Milne v. Huber

17 F. Cas. 403, 3 McLean 212
CourtU.S. Circuit Court for the District of Ohio
DecidedJuly 15, 1843
StatusPublished
Cited by14 cases

This text of 17 F. Cas. 403 (Milne v. Huber) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the District of Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Milne v. Huber, 17 F. Cas. 403, 3 McLean 212 (circtdoh 1843).

Opinion

OPINION OF THE COURT. This action is brought under the statute against the defendants as stockholders of the Washington Library Association, which was engaged in unlawful banking. Pour thousand dollars of the notes in circulation, issued by said institution, and held as collateral security for the payment of three thousand dollars, were given in evidence. Also the following bill of exchange: “$3000.00 Gentlemen, Cincinnati, August 5th, 1840. Sixty days after date pay to the order of E. L. Jones, cashier, three thousand dollars, and charge to account of your ob’t ser’t. John Phillips. Directed to Messrs. Sylvester & Co. Indorsed, E. L. Jones, cashier, G. J. Slocum.”

[404]*404By the 9th section of the act to prohibit the issuing and circulating of unauthorised bank paper, passed 27th January, 1816 [Laws 1816, p. 10], it is declared, “that all bonds, bills, notes, or written contracts, given to an unau-thorised bank, or given' to any person or persons, for the use of such bank, &e. shall be void,” &c. The 10th section provides, “that every stockholder, shareholder, or partner, hereafter interested in any such bank, shall be jointly and severally answerable, in their individual capacity, for the whole amount of the bonds, bills, notes and contracts of such bank,” &c. The 12th section authorises suit and judgment against any part or the whole of the persons interested in the bank. By the 23d section of the act of 28th January, 1824 [Laws 1824, p. 358], it is provided, “that no action shall be brought upon any notes or bills, hereafter issued by any bank, banker, or bankers, intended for circulation, or upon any note, &c. made payable to the bank, unless such bank, &c. shall be incorporated, &c. but that all such notes shall be held and taken in all courts as absolutely void.” The 8th section of the act of the 23d of March, 1840 [38 Ohio Laws, p. 117], repeals so much of the above section, “as prohibits actions to be brought upon any notes or bills, issued after the passage of said act, by any bank, &c. un-'ess it shall be incorporated, &c., and which declares that such notes shall be void.” So far as the act of 1824 was repugnant to that of 1816, it was repealed. The repugnancy consists in the latter act taking away the right of action given against the stockholders, &c, by the act of 1816. And the question here arises whether the repeal of the act of 1824 revives that part of the act of 1816 which was repealed by it.

By a general act, passed 14th of February, 1809 .[Laws 1809. p. 162], it is provided, “that whenever a law shall be repealed, which repealed a former law, the former law shall not thereby be revived unless specially provided for.” This provision, it is contended, applies only to laws expressly repealed, and not to an appeal Dy the repugnancy of the latter act. That the repugnancy does not repeal, but suspends the prior act, which is restored to its full vigor on the repeal of the repugnant act. This distinction seems not to be sustained. Whether the repeal be express or by reason of a repugnant act, subsequently passed, cannot be material in regard to this question. If the repealing act be repealed, it cannot, under the statute cited, give life to the act first repealed. So much of the act of 1824 as prohibited actions' ofi the notes or bills of unau-thorised banks, and which declares such notes and bills void, having been repealed by the act of 1S40, and such repeal not having given vitality to such parts of the act of 1816 which were repugnant to the 'act of 1S24, we must construe the act of 1S16 as it now stands. In this view, sections 11,12, 13 and 14, of the act of 1816, which regulate suits against the stockholders of an unincorporated bank by the bill-holders, are repealed; and we are to inquire whether, under other sections of the act, the bill-holders, or the holder of the bill of exchange, set out in the declaration, can maintain an action.

There is no express prohibition of an action by the bill-holders; but the act inflicts a penalty for issuing such bills, and for receiving or offering them in payment. This makes the whole transaction unlawful, and this is a fatal objection to the action. If the contract arises out of an illegal act, or is connected therewith, there can be no recovery upon it. Looking only to the act of 1816, the bank organization was against law, the issuing of the notes was prohibited under a penalty, and the receiving and offering such bills in payment subjects an individual to a penalty. Now every step taken in the creation and circulation of these notes or bills, was unlawful, and consequently no action can be brought on them. The act of 1816 was a public act, and the plaintiffs, when they received the bills in question', had notice that they were created and put in circulation in violation of law. The same objection applies to the bill of exchange. The act of the 23d of March, 1840, repealed the act establishing “The Washington Library Association,” and in the second section of the repealing act, enacted “that each and every stockholder in, or mem-' ber of, said company, is hereby declared to be jointly and individually liable for all bills, notes or other property issued or outstanding against said company; and also for any other liability or debt of said company. And the said company is vested with power to collect and receive such assets and valid claims as it may hold against any individual or company, in order to close up and settle the affairs of said company, but for no other purpose whatever.”

The effect of this act is now to be considered. Whether the legislature had the power to repeal the charter of “The Library Association,” is not necessarily involved in this inquiry. Nor can the decision of it, either way, materially affect the question between the parties on the record. But the charter involved private interests, although the power of banking might not have been given, which no. act of the legislature could divest Such interests are as well secured, and on the same principle, as a deed secures to the grantee a title to his land. If there was an abuse of the charter, by which it became liable to forfeiture, the inquiry should have been made, and the forfeiture enforced by a judicial procedure. But, if that part of the act which purports to repeal the charter, be unconstitutional and void, it does in no respect affect the validity of the second section of the act. An act may be void in part and good in' part. Where a contract is made in express violation of law. a repeal of the prohibitory act does not impart validity to the contract. But this principle does not apply to the case under consideration.

[405]*405The hill of exchange bears date the 5th of August, 1840, and at that time the notes or bills of the bank were received by the plaintiffs. The dates of those bills are not material, as the dates do not show the time they were put into circulation. This transaction took place five months after the act giving a remedy to the creditors of the association, in order to close its business. Now the bill of exchange may have been given to close the concerns of the bank, within the meaning of the act. A large amount of the bills of the institution being in the hands of the plaintiffs, they took the bill of exchange, and retained the notes of the institution as collateral security. Had the legislature power to make this provision? It will be observed that, in the act of 181G, the organization of the bank and the issuing of the bills were expressly prohibited, and a penalty was annexed for doing any of the prohibited acts; still, in the same law, a remedy was .given against the stockholders by the bill-holders. That the prohibitory parts of the act, above referred to.

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

Related

Barclay & Co. v. United States
41 Cust. Ct. 135 (U.S. Customs Court, 1958)
Jackson v. Michigan Corrections Commission
21 N.W.2d 159 (Michigan Supreme Court, 1946)
In re Bautista
245 F. 765 (N.D. California, 1917)
State v. Mines
18 S.E. 470 (West Virginia Supreme Court, 1893)
People v. Bussell
26 N.W. 306 (Michigan Supreme Court, 1886)
United States ex rel. Watson v. Port of Mobile
12 F. 768 (U.S. Circuit Court, 1882)
Anding v. Levy
57 Miss. 51 (Mississippi Supreme Court, 1879)
Thorp v. Hammond
42 How. Pr. 314 (Supreme Court, 1871)
Gilliland v. Phillips
1 S.C. 152 (Supreme Court of South Carolina, 1869)
Horton v. Mobile School Commissioners
43 Ala. 598 (Supreme Court of Alabama, 1869)
Scheible v. Bacho
41 Ala. 423 (Supreme Court of Alabama, 1868)
Dively v. City of Cedar Falls
21 Iowa 565 (Supreme Court of Iowa, 1866)
Banchor v. Mansel
47 Me. 58 (Supreme Judicial Court of Maine, 1859)
Kearny v. Buttles
1 Ohio St. (N.S.) 362 (Ohio Supreme Court, 1853)

Cite This Page — Counsel Stack

Bluebook (online)
17 F. Cas. 403, 3 McLean 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/milne-v-huber-circtdoh-1843.