Davidson v. Dallas

15 Cal. 75
CourtCalifornia Supreme Court
DecidedJuly 1, 1860
StatusPublished
Cited by33 cases

This text of 15 Cal. 75 (Davidson v. Dallas) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Davidson v. Dallas, 15 Cal. 75 (Cal. 1860).

Opinion

Baldwin, J. delivered the opinion of the Court

Cope, J. concurring.

This is an appeal from a judgment of the Twelfth District Court. The case was here before, and will be found reported in 8 Cal. 227. The judgment was there in favor of the defendants, who were the appellants in this Court. The opinion was delivered by Mr. Justice Burnett, and the judgment of reversal concurred in by the late Chief Justice Murray. A petition for a rehearing was filed, whereupon the questions were again considered by Mr. Justice Burnett, who adhered to the views first taken by him; and in the last opinion, Mr. Justice Terry, then Chief Justice, concurred.

The facts in the record then, so far as they apply to the matter now before us, were these: B. Davidson, the plaintiff below, as the assignee of W. R. Gorham, late Sheriff of San Francisco, sued A. G. Dallas, Bernard Peyton and E. B. Falkner on a bond for $100,000, given them under the following circumstances: One Gilsen sued out an attachment against one Meiggs for $35,000, which writ was levied on the steam tug “ Underwriter,” on the eighth day of December, 1854, at thirty minutes past twelve o’clock, a. m. One McPherson, as agent of defendant Dallas, also sued out attachment against Meiggs for $12,542, which was also levied on the same vessel on the same day with Gilsen’s, but a few hours after the levy of Gilsen’s. Davidson claimed the vessel, whereupon, on the demand of the Sheriff, separate bonds of indemnity were given by Gilsen and Dallas—both with sureties, and each bond in the penalty of $100,000. The condition of each bond was to indemnify Gorham for retaining the vessel. On the twelfth of December, 1854, Davidson sued Gorham for the seizure of the vessel, and on the sixteenth of January, 1855, recovered judgment against him for the sum of $85,000. McPherson and Gilsen both had notice of the trial of Davidson against Gorham, and both assisted to defend it. The [79]*79Sheriff has not paid the judgment, but assigned to Davidson the bond of indemnity executed by McPherson as the agent of Dallas. Before the case of Davidson v. Gorham was finally disposed of, and while the case was pending here on appeal, McPherson and Gilsen entered into an agreement, by which it was stipulated that in case of a final decision in their favor, the amount for which the vessel sold should be divided pro rata, if not sufficient to pay both debts, etc.

Gilsen, pending the appeal here, obtained judgment against Meiggs, upon which execution was issued September 29th, 1855, for $38,000 and more—under which judgment the vessel was sold for $35,000, and the money paid to Gilsen.

On the second of January, 1856, Gorham, for the consideration of $2,500, paid by Gilsen, released the sureties of Gilsen from all liability upon the indemnity bond given by Gilsen.

We have stated the facts, so far as they appeared or were considered by the Court when the case was here at the October Term, 1857. We have omitted some facts touching the agency of McPherson for Dallas, which are not important now; and we shall have occasion to see if there be any and what difference between the facts at present before us on this appeal, and those upon which the former decision rested.

The case in 8 Cal. is fully and carefully reported. It was argued by able counsel, orally and in elaborate briefs, and seems to have engaged the anxious consideration of the Court—all the Judges participating, in one stage or another of it, in the decision. We do not agree with the learned counsel for the appellant that the principles which are laid down in the opinion of Judge Burnett were not those of the Court. It is true that Chief Justice Murray only agreed to the reversal, and that some inference may be indulged that, limiting his concurrence in this way, he was not entirely satisfied as to everything in the opinion; but it is scarcely to be supposed that he did not agree with his associate as to the principal point in the opinion, as the case seems to have rested upon that point; and as, if Murray, C. J., had differed on the only other question upon which a reversal was urged, viz: the want of authority of McPherson, as the agent of Dallas, to bind him, he would have indicated this, that the case might be intelligently tried below. But apart from this, upon the petition for rehearing, Mr. Justice Burnett reiterates and reaffirms his former conclusions, and this opinion of reconsideration was delivered before the issuance of the remittitur, and is to be taken as a part of the first opinion, and was as [80]*80much the guide of the District Court as the first. In this last opinion, as observed before, Terry, C. J. concurred.

This brings us to consider what was decided in that opinion, and the judgment following it. From the opinion itself, as well as from the reported points, we find that the appellants sought a reversal on three grounds.

1. That in the Meiggs loan, McPherson acted without authority from Dallas, who never ratified, and that, therefore, the debt from Meiggs was never in fact owing to Dallas; and the suit therefore not authorized by the power

2. That the power of attorney does not authorize the execution of the bond of indemnity for Dallas, and that his sureties executing the bond as his bond, and the condition failing, are not bound.

3. That there is no proof of damage within the recitals and condition of the bond, and therefore no breach nor consequent damage nor liability proved.

The two first propositions were elaborately considered by the Judge delivering the opinion, and the conclusion was reached that they were not sound. The third remained, and this is the chief matter of dispute here, as it was on the former argument.

The opinion construes the liability of Dallas to be a qualified liability to follow his right in the attached property, and to be secondary and subordinate to that of Gilsen; that the Sheriff held and detained the property of Davidson—first, for Gilsen, and to answer his claim; and, secondly, for Dallas, and to answer Ms demands; and it deduces, as a conclusion from this view, that Dallas and his bondsmen were not liable primarily on the bond for the damages caused by the detention of the property, when the whole proceeds of the property were absorbed by the debt of Gilsen. This view of the law was also sustained and enforced on rehearing, in the opinion in which Chief Justice Terry concurred. It is insisted by the appellant, that the reasoning and conclusion of the Court in this opinion cannot be maintained. And we have been forcibly struck by the able and cogent argument of the counsel to sustain this view. Indeed, we might go further, and say that we are by no means satisfied that this decision was not erroneous in principle. We are inclined strongly to think that these bonds were • independent securities for the same object of holding Gorham harmless , in respect to the same act of retaining the vessel, and that they amount to an undertaking on Gorham’s part to detain and hold the vessel at [81]*81the request of each of these creditors—Dallas and Gilsen—and to a separate covenant by each of them in consideration of this agreement, to see him harmless from any consequences arising from such detention.

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Bluebook (online)
15 Cal. 75, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davidson-v-dallas-cal-1860.