Forbes v. Scannell

1 Cal. Dist. Ct. 132
CourtCalifornia District Court
DecidedJuly 15, 1857
StatusPublished

This text of 1 Cal. Dist. Ct. 132 (Forbes v. Scannell) is published on Counsel Stack Legal Research, covering California District Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Forbes v. Scannell, 1 Cal. Dist. Ct. 132 (Cal. Super. Ct. 1857).

Opinion

Hager, J.

The parties, by stipulation in writing, have agreed upon and admitted the principal facts, and I shall therefore not refer to them except so far as it may be necessary to explain my conclusion upon some of the points raised upon the argument.

Upon the 11th day of March, 1855, the mercantile house of Eye Brothers & Co., doing business at Canton, China, became insolvent, and Gideon Eye, Jr., the only member of the firm then in Canton, for himself and his firm, before the U. S. Consul at that place, made and executed a written assignment of his personal, and also the partnership property, to the plaintiffs, residents of the same place, “ in trust and for the benefit of all the creditors of said Gideon Eye, Jr., and the said commercial house of Eye Brothers & Co.”

The assignees accepted the trust, entered upon the duties of- their office, and with the acquiescence and co-operation of the creditors reading in China, took the possession and control of the insolvents property, and proceeded to convert it into money.

This action is brought by plaintiffs, as assignees, against the defendant, Sheriff of this County, to recover the value (admitted to be $50,000) of a quantity of teas belonging to the insolvent’s estate, shipped and consigned by plaintiffs to a mercantile house in San Francisco, for sale, and there seized by defendant under an execution issued upon a judgment for $200,000, obtained by Frederick Huth & Co., of London, Great Britain, before the arrival of the goods in this State.

The principal question to be determined is whether the assignment made at Canton, by the one partner, Gideon Eye, Jr., is valid and binding upon the- firm of Eye Brothers & Co., and sufficient to vest the property in question in the assignees, as against the judgment creditors named, and prevent its being seized by them upon execution.

In considering the question it is necessary in the first place to deter[137]*137mine the law that is applicable to and should govern in testing the validity of the assignment, and of the rights of property.

1. It was urged upon the argument that the property being now within the territory of this State, the validity of plaintiffs’ title, and the assignment, must he tested by the lex fori.

For many purposes personal property is deemed to have no situs except that of the domicil of the owner, yet this being but a legal fiction it yields whenever it is necessary, for the purposes of justice, that the actual situs should be inquired into. At the time of the assignment the property belonged to Hye Brothers & Co., and was then upon the high seas; owing to stress of weather the ship put back to Canton, where the property w'as taken possession of by plaintiffs, under the assignment, and by them forwarded to this port.

This State, in point of sovereignty and jurisdiction, has the same dominion over personal that it has over real property actually situated within its territory; it may by law regulate its transfer, subject it to process and execution, and control its disposition to the same extent it may exert in its authority over real estate ; hut this should not he done in violation of the rules of law as fixed by comity.

According to the authorities in the United States there is a recognized distinction between assignments in invitum, or under the bankrupt laws, and voluntary assignments made by the owner of properly while residing in a foreign country; in the one case the transfer is by the operation of the law of the foreign country, in the other it is by the act of the party. In the absence of all proof that this assignment was made by compulsion of law, or under bankrupt or insolvent laws, it must be regarded as a voluntary assignment. Such assignment, if made according to the law of the domicil, will generally pass personal property, whatever may be its locality, abroad as well as at home. Story C. L., §410-411.

How in this State, by our insolvent laws, as construed by the Supreme Court, all voluntary assignments by insolvent debtors for th® benefit of creditors, are declared void. If, therefore, at the time of the assignment, this State had been the situs of the property, or if there had been no delivery in China to the assignees, and the property had arrived here as the property of the insolvents, the lex loci rei si&B would have prevailed over the law of the domicil, and the questions [138]*138involved herein would have been determined by the laws of this State. But the assignment, and the delivery of the property under it, having been made and completed in China, and our statute law having no ex-trarterritorial force, the assignees, if the assignment is in other respects valid and sufficient to pass the property, became lege loci the legal owners, and entitled to be protected in their possession of the property. United States vs. U. S. Bank, 8 Rob. (La.) R., 262.

2. At the time of the failure and assignment Gideon Nye, Jr., resided, and the place- of business of their house was at the “ Factories,” as it is called—an inclosed place, isolated and consisting of a few acres —outside of the walls of Canton, where the foreigners had their habitations, and were only permitted to reside and do business at that port. By the treaty of July 3d, 1844 (see treaty, U. S. Statutes at Large, 592) between the United States and China, five ports, of which Kwang Chow (Canton) is one, were opened to American commerce, and our government is authorized to appoint Consuls, and our citizens are permitted to reside there.

This treaty also provides for the examination and decision of controversies between citizens of the United States and subjects of China. Also that all questions with regard to rights of property or person, between citizens of the United States, shall be subject to the jurisdiction and regulated by the authorities of the government of the United States. And that controversies between the citizens of the United States, and the subject of any other government, shall be regulated by the United States and those governments, without any interference on the part of China.

By the Act of Congress of August 11th, 1846, (9 Stat. at Large, 276,) the Commissioner and Consuls of the United States, appointed to reside in China, are vested with judicial authority in civil and criminal cases ; the -laws of the United States are extended over citizens of the United States in China, and where they are deficient the common law is extended in like manner; and where they are both deficient the Commissioner shall, by decrees and regulations, which shall have the force and effect of law, supply such defects and deficiencies.

By the testimony it seems neither Europeans nor Americans resort to the Chinese Courts for the adjudication of questions involving rights of property, or for any other purpose, but each in such cases apply for relief, and transact legal business before their respective consuls.

[139]*139What the prevailing Chinese law is does not appear, nor do I think it material, for if the provisions of the treaty are observed the laws of that country cannot prevail, and their tribunals, even if competent, have not the power to give relief when a controversy occurs between citizens of the United States and the subjects of any other government, although there may be no regulations by treaty on the subject between the respective governments.

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