Atlantic & North Carolina Railroad v. Atlantic & North Carolina Co.

147 N.C. 368
CourtSupreme Court of North Carolina
DecidedApril 15, 1908
StatusPublished
Cited by47 cases

This text of 147 N.C. 368 (Atlantic & North Carolina Railroad v. Atlantic & North Carolina Co.) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Atlantic & North Carolina Railroad v. Atlantic & North Carolina Co., 147 N.C. 368 (N.C. 1908).

Opinion

Hoke, J.,

after stating the case: The contract by reason of Avhich this recovery was had and its effect and binding force as between the original parties were construed and determined in Ives v. Railroad, 142 N. C., 131, and it was there held that the contract was for the cutting and delivery to the present plaintiff on its right of way a specified amount of cord wood, and was not therefore within the statute of frauds requiring that contracts concerning land should be in writing. The judgment obtained by Ives in that case having been paid off and discharged, the plaintiff instituted this action to recover of the present defendant the amount of that judgment and the cost and reasonable expense incurred in defending the suit.

Such recovery is resisted on the grounds chiefly (1) that the contract in question was not assignable; (2) that as a matter of fact it was not assigned. But we are of opinion that neither position can be sustained.

While at common law the rights and benefits, of a contract, except in the case of the law merchant and in cases where the crown had an interest, could not be transferred by assignment, a doctrine which Lord Coke attributes to* the “wisdom and policy of the founders of our law in discouraging maintenance and litigation, but which Sir Frederick Pollock tells us is better explained as a logical consequence of the archaic view of a contract as creating a strictly personal obligation between the debtor and creditor,” the rule in its strictness was soon modified in practical application by the conunon-law courts themselves and more extensively by the decisions of the courts of equity; and the principles established by these eases have been sanctioned and extended by legislation until now it may be stated as a general rule that, unless expressly prohibited by statute or in contravention of some principle of public policy, .all ordinary business contracts are assignable, and that actions for breach of same can be maintained by the assignee in his own name.

[375]*375The general doctrine as to the assignability of rights is very well stated in Pomeroy’s Equity Jurisprudence (Yol. Ill), see. 1275, as follows: “What Things in Action Are or Are Not Assignable. — It becomes important, then, in fixing the scope of the equity jurisdiction, to determine what things in action may thus be legally assigned. The following criterion is universally adopted: All things in action which survive and pass to the personal representatives of a decedent creditor as assets, or continue as liabilities against the representatives of a decedent debtor, are in general thus assignable; all which do not thus survive, but which die with the person of the creditor or of the debtor, are not assignable. The first of these classes, according to the doctrine prevailing throughout the United States, includes all claims arising from contract, express or implied, with certain well-defined exceptions; and those arising from torts to real or personal property and from frauds, deceits and other wrongs whereby an estate, real or personal, is injured, diminished or damaged. The second class embraces all torts to the person or character, where the injury and damage are confined to the body and the feelings; and also those contracts, often implied, the breach of which produces only direct injury and damage, bodily or mental, to the person, such as promises to marry, injuries done by the want of skill of a medical practitioner contrary to his implied undertaking, and the like; and also those contracts, so long as they are executory, which stipulate solely for the special personal services, skill or knowledge of a contracting party.”

And an interesting and well-considered article by Prof. Frederick 0. Woodard on the assignability of contracts will be found in 18 Harvard (Law Review, Vol. XVIII, No. 1, p. 23). There is an exception, as indicated in the last part of this citation from Pomeroy, to the effect that executory contracts for personal services involving a personal relation or confidence between the parties cannot be assigned. Lawson on Contracts, sec. 355. And another, equally well established [376]*376and well-nigh as broad as tbe rule itself, is that executory contracts imposing liabilities or duties wbicb in express terms or by fair intendment from tbe nature of tbe liabilities themselves import reliance on tbe character, skill, business standing or capacity of tbe parties cannot be assigned by one without tbe assent of tbe other. This last exception and tbe reason upon wbicb it rests are stated by Juskice Gray, delivering tbe opinion in Delaware v. Diebold, 133 U. S., p. 488, as follows : “A contract to pay money may doubtless be assigned by tbe person to whom tbe money is payable, if there is nothing in tbe terms of tbe contract wbicb manifests tbe intention of tbe parties to, it that it shall not be assignable. But when rights arising out of contract are coupled with obligations to be performed by tbe contractor .and involve such a relation of personal confidence that it must have been intended that tbe rights should be exercised and tbe obligations performed by him alone, tbe contract, including both bis right and bis -obligations, cannot be assigned without the consent of tbe other party to tbe original contract,” citing tbe case of Arkansas Co. v. Belden Co., 127 U. S., 379. And tbe same principle is stated in Clark on Contracts, 364: “It may be said generally that anything wbicb involves a right of property is assignable, with tbe exception that rights, when coupled with liabilities under an executory contract for personal service or under contracts otherwise involving personal credit, trust or confidence, cannot be assigned.”

It is contended that, by reason of those exceptions stated in tbe authorities referred to, tbe contract before us was not .assignable so as to impose liability of performance on de- - fendant lessee, but we think tbe position is not well taken. In tbe first place, tbe exception noted arises for tbe protection of tbe other party, and if such party assents, as be did in this instance, tbe restriction no longer exists. But, apart from this, it will be noted that tbe exception referred to doés not arise or apply when the contract is entirely objective in its [377]*377nature, and. gives clear indication that the personality of the other contracting party was in no way considered. Anson on Contracts, p. 288; Clark on Contracts, p. 360. And this limitation imposed on the exception itself is applied and extended in numerous and well-considered decisions of courts of the highest authority. Horner v. Wood, 23 N. Y., 350; Devlin v. City, 63 N. Y., 8; New York v. Railway Co., 113 N. Y., 311; Lantern Co. v. Stiles, 135 N. Y., 209; City of St. Louis v. Clement, 42 Mo., 69; Galey v. Mellon, 172 Pa. St., 443; Tolhurst v. Cement Co., H. L. App. Cases (1893), p. 414; Wagon Co. v. Lea & Co., L. R. Q. B. (Vol. V, 1879-1880), p. 149.

In Devlin v. City of New York, supra, the general principle we are discussing is stated and applied as follows: “1. Where an executory contract is not necessarily personal in its character, and can, consistent with the rights and interests of the adverse party, be fairly and sufficiently executed as well by an assignee as by the original contractor, and where the latter has not disqualified himself from a performance of the contract, it is assignable. 2.

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Bluebook (online)
147 N.C. 368, Counsel Stack Legal Research, https://law.counselstack.com/opinion/atlantic-north-carolina-railroad-v-atlantic-north-carolina-co-nc-1908.