Newbold v. Sims

2 Serg. & Rawle 317
Supreme Court of Pennsylvania·Decided August 8, 1816·Published·Cited by 1 cases

Opinion

Tilghman C. J.

(After stating the facts.) That this Court will not sustain an action originating in an unlawful contract is a principle fully recognised in the cases of Maybin v. Coulon,(a) and Mitchell v. Smith.(b) But whether the contract in this case was originally illegal, is the question.

[320] In the month of December, 1810; when the contract was “entered into, there was no-law prohibiting commercial intercourse between the United States and Great Britain, On the- 2d November, 1810, the President issued his proclamation declaring, that France had revolted her edicts which violated the neutral commerce of the United States. This he was authorised to do by the act of May 1, 1810, and the consequence was, that unless Great Britain revoked her obnoxious orders in council all commercial intercourse between the United States and Great Britain and her'dependencies would be unlawful at the end of three months from the 2d -November, 1810. The illegality of the intercourse therefore depended Upon a contingency, and in the interval between the 2d November, 1810, and the 2d February, 1811, it was lawful to form a plan or contract concerning a voyage from the British dominions in the East Indies, to any port in the United States, to' take effect after the 2d- February, 1811, provided the intercourse should not then be prohibited. Whether the parties to this contract intended to execute their scheme at all'events,' or to relinquish it, in case it should be found to be unlawful after the brig’s arrival at Calcutta, was uncertain. I leftit therefore to the Jury, and their verdict having been for the . plaintiffs, it must be presumed that there was no unlawful intent in the origin of the business.. It follows, that the. contract was not in its origin unlawful, and therefore the defendant was bound to render an account of the money received in Philadelphia and in India. But although the contract was not originally unlawful, it might be, that the law was broken in a later stage of the business. Whatever might be the intent at the commencement of the voyage, yet if the goods Were shipped at Calcutta with an intent to bring, them .into the United,.States, they were liable to forfeiture. Both plaintiffs and-defendant averred in their petition at Charleston, that there wás no intent to violate the law, and it is to be supposed that the Secretary of the Treasury believed them*; otherwise he ought not to have remitted any part of the forfeiture. It must be confessed, however, that the importation into Charleston was. unlawful, and the vessel and cargo 'became thereby liable to forfeiture. But what then ? In consequence' of the remission, new rights were acquired by the plaintiffs. • They became entitled to a large part of .the prorGeqds Of fhé cargo which came into the hands of the defend»[321] ant as their bailiff or receiver, and for which he is accountable. I can see no pretence for refusing to account for the money received from the sales of the cargo; indeed I do not understand that the defendant denies his being accountable, but he says, that he-is accountable only to a certain extent, and on certain principles, and has already fully accounted. Whether he has or has not was a fact for the decision of the jury, and they have decided against him. As to the verdict being against the evidence, our rule is, not to set it aside unless it be clearly so. Now so far is it from being clear that the verdict was wrong, that I incline to think it was right. The defendant ought to account; but to what amount he may be in an-ear I have formed no opinion.

But the defendant supposes, that at all events the verdict is too comprehensive; because the cargo being seized he was discharged from accounting for it. I do not apprehend that this verdict will, preclude the defendant.from shewing to-the auditors in what manner the cargo was taken out of his hands, and so far as it was appropriated to the use of the government, he will be entitled to an allowance. The generality of the verdict will not injure him. It was decided in James v. Browne, (1 Dall. 339.) that in an action of account render between- partners, where the defendant was charged as receiver of money, by the hands of- three persons, the plaintiff having proved the receipt of money from otfe of them only, was entitled tó a general verdict. But at the same time Chief Justice M‘Kean declared, that when the parties came before the auditors, the account should be taken according to the truth of the matter, and he gave many good reasons for construing this action liberally, as we-have no’court of chancery in which a man may be called to acoount. It will not be inferred then from the judgment quod computet entered on this verdict, that the defendant has received all thé precise sums, and at the precise times, mentioned in the declaration. He will have to account for all that he has received, and will be allowed every item. in discharge which he can make out as fairly chargeable , against the plaintiffs.

My opinion upon the whole is against a new trial.

Yeates J.

It has been urged by the defendant’s counsel^ that a general verdict ought not to have been rendered fpr the plaintiffs in this cause, if even part of th^ money charged [322] in the declaration has Keen proved to have come to the de-.. fenclant to be accounted for, inasmuch as the finding of the jury would conclude the auditors hereafter to be appointed, as to the times laid. It is said, the simplicity of the law will not permit contradictory findings and that what might be pleaded in bar to the action cannot bé alleged as a ground of defence before tlie auditors. It is denied, that the plaintiffs had any property in the outward bound cargo, as the monies were obtained on respondentia loans, and that any supposed ownership must necessarily have .ceased by the condemnation of the brig and cargo at Charleston, and any imputed interest in the plaintiffs must take its origin from the remission of.the forfeiture by the secretary of the treasury on the 13th July, 1812, and cannot be extended beyond the 1st August, following. ’ ■ . :

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