Hall v. Jackson

37 Mass. 194
CourtMassachusetts Supreme Judicial Court
DecidedApril 6, 1838
StatusPublished

This text of 37 Mass. 194 (Hall v. Jackson) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hall v. Jackson, 37 Mass. 194 (Mass. 1838).

Opinion

Shaw C. J.

delivered the opinion of the Court. The only question in this case is, whether Homer, the trustee, is liable to be charged for the amount, admitted to be due and owing from him to the principal defendants.

The plaintiff is a merchant of this city ; the defendants, Job and John Jackson, are English subjects resident at the town of Burslem, and engaged in the manufacture and sale of crockery ware.

It appears by the answer of the trustee, who is a merchant, of Boston, that in the autumn of 1834 he gave one of the firm of J. and J. Jackson, who was then in this country, an order for 40 packages of crockery, to be shipped the ensuing winter ; that the goods were shipped accordingly ; and that he was to have them on a credit of six months, to be computed from the time of their arrival. He further states, that the 40 packages were duly received, that he claimed the right to reject three packages, as not being merchantable, that he was indebted to the Jacksons for the residue, amounting to $743, and that up to the time of the service of the plaintiff’s writ, he had no notice that any other person than the Jacksons, had or claimed any right to the proceeds of these goods.

Upon this evidence standing alone, the trustee would un doubledly be chargeable. The facts show a direct contract for the sale of goods, by the principal defendants to the trustee, a delivery and acceptance pursuant to that contract, and a consequent debt due by the tiustee to them.

In order therefore to obtain his discharge, it is for the trustee to show that some other person is entitled to demand and receive this debt. We will not now stop to raise any question in regard to the evidence before the Court, but will consider the facts as they appear by the trustee’s answer, and the documents which he has adopted and made part of his answer.

From these it appears, that the Messrs. Jackson, residing in an interior town in England, were under the necessity of sending the goods, which they had occasion to forward to heir customers in this country, to Liverpool, that being the port at which they were to be shipped. For this purpose, they were accustomed to transmit their packages of goods to William [196]*196and James Brown & Co., of Liverpool, to be shipped and forwarded. It seems that in 1832 an arrangement was made by the Jacksons, by which they were to forward the packages of goods, sent in pursuance of the orders of their customers in the United States, to Messrs. Brown & Co. at Liverpool; that the latter paid the shipping charges, and shipped them ; that by a mutual agreement, when goods had been thus shipped, Messrs. Brown & Co. were accustomed to accept drafts of J. and J. Jackson, in the proportion of about three fourths or four fifths of the amount of the invoices, with an agreement to allow them two and a half per cent, commission for siich advances, to return one and a half if the Browns were furnished with funds to meet their acceptances as they should become due. For the better security of Messrs. Brown & Co., the Jacksons made their irrevocable power of attorney to a house in New York, another in Philadelphia, and another in Baltimore, giving them full authority to collect all debts due from their creditors in this country, with various stipulations ; accompanied with a letter of instructions to these attorneys, to remit all moneys, thus received for the Jacksons, to Messrs. Brown & Co., to be by them credited to the Jacksons. If these attorneys received money in this country, it was to go to the credit of the Jacksons with Messrs. Brown & Co., without risk of the remittance ; but if debts were received in drafts, the drafts were to be sent at the risk of the Jacksons. Such was the substance of the arrangement. When goods were thus forwarded and advances made by W. and J. Brown & Co. at Liverpool, they were accustomed to advise the agents and attorneys in this country of the fact. This I infer was done to enable their agents and attorneys to know what demands they were to collect, from whom and when due.

After the trustee was summoned, he received notice from the attorneys in fact', of Messrs. Brown Si Co., Messrs. Curtis, that they claimed the money, and at their request the trustee has submitted the documents referred to, as part of his answer.

The question therefore is, whether the plaintiff under his attachment, or Messrs. Brown & Co., have the better title to take this debt, due from the trustee.

Messrs. Brown Si Co. claim this debt upon one of twr grounds •

[197]*1971. Because they had a lien on the crockery ware, shipped to and received by Homer, and on the proceeds of the same in his hands, in security for their advances, and it appears by their account, that there is a larger amount due to them than the amount of this debt; or

2. That the transaction in question, was in the nature of an assignment of this debt to them, and that notice of it being given to the debtor, at any time before he has actually paid it over, is seasonable notice, and gives the Browns an equitable title, as upon the assignment of a chose in action.

The Court aré of opinion, that this claim cannot be maintained upon either ground.

In order to constitute a lien there must be some possession, custody, control, or disposing power, in the person claiming the lien, or his agent, in and over the subject matter, in which such lien is claimed. This is the fact, in the case of a carrier, a factor, a manufacturer or workman, or warehouse-keeper. In the case of a factor, indeed, the factor sells the goods, and thereby parts with the lien on the goods ; but at the same moment he takes the proceeds, whether the money, or security, which he may take in his own name, and thus as between him and his principal, the lien is immediately transferred to the proceeds. In case of a carrier, the freight is, by the nature of the contract, to be paid before the delivery of the goods, and the carrier retains his custody and control of the goods until the lien is discharged. So a warehouse-keeper for his storage, and the tradesman for his labor. But by the very nature of the duty undertaken by Messrs. Brown & Co., that of receiving the goods in packages from Burslem and forwarding them to America, to be delivered, not to an agent of theirs but to the purchaser of the goods from the Jacksons, they were necessarily to part with the custody of the goods, without retaining or having any power or control over the proceeds. They are to receive the goods sent from Burslem, and see that they are put on ship-board, to be forwarded, not to any agents of theirs, but directly to the customers of the vendors, without notice to them of any claim of Messrs. Brown Co. It would have been a breach of contract on their ''art, and a violation of their trust, to sell or even to onen or [198]*198detain a package of their goods. When this duty of shipping was performed, they had neither the possession nor right of possession of the goods. Having no right to sell or detain, no power in any form to convert the goods into money, if the) had no lien on the goods, it cannot be perceived how the) acquired any lien on the proceeds until by a new and furthei act of collection they should come into the hands of themselves or their agents. Even when it has been held that a person having a lien, does not necessarily lose his lien by parting with the possession for a particular purpose, it has been considered that this could only be done by delivering the property with notice of the lien, and of his intent not to part with it.

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Bluebook (online)
37 Mass. 194, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hall-v-jackson-mass-1838.