The Charles E. Wiswall v. Scott

86 F. 671, 42 L.R.A. 85, 1898 U.S. App. LEXIS 2327
CourtCourt of Appeals for the Second Circuit
DecidedMarch 2, 1898
DocketNo. 72
StatusPublished
Cited by7 cases

This text of 86 F. 671 (The Charles E. Wiswall v. Scott) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
The Charles E. Wiswall v. Scott, 86 F. 671, 42 L.R.A. 85, 1898 U.S. App. LEXIS 2327 (2d Cir. 1898).

Opinion

LACOMBE, Circuit Judge

(after stating the facts). The record is long and somewhat involved, and the commissioner’s report has not set forth his findings with sufficient detail to be of much assistance to the court in determining just what he did find and upon what proof. This appeal may be best disposed of by taking up the assignments of error seriatim.

1. It is assigned as error that the libelants in the original libel and in the amended libel were a combination in the form of a trust or otherwise, or conspiracy in restraint of trade or commerce among the several states and with foreign nations; that libelants were engaged in an attempt to monopolize such trade or commerce; and that all the work alleged to have been done by them collectively or individually was under a contract or combination in such form, and that such contract or combination was void, and the libelants cannot maintain this suit either collectively or individually. We do not find any satisfactory evidence that these boats were “engaged in trade or commerce among the several states or with foreign nations.” Most of them held coasting licenses, but there is not a scintilla of evidence to show that they ever did anything except to tow canal boats, barges, and such craft on the waters of the Hudson River above Poughkeepsie, and entirely within the limits of the state of New York. And it seems wholly unnecessary to inquire whether their owners had entered into any unlawful combination under the laws of the state. Finding that the rates of compensation for the services of themselves, their crews and their tugs, were becoming so low as to be unremunerative, uncertain, and irregular, they agreed with each other to charge for all services rendered by each vessel such sums as might be fixed by a tariff which they adopted. They called themselves the “Hudson River Tug-Boat Association,” had a so-called superintendent to allot work among them, adopted a system of fines, etc., but they never became a legal entity either as a corporation, a joint-stock association, or a partnership. They made collectively no contract with the claimant, nor were they capable of making such contract. Each piece of towage service rendered was a transaction between the boat towing and the boat towed, with which the other boat owners in the association had nothing to do. Indeed, the libel (original and amended) is obnoxious to the objection of an improper joinder of libelants. Each should have brought a separate libel; [673]*673but since this objection was apparently not taken below, and the only result would be to increase the costs to be paid by the defeated party, it need not now be considered. The contracts upon which recovery was had were not with the so-called combination, but severally, with the several tugs rendering the service; the amount of compensation asked and found is the fair and reasonable value of such service; and the existence of the “combination” is no bar to its recovery. The defendant’s proposition is that a person who has given work, labor, and services to another, upon that other’s employment, may not recover their fair and reasonable value if, during the time that he rendered such services, he had been engaged with other men in like employment with himself in a combination to charge for such services as any of them might render according to some scale agreed upon by them. We know of no principle of law which calls for the adoption of such a rule, and are referred to no authorities which support it. The cases cited on appellant’s brief are not applicable. The only contract considered in U. S. v. Trans-Missouri Freight Ass’n, 166 U. S. 290, 37 Sup. Ct. 540, was the contract between ihe members of the combination. The action in Bank v. Owens, 2 Pet. 538, was brought on the usurious noie by the hank that exacted the usury; and the same is true of Bank v. Lamb. 26 Barb. 596. In Leonard v. Poole, 114 N. Y. 377, 21 N. E. 707, the court refused to take an accounting between two parties to an illegal transaction. In Association v. Houck (Tex. Sup.) 30 S. W. 869, it appeared that defendants Houck and Dieter had entered into an unlawful combination with other dealers in beer, which secured control of the trade. Plaintiff, by contract with defendants, bound itself to sell to the latter, and to no other dealer in the city of El Paso, — a contract which gave the combination a monopoly of the sale in the city of El Paso of the product of plaintiff’s brewery, and materially assisted the parties to the illegal contract in carrying out their object of controlling the market for the sale of beer in that city. The court held that if the plaintiff, when it made its contract with Houck and Dieter, knew of the existence of the combination, it was not an innocent seller, and could not recover, since its contract “is calculated materially to aid the purchasers in effecting then-unlawful design.” In Peck v. Burr, 10 N. Y. 294, it was held that, where a contract is void because of its illegality, there can he no recovery for services rendered under it upon a quantum meruit. But there is nothing illegal about the several contracts sued upon here, which are to render towage services in consideration of the payment of the reasonable value of such services. In Arnot v. Coal Co., 68 N. Y. 558, it was held that “the agreement of the B. C. Co. (of which plaintiff was an assignee) not to sell to others, it knowing that the object of defendant was to create a monopoly, and that this was one of the means of averting competition, made it a party to the illegal scheme of defendant.” This is very far from supporting the proposition that had the Pittston & Elmira Coal Company sold 1,000 tons of the coal thus purchased to a local dealer in New York City, at fair market rates, it could not recover. [674]*674On the other band, the principle is well recognized by the authorities that a promise remotely connected with an illegal act, and founded on a new consideration, is not tainted with the illegality, although it was known to the party to whom the promise was made, and although he was the contriver and conductor of the illegal act. One illustration given in Armstrong v. Toler, 11 Wheat. 258, is this:

“The man who imports goods for another, by means of a violation of the laws of his country, is disqualified from founding any action upon such illegal transaction for the value or freight of the goods. * * * But, after the act is accomplished, no new.contract ought to be affected by it. It ought not to vitiate the contract of' the retail merchant who buys these goods from the importer.”

The test, whether a demand connected with an illegal transaction is capable of being enforced at law, is whether the plaintiff requires the aid of the illegal transaction to establish his case. If he cannot open his case, without showing that he has- broken the law, a court will not assist him. But if he does not claim through the medium of the illegal transaction, but upon a new contract bottomed on independent consideration, he may recover. Swan v. Scott, 11 Serg. & R. 155; Armstrong v. Toler, 11 Wheat. 258; McBlair v. Gribbes, 17 How. 236. In the case at bar libelants clearly did not require the aid of the alleged illegal transaction to establish their case.

2. It is further assigned as error that “there was on the trial no sufficient proofs of the value of the services alleged to have been performed by the libelants or either of them, and no proof excepting of such value as was made and established by the libelants themselves while engaged in such combination,” etc.

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Bluebook (online)
86 F. 671, 42 L.R.A. 85, 1898 U.S. App. LEXIS 2327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/the-charles-e-wiswall-v-scott-ca2-1898.