Coffin v. Haggin
Coffin v. Haggin
Opinion of the Court
On April 15, 1880, one Bonestell conveyed to the complainant, Coffin, a citizen and resident of New York city and state, 1,920 acres of land, worth, according to his estimate, about $20,000-— the expressed consideration being $10; but no consideration was in fact paid. The deed was not recorded. On the same day Mr. Stebbins also conveyed 1,280 acres in the same vicinity to the same party, costing and worth about $10 per acre, including some $6 per acre
The testimony upon the issues raised by these pleas, and the replications, is mainly that of Bonestell and Stebbins. Neither Coffin nor the attorney who managed the transaction was examined. Bonestell testifies — and the testimony of Stebbins is substantially the same— that he never saw or knew Coffin; that he made the conveyance by the advice of Bedington for the purpose of beginning this suit; Stebbins’ testimony is by advice of counsel; that no consideration was paid; that there was no agreement to reconvey, but he did not know but that he might get it back; that he expected he was to get it back some time, but not a word was said about getting it back; that it was said to him that an absolute deed was necessary without agreement to reconvey to give jurisdiction; that he was advised it was necessary to make an absolute transfer, and he made it; that the purpose was to bring this suit; that he hoped some time to get it back, but could not claim it; that he trusted entirely to Coffin’s generosity, because it was considered one of those cases where it was necessary to make such a deed; that the attorney in the case, Mr. Stetson, told him that the deed was at the notary’s, and he went there and executed it, and left it there to be called for; that he understood Mr. Coffin was in New York; that he never got the deed again, and don’t know what became of it; that he intended it for Mr.
Mr. Redington, who verifies the bill as the attorney in fact of Coffin, says that he knows Coffin; has heard about these deeds, but does not remember having ever seen them; has never had any conversation with Coffin upon the subject of the land; did not suggest to the grantors the making of the deeds; had nothing to do with making the deeds; had no conversation about the deeds, but received a telegram from Coffin requesting him to sign, as his attorney in fact, the papers in Stetson & Houghton’s hands, referring as he supposed to the bill in equity in this ease, which he accordingly did sign; that he has held a power of attorney from Coffin for several years. From other testimony it seems that Coffin is a partner of Mr. Redington in a New York firm of which Redington is a member. Mr. Stetson, solicitor of complainant, produced the deeds on request of defendants’ solicitors. A clerk in the office of Mr. Stetson testified that by direction of Mr. Stetson he mailed the deeds to Mr. Coffin, at New York, on April 15th, in a registered letter, and in due course of mail, about tho second or third of May, got a post-office receipt therefor. It does not appear what communication, if any, was made with the deeds; or what response, if any, to the communication was received from Mr. Coffin.
Whether the counsel, under whose advice these Iiighly-important transactions were had, made any arrangement with Coffin on behalf of the parties in interest not communicated to them, and if so, what arrangement or what communication was had between them upon the subject of the conveyances and suit, does not appear. Whatever occurred — and in view of the great importance of the steps taken it is natural to suppose that something must have transpired — it is but fair to presume that what did take place between them would not strengthen the complainant’s position, for it was important for him to make as strong a case on the pleas as possible. Had those facts been favorable to his view, as they were wholly under complain
Thus, to state the facts in the strongest light in favor of the complainant or complainants, as the case may be, whether nominal or real, I think it clearly appears from the evidence that the grantors, Bonestell and Stebbins, were desirous of bringing a suit in the United States courts to determine their rights to the waters of Kern river ; and the United States courts not having jurisdiction over either the subject-matter or the parties, they set about devising some plan by which a case of jurisdiction could be made; that their counsel, Messrs. Stetson & Houghton, advised them that 'the object could be accomplished by making an absolute conveyance to a citizen of some other state, then bring and prosecute the suit in his name, but that in order not to defeat the jurisdiction it would be necessary to avoid making any agreement for a reconveyance; that it would be necessary to rely upon the honor of the grantee to reeonvey the land; that Mr. Coffin’s name was suggested by some one, it does not clearly appear by whom, and accepted; that the deeds were prepared by the counsel, sent to a notary for execution, and the parties notified to go and execute them, which they did, and left the deeds to be handed to Mr. Stetson, and that they subsequently came to his possession; that he caused them to be sent to Mr. Coffin, and immediately upon their receipt, this being the first intimation, so far as appears, to Coffin of the making of these deeds, he, Coffin, telegraphed to JEtedington to sign, as his attorney in fact, the bill in equity prepared by Stetson, which he accordingly did, and the bill in this case was thereupon filed ten days after the date of the execution of the deeds; that Bonestell thus deeded voluntarily, without consideration, to an entire s.tranger, whom he had never seen or known, and who had no interest whatever in the matter, property of the value of $20,000, for the very purpose of making a case of jurisdiction in this court, taking special care not to communicate with him on the subject, and especial care that no one should make any assurance or intimation of any reconveyance ; and Stebbins, in like manner and with like precaution, for the same express purpose, conveyed property of the val we of more than $12;-000; that the sole purposes of the said grantors in making the conveyance was to prosecute their contemplated suit in the name of Gof
There can be no possible doubt that this is in fact, whatever it may be in form and appearance, the suit of Bonestell and Stebbins, for their owm use and benefit, and that the conveyance and prosecution of the suit in another’s name are only colorable and collusive. It is no less so because the agreement and co-operation are tacit and not express. The fact that the conveyances were made by the grantors for their own purposes of bringing and prosecuting the suit, without even the knowledge of the grantee, and that iho grantee immediately, without delay or hesitation, carried out that special purpose upon receiving information of their act and design, shows an assent to their act, a co-operation in their purpose, and further shows that parties have been “collusively made, for the purpose of creating a case cognizable * * * in the said circuit court,” and “that such suit does not really and substantially involve a dispute or contro
The decision of the supreme court at the present term, in Williams v. Town of Nottawa, shows that that act has an important bearing upon this question, which must now be considered. In that case the court, by the chief justice, says:
“ But whatever may have been the practice in this particular under the act oí 1789, there can be no doubt what it should be under tlie act of 1875. In extending a long way the jurisdiction of the courts of the United States, congress was specially careful to guard against the consequences of collusive transfers to make parties, and made it the duty of the court, on its own motion, without waiting for the parties, to stop all further proceedings and dismiss the suit the moment anything of the kind appeared. This was for the protection of the court as well as the parties against fraud upon its jurisdiction; for, as was very properly said by Mr. Justice Miller, speaking for the court, in Barney v. Baltimore, supra, ‘ such' transfers for such purposes are frauds upon the court, and nothing more.’ * * * Inasmuch, therefore, as it was the duty of the circuit court, on its own motion, as soon as the evidence was in, and the collusive character of the case shown, to have stojjped all further proceedings and dismissed the suit, the judgment is reversed and the cause remanded, with instructions to dismiss the suit at the cost of the plaintiff! in error, because it did not really and substantially involve a dispute or controversy within the jurisdiction of the court. * * * In this connection we deem it proper to say that this provision of the act of 1875 is a salutary one, and that it is the duty of the circuit courts to exercise their power under it in proper cases.”
I therefore find the plea to be true, and that defendants are entitled to have the bill dismissed for want of jurisdiction, and it is so ordered.
Reference
- Full Case Name
- Coffin v. Haggin and others
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