Heard v. Sturgis

16 N.E. 437, 146 Mass. 545, 1888 Mass. LEXIS 295
CourtMassachusetts Supreme Judicial Court
DecidedApril 25, 1888
StatusPublished
Cited by11 cases

This text of 16 N.E. 437 (Heard v. Sturgis) 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
Heard v. Sturgis, 16 N.E. 437, 146 Mass. 545, 1888 Mass. LEXIS 295 (Mass. 1888).

Opinion

Holmes, J.

The plaintiffs in this case are parties who paid enhanced premiums for insurance on war risks from 1861 to 1865. The defendants are their assignees in bankruptcy, under an assignment made in 1875. They have received money from [547]*547the United States, according to a decision of the Court of Commissioners of Alabama Claims under the act of Congress of June 5, 1882, in respect of the war premiums paid by the plaintiffs; and the question is whether they are entitled to hold that money under the assignment, which it will be noticed was made before the act was passed, by force of which the money was paid by the United States.

It is settled that the adjudication of the commissioners is not conclusive between the parties. That adjudication only decides upon the amount and validity of the claim as against the United States, sets apart and identifies the fund for the benefit of whoever ultimately may prove entitled to it under the proper construction of the statute, and leaves the rights of all persons claiming to be entitled to the sum awarded to the ordinary course of proceeding in the established courts. Leonard v. Nye, 125 Mass. 455, 466. Comegys v. Vasse, 1 Pet. 193, 212. The Court of Commissioners have expressed and acted on this view of the law. McLeane v. United States, Davis’s Report of Decisions of Commissioners, 112. 44th Cong. 2d Sess. Senate Ex. Doc. No. 21. The Bankruptcy Question, March, 1884, in Rules, Opinions, &c. of Court of Comm, of Ala. Claims, Washington, 1885. The only question is whether the right of the defendants is equally established by Leonard v. Nye and Comegys v. Vasse, or whether there is a satisfactory distinction to be taken between those cases and the case at bar.

There is no need of stating in detail well-known cases in easily accessible reports. It is enough to say, that the American decisions establish that when this government collects a sum from a foreign government in respect of wrongs to our citizens, and subsequently passes a law to distribute the fund collected to the parties wronged, this government is to be regarded as having stood from the beginning quasi in the position of an agent to collect on behalf of its subjects, and a trustee of the fund when collected, and thus that the payment when made is to be treated as if made in pursuance of a duty on its part, and in satisfaction of a vested right of the subject, and not as a pure gratuity and gift. Comegys v. Vasse, and Leonard v. Nye, ubi supra. Bachman v. Lawson, 109 U. S. 659, 663. Grade v. New York Ins. Co. 8 Johns. 237, 245. So as to claims against the [548]*548government for proceeds of captured property. Erwin v. United States, 97 U. S. 392. It follows from this view, and it is decided, that such claims pass to an assignee in bankruptcy or insolvency under an assignment earlier in date than the act providing for the payment of the claims. Leonard v. Nye, ubi supra. Jones v. Dexter, 125 Mass. 469. Comegys v. Vasse, ubi supra. Phelps v. McDonald, 99 U. S. 298. Plater v. Scott, 6 Gill & J. 116.

We are bound by these decisions as far as they go. Undoubtedly, if the acts with which they deal had been in force before the respective assignments, no one would have felt any hesitation about the result merely by reason of his opinions as to the relations of subject and sovereign, or the impossibility of the former having a right in a strict juridical sense against the latter; and 'perhaps it would not have mattered whether the sum given by the act was a pure gratuity, or was founded upon a moral consideration, so long as the government positively undertook to pay. Compare Ex parte Huggins, 21 Ch. D. 85; Ex parte Webber, 18 Q. B. D. 111. Undoubtedly, too, an act may be passed at any time providing expressly or by implication that the sums distributed shall be paid to the use of such persons as would have been entitled at the time of payment, if the claims forming the moral consideration of the statute had been legal claims from the beginning. Furthermore, there is a very intelligible reason for giving that effect to a statute which distributes a fund, collected as we have supposed, to sufferers in respect of whose sufferings the claim was collected. The commercial and practical, rather than strictly juridical, light in which we are in the habit of regarding the sovereign ppwer, makes it natural and easy to adopt such a view.

But it must be remembered, whenever a new statute comes up for consideration, that although it may be found by construction to give what it gives as if in pursuance of a legal duty, there is no such legal duty in fact, and no antecedent right on the part of the persons who receive its benefits. It is only tautologous to say that the law knows nothing of moral rights unless they are also legal rights, and from before the days of Hobbes the argument has been public property that there is no such thing as a right created by law, as against the sovereign who makes the law by which the right is to be created. Bur[549]*549nand v. Rodocanachi, 7 App. Cas. 333, 336. Hobbes, De Cive, c. 6, § 14 (Op. Lat. ii. 227); Leviathan, c. 26 (Eng. Works, iii. 250-252). Sir John Eliot, De Jure Maiestatis, c. 3. Bodin. De Republica, I. c. 8. Bentham, Fragment on Government, c. 5 (Works, i. 292, 293). Austin, Jurisprudence, Lect. 6, pp. 286, 287 (3d ed.).

In every case, then, some reason must be found, either in the words of the distributing statute, or in what we have called the moral consideration for it, as that the fund if received by a private person would have been charged with a trust, or that the sovereign but for his sovereignty would be bound to indemnify the distributees for some previous loss, before the distribution can be regarded as anything more than a simple gift.

In the present case there is no pretence that the United States received the money paid over by the Geneva Award upon any trust in favor of those who paid war premiums, even in the attenuated sense in which it may be said to have done so for those whose vessels were destroyed by the Alabama, &c. On the contrary, claims for war premiums, as such, were expressly withdrawn from the consideration of the Geneva tribunal. Protocols 5, 6, and 7 of the Conferences of the Arbitrators. Message and Documents, Department of State, Part 2, Vol. IV., 1872-73, pp. 19-22. The corner-stone of the decision in Leonard v. Rye is wanting. The ground on which that case went maybe seen from the following extract from the opinion :

“ The claims for the destruction of property of citizens of the United States by the Alabama and the Florida, and by the Shenandoah after her departure from Melbourne, through the violation by Great Britain of her international duty, were claims for which the owners of the property destroyed were justly entitled to compensation from Great Britain, although they could not obtain their rights in the ordinary course of judicial proceedings, but only by petition to the British government, or through the interposition of their own government.

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Bluebook (online)
16 N.E. 437, 146 Mass. 545, 1888 Mass. LEXIS 295, Counsel Stack Legal Research, https://law.counselstack.com/opinion/heard-v-sturgis-mass-1888.