaho considers an action as commenced when the complaint is filed, and provides that a summons may be issue within one year afterwards. Had the defendant been found in Idaho outside the limits of the Indian reservation, he might during that period have been served with process.
There can be no jurisdiction in a court of a Territory to render a personal judgment against any one upon service ma e outside its limits. Personal service within its limits, or thevo untary appearance of the defendant, is essential in such cases It is only where property of a non-resident or of an absent fendant is brought under its control, or where his assent to different mode of service is given in advance, that it has jun diction to inquire into his personal liabilities or, obligate without personal service of process upon him, or his vo un appearance to the action. Our views on this su^ec^u g pressed at length in the late case of Pennoyer v. Neff ( 714), and it is unnecessary to repeat them here.
The right of the defendant to insist upon the objection to the illegality of the service was not waived by the special appearance of counsel for him to move the dismissal of the action on that ground, or what we consider as intended, that the service be set aside ; nor, when that motion was overruled, by their answering for him to the merits of the action. Illegality in a proceeding by which jurisdiction is to be obtained is in no case waived by the appearance of the defendant for the purpose of calling the attention of the court to such irregularity; nor is the objection waived when being urged it is overruled, and the defendant is thereby compelled to answer. He is not considered as abandoning his objection because he does not submit to further proceedings without contestation. It is only where he pleads to the merits in the first instance, without insisting upon the illegality, that the objection is deemed to be waived.
The judgment of the Supreme Court of the Territory, therefore, must be reversed, and the case remanded with directions to reverse the judgment of the District Court for Oneida County, and to direct that court to set aside the service made upon the defendant; and it is
So ordered.
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