Newman v. Moyers

47 App. D.C. 102
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 3, 1917
DocketNo. 3021
StatusPublished

This text of 47 App. D.C. 102 (Newman v. Moyers) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Newman v. Moyers, 47 App. D.C. 102 (D.C. Cir. 1917).

Opinions

Mr. Justice Van Ojisdel

delivered the opinion of the court:

The validity of plaintiffs’ contract is not questioned. Indeed, such contracts have the express sanction of law. U. S. Pev. Stat. sec. 823, Comp. Stat. 1916, sec. 1315. Similar contracts have been upheld frequently hy the courts. Wylie v. Coxe, 15 How. 415, 14 L. ed. 753; Taylor v. Bemiss, 110 U. S. 42, 28 L. ed. 64, 3 Sup. Ct. Rep. 441; Nult v. Knut, 200 U. S. 12, 50 L. ed. 348, 26 Sup. Ct. Rep. 216; McGowan v. Parish, 237 U. S. 285, 59 L. ed. 955, 35 Sup. Ct. Rep. 543; Roberts v. Consaul, 24 App. D. C. 551. In the latter case this court said: “Persons having claims against the United States that must be collected through proceedings in the court of claims are practically compelled, in the majority of cases, to employ attorneys and contract with them for fees contingent upon success. Such contracts are not. unlawful, and. may be enforced according to their terms where fair and reasonable. Taylor v. Bemiss, 110 U. S. 42, 45, 28 L. ed. 64, 65, 3 Sup. Ct. Rep. 441.”

The claim of Mrs. Erskine was for the value of property taken by the United States military forces during the Civil War. It therefore constituted a valid, subsisting debt of the government. While it is true that the Sovereign cannot be sued except by its consent, such consent was given in this instance, and a tribunal was designated to which the claimant could resort to have her rights adjudicated. Suit was brought in the court of claims under what is known as the. Tucker Act (24 Stat. at L. 505, chap. 359). The case was there prosecuted by plaintiffs pursuant to their contract, and the amount due from the government, to claimant was duly found and certi[109]*109lied to Congress for payment by appropriation. It was not, therefore, a mere bounty or gratuity, in respect of tbe payment of wliieli no obligation whatever is imposed upon the government. Congress, in respect of this claim, as well as of other claims embraced in the War Claims Act of .March 4, 1915, was called upon to discharge a debt of the United States, — a duty imposed by the Constitution, which, in express terms, forbids the talcing of private property for public use without just compensation.

But does the provision of the War Claims Act under consideration abridge the liberty of contract granted the citizen by the Constitution? The word “contract” does not appear in the 5th Amendment, but the word “liberty” therein used has a much broader meaning than the mere absence of physical duress. “The liberty mentioned in that amendment means not only the right of the citizen to be free from the mere physical restraint of his person, as by incarceration, but the term is deemed to embrace the right of the citizen to be free in the enjoyment of all his faculties; to be free to use them in all lawful ways; to live and work where he will; to earn his livelihood by any lawful calling; to pursue any livelihood or avocation, and for that purpose to enter into all contracts which may be proper, necessary, and essential to his carrying out to a successful conclusion the purposes above mentioned.” Allgeyer v. Louisiana, 165 U. S. 578, 589, 41 L. ed. 832, 835, 17 Sup. Ct. Rep. 427. To the same effect are the decisions in Williams v. Fears, 179 U. S. 270, 274, 45 L. ed. 186, 188, 21 Sup. Ct. Rep. 128; United States v. Joint Traffic Asso. 171 U. S. 505, 572, 43 L. ed. 259, 288, 19 Sup. Ct. Rep. 25; Addyston Pipe & Steel Co. v. United States, 175 U. S. 211, 44 L. ed. 136, 20 Sup. Ct. Rep. 96.

The terms “liberty” and “property” as used in the Constitution are of similar import. It is difficult to define “liberty of action” without invading the domain of property rights. The right to contract is both a liberty and a property right. Freedom of action involves the right to make and enforce contracts, and included in this right is the right to acquire and dispose of property'. The claim of Mrs. Frskine before the passage of [110]*110the War Claims Act was property of a character which she could have disposed of by will. With the approval of the bill appropriating for its payment the proceeds, were property the payment of which could be enforced by mandamus. United States ex rel. Parish v. MacVeagh, 214 U. S. 124, 53 L. ed. 936, 29 Sup. Ct. Rep. 556. Likewise was the contract plaintiffs’ property. This is trite whether the act be construed, as we have held, as prohibiting the receipt by plaintiffs, irrespective of the source from which it is paid, of the portion of the fee contracted for in excess of 20 per cent of the amount appropriated, or merely as depriving them of their lien on the particular fund, leaving unaffected their right to subject other property of defendant to the payment of such fee. The provision of the contract for a lien creates a valid right, and, as such, is entitled to the same protection as any other legal right created thereby. It may well be that, in many of these war claims cases, the claimants have no property other than the fund recovered; and to deprive counsel of the right to enforce their contracts for compensation out of those funds would, in effect, render them valueless. The contract here had been executed so far as plaintiffs were concerned. As this court said in Roberts v. Consaul, 24 App. D. C. 560, where a similar contract was involved: “The services of the attorney, as contracted for, were performed and the consideration therefor earned when 1he judgment was recovered. All that remained for him to do, if permitted, was to receive the draft for the appropriation made by Congress for the payment of the judgment.” The Supreme Court went further in McGowan v. Parish, 237 U. S. 285, 59 L. ed. 955, 35 Sup. Ct. Rep. 543. McGowan had been employed under a contingent fee contract to prosecute the claim of Parish. Before completion of the case Parish employed other counsel and attempted to dispense with McGowan’s services. The court upheld the right of the executrix of McGowan to recover on the contract. Such a contract must be property, for an executor takes nothing' by virtue of his appointment but property belonging to the testator. In Williams v. Heard, 140 U. S. 529, 35 L. ed. 550, 11 Sup. Ct. Rep. 885, the court, speaking of the validity of a claim for a portion of the fund [111]*111paid by Great Britain to tbe United States as tbe result of tlie settlement of the Alabama claims, said: “Tbe claims in this case differ very materially from a claim for a disability pension, to which they are sought to be likened. They are descendible; are a part of the estate of the original claimants which, in case of their death, would pass to their personal representatives and be distributable as assets; or might have been devised by will; while a claim for a pension is personal, and not susceptible of passing- by will, or by operation of law, as personalty.”

But it is insisted that the inhibition of the 34th Amendment to the Constitution against the 'impairment of contracts is a limitation upon the legislatures of the States, and not upon Congress.

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Bluebook (online)
47 App. D.C. 102, Counsel Stack Legal Research, https://law.counselstack.com/opinion/newman-v-moyers-cadc-1917.