Spofford v. Kirk

97 U.S. 484, 24 L. Ed. 1032, 7 Otto 484, 1878 U.S. LEXIS 1477
CourtSupreme Court of the United States
DecidedNovember 11, 1878
Docket45
StatusPublished
Cited by94 cases

This text of 97 U.S. 484 (Spofford v. Kirk) 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
Spofford v. Kirk, 97 U.S. 484, 24 L. Ed. 1032, 7 Otto 484, 1878 U.S. LEXIS 1477 (1878).

Opinion

*487 Mr. Justice Strong

delivered the opinion of the court.

Whether the orders, drawn as they were upon a designated fund, made payable to order, and accepted by the drawees, are held by the indorsee free from any equities existing between the payees and the drawer, though the indorsee purchased them without any notice of such equities, is a question which the case does not require us to consider. It has been ably and elaborately argued by the .counsel for the appellant, and if the orders could have any legal effect, we might be compelled to answer it. But there is a primary question which must be met and determined before we reach the one principally argued. It is, whether the orders are operative for any purpose. The complainants’ case rests upon the assumption that, coupled with the acceptance of the drawees, they created an equitable lien upon the debt due from the United States to the drawer. If they did not, it is plain that the court below had no jurisdiction in equity to grant the relief asked for by the bill. The complainant’s only remedy was at law. If they did, it must be because the orders and acceptances amounted to an equitable assignment, pro tanto, of the claim of the drawer against the government. The ingenious argument for the appellant is that the orders clothed the respective payees with absolute ownership of the several sums mentioned therein, out of whatever moneys might be coming into the hands of the drawees from the United States for the drawer; and it is said that the fund thus specified Avas unaffected by the orders, and had only a potential existence in the drawees’ hands until it was received by them, but that from the moment of possession they assumed a trust to administer the fund in accordance Avith tbe direction's given by the orders,, having previously accepted them.

Another formal statement of the argument is, that the orders drawn by Kirk upon Hosmer & Co., and accepted by them, created in equity an absolute and irrevocable appropriation of their contents, when collected by the drawees from the drawer’s claim against the government, and that when collected the sums named in the orders were held by the drawees in trust for the payees or their assignees. There is no substantial variance in the argument stated in these several forms. However stated, the equitable effect of the orders and accept *488 anees, independent of any statutory prohibition, if they had any effect when they were drawn, was to transfer a portion of the drawer’s claim against the United States to the payees. After the orders were given and .accepted, the drawer could not in a court of equity insist that he was entitled to the entire amount which might subsequently be allowed for his claim. If, instead of two orders, he had given one for the entire sum which might be awarded to him by the government, there can. be no doubt that it would have divested his whole interest, and vested it in equity in the person in whose favor the order was drawn. In other words, it would have been an equitable assignment of the claim. How, then, can it be that an order drawn upon the fund, or payable out of it, if accepted, is not a partial assignment ? There is nothing in Story’s Equity Jurisprudence, sects. 1040 to 1047 inclusive, nor in any of the cases cited by the appellant, inconsistent with our holding' that such an order is in equity a partial assignment.

We are brought, then, to the inquiry whether such an assignment of a claim against the United States, made before the claim has been allowed, and before a warrant has been issued for its payment, has any validity, either in law or in equity. The act of Congress approved Feb. 26, 1858 (10 Stat. 170), entitled “ An Act to prevent frauds upon the treasury of the United States,” re-enacted in sect. 3477 of the Revised Statutes, declares that all transfers and assignments thereafter made of any claim upon the United States, or any part or share thereof or interest therein, whether absolute or conditional, and all powers of attorney, orders, or other authorities for receiving payment of any such claim, or any part or share thereof, shall be absolutely null and void, unless the same shall be freely made and executed in the presence of at least two attesting witnesses after the allowance of such claim, the ascertainment of the amount due, and the issuing of a warrant for the payment thereof. It would seem to be impossible to use language more comprehensive than this. It embraces alike legal and equitable assignments. It includes powers of attorney, orders, or other authorities for receiving payment of any such claim, or any part or share thereof. It strikes at every derivative interest, in whatever form acquired, and incapacitates every *489 claimant upon the government from creating an interest in the claim in any other than himself.

In United States v. Gillis (95 U. S. 407), we had occasion to examine this act. We.then concluded that it embraced, every claim against the United States, however arising, of whatever nature, and wherever and whenever presented. We had not, however, before us the precise question which is here presented. That was the case of a suit by the assignee of a claim in the Court of Claims. We held he could have no standing there. We held also that such an assignee could not prosecute the claim in any court, or before the Treasury Department, against the government. We were not called upon to decide whether such assignments were invalid as between the assignor and the assignee. But if after the claim in this case was allowed, and a warrant for its payment was issued in the claimant’s name, as it must have been, he had gone to the treasury for his money, it is clear that no assignment he might have made, or order he might have given, before the allowance would have stood in the way of his receiving the whole sum allowed. The United States must have treated as a nullity any rights to the claim asserted by others.! It is hard to see how a transfer of a debt can be of no force as between the transferee and the debtor, and yet effective as between the creditor and his assignee to transmit an ownership of the debt, or create a lien upon it. Yet if that might be, — and we do not propose now to affirm or deny it, — the question remains, whether the act of Con-, gress was not intended to render all claims against the government inalienable alike in law and in equity, for every purpose, and between all parties. The intention of Congress must be discovered in the act itself. It was entitled “ An Act to prevent frauds upon the treasury of the United States.” It may be assumed, therefore, that such was its purpose. What the frauds were against which it was intended to set up a guard, and how they might be perpetrated, nothing in the statute informs us. We can only infer from its provisions what the frauds and mischiefs had been, or were apprehended, which led to its enactment. One, probably, was the possible presentation of a single claim by more than a single claimant, the original and his assignee, thus raising the danger of paying the claim *490 twice, or rendering necessary the investigation of the validity of an alleged assignment.

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

Related

Oxy USA, Inc. v. United States
Federal Claims, 2022
Dominion Resources, Inc. v. United States
641 F.3d 1359 (Federal Circuit, 2011)
Bailey v. United States
78 Fed. Cl. 239 (Federal Claims, 2007)
Centers v. United States
71 Fed. Cl. 529 (Federal Claims, 2006)
Emerald International Corp. v. United States
54 Fed. Cl. 674 (Federal Claims, 2002)
Franklin Federal Savings Bank v. United States
53 Fed. Cl. 690 (Federal Claims, 2002)
Westfed Holdings, Inc. v. United States
52 Fed. Cl. 135 (Federal Claims, 2002)
Johnson Controls World Services, Inc. v. United States
44 Fed. Cl. 334 (Federal Claims, 1999)
Applegate v. United States
35 Fed. Cl. 406 (Federal Claims, 1996)
George Hyman Construction Co. v. United States
39 Cont. Cas. Fed. 76,601 (Federal Claims, 1993)
United States v. Sinton Dairy Foods Co., Inc.
775 F. Supp. 1417 (D. Colorado, 1991)
Monchamp Corp. v. United States
36 Cont. Cas. Fed. 75,833 (Court of Claims, 1990)
Tuftco Corp. v. United States
614 F.2d 740 (Court of Claims, 1980)
Curtis B. Danning, Trustee v. Francis Mintz
367 F.2d 304 (Ninth Circuit, 1966)
Lyman v. Campbell
182 F.2d 700 (D.C. Circuit, 1950)
United States v. Aetna Casualty & Surety Co.
338 U.S. 366 (Supreme Court, 1950)

Cite This Page — Counsel Stack

Bluebook (online)
97 U.S. 484, 24 L. Ed. 1032, 7 Otto 484, 1878 U.S. LEXIS 1477, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spofford-v-kirk-scotus-1878.