United States v. Union Bank

8 La. Ann. 388
CourtSupreme Court of Louisiana
DecidedDecember 15, 1853
StatusPublished

This text of 8 La. Ann. 388 (United States v. Union Bank) 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. Union Bank, 8 La. Ann. 388 (La. 1853).

Opinion

Buchanan, J.

This suit is instituted in the name of the United States of America, “who sue for the use and benefit of Thomas W. Chinn, Mieajah Gourtenmj and Josiah Barker.”

It appears that Messrs. Ghinn, Courtenay and Barker, together with one Davenport, deceased, were the sureties upon the official bond of Thomas Gibbes Morgan, as Collector of the port of New Orleans; that after said Morgan resigned said office, suit was brought by the United States against him and his sureties for a large balance, alleged to be due by him to the public Treasury. A judgment was rendered in that suit against Mr. Morgan and his sureties, jointly and severally, for the sum of $60,569 57. After this judgment,, an act of Congress was passed for the relief of the sureties of Morgan, which act, being short, is here copied in full:

[390]*390“ Suction 1. Be it enacted by the Senate and Souse of Representatives of the United States of America in Congress assembled, That the Secretary of the Treasury be and he is hereby authorized to discharge Thomas W. Chirm and Mieajah Courtenay, and the other sureties of Thomas Gibbes Morgan, late Collector for the District of Mississippi, from the payment of one-third of the principal and interest of a judgment rendered against them in the Circuit Court of the United States, in and for the Fifth Circuit and District of Louisiana, upon their paying or securing the payment of the residue of said judgment, to the satisfaction of said Secretary: provided, the Secretary of the Treasury shall not be authoi'ised to make the compromise of the claim as aforesaid, unless he shall be satisfied that, from the parties’ pecuniary ability, said Collector and his sureties, the said claim is not collectable; and also that it is for the interest of the United States such compromise be made. Approved 3d March, 1849.”

Under this act of Congress, Messrs. Chinn and Courtenay proposed to the Secretary of the Treasury that, upon being credited with one-third of the judgment, they would pay the entire balance of the same, in equal annual instalments of one and two years from the 30th June, 1850—afterwards extended to one, two and three years—and for such payment to give such security as would be deemed good and sufficient by the District Attorney of Louisiana.

The Solicitor of the Treasury, J. C. Olearle, in a report to the Secretary of the Treasury, dated the— June, 1850, recommended that the proposition thus made by Chinn and Courtenay, be accepted, being convinced that the principal and sureties were unable to pay thejudgment, and that the interest of the United States would be promoted by making the compromise.

The Secretary of the Treasury, W. M. Meredith, having approved of this i-eport, and referred the matter back to the Solicitor to have the amount adjusted, that officer, by a report dated June 21st, 1850, adjusted the amount to be paid for the two-thirds of the judgment and interest, and deducting $17,000 paid on the judgment on the 19th April, 1848—at the sum of $27,034 94, and directed said balance to bo settled by six notes, of equal amount, two payable one year, two payable two years, and two payable three years after the 21st June, 1850 ; and the Solicitor further added, that upon Chinn and Courtenay furnishing the said notes, they might use the judgment for the purpose of compelling their principal {Morgan,) and their co-sureties, Ba/rlcer and the representatives of the estate of Davenport, to pay their just proportions of the amount to be secured to the United States by said Chinn and Cowrtenay ; any money to be collected upon thejudgment from Morgan, Barlcer or Davenport's representatives, to inure to the common benefit of Chinn and Courtenay; and in the event of either of them, Morgan, Ba/rlcer, and Davenport's representatives, coming in and paying their proportion of the amount thus to be secured to be paid by the said Chinn and Courtenay, then the judgment shall inure to the benefit of said Chinn and Courtenay, and the party, or parties, thus coming in and paying his or their proportions, as aforesaid.

The Solicitor of the Treasury concludes this adjustment and report, by empowering Ohinn and Courtenay, and any other of the defendants in the judgment who shall come in and pay their proportion as aforesaid, to use the name of the United States to recover from anjr person or persons, or from any corporation or banking institution, any amount of money which the United States might recover on the institution of suit against them, or any of them, and which they, or any of them, are liable to pay, on account of any moneys by said [391]*391Morgan deposited with them, or either of them, as Collector of the port of New Orleans, and by them, or either of them, paid over to the said Morgan illegally, the United States to be saved harmless from all costs and charges incurred in consequence of their name being used for such purposes.

It has appeared to us, after an attentive consideration of the evidence, that this contract of Messrs. Ghinn and Gourtenay with the Treasury Department, as it is styled by Mr. Ghinn, in a letter addressed by him to the Secretary of the Treasury on the 22d July, 1850, has mistaken the letter and the spirit of the act of Congress of the 3d March, 1849, for the relief of the securities of Thomas Gibbes Morgan. Congress is alone competent to make a gift of the property of the United States. The judgment against Morgan and his sureties was undoubtedly the property of the United States. The act declaratory of the will of Congress, in relation to it, is as clear as it is brief. It authorizes the Secretary of the Treasury to discharge Morgan’s securities from the payment of one-third of the judgment, on their paying or securing to their satisfaction the payment of the residue of the judgment. This was clearly a release made by Congress to certain debtors of the nation, of one-third of their debt, on condition of their paying or securing the other two-thirds. Such release was unaccompanied by any assignment to Morgan’s sureties, of the rights of the Government against parties with whom Morgan had dealt in his official capacity. The assignment made by the Solicitor of the Treasury to Ghinn and Gourtenay, and the permission given by that officer to those gentlemen to use the name of the United States for their own benefit, are viewed by us as unauthorized by law, and as conferring no right whatever to maintain the present action.

It is possible that the United States may have a legal claim against the Union Bank, for moneys deposited in the Bank by Morgan, as Collector. We do not, however, consider ourselves required to go into the consideration of that question, at this time. In the present action, the real plaintiffs are Ghinn, Govzrtenay and Barlcer. See 4 N. S. 135. 6 Rob. 17. Avowedly, any judgmont that we might render herein against the defendant, would inure to their benefit. The pretended assignment of the rights of the United States by the Solicitor of the Treasury, is an essential part of the plaintiff’s case, and has been so treated by us in this opinion. The decision to which we have come being adverse to the validity of the assignment, the action must fail.

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Related

Dayton v. Commercial Bank
6 Rob. 17 (Supreme Court of Louisiana, 1843)

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Bluebook (online)
8 La. Ann. 388, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-v-union-bank-la-1853.