Levinson v. United States
Opinion of the Court
delivered the opinion of the court.
This is a controversy between the appellant, Levinson, and Johnson, one of the appellees, as to which of the two is entitled to the steam yacht Wadena. The yacht had been taken for the purposes of the late war and subsequently was offered for public sale by the Secretary of the Navy in pursuance of an Executive Order of January 7,
The District Cburt decided in favor of Levinson. Both Johnson and the United States appealed. The Circuit Court of Appeals dismissed the appeal of the United States on the ground that it was a mere stakeholder, but, one Judge dissenting, reversed the decree of the District Court and decided in favor of Johnson, on the ground that the Secretary of the Navy had no authority to accept any other than what was the highest bid in fact. 267 Fed. 692.
We are of opinion that the Circuit Court of Appeals construed the authority of the Secretary of the Navy too narrowly and that the decision of the District Court was right. The Act of 1883, § 5, provides for an appraisal
It seems to us that the practices of ordinary business dealing ought so far to bind the United States that the ostensible authority given by the executive order, the Secretary’s declaration that Levinson’s bid was the highest, his approval of the price, and his execution of a bill of sale, should be held conclusive in fávor of Levinson. The fact that the Secretary advertised that he would sell to the highest bidder could not limit his authority or diminish the effect of his acts. Even if Johnson’s bid had made a contract automatically by being the highest, it would not follow that Leyinson’s title was bad. But-a bid had no such effect, as the right to reject it was reserved. We can see no justification beyond the wish to secure a higher price, for the refusal to allow the appellant to remove his yacht. The title passed to him upon the execution of the bill of sale. Hatch v. Oil Co., 100 U. S. 124, 128.
Decree of Circuit Court of Appeals reversed.
Dissenting Opinion
dissenting.
The opinion, in my view, gives too much prominence to the action of the Navy Department and, in effect, determines the case by it as if the controversy were between the Department and Levinson, and not between him and Johnson. It caused the controversy, indeed, and by its mistake gave a right to Levinson to which Johnson was entitled. Has the law no redress for the injury thus inflicted? It would be a reproach to it if it have not.
Let. me repeat the facts. In pursuance of a statute, and in the manner directed by it, the Navy Department offered the yacht Wadena for sale. It was the duty of the Department to the Government of which it was an instrument to accept the highest bid, and it owed a duty as well to him who should be the highest bidder. Johnson responded to the offer of sale and, his bid was the highest. By mistake, however, the bid was assigned to a boat of similar name. In consequence of the mistake Levinson was considered the highest bidder and a bill of sale was issued to him. Before the delivery of the yacht, however,
Accident is said to be one of the oldest heads of equity jurisdiction, ,and a learned authority says its -first and principal requisite is, that, by an event not expected nor foreseen, one party has without ffiult and undesignedly undergone some legal loss while another party has acquired a legal right which it is contrary to good conscience for him to retain and enforce., 2 Pomeroy, § 824. .
The requisites and consequences are in this case, and exhibit the relative situations and rights of Levinson and Johnson. Levinson has acquired a rigTit to which Johnson was entitled and which Johnson lost by an'accident to which he was not a contributor. The law in its sufficiency and prudence meets such contingent happening and gives a remedy to prevent or redress its injury. That Levinson was given a bill of gale is not a serious1'deterrent. As the bill of sale could have been refused it can be disregarded as an element of decision. '
Mistake as well as accident (mistake may be considered a corollary of accident) is a ground of relief which the law’s remedia,! consideration furnishes for the redress of
It was the view of the Circuit Court of Appeals in a well reasoned opinion that the Secretary of the Navy had “ no authority to deliver the bill of sale to Levinson ” but was “ bound to deliver it to Johnson.” There is much to sustain the decision; I, however, base my dissent upon the views that I have-expressed, and think that the judgment of the Circuit Court of Appeals should be affirmed.
Reference
- Full Case Name
- Levinson v. United States Et Al.
- Cited By
- 17 cases
- Status
- Published
- Syllabus
- 1. A suit in the nature of interpleader by the United States against one to whom it had given a bill of sale of a vessel and another whose bid had been overlooked, to determine their rights, held cognizable in equity (all parties consenting) although the plaintiff ' did not stand indifferent but sought to maintain the higher bidder’s claim and thus get the higher price. P. 200. 2. Under the Act of March 3, 1883, c. 141, § 5, 22 Stat. 599, governing sales of vessels not needed for the Navy, the President is empowered to direct a departure from the prescribed manner of sale, and his direction to the Secretary of the Navy to sell “ for such price as he shall approve,” empowered the latter to sell to the lower of two bidders, notwithstanding the advertisement was that the sale would be to the highest bidder. P. 201. 3. The Secretary, overlooking a higher .bid by mistake, approved a lower one as the highest and issued a bill of sale of the vessel accordingly. Held, that his action was conclusive in favor of the lower bidder and that the mistake, not attributable to the latter,' gave the competitor no equitable claim to the title. P. 201. 4. An appeal here from a decision of the Circuit Court of Appeals adjudging property to one of two interpleaded defendants, held not affected by entry of decree, under that court’s mandate, in the District Court, and the act of the plaintiff in delivering the property under it. P. 202.