Haley v. Long
Haley v. Long
Opinion of the Court
delivered the opinion of the Court: — .
The covenant declared upon by the plaintiff, being upon oyer set out upon the record, by which it appears that there is no seal, but only says, witness my hand and seal, has in this ease been, under the present pleadings, considered insufficient by the judge to support the verdict rendered for him, and to entitle him to the species of action which he has brought. That the action of covenant will not lie on the writing set forth upon the oyer is admitted, if the proper steps had been taken by the defendant to bring this point before the Court, or if his pleas had been shaped so as to give him the advantage of this question before the jury. But situated as this case is, the authorities show that the judgment cannot be arrested on this ground.
In the case cited, the instrument set out upon oyer showing it to be a deed, was held not sufficient to help the defective allegation in the declaration of its being a deed. The present case is much stronger, for here it is not only wished for the oyer to help, as in that- case a defect, which defect would not amount to a contradiction, or a repugnancy to what was before advanced, but to contradict a positive averment, to wit; of the defendant’s covenanting by his deed, and to override it, or render it unavailing. Upon the authority of this case, therefore, which I cannot find opposed by any in the books, the judgment in the present case ought not to be arrested on this ground.
Another ground on which the judgment below was arrested is, that covenant will not lie on the obligation declared on, but debt alone.
Upon the argument of this case no authority has been cited to prove this position, and I have not been able to find any ease that says that covenant cannot be supported on a bill single, for the payment of a certain sum of money. All the books agree that debt lies; and is a proper remedy, but e converso, that covenant will not, is a point rather doubtful. That covenant is the peculiar remedy for the non-performance of a contract, under seal, where the damages are unliquidated and depend in amount upon the opinion of a jury, is admitted; but this action is not confined to this class of cases alone. In one of the latest treaties upon actions, and at the same time very respectable, Chitty, who with labor and assiduity seems to have gleaned áll that is to be found in the books upon this subject, thus expresses himself, “ and covenant appears in general to be a concurrent remedy with debt, for the recovery of any money demand, where there is an express or implied contract in a deed.” And it has ever been holden that an action of covenant is sustainable on a bond, though debt is now the usual remedy.
So in Douglass v. Bean, 2 Bin. 76, the Court say, p. 78, when the defendants craved oyer of the bond, they might have taken advantage by demurrer, of any material variance between the declaration and the bond; but they cannot take such advantage on a writ of error, and if not reversible, the judgment cannot be arrested, for at this day the only ground for arresting judgments is, something- intrinsic appearing on the face of the record, which would render it erroneous and reversible. Tidd. 224, 225; 1 Salk. 77; 1 Lord Ray. 232; 4 Bur. 2227.
The second question in this case is, whether the Court ought, to have granted a new trial, and this depends upon the charge of the Court to the jury upon the trial of the issues.
It appears by the record that the former suit between these parties was brought for the recovery of- money won on a horserace. This, by the Act of 1799, ch. 8, is prohibited, and the attempt to do so by instituting suit is liable to a forfeiture of $ 100. The contract also, for the payment of the money so won, whether verbal or written, is declared void. No question, therefore, could have arisen upon the law of the former Case, but that the plaintiff would have been barred of a recovery by the Act, but the question now arising is founded upon the supervening acts of an award upon the subject-matter of that suit, on a note given for two hundred dollars to the same party in performance of that award, upon which note the present suit is brought. How far does the giving the second note cure the illegality
But the decisions have not gone so far only as to declare the substituted security void in the above cases, when given to the original contractor or his personal representative, his executor, but if the substituted security has been given to a privy, or to one having knowledge of the original illegal consideration, it will be void also, as in the late case of George v. Stanley, 4 Taunt. 683, where defendant lost three hundred pounds at hazard, had given bills to that amount to the winner, who negotiated them, they came into the hands of the plaintiff; the defendant being unable to pay them when due, gave other bills, upon which last becoming due he confessed judgment, whereon execution being levied, a rule was obtained to have the money restored, the judgment and warrant of attorney set aside and cancelled. The cause shown was, that the plaintiff was ignorant that the first bills were given for a gaming debt, and that the courts will not set the judgment aside, and let in the plaintiff to try the merits against a bona fide holder of the bills, unless upon the terms of not setting up the defence of the statute of gaming, unless he can implicate the plaintiff as a party to the gaming transaction. The Court would not set the judgment aside unless the defendant could effect the holder with notice, but permitted him to try that part in an issue. This is a strong case, and goes a great way to prove the law of the case before the Court; it proves that the original illegal consideration contaminates the subsequent superstructure whether immediate or remote, whether continued in the same form or transformed into another form, so that the party is cognizant of the ground of the proceeding.
We have next to see whether the interposition of an award varies the law of the case; it is true that in former times less power was admitted to arbitrators than in the more modern; and once it was held that an award of recompense for an injury, for which no damages were recoverable at law, was void, as was the case in 1 Sid. 12; but in the case in 2 Vent.
I shall take a short review of some of the cases on this point to show what effect the award in the present case ought to have; Lord C. Talb. 2 Eq. Ab. 8, c. pl. 8, says, it is true arbitrators are in the nature of judges, and in some respects have a greater latitude, not being confined within the rules of law and equity, and therefore may make such allowances as would not be made in courts of judicature; and in Knox v. Symonds, 1 Ves. Jr. 869, Ld. Thurlow said, upon a general reference to arbitrators, of all matters in dispute between the parties, the arbitrators have a greater latitude than the Court, in order to do complete justice between the parties; for instance, he may relieve against a right which bears hard on one party, but which, having been legally acquired and without fraud, could not be resisted in a court of justice ; and in Delver v. Barnes, 1 Taunt. 52, Mansfield, C. J. said, “ in a reference of all matters in difference, an arbitrator ought to consider not legal only, but also equitable, demands,— demands of all sorts ; besides, if the arbitrator is not right in the point of strict law on the subject, he is certainly right on every other point; the sum of £100 was really due in conscience.” Heath, J. it is a very proper and conscientious award. In Morgan v. Mather, 2 Ves. Jr. 18, Wilson Lord Com. speaking on a general order of reference of all matters in dispute, says, “ I am of opinion that when anything is submitted to arbitrators, the arbitrators cannot award anything contrary to law, because that is beyond their power, for the parties intend to submit to them only the legal consequences of their transaction and engagements.” And in - v. Maze, 2 Bos. & Pul. 375, Chambers, judge, says, “there is no doubt that an arbitrator is bound by the rules of law like every other judge, and if it appear on the
There is a case in 6 Taunt. 255 ; if an arbitrator acts directly against law, the Court will set aside the award; but if, in a matter mixed of law and fact, he mistakes some of the points, they will not therefore set aside the award.
If an award be of anything which is against law, it is void, and the parties not bound to perform it. Kyd on Awards, 184, E. 4.
When the plaintiff’s demand is founded on an unlawful contract, and the referees, under a rule of court, award it to him, the Court will set the award aside. Maybin v. Coulin, 4 Dallas, s. c. Penn. The effect of the transaction was to defraud the United States of foreign tonnage and of alien duties. By the Court. The positive provisions of the laws of the United States respecting American registered vessels; the national policy of our navigation system ; good faith toward the belligerent powers, and the very foundations of morality have been violated in the course of the transaction. No court of justice of the United States can lend its aid at any time or in any degree to recover a debt originating in a source so forbidden, so foul, and so pernicious; the report cannot, therefore, be affirmed.
I am of - opinion, therefore, that the Circuit Court erred in arresting the judgment in this case ; it erred also in the direction given to the jury, to wit: that the award made and note given in pursuance thereof, precluded the defendant from the defence ; that the first note, of which the second is a substitute, was given for a gaming consideration, and in refusing a new trial by which the error of that misdirection might be remedied.
The verdict and judgment must be set aside, and the cause remanded for a new trial to be had therein according to law.
Reference
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- JOHN C. HALEY v. JAMES Y. LONG
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