Johnson v. Van Wyck

4 App. D.C. 294, 1894 U.S. App. LEXIS 3338
CourtCourt of Appeals for the D.C. Circuit
DecidedNovember 5, 1894
DocketNo. 336
StatusPublished
Cited by5 cases

This text of 4 App. D.C. 294 (Johnson v. Van Wyck) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Van Wyck, 4 App. D.C. 294, 1894 U.S. App. LEXIS 3338 (D.C. Cir. 1894).

Opinion

Mr. Justice Shepard

delivered the opinion of the Court '

1. The first question to be considered is : Do the recitals of the deed, contracts and trusts, which make up plaintiff’s claim of title, show forth the existence of champerty? “ Champerty is the unlawful maintenance of a suit in consideration of an agreement to have a part of the thing in dispute.” 1 Hawk. P. C. 545; Co. Litt. 368. It has also been defined to be “ a bargain to divide the land or thing in dispute on condition of his carrying it on at his own expense.” Stanley v. Jones, 7 Bing. 369. These definitions have been very generally approved. Roberts v. Cooper, 20 How. 467 ; Brown v. Beauchamp, 5 T. B. Mon. 415.

The offences of maintenance and champerty and the docrine of the invalidity of contracts on account thereof, did not have their origin solely in the statutes of Edward I and III, which provided special penalties therefor. Lord Ellen-borough is authority for saying that maintenance was always considered malum in se. Wallis v. Duke of Portland, 3 Ves. Jr. 494. See also Brown v. Beauchamp, 5 T. B. Mon. 415, citing [316]*3162 Inst. 208-212. And it has generally been held that these statutes were declaratory only of the common law. Pechell v. Watson, 8 M. & W. 691 ; 4 Bl. Com. 135 ; Thurston v. Percival, 1 Pick. 415 ; Backus v. Byron, 4 Mich. 535 ; Arden v. Patterson, 5 Johns. Ch. 44 ; Boardman v. Thompson, 25 Iowa, 487 ; Thompson v. Reynolds, 73 Ill. 11 ; Gilbert v. Holmes, 64 Ill. 548 ; Barker v. Barker, 14 Wis. 142 ; Weakley v. Hall, 13 Ohio, 167 ; 2 Story Eq. Jur., Sec. 1048.

The same may be said of the statute of 32 Hen. VIII, prohibiting conveyances and agreements with respect to lands between parties neither of whom have had possession for a limited period, and providing severe penalties therefor, in a further effort to correct the evils of maintenance and champerty. Lord Chancellor Eldon declared this to be the object and effect of that act in his advisory opinion to the House of Lords in the famous case of Lord Cholmondeley v. Clinton, 4 Bligh. 1, in the course of which he quoted with approval this passage from a case reported in 1 Plowd. 88 ; “ This statute was made in affirmance of the common law and not in alteration of it, and all that the statute has done is, it has added a greater penalty to that which was contrary to the common law.”

We are of the opinion that the contracts and combinations exposed in the recitals of the instruments under consideration are not only clearly within the provisions of those old statutes, but also as clearly against the policy of the older common law, to which they only added sanction with increasing penalties.

The original contractor with the heirs, Lorin Blodget, whose contract is retained and carefully guarded throughout the whole chain of instruments, not only undertook to secure a one-half interest in the things to be recovered by suit, but also covenanted to institute the necessary suits and to maintain them diligently entirely at his own cost and expense. He then brought-in others to assist in his scheme, and later on organized a trust or syndicate or lottery (whichever it [317]*317may appropriately be called), the sole asset of which consists of his prospective share of the results of the proposed litigation, capitalized in the sum of $240,000, and represented by certificates of the face value of $1,000 each, which are to be issued and disposed of to raise funds for the prosecution. The original contract necessarily implied the institution of the suits in the names of the contracting heirs at law of Samuel Blodget. But to facilitate the institution and conduct of suits and the management of the business generally, and, no doubt, to guard the interests of each and everyone of the shareholders, as well as to provide a speedy, inexpensive and thorough mode of conversion and distribution of all recoveries, the conveyance to the common trustee was devised. Thus a permanent executive officer was created, to whom all titles were passed, and in whose name all proceedings are to be taken ; a permanent and responsible treasurer — the Union Trust Company — was provided for, to hold and disburse the moneys received. The corporation idea was completely developed. Lorin Blodget and the contracting heirs may die or part with their remaining interests, certificate holders may die or assign, but the trust will go on unchanged and unending until the last claim of the estate of Samuel Blodget shall be reduced, converted into cash, and distributed.

2. It may now be considered to what extent, if any, the Statutes of Edward I and III, and of 32 Hen. VIII, and the policy of the common law against champerty and maintenance may prevail in this jurisdiction. It may be admitted that all of these statutes became obsolete in Maryland before the cession of the District of Columbia; they certainly had become so later, as was held in Schaferman v. O’Brien, 28 Md. 565, decided in 1868. That case has been followed by us in one where the naked question was presented, whether a deed made by one out of possession, both actual and constructive, is void by reason of the prohibition of the statute of 32 Henry VIII. Matthews v. Hevner, 3 [318]*318App. D. C. 349. But Mr. Justice Morris, who delivered the opinion, of the court, was careful to limit the decision to the question as presented, and in doing so he took occasion to say : “ We do not desire to be understood, however, as holding that champerty and maintenance are no longer reprehensible or criminal under our laws; or, as was intimated in Schaferman v. O’Brien, that there may not be cases where the purpose of the parties to stir up litigation is so plain that their acts should be regarded as void.”

In Stanton v. Haskin, 1 MacArthur, 558, decided in 1874, the General Term of the Supreme Court of the District refused specific performance of a contract between attorney and client for a one-third interest in land to be (and which was) recovered in litigation maintained in accordance therewith. The court also expressed the opinion that, “with some modifications, the common law with regard to champerty, which is supposed to be founded on the statute of 28 Edw. I, is generally recognized.” This seems to be the only case in which the question has ever been discussed or alluded to in the courts of this District.

It must be admitted, though not to the extent claimed on behalf of appellant, that the conditions prevailing in our country and in our times are so different from those existing in the days when the doctrine of champerty had its origin and was rigidly enforced, that the chief reasons for the existence of the rule have passed away entirely, whilst others have lost or largely spent their force. Modifications and exceptions to the rule were early recognized in England, and have grown and increased there, and, generally in greater degree, in this country. Acts of assistance and upholding of litigation were gradually recognized as justifiable when prompted solely by charity to the poor and unfortunate who might else be unable to right a wrong; by the ties and obligations of consanguinity, affinity, or common interest; by the relations of landlord and tenant, master and servant, neighbor and neighbor, and attorney and client. The [319]

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Bluebook (online)
4 App. D.C. 294, 1894 U.S. App. LEXIS 3338, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-van-wyck-cadc-1894.