United States v. Bank of the United States

11 Rob. 418
CourtSupreme Court of Louisiana
DecidedJuly 15, 1845
StatusPublished
Cited by9 cases

This text of 11 Rob. 418 (United States v. Bank of the United States) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States v. Bank of the United States, 11 Rob. 418 (La. 1845).

Opinion

Garland, J.

In January, 1842, the United States commenced a suit, by attachment, in the Commercial Court, against the [419]*419Bank of the United States, to recover a very large amount of money. Among other claims which the plaintiffs set up against the defendants, in their suplemental petition, it is alleged, that they had, in an action brought by them against said corporation, in the Circuit Court of the United States, in the third circuit, sitting at Philadelphia, obtained a verdict and judgment against the defendants, for the sum of #251,243 54, with interest, “ as will more fully appear by the annexed duly authenticated transcript of the record in said action made part hereof, and by other evidence, if necessary, to be adduced on the trial' of this cause.”

During the pendency of the suit, for reasons stated in the case of Frazier et al. v. Wilcox et al. (4 Robinson, 521), Frazier and Adams were, by consent of parties, named receivers, to take into possession the assets and property attached, and to collect the same, according to an agreement entered upon the minutes of the court. These persons accepted the agency, and this court, in the case cited, said: “ To us it appears, that the plaintiffs” (who were the said Frazier and Adams) “ stand in the relation of agents to the United States, the Bank of the United States, and the assignees of the latter, and as such they can sue,” &c. In the same opinion this court said, that the capacity of the agents, or receivers, was derived from the assent of the parties, and not from the authority or appointment of the judge of the Commercial Court. 4 Robinson, 525. He had no more authority over them, than the agreement of the parties conferred. Whether the parties interested have ever terminated the agency of the receivers, it is not material now to enquire.

In August, 1842, whilst the case was pending, an agreement was made between the counsel for the plaintiffs and defendants, by which the latter were not “ to apply to the court for a continuance, in order to await the decision of the Supreme Court of the United States, upon the writ of error now pending therein between the same parties, from the Pennsylvania Circuit, &c; and in consideration thereof, that the said United States shall, in the event of a reversal of said judgment, enter a remittitur for so much of said judgment (if any) obtained by them in this court, as shall give the said defendants the full benefit of [420]*420such reversal.” Under this agreement the parties went to trial, and on the production of the record of the case of the United States against the Bank of the United States, and the judgment rendered therein by the Circuit Court of the United States of the third circuit, sitting in Pennsylvania, a sum of #251,243 54, with legal interest, was allowed the plaintiffs, and contributed largely to the aggregate of the judgment obtained by them. This suit related to the claim of the United States for certain dividends on its stock in the Bank, and a demand, on the part of the latter, for damages on a bill, or bills of exchange, drawn by the order of a late President of the United States on the French government, and protested for non-payment. The case was then in the Supreme Court of the United States on a writ of error taken by the Bank.

In 1843, the present case being then in this court, on an appeal considered suspensive (consequently no execution could issue in favor of the plaintiffs), and the assets attached and in the hands of the agents, or receivers, Frazier and Adams, being in danger of serious damage and loss, in consequence of the course then being pursued by other attaching creditors, it was proposed by Brooks, the attorney of the Bank of the United States, and the assignees or trustees, claiming to be interested in the assets attached herein:

“ 1. That if there is any agreement in existence, restraining the United States from proceeding by execution on their judgment in New Orleans to sell the assets attached, it shall be be considered as abrogated.

“ 2. If the United States should purchase the assets of the Bank or trustees, through Wm. W. Frazier and Christopher Adams, Jr., such proceeding shall not in any way affect the rights of the United States to proceed, in Philadelphia, or elsewhere, in suits there pending, or to be brought, for the recovery of the debt demanded by the government, nor shall a greater sum be credited than shall be realised from the assets.

“ These stipulations not to be considered as a waiver of any rights of the Bank of the United States, or of any of the trustees, further than is herein expressed.”

Upon the receipt of this proposition by the Secretary of the [421]*421Treasury, the District Attorney of the United States for the Eastern District of Louisiana, was directed to issue an execution. He produced in court his letter of instructions, and the agreement just stated, also a copy of a letter from the Solicitor of the Treasury to Frazier and Adams, as agents, and asked that a fieri facias might be issued forthwith, on the judgment rendered, which was ordered: “ but on the suggestion of T. Slidell and J. R. Grymes, attorneys appointed for the defendants and attorneys for the interveners, it is considered that this order shall not be so construed as to signify a recognition by said defendants or intervenors, of the construction given to the agreement between the parties, by the Solicitor of the Treasury, in the letters and documents filed by the District Attorney.”

On the 7th June, 1843, the Solicitor of the Treasury wrote to Messrs. Frazier and Adams, that the District Attorney had been instructed to issue an execution on the judgment in favor of the United States against the Bank, and to levy upon the assets of the defendants in his district, subject to levy and sale. He says that the District Attorney is also instructed to sell those assets, and, if they can be sold at fair prices, to make the amount of the debt, interest and costs, in favor of the United States. “ But it is apprehended that, owing to the situation of the assets, a fair price in specie cannot be got for them; and that if they were sold, and the United States, by an agent, should not become a bidder, they will be sacrificed for a sum much below their value, and insufficient to pay the debt to the United States. To prevent this, I am authorised by the Secretary of the Treasury to request you to accept the appointment, which is hereby conferred, of agents of the United States, to attend the sale on the execution, and purchase in the assets sold, for the United States.

“ Should you accept this appointment, you will bid such sums as will prevent a sacrifice of the assets, taking care, in all cases to keep within reasonable bounds, and exercising in regard to each, the sound discretion which a prudent man would exercise in his own case.

“You will assume the care, management and collection of the assets and choses in action, which you may so purchase, in [422]*422trust for the United States,

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Cite This Page — Counsel Stack

Bluebook (online)
11 Rob. 418, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-bank-of-the-united-states-la-1845.