Graham v. Merrill
Graham v. Merrill
Opinion of the Court
delivered the opinion of the Court.
On the 24th of May, 1864, Graham was a loyal citizen of the United States, domiciled in the State of
The articles stipulated that Graham was to have one half the net profits, and to bear one half the losses; and Merrill and Cliffe were to have one half the net profits and bear one half the losses.
Such is a brief outline of the substance of the bill of complaint; enough to enable to be understood the questions discussed and decided.
•At the time of the making of the contract, the
The National army had firm occupation of the country of the residence of Merrill and Cliffe. Such occupation established the dominion and Government of the United States over that country, and restored the inhabitants to the relation of citizens of the United States. The previous enemy relation between the parties to the contract, was thus ended, and their incapacity to contract with each other, by reason of their previous enemy relation, was also ended: 2 Wallace, 277; 6 Wallace, 531.
It is another question, whether tbe subject matter of the contract was lawful; a contract for commercial intercourse between a loyal State and a part of an insurrectionary State. If such trade was unlawful, the contract was illegal and void. Generally commercial intercourse between the loyal and disloyal States during the war of the rebellion, was unlawful. It was so made by the Act of Congress, of July 18, 1861, (12 Statutes at Large, 251,) and by the several proclamations of the President, in conformity with the Act; and also, probably by the laws of war. But, though generally prohibited as to all the insurrection-ary States, exceptions were authorized by the Act of Congress, and the proclamations of the President. Under the proclamations of August 16, 1861, (12 Statutes at Large, 1262,) unrestricted trade was authorized between the loyal States and such parts of the insur-rectionary States, as, “from time to time, should be
Intercourse thus authorized and regulated, continued until March 81, 1863. On that day, the President issued a further proclamation in regard to commercial intercourse between the loyal and disloyal States. The change made by that proclamation was to prohibit the unrestricted trade between the loyal States and the parts of disloyal States held and occupied by the National forces, which was authorized by the original proc-;
Tbe contract between tbe parties here, was made after tbe proclamation of tbe President of March 31, 1863, and is therefore dependent, as to the validity of tbe trade agreed on, upon tbe condition of tbe law as it then was, by virtue of tbe Act of Congress and tbe proclamation last mentioned. Tbe fact that tbe trade contemplated was between a loyal State, and part of an insurrectionary State in tbe firm occupation of tbe National forces, does not seem to be of vital, if even of material consequence. Tbe military occupation of tbe country wherein tbe cotton was to be bought, does not appear to give tbe trade any lawful quality, other than it would have in a region of country not so occupied. It is thus apparent, that there was a trade which might be lawfully carried on between inhabitants of tbe insur-rectionary country and residents of tbe loyal States. Such trade tbe parties in this case agreed to engage in. It follows that their contract to engage in such trade was lawful.
The President repeatedly exercised his discretion, and granted license to the trade. This was done by the order of February 28, 1862, already recited. It was further done by his order of March 31, 1863, accompanying and approving the regulations of that date, issued by the Secretary of the Treasury. The order or license recites, “that it appears that a partial restoration of intercourse between the inhabitants of sundry places and sections heretofore declared in insurrection, and the citizens of the rest of the United States, will favorably affect the public interest, therefore, the President, exercising the discretion and authority confided to him by the Act of July 13, 1861, hereby doth license and permit such commercial intercourse between the citizens of the loyal States and the inhabitants of the insur-rectionary States, in the cases and under the restrictions described and expressed by the regulations of the Secretary of the Treasury, of even date with the order,” to-wit: March 31, 1863.
A license to trade with the enemy in time of war, is Said to be stricti juris. By this is meant, in its ordinary application, that the license granted to the person, is
It is not to be doubted, that trade authorized and conducted under the license of the President, so granted, and in conformity with the regulations of the Secretary of the Treasury, is not to be deemed illegal.
Another question in the case may properly be disposed of, which appears to be involved in much per
No ground for such attachment or injunction, is laid in the bill. It is claimed that the fact that the equity of the bill being a demand of purely equitable nature, upon which an action at law, or an original attachment will not lie, and upon which no judgment at law can be obtained, the Chancery Court has authority to attach for the purpose of securing the decree, any of the properties of the defendant. And this by virtue of section 4387 of the Code.
Motion is made in this Court to discharge the attachment and injunction. The complainants resist the motion; and for one cause of resistance, say the case is not so in this Court, as to give this Court cognizance of such motion or matter. The case is brought into this Court under section 3157 of the Code, upon decree of the Court below overruling the demurrer. Upon common law practice in Chancery, an appeal or writ of error does not lie upon such decree or order. The defendant must plead or answer, and go to final hearing before he can appeal or have writ of error. Such is the common law practice.
The opinion of the Court is, that the appeal upon order overruling defendant’s demurrer, removes the whole cause from the Court below, and brings the
To understand the sec. 4287, it will be useful to advert to its origin, and the history of the law belonging to it. It is transferred to the Code, from the Act of October 18, 1832, chapter 2.
Until the year 1831, process of execution ran against the person of the judgment debtor. The capias ad satisfaciendum, might be had upon the judgment as well as the fieri facias-, execution against the body as well as against the goods and chattels, lands and tenements of the debtor. In that year the execution against the body was abolished, with few exceptions, and the execution against his properties only remained.
The fieri facias was leviable upon legal properties only; properties in which the defendant had the legal title.
The original attachment was also leviable, only upon legal properties, and also could be maintained only upon demands of legal nature. The foreign attachment in Chancery, as now practiced, was at that time, unknown. To reach choses in action or equitable properties, the process of garnishment might be had on the fieri facias, and on the foreign or original attach
By the capias ad satisfaciendum, the defendant could be put. into imprisonment and kept confined un» til he chose to relieve himself by discovering on oath and delivering up to satisfy the judgment, his properties, including choses in action, stock and other equitable assets. Soon after the abolition of imprisonment for debt, the case of Ewin vs. Oldham, reported in 6 Yerger, 185, arose, in which it was decided in the Chancery Court, in March, 1862, that a bill in Chancery upon a judgment, execution and nulla bona, would not reach and subject to the payment of the debt, the choses in action, stock and other equitable assets of the debtor, unless upon the grounds of some fraud, or some trust; fraud in converting legal or other properties into equitable, for the purpose of hindering and defrauding creditors. See Ewing vs. Cantrell, Meigs’ Report, 373, and Meigs’ Digest, vol. 1, page 176. By virtue of this decision, and under the operations of the law abolishing imprisonment for debt, and the law as to the kind of estates leviable by fieri facias and foreign attachment, the practical effect and result was, that the debtor could substantially defy the creditor, by putting his properties into equitable estates.
To remedy this defect of the law, the Act of October 18, 1832, ch. 11, transferred into sec. 4287 of the Code, was enacted. The first section of the Act provided that choses in action, stock and other equitable
'In cases of such kind, and perhaps in others, it was desirable and proper, to give the creditor a remedy, to enable him to ascertain his debt by reducing it to decree, and to have execution therein against the debtor, and by means of it to subject the properties of the debtor, legal or equitable. This was aimed to be provided for by the fourth section of the Act, which, transferred to ^the Code, is difficult to understand and construe. In itself it is obscure. The draftsman of it was not happy in the perspicuous expression of his me ning. But enough is apparent, in the light of the history appertaining to it, to enable us to give a satisfactory construction ’ to the extent needful to the present case. It is clear enough that the law intend
The Act intended to give the equitable creditor a remedy, by attachment, against the debtor, who stood in the condition authorizing his properties to be attached, as prescribed by the Act of 1794, C. 1. S., 19, 21, etc. The causes of attachment prescribed by that Act, and which continued to be the only causes until after the Act of 1832, were, where the debtor had removed, or was about to remove himself privately, out of the country, or so abscond and conceal himself that the ordinary process of law cannot be served upon him, or is not an inhabitant of the State, It is since 1882, that the causes of original attachments have been increased in number, and the remedies extended to Chancery, as well as at law; and the properties leviable, have been extended to the equitable as well as legal.
The remedy given by the Act of 1832, sec. 4, was a new remedy, and enacted to supply a defect in the existing law. The defect was, that the creditor whose demand was equitable, was unable to reach his debtor’s properties by judgment at law, execution nulla bona and bill; nor by foreign attachment at law. There was no defect in the case, where a party had cause of equitable jurisdiction, and a remedy according to the
Undoubtedly, the equitable creditor, or the com
In Gasquet et als. vs. Scott et als., 9 Yer. R., 250, the opinion of the Court states, that the intent of the fourth section of the Act of 1832, was not to authorize a bill in Chancery, to subject equitable properties without judgment at law, except in cases of absolute necessity. That case, Gasquet vs. Scott, was, where a non-resident creditor filed a bill against a non-resident debtor, and against the grantee of the latter, under a conveyance made by the debtor, to defraud his creditors. The Court held, that the properties conveyed to the fraudulent grantee could not be reached by the bill.
This has been changed by subsequent statute. The section 4, of the Act of 1832, applies to legal demands, as well as equitable demands. No one would contend, that a bill could be maintained on a legal.demand to impound and subject the debtor’s properties, where personal service of process on the defendant, was available by summons, or when the properties could be subjected by attachment at law. It is equally inadmissible to hold, that a bill could be maintained on' an equitable demand, where personal service of process could be had upon the defendant. To authorize the attachment and impounding of the properties, something more must be shown than the mere fact of the demand being legal or equitable.
Upon the contract, the parties are chargeable with the losses — Graham one half, and Merrill and Cliffe the other.
The decree of the Chancellor is affirmed so far as it overrules the demurrer; and the case is remanded for further proceeding in the Chancery Court, in conformity with this opinion.
Reference
- Full Case Name
- Richard A. Graham v. Merrill, Cliffes.
- Status
- Published