Davis v. Bronson

6 Iowa 410, 1858 Iowa Sup. LEXIS 153
Supreme Court of Iowa·Decided October 13, 1858·Published·Cited by 7 cases

Opinion

Stockton, J.

— The defence is based upon the fifteenth section of the “act for the suppression of intemperance,” which provides that “ no action of any kind shall be maintained in any court of the State for intoxicating liquors, or the value thereof, sold in any other State or country, contrary to the laws of said State or country, or with intent to enable any person to violate any provision of this act; nor shall any action be maintained for the recovery or possession of any intoxicating liquors, or the value thereof, except in cases where persons owning or possessing such liquors with lawful intent, may have been unlawfully deprived of the same. Act of January 22, 1855, section 15. The authority of this statute, must be paramount with us, and is decisive of this cause, unless, as is contended by plaintiff, it is not intended to apply to the case made by him, or is unconstitutional and void, as impairing the obligation of contracts.

It is claimed by plaintiff that the contract is to be construed according to the law of Illinois, where made ; and if valid there, it is valid every where else, and cannot be rendered invalid by the law of Iowa.

[424] “ There can be no doubt,” says Lord Mansfield, in Holman v. Johnson, Cowper, 341, but that every action tried here, must be tried by the law of England ; but the law of England says, that in a variety of circumstances, with regard to contracts legally made abroad, the laws of the country where the cause of action arose, shall govern.” Male v. Roberts, 3 Espinass N. P., 163. Generally speaking, the validity of a contract is to be decided by the law of the place where it is made — lex loei contractu. If valid there, it is, by the general law of nations, held valid everywhere, by the tacit or implied consent of the parties. Story’s Conflict of Laws, section 242. The plaintiff states the rule in language stronger — that if the contract is valid where made, it is valid everywhere, and cannot be rendered invalid by the law of any other State. To give effect to contracts made out of the State, is an act of comity due from the courts of the State in which they are sought to be enforced, to the State in which they are made. The lex loci is to be adopted in deciding on the nature, validity and construction of the contract. So far, the obligation of the law of comity extends, but no farther. Pearsoll v. Dwight, 2 Mass., 88. So, a contract made in a foreign place, to be there executed, if valid,by the laws of that place, may be a legitimate ground of action in the courts of this State, although such contract may not be valid by our laws, or even may be prohibited to our citizens. Contracts for a greater rate of interest than is allowed by the State where they are attempted to be euforced, are instanced as an illustration of this rule. Greenwood v. Curtis, 6 Mass., 378. But where upon a contract made in Now York, and to be there performed, the parties both being residents of that State, a suit was brought in Massachusetts, it was held that the statute of limitations of New York could not be pleaded in bar of the action. Pearsoll v. Dwight, 2 Mass., 88. The rule, however, is subject to important exceptions: 1. That neither the State, nor its citizens may suffer any injury or inconvenience by giving legal effect to the contract; which should not, in itself, nor in the means used to give [425] it effect, work injury to the country where it is attempted to be enforced. Story on Conflict of Laws, sec. 244; Greenwood v. Curtis, supra; Ohio Ins. Co. v. Edmondson, 5 Louis., 295. 2. That the consideration of the contract be not immoral, and the giving effect to it will not have a bad tendency, or exhibit to the citizens of the State an example pernicious and detestible. No man ought to be heard in a court of justice, to enforce a contract founded in, or arising out of, moral or political turpitude, or in fraud of the just rights of any foreign nation. Armstrong v. Toler, 11 Wheaton, 258. 3. The contract must not be opposed to the policy and institutions of the State where it is sought to be enforced. In all such cases,the contracts will be held utterly void, whatever may be their validity in the country where they are made, as being inconsistent with the duties, the policy, or the institutions of the State where they are sought to be enforced. Story on Conflict of Laws, sec. 259.

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Davis v. Bronson, 6 Iowa 410, 1858 Iowa Sup. LEXIS 153 (iowa 1858).

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