Morrow v. Inhabitants of Vernon

35 N.J.L. 490
Supreme Court of New Jersey·Decided June 15, 1872·Published·Cited by 1 cases

Opinion

Scudder, J.

The first cause assigned for setting aside the verdict, that the township committee had uo power to make such contract, and that the inhabitants of the township could not confer such authority upon them for the special purposes named therein, under the general powers contained in sections eleven and twelve of township acts, (Nix. Dig. 979,*) is answered by the act approved March 27th, 1866, (Laws of 1866, p. 706,) which enacts “that the proceedings of the inhabitants of said township, at said town meetings, and the acts and doings of the town committee, in carrying the same into effect, be, and the same are hereby made valid and effectual in law,”&c„

Many similar statutes have been passed, and the construction to be given them is established. Where the inhabitants [492] or public authorities have ordered moneys raised and appropriated to the payment of volunteers, substitutes, and drafted men, such action, although irregular, and without authority, is made valid aud effectual by act of the legislature. State v. Demarest, 3 Vroom 528; Hawthorne v. Hoboken, 3 Vroom 172; State v. Apgar, 2 Vroom 358.

To the extent to which their acts are thus ratified, they are legal; and beyond that they are illegal. But it is said this act merely authorizes the township committee to assess and collect the sum of $400 for each man, with interest and expenses, and does not, in terms, confirm the securities given for the payment of the same. The preamble, however, shows that the inhabitants authorized the township committee to borrow, if necessary, on the credit of the township, such sum of money as would be necessary to pay $400 to eacli volunteer, substitute, or drafted man, as would relieve the township, &c. Section one makes valid and effectual the proceedings of the inhabitants, and the acts and doings of the town committee in carrying the same into effect. The power to borrow money, in anticipation of the after assessment and collection, is certainly included in these terms of the statute; and, by implication, any security given to a lender of the money, or to the volunteer, substitute, or drafted man who gave credit to the township, would also be confirmed.

The objection that the action cannot be maintained in the name of the present plaintiff, because the writing is a chose in .action, and not assignable at law, so that the assignee may sue in his own name, is merely formal, and if valid, may be amended by inserting the name of Jennings as nominal plaintiff, upon proper terms. The instrument is not a promissory note, and negotiable, for the payment is uncertain and contingent. It is a contract for the payment of money upon an event which may or may not happen. The assignment also is not made in writing, within the statute, (Nix. Dig. 613, § 26,) nor does it appear that the assignor is dead, (Nix. Dig. 737, § 142,) hence the assignee canunot sue at law in his own name, but must use the name of the original promisee. The court [493] may add formal parties, and strike out such as are improperly joined, upon such terms as to the court may seem fit, for the purpose of determining in the suit the real question in controversy between the parties. Washburn v. Burns, 5 Vroom 18.

It seems to have been assumed by the plaintiff that, because the promise was to pay a sum of money to Jennings or bearer, that the holder, by delivery, is in the position of the owner of negotiable paper by a complete transfer. But this is not so. There lias been a manifest disposition in the courts and in legislatures to extend the operation of the rules applicable to commercial paper to other securities which, by common usage, and for the accommodation of business, pass from hand to hand, representing money values. Many such cases will be found collated in the note to Miller v. Race, 1 Smith’s Lead. Cas. 746; Morris Canal v. Fisher, 1 Stockt. 667; Same v. Lewis, 1 Beas. 329; Winfield, v. Hudson, 4 Dutcher 255. The last case was an action on an “ improvement certificate,” payable to the contractor or the holder, and transferable by endorsement. It was held to be assignable, so that the assignee might sue in his own name, but that such assignment must be made by endorsement, according to the terms of the certificate.

The modifications of the common law that have been introduced, changing the principle that dioses in action are not assignable, so as to vest the right of action in the assignee, are there shown.

As it there appears, in these changes the securities are designed to be circulated and pass by delivery as money, or by sale and transfer, the legal title becomes vested, free from all equities between the prior parties. They establish that large class of securities known as negotiable paper, such as notes, bills, and corporation bonds, which have become the frequent representatives of money in the operations of trade and exchange. An improvement certificate, in the case above cited, was under seal, and assignable in general terms, by our statute concerning obligations, (Nix. Big. 630, § 2,*) but it does not, therefore, belong to the class of negotiable securities. It [494] is a special contract for tire payment of labor, according to the terms of the contract, and not designed to circulate as money, or for sale and transfer by delivery. The instrument of writing given by the township of Vernon is not under seal, and not assignable under the foregoing statute. It is in form a note for the payment of money, at a time specified, to the person named therein, or bearer, stating a consideration which must be rendered, and a contingency upon which the payment depends. There is a double contingency the right to payment is based upon the relief of the township of one man in the draft; and the passage of law sustaining the raising of bounties for drafted men in that call, to the amount named by a tax on the township. If such a note in form were made by an individual, there could be no doubt that it would be not negotiable, although it were made payable to bearer; and there can be no reason or authority shown for a different construction, where it is made by a corporation, or by public officers, unless there be some commercial usage or statutory provision by which its character is changed. None such is averred in the pleadings, or appears in the evidence. The holder must, therefore, prove both points of the proviso before he can recover in the action. This he has attempted to do. A descriptive list of the men called into the service of the United States was offered in evidence, duly certified by the adjutant-general and by the secretary of war, under the seal of the department of war at Washington, by which it appears that Thomas Jennings was enrolled at Vernon, New Jersey, June, 1864, and drafted February 24th, 1865, at Vernon, for one year. This is certified to be a true copy from the records of the provost marshal, fourth congressional district of New Jersey; “and that'Thomas Jennings, named therein, was credited to Vernon township, Sussex county, New Jersey, and the said credit was applied upon the call of December 19th, 1864.”

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Morrow v. Inhabitants of Vernon, 35 N.J.L. 490 (N.J. 1872).

35 N.J.L. 490 (Morrow v. Inhabitants of Vernon) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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