Merrell v. Stuart

220 N.C. 326
Supreme Court of North Carolina·Decided November 19, 1941·Published·Cited by 13 cases

Opinion

"WiNBORNE, J.

That tbe complaint is subject to successful attack by demurrer, we are in accord with tbe court below.

At tbe outset it is appropriate to note tbat tbe common law offenses of champerty and maintenance bave been considered and condemned in tbis State, notably in these cases: Martin v. Amos (1851), 35 N. C., 201; Barnes v. Strong, 54 N. C., 100; Munday v. Whissenhunt, 90 N. C., 458. Compare Smith v. Hartsell, 150 N. C., 71, 63 S. E., 172.

A review of these cases is deemed pertinent.

In Martin v. Amos, supra, tbe Court held tbat a bond executed by defendants for payment of $200 to plaintiffs conditioned tbat plaintiffs “break tbe will” of a deceased person of whom defendants were widow and next of kin, “or if they failed to break tbe will, should pay all tbe costs of tbe suit tbat shall be brought,” is void on tbe ground of maintenance and being against public justice. Nash, J., speaking for tbe Court, said: “Tbe object of all laws is to repress vice and to promote tbe general welfare of tbe State; and no one can be assisted by tbe law in enforcing demands founded on a breach or violation of its principles. Hence springs tbe maxim of common law ‘ex turpi contractu non oritur actio.’ It is tbe public good tbat allows a contract to be impeached for tbe illegality of tbe consideration ... A defendant therefore . . . may . . . prove tbat tbe consideration upon which if was given is illegal, as being immoral or contrary to public policy. Among tbe latter tbe most prominent are contracts affecting tbe course of justice. They are tbe most prominent because every individual in tbe community is interested in tbe pure and upright administration of tbe laws,” and, continuing, “Maintenance is an offense against public justice, and is defined by Justice Blackstone 4 Com., 134, to be ‘an officious intermed-dling in a suit tbat no way belongs to one by maintaining or assisting either party, with money or otherwise, to prosecute or defend it . . . Champerty is a species of maintenance being a bargain with a plaintiff or defendant to divide tbe subject in dispute, if they prevail, whereupon tbe champertor is to carry on tbe suit at bis own expense.’ All contracts, then, founded upon either or both of these offenses are absolutely void. In tbis case . . . there was an officious intermeddling by plaintiffs in a suit tbat no way concerned them, and assisting tbe obligors with money in carrying on a suit to be commenced. Such a contract is immoral and illegal, and a court of law cannot lend its aid to enforce it.”

In Barnes v. Strong, supra, there was involved a contract between a father and son, made during tbe pendency of a suit against tbe father, whereby tbe son agreed to defend tbe suit for tbe father, in consideration of receiving a part of tbe property in controversy, in case of success. Tbe Court held tbe contract to be within tbe prohibition of tbe common law against champerty and hence void. Battle, J., writing for tbe [330] Court, said: “Maintenance in a court of justice is ‘where one officiously intermeddles in a suit depending in any such court which no way belongs to him, by assisting either party with money, or otherwise, in the prosecution or defense of any such suit.’ 1 Hawk. P. 0., ch. 27, Tit. Maintenance. ‘Champerty is the unlawful maintenance of a suit in consideration of some bargain to have part of the thing in dispute or some profit out of it.’ Ibid., Tit. Champerty. • •

“These offenses are of the same nature, the latter being an aggravated species of the former.” And, continuing, it is said that from the authorities on the subject, champerty is an offense at common law, and prevails in this State, being retained under the common law statute in 1 Rev. Stat., chapter 22 (now C. S., 970). The Court further cited the case of Lathrop v. Bank; 9 Metcalf, 489, in which the Supreme Judicial Court of Massachusetts stated: “Maintenance and champerty . . . are deemed illegal, not from the consideration that all the expenses of the litigation are to be borne by a stranger, but in reference to the evils resulting from officious intermeddling, and upholding another’s litigation by personal services as well as money.”

In Munday v. Whissenhunt, supra, Merrimon, J., writing for the Court, said: “One Jones had brought his action in the Superior Court of Alexander County against the testator of the defendants, to recover a tract of land. The plaintiff in this action was in no way a party to or interested in that suit. He was a stranger to it, and not related to the defendant therein. He was not a lawyer, but a layman, and not authorized to manage or defend suits for other people in courts of justice. Nevertheless, he entered into a contract, the substance of which was that the plaintiff in this case should aid the defendant in the action mentioned, in defending and managing his case, and receive as compensation for his services in that respect- one-half of the land in controversy, or one half its value, if the defendant should secure it, or if the suit should be compromised, then one-half of whatever might be realized or saved by such compromise; and if the defendant should entirely fail of success, the plaintiff was in that case to get nothing for his services. This comes clearly within the meaning of maintenance and champerty. It was not the business of the plaintiff to advise about and manage law suits, and he had no authority to do so. He interfered in a litigation that in no way concerned him, and engaged to help one of the parties to it (the defendant), exactly how, does not appear, but in some effective way, and to receive as pay for his services one-half of whatever advantage might be realized by his employer. This is precisely what the law forbids. It does not tolerate or permit such interference. If the plaintiff might so interfere in the case referred to, he may do so in any case, and to any extent. If he may do so, every other person may do likewise; and it is [331] easy to see that the result would be that all manner of combinations and conspiracies would be brought about to prevent and stifle justice, sometimes in one way and sometimes in another. It is a wise, wholesome and necessary provision of the law, justified by the experience of ages, that men shall not interfere in lawsuits in which they have no interest, to help one party or the other in consideration of a part of the fruits of litigation. Such contracts are not only invalid, but it is indictable at the common law to so interfere.”

On the other hand, in Smith v. Hartsell, supra, the Court, in opinion by Holce, J., held that an agreement of a party to give aid in the prosecution of a suit in the determination of which he has an actual interest is not invalid for maintenance or champerty. But it is said that: “This position in no way conflicts with the decision of this Court in Munday v. Whissenhunt, 90 N. C., 458.”

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Merrell v. Stuart, 220 N.C. 326 (N.C. 1941).

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