Blythe v. Johns

5 Binn. 247, 1812 Pa. LEXIS 60
Supreme Court of Pennsylvania·Decided October 5, 1812·Published

Opinion

Tilghman C. J.

This is an action of debt upon bond, brought by Johns the plaintiff below, against Blythe and Nicholson. Blythe pleaded that he had been discharged as a certificated bankrupt, under the act of Congress of the United States, and that the cause of action accrued previous to the time of his bankruptcy. The plaintiff replied that the certificate was unfairly obtained, and thereupon issue was joined. On the trial, the plaintiff offered evidence to prove that Blythe was not a trader within the meaning of the act of bankruptcy. This evidence was objected to, and admitted by the Court, to whose opinion the defendant took an exception; and the question now to be decided is, whether the certificate of the commissioners is conclusive evidence of the trading and bankruptcy? It is not a new: question, but has been well considered and determined in other courts, though not in this.

The act of Congress, so far as concerns this point, is substantially the same as the British statute of S Geo. 2. c. 30, and the former bankrupt law of this state. The thirty-fourth section of the act of Congress is thus expressed. [The Chief Justice here repeated the section.] It is very evident, that when a matter is allowed to be prima facie sufficient evidence, it is not intended to be con-[249] elusive evidence. Such a construction would be a violation of the plain meaning of the words. Besides, where Congress meant the evidence to be conclusive, they have taken care to say so; for in the 56th section it is declared, that in all cases where the assignees shall prosecute any debtor of the bankrupt for any debt, the commission or a certified copy thereof, and the assignment of the commissioners of the bankrupt’s estate, shall be conclusive evidence of the issuing of the commission, and of the person named therein being a trader and bankrupt at the time mentioned therein. The reason why the proceedings were made conclusive evidence in one case and not in the other, is very obvious. In an action against a debtor of the bankrupt, it was of no importance to the debtor to whom he paid the money, provided the debt was due. It was very proper therefore to make the proceedings of the commissioners conclusive evidence in that case. But in an action by a creditor to recover a debt due from the bankrupt, it is of the utmost consequence to en-quire whether the defendant was really an object of the bankrupt law; for if'he was not, the plaintiff ought not to be barred from his recovery. In such cases it was right that the proceedings of the commissioners should be prima facie evidence, because it saved the trouble of summoning witnesses, who might live in remote places; and some credit was reasonably due to the acts and opinions of the commissioners, who must be supposed to be impartial and respectable judges, deciding upon evidence produced to them. The burthen of proof would be thus thrown where it ought to be, upon those persons who objected to the proceedings. Let us return then to the act of Congress, by which it is expressly permitted that evidence may be given of the certificate having been unfairly obtained. This is the very same expression used in the British and in the Pennsylvania statute. And the meaning of that expression was brought directly before the Court of Common Pleas, in the case of Pleasants v. Meng et al., 1 Dall. 380. That case was decided by Mr. President Shippen, who delivered a very able opinion. He held, that unfair was tantamount to illegal, because if a man had not been a trader, or had not committed an act of bankruptcy, it was unfair to grant him a certificate. This construction accords with the spirit of the act of Congress, be[250] cause, when it is said, that the certificate shall be “prima facte evidence of the party’s being a bankrupt within the “ meaning of the act,” it must be understood that it is prima facie evidence of the trading, and all those other circumstances necessary to constitute a bankrupt. Of course, it being only prima facie evidence, it must be competent to the creditor who sues the bankrupt, to oppose this prima facie evidence, by other contradictory evidence. So that to make the whole provision in the 34th section consistent, the expression obtained unfairly, must be construed so as to permit the plaintiff to shew, that the person who obtained a certificate was not a trader, and consequently not a'bankrupt within the meaning of the act.

I am therefore of opinion, that the Court of Common Pleas were right in admitting the evidence, and that the judgment should be affirmed.

Yeates J.

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Blythe v. Johns, 5 Binn. 247, 1812 Pa. LEXIS 60 (Pa. 1812).

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Related

Pleasants v. Meng
1 U.S. 380 (Supreme Court, 1788)