McConnaughy v. Pennoyer

43 F. 339, 14 Sawy. 595, 1890 U.S. Dist. LEXIS 207
U.S. Circuit Court for the District of Oregon·Decided August 18, 1890·Published·Cited by 1 cases

Opinion

Deady, J.

On the application of the defendants a rehearing was allowed in this case.

On the argument the case of Hans v. Louisiana, 134 U. S. 1, 10 Sup. Ct. Rep. 504, was cited by counsel for defendant as a case not referred to, because not at hand, on the former hearing.

On examination, the decision was found not to he at all in point, and it was so admitted by counsel.

Briefly, the case was this: A citizen of Louisiana sued the state to recover the amount of certain coupons annexed to the bonds thereof. These bonds were issued in 1874, and by an amendment to the constitution of that year they were declared valid contracts between the state and the holders thereof, and by the constitution of 1879 payment of [340]*340the same was repudiated. The eleventh amendment does not prohibit a suit in the national courts against a state by a citizen thereof, and the judicial powers of the United States extend to all cases arising under the constitution or laws of the United States, (Const, art. 3, § 2,) which jurisdiction is conferred upon .the circuit courts by section 1 of the Act of 1875, (18 St. 470.)

So the plaintiff brought his action against the state, as one arising under the constitution of the United States, which forbids a state to “pass a law impairing the obligation of contracts.”

The case was a new one, the question .involved never having been before the court. It was held that a suit arising under the constitution of the United States cannot be maintained against a state by a citizen thereof, without its consent.

This conclusion rests, in the opinion of the court, on the general doctrine that a state is not suable, except with its own consent, and therefore the grant of judicial power to the United States, though in language extending to all cases arising under the constitution thereof, must be construed as not including a case against a non-consenting state.

But Mr. Justice Bradley, who delivered the opinion of the court, in .conclusion took care to say, (page 20, 134 U. S., and page 509, 10 Sup. Ct. Rep.:)

“To avoid misapprehension it may be proper to add that, although the obligations of a state rest for their performance upon its honor and good faith, and cannot be made the subject of judicial cognizance unless the state consents to be sued, or comes itself into court, yet, where property or rights are enjoyed under a grant or contract made by a state, they cannot be wantonly invaded. Whilst the state- cannot be compelled by suit to perform its contracts, any attempt on its part to violate property or rights acquired under its contracts may be judicially resisted; and any law impairing the obligation of contracts under which such property or rights are held is void, and powerless to affect their enjoyment.”

Now, the case under consideration is clearly wdthin this category. While the purchaser of this property may not be able to sue the state to compel a specific performance of its contract to convey the same to him when he is entitled thereto on “reclamation” and payment of the balance of the purchase price, because a “state,” in the language of the court, “cannot be compelled to perform its contracts,” yet the purchaser has already acquired an interest in this land under his contract with the state, and a right to the possession and enjoyment of the same in the mean time; and any attempt by the state or its agents to deprive him of such interest or right, or to impair the -value of the same, contrary to such contract, may be judicially resisted. And that is what the plaintiff seeks to do by this suit.

On the argument counsel for the defendants endeavored to show that this case came within the ruling in Re Ayers, 123 U. S. 443, 8 Sup. Ct. Rep. 164.

But the cases are really just the antipodes of each other. The court, in that case, after stating the general rule as laid down in Hagood v. Southern, 117 U. S. 52, 6 Sup. Ct. Rep. 608, that a suit against the offi[341]*341cers of a stale to compel them to do and perform certain acts, which, when done and performed, constitute a performance of an alleged contract by such state, is a suit against the state, say, (page 502, 123 U. S., and page 181, 8 Sup. Ct. Rep.:)

“The converse of this .proposition must be equally true, because it is contained in it; that is, a bill, the object of which is by injunction indirectly to compel tiie specific performance of the contract, by forbidding all those acts and doings which constitute breaches of the contract, must also necessarily be a suit against the state.”

Now, the plaintiff in this case is not seeking by this suit to compel the performance, directly or indirectly, of any contract with the state.

On the sale of this land under the act of 1870 the purchaser or his assignee became entitled, on payment of the purchase price and proof of reclamation within the time prescribed, to a conveyance from the state.

If this were a suit to compel the specific performance of so much of that contract as remains unperformed by the state, — that is, the execution by these defendants of a conveyance of the land to the plaintiff, — -it would be a suit against the state, although not named in the record.

A decree for the plaintiff in such a case would require the defendants to do and perform an act which they could only do as the agents and representatives of the slate, and therefore the court would be without jurisdiction.

, By this suit the plaintiff is not seeking to compel the defendants to do or perform any act, but rather to prevent their doing an act injurious to his right and interest in this property, without authority of law or the state, and contrary to its express contract.

If the legislature had authorized the defendants to cause suit to he brought against the purchasers under the act of 1870 to declare the contracts of sale void for want of compliance with the conditions subsequent, and the plaintiff should bring a suit to enjoin the defendants from bringing any suit against him, alleging that he was not in default as to any of said conditions, the ease would be parallel with In re Ayers, and the answer would be the same in each case; this is a suit against the defendants, as agents and representatives of the state, to prevent the state from doing a lawful act, namely, to bring a suit to set aside a sale of its lands, which it claims has become forfeit for want of compliance with the terms of the sale, and in which the plaintiff may allege and show a compliance with the contract, and thereby defeat the suit.

On the rehearing no question was made but that the legislation under which the defendants are acting in making sales of the plaintiff’s land is unconstitutional and void, and therefore furnishes no justification for their conduct.

On the hearing it was not seriously questioned that equity would grant the relief sought by the plaintiff in this case if the suit was not one against the state, on the ground of preventing a cloud being cast on his title, and also of preventing a multiplicity of suits.

On this point counsel at the rehearing contended himself with saying [342]

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McConnaughy v. Pennoyer, 43 F. 339, 14 Sawy. 595, 1890 U.S. Dist. LEXIS 207 (circtdor 1890).

43 F. 339 (McConnaughy v. Pennoyer) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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