Smith, Administrator v. the Union Bank of Georgetown

30 U.S. 518, 8 L. Ed. 212, 5 Pet. 518, 1831 U.S. LEXIS 371
CourtSupreme Court of the United States
DecidedFebruary 18, 1831
StatusPublished
Cited by37 cases

This text of 30 U.S. 518 (Smith, Administrator v. the Union Bank of Georgetown) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Smith, Administrator v. the Union Bank of Georgetown, 30 U.S. 518, 8 L. Ed. 212, 5 Pet. 518, 1831 U.S. LEXIS 371 (1831).

Opinion

*336 Johnson, Justice,

delivered the opinion of the court. — The judgment below is rendered upon an agreed case, on which the following state of facts is exhibited. The defendant’s testator was domiciled at Norfolk, in Virginia, at which place he contracted a debt on bond to one Thompson. He was also indebted to the Union Bank, the defendant in error, on simple contract. He died at Bedford, in Pennsylvania, and the defendant Smith administered on his estate in the county of Washington, in this district. Robertson, at the time of his death, was possessed of personal assets in the county of Washington ; and the administrator, having reduced these assets into possession, now holds them subject to his debts.

By the laws of Maryland, which govern the county of Washington, all debts are of equal dignity in administration ; but by the laws of Virginia, the country of Robertson’s domicil, bond debts have preference, and the assets are insufficient to satisfy both. The question then is whether the bond debt shall take precedence, or come in average with the simple-contract debts ?

On the bearing of the lex loci contrae,t,ús, on this question, nothing need be added to the doctrine of the chief justice of this court in the case of Harrison v. Sterry, to wit: the law of the place where the contract is made is, generally speaking, the law of the contract; that is, the law by which the contract is expounded. But the right of priority forms no part of the contract itself.” The passage which follows these words in the same opinion will present, in as succinct a form as they need be stated, the pro- .¡, -, potions on the correctness of which the decision of this '"cause must, mainly, depend. It is in these terms : “ It (the right of priority) is intrinsic, and rather a personal privilege, dependent on the law of the place where the property lies, and where the court sits, which is to decide the cause. In the famiiar case of the administration of the estate of a deceased person, the assets are always distributed according to the dignity of the debt, as regulated by the law of the country where the representative of the deceased acts, and from which he derives his power.”

The argument urged against this docrine is, that personal property has no situs ; that it follows the law of the person ; and that there is no other rule that can give uniformity and consistency to its administration. In support of this argument, great industry has been exhibited in collecting and collating the cases which relate to the distribution of intestates’ effects, and the execution of the British bankrupt law; and analogy, it is insisted, requires the. application of the rule of those cases to that of the payment of debts.

With regard to the first class of cases, we expect to be understood as not intending to dispose of them, directly or incidentally. Whenever a case arises upon the distribution of an intestate’s effects, exhibiting a conflict between the laws of the domicil and those of the situs, it will be time enough to give the views of this court on the law of that case. And as the cases in which the British courts have asserted a power over the effects of a bankrupt, the situs of which placed them beyond the action of their bankrupt laws, we are not aware of any instance in which they have gone further than to treat that power as an incident to the jurisdiction of these laws over their own subjects. As, in the instance in which a British subject had, by process of law, in this country, possessed himself of the effects *337 of a British bankrupt, to the prejudice of the other creditors. That there is no violation of principle in doing this, is fully affirmed in the same case of Harrison v. Sterry ; in which this government, and this court, availed themselves of jurisdiction in fact over the effects of a foreign bankrupt, so as to subject them to the priority given by our laws to the debts due our government. Each government thus asserting the power of its own laws over the subject-matter, when within its control.

*That personal property has no situs, seems rather a metaphysical position than a practical and legal truth. We are now con- *- 0 sidering the subject with regard to subjecting such property to the payment of debts, through the medium of letters of administration. And here there is much reason for maintaining, that even the common law has given it a situs, by reference to any circumstances which mark it locally with discrimination and precision. Thus, in the case of Byron v. Byron (Hil. 38 Eliz.),Cro. Eliz. 472, Anderson, Chief Justice, says, “ the debt is where the bond is, being upon a specialty, but debt upon contract follows the person of the debtor; and this difference has been oftentimes agreed.” So, Godolphin lays down the same distinction, as established law. (Orphan’s Legacy 70.) And Swinburn lays down the same rule with still greater precision, as well against the effect of domicil as of the place of contract. For he says, “ debt shall be accounted goods, as to the granting of administration, where the bond was at his (creditor’s) death, not where it was made.” And again, “ debts due the testator will make bona notabilia as well as goods in possession ; but there is a difference between bonds and specialties, and debts due on simple contracts : for bond debts make bona notabilia, where the bonds or other specialties are at the time of the death of him whose they are, and not where he dwelt or died ; but debts on simple contracts are bona notabilia in that country where the debtor dwells.” (Part 6, ch. 11.) And so of judgments, locality is given them by the situs of the court where they are entered. Carth. 149 ; 3 Mod. 324 ; 1 Salk. 40 ; Dyer 305 ; 1 Roll. Abr. 908 ; 1 Plowd. 25 ; Carth. 373 ; Comb. 392, are cited for these distinctions.

It is not unworthy of remark, that in almost every treaty between civilized nations, we find an article stipulating for permission to remove the goods of a deceased subject to the country of his domicil. And from the generality of the stipulation, it would seem to be intended, for the purpose of subjecting the goods to the law of the deceased’s country or domicil, even as to their application to the payment of debts. There is the more reason to believe this, with regard to our own treaties, since there are two instances in which the generality of that provision is deviated from ; the one in favor of the payment of debts due where the goods are, *and the other subjecting the right of property to the law of the sitjus. I mean, the <- French consular convention of 1788, by the 5th article of which it is expressly stipulated, that goods shall be subjected to the payment of debts due in the foreign country. And both our treaties with Prussia contain a stipulation, in the 10th article, “that if questions shall arise among several complainants to which of them the said goods belong, the same shall be decided finally by the laws and judges of the land wherein the said goods are.” It would seem, that such a provision would be wholly unnecessary, if there existed any established rule of international law, by

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Blum v. Salyer
299 F. Supp. 1074 (W.D. Missouri, 1969)
Sutherland v. State Ex Rel. Anderson
315 P.2d 611 (Supreme Court of Kansas, 1957)
L. B. Smith, Inc. v. United States
145 F. Supp. 216 (Court of Claims, 1956)
Gibbs v. Hubbard
280 P.2d 556 (Wyoming Supreme Court, 1955)
Biewend v. Biewend
109 P.2d 701 (California Supreme Court, 1941)
Duehay v. Acacia Mut. Life Ins. Co.
105 F.2d 768 (D.C. Circuit, 1939)
In Re Dennis' Estate
129 A. 166 (Supreme Court of Vermont, 1925)
In re the transfer inheritance tax upon the estate of Dellinger
120 A. 27 (New Jersey Superior Court App Division, 1923)
Stern v. Drew
285 F. 925 (D.C. Circuit, 1922)
Freeman v. Southern Pac. Co.
151 P. 654 (Oregon Supreme Court, 1915)
Dow v. Lillie
144 N.W. 1082 (North Dakota Supreme Court, 1914)
New Orleans Terminal Co. v. Hanson
188 F. 638 (Sixth Circuit, 1911)
Dickinson v. Harbison
72 A. 941 (Supreme Court of New Jersey, 1909)
Miller v. Hoover
97 S.W. 210 (Missouri Court of Appeals, 1906)
Cooper v. Philadelphia Worsted Co.
60 A. 352 (Supreme Court of New Jersey, 1905)
Manley v. Mayer
75 P. 550 (Supreme Court of Kansas, 1904)
Lewis v. Rutherford
72 S.W. 373 (Supreme Court of Arkansas, 1903)
Ex parte McGee
54 P. 1091 (Oregon Supreme Court, 1898)
Willard v. Wood
1 App. D.C. 44 (D.C. Circuit, 1893)
Brown v. Smart
145 U.S. 454 (Supreme Court, 1892)

Cite This Page — Counsel Stack

Bluebook (online)
30 U.S. 518, 8 L. Ed. 212, 5 Pet. 518, 1831 U.S. LEXIS 371, Counsel Stack Legal Research, https://law.counselstack.com/opinion/smith-administrator-v-the-union-bank-of-georgetown-scotus-1831.