2 Whart. 395 | Pa. | 1837
The opinion of the Court was delivered by
The constitution of the United States, art. 1, sec. 10, declares, that no state shall pass any law impairing the obligation of contracts. The constitution of Pennsylvania, art. ix, sec. 17, prohibits the passage of any law impairing contracts. The latter instrument differs somewhat from the former in its phraseology, and was subsequently framed, but perhaps there is no difference between them in the substance of these provisions. A contract may be considered as impaired, when its obligation is impaired, for the obligation or means of enforcing the performance, constitutes a part of the contract itself..
These clauses have occasioned much subtlety of disquisition, and diversity of opinion. Analogy to decided points will prove a safer guide than entering into the wide field of elementary principles, to' which the subject has a tendency to lead.
In Ogden v. Sanders, (12 Wheat. 213,) it was finally held by the Supreme Court of the United States, that a state might, in the absence of a United States bankrupt law, pass a law discharging a person from debts to be subsequently contracted. As to antecedent contracts, it could only modify the existing remedy; but as to future contracts, it might control the remedy in every respect, and even take it away altogether.
By the act of 24th February, 1834, the legislature of Pennsylvania drew a distinction in the distribution of the assets of persons dying insolvent,, between persons whose deaths occurred before the act commenced its operation, and those who should die afterwards. The former were left to the provisions of the act of 1794. For the latter a new mode of distribution was substituted, more equal in its nature, and giving no priority to judgment creditors over specialty and simple contract creditors. It is contended by the appellant, that the latter provision is unconstitutional, so far as concerns him, because, although the debtor died after the law went into operation, yet the appellant was a judgment creditor before its passage, and his claim would be diminished under the new law. It would seem, however, that it is the debtor’s decease which ascertains the right of the creditor to a dividend of the assets, and that the contract is governed by that point of time, and not by the time of contracting the debt. The provision is a future one, operating prospectively, and not affecting an antecedent right. The rule of distribution is the remedy furnished by the law, on the occurrence of uncertain and subsequent events, namely the death of the party without payment,
We are therefore of opinion, that the distinction made by the legislature was not an infringement of the constitutional provisions 'referred to.
Decree affirmed.