Davis v. Bronson

6 Iowa 410, 1858 Iowa Sup. LEXIS 153
CourtSupreme Court of Iowa
DecidedOctober 13, 1858
StatusPublished
Cited by7 cases

This text of 6 Iowa 410 (Davis v. Bronson) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

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

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]*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]*425it 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.

It is not claimed by defendant that the law of Iowa operates extra-territorially, to repeal or supercede the laws of Illinois. The State may say how far, however, the laws of another State are to be enforced by her courts; and this, without impairing the obligation of any contract. The plaintiff, without recognizing the exceptions to the rule^ claims for it an authority superior to that of our own legislature. The authority, (says Story), of acts and contracts done in other States, as well as the laws by which they are regulated, are not, proprio vigore, oí any efficiency beyond the territories of that State; and whatever effect is attributed to them elsewhere, is from comity, and not of strict right. Every independent community will, and ought to, judge for itself, how far that comity ought to extend. The reasonable limitation is, that it shall not suffer prejudice by its comity. Confl. Laws, sec. 244. In cases turning upon the comity of nations, (says Mr. Justice Best), it is a maxim that the comity cannot prevail in cases where it violates the law of our own country, or the law of nature, or the law of God. Contracts, therefore, which are in [426]*426evasion or fraud of the laws of a country, or of the rights or duties of its subject— against good morals or against religion — or against public right; and contracts opposed to the national policy or national institutions, are deemed nullities in every country affected by such considerations, although they maybe valid by the laws of the place where they are made. Forbes v. Cochrane, 2 B. & C., 448. The case of Holman v. Johnson, cited often in support of the doctrine contended for by the plaintiff, was for the price of a quantity of tea, sold and delivered to the order of defendant, at Dunkirk, by plaintiff, knowing it whs to be smuggled into England. The plaintiff was to have no hand in the smuggling, but merely sold the tea to defend, ant, as to any other person in the ordinary course of trade. The defence was, that the contract for the sale of the tea was with an intention to make an illicit use of it, with the privity and knowledge of the plaintiff, and he was not, therefore, entitled to the assistance of the laws of England to recover the value of it. Lord Mansfield said: “No court will lend its aid to a man who founds his cause of action upon an immoral or illegal act. If the cause of action appears to arise ex twrpi causa, or the transgression of a positive law of this country, then the court says he has no right to be assisted. ” “ The question, therefore, is, whether in this case the plaintiff’s demand is founded upon the ground of any immoral act or contract, or upon the ground of his being guilty of anything prohibited by a positive law of this country. An immoral contract it certainly is not, for the revenue laws themselves, as well as the offences against them, are positivi juris.”

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6 Iowa 410, 1858 Iowa Sup. LEXIS 153, Counsel Stack Legal Research, https://law.counselstack.com/opinion/davis-v-bronson-iowa-1858.