Lams v. F. H. Smith Co.

178 A. 651, 36 Del. 477, 6 W.W. Harr. 477, 105 A.L.R. 646, 1935 Del. LEXIS 11
CourtSuperior Court of Delaware
DecidedMarch 13, 1935
DocketNo. 71
StatusPublished
Cited by15 cases

This text of 178 A. 651 (Lams v. F. H. Smith Co.) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lams v. F. H. Smith Co., 178 A. 651, 36 Del. 477, 6 W.W. Harr. 477, 105 A.L.R. 646, 1935 Del. LEXIS 11 (Del. Ct. App. 1935).

Opinion

Rodney, J.,

delivering the opinion of the Court:

The pleas of the defendant having set up the Delaware [479]*479Statute of Frauds and the plaintiffs’ demurrer having been directed thereto, the question presented is whether the Delaware law (the law of the forum) shall be applied in the case. The answer to this question involves the construction of the naturae and character of the Delaware Act. The question is whether, on the one hand, the Act is procedural in nature, having to do with the remedy, or, more properly speaking, the process of machinery by which rights under the contract are litigated or whether, on the other hand, the Act is to be construed as affecting the substance, the formalities or the enforceable validity of the contract itself, as a contract.

The cited Delaware Act is almost the counterpart of the English Act. The leading case adopting the view of the procedural nature of the Statute was Leroux v. Brown [1852], 12 C. B. 801, 138 E. R. 1119. As pointed out in Emerson v. Universal Products Co., 6 W. W. Harr. (36 Del.) 543,162 A. 779, however,'the Delaware Act was adopted in 1752, exactly one hundred years before the decision of Leroux v. Brown, and that case is, therefore, entitled to the greatest respect but is in no sense binding on this Court.

In Leroux v. Brown, supra, an oral agreement, not to be performed within a year, had been entered into in France and was enforceable there. Suit was brought upon the contract in England and it was held that Section 4 of the Statute of Frauds applied to the procedure and that the suit could not be maintained unless the contract was in writing in conformity with the English Law. A distinction was drawn between the words of the 4th Section, “no action shall be brought,” and those of the 17th Section, “no contract shall be allowed to be good.” This distinction has not generally been approved either in England or America and in England the wording of the 17th Section was changed by the “Sale of Goods Act” (1893), so as to read “shall not [480]*480be enforceable by action” so as to make the two Sections conform. In construing the Delaware Act we are not confronted with any variaton or distinction between the language of the two Sections originally known as Section 4 and Section 17. Section 17 was not adopted in Delaware (Alderdice v. Truss, 2 Houst. 268) until its new language, as found in the English “Sale of Goods Act,” was incorporated in our Law in 1933 by the approval of the Uniform Sales Law, Vol. 38, Laws of Delaware, c. 158, p. 570, § 2644-F. It would seem that both Sections of our Law must, therefore, relate to the substance or formalities of the contract or both must simply relate to and exclude the remedy.

Leroux v. Brown has not been reversed and still represents the law as it exists in England, but this result has not been continued without dissent for Willes, J., in Williams v. Wheeler [1860], 8 C. B. (N. S.) 299, 141 E. R. 1181, stated he “was not satisfied that either of the Sections to which reference has been made, warrants the decision.” See, also, Gibson v. Holland, 1 L. R. C. P. 1.

Most of the American decisions discussing the nature and character of the Statute of Frauds, and especially in connection with the conflict of laws, may generally be divided into three groups:

(1) those that adopt the distinction laid down in Leroux v. Brown and hold the Statute remedial or procedural ;

(2) those that repudiate the distinction yet still hold the Statute remedial; and

(3) those that repudiate the distinction and hold the Statute is substantive.

In the first group may be found cases like Kleeman v. Collins, 9 Bush (Ky.) 460; Downer v. Chesebrough, 36 Conn. 39, 4 Am. Rep. 29; Boone v. Coe, 153 Ky. 233, 154 S. W. 900, 51 L. R. A. (N. S.) 907; Third National Bank v. [481]*481Steel, 129 Mich. 434, 88 N. W. 1050, 64 L. R. A. 119. These cases are not greatly persuasive, for it. is uncertain what measure of reliance is placed upon the distinction (with which we are not here concerned) and which distinction, even in England, seems not now to be entirely endorsed. See Morris v. Baron & Co., L. R. 1918 A. C. 1. Wharton on Conflict of Latos, which treats at length of the distinction in Leroux v. Brown, says that (§ 690-/) :

“In view of the anomalous results that follow from a strict application of the distinction made in Leroux v. Brown and the tendency, already noted, to repudiate that distinction, the better view is to regard a provision of the Statute of Frauds as substantive rather than remedial.”

In the second group may be found Heaton v. Eldridge & Higgins, 56 Ohio St. 87, 46 N. E. 638, 36 L. R. A. 817, 60 Am. St. Rep. 737, and, possibly, Buhl v. Stephens (C. C.), 84 F. 922, and Straesser-Arnold Co. v. Franklin Sugar Refining Co. (C. C. A.), 8 F (2d) 601. It may be worthy of remark that Leroux v. Brown found it necessary to discover the distinction between the two sections in order to find Section 4 procedural and it may not be entirely clear what that decision would have been without the distinction. Wharton on the Conflict of Laws, § 690-c, says that most of the cases that repudiate or ignore the distinction hold the Statute to be substantive and, says Wharton, “this position seems to be the correct one if the distinction is to be repudiated.”

In the third group holding that the Statute of Frauds should be construed as substantive and not procedural are many well reasoned cases supported by articles by leading educators. Halloran v. Jacob Schmidt Brewing Co., 137 Minn. 141, 162 N. W. 1082, L. R. A. 1917E, 777; Cochran v. Ward, 5 Ind. App. 89, 29 N. E. 795, 31 N. E. 581, 51 Am. St. Rep. 229; Matson v. Bauman, 139 Minn. 296, 166 N. W. 343; Miller v. Wilson, 146 Ill. 523, 34 N. E. 1111, 37 Am. [482]*482St. Rep. 186; Goodrich, Conflict of Laws, § 88; Restatement, Conflict of Laws, § 334, “Statute of Frauds and the Conflict of Laws,” 32 Yale Law Journal 311. See, also, as to Pennsylvania Act (33 PS, § 1, et seq.), being substantive, Franklin Sugar Co. v. Martin-Nelly Co., 94 W. Va. 504, 119 S. E. 473; Franklin Sugar Refining Co. v. Holstein Harvey’s Sons (D. C.), 275 F. 622; Franklin Sugar Co. v. William D. Mullen Co. (D. C.), 7 F. (2d) 470.

Some Courts in holding their Statute as procedural and as merely affecting the remedy have seized upon the title of the original English Act (1677), “An Act for Prevention of Frauds and Perjuryes,” and of the language of Section 4, “no action shall be brought,” as indicative of a legislative intent to limit the opportunities of perjury by preventing the introduction of oral testimony when the circumstances of the transaction had become dimmed by lapse of time or other circumstances require a written memorandum.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Friedman v. Clark
248 A.2d 867 (Court of Appeals of Maryland, 1969)
Dietrich v. Texas National Petroleum Co.
193 A.2d 579 (Superior Court of Delaware, 1963)
Stein v. Pulaski Furniture Corporation
217 F. Supp. 587 (W.D. Virginia, 1963)
Prashker v. Beech Aircraft Corporation
258 F.2d 602 (Third Circuit, 1958)
Prashker v. Beech Aircraft Corp.
258 F.2d 602 (Third Circuit, 1958)
Davis v. Smith
125 F. Supp. 134 (D. Delaware, 1954)
Smith v. Onyx Oil & Chemical Co.
120 F. Supp. 674 (D. Delaware, 1954)
Woolley v. Bishop
180 F.2d 188 (Tenth Circuit, 1950)
Wilmington Trust Co. v. Mutual Life Ins.
177 F.2d 404 (Third Circuit, 1949)
Kane v. Chrysler Corporation
80 F. Supp. 360 (D. Delaware, 1948)
Canister Co. v. National Can Corp.
63 F. Supp. 361 (D. Delaware, 1945)
Harris v. New York Life Insurance
33 A.2d 154 (Court of Chancery of Delaware, 1943)

Cite This Page — Counsel Stack

Bluebook (online)
178 A. 651, 36 Del. 477, 6 W.W. Harr. 477, 105 A.L.R. 646, 1935 Del. LEXIS 11, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lams-v-f-h-smith-co-delsuperct-1935.