Lowry v. Hall

2 Watts & Serg. 129
Supreme Court of Pennsylvania·Decided September 15, 1841·Published·Cited by 7 cases

Opinion

The opinion of the Court was delivered by

Gibson, C. J.

The case of Johnson v. Hunt, (23 Wend. 87), so much relied on, does not touch the point before us. It rules no more than that an insolvent debtor’s voluntary assignment of personal property abroad, is not to be affected by process of attachment in the nature of a commission of bankruptcy which operates, as it must, only upon his property at home. The assignment in that case was not procured by coercion of the law of Pennsylvania, where the property happened to be at the time. The absconding debtor gave it to discharge a debt for which he was arrested in execution; and the payment was, in contemplation of law, a voluntary one. The property, being beyond the confines of the state, was neither attached, nor subject to attachment by the law of New York, and might well be dealt with as if the owner were domiciled at the place of the actual situs. The court, therefore, very properly disregarded the supposed lien of the attachment in New York, and held the transfer good by the law of Pennsylvania. The principle of that case is precisely the principle of Mulliken v. Aughinbaugh, (1 Penns. 117), in which an inhabitant of Maryland was not allowed to attach a debt in Pennsylvania which the creditor in Maryland had assigned to obtain a discharge from arrest under the insolvent law of that state; and the same rule would have been applied to an attachment by an inhabitant, of Pennsylvania, because, unlike a commission of bankruptcy which is in invitum, the proceeding to insolvency was sought by the debtor as a remedy, of which a general assignment of his effects was the price; and because the voluntary transfer of a chattel by the debtor, if it be not forbidden in other respects by the law at the place of the situs, is to be as much regarded there, or elsewhere, as it would be at the place of the domicil. The scope of the American cases is, that an involuntary transfer, by process abroad, within the jurisdiction of the state at the time, will be disregarded only so far as to protect the claims of our own citizens; but in Abraham v. Plestoro, (3 Wend. 538), the rule of [132] comity was so far narrowed that an assignment under a British commission of bankruptcy was held void against a British creditor not domiciled here, and consequently not having acquired an American character for commercial purposes. This constitutes the difference between the American measure of comity, and the British, which allows a foreign transfer to operate on effects in England, whether it were voluntary or by operation of law.

But moveable property, whose actual situs is in the country of the owner’s domicil, is so far subject to the laws in force there, that no foreign tribunal will question the validity of an involuntary transfer of it by operation of them; nor was this principle doubted even in Abraham v. Plestoro, for the senators who overruled the chancellor and the law judges, seem to have thought that the property was beyond the reach of the British bankrupt laws at the point of time deemed material by them. Indeed, without that, the case would not have a foot to stand on; and even conceding the fact, it is difficult to understand how the principle of comity could be dispensed with in favour of those who had no peculiar claim to the court’s protection. As a precedent emanating from the highest judicial authority in New York, that decision must of course rule the law in that state; but the dissenting-opinion of Mr Justice Marcy will probably command more respect elsewhere. To sustain a title under a foreign judgment it is sufficient that the court had jurisdiction of the cause and the parties, whether the proceeding were in personam, or in rem; and it can not be said, in respect of the latter, that there is want of jurisdiction when the thing is subject to the law at the locus contestationis litis, and when all men are parties. In the case before us, not only the thing but the litigants were subject to the law of New York. It is emphatically remarked by Mr Justice Story in his Conflict of Laws, that the law protects nothing w'hich it has not a right to regulate; and hence, it is, that he who sends his property abroad, submits it beforehand to all the regulations in force where it is sent. The law of the actual situs, therefore, not only pi’otects the ownership of moveable property, but prescribes the mode of its transfer; and I take it that neither a British nor an American creditor could successfully contest the validity of an assignment under a British commission of bankruptcy, if the property had been in England at the time of the assignment, or perhaps at the time of the act of bankruptcy. That such assignees are allowed to maintain actions in our courts, for any purpose, shows that those laws are permitted to have an operation on the title to property in this country, at least to some extent; and the proper limitation of it seems to be that the principle of comity be not carried so far as to let the effects be withdrawn from our jurisdiction before our own citizens, or domiciled foreign merchants, are satisfied. In all beside, I see no impropriety in suffer[133] ing foreign laws to operate here on the rights and property of those who would be bound by them at home.

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Lowry v. Hall, 2 Watts & Serg. 129 (Pa. 1841).

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