Withers v. Greene

50 U.S. 213, 13 L. Ed. 109, 9 How. 213, 1850 U.S. LEXIS 1419
CourtSupreme Court of the United States
DecidedMay 14, 1850
StatusPublished
Cited by35 cases

This text of 50 U.S. 213 (Withers v. Greene) 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
Withers v. Greene, 50 U.S. 213, 13 L. Ed. 109, 9 How. 213, 1850 U.S. LEXIS 1419 (1850).

Opinion

*220 Mr. Justice DANIEL

delivered the opinion of the court.

This cause, from the District Court of the United States for the Middle District of Alabama, is brought here undér the act of Congress of 8th August, 1846, ch. 104..

The- plaintiff in error* was sued in the court below, upon a single bill for the sum of j§ 3,000, executed by him on the 16th of February, 1839, payable on the 1st of January ensuing, to A. B. Newsom or order, and which was assigned by Newsom to May, the testator of the defendant'.

What were the grounds of defence first assumed by the defendant does not appear, and' it is immaterial now to inquire. The pleas first filed were by consent of parties withdrawn, and by leave of court the defendant filed a special plea, • averring that the note.sued on was given by him for a part of the price of two fillies purchased by him of Newsom for $ 4,000; that Newsom ^Is'-iy and fraudulently represented to the defendant that these fillies were reared by himsell; that they were sound and of-a high pedigree (as is set forth in the plea); that the defendant, desiring to possess these fillies for their blood and for the turf, and induced and deceived by the false representations of Newsom, paid him the sum of $ 1,000 in cash, and executed the note in question for the residue of the purchase-money ; that the representations of Newsom as to the fillies having been reared by him, of their soundness, and of their pedigree, were all untrue, and all known to be untrue by Newsom at the time of the sale; that the defendant did not ascertain either the extent of the unsoundness of these fillies, or the falsehood of the pretended pedigree, until during the autumn and winter of the year 1839 ; that the said Newsom at the time of the sale resided, and has continued to reside, in a different State, and ‘more than three hundred miles from the defendant ; that from the time of discovery by the defendant of the unsoundness of the fillies, and of the .falsehood of their pedigree, up to the time of their death, which happened without any fault of the defendant or his servants, in the spring of 1840, he, the defendant, was willing and ready, and desirous, of returning the fillies to the said Newsom, but never had an opportunity' of so doing. The plea concludes with stating, that the nr .te or writing obligatory was obtained from him by Newsom by his false and fraudulent representations, and is therefore void; and" with a prayer whether defendant should be charged with the debt. To this plea thefe was a demurrer by the plaintiff below, and the judgment of the court below sustaining the demurrer, brought hither by writ of error, this court is called on to examine.

*221 . Although the legal principles and inquiries involved in this cause are to a great extent local in their character and operation, it will be found to embrace rules, both with respect to pleading and to the interpretation of contracts, extending in some respects beyond the influence of merely local jurisprudence. The contract in question having been made within the State of Alabama, and designed to be performed within that State, the lex loci contractus must justly be understood as entering into and controlling the effect of its stipulations, and having been sued upon within the same State, the lex fori must, in a great degree, regulate the mode of its enforcement.

By a statute of Alabama (see Aikin’s Digest, p. 283, § 138), it is enacted, “ that, whensoever any suit is depending m any of the courts founded on any writing under the seal of the person to be charged therewith, it shall be lawful for the defend ant or defendants therein, by a special plea, to impeach or g > into' the consideration of such bond, in the same manner as if the said writing had not been sealed.” By another statutory provision of the same State it is declared (see Aikin’s Digest, p. 328, <§> 6i), “ that all bonds, obligations, bills single, promissory notes, and .other writings, for the payment of money or any other thing, may be assigned by indorsement,- whether the same be made payable to the order or assigns of the obligée or payee or not; and the assignee may sue in his own name, and maintain any action which the obligee or payee might have maintained thereon previous to assignment, and in all actions to be copimenced and sued upon any such assigned bond, obligation, bill single, promissory note, or other writing aforesaid,the defendant shall be allowed the benefit of all payments, discounts, and set-offs, made, had, or possessed against the same; previous to notice of the assignment, in the same manner as if the same had been sued and prosecuted by the obligee or payee therein.” By the enactment herein first cited, it is obvious that specialties are divested of any force or solemnity at any time ascribed to them by reason of their having a seal annexed, and are placed, with respect to all inquiries which may be instituted into the validity of their consideration; precisely upon the footing of parol agreements. With respect to the construction of the second provision (§ 6) of the statute above cited-, the question has been suggested, whether the right conferred by the first enactment, to inquire into the consideration of contracts in contests between the original parties, is extended, by the correct meaning of the statute, to the defence allowed to obligors at the suit of assignees, or whether obligors in assigned bonds, notes, &c., are not restricted in their defence to transac *222 tions posterior in date to the writing itself, and forming no necessary part of the original consideration, the language of the statute, as already quoted, being this: — “shall be allowed the benefit, of all payments, discounts, and set-offs, made, had, or possessed against the same’? (i. e. against the.bonds) “previous to notice of assignment, in the same manner as .if the same had been-sued and prosecuted by the obligee therein.”

In construing these provisions of the Alabama statute as being, iii pari materia, we cannot regard them as changing the rights of the parties arising out of the contract itself, nor as conferring new rights on. others not inherent in such original obligations, but we regard them rather as securing those rights, except so far as they may have been legally and justly transferred.' There could be no doubt of the right to impeach the consideration, or the right to claim the benefit of payments, set-offs, or discounts, on the part of the obligor as against his obligee. The statute was not designed to take from the,nobligor any of these rights, but merely to deny to him the claim to discharge his obligation by payments, &c., to the original obligee, after he knew the'obligation to have been transferred to another. Neither did the statute create in the assignee any new right varying the character of the contract itself. It conferred on him merely the rights to take by assignment, and to sue. in- his own name, — in effect, the power to acquire in the mude prescribed an equitable title, and to prosecute that title in a court of law. Contracts at common law, to which this simple power of assignment is extended by statute, differ essentially from those which arise out of and are governed by the law merchant, or from such as are placed on the footing of the law merchant by express legislative enactment.

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Bluebook (online)
50 U.S. 213, 13 L. Ed. 109, 9 How. 213, 1850 U.S. LEXIS 1419, Counsel Stack Legal Research, https://law.counselstack.com/opinion/withers-v-greene-scotus-1850.