Phelps v. McDonald

9 D.C. 375
CourtDistrict of Columbia Court of Appeals
DecidedSeptember 15, 1875
DocketNo. 3910
StatusPublished

This text of 9 D.C. 375 (Phelps v. McDonald) is published on Counsel Stack Legal Research, covering District of Columbia Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Phelps v. McDonald, 9 D.C. 375 (D.C. 1875).

Opinion

Mr. Justice Wylie

delivered the opinion of the court:

The cause was heard at the special term in equity on general demurrer of the defendants to complainant’s bill. The demurrer was allowed in that court, and the bill dismissed. From that decree the cause has come here on complainant’s appeal. Previously to filing the demurrer, the defendants had put in an answer, to which no replication had been filed by the complainant. Having elected to make their defense by way of answer, it was too late for the defendants to demur [384]*384except by agreement of counsel. After this, other counsel having appeared for defendants, such an agreement was entered into by counsel for their respective clients and was filed in the cause. Thus the cause came on to be heard upon the demurrer to the bill, without regard to the answer or to any other proceedings which had taken place of an interlocutory character. The court was thus not at liberty to know that any answer had been filed, or that any facts connected with the case existed, except only such as appear upon the face of the bill itself, including its exhibits.

While a demurrer lies only for defects which are patent on the face of the bill, and is bad if it assert matters of fact outside of the bill, it is equally clear, on the other hand, that if the case made by the bill itself be insufficient to entitle the complainant to the relief he seeks, he cannot be allowed to fortify the case so made by invoking aid to his bill from matters of fact which do not appear upon its face. Story’s Eq Pl., sec. 433 et seq.

These are fundamental principles of pleading by which every court is bound, and which generally they endeavor to observe. It is to be assumed, therefore, that, in deciding the issue in the present case, this court will know nothing except the facts properly stated in the bill itself or its exhibits. To that rule we propose, on this occasion, strictly to adhere.

The subject of controversy in the present case is an award of $197,190, made by the commissioners under the twelfth article of the treaty of 1871 between the United States and Great Britain. That award was not signed by the American commissioner, for reasons of which we are not informed. It is in the following words:

“Augustine R. McDonald) “ vs. > Nos. 42 and 334. “The United States. )
“ We award the sum of one hundred and ninety-seven thousand one hundred and ninety dollars, to be paid in gold by the Government of the United States to the Government of Her Britannic Majesty in respect of the above claim.
“L. CORTI,
“RUSSEL GURNEY,
“ Commissioners.”

[385]*385McDonald was a subject of Great Britain, who claimed, before the commission, that, in the early part of the year 1864, he obtained a permit from the Treasury Department, and a letter from the President, with which he proceeded to the States of Arkansas and Louisiana, where he purchased a large quantity of cotton, which was subsequently destroyed by troops of the United States while engaged in belligerent operations. At the time he obtained his license, as he claimed it to be, it was lawful for the President to authorize licenses to trade with the enemy in special cases, under regulations prescribed by the Secretary of the Treasury. Subsequently to the purchase of his cotton, the act of Congress of July 2, 1864,was passed, which forbade the granting of such licenses, and revoked those which had theretofore been issued; and in February, 1865, the cotton was said to have been destroyed. McDonald claimed that he had made his purchases under a license from the United States in May and June, 1864; that the act of Congress of 2d July revoked his license, in consequence of which he was unable to remove his cotton, and its destruction took place in February, 1865. And this was the foundation of his claim before the commissioners. After the claim had been allowed by the commissioners, and the money was yet in the Treasury of the United States, but ready to be paid over to the British government, as required by the treaty, the bill in the present suit was filed, by which the complainant asked this court to compel McDonald to execute an assignment to complainant of the money so awarded to be paid to the British government in respect of the claim, and for an injunction to restrain McDonald from receiving the money.

The complainant claims that the fund belongs to him by reason of certain proceedings in bankruptcy in the southern district of Ohio, which took place in 1868 and 1869, under which McDonald was discharged as a bankrupt on his own petition, and all his property passed to the complainant as assignee, including the right to the fund here in controversy. It may be conceded that, so far as the claim in question could be affected by the laws of this country, it did pass to the assignee in bankruptcy, according to the principles affirmed in Comegys vs. Vasse, 1 Pet., 193. That was a case which arose [386]*386under the treaty of 22d of February, 1819, with Great Britain. The commissioners in that case had made an award in favor of the assignee in bankruptcy, and the money was paid to. him. Vasse, the bankrupt, brought an action to recover this, money from the assignee, on the ground that the claim had not passed under the bankrupt assignment; but the court held that it it was such right or claim as could and did pass, under that assignment. Both parties were citizens of this country, and the money had actually been received by one of them.

An abstract of the proceedings in McDonald’s bankruptcy is attached to the bill as an exhibit. These show that, on the 17th of March, 1869, the applicant, McDonald, received his. final discharge. It also shows that, on the day immediately preceding, on the application of the assignee, McDonald was examined under oath as to the nature and condition of his. property, and that this examination was reduced to writing and filed in the proceedings. The complainant has not supplied us with a copy of this paper. Had it shown any want of truth, or contained false representations calculated to mislead his creditors as to the character and value of the claims in.question, doutless it would have been set forth. The bill itself, however, charges nothing of the kind in regard to that examination.

On the 17th of March, 1869, then, the bankrupt was finally discharged, free of his old debts, and entitled to all his future acquisitions.

About six months subsequent to the bankrupt’s discharge,, the assignee, (this complainant,) under authority from the court, sold the amounts, judgments, &c., late the property of the bankrupt, to William White, one of the defendants in this suit, for the sum of §20. The bill in this case does not affect to deny that McDonald’s claim against the United States on account of the destruction of the cotton in question, constituted a part of the subjects thus sold.

But it asserts that the cotton-claim did not pass under that sale for several other reasons: First, because White, in fact, made the purchase on behalf of McDonald, and with McDonald’s money; but there is nothing, we think, in that objection.. McDonald had received his final discharge six months pre[387]*387viously to the sale, and had he thought proper, or found it convenient, might have been the purchaser in his own name.

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Related

Comegys v. Vasse
26 U.S. 193 (Supreme Court, 1828)
Frevall v. Bache
39 U.S. 95 (Supreme Court, 1840)
Oakey v. Bennett
52 U.S. 33 (Supreme Court, 1851)
Clark v. Clark
58 U.S. 315 (Supreme Court, 1855)
Blane v. Drummond
3 F. Cas. 681 (U.S. Circuit Court for the District of Virginia, 1803)

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Bluebook (online)
9 D.C. 375, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phelps-v-mcdonald-dc-1875.