Clarke v. Bank of Mississippi

5 Ark. 516
CourtSupreme Court of Arkansas
DecidedJanuary 15, 1850
StatusPublished

This text of 5 Ark. 516 (Clarke v. Bank of Mississippi) is published on Counsel Stack Legal Research, covering Supreme Court of Arkansas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Clarke v. Bank of Mississippi, 5 Ark. 516 (Ark. 1850).

Opinion

Mr. Justice Scott

delivered the opinion of the Court.

The main question presented is, whether or not the plaintiff below, a banking corporation created by the Legislature of Mississippi, was within the savings of our statute of limitations.

The enacting clause of ours, like that of the statute of Jac, does not' contemplate the character of the plaintiff, but looks simply to the action. Not so, however, with the saving clause; that looks not to the action, but alone to the character of the plaintiff, and if in any case a plaintiff be saved from the operation of the statute at all, it is because alone of being within the description of persons who are the objects of the saving clause. It is, therefore, not important, to the operation of the statute, who brings the suit, for lapse of time will equally bar the action by whomsoever the proceedings might be set on foot. Hence, Sir Eaidly Wilmot remarked, in the House of Commons, that infants, like all other persons, would be barred by an act limiting suits at law, if there was no saving clause in their favor. Beckford vs. Wade, 17 Ves. 87.

But, on the other hand, it is of vital importance to the party claiming the benefit of the saving that it be shown that he is entitled to it by express enactment, because his claim to exemption being against the current of the law and founded upon exceptions by no means co-extensive with its effective provisions, all presumptions are against him. And, upon a like principle, the savings of the statute have never been so liberally construed as its effective provisions; the courts having, almost universally, held that, when a party was not expressly within the savings, all that was to be inferred was simply that the legislature did not think that there was any sufficient cause for a prolongation of the right of such party to sue, beyond the legal time allowed to suitors generally. Upon this point, Mr. Angell, in his work' on limitations, (ch. 19, sec. 3, page 209,) remarks: “ There appears to be no authority in favor of the doctrine that if the persons mentioned in this section (the saving clause) are not ex-pressty excepted from the operations of the statute of limitations, there exists a virtual exception.” And, in Sacie vs. De Graff, (1 Cow. R. 356,) this doctrine was applied, and there the Court say, “ Though the defendant’s virtual protection from prosecution by his discharge produced the same result ad his absence from the State, yet we are not warranted, by any rule of construction, in deciding that every cause, which produces the same effect as the one mentioned in the act, comes within it. ”

And, having laid down this preliminary principle, we proceed more directly to the question.

The party in this case claims to be within the saving of the statute upon the grounds of being a person and beyond the limits of the State; and bases his position upon the doctrine of the case of Loui. R. R. Co. vs. Letson, (2 How. (U.S.) Rep. 558,) by which the case of The Bank vs. Deveaux, and those decided upon its authority, were overruled.

After looking into all these cases, although we have felt very forcibly the weight of the argument of the learned counsel, in the case before us, challenging the doctrine of the case cited from 2 Howard, we have become satisfied that those doctrines are founded in the law and far more reasonable than the doctrines of the case overturned, and if they are not to the full extent altogether satisfactory for the reason that some of the truths of these doctrines be not in fact prosy truths but legal fictions, requiring for their realization an imaginative reach somewhat beyond that indulged on this subject by the fathers of the common law, they themselves set the precedent.

If, in the days of Lord Coke (2 Inst. 703,) and Lord Mansfield, (Rex vs. Goodwin, Cowp. 79,) a corporation and body politic was held to be an occupier and inhabitant of land for the purposes of taxation, and “for the general purposes and objects of a law, might be regarded as having corporeal qualities,” (Bank vs. Deveaux, 2 Cond. R. 193,) it would not seem remarkable that, in our day, when greater legislative skill had been attained in the creation of such beings, whereby the creature had been made to approach nearer to the creator, that they should be now deemed inhabitants of the State where they are created and transact business, capable of being treated as a citizen for all purposes of suing and being sued. And, indeed, however acute, metaphysical, and abstract may be the reasoning employed to prove a corporation aggregate, an invisible, intangible, voiceless, artificial being — a mere legal entity, lighter than a gossamer tissue, —there is much of locality, life and individuality, that are almost inseparably connected with the idea of such a being, so much do they mingle with us in the every day business of practical life.

But, before the case of The Bank vs. Deveaux had been overturned, and the quality of citizenship for legal purposes had been established for corporations, Chief Justice Taney, in The Bank of Augusta vs. Earle, (13 Pet. 588,) after remarking that, in the case of The Bank vs. Deveaux, “ the Court had confirmed its decision in express terms to a question of jurisdiction, and had evidently went even so far with some hesitatiorf,” plainly recognized the legal capacity of a corporation lor commorancy, unconnected with the commorancy of the individual corporators. He said : “It must dwell in the place of its creation, and cannot migrate to another sovereignty. But although it must live and have its being in that State only, yet it does not, by any means, follow that its existence there will not be recognized in other places; and its residence in any other State creates no insuperable objection to its power of contracting in another. It is, indeed, a mere artificial being, invisible and intangible; yet it is a person for, certain purposes in contemplation of law, and has been recognized as such by the decision of this Court.” And this portion of the opinion of Chief Justice Taney is quoted by the Supreme Court of New York in the case of Falkner vs. The Delaware and Raritan Canal Company, (1 Denio 444,) and commorancy expressly recognized for that corporation and applied in a case where the statute of limitations was pleaded.

And although Chief Justice MaRSeall was evidently averse to the doctrine that, in general, a corporation was to be deemed to have commorancy, he was by no means satisfied that, in rear-son and justice, that exposition of it given in the case of The Bank vs. Deveaux, on a question of jurisdiction, could be applied on a question of limitation; for he remarked, in the case of The Bank vs. McKensie, (2 Brock. 400,) in reference to the case of Deveaux, “ That however difficult it might be to apply the principles of that case in reason and justice to a contract made by an individual residing and sued in a State where no office or banking house existed, and where a straggling corporator was to be found, no difficulty can exist in applying it to a case like this where a suit is brought in the State in which the contract was made, in which it was to be performed, and in which the agents and members of the corporation, with whom the debt was contracted, and to whom it was to be paid, resided.

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Related

Faulkner v. Delaware & Raritan Canal Co.
1 Denio 441 (Court for the Trial of Impeachments and Correction of Errors, 1845)

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