Commonwealth v. Colquhouns
Commonwealth v. Colquhouns
Opinion of the Court
Colquhoun and others brought a suit in the H. C. C. against the Auditor for the value of certain tobacco purchased by them, the notes for which they had; but on application for the tobacco itwasnot delivered, having been embezzled, as was alleged, by one of the inspectors, both of whom were insolvent. Upon a demurrer to the bill the Chancellor decreed that the Commonwealth was liable for the tobacco thus embezzled. The Auditor appealed.
On the part of the Commonwealth it is contended,
1. That according to the true interpretation of the tobacco-laws the Commonwealth is- not liable for the misconduct of the inspectors, in case of insolvency.
2. That she cannot be made liable in any case where she is not expressly made liable by those laws.
On the part of the appellees it is contended,
That the Commonwealth is liable for the misconduct of the inspectors in the same manner that any common bailee of goods is, or may be liable for the misconduct of his agents and servants.
The laws for the inspection of tobacco made at several periods in this country, have had for their object the improvement of that staple commodity, and the benefit and security of all that make, or deal in it. The planter is secured from participating in the loss, whiph might otherwise be sustained by the whole community, in consequence of the fraudulent, or slovenly conduct of unprincipled men, who might wish to put off mere trash for a valuable commodity ; the merchant on the other hand is equally secured against these frauds; and purchases with confidence on the evidence of the tobacco-note, that the commodity is sound and merchantable. Laws made with a view to these objects must be compulsory, must be penal in order to., be beneficial. Numerous are the penalties which they
Notwithstanding the special acts made at different times, we find no general provision in any subsequent law, to recompense the sufferers on future occasions of the like kind, the Legislature seeming to reserve them to be acted upon by their own body, occasionally. “ The case of embezzlement no doubt appeared to them to be sufficiently provided against by the high penalty of double the value, imposed by the 21st sect, of the act 1792, c. 135. on any inspector who should fail or refuse to deliver any hogshead of tobacco, when demanded for exportation. The remedy was probably commensurate to any offence which the Legislature could imagine might happen, within the space of a year, or perhaps a few months, weeks, or days; since the warehouses were always to be open for the application for
Whether the state can be made liable, in any case in which the Legislature have not expressly declared she shall be liable ?
It was strongly urged by the appellees’ counsel that the act declaring that a petition to the H. C. C. or District Court of Richmond\ shall be allowed to all persons entitled to demand against the Commonwealth any right, in law or equity ;
The undertaking on the part of the State to insure all persons against the misconduct of inspectors has been inferred from a variety of circumstances ; The negotiability of tobacco-notes ; their being receivable in taxes, and in discharge of executions. All these are circumstances growing out of the relative state of commerce, at the time those laws were made, but do not, I conceive, impose any obligation upon the State ; they were all in fact, calculated for the benefit of the merchant in their final operation. His remittances were to be made in that article, and every fact-
But the warehouses are said to belong to the State ; this is a mistake ; they belong to private persons, who receive either a stated rent per annum ; or storage at the rate of 25 pents per hqgshead, for one year, and five cents per month afterwards, to be paid by the shipper : If the owner of the ground where the warehouse is proposed to be established^ refuses to build one, in that case, indeed, the warehouse Is to be built at the expense of the public : but that was not the case in this instance, and it is believed there are few or. none where it has been done. The inspectors are considered also as the special agents of the State, acting for its benefit, and emolument; and from hence the State is considered in the light of an ordinary bailee of goods, and as responsible for the fraudulent conduct of those agents.
Upoii the mast mature consideration, I cannot distinguish the inspectors of tobacco from other public officers. If a sheriff take goods, slaves or chattels in execution, is the State liable for his peculation, although (as has happened in some counties) the sheriff and his securities should all prove insolvent, or run out of the State ? no one will pretend it. If the clerk of a Court loses a will, a deed, oy a record, and by negligence has his office burnt and destroyed, is the State'liable for his misconduct ? This is not pretended. Why .then, is the State liable for the misconduct of an inspector Because, say the counsel for the appellees, the State draws a revenue from the tobacco. How - ever that fact may be, it does not constitute any part of the
By the 37th sect. of the tobacco-law, if any of the warehouses therein mentioned shall happen to be burnt, the loss sustained thereby shall be made good, and repaid, to the several per sons injured, by the General Assembly, This clause Is in the nature of a compact on the part of the State, and this Court, in such a case; might be authorised to decree a specific performance of it, utider the act which allows a petition to the High Court of Chancery* But what if it should appear that the the tobacco burnt had been permitted to remain twelve months' in the warehouse after the date of the receipt. The owner or proprietor of it must bear the . loss and not be paid for it by the public. Here the terms of the compact are changed, according to the circumstances of the case — nor could a Court of Equity vary the obligation which the State has contracted voluntarily, in the smallest respect. Neither can it extend the obligation to any other case of accident but that of fire 5 that being the only one provided for by the law.
Upon the whole of this case, I think the State is not liable; and therefore, that the decree ought t» be reversed, and the appellees’ bill dismissed.
The principal object of the acts regulating the inspection of tobacco, is, to preserve the purity of that staple. This is evident, as- well from a general review of them, as from the second section of the act of 1654 ;
That section declares, that “ for the more effectual pre ‘‘ venting the exportation of trash, bad, unsound, and un- “ merchantable tobacco,” all tobacco which shall be exported, shall be first inspected according to the directions of the act. This important purpose is not the less the great object of the policy of the act, because, as incidental thereto, and depending thereupon, another beneficial purpose is effectuated thereby — namely, that the receipts for the tobacco during its continuance in the several warehouses, are made to answer some of the purposes of cash. This-latter, however, is certainly an incidental consequence, and is no where declared to be the primary object of the act» Notwithstanding this latter provision also, in relation to the currency and qualities of tobacco-notes, during their existence and circulation, it is clearly the object of the act, that the tobacco should remain but a short time in the several warehouses. This is evident from the provision,
This was not only not contemplated, but even if it were,, it is better for the planters and those claiming under them, (admitting the irresponsibility of the government in the case in question, and laying no stress, at present, upon the great convenience and accommodation resulting to them, from the creation and currency of tobacco-notes,) that their tobaccoes should remain in secure warehouses and under the care of officers of great integrity and responsibility, than in any private hands whatsoever. Be this matter, however, as it may, the planters are under no obligation to carry their tobaccoes to be inspected, until it is intended to be exported; neither they nor those who claim under them are compellable to retain it there a moment after it is inspected, but may immediately cause it to be exported ; (at tbe same time it is to be remarked, that it would have entirely defeated the object of the inspection laws to permit the planters, after inspection, to take away their tobaccoes, for any other purpose than that of exportation;) and they may choose, throughout the whole State, that warehouse which.appears to them the most secure, and those inspectors whom they deem the most upright and Worthy of confidence. It will presently be seen that the Legislature has been very vigilant to insure the existence of the one and the other.
The primary object of the inspection acts being, as I have supposed, at all times the preservation of the purity of the staple, it perhaps never was intended to derive a re-* venue from the system : at any rate, it neyer was intend
In the establishment of the inspection system, however, it was found necessary that certain officers should be appointed who do receive a r exoar d for this among other services. That rexvard is found to exist in the salaries, paid to the several inspectors, and in consideration of which the doctrine of bailment will (as to them) undoubtedly attach. As to the Commonwealth, however, no reward or salary is received by it for the services in question, and the taxes paid upon the inspection of tobacco (however they furnish a salary to the individual inspectors) can only be considered as “ duties absolutely necessary for the execution of the
Although the salaries of the inspectors are paid by the Commonwealth, it is not doubted but that they enure to the benefit of every person aggrieved by their breach of duty, so far as the principles of law or the positive provisions of the act, will go to charge them. It is admitted on all hands, (and accordingly the appellees have tried their remedy at law,) that those principles and provisions will go to charge the inspectors, in the case of an embezzlement: But the question here is, whether the Commonwealth be also liable in the case which has happened.
On general principles, if it was not contemplated nor expected, that the tobacco would remain long in the warehouses, there is the less reason for adopting a construction making the State liable, than if (as was argued) it was the principal object of the act to procure a permanent and compulsory deposit'of this commodity for the purpose of creating a circulating currency : In other words, a system whose principal object was the safe keeping of articles for hire, ought naturally to yield a better security for their safe return, than one where the deposit is for another purpose, and where the custody of the article is merely transitory and incidental. It is now to be seen whether the particular provisions in and constructions arising out of the act in question, support or overrule this principle in the case before us ; nq position being more clear than that “ modus et conventio vincunt legem?
By the act of 1792
The inspectors’ bonds, of which there are two given with good security, annually, at each warehouse, I presume enure to the benefit of persons whose tobaccoes are embezzled. I consider that this is the case because the condition thereof, as well as the oath, is to perform their duty according to the directions of the act, one of which directions is, to deliver out all tobacco when demanded for exportation. A person whose tobacco is embezzled and, refused to be delivered when demanded for exportation, is a person injured within the meaning of the act, and has, ex debito justicia, a right to put the bond in suit. The case of the Archbishop of Canterbury v. House,
It is true that the act in question while it is profuse in declaring the liability of the inspectors in cases like the present, does not declare, totidem verbis, the exemption of the Commonwealth from l-esponsibility. This would have been supererogation, in consequence of the- general considei-ations before mentioned, and particularly from the non-existence of a reward on the part of the Commonwealth, without which the doctrines of bailment do not regularly attach. The sense of the Legislature, however, on this subject may be sufficiently collected from the act. lit the 3'flh sect, of the act of 15(92, p. 267. it is provided that if any warehouse herein mentioned shall happen to be burnt, the loss thereby sustained shall be made good by the General Assembly, and in case of such accident no inspector shall be sued or molested for or by reason of any receipts by them given for the tobacco so burnt, but shall be altogether acquitted or discharged of and from the payment of the tobacco mentioned in such receipts, any thing herein before contained to the contrary notwithstanding. Under the
Thus it seems to be the true construction of the act, that in case of this “ accident,” (and also, in that mentioned in the argument, of the loss produced by a great fresh, and perhaps in some others,) which no care, integrity nor prudence on the part of the inspectors could possibly have averted, the Commonwealth should be bound to indemnify the owners ; leaving them at the same time to be recompensed by the inspectors for all losses of a contrary character, to be made good by them in consideration of the reward paid to them for their services.
I am therefore of opinion that the decree should be reversed, and the bill dismissed.
It is sound policy in every commercial country to take care that their several articles of exportation be of a good, sound, merchantable quality; and under this impression, our Legislature have from time to time judged it expedient to pass laws for the inspection not only of tobacco, but of bread, flour, meal, fish, pork, beef, hemp, tar, pitch, turpentine, and even lumber; and tobacco being the principal staple of our country, the greater part of which is annually exported to foreign markets, it was a great object of qur Legislature that its quality should, be equal, if not superior to that carried to market from other countries ; that it might command a better price i hence the act commonly called the “ tobacco-laxvf which has been varied from time to time, as circumstances seem
It is not contended but the Legislature had a constitutional right to pass the law: thatbeing admitted, it follows of Course that they had a right to do it under such regulations and modifications as- to them, from time to time, seemed expedient, aiicl most likely to be beneficial to the community at large: but it by no means, as I conceive, placed the Commonweahhjjinthe state or condition of a common bailee,-and made it responsible for all the losses that might be sustained by the owners of tobacco in'the several warehouses.
By the 37th sect. of the act of 1792 (as was done in ma -- ny of the former acts) it is provided that where a warehouse shall happen to be burnt, the -loss sustained thereby shall be made good by the General Assembly, and the inspectors indemnified: but further the Legislature did not go-«--reserving-to themselves the discretion of making compensation for all other losses, or not,- according to circumstances, by special provision; as was done, I believe for the losses sustained by the great fresh, in the year 1771, and on several ether special occasions.
The law requires
It seems a hard case on the appellees, but they must seek relief from another quarter.
The decree was rev ersed, and the bill dismissed with costs.
Ed. 1785, p. 16.
Ib. p. 20.
Ib. l58,
L. V. 1794, c. 85. sect. 5.
Ed. 1769, p. 420.
Rev. Code, vol. 1. c. 135. sect. 4 & 5. p. 254.
P. 267. sect. 37.
P. 263. sset. 28.
Rev. Code, vol. 1. c. 135, sect. 11. p.256.
P. 266.
Ib. p. 365.
Sect. 5. p, 254.
P. 257. sect. 14.
Ibid.
Ib. sect. 16.
P. 261, sect. 21.
Cowp. 140.
1 Wash. 31
Act of 1792, sect. 14.
The Commonwealth, when the decision is in its favour, recovers costs ; though it does not pay costs, when cast in a suit.
Reference
- Full Case Name
- The Commonwealth against Colquhouns and others
- Status
- Published