Edgar v. McArn

22 Ala. 796
CourtSupreme Court of Alabama
DecidedJune 15, 1853
StatusPublished
Cited by14 cases

This text of 22 Ala. 796 (Edgar v. McArn) is published on Counsel Stack Legal Research, covering Supreme Court of Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Edgar v. McArn, 22 Ala. 796 (Ala. 1853).

Opinion

CHILTON, C. J.

The defendant, doubtless with a view of showing that he had sustained a loss which drove him into bankruptcy, and which swallowed up all the profits that might be supposed to have accrued to him from the business in which the plaintiffs had proved he was engaged, introduced evidence of his having dealt largely in cotton in the years ’86, 7 and 8, and showed that such business generally proved disastrous to those engaged in it during these years.

In connection with proof of the general fatality of the business, he asked a witness: “Did you not lose largely on cotton during these years ?” The witness replied, that he had lost $50,000; and the legality of this question and answer, forms the first point for our consideration.

Conceding that it was proper for the defendant to encounter the presumption which the plaintiffs may have raised, of funds being in his hands at the time of filing his petition, by showing that he had been engaged in a business which generally resulted in ruin to those who followed it, upon the principle, that what generally happens, according to the laws of trade, to those who pursue a particular business for a given period, may reasonably be supposed to have happened in each particular case, (I Stark Ev. 55;) yet we are aware of no rule -of law, which authorizes any inference to be drawn, as to the profit or loss of one individual, from what another, wholly disconnected from him, may have made or lost while [809]*809engaged in a similar business. Concede that the witness lost $50,000; the conclusion that the defendant lost anything, is clearly a non sequitur from such a predicate. Non constat, the loss of the witness, by a turn of good fortune, may have resulted in the gain of the defendant. At all events, particular losses depend so much upon the want of prudence, management, skill and foresight of the party, as well as upon many fortuitous circumstances against which it may be difficult to provide in the particular case, that what happens to one furnishes no reasonable inference or presumption that the same thing occurs to another.

It is a general rule, founded on the clearest principles of reason and natural justice, that the acts, declarations and conduct of others, with which the party has no connection, shall not be given in evidence against him, so as, either directly or by inference, to affect his interest. The law considers such matters as res inter alios acta, and excludes all evidence concerning them. 1 Starkie’s Ev. 61. The proof educed by the question before us, was clearly of this character ; and as we can readily perceive how it may have prejudiced the plaintiffs’ case, the court committed an error in its admission. We have carefully examined the cases to which we have been referred, and we find nothing in them to shake our confidence in the correctness of the conclusion we have attained. The case of Bradford v. The Roylston Marine and Eire Insurance Co., 11 Pick. Rep. 162, is the strongest we have been enabled to find, at all favoring the view insisted on by the defendant.

That was an action against underwriters, to recover for an alleged sea damage to bales of blankets, purchased in Great Britain and shipped to this country. The defence set up was, that the blankets were damaged in the manufacture or packing; and evidence was offered, to show that the injury was of a peculiar kind, and different from saltwater damage; and the court allowed the defendants to make proof that other bales, purchased by others from the same manufacturer, and imported in the same year by other vessels, were damaged in the same way. It is obvious, that the facts of that case readily distinguish it from this; for, in this, the effort is to prove, by the result from a course of conduct of a stranger [810]*810for several years in a particular business, that tbe like result bas happened to the defendant, because he was engaged in the same business during the same time; but this, we have shown, is a non seguitur; the result was caused, it may be, by numberless circumstances which were not, and perhaps could not have been detailed to the jury, and which it would be most improbable could apply alike to both; whereas in the case cited, the exact analogy as to the peculiar character of the injury between the bales of blankets shipped by the plaintiff and others, and as to all the circumstances material to the formation of a correct conclusion respecting the nature of the injury, existed as real facts, — “inanimate witnesses,” — open to observation, and from which the jury might reasonably draw an inference that, as the sea water had not occasioned the injury in the one case, it did not in the other.

The conclusion which we have attained is, however, well sustained by the authorities. See 1 Starkie’s Ev. 60; Holcombe v. Hewson, 2 Camp. 391; Phœnix Eire In. Co. v. Philip, 13 Wend. 81; Doe v. Sisson 12 East 62-65; Furneaux v. Hutchins, Cowper’s Rep. 807; 1 Greenl. Ev. § 52.

2. When the issue involves an inquiry as to an alleged fraud, which cannot usually be shown by direct proof, and at the same time may not be inferred from facts and circumstances not inconsistent with fairness and honesty, the law justly allows great latitude in the admission of indirect and circumstantial proof. So, in this case, the plaintiffs were permitted, in order to raise a presumption that the defendant had funds in hand when he filed his petition which he fraudulently concealed, to show that before that time he had received considerable sums of money, was engaged in merchandizing and had purchased cotton, &c. To repel any inference which the jury might draw from this proof prejudicial to him, and without going into a detailed account of his business transactions for the several years during which the plaintiffs had shown he was employed, the defendant was allowed to prove that all the persons engaged in the purchase of cotton in Montgomery, and at the same time with himself, had failed; and this, notwithstanding it was shown that he had sold his goods for cash, while the others had sold on a credit. In Powell v. Knox, 16 Ala. Rep. 471, we said: “It would often be [811]*811most difficult, and sometimes utterly impracticable, for a party to account for all tbe property be was possessed of years previously; and to impose upon tbe bankrupt tbis duty, would be most onerous.” Indeed, sucb an account, were tbe bankrupt prepared with all tbe proof, would require more time, in many cases, than tbe law allows for tbe trial of all tbe cases upon tbe calendar. Tbe rules of evidence, wbicb are adapted to tbe convenient administration of justice, and wbicb are not so stringent as to require impossibilities, we think, justified tbe defendant in rebutting, by proof of tbe disastrous nature of tbe business in wbicb be was employed, tbe inference of bis having received profit therefrom. It was also permissible as a circumstance, (although by itself but weak,) tending to show that tbe defendant shared in tbe common disaster wbicb overtook all those engaged in tbe cotton business, during tbe years mentioned, thus requiring tbe expenditure of tbe means derived from other sources to make good the demands wbicb accrued against him on account of tbis. The objection that sucb testimony amounts only to matter of opinion, cannot be supported. Tbe failure of a party in business, is a matter of fact; tbe extent of bis loss, however, may be a matter of opinion.

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Bluebook (online)
22 Ala. 796, Counsel Stack Legal Research, https://law.counselstack.com/opinion/edgar-v-mcarn-ala-1853.