Taft v. Marsily

54 N.Y. Sup. Ct. 175, 13 N.Y. St. Rep. 537
CourtNew York Supreme Court
DecidedJanuary 15, 1888
StatusPublished

This text of 54 N.Y. Sup. Ct. 175 (Taft v. Marsily) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taft v. Marsily, 54 N.Y. Sup. Ct. 175, 13 N.Y. St. Rep. 537 (N.Y. Super. Ct. 1888).

Opinion

Yan Brunt, P. J.:

The single question presented for decision upon this appeal is, has the assignee in bankruptcy of the defendants Engelhorn & Marsily the right to collect as such assignee the moneys awarded to them for war premiums pursuant to the provisions of the act of congress of 1882. (Chap. 195 of 1882.)

In the consideration of this question it must be borne in mind that, in the proceedings of the United States government under the treaty of Washington, as those proceedings finally shaped themselves, the government was acting as the trustee to enforce the claims of its citizens for losses sustained because of the breach of the law of nations by Great Britain, which claims could only be enforced through its intervention, and that the money paid under the Geneva award was paid to satisfy claims of individual citizens of the United States who had suffered loss by reason of the violation by Great Britain of the law of nations, and not by way of indemnity to the United States government. There was, therefore, a moral obligetion upon the part of the United States government, when it received [179]*179the amount awarded as an indemnity to its citizens for a certain class of losses, to devote the award so received to the purposes for which it was made. In fact, the government of the United States became the trustee for these parties whose claims for indemnity it had enforced. (Gracie v. The New York Ins. Co., 8 Johns., 237; approved Comegys v. Vasse, 1 Pet., 193.) When the United States government had satisfied all these obligations there was no further duty imposed upon it, so far as its own citizens were' concerned, in respect to the funds in its hands if any remained. Its duties as trustee had then terminated, and what was done by the United States with such balance was a matter of no concern to any person or government, except, perhaps, that of Great Britain.

Citizens of the United States who had paid war premiums during the rebellion occupied a very different position in respect to the obligations of its government to them, from those who had suffered losses for which the government had received compensation. In the one case no duty of reimbursement existed any more than existed in favor of those who had paid, during the war, war taxes which were largely increased undoubtedly because of the action of Great Britain, whereas, in the other, the United States government, in insisting upon indemnity, claimed to represent the losses sustained by its citizens, and such losses formed the basis of its recovery.

The respondent places his right to a recovery upon the grounds stated in an opinion given by Mr. Commissioner French one of the members of the Court of Commissioners of Alabama Claims, sustained, as it is claimed, by the authorities cited by Mm. A large number of authorities are cited and commented upon in the learned opimon referred to, but it seems to us that an examination of those cases demonstrated that a condition of affairs existed in each of the cases cited differing radically from the facts involved in the case at bar. Each one of these cases depended upon a claim arising out of an unjust capture.

Mr. Justice Story, in delivering the opinion of the court in the case of Comegys v. Vasse (supra), says :' “ The right to indemmty for an unjust capture, whether against the captors or the sovereign, whether remediable in his own courts or by Ms own extraordinary interposition and grants upon private petition, or upon public negotiation, is a right attached to the ownersMp of the property itself.” The [180]*180case then under discussion was one in which our government had demanded indemnity from the government of Spain because of the illegal capture of vessels and cargoes of American citizens by the latter, and this claim had been recognized by the Spanish authorities. Such indemnity had been demanded by our government as a matter of right, and as such had been granted by Spain, and hence our government became the trustee for those whose claims it had enforced by means of the treaty. The case of the United States v. Hunter (5 Mason, 62), depended upon a claim arising under the same treaty.

The case of Milnor v. Metz (16 Peters, 221,) was one in which a gauger in the service of the United States, receiving the salary allowed by law, performed extra services for which compensation was not provided, and his claim for payment therefor was, for that reason, disallowed by the accounting officers of the treasury. Congress having by special act provided for its payment, it was held that the right to payment had passed under an assignment of the claimant’s estate and effects made by the claimant in compliance with the insolvent law of Pennsylvania where he resided. This case was decided upon the principle that an equitable claim which could not be enforced in law, i. e., as against the government of the United States or a foreign government, but existing at the time of the assignment and afterwards realized, passes to the assignee.

The case of Phelps v. McDonald (99 U. S., 298), was one in which a claim existed against the United States, of which the commission organized under the treaty between the United States and ■Great Britain of May, 1811, took cognizance, and for the payment of which an award had been made.

In the case of Leonard v. Nye (125 Mass., 155), the claim, which was held to have passed by assignment, was one of those embraced-within the provisions of the award and arose out of an unjust capture.

In the case of Bachman v. Lawson (109 U. S., 659), the claim also was one arising from an unjust capture. Each and every one of the foregoing cases depended for its decision upon the principle that the claim was founded upon the law of nations, according to which a foreign government is bound to indemnify against unjust capture, and it was the recognition of this law which formed the basis of the Geneva award.

[181]*181It may be true that remuneration cannot be recovered against tbe foreign government by action at law, but if justice be not done, tbe government of tbe injured citizen, in tbe exercise of its discretion, will protect and enforce Ms rights, a duty which the government of the United States attempted to fulfill by the treaty of "WasMngton towards its citizens who had been injured by the violation of the law of nations by Great Britain. The cases cited, therefore,' have no bearing upon the question now before us for decision.

In the case at bar it is not pretended that under the law of nations any person who paid war premiums had any claim against the foreign government as in the case of capture. Indeed, the unanimous decision of the Geneva tribunal was hostile to tMs view, and it was expressly held that such claims presented no demand which was recognized by the law of nations, and they were accordingly entirely excluded from consideration by that tribunal. Those persons, therefore, who had paid enhanced premiums of 'insurance, had no claim against the foreign government, such as exists and is recognized by the law of nations in the case of unjust capture.

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Related

Comegys v. Vasse
26 U.S. 193 (Supreme Court, 1828)
Milnor v. Metz
41 U.S. 221 (Supreme Court, 1842)
Phelps v. McDonald
99 U.S. 298 (Supreme Court, 1879)
Bachman v. Lawson
109 U.S. 659 (Supreme Court, 1884)
Gracie v. New-York Insurance
8 Johns. 237 (New York Supreme Court, 1811)
United States v. Hunter
26 F. Cas. 437 (U.S. Circuit Court for the District of Rhode Island, 1828)

Cite This Page — Counsel Stack

Bluebook (online)
54 N.Y. Sup. Ct. 175, 13 N.Y. St. Rep. 537, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taft-v-marsily-nysupct-1888.