Kuhtman v. Brown

38 S.C.L. 479
CourtCourt of Appeals of South Carolina
DecidedJanuary 15, 1851
StatusPublished

This text of 38 S.C.L. 479 (Kuhtman v. Brown) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kuhtman v. Brown, 38 S.C.L. 479 (S.C. Ct. App. 1851).

Opinion

Curia, per

Withers, J.

The general outline of the trans[482]*482action which has given rise to this litigation, presents nothing more, when the evidence is regarded, than the common case of the owners of a parcel of cotton shipping the same, through the instrumentality of another, to consignees, the correspondents of the latter, to be sold by them, at a foreign port, for and on account of the owners ; and an advance to them by the person appearing here as plaintiff, by means of exchange drawn against the proceeds of the cotton when received and sold at the port of destination. It is, therefore, a transaction pertaining to foreign commerce.

Some of the complaints that are made in behalf of defendants have arisen from that unhappy course of trade which has allowed New York to become an intermediate toll-house for the exports and imports of Charleston to and from foreign ports. The cotton was sent to New York, and charges incurred, of course ; it was thence transhipped for Bremen, with attendant charges accumulated. The advance of cash obtained here from ¡the plaintiff was made by a bill, not directly on the house of the consignees at Bremen, (as would appear from the brief) but by a bill on a house in New York, which bill was met, that is, the money was raised upon it, by another bill drawn by the house at New York on the consignees of the cotton at Bremen ; and .§75 20 are charged against defendants as toll on that last transaction, in the shape of bill brokerage and commissions of negotiation.” The defendants contend that they are not liable for this last item of expense, inasmuch as they are charged with the nominal amount of the cash advanced and interest on the same; and that any expense in raising the money should be borne by the plaintiff.

The cotton was forwarded from New York to Bremen, and there sold by the consignees, to whom it was committed by Brown & Goldsmith, on the 22d February, 1848, at four months. Commissions, as well as a long list of other charges, are deducted by the consignees from the gross amount of sales; among them are insurance (with a charge for stamps) and commission ■on effecting the same; freight, receiving on board and lighterage, [483]*483import duty, storing and weighing; on which, (the aggregate being 1186 22 currency at Bremen) is charged interest for 178 days at 5 per cent. To this interest the defendants object. Other items follow, to wit, storage and insurance against fire, labourage, sample drawing, weighing and delivering, brokerage and stamps on notes, commissions, and guaranty on amount sales. To some of these items the defendants object, insisting that, inasmuch as commissions are charged, interest ought not to be, especially on some items on which it has been reckoned. This item of interest in the account of the consignees is equal to about $28 of our currency.

Some of the items in this formidable list may be of novel impression to such as are without the circle of dealing in cotton, and the experience derived from this case might well serve to keep those out who are not versed in the art. To most of us, however, a very full list and an interesting variety of charges are quite familiar, and our known domestic usages in this behalf attest how much of this sort of skill our domestic dealers have attained. Some of the charges in this bill may possibly be comprehensible to a common understanding, upon some consideration. For example, the cotton was sold upon time, notes were probably taken for the price — hence, perhaps, “brokerage and stamps on notes” and “guaranty” joined to the item of commissions; “storing and storage” may be quite distinct matters, the one the service of putting the cotton up, the other the price paid for keeping it under shelter. It seems to have been twice weighed at Bremen — this may have been proper. The first that the right quantity should be forthcoming from the warehouse, and the last necessary upon sale. One item of insurance is general, and is supposed to have been against marine risks; another item of insurance is against fire. About $30 of our currency are charged for “labourage, sample drawing, weighing and delivering.” Some of these words are not familiar to all of us here as usual items of charge. Indeed it may be said that much of the language of commerce is quite unintelligible to the unskilled, and it may be well apprehended that if Lord Coke were [484]*484to revisit us he would have to begin his studies in this department anew. We observe likewise that witnesses said certain charges were either paid for or supposed to have been, which may serve to remind one of the American notion of mileage and diplomatic expenses of a journey never performed, but supposed to have been. Now how are these and such like points to be determined as matters of law by a Circuit Judge or by this Court ? If the present were a common case of money lent, we should have our laws regulating interest and forbidding usury to guide us, and to these the defendants would fain appeal. If this were a case, domestic in its natnre, of advances of money on account, by a factor, in the current line of business with his customer, we might resort to Smetz vs. Kennedy, (Riley L. C. 218,) where we should learn that “if the usage be clearly established that a factor has a right to charge commissions on goods purchased, and on the amount of his acceptances when he has no funds to meet the payment of drafts at maturity, I think (said Justice Evans) the jury should have allowed these items in the account. But I am satisfied a different rule should prevail in relation to advances. These are, in fact, loans of money; and to charge commissions and interest both, savors of usury, which is unlawful, and no custom or usage can be allowed which repeals the law of the land.” But labor, services, incidental expenses paid for, and interest account, arising from such a shipment of cotton as this was, the charges for negotiating a foreign bill in New York, drawn against the cotton, to meet another drawn on New York, on the same basis, being the steps adopted by the parties to secure the present use (it may be for the original purchase of the cotton,) of a sum of money advanced in anticipation of sales abroad — all these matters must, of necessity, be referred to a jury, to be investigated according to the well established usages in that line of commercial business to which this transaction pertains.

What was done on circuit in this respect does not appear to contravene the rules of law on this subject, which- allow usage to regulate the adjustment of contracts between landlord and [485]*485tenant, and commercial contracts, provided that no evidence of such usage is receivable inconsistent with the meaning of the contract, as derivable from its express terms, or implication there-. from: and also that “usage of trade” shall be understood to refer-ió a particular usage, to be established by evidence, and distinct from that general custom of merchants which is the universal established law of the land, to be collected from the usual sources of common law, and the knowledge whereof is supposed to reside in the breasts of the Judges. This is certainly a doctrine of modern times, in its full efficacy, as it has originated in the commerce of that period, though it is firmly established, as observed by Justice Buller, in the case to be found 2 T. R. 73. It was properly applied on circuit, so far as the case was committed to the jury.

An interesting question is that which relates to the manner in which the plaintiff introduced his testimony obtained by commission at Bremen.

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Related

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5 Mass. 219 (Massachusetts Supreme Judicial Court, 1809)

Cite This Page — Counsel Stack

Bluebook (online)
38 S.C.L. 479, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kuhtman-v-brown-scctapp-1851.