Hemphill, Hamlin & Co. v. Braun
Hemphill, Hamlin & Co. v. Braun
Opinion of the Court
On Motion to Dismiss.
The judges of the. district court, when granting orders of appeal, in fixing return days should be governed by the rules of this court; but the fact that a judge, in fixing a return day, as in the matter before us, passes the earliest day upon which a return should be made, and fixes a subsequent one, fault will not be imputed to the appellant, unless the facts are so brought to the attention of the court, that it can be properly ascertained and determined whether the order of court granting the appeal resulted from an error or fault attributable to appellant. The fact that the motion is in the handwriting of counsel, and the day of return written in the motion by counsel, is nevertheless an order of court when granted, and is the act of the judge. 31 La. An. 595, and dissenting opinion of Fenner, J.; 32 La. An. 696.
•A judgment refusing a new trial does not require the signa-, ture of the judge. No appeal will lie from such judgment. Therefore, when a judge, after refusing an application for a new trial, at once signs a judgment, the delays for appeal commence to run from such signing.
The bond declares the appeal is taken from a final judgment rendered in the Civil District Court iu the matter of Hemphill, Hamlin & Co. v. Max. Braun, against the plaintiffs. There can no dispute arise on this: the description is sufficient to permit a recovery.
Motion overruled.
On the Meeits.
Plaintiffs, residents of the State of New York, creditors of defendant, holding the notes of the latter, brought this suit for the recovery of the debt, obtaining a writ of attachment, by virtue of which the sheriff seized certain property. After the issuance of the writ, and pending the seizure, the debtor made a voluntary surrender of his property, under the insolvent laws of this State. The syndic of the insolvency proceeded by rule ..against plaintiffs for a stay of proceedings in this suit, for the release to him of the property attached, and for the cumulation of this case with the insolvency proceedings of Max. Braun. The plaintiffs resisted, on the ground that, being non-residents, the insolvency laws of this State could not affect them; that their attachment could not be disturbed, nor their proceedings stayed, or in any wise interfered with, by reason of any order rendered in said insolvency.
after stating pleadings and facts : — These notes are dated in 1879. The congress of the United States, in 1878, had repealed the general bankrupt law, and the insolvent laws of this State, which had for more than ten years been suspended, revived. From the date of the notes until their maturity — to the instant of this suit — no change had been made in the laws of this State, which impaired either the rights of plantiffs, or remedies to secure those rights.
And the power of the States to enact such laws, and to enforce them among their owu citizens, is no longer to be considered as questionable. 4 Wheaton 122 (419), Sturgis v. Crowinshield; 12 Wheaton 213, Ogden v. Saunders.
And the fullest consideration has been given the subject, in all its phases, by the highest judicial tribunals of the country,, and nothing, it may be said, is left to conjecture.' '
In the present case we are not called upon to determine whether plaintiffs have the right to insist on the fulfilment of' their agreements with defendant, and to proceed to judgment.. We are only to determine whether they have a right to pursue the remedies invoked by them in- the proceedings taken before one of the tribunals of this State — called upon to administer-the estate of a debtor for the benefit of all his creditors, a part of which estate had been attached on the complaint of this, only ordinary and non-resident creditor, on the grounds of an alleged attempt at unfair dealing, in favor of preferred parties,, to the injury of all other creditors, including plaintiffs.
At best, a non-resident creditor can claim no greater right than a resident, when he invokes the aid of the resident jurisdiction; and the remedies which this State extends to all,., foreign and native alike, are no more sacred in defence of the-one than the other before her own forum.
We are called upon to determine the effect of a proceeding; which simply works a modification of a remedy claimed by a creditor in executing a contract made in this State, and sought to be executed in this State. The plaintiffs claiurno privilege or preference over other creditors, nor to or upon any of the insolvent’s effects; and, in fact, they have none. The laws of' Louisiana authorizing the cessio bonorwm have existed, as it is. now understood, since 1817, long before the contract evidenced, by the obligation in this case was made.
Cooley on Constitutional Limitations, page 360, correctly declares: “The right to a particular remedy is not a vested right (the exception when the remedy is a part of the right itself). Asa general rule, every State has complete control -over the remedies which it shall afford to parties in its own courts. * * Any rule or regulation in regard to the remedy, which does not, under pretence of regulating it, impair the right itself, cannot be regarded as beyond the proper province of legislation.”
These conclusions result from the adjudications of all courts, State and federal. We have no doubt of their application to the cause now under consideration.
The judgment is affirmed — except so far, however, as it orders a cumulation of plaintiff’s suit with the insolvent proceedings. We do not consider the courtis authorized to direct the manner in which plaintiff shall preserve or prosecute his rights, such as he may have. Appellant paying Costs.
Concurring Opinion
Concurring Opinion.
I fully agree with my learned colleague in the position he assumes in disposing of this cause. It is now conceded that) in absence of national bankrupt'legislation, the States have authority to adopt insolvency laws, for the purpose ■of distributing the assets of a broken debtor; and, in consideration of an honest surrender, granting him a discharge. The
If a State has the right, under any circumstances, to enact statutes of this character, they have, necessarily, the power to do all that is essential to carrying out the purposes of such statutes — of course, subject to the restrictions of the fundamental law. One of the principal objects of all legislation of this character is the fair distribution of the assets of the disabled debtor amongst his creditors. Certainly, to accomplish this, there must be provision for the judicial possession and partition of such assets. If one creditor, simply because he is a non-resident, may take or withhold any one piece of the insolvent’s property, not specially affected in his behalf, and which, being within the State, is subject to its laws and to the jurisdiction of its courts, he may, under appropriate circumstances, take or withhold it all — defeating the operation of the statute, in one case partially, and in the other totally. This certainly would be the effect of holding, as we are expected by appellants to do, that, if a non-resident creditor is not subject to the insolvency laws of the State, his right to proceed against the property of his debtor, pending the cessio bonorum, cannot be restricted or destroyed. Assuredly, under such a view, a non-resident creditor would possess rights even more than sovereign in their nature. He could come within the boundaries of a State, and place himself above its sovereignty, and beyond its laws, although the latter be such as the State has an undoubted authority to enact. He could come into the courts of that State, and practically arrest the progress of its judicial procedure, in so far as his own interest required such arrestation. He could seize upon privileges which were lawfully denied a citizen of the State itself: so that, for the stranger there would be one and a higher law, and for the denizen another.
Therefore it is, that, as a matter of imperative necessity, these things are left to the control of the ¡States; and the provisions of the federal constitution, already referred to, have been held to impose no obligation upon these commonwealths,, beyond that of furnishing a remedy of some nature, reasonably sufficient for the protection and enforcement of contract and other rights.
The writ of attachment, and others similar, are exceptional .in their nature, and merely preliminary. They are by no means essential to the enforcement of legal rights. They are accorded in some cases, and refused in others; and if they be
But it is well settled, that, so far as possible, all of the statutes of a State must be construed so as to harmonize, in order that all may be upheld. If the non-resident creditor,.in this case, has obtained a writ of attachment, he did so by virtue alone of the law of this State to the case applicable. That law is no more solemn or operative than other statutes which allow an insolvent to apply to the courts, and require such courts to possess and distribute all his property. The latter modifies the former, and the writ, when issued, is subject to contingencies rendered possible by the latter. To maintain appellants’ position would be to allow them to sunder the legislation of this State — accepting and profiting by one portion, and repudiating another equally constitutional. It would be to allow them to exercise, nob the remedy actually created by the laws of Louisiana, but one larger and more peremptory.
The principle here contended for has received the sanction of our learned brothers presiding over the Circuit Court of Appeals for thé first circuit of this State, in the case of August, Bernheim & Bauer v. Brown, 1 McGloin 261.
Thus far the judges of this court have gone together ; and thus far, alone, perchance, it is necessary to go in the determination of this cause; and beyond this I have not solicited my ^earned colleague to accompany me. But, as I have had occasion to cite the case from the first circuit, which is in opposition to the opinion announced by the Supreme Court of the State, in Orr & Lindsley v. Lisso & Scheen, 33 La. An. 176; and as the issues in August, Bernheim & Bauer v. Brown, and those of the con troversy we are now disposing of, are alike, not only upon the
Under such circumstances, courtesy towards my learned brothers of the first circuit may, perchance, require me to state why I wish to guard against the possibility of placing this court in the attitude of an implied acceptance, in full, of August, Bernheim & Bauer v. Brown.
It is the misfortune of human legislation, that it is too often compelled, not so much to make choice between irreconcilable benefits or advantages, as to mark the course which, of necessity, lies between opposing dangers. Human foresight is so limited, and the power and latitude of change is so infinite, that the remote peril of to-day may become the proximate one of to-morrow: and what was the wisdom of the past may be the folly of the present. In the instance under consideration, the framers of the federal constitution had to navigate, as best they could, between the dangers of unbridled sovereignty, with the possible disregard and subversion of individual right upon the one hand, and the undue crippling of governmental power on the other, with a corresponding restriction of its ability to further or protect the general welfare. They seem, indeed, to have weighed with honest care every word that went to build up this portion of the fundamental law of the nation.
In the particular connection now under consideration, theprohibitiou to the States is against passing laws impairing the-obligation of contracts. It is pretty well determined, by judicial construction, that the obligation here referred to is that of the civil or municipal law, whether express or implied, whereby such- law recognizes and enforces the moral obligation that attaches to every contract innocent in its nature. This is. reasonable, for the obligation of a contract is only a portion of it, or, perhaps more properly, a result; and the clause in question, by restricting itself to the obligation alone, compels us to-
The legal obligation, however, is the means given by human law, to the individual, to enforce his rights. It is the lending-of the power of the government to the citizen, to aid him. in the-accomplishment of that which, in a state of nature, he would have to bring about by his own force or cunning. As, in the-interests of society, the individual cedes to the State this right - of personal compulsion against his debtor, the State, on its side, owes him a fair and efficient substitute. This, of course,., the State must regulate and govern; but it cannot be jnstly denied to any one. In this connection it is, therefore, that the. citizen must feel the tyranny of the State; and here was something in connection with which it might be unwise to leave the-.subordinate commonwealths with untrammeled powers. This was the only obligation that it was in the power of the framers, of the federal constitution to foster or protect; and this, it. cannot be doubted, was the only one with which they concerned themselves.
The special language of this provision shows that at the. time it was constructed, or chosen, the danger of an undue interference with the sovereign powers of the States was recognized, and that there was the purpose to trammel it as little-*
The States, as a matter of course, are charged with the determination of ¿these questions, as matters of public policy; and the national constitution would have been treading upon dangerous ground had it attempted, in this regard, to control their powers. It has not, however, so attempted, for it does not apply its language at all to the contract, but simply to its obligation. Of course, until there is a contract there can be no obligation, in this connection. As it is the legitimate province of the sovereign to define what shall constitute a contract, to declare upon what terms and conditions one may spring into being and continue its existence, and as the States never surrendered this prerogative to the general government, it remains with the States, unimpaired.
The language of the constitution practically says to the
If this reasoning be correct, it would seem to me clear, that the legislature of the State, if within its own constitution, may declare to its citizens: you are permitted to contract, and your debtor shall be bound to you in person and effects, or in property alone, or in some designated portion only of his property. This principle justifies laws shielding the person of the debtor from civil arrest; and homestead and other exemption laws. So the State may also dictate for the future, that a lawful obligation shall, as it were, die of old age, and fix the period of its life; hence, laws of prescription or limitation. Hence, also, as between citizens of the same State, insolvency laws have been generally conceded to be operative.
While following thus far the current of opinion upon these questions, I here must pause, and ask why, in this last connection, there should be a distinction between the citizen and the non-citizen? If the public policy of a State demands an insol- ■ Arent law, why may not the stranger, coming Avithin the State to iirvoke its laAvs, be subject to such a statute of bankruptcy, as Arell as its own people ?
It may be Avell, before proceeding further, to touch briefly
Where a State does this for the broken debtor, it preserves a citizen, not entirely bereft of all power of advancement, and one who is impelled, by a reasonable hope, to further efforts; remaining thus a contributor to the national wealth, instead of a mere consumer. Where, however, it denies this relief to its disabled ones, it leaves them with spirits crushed, and without power to rise again into the ranks of those who,'while furthering their private interests, are also increasing the aggregate of the nation’s wealth, building up its commercial, agricultural or manufacturing interests, as the case may be, and raising the standard of its influence and power.
Furthermore, there are great calamities, such as war, invasion and the like, which befall a country and reduce it to bank
Finally, when men become embarrassed, creditors too often engage, as it were, in a trial of speed, 'to appropriate, each to himself, the assets, and overwhelm the debtor with- the heavy law-charges and other injuries of accumulating seizures. The result, in the absence of insolvent laws, ordinarily, is that one or more of the debt-holders is paid in full, with heavy judicial expenses, while the remaining creditors receive nothing, having left to them only barren demands against a broken debtor, who, in all probability, will never again possess property to seize. Bankrupt laws check such ruinous contests of celerity, take from the debtor all the property he possesses and distributes it fairly among all the creditors. In consideration of the debtor’s honest disclosure aud surrender of all his assets, of the withdrawal from him of control over Ms own affairs, and the assumption of his rights and duties as to present property, towards all his creditors, the law grants such debtor a discharge from Ms obligations. Surely such legislation is not unilateral, but advantageous to creditor aud debtor alike, and consequently in the interest of both.
For these reasons, civilized nations have always claimed aud exercised the right of enacting insolvency laws; and most of them give to such legislation a permanent place upon their statute books. Moreover, such nations not only protect their discharged debtors against; creditors that are their own subjects, but so long as such debtors remain at home, they shield them from the pursuit of aliens as well. What subject of Great Britain would dream of appearing in a French Court to prosecute a citizen of France, after the discharge of the latter
The States of this Union -are in all respects, where their powers are not restricted by fundamental law, as sovereign as .any of the nations of Europe or of the world. What any of the latter .may lawfully do, this any American State, under the ¡restriction mentioned, may likewise do. It is conceded that the federal constitution does not deprive the States of the power to enact insolvent laws, so far as they affect contracts of the future. If, therefore, they have this sovereign power remaining to them, how does it happen that this power is one thing when exercised by a State, and another when exercised by the general government of the United States, or by the other governments of the world ? If the State of Louisiana cannot, by its laws of this nature, affect the claims of a citizen of New York, because the latter is in person without its territory, how does France strike the debt due a resident of London, or the United States one that is due a person dwelling in Paris ? When it is argued that the New Yorker may attack his Louisiana debtor, not alone if such debtor be found in person or property within the State-of New York, or of Ohio, but within the State of Louisiana itself; is it not argued as well, that the Londoner should be similarly heard in Paris, or the Parisian in America?
I am not prepared to assent, on general principles, to the doctrine, that the laws of a country enter of themselves into the contracts of its people, as in the nature of implied stipulations. They are enactments for the determination of the rights of parties, where the latter have been either silent or •ambiguous. They hold their course of their own vigor, and independent of individual consent. It is true, persons may be ■satisfied with the dispositions of the law and remain silent ; but, under such circumstances they have not contracted, and ¡they are not held or benefited by reason of any assent, express
Particularly clear is it, that even within the State itself, its laws of the remedy do not enter into the conventions of its citizens; and equally certain, that a contract, passing beyond the bounds of its own State, to seek enforcement, carries Avith it none of the remedies, as such, of the State of its origin. However the case may be, as to its Aralidity and interpretation its enforcement must depend entirely upon the law of the community to Avhose courts the appeal is made in its behalf. The clause of the federal constitution, against the impairment of the obligations of contracts, does not compel a State to afford the citizens of any other State, all the rights, or any of the remedies peculiar to such other State. All that can be required of any State, is to accord to the stranger the same rights and remedies that it has provdied for its oavu people. Even if, by reason of his non-residence, a creditor is beyond the jurisdiction of a particular State, when he comes within its limits, to invoke the aid of its laws for the enforcement of his obligation, he must take those laws as he finds them. If they do not permit the arrest of the debtor, or the seizure of all his property, the fact that the statutes of his own State accord such remedies is of no service to him. Indeed, under the idea of fostering a high sense of indi\Tidual honesty, or to abolish the system of credits, it is possible that a State might restrict its courts simply to the task of interpreting laws and contracts, or of debts, money disputes, and refuse them all power of com
Coming more closely to the case under discussion, the State of Louisiana does not permit the unrestricted appropriation of the debtor’s property to the satisfaction of his obligations. It has its exemption laws and its laws of homestead. It goes further, and says to the creditor, u You may seize the property of the debtor, so long as he has not arrived at the condition of incapacity to satisfy all his debts, and has not, in the interest of all concerned and of the State itself, surrendered all his assets to the courts for lawful distribution. When such contingency, however, has arisen, the writ of fieri facias is no longer at your command; and your sole remedy is to demand and receive your share of the fund realized from the surrendered assets.” Thus Louisiana attaches a'condition to its laws of the remedy one admitted to be of force against its own citizens, and one which should govern the non-resident as well, so soon as he introduces himself, or his contract, within the jurisdiction of the State. To allow a stranger to come into the courts of Louisiana-, and issue his/eri /acias, or similar writ, even after a cessio bonorum and discharge, is to administer a remedy unknown to the laws of the State, and even in direct antagonism thereto. It is to hold the property of the debtor,- where a sovereign State has said, in advance of the action, and for universal application, that it shall not be held.
I, therefore, must say that I do not see the force of the contention, as applicable here, that the laws of Louisiana cannot extend beyond its own limits to affect the contracts of other States. It is not attempted by legislation of the character in question to give her laws an extra-terratorial application. So long as circumstances keep such contracts, and the interests they involve, beyond the boundaries of this State, the laws thereof do not reach it. -If the extraneous creditor finds the debtor or his property outside of Louisiana, he may ignore
Furthermore, although the person of a non-resident be beyond the boundaries of a State or nation, any property or right he possesses within its limits is rightfully subjected to its legislation. So, any such property or rights that he may bring- or send within the bounds of such State or country, passes at once under the full dominion of its laws, past as well as future. As to the application of this principle, no sound distinction’ can be drawn between property or rights which are to be seen and touched, and those which are not. The privilege of suing upon a debt, and seizing to satisfy it, constitute rights and interests as legitimately the subject of the legislation ©f every sovereign power, as real estate itself can be. The fact that these privileges of suit and seizure, as against a citizen, rest in an alien, does not in any manner detract from the power of a State’s control over them. Of course, the effect of such legislation does not reach beyond the confines of the enacting State, to the person of the non-resident creditor, so as to affect him in other jurisdictions; but within the confines of ,such State, such laws are supreme. Thus, a New York creditor, although his sole interest in Louisiana may be the right to sue ■one of the citizens of the latter State, is bound, so far as the enforcement of his rights within the State of Louisiana are concerned, by the limitation or exemption laws its legislature may adopt, as fully as a citizen of such State would be. The position in reality is, that the law of Louisiana acts upon this right of suit, as it would upon the merchandise or real property
The objection that insolvency proceedings are in their nature judicial, requiring due notice to bind, and that one who is not present in person or property cannot be reached by the process of the courts conducting them, is closely related to the one which has just been discussed. It will not be denied that, with the rights or property of an alien within a country, its courts, as well as its legislature, have the right to deal. If a man acquires either, within the limits of a State, he thereby consents to subject them to the action of its courts, as well as of its laws ; for it w'ould be strange, as well as intolerable, if the legitimate statutes of a State, affecting particular things within its bounds, could not be enforced by its judicial tribunals, simply because the owner of those things is an alien. If a non-resident falls heir to an estate, or receives a legacy, the courts of the State in which the succession lies may entertain a suit against him, to regulate the payment, delivery, or even the validity of the bequest. If he holds a mortgage or privilege upon property in the State, which is also similarly charged in favor of a citizen, the latter may force the stranger into the courts of his State, for a judicial determination of their conflicting rights. If he has a judgment in the State against a
Upon the same principle, when a debtor falls into insolvency, and his resident creditors desire a eessio bonorum, or where he himself deems it advisable to provoke one, the matter presented for judicial determination, as between the creditors, is the relative rights of each in and to the assets or their proceeds, which the State has a right to regulate by its laws, and its courts to determine upon; for the only interest of the alien to
So, on the part of the debtor, his demand against his creditors is for that protection or. exemption of his future property, within this State, which the law promises in consideration of an honest disclosure and surrender upon his part. The rein he brings before the court, is the right of the creditor to pursue him hereafter, within this State, for the debts placed upon his bilan or schedule; an existent right, which can be exercised only in this State, and, therefore, properly has its situs within the same, and is subject to its jurisdiction. This right of the creditor to pursue and seize presents a judicial question, which the insolvency of the debtor makes vital, and gives the court authority to restrict and otherwise regulate it, as between the creditors themselves; and equally is it sufficient to support the other branch of the same process, that for the relief of the debtor. The law says to the debtor do this and you are entitled to future exemption; and the debtor complies, whereby he is entitled to be declared free. A lawful and real issue is presented, under special sanction of the law, in which a citizen of the State has a substantial interest, and it affects a right of the non-resident, existent only in this State. The law may make such right, though intangible, a proper subject of judicial controversy, as fittingly as though it were tangible property; and this it has done.
These principles are not at variance with the authority of Pennoyer v. Neff, 95 U. S. (5 Otto) 714; for there a creditor sought to proceed against his non-resident debtor, without peronal service or levy upon his property. In that case, as in
The principle which is here contended for, is, in this particular connection, of universal recognition and practice in all civilized countries. The United States itself has recognized and respected it. Bankrupt proceedings, the world oyer, bring in the alien creditor without seizure of his property, and necessarily by constructive notice. Who has questioned the jurisdiction of the courts of the nations of Europe, to so implead aliens in such proceedings ? Have not foreign and non-resident creditors been thus forced, time and again, into the bankrupt courts of the United States, and the judgment discharging the debtor been always held as obligatory within the bounds of this Union ? If it is proper for such governments to authorize the impleading of foreigners in such cases, by what logic is it unlawful for the States to do the same % Are the latter not sovereigns as well as the others, and are they not to be judged by the same rules of international law ?
The Holy Writ declares : “ Diverse weights and diverse measures both are abominable before God.” I cannot disabuse
Case-law data current through December 31, 2025. Source: CourtListener bulk data.