Dale v. Governor

3 Stew. 387
Supreme Court of Alabama·Decided January 15, 1831·Published·Cited by 19 cases

Opinion

By JUDGE TAYLOR.

Seve2'al points have been made by the counsel for the plaintiff in this case, but as my opinion on one of them, disposes of the case, so far as I am concerned, I shall notice only that one. It is the second in the order in which they were made, and is as follows, viz: “the act of the general assembly of 1821 was a contract, which that body had a right to create, and the act which repealed it, was unconstitutional and void.”

It is of the utmost importance that we should come to a correct conclusion, as regards the nature of this act. If indeed it be a contract, there cannot be a doubt of its binding force upon the parties, although the Slate forms one of those parties; and that it requires the consent of both to rescind or annul it. This question has been often decided by the highest judicial tribunal in the United States, and is too evidently embraced within that provision of the federal constitution, which provides, that “no State shall pass any law, impairing the obligation of contracts,” now to admit of doubt.

[395] Probably it may be advantageous to examine some of the cases on this subject, decided by the Supreme Court of the United States, and compare them with the case before us, that we may ascertain what effect those decisions should have upon the determination of this case. The first case of this kind which came before that Court, was the celebrated one of Fletcher v. Peck.a The legislature of Georgia, by an act of the 7th of January, 1795, authorized the sale of a large tract of wild land, and a grant was made by letters patent, in pursuance of the act, to a number of individuals, under the name of the Georgia Company. Fletcher held a deed from Peck, for a part of this land, under a title derived from the patent; by which deed Peck had covenanted, that the State of Georgia was lawfully seized when the act was passed, and had good right to sell, and that the letters patent were lawfully issued, and the title had not since been legally impaired. The action was for breach of covenant; and the breach assigned was,that the letters patent were void, for that the legislature of Georgia, by act of the 13th of February, 1796, declared the preceeding act to be null and void, as being founded in fraud and corruption. This directly brought before the Court, the question, whether the legislature of Georgia could constitutionally repeal the act of 1795, and rescind the sale made under it.

The Court declared that when a law was in its nature a contract, and absolute rights have vested under that contract, a repeal of the law could not divest those rights, nor annihilate or impair the title so acquired. A grant was a contract within the meaning of the constitution. The words of the constitution were construed to comprehend equally executory and executed contracts, for each of them contains obligations which are binding on the parties. A grant is a contract executed, and a party is always estopped by his own grant. A party cannot pronounce his own deed invalid, whatever cause may be assigned for its invalidity, and though that party be the legislature of the State. It was accordingly declared, that the State of Georgia, having parted from the estate of the lands, and that estate having passed into the hands of a bona fide purchaser, for a valuable consideration; that State was constitutionally disabled from passing any law, whereby the estate of the plaintiff could be legally impaired and rendered void.

Now in what does the similarity of the case of Fletcher v. Feck, to the one under consideration consist? No [396] ever doubted but that was the case of a contract. The 'State of Georgia had sold the land for a valuable consideration, and conveyed it by deed to the purchasers. The-title was actually vested in the grantees, and the contract executed. But had it been only executory, it would have been equally obligatory. Had the purchasers agreed at a future day to pay, and the State, in consideration thereof, agreed to convey the lands, this would equally and manifestly have been a contract. The only questions involved in the case were, does the constitutional provision extend to contracts made by States; and has a State, being a party to a contract, a right to declare that contract void, for fraud committed by its own government, in the execution of that contract, upon the rights of those it represented.

Surely that case gives us no information in the inquiry, does the law of 1821, constitute a contract between the plaintiff and the State of Alabama? In the one case, there was a purchaser, and consideration paid; and in return for that consideration, a grant executed with all requisite formalities, vesting the title of the grantor in the grantee. But had there been no consideration paid, the grant would have estopped the State of Georgia from asserting any claims to the lands. She constituted one party, the grantees the other; and it required the concurrence of both parties, and that too before third persons became interested, to annul the grant. If the State of Alabama had sued Samuel Dale for the money which had been paid to him before the repeal of the act of 1821, then he might have insisted, that notwithstanding an act requiring him to refund, he had a vested interest in the amount he had received, of which no subsequent act of the legislature of Alabama could deprive him.

The case of the State of New Jersey v. Wilson,a is also entirely similar to that of Fletcher v. Peck, in its principles. There, in consideration that the Delaware Indians released to the State of New Jersey, their right to certain lands, the legislature declared 1& law, that other lands purchased for the Indians should not be subject to taxation. The Indians subsequently with the consent of the legislature, sold the lands thus acquired, and the legislature by subsequent enactment, imposed a taxon those lands. This was determined by the Supréme Court of the United States, to be in violation of the contract made with the Indians; the benefit of which, accompanied the title, and therefore void. Every thing contained in this case, con[397] stituted a contract. The Indians, in parting from the to the lands previously held by them, gave a valuable consideration for those they acquired, and" their exemption from taxation. The Court certainly would not stop to consider whether the quid pro quo, was of equal value or not; the thing to be considered was, did the legislature pass the act exempting the lands from taxation, as an ordinary law, or was it a contract between the parties? It certainly possessed all the essentials of a contract between parties, making a mutual agreement.

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Dale v. Governor, 3 Stew. 387 (Ala. 1831).

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