McDonald v. Napier

14 Ga. 89
CourtSupreme Court of Georgia
DecidedAugust 15, 1853
DocketNo. 15
StatusPublished
Cited by32 cases

This text of 14 Ga. 89 (McDonald v. Napier) is published on Counsel Stack Legal Research, covering Supreme Court of Georgia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McDonald v. Napier, 14 Ga. 89 (Ga. 1853).

Opinion

By the Gourt.

Nisbet, J.

delivering the opinion.

[1.] On the trial of the cause below, the defendants there, and the plaintiffs in error here, Messrs. McDonald, Bailey & Powers, requested the Court to instruct the Jury, that if they were the attorneys or solicitors of Rice, the plaintiff in the fi. fa. and Napier paid the money to them for Rice, as such attorneys or solicitors, without fraud, duress or mistake, they are not liable to be sued by Napier; and if there was any fraud, du[95]*95ress or mistake, he was bound to allege and prove it. Judge Johnson declined to give tlie instruction asked; but after stating the case, and adverting particularly to the facts that the money paid by Napier to the plaintiffs in error, McDonald, Bailey & Powers, was paid by him as a defendant in a decree, which was afterwards reversed; instructed tho jury, “that if the case stopped here, and there wore no other facts involved, there is no doubt but that the jilaintiff, Napier, would be entitled to recover ; for there is no rulo of law better settled, than that when an individual pays money upon a judgment, which is afterwards set aside, lie may recover it back, in tlio form of action, which is here brought; and the samo rule is equally applicable, when the money is paid to the agent of the plaintiffs in the judgment, if it still be in his hands, not paid over to Ms principal.” Although, in No. 17, the plaintiffs in error make a number of assignments; yet they all grow out of tlie charge, as above requested, and as above given. The case only requires tho consideration of the question, did the Court, in his instruction, administer the law correctly ? The first proposition of tlio Court is true. It is true, that when an individual pays money upon a judgment, which is afterwards set aside, ho may recover it back, in an action for money had and received to his use. But we differ with the learned Judge, in the further statement, that if money be paid to the agent of the plaintiff in a judgment, which is afterwards set aside, the agent is liable for it in an action for money had and received, to the use of the payer. Our opinion is, that the agent, in such a case, is in no event liable; but the payer must look to the principal. If it he true, that Napier paid the money to the plaintiffs in error, as the attorneys or solicitors of Rice, the plaintiff in the decree; then the plaintiffs in error are not liable to him; although the money be still in their hands, and the decree be reversed.

[2.] The rule is correctly stated, in the request of the plaintiffs in error. It is a rule well settled in tho Law of Principal and Agent. If money be paid to any one, whether agent or not, by fraud or duress, tho person receiving, is liable to refund it. Fraud or duress, will make the receipt of the money [96]*96illegal; and it is in Ms hands, for the use of the payer. He cannot in conscience, retain it — he cannot protect himself upon the ground of his being an agent; for the Law of Agency does not shelter either fraud or violence. There is no pretence here, that the plaintiffs in error received this money from Napier fraudulently — none in tho facts of tho case, and none set up in the argument. Nor can it be said, with the least possible degree of truth, that Napier entered into this agreement, and paid this money under duress. Duress is of two kinds: 1st, duress of imprisonment, when aman actually looses Ms liberty; and 2d, duress, per minas, when a man is put in fear, by threats of loss of life, of loss of member, of mayhem, or of imprisonment. (2 Just. 482. 1 Blade. Com. 131. 2 Rolls Abr. 124. Bacon’s Ab. title Duress. Foster’s Crown Law, 322. 2 La Raymond, 15, 78.)

Here the plaintiffs in error, representing a judgment against Napier, and having ordered a levy, agreed with him to forbear tho levy, upon certain terms, upon his paying their fees as counsel in the case. Ho voluntarily entered into the agreement; and although induced doubtless so to do, to avoid a levy, was not imprisoned or threatened with loss of life, loss of member, with mayhem or imprisonment. It would be a novel judgment, to hold that a defendant, threatened with a levy, by virtue of a valid, subsisting execution, is under duress.

Another class of cases, in which an agent is liable, is where money is paid to him, to which his principal has no legal right; or whore it is paid to him by mistake. I have no doubt but that the presiding Judge fell into error, by not distinguishing between this class of cases, and the caso before him. The rule given to tho jury, as applicable to this class of cases, however, is not laid down with sufficient fullness. The rule is this, to wit: so long as the money has not been paid over by the agent to his principal; nor his situation altered, relatively to his principal, as touching that fund, it may be recovered from him. Neither ho nor his principal, is, in conscience, entitled to retain it; but, ex equo et bono, it belongs to the payer; and an action lies to recover it. It is not the property of tho [97]*97agent; and therefore he cannot retain it. And it is not the property of the principal; and therefore, ho docs not hold it for the use of the principal. He holds it for the use of him who illegally, or by mistake, has paid it. The agent is not liable to the principal for it. The equitable action for money, had and received for his use, will lie against the agent, to recover it back. To charge the agent, it would seem not to be 'necessary for the payer to give notice to him not to pay over the money — inasmuch as his right of action does not depend upon the notice; but upon the illegality of its receipt. (See the Bank of the United States vs. The Bank of Washington, 6 Peters T. C. R. 8 to 18. Hearsey vs. Pruyen, 7 Johns. R. 179.) Rut if notice be given before the money is paid over, and before the agent’s situation is altered, he will be liable, even if he does pay it over, or his situation is afterwards altered. In the cases in the books, in relation to this matter, the controversy very often turned upon the question, what amounts to payment over; and what constitutes such an alteration of the situation of the agent, as will protect him? I do not go into this inquiry, as this is not -a case of money to which the principal was not legally entitled; nor did the agents exceed their authority in the receipt -of it; nor was it paid to them by mistake, except so far as to say, that it is well settled that if before notice, the agent gives fresh credit to his principal, on the faith of the money received, his situation is altered, and he is not liable. For the general rule, see Paley on Agency, by Dunlap, 388, and notes. Story on Agency, §300. 3 Chitty on Com. and Manuf. 313. 2 Liverm. on Agency, 264 to 266. Duller vs. Harrison, Cowp. 565. Cox vs. Prentice, 3 M. S. 345. 1 Taunton, 359. 4 Burrow, 1987. 7 Cowen, 460. 5 Taunton, 815.

This case stands apart from fraud, duress, mistake, or want of legal right in the principal, to receive the money. And we are clear, that if the recovery of the plaintiff below, depended upon the liability of the plaintiffs in error, as agents, he would be obliged to fail. The decree was a valid, unimpeached recovery, in favor of Rice, the Receiver of the Bank of Macon, [98]

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14 Ga. 89, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcdonald-v-napier-ga-1853.