Crapo v. Kelly
Opinion of the Court
delivered the opinion of the court.
The claim of Federal jurisdiction over this action.is based upon article 4, section 1, of the Constitution of the United States. It is there declared that “ full faith and credit shall be given in each State to the public acts, records, and judicial proceedings of every other State; and the Congress may, by general laws, prescribe the manner in which such acts, records,- and proceedings shall be proved, and the effect
The defendant in error insists in- reply that .the validity of the record of the court of probate and insolvency in the State of Massachusetts is not involved, and the faith and. credit due to it'.is not in question. This is based upon the argument that that record has never adjudicated upon the title or possession of the vessel in question, and that the same was res integra when this action was commenced in New York.
The ease of Green v. Van Buskirk, reported in 5th Wallace, p. 310, and also in 7th Id. p. 139, is relied upon as conclusive upon this point. In that case Bates, who lived in New York, executed and delivered to Yan Buskitk, who lived in the same State, a chattel mortgage on certain iron safes which were then in the city of Chicago. This was done on the 3d day of November, 1857. Two. days after this Green, who was also a citizen of New York, being ignorant of the existence of the mortgage, sued out a writ of attachment in the courts of Illinois, levied on the safes, and sold them in satisfaction of the judgment obtained in the attachment suit. There was no appearance or contest in defence of this attachment suit, and Van Buskirk was not
The case as reported in 7 Wallace is to the same effect. In restating the argument of jurisdiction Mr. Justice Davis says: “ This court in denial of the motion to dismiss held that the Supreme Court of New York necessarily decided what effect the attachment proceedings in Illinois had by the law and usage in that State, and as it was decided against the effect that Green claimed for them, this court had jurisdiction under that clause’ of the Constitution” above quoted. Whether the Supreme Court of New York held correctly or otherwise was important when the case came before this court for a final hearing, but the fact simply that it had de-. cided against Green’s claim of the effect of the récords gave jurisdiction.
We think the jurisdiction of the court now to hear and decide the case is sufficiently clear.
Omitting all superfluous circumstances, the facts necessary to present the question on the merits are these: On the 23d of February, 1861, the insolvent court of Massachusetts appointed Crapo and others assignees in insolvency of Gibbs & Jenny, and the judge of that court executed and delivered to them an assignment of all the personal property of Gibbs & Jenny. At this date Gibbs & Jenny were the owners-of the ship Arctic, an American vessel registered at the port of Fairhaven, in the district of New Bedford, in the State of Massachusetts, which vessel was then on the high seas, to wit, in the Pacific Ocean. On the 30th day of the following April this vessel arrived'in the port of New York, and was at once seized as the property of Gibbs & Jenny, by an attachment issued at the suit of one Kobinson, a creditor of Gibbs & Jenny, residing in New York. On the next day but one'after the arrival of the vessel Crapo came to New
The question is, which proceeding gave the better title.
Certain propositions relating to the question are not disputed.
1. If the assignment under which Crapo claims had been the personal act of Gibbs & Jenny, it would have passed the title to the vessel wherever she might have been at the time of its execution.
2. If the vessel at the time of the execution of the assignment had been within the territorial limits of Massachusetts, the assignment, although not the personal act of Gibbs & Jenny, would have divested their title and that ,of all persons claiming under them* provided diligence has been used to reduce the vessel to possession.
• 3. If the vessel had been in the port of New York at the time of the execution of the insolvent assignment (there being no personal assignment), and had subsequently been seized there under attachment proceedings by a New York creditor, such attachment proceeding would have held the vessel as against the prior insolvent assignment.
The first of these propositions results from the fact that personal property, wherever it may be, is under the personal control of its owner, and the title passes by his actual transfer. The second is based upon the idea that the property being actually present and under the control of the law, passes by act of the law. The third proposition assufnes that a transfer by legal proceeding possesses less solemnity than one made by the owner himself; that each nation is entitled to protect its own citizens, and that the remedy by law taken by its citizens having the actual possession of the-corpus, ought to prevail over a title by law from another State, which is not accompanied by such possession. This principle authorizes the Massachusetts assignee to hold the property when in Massachusetts, and the NevvYork creditor
The present case is deficient in each of the elements necessary to bring the vessel within the range of the foregoing principles. She was not transferred by the personal act of the ownei’. She was not literally within the territory of Massachusetts when the insolvent-assignment took effect; and., thii’dly, she was'not in the port of New York.
The question then axuses, while thus upon the high seas w.as she in law within the territory of Massachusetts. If she was, the insolvent title will prevail.
It is not perceived that this vessel can be said to be upon United. States territory, or within United States jurisdiction, or subject to the laws of the United States x’egulating the transfer of pi'operty, if such' laws thex’e may be. Except for the pux’poses and to the extent to which these attributes have been tx’ausferred to. the United States, the State of Massachusetts possesses all the x’ights and powei’s of a sovereign State. By her own consent, as found in article 1 of the Constitution of the United States, she has abaixdoned her right to wage war, to coin money, to make treaties, and to do certain other acts thex’ein mentioned. None of the subjects thex’e mentioned'affect the question before us. The. third ax-ticle of that instrument extends the judicial power of the United States “to all cases of admiralty and mai’itime jurisdiction.” « This gives the power to the courts of the United States to try those eases in which ax’e involved questions arising out of rnaritime affairs,-and of crimes committed on the high • seas. To bring a transaction within that jux’isdictioix, it must be not simply a transaction which occurred at. sea, as the making of a. contract, but one in which the question itself is of a maritime nature, or arises out of á xnaritime affair, or it must be a tort or crime committed on the high seas. Over such cases the United States-courts have jurisdiction; that is, they are authorized to hear and deter
To Congress is also given power .“to define and punish piracies and felonies committed on the high seas, and of-fences against the law of nations.” It will scarcely be claimed that the title to property could be affected by this provision. Nor does the circumstance that the Arctic sailed under the flag of the United States and was entitled to the protection of that government against insult or injury- from the citizens or ships of other nations, touch the present point. ’None of these instances are like that of the passage of a bankrupt law by the United States, which acts directly upon the property of all the citizens of all the States, wherever it may be. Had the claim of either party to this vessel been based upon a proceeding under that statute, the title would have been complete, if the property had been within the territory or jurisdiction of any of the States of the Union.
It is not perceived, therefore, that the relation of Massachusetts to the Union has any effect upon the title to this vessel. It stands as if that State were an independent sovereign State, unconnected with the other States of the Union, The question is the same as if this assignment had been made iu London by a-British insolvent court, adjudicating Upon the affairs of a British subject.
"We'are of the opiuion, for the purpose we are considering, that the ship Arctic was a portion of the territory of Massachusetts, and the assignment by the insolvent court of that State passed the title to her, In the same manner and with the like effect as if she had been physically within the. bounds of that State .when the assignment was executed.
The rule is thus laid down by Mr. Wheaton in his treatise on International Law:
Chancellor Kent, in his Commentaries,
Wharton
Bischof, in his Grundriss des positiven internatirfnalen Seerechts,
"Wildman, in his treatise on International Law,‡ says: “ Provinces and colonies, however distant, form a part of the territory of the parent state. So of the ships on the high seas. The rights of sovereignty extend to all persons and things not privileged, that are within the territory.”
The adjudicated cases in this country are to the same effect. In Plestoro v. Abraham,
The case was carried to the Court of Errors of the State of New York, that bodj^ being composed of the chancellor, the judges of the Supreme Court, the lieutenant-governor, and the members o’f the senate. The record did not show distinctly that the vessel which brought the goods was a British ship, and on this point the chancellor’s order was reversed. Marcy, justice, and Throop, lieutenant-governor, eminent men and able judges, held that the 'assignftient in Great Britain divested the title of the bankrupt to personal property in this country, and that his property in a vessel on the high seas was likewise transferred. Maynard, Oliver,
Judge Story says,
If the title passed to the insolvept assignees, it passed eo inslanii the assignment was executed. It took effect then or never. The return of the vessel afterwards to America, her arrival in the port of New York, her seizure and sale there did not operate to divest a title already complete.
Again, the owners of this vessel and the assignees in insolvency were citizens of Massachusetts, and subject to her laws. It is not doubted that a sale of property between them of.property on board of this vessel, or of the vessel itself, would be regulated, by the laws of Massachusetts. It is not doubted that the vessel was taxable in Massachusetts only, or that if Gibbs or Jenny had been on board of the
If this véssel had never returned to the American shores but had gone to the bottom in the Pacific seas, after the assignment w7as complete, whose vessel would she have been at the time of such loss? There can be but one answer. The Massachusetts statute declares that this assignment vested in Crapo and his associates all the tiple and interest the insolvent had in this vessel. In other words it vested in them the absolute ownership. There was not then, pr for weeks afterwards, any- possible question of their title. The insurance-money upon the ship would have'been their property, and they would have been bound to collect it and distribute it among the creditors.
Personal property which has an established situs in another State, is no doubt governéd by the lex loci sites rei, so far that it will be governed in its distribution by the laws of the place where found, rather than the law of the domicile. This rule only applies where' such property has acquired an established situs. Until that occurs there can be no conflict of jurisdiction.
It is said, however, that the fact that the property on board a vessel at sea and the vessel itself, contracts respecting them ■and the distribution of the assets of the intestate, are regulated by the laws of Massachusetts, arises solely from the circumstance that the owner is a resident of that State; that jurisdiction of the parties it is, that gives the jurisdiction of these subjects. The authorities from Kent, Story, and Wheaton, aiid the continental authorities, the civil law be* fore cited, as w7ell as the decisions in Plestoro v. Abrahams, make the ship itself, under such circumstances, á part of the territory of the State to which its owner belongs. If he resides in Boston his property in the remotest county of the State is under the protection of its laws, as being upon and
Grotius
In the celebrated Trent Case, occurring in 1862, Messrs.' Mason aud Slidell were removed from a British private vessel by Commodore Wilkes of the San Jacinto, a public Vessel of .the United States. Great Britain insisted that the rights of a neutral vessel not only had been violated, for which she demanded apology, bu't she insisted that these persons should be replaced and returned on board a British ship. This was done, and they were actually placed on board a .British vessel in or near the harbor of Boston. They were not British subjects, and their return could only have been demanded for the-reason that they had been torn from British soil, and the sanctity of British soil as represented by a British ship had been violated. Citizenship or residence had no influence upon the question.
■This vessel, the Arctic, was upon the.high seas at the time of the assignment. The status at that time decides the question of jurisdiction. The State of New York had no juris
• Judgment reversed, and the case remanded for further PROCEEDINGS.
1 Stat. at Large, 122.
Mills v. Duryee, 7 Cranch, 483; Leland v. Wilkinson, 6 Peters, 317; United States v. Johns, 4 Dallas, 412.
5 Wallace, 310.
1 Parsons’s Maritime Law, 78, v. c. and n.; Abbott on Shipping, 6th American edition, 86 and n.; joy v. Sears, 9 Pickering, 4; Conard v. Atlantic In. Co., 1 Peters, 449.
Eighth edition, § 106, et seq.
Yol. i, p. 26.
Conflict of Laws, § 356.
See. 317.
Page 40.
Graz,' 1868; cited in Whiir ton’s Conflict of Laws, § 356, n.
1 Paige, 286.
4 Johnson’s Chancery, 460.,
20 Johnson, 229.
5 Cranch, 289.
12 Wheaton, 218.
3 Wendell, 644.
Id. 658.
Id. 667.
23 Wendell,'91.
Conflict of Laws, § 419.
Ib. § 391, and Thuret v. Jenkins, 7 Martin, 318, 353, 354.
Morgan v. Parham, supra, 471; Hoyt v. Commissioners, 23 New York, 224.
De Jure Belli, Book u, eh. iv, ?¿ 18.
Wheaton on International Law, \ 106.
Concurring Opinion
concurring in the judgment.
Unable to assent to the opinion of the court just delivered, I will proceed to state the reasons which induce me to concur in a reversal of the judgment brought here for re-examluation.
Ships and vessels of tfye United States, said Mr. Justice Nelson, are creations of the legislation of Congress. None can be denominated .such or be entitled to the benefits and privileges thereof except those registered or enrolled by virtue of the act for registering aud clearing vessels and. regulating the coasting trade, or those which are registered or enrolled in pursuance of the act for the registering and recording ships and vessels, or such as are duly qualified for carrying on the coasting trade and fisheries; and the provision is that they must be wholly owned by a citizen or citizens of the United States, aud that they shall not’continue to enjoy such benefits and privileges any longer than they shall be so owned, and be commanded by a citizen or citizens of the United States.
Governed by these views, this court held, in the Case first' cited, that Congress having created, as it were, this species of property and conferred upon it its chief value, under the power given in the Constitution to regulate commerce, that no serious doubt could, be. enthrtained but that the same power may be extended to the security and protection of the rights and titles of all persons'dealing therein. Sumí ships and vessels ate ships and vessels of'the United States and not of the several States in any international sense, and there are no authorities, whether judicial or such as treat of the law of nations, which support any different view, as the word state when used in the treatises upon the law of nations means the nation and not any subdivision of it, as is sometimes supposed.
American ships offending against our law may be seized by the executive authority upon the high seas, but a seizure of ships or vessels of one nation cannot be made within the jurisdiction of another for the infringement of its own revenue or navigation laws, as the act of seizure is a violation of the territorial authority of the nation within whose jurisdiction the seizure is made.
By the record it appears that the plaintiff, who is the present defendant, is the sheriff of the county where the
Two principal questions are presented for decision-: (1) Whether the property in the ship, testing the question by
Property may be attached on .mesne process in that State, and if it be true that the property in the ship, testing the question by the laws of that State, did not pass to the assignees of the insolvent debtors by virtue of the instruments of assignment, further examination of the case is unnecessary, as it must plainly follow that there is no error in the record, and that the judgment should be affirmed.
“Pull faith and credit,” the Constitution ordains, “shall be given in each State ... to the judicial proceedings of every other State; and that Congress may, by-general laws, prescribe the manner in which . . . such proceedings shall be proved, and the effect thereof.” Congress accordingly enacted that “judicial proceedings . . . shall have such faith and credit given to them in every court within the United Stafés as they have, by law or usage,- in the courts from •whence” they shall be taken.
Discussion of those provisions is unnecessary at this time, as their true intent and meaning have been fully explained by the decisions of this court. Congress, say the court in Mills v. Duryee,
Such an assignment, as a general rule, passes the whole of the property of the insolvent debtor,' except what is -exempted from attachment; or, in other words, the rights of
Where the rule of the State courts is that all the property
Had the ship been in the home port it is not denied that the insolvents could have conveyed it for a valuable consideration before the decree'in insolvency was passed, nor that personal property under those circumstances, if it had been previously conveyed in fraud of the Bankrupt Act, would have passed to the assignees by virtue of the assignment executed to them by the, judge of the court of insolvency. Doubt cannot be entertained upon that subject, and it is equally clear by all the authorities that ships at sea and goods to arrive páss to a purchaser for value, if the purchase is made in good faith, just as éftectually as if the ship was moored at her wharf- and the goods were deposited in a warehouse. Owners of. ships, says Mr. Parsons, ought to be able to sell their ships though at sea and employed in making voyages, and the rule which he lays down is in substance and effect that a bond fide, sale, on consideration, with whatever transfer of papers and of registry can. be made, is valid if possession be Raícen by the purchaser as soon as is practicable by reasonable endeavor, however long it may be before such possession is or can-be taken; that such a sale does not merely give an inchoate right to be completed by possession, as the whole property in the ship passes to the purchaser, and the sale operates as a complete transfer thereof, vesting the property in the purchaser, liable only to be divested by his laches in taking possession. Such a purchase, he insists, is valid; and he adds, as a second proposition, that the purchaser is not bound to go or send.to a distant port to take possession, but may safely wait the arrival of the vessel in her home port.
Further argument to show that the one undivided half of the ship, which belonged to the insolvents, passed to the assignees by the laws of the State, is certainly unnecessary, as it is believed no different rule prevails anywhere, either in England or in the United States.
By the insolvent law of the State it is provided that the judge shall, by an instrument under his hand, assign and convey to the assignee all the estate, real and personal, of the debtor, except such as is by law exempt from ■ attachment, with all his deeds, books, and papers relating thereto; and it cannot be doubted that the instrument required to be executed by the judge pursuant to that section was intended to have the effect to convey and assign to the assignee all the estate, real and personal, of every name and nature, and that proposition is confirmed by the fact that the seventieth séction makes it the duty of the debtor, at the request of the assignee, to do what may be necessary and useful to
Tested' by these considerations, it is quite clear that the effect of the assignment, when duly executed by the court of insolvency, as there regarded, was to vest in the assignees the one undivided half of the' ship which previously belonged to the insolvent debtors, and the settled law of this court is that in such a case every other court in the United States, whether State or Federal, in which such a proceeding comes under revision, is bound to give it the same effect it would receive in the courts of that State.
Attempt is made to show that the rule laid down in Green v. Van Buskirk, is not applicable to the Case before the'court, as the ship was upon the high seas, and the suggestion is that the insolvent laws of a State do not have any extraterritorial operation, but the Constitution is operative in the State vfhere the plaintiff resides, as well as iu the State which iis the domicile of the defendants; and the act of Congress passed in pursuance of the Constitution, provides that such judicial proceedings shall have such faith and credit given to them in every other court within the United States as they have, by law or usage, in the courts of the State from whence they shall be taken.
Evidently the Court of Appeals did not give the proceedings in question the,same effect as they have by law and usage in the- courts of the State where the statute'assignment was executed by the judge of the court of insolvency, and for that reason the judgment should be reversed.
1 Stat. at Large, 55; lb. 288.
White’s Bank v. Smith, 7 Wallace, 655; Brig Martha Washington, 25 Law Reporter, 22.
The Flora, 11 Wheaton, 42; The Apollon, 9 Id. 371; 4 Opinions of the Attorney-General, 285.
1 Stat. at Large, 122.
Christmas v, Russell,5 Wallace, 302; Bissell v. Briggs, 9 Massachusetts, 462; 2 Story on the Constitution, 3d ed. 1313.
Hill v. Smith, 12 Meeson & Welsby, 618; Russell v. Bell, 10 Id. 352.
Carr v. Hilton, 1 Curtis, 233; Bingham v. Jordan, 1 Allen, 374.
3 Metcalf, 525.
Fiske v. Hunt, 2 Story, 584; Cooper v. Henderson, 6 Binney, 189; Robson on Bankruptcy, 336.
Bank v. Horn, 17 Howard, 160; Robson on Bankruptcy, 642.
Parsons on Shipping, 83; Hilliard on Bankruptcy, 107.
Bank v. Stacey, 4 Massachusetts, 661; Bank v. Stubbs, 6 Id. 422; Putnam v. Dutch, 8 Id. 287; Tucker v. Buffington, 15 Id. 477; Badlam v. Tucker, 1 Pickering, 389; Gardner v. Howland, 2 Id. 599; Joy v. Sears, 9 Id. 4; Pratt v. Parkman, 24 Id. 42; Turner v. Coolidge, 2 Metcalf, 350; Winsor v. McLellan, 2 Story, 492; Brinley v. Spring, 7 Greenleaf, 241; Wheeler v. Sumner, 4 Mason, 183.
Seventh edition, 31.
Tenth edition, 421.
2 Commentaries (11th ed.), 501; Story on Sales, \ 312; Benjamin on Sales, 516. •
Gibson v. Stevens, 8 Howard, 399.
Conard v. Insurance Co., 1 Peters, 449.
General Statutes, 586, 590.
Green v. Van Buskirk, 7 Wallace, 145; S. C., 5 Id. 310.
Dissenting Opinion
with whom concurred Mr. Justice IIELD, dissenting.
I dissent from the judgment of the court in this case. According to my view, whilst the disposition of his movable property by the owner is respected by the laws of all States
I think the case comes clearly within the operation of the three fundamental rules or axioms laid down by Huber in his Praelectiones, which constitute the groundwork of Justice Story’s Treatise on the Conflict of Laws. “ The first is, that the laws of . every empire have force only within the limits of its own government, and bind all who are subjects thereof, but not beyond those limits. The second is, that all persons who are found within the limits of a government, whether their residence is permanent or temporary, are to be deemed subjects thereof. The third is, that the rulers of every empire, from comity, admit that the laws of every people, in force within its own limits, ought to have the same force everywhere, so far as they do not prejudice the powers or rights of other governments or of their citizens.”
And whilst in many particulars the vessels, especially the public vessels, of a country will be regarded as carrying with them the jurisdiction of that country, I cannot concede that
Reference
- Cited By
- 65 cases
- Status
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- Syllabus
- ,A. of Massachusetts, owning a ship then on the high seas hound for the port of New York, hut registered in Massachusetts, applied to the insolvent court of Massachusetts for the benefit of the insolvent laws of the State, and under the statutes of the State the judge of the insolvent court executed and delivered to the assignee in insolvency a transfer of all the debtor’s property, the effect of which, under the statute, was to convey to the assignee all.the debtor’^ property “which he could have lawfully sold, assigned, or conveyed.” The debtor himself executed no transfer. After this, the ship being still on the high seas, B., of New York, sued A. in a New York court for a money debt, and in accordance with the-lawp of New York respecting non-resident debtors issued an attachment against his property. The ship arrived in port a few days afterwards and was attached by the sheriff at B.’s suit. On a suit in New York, .between the assignee in insolvency appointed by the Massachusetts court and the sheriff of New York, to determine with whom was the prior right, whether with ohe*Massaehusetts assignee in insolvency or the New York attaching creditor, it was held by the highest court of. New York that the prior right was with the New York attaching creditor. • On appeal to this court, where a question as to its jurisdiction to review the decision of the New York court was raised, as a preliminary point. Held— 1st. ^hat the New York court necessarily decided what effect the insolvent proceedings in Massachusetts had by the law and usage in that State, and that as it decided against the effect which the defendant set up for them, this court had jurisdiction to review the judgment of thfe New York court. 2d. That for the purposes of this suit, the ship though .on the high seas was a portion of the territory of Massachusetts, and that the assignment by the insolvent court of that State passed the title to her, in the' same manner and with the like effect as if she had been physically within the bounds of that State when the assignment was executed.' 3d. That accordingly the assignee in insolvency had the prior right, and that the judgment below was wrong.