Dunlap v. Rogers

47 N.H. 281
CourtSupreme Court of New Hampshire
DecidedJune 15, 1867
StatusPublished

This text of 47 N.H. 281 (Dunlap v. Rogers) is published on Counsel Stack Legal Research, covering Supreme Court of New Hampshire primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dunlap v. Rogers, 47 N.H. 281 (N.H. 1867).

Opinion

Sargent, J.

In Le Chevalier, assignee of Dormer, a Bankrupt, v. Lynch & al., Doug. 162, it was said by Lord Mansfield, that if a bankrupt has money owing to him out of England, as in St. Christophers, Gibralter, &c., the assignment under the bankrupt law so far vests the right to the money in the assignees that the debtor shall be answerable to them, and shall not turn them round by saying he is only accountable to the bankrupt. In Scotland they permit assignees of a bankrupt in England to sue for money owing to the bankrupt in Scotland, and it has been determined at the cockpit, upon solemn consideration, that bills by English assignees may be maintained in the plantations upon demands due to the bankrupt’s estate.”

But he also held "that if, in the meantime, after the bankruptcy and before payment to the assignees, money owing to the bankrupt out of England is attached bona fide, by regular process, according to the law of the place, the assignee in such case cannot recover the debt.”

So in Potter v. Brown, 5 East. 124 — 131, Lord Ellenborough, C. J., says, "it is every day’s experience to recognize the laws of foreign countries as binding upon personal property, as in the sale of ships, condemned as prize by the sentences of foreign courts, the succession to personal property by will or intestacy of the subjects of foreign countries. We always import together with these persons the existing relations of foreigners as between themselves, according to the laws of their respective countries; except, indeed, where these laws clash with the rights of our own subjects here, and one or the other of the laws must necessarily give way, in which case our own is entitled to the preference. This having been long settled in principle and laid up amongst our acknowledged rules of jurisprudence, it is needless to discuss it further.”

The English cases subsequent to this have been somewhat conflicting. These decisions are reviewed and commented on by Story in. his Conflict of 'Laws, secs. 404 to 409 inclusive. His conclusion upon such review, is, that the courts of England maintain the doctrine of the universal operation of assignments in bankruptcy upon all movable property wherever it may be locally situated at the time of the assignment. The process of reasoning by which this conclusion is reached is substantially as follows : The general principle is that personal property has no locality, but as to its disposition, it is subject to the law which governs the person of the owner, that is to say, it is subject to the law of his domicil. There can be no doubt that the owner may, by a voluntary assignment, or sale, made according to the law of his domicil, transfer the title to any person wherever the property may be locally situated. Now an assignment under the bankrupt laws of his domicil is by operation of law a valid transfer of all t’he bankrupt’s property as valid as if made personally by him. The law, upon his bankruptcy, transfers his whole [287]*287property to the assignees, who thus become, lege loci, the lawful owners of it, and are entitled to administer it for the benefit of all his creditors. The mode of transfer is entirely immaterial. The only proper question is whether it is good according to the law of his domicil. This rule is applied in the succession to movable property in cases of intestacy, where the property passes by mere operation of law in the same manner as by a voluntary act of sale, or where it passes by will. Chancellor Kent came to the same conclusion, upon a review of the English and early American authorities, in the court of chancery in New York, in 1820, in case of Holmes v. Remsen, 4 Johns. Ch. 460 — 487, in which it was held that by the English law, and by the general international law of Europe, the proceeding which was prior in point of time, was prior in point of right, and attached to itself the right to take and distribute the estate.

But whatever weight the English or the early New York authorities might otherwise have been entitled to, the great weight of American authorities is now the other way, and it may now be considered as a part of the settled jurisprudence of this country, that personal property, as against creditors, has locality, and the lex loci rei sitae prevails over the law of the domicil, with regard to the rule of preferences in the case of insolvents’ estates. The law's of other governments have no force beyond their territorial limits, and if permitted to operate in other States, it is upon a principle of comity, and only when neither the State nor its citizens would suffer any inconvenience from the application of the foreign law'. A prior assignment in bankruptcy under a foreign law will not be permitted to prevail against a subsequent attachment, by an American creditor, of the bankrupt’s effects found here, and our courts will not subject our citizens to the inconvenience of seeking their dividends abroad when they have the means to satisfy them under their own control. 2 Kent’s Com. 406; Story’s Conflict of Laws, secs. 410 to 421 inclusive: Harrison v. Sterry, 5 Cranch 289-302; Ogden v. Saunders, 12 Wheaton 61 — 362; Saunders v. Williams, 5 N. H. 213; Sanderson v. Bradford, 10 N. H. 260; Blake v. Williams, 6 Pick. 286. And the same rule applies as between the different State, Ingraham v. Geyer, 13 Mass. 146; Fox v. Adams, 5 Greenl. 245.

Upon the principle of comity or courtesy of nations and of States, it is usual everywhere to allow the assignees of the bankrupt, duly appointed pursuant to the laws where the bankrupt dwells, to maintain actions in that character in another State. And it has generally been held, where questions arose in this country between the bankrupt under a foreign law and his assignees under the same law, they both being citizens and subjects of the country enacting the law, where no rights of creditors, citizens of this country, intervened, that effect should be given here to the foreign law. Plestero v. Abraham, 1 Paige 236; Abraham v. Plestero, 3 Wend. 540; Hall v. Boardman, 14 N. H. 38; Hoag v. Hunt, 21 N. H. 106; Smith v. Brown, 43 N. H. 44.

It is said by Yeates, J., in Milne v. Moreton, 6 Bin. 353, that "it is one thing to assert that assignees of bankrupts under foreign institutions should be allowed by the courtesy of nations to support suits,, as-[288]*288representatives of such bankrupts for debts due to them, and it is another thing to give efficacy to those institutions to cut out attaching creditors although posterior in point of time, who have commenced their proceedings under the known laws of the government to which they owe allegiance, and from which they are entitled to protection. The right of such assignees thus to sue in a foreign country does not result from the force or effect of the law, but from long used and well established comity.”

In Hall v. Boardman, supra,

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Related

Harrison v. Sterry
9 U.S. 289 (Supreme Court, 1809)
Plestoro v. Abraham
1 Paige Ch. 236 (New York Court of Chancery, 1828)
Holmes v. Remsen
4 Johns. Ch. 460 (New York Court of Chancery, 1820)
Milne v. Moreton
6 Binn. 353 (Supreme Court of Pennsylvania, 1814)
Ingraham v. Geyer
13 Mass. 146 (Massachusetts Supreme Judicial Court, 1816)

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Bluebook (online)
47 N.H. 281, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dunlap-v-rogers-nh-1867.