Champneys v. Lyle
Champneys v. Lyle
Opinion of the Court
delivered the opinion of the court.
The plaintiff was bound as security for Richard Maris, in sundry bonds to the United States,,for duties on goods imported, dated 11th April 1801. The plaintiff paid those bonds, and Maris became a bankrupt. Two questions are now submitted to the court.
1. Whether that preference which was given to sureties in bonds for duties, by the 65th section of the act of Congress, “ to regulate the collection of duties on imports and tonnage, (March 1st 1799) was taken away by the act “ to establish an “ uniform system of bankruptcy throughout the United States.” {April 4th 1800.)
2. If such preference is not taken away, then, whether the plaintiff is entitled to recover interest subsequent to the date of the commission of bankruptcy.
The 65th section of the act to regulate the collection of duties &c. provides that in case of insolvency of the obligors, or in case of their death, and not leaving sufficient assets to pay all their debts, the debt due to the United States on bonds for duties, shall be first satisfied; and that if any surety in such bonds shall pay to the United States the money due thereon, “ he shall have and enjoy the like advantage, priority, and pre- “ ference, for the recovery and receipt of the said money, out “ of the estate and effects of such insolvent, or deceased principal, as are reserved and secured to the United States.”
The bankrupt law provides in general for the equal distribution of the bankrupt’s estate among his creditors, without any preference, except as to those creditors who had liens existing at the date of the act. But it is enacted by the 62d section, that nothing contained in that law “ should in any manner affect the “ right of preference to prior satisfaction of debts due to the “ United States, as secured or provided by any law theretofore “ passed.”
It would have been an act of such extreme injustice to take away from sureties in custom-house bonds, that preference which had been assured to them, and on the faith of which they became bound to the United States, that nothing but the clearest expressions could induce me to suppose that congress
I am therefore of opinion, that the bankrupt law did not repeal those provisions in former laws, which in cases of bankruptcy gave a preference to sureties in custom-house bonds.'
As to the second point, the 66th section of the act to regulate the collection of duties &c. enacts, that “ on all bonds on “ which suits shall be commenced, an interest shall be allowed “ at the rate of six per cent, per annum, from the time when the “ said bonds became due, until the payment thereof;” no distinction is made between suits brought by the United States, and by the sureties. Being of opinion then, that no part of the
Judgment for plaintiff.
Reference
- Full Case Name
- Champneys against Lyle and others, assignees of Richard Maris and John Davis, bankrupts
- Cited By
- 2 cases
- Status
- Published