Pacific Coast Steamship Co. v. United States

33 Ct. Cl. 36, 3 A.F.T.R. (P-H) 3359, 1897 U.S. Ct. Cl. LEXIS 4, 1800 WL 2026
CourtUnited States Court of Claims
DecidedDecember 6, 1897
DocketNo. 19531
StatusPublished
Cited by2 cases

This text of 33 Ct. Cl. 36 (Pacific Coast Steamship Co. v. United States) is published on Counsel Stack Legal Research, covering United States Court of Claims primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Pacific Coast Steamship Co. v. United States, 33 Ct. Cl. 36, 3 A.F.T.R. (P-H) 3359, 1897 U.S. Ct. Cl. LEXIS 4, 1800 WL 2026 (cc 1897).

Opinion

Howey, J.,

delivered the opinion of the court:

The question presented for determination in this case is of much general interest and importance not only because of the effect of its final decision upon litigants and judgment creditors in this court, but also because of the conflicting views existing with'respect to the true construction of an act relating to the jurisdiction of the courts invested with power to hear and determine claims against the Government.

[48]*48Is interest recoverable upon a judgment or decree of this court where the judgment or decree is of the same character as that rendered for plaintiff, and from which no appeal has been taken and the same made final

Some additional importance has attached to the question pending the determination of the matter here because of the conflicting views of other courts on the same subject, the District Court of the United States for the northern district of Alabama having decided that interest is recoverable on judgments of this court, while the Circuit Court of Appeals for the fifth circuit has taken the opposite view, and decided that such interest cau not be recovered.

The Pacific Coast Steamship Company, a corporation having its principal place of business at San Francisco, in the State of California, brought suit in this court under the provisions of the statute, for certain services performed at the request and on behalf of the United States, and on the 1st day of April, 1889, obtained final judgment therein for $14,800.92. A duly certified transcript of this judgment was presented to the Secretary of the Treasury for payment within four days after said judgment; but no appropriation being then available payment was refused. Subsequently, under an act approved September 30,1890, entitled “An act making appropriations for the fiscal year ending June 30,1890, and for prior years and other purposes,” Congress provided, among other things—

“That the following sums be, and the same are hereby, appropriated out of any money in the Treasury not otherwise appropriated, to supply deficiencies in the appropriations for the fiscal year eighteen hundred and ninety, and for prior years,arul for other objects hereinafter stated, namely * * * For payment of judgments of the Court of Claims. * *• * To the Pacific Coast Steamship Company, fourteen thousand eight hundred dollars and ninety-two cents ($14,800.92): * * * Provided, That none of the judgments provided for shall be paid until the right of appeal shall have expired.”

The principal of the judgment was paid under the appropriation, the plaintiff corporation alleging that the amount was received and accepted in full of the principal only.

The right to claim interest is based, first, upon the liquidated character of the judgment out of which grew interest for the time of the nonpayment of the principal, and secondly, upon the tenth section of the act of March 3, 1887, entitled “An act to provide for the bringing of suits against the Government of the United States.” (1 Supp. Rev. Stat., 559.)

[49]*49In behalf of the Government it is claimed that the tenth section of the act relied upon by the petitioner applies only to judgments in the circuit and district courts of the United States for the ’limited sums those courts are authorized to render judgment for, and can not be held to apply to judgments obtained in this court against the United States; and nest, that no other authority growing either out of contract or statute can be shown to sustain the demand.

As a right in the nature of property, or as a premium or profit for the use of money, interest was not allowed at common law. Contracts for the payment of interest as an accessory or incident to principal were treated as usurious and punishable as usury. In this country the payment of interest became sanctioned by statute for contracts, express or implied, or by way of damages, either for a default in the payment of a debt or for a use or benefit derived from the money of another. Where such has been the usage of trade or the course of dealing between the parties, or the special custom of one party, known and acceded to by the other, the law will imply a contract. (Williams v. Craig, 1 Dall., R., 313; Meech v. Smith, 7 Wend., 315; Ayers v. Metcalf, 39 Ills., 307; Selleck v. French, 1 Conn., 32.)

Judgments and decrees bear interest from their date, but the statute is the foundation of the right.

Interest, therefore, as a rule, is the creature of the statute. The courts have announced this proposition so often, and text writers have so generally accepted the same as correct, it may now be said to be axiomatic that unless the warrant for the payment of interest be found -in the statute interest can not be collected. The principle is well settled that the United States are not liable to pay interest on claims against them in the absence of statutory direction. This is so whether such claims originate in contract or in tort, or whether they arise in the ordinary course of business with the Government, or under legislation making appropriations for specific relief. The only recognized exceptions are where the Government stipulates to pay interest and where it is expressly given by an act of Congress, either by the name of interest or by that of damages. The practice has long prevailed in the Departments of not allowing interest on claims presented, liquidated or unliqui-dated, except in some way specially provided for. The Supreme Court adopted this rule from a succession of the opinions of [50]*50the Attorneys-General of the United States in a well-considered case on the subject, from which we know of no settled departure. (Angarica v. Bayard, 127 U. S. R., 251; see also Gordon v. United States, 7 Wall., 188, and Harvey v. United States, 113 U. S. R., 243, 249; United States v. New York, 160 U. S. R., 619.)

That interest has been allowed in some cases where the claim has become liquidated.is true. (United States v. McKee, 91 U. S. R., 442, 450, 451; Erskine v. Van Arsdale, 15 Wall., 75; The Neustra Senora de Regla, 108 U. S. R., 92, 107.) But the opinion in the first case was by a divided court, where interest was allowed on a bill of exchange, and where the claim had been referred to this court under an act directing’ the examination of the claim to be governed by the same rules and regulations adopted by the Government before that time in the settlement of like cases. While Mr. Justice Miller, for the majority, adverted to the fact that the rule for the payment of interest in adjusting and allowing unliquidated and disputed claims against the Government was not uniform, yet he expressly declared the case to be like those in which interest was to be allowed by the previous direction of Congress. In the second case cited, where an illegal tax had been collected and the .citizen who had paid it had been obliged to bring suit against the collector, the court decreed that such person was entitled to interest in the event of recovery from the time of the illegal exaction. In the last case mentioned the court allowed interest against the Government on account of default in complying with an order of restitution to the time of the decree in the case of the Spanish boat- Neustra Señora de Eegla, declared by the court not to be lawful prize and captured without probable cause.

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Bluebook (online)
33 Ct. Cl. 36, 3 A.F.T.R. (P-H) 3359, 1897 U.S. Ct. Cl. LEXIS 4, 1800 WL 2026, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pacific-coast-steamship-co-v-united-states-cc-1897.