HENRY TOLAND, PLAINTIFF IN ERROR V. HORATIO SPRAGUE.
SUPREME COURT OF THE UNITED STATES
JANUARY TERM, 1838.
37 U.S. 300
This action was commenced on the fifth day of August, 1834, by the plaintiff in error, by process of foreign attachment, in the circuit court for the eastern district of Pennsylvania: The writ of attachment stated the defendant, Horatio Sprague, to be a citizen of the state of Massachusetts, and the plaintiff to be a citizen of the state of Pennsylvania. The attachment was served on the property of the defendant on the sixth day of August, 1834, in the hands of Mr. John M‘Crea, Mr. S. Brown, and Mr. P. Lajus, residents in the city of Philadelphia. At the following term of the circuit court, the counsel for the defendant moved to quash the attachment; which motion was overruled by the court. The record showed that Horatio Sprague, although stated to be a citizen of the state of Massachusetts, was at the time of the commencement of the suit, and for some years before, had been a resident at Gibraltar; where he was extensively engaged as a merchant. The defendant entered special bail to the attachment; and having appeared and pleaded to the same, the case was tried by a jury on the twenty-first day of November, 1836; and a verdict, under the charge of the circuit court, was rendered for the defendant, on which a judgment was entered by the court. The plaintiff at the trial took a bill of exceptions to the charge of the court, stating in full all the evidence given to the jury in the case. The plaintiff prosecuted this writ of error. The plaintiff declared in assumpsit, on three counts against the defendant: First, charging the delivery of certain articles of merchandise, upon a promise to account and pay over the proceeds of the sale of the same; alleging a sale thereof by the defendant, and a breach of promise, in not paying or accounting for the same. Second, a count in indebitatus assumpsit: and third, on an account stated: The third count was afterwards, on the application of the plaintiff to the court, struck out of the declaration. The defendant pleaded the general issue, and also the statute of limitations. The plaintiff replied that, at the time of the transactions with the defendant, in which this suit was brought, the defendant was a merchant and the factor of the plaintiff, and “as such had the care and administration of the money, goods, wares, and merchandise, in the said declaration mentioned, of the said Henry; and he merchandised and made profit
Philadelphia, February 22, 1825.
MR. HORATIO SPRAGUE, Gibraltar.
Dear Sir,—By the ship William Penn, I consigned to Mr. Charles Pettit 100 boxes gunpowder tea, a quantity of cassia, 11 hogsheads Kentucky tobacco, and 2 cases Mandarin robes. I directed Mr. Pettit to make the returns of this shipment immediately on his arrival at Gibraltar, as follows: If quicksilver could be had at forty cents, then the whole amount in said article; if not, to ship the whole amount in dollars, by the first vessel for this port, or New York; or if good bills of the United States could be had on more favourable terms for a remittance, then to make the return in bills. Mr. Pettit promised a strict compliance with all these things; but, since the
sailing of the William Penn from this port, I have never received a line from him. I have heard of his arrival in Savannah, and of his proceeding to Charleston; but I have not yet been favoured with a single letter from him. As my property may be left in your hands by him, unsold, I beg of you to follow the directions given to him, as herein detailed, and make the remittance direct to me. I have particularly to beg your attention to this matter, and to remit as early as possible.
The bill of exceptions also contained letters from the defendant to the plaintiff, written at Gibraltar, commencing on the 18th January, 1825, to February 22, 1827; and other correspondence of the plaintiff with the defendant, up to an anterior date. The letters of the plaintiff assert the liability of the defendant to him for the whole amount of the shipment made to Charles Pettit; deducting the two bills of exchange; one for five hundred and thirty dollars seventeen cents, and the other for one thousand dollars; the balance of the sales being one thousand five hundred and seventy-nine dollars. The letter from the defendant to the plaintiff, of the 18th January, 1825, informs the plaintiff, “that Charles Pettit had left Gibraltar on the 19th of December, and had placed in his hands, for sale for his account, invoice of gunpowder tea, cassia, and crape dresses; with directions to dispose of them as he may judge most for his interest; which shall have my best attention.” Letters written afterwards inform the plaintiff of the state of the markets at Gibraltar; and on the 7th of June, 1825, the defendant wrote to the plaintiff, “I have closed the sales of the crapes and cassia, left by Mr. Pettit some time since; and settled his account.” On being informed by the plaintiff, that he was held liable to him for the proceeds of the shipment, per the William Penn, the defendant addressed the following letter to the plaintiff:
Gibraltar, October 24, 1825.
Dear Sir,—I have just received your letter of 12th September, which I hasten to reply to. It would appear by your letter, that Mr. Pettit‘s agency here was not so full as his own instructions to me gave me to expect. The property which he has brought and consigned to me at various times, has ever been delivered over to me with invoices, in his own name; and I have ever been punctilious in following his instructions, sometimes in remitting to one, sometimes
to another, and on which property I was always ready, and at various times did advance sums of money; but how he, Mr. Pettit, appropriated this money, it was not my province to inquire; he might have remitted it to you, or any one else. Here follows the other part of his instructions of the date of the 18th December, which you appear to have overlooked; but which must establish in your mind the nature of Mr. Pettit‘s, transactions here. Had you have consigned your property to me, instead of Mr. Pettit, I should then have been accountable to you; but it cannot be expected that I am to guaranty the conduct of your agent, who always is accountable to you for his conduct. Here follows the extract of his order of, 18th December, 1824: “By your account current, rendered this day, a balance stands against me of five thousand five hundred and seventy-four dollars and thirty-one cents; to meet which, you have in your possession five hundred and fifty barrels of superfine flour, on my account entire, my half interest of three hundred and seventy-two barrels of flour, and invoice of crapes, &c., amounting to two thousand and twenty dollars, one hundred ten-catty boxes gunpowder tea, five hundred bundles cassia, and two cases superior satin Mandarin crape dresses, containing one hundred and one dresses,” &c. &c. This paragraph, I repeat, cannot but convince you that all my advances to Mr. Pettit were on the various property which he placed in my hands for sale. It is very true I corresponded with your good self on the subject of the articles which you entrusted to the management of Mr. Pettit; and it is no less true, I did the same with him, and from time to time promised him account; which I never did to you; and, until his last visit to this, did not close the sales of the articles, when, at his particular request, closed every account before he left this. This explanation, I trust, will prove satisfactory, so much so, that I may continue to enjoy your confidence.
The letter of the plaintiff of Philadelphia, January 4th, 1826, repeats and insists on the liability of the defendant to him; to which the defendant gave the following reply:
Gibraltar, February 10, 1826.
Dear Sir,—I am this moment in receipt of your letter of 4th ultimo, per Charles, and from your reference to my letter of 18th January, 1825, have looked into the same. That I was aware the property handed over to me by Mr. Pettit did not belong to himself there is no question; but on what terms you and others consigned it
to him, is not for me to inquire. On his arrival, he submitted to me invoices of several shipments, required advances, and gave orders for sales; and on his leaving this, as you may suppose, directed me to correspond with the different shippers by him; which, in my opinion, was very proper, and could not in the faintest degree lessen my claim to the property, on which I had made liberal, yes, more than liberal advances; so much so, that Mr. Pettit is over two thousand dollars my debtor: yet so particularly desirous am I to satisfy your mind, as I am in possession of all the original papers, letters, &c. connected with the business, I have no hesitation in submitting the question to any two respectable merchants here, one to be appointed by you, the other by myself, and to their decision I shall most readily subscribe; or if you are willing to leave the business to me, I will submit every paper to two disinterested merchants, and they shall address you on the subject; and the affair shall be settled to our satisfaction. Herewith duplicate of my respects of 28th ultimo, since which I have delivered a part of your hyson skin tea, at three and a half rials per pound. This parcel has been sold off, and if no complaints of its quality be made hereafter, I shall be glad.
The bill of exceptions also contained a number of accounts sales of merchandise made by the defendant, by order of Charles Pettit; and accounts current with him, commencing in 1822. The only account which was the subject of notice in the charge of the circuit court, was one dated at Gibraltar, June 30, 1825, of the property of the plaintiff left in the hands of the defendant on the 18th December, 1824. This was an account sales, showing a balance of two thousand five hundred and seventy-eight dollars and eleven cents. The account sales was stated to be:
Sales of merchandise received 3d November, 1824, ex ship William Penn, William West master, from Philadelphia, by order of Mr. Charles Pettit, for account and risk of the concerned, per Horatio Sprague, Gibraltar. Gibraltar, June 30, 1825.
By the account current between the defendant and Charles Pettit, dated “July 6, 1825,” in which credit was given for the nett proceeds of the sales of June 30, 1825, a balance appeared to be due from Charles Pettit to the defendant, of one thousand four hundred and six dollars and —— cents. The bill of exceptions contained no other account in which the
- That the court charged the jury upon an issue which not only did not appear upon, but was excluded by the pleadings; upon which the cause was not tried; and which was not raised by any of the counsel in argument.
- That whether any demand for an account had ever been made, by plaintiff upon defendant; whether any account had ever been rendered by defendant to plaintiff; and whether any account was an account stated between plaintiff and defendant, were all questions for
the jury; and that the court erred in withdrawing the same from the jury, and giving them a positive direction thereon. - That supposing the questions set forth in the foregoing error assigned to be for the court, the court erred in charging the jury that, in point of law, there was any demand made on defendant by plaintiff for an account: that the defendant had ever rendered an account to the plaintiff; and that there was an account stated between the plaintiff and the defendant, so as to deprive the plaintiff of the benefit of the exception in the statute of limitations concerning merchants’ accounts.
- Because the charge of the court was against the law and the evidence.
Mr. Hare, for the plaintiff in error: The defendant in error objects to this Court‘s jurisdiction, as well as to that of the court below, on the ground that he is within the 11th section of the judiciary act of 1789, which enacts, that “no civil suit shall be brought in the circuit courts against an inhabitant of the United States, by any original process, in any other district than that whereof he is an inhabitant, or in which he shall be found at the time of serving the writ.” This question was raised in the court below, by means of a rule to show cause why the writ should not be quashed, and decided against the defendant after argument, and on affidavits, showing that the defendant was a citizen of Massachusetts, and had been for more than twenty years an inhabitant of Gibraltar. We contend: 1. That the matter of such a defence, as it ousts the court below, or this Court of its jurisdiction, by reason of a personal privilege, must be duly pleaded; and if waived in the order of pleading, is lost. 2. That the defendant, not being an inhabitant of the United States, but residing in another country, is, therefore, not within the 11th section, and is liable to foreign attachment. As to the first point, the 11th section confers a personal privilege which, like all other personal exemptions, must be pleaded; because his right to it is examinable, and nothing appears on the record to found a doubt of the jurisdiction. And as it is a personal privilege, it may be waived, in which case the court has jurisdiction. As it is merely dilatory, it is not to be favoured. Harrison v. Rowan, 1 Peters C. C. R. 489; Kitchen v. Williamson, 4 Wash. C. C. R. 85;
Mr. Gerhard for the defendant: It becomes the duty of the counsel for the defendant in error, not only to maintain that the errors assigned by the plaintiff cannot be sustained, but further to show that if the plaintiff could prove him-
But if the plaintiff can be supposed to have attained his object, and to have shown by the evidence which he adduced for the purpose, that the domicil of the defendant was in Gibraltar, at the time of the institution of this suit; he effectually deprives the courts of the United States of all jurisdiction over the case: since he would then be a citizen of the United States but not a citizen of one of the United States.
To conclude the argument on this point, the record shows that the defendant was, at the time of the commencement of this action, a citizen of Massachusetts; the laws which govern the action of foreign attachment, and make it necessary that the defendant should be absent from the state, are judicially cognizable; and besides, the return of the writ shows that the defendant was not served with the process in the state of Pennsylvania. The defendant was forced, by the attachment of his funds, and the decision of the court on the summary application, to appear to the action by entering special bail. The error is therefore apparent to this Court, and the defendant has not waived his privilege. Should the Court have any doubt about the nature and grounds of the defendant‘s application to quash, the attachment; he should be permitted to show to this Court, that his appearance was an involuntary one. This was the course pursued in Harrison v. Rowan, 1 Peters’ C. C. Rep. 489: but had the record been fully certified, there could have been no difficulty upon this subject. If, on the other hand, the defendant was not an inhabitant of Massachusetts, then he was a citizen of the United States, but not a citizen of one of the United States, and the circuit court never had or can have jurisdiction of the cause.
There were two issues tried by the same jury, viz. one an issue on the plea of non assumpsit; and the other on the plea of the statute of limitations. Both were found for the defendant, “under the direction of the court.”
It is complained that there was error in the charge of the judge upon the issue of the statute of limitations. If it should be granted, for the sake of argument, that there was, yet how does this affect the
The defendant, however, denies that there is any error in the judge‘s charge. It has been urged, but it cannot be seriously contended, that the judge‘s charge was in itself erroneous. The only point which can be really pressed is, that the charge was erroneous in reference to the issue as to the statute of limitations actually under trial; and it is said that the only point put in issue by the rejoinder was, whether the plaintiff and defendant stood in the relation of merchant and factor; and that the rejoinder admitted, that no account had been settled by passing that allegation in the replication and taking issue upon the existence of the relation of merchant and factor.
Is this so? The plaintiff, in his replication, not only states that the action was founded upon accounts between merchant and factor, but also, that no account had been stated or settled between the parties; and the whole of this matter was necessary to constitute a good reply to the defendant‘s plea. 5 Cranch, 15; 2 Cond. Rep. 175; Spring v. Gray, 6 Peters, 151; Stiles v. Donaldson, 2 Dall. 264. If, then, that was a single proposition of defence, when we denied that “those sums of money became payable in trade had between merchant and merchant and factor, &c., in manner and form, &c.?” as the replication alleged, we denied the whole proposition of defence; and the question whether an account had been settled, immediately arose, and was passed upon by the jury. If this was not the case, the issue
Mr. Gilpin, for the plaintiff:
The facts involved are few, and not disputed. In September, 1824, Henry Toland, a citizen of Pennsylvania, shipped certain tobacco and teas, in the William Penn, bound to Gibraltar. They were consigned to Pettit, the supercargo. Part were sold there by him, and one thousand dollars of the proceeds remitted to Toland. When Pettit left Gibraltar, in December, he placed the remainder of these goods, with those of other persons, in the hands of Horatio Sprague, a citizen of Massachusetts; then, and still resident in Gibraltar; with instructions to sell them and account therefor to Toland. He corresponded with the latter accordingly, up to the following June; when, on a settlement made between Pettit and Sprague, at Gibraltar, of their own affairs, it appeared that the former was largely indebted to the latter: who, thereupon, passed the proceeds of the goods, amounting to one thousand five hundred and seventy-nine dollars and eleven cents, to Pettit‘s credit in their account, and so wrote to Toland. No account was furnished to the latter; but in the month of September, 1825, he saw, in the possession of Pettit, a general account of sales from Sprague, in which this item was embraced, and he thereupon demanded payment of it from Sprague: This was refused; and though the commercial dealings and accounts between them continued for several years, payment of this sum never was obtained. In August, 1834, finding some property of Sprague, in Pennsylvania, the plaintiff, Toland, commenced a suit, by foreign attachment, in the circuit court of the United States for that district.
It is now objected that the court had no jurisdiction of such suit; and this objection amounts to a denial of the right of proceeding in the circuit courts of the United States, by “foreign attachment.” If this be so, it is scarcely possible that on a point which must have so often arisen, we can be without an express judicial decision to that effect. Yet none such has been produced. Two cases are relied on; but neither of them turns upon this point, or resembles, in its circumstances, that now before the Court. In the case of Picquet v. Swan, 5 Mason, 38, the defendant was described, not as a citizen of
The law would seem to be very clear. By the
But, even had he been entitled to that privilege when the suit was brought, it is now too late to avail himself of it. He has pleaded in bar to the action, which is a waiver of his personal privilege. Had he pleaded in abatement, the point would have come up for the judgment of the court. By neglecting to do so, he has waived it. Harrison v. Rowan, 1 Peters’ C. C. R. 491; Pollard v. Dwight, 4 Cranch, 421; Logan v. Patrick, 5 Cranch, 288; Picquet v. Swan, 5 Mason, 43. The motion to quash was a summary proceeding, on which error will not lie. If the defendant intended to avail himself of an alleged error of the court in that decision, he should have then permitted judgment to go by default; or have pleaded in abatement, so that there might have been a judgment on the point. He has pleaded over to the action, and it is now too late to avail himself of the error, if it were one.
But suppose it was error in the circuit court to refuse this privilege even on a summary motion; still, by the record now before this Court, it does not appear that they did so. The record merely sets forth a general “motion to quash the attachment;” and, as general, a “refusal” by the court: the grounds either of the one or the other do not appear.
Passing, then, this preliminary point of the jurisdiction of the circuit court, we come to the charge of the court, in which the plaintiff contends there is manifest error.
It is necessary to examine the pleadings carefully. This is an action of assumpsit. The defendant pleads first, non-assumpsit; second, the statute of limitations. The plaintiff joins issue on the first; and replies to the second, that he is not barred by the statute of limitations because “the sum claimed became due in trade between them as merchants, and merchant and factor, and that no account was ever stated or settled between them.” The defendant rejoins only, that “the sum claimed did not become due in trade between them as merchants and merchant and factor.” The plaintiff joins issue. Here then are two issues, both tendered by the defendant: and they are first, non-assumpsit; second, were the dealings between the parties those of merchants? No other points are left open by the pleadings. The whole intention of pleading is to ascertain exactly the point in controversy; the issue tendered is the notice of this point given by one party to the other. Accordingly, on the trial, (as the receipt of the money was admitted, and the assumpsit thus proved,) the whole evidence and argument were confined to the point, whether or not “the dealings between the parties were those of merchants, and merchant and factor.” When the court came to charge the jury, they excluded, expressly, from their consideration all the evidence as to the facts involved in this point, and all the arguments upon it: and they instructed them that the case was to be decided upon another point; namely, that where there was a settled and stated account for more than six years, it barred the plaintiff‘s claim: that the account of 4th
To this charge, we have three exceptions:
I. The court charged on the issue, “whether or not there was a settled and stated account between these parties;” and in so doing they erred.
1. Because the parties themselves never made such an issue in their own pleadings. The plaintiff in his replication had expressly tendered that point to the defendant, but he had not accepted it.
2. Not only was that point not made by the pleadings, but it was excluded by them; for if there was an account settled and stated, it showed a balance due to the plaintiff for more than six years, yet the defendant denies any such balance at any time. Again, it is excluded because it was traversable matter presented, totidem verbis, in the replication; and it is a settled rule of pleading, that “every material fact alleged must be traversed;” Larned v. Bruce, 6 Mass. 57: and that “where traversable matter is not traversed, it is confessed.” Nicholson v. Simpson, Strange, 297. The allegation made by the plaintiff in his replication, that there was no account stated, not being traversed, was thus confessed; and therefore excluded from the consideration of the jury, or the court.
3. Nor was the case either argued or tried upon this point.
It was therefore error in the court to charge on it. They had no right to put to the jury that which was concluded by the pleadings; as well might the court on a plea of payment in an action of debt on a bond, instruct the jury to find that it was, or was not the deed of the defendant.
II. But suppose the question whether there was a settled account be not concluded by the pleadings; be still open to the jury; yet this was a matter of fact. Various considerations are involved in it; it is not “a construction of written papers;” the very plea and issue show it was for a jury: there was a complicated account between Sprague and Pettit, a third person; the extent to which Toland, the plaintiff, was connected with each of them, was an essential element. The court, in their charge, took entirely from the jury all consideration of these matters, and decided the point as entirely one of law. In this there was error.
III. To come, however, to the main inquiry. We contend that there never was, in fact, an account stated and sett‘d, so as to de-
According to the evidence in the case, the defendant, Sprague, was the factor of Toland, the plaintiff; and corresponded with him as such, from December, 1824, to July, 1825. He was also, during the same period, engaged in trade with Pettit. In the latter month, he made up an account sales between himself and Pettit, and sent it, not to the plaintiff, but to Pettit; in whose hands the plaintiff saw it, and found it embraced some of his property; and this he demanded of him. The dealings between the plaintiff and defendant continued open for several years: Sprague always explicitly refused to state or settle an account between himself and Toland, for any item in the account sales rendered to Pettit, and denied that the former had any thing to do with it. Yet on these facts, it is contended that there was a “stated and settled account between Toland and Sprague.” What is a “stated account?” Lord Hardwicke describes it. It is an account current, sent by one merchant to another, in which a balance is due from one to the other. Tickel v. Short, 2 Vesey, 239. If the receiver holds it for a certain time without objection, it becomes a stated account. It must be an account, that is, a settlement of their transactions by the parties; it must be between themselves; it must preclude both parties. But how is this account between Pettit and Sprague a settlement between the latter and Toland? Would Sprague be precluded from any claim against Toland, because he had omitted to state it in such an account with a third person? It is no settlement, no statement of an account; and consequently no bar.
In addition to these exceptions to the charge of the court, it remains to make a single remark on a point presented by the defendant, as a reason why the writ of error should be dismissed: that “there were two pleas pleaded, the one being the general issue, and no averment in the record, that in this verdict and judgment on this plea, there was error.” In reply, the judgment is entered on the verdict, and that is expressly stated to be under the direction of the court, whose charge was confined to the question of the statute of limitations. But in truth, this is not material; for it is sufficient to show manifest error on any point in the charge of the court.
This is a writ of error to a judgment of the circuit court of the United States for the district of Pennsylvania.
The suit was commenced by the plaintiff in error against the defendant in error, by a process known in Pennsylvania by the name of a foreign attachment; by which, according to the laws of that state, a debtor who is not an inhabitant of the commonwealth, is liable to be attached by his property found therein, to appear and answer a suit brought against him by a creditor.
It appears upon the record, that the plaintiff is a citizen of Pennsylvania; and the defendant a citizen of Massachusetts, but domiciled, at the time of the institution of the suit, and for some years before, without the limits of the United States, to wit, at Gibraltar; and when the attachment was levied upon his property, not being found within the district of Pennsylvania.
Upon the return of the attachment, executed on certain garnishees holding property of, or being indebted to the defendant; he, by his attorney, obtained a rule to show cause why the attachment should not be quashed, which rule was afterwards discharged by the court; after which the defendant appeared and pleaded. Issues were made up between the parties, on which they went to trial, when a verdict and judgment were rendered in favour of the defendant. At the trial, a bill of exceptions was taken by the plaintiff, stating the evidence at large, and the charge given by the court to the jury; which will hereafter be particularly noticed when we come to consider the merits of the case. But before we do so, there are some preliminary questions arising in the case, which it is proper for us to dispose of.
And the first is, whether the process of foreign attachment can be properly used by the circuit courts of the United States, in cases where the defendant is domiciled abroad, and not found within the district in which the process issues, so that it can be served upon him?
The answer to this question must be found in the construction of the
That section, as far as relates to this question, gives to the circuit courts original cognizance, concurrent with the courts of the several states, of all suits of a civil nature, at common law or in equity, where
This question was elaborately argued by the circuit court of Massachusetts, in the case of Picquet v. Swan, reported in 5th Mason, 35.
Referring to the reasoning in that case, generally, as having great force, we shall content ourselves with stating the substance of it in a condensed form, in which we concur. Although the
If such be the inference from the course of legislation; the same interpretation is alike sustained by considerations of reason and justice. Nothing can be more unjust, than that a person should have his rights passed upon, and finally decided by a tribunal; without some process being served upon him, by which he will have notice, which will enable him to appear and defend himself. This principle is strongly laid down in Buchanan v. Rucker, 9 East, 192. Now, it is not even contended that the circuit courts could proceed to judgment against a person who was domiciled without the United States, and not found within the judicial district, so as to be served with process, where the party had no property within such district. We would ask what difference there is, in reason, between the cases in which he has, and has not such property? In the one case, as in the other, the court renders judgment against a person who has no notice of the proceeding. In the one case, as in the other, they are acting on the rights of a person who is beyond the limits of their jurisdiction, and upon whom they have no power to cause process to be personally served. If there be such a difference, we are unable to perceive it.
In examining the two restraining clauses of the
If, indeed, it be assumed that congress acted under the idea that the process of the circuit courts could reach persons in a foreign jurisdiction, then the restrictions might be construed as operating only in favour of the inhabitants of the United States, in contradistinction to those who were not inhabitants; but, upon the principle which we have stated, that congress had not those in contemplation at all, who were in a foreign jurisdiction, it is easy to perceive why the restriction in regard to the process was confined to inhabitants of the United States. Plainly, because it would not have been necessary or proper to apply the restriction to those whom the legislature did not contemplate, as being within the reach of the process of the courts, either with or without restrictions.
With these views, we have arrived at the same conclusions as the circuit court of Massachusetts, as announced in the following propositions, viz: 1st. That by the general provisions of the laws of the United States, the circuit courts can issue no process beyond the limits of their districts. 2d. That independently of positive legislation, the process can only be served upon persons within the same districts. 3d. That the acts of congress adopting the state process, adopt the form and modes of service, only so far as the persons are rightfully within the reach of such process, and did not intend to enlarge the sphere of the jurisdiction of the circuit courts. 4th. That the right to attach property, to compel the appearance of persons, can properly be used only in cases in which such persons are amenable to the process of the court, in personam; that is, where they are inhabitants, or found within the United States; and not where they are aliens, or citizens resident abroad, at the commencement of the suit, and have no inhabitancy here: and we add, that even in case of a person being amenable to process in personam, an attachment against his property cannot be issued against him; except as part of, or together with process to be served upon his person.
The next inquiry is, whether the process of attachment having issued improperly, there has any thing been done which has cured the error? And we think that there is enough apparent on the record, to produce that effect. It appears that the party appeared, and pleaded to issue. Now, if the case were one of a want of jurisdiction in the court, it would not, according to well established principles, be competent for the parties by any act of theirs, to give it. But that is not the case. The court had jurisdiction over the parties
It has, however, been contended, that although this is true as a general proposition, yet the party can avail himself of the objection to the process in this case, because it appears from the record, that a rule was obtained by him to quash the attachment, which rule was afterwards discharged; thus showing, that the party sought to avail himself of the objection below, which the court refused. In the first place, it does not appear upon the record, what was the ground of the rule; but if it did, we could not look into it here, unless the party had placed the objection upon the record, in a regular plea; upon which, had the court given judgment against him, that judgment would have been examinable here. But in the form in which it was presented in the court below, we cannot act upon it in a court of error. The
Having now gotten rid of these preliminary questions, we come, in the order of argument, to the merits of the case. To understand these, it will be necessary to look into the pleadings, the evidence, and charge of the court, as embodied in the exceptions.
The declaration is in assumpsit, and originally contained three counts, viz., the first, a count charging the delivery of certain goods to the defendant, upon a promise to account and pay over the proceeds, or sale thereof, by the defendant; and a breach of promise, in not accounting, or paying the proceeds of the sale. 2dly. count in indebitatus assumpsit; and 3dly, a count upon an account stated. A rule having been granted to amend the declaration, by striking out this last count, and that rule having been made absolute, we shall consider the declaration as containing only the two first counts. To this declaration the defendant pleaded the general issue, which was joined by the plaintiff, and also the act of limitations; to this second plea, the plaintiff replied, relying on the exception in the statute in favour of such accounts as concern the trade of merchandise between merchant and merchant, their factors or servants; averring that the money in the several promises in the declaration became due and payable on trade had between the plaintiff and defendant, as merchant, and merchant and factor, and wholly concerned the trade of merchandise between the plaintiff as a merchant, and the defendant as a merchant and factor of the plaintiff; and averring, also, that no account whatever of the said money, goods, and merchandises, in the declaration mentioned, or any part thereof, was ever stated, or settled between them. The defendant rejoined, that he was not the factor of the plaintiff; and that the money in the several promises in the declaration mentioned, did not become due and payable in trade had between the plaintiff and defendant as merchant, and merchant and factor; and on this, issue was joined. On the trial of these issues, there were sundry letters between the parties, and accounts given in evidence, which are set forth at large in a bill of exceptions, in relation to which the court gave a charge to the jury; the jury having found a verdict for the defendant, and the court having rendered a judgment in his favour, the case is brought by the plaintiffs, into this Court, by writ of error. And the question is, whether there is any error in the charge of the court, as applied to the facts of the case stated in the exception. The court, after going
In deciding upon the correctness of this instruction, it is necessary to inquire what is the principle of law by which to test the question, whether a case does or does not come within the exception of the statute, in favour of accounts between merchant and merchant, their factors or servants. No principle is better settled, than, that to bring a case within the exception, it must be an account; and that, an account open, or current. See 2d Wms. Saund. 127, d. e., note 7. In 2 Johns. 200, the Court say that the exception must be confined to actions on open or current accounts; that it must be a direct concern of trade; that liquidated demands, or bills and notes which are only traced up to the trade or merchandise, are too remote to come within this description. But the case of Spring and others v. The Ex‘rs. of Gray, in this Court: 6 Peters, 151; takes so full and accurate a review of the doctrine and cases, as to render it unnecessary to refer to other authorities. It distinctly asserts the principle, that the account, to come within the exception, must be open or current. This construction, so well settled on authority, grows out of the very purpose for which the exception was enacted. That purpose was, to prevent the injustice and injury which would result to merchants having trade with each other, or dealing with factors, and living at a distance, if the act of limitations were to run, where their accounts were open and unsettled; where, therefore, the balance was unascertained, and where, too, the state of the accounts might be constantly fluctuating, by continuing dealings between the parties.
But when the account is stated between the parties, or when any thing shall have been done by them, which, by their implied admission, is equivalent to a settlement, it has then become an ascertained debt. In the language of the court of appeals of Virginia, 4 Leigh, 249, “all intricacy of account, or doubt as to which side the balance may fall, is at an end;” and thus the case is neither within the letter nor the spirit of the exception. In short, when there is a settled account, that becomes the cause of action, and not the original account, although it grew out of an account between merchant and merchant, their factors or servants.
Let us now inquire how far this principle applies to the facts of
In the year 1824, the plaintiff consigned a quantity of merchandise, by the ship William Penn, bound to Gibraltar, to a certain Charles Pettit, accompanied with instructions as to the disposition of it. Pettit, after arriving at Gibraltar, and remaining there a short time, placed all the merchandise belonging to the plaintiff, which remained unsold, in the hands of the defendant, to be disposed of by him, for plaintiff‘s account. The plaintiff produced on the trial, an account of the sales of the aforesaid merchandise, dated June 30th, 1825, signed by the defendant, as having been made by him, amounting in nett proceeds to two thousand five hundred and seventy-nine dollars and thirteen cents; and showing that balance.
In September, 1825, the plaintiff wrote to the defendant, requesting him to remit to him the nett proceeds of this merchandise, amounting to two thousand five hundred and seventy-nine dollars and thirteen cents; after deducting therefrom a bill of exchange of one thousand dollars, which had been drawn by defendant in favour of Charles Pettit, on a house in New York. Pettit being indebted to the defendant, as alleged by him, in a large sum of money, for advances, and otherwise, the defendant refused to pay the plaintiff the amount of the sales of the merchandise; and denied his liability to account to him therefor.
In addition to the demand before stated, by plaintiff on the defendant, for the balance of the account of sales by letter, on the trial of the cause, the counsel for the plaintiff, in opening the case, claimed the balance of an account between Sprague, the defendant, and Charles Pettit; being the precise amount of the balance of the account of sales, after deducting the bill of exchange for one thousand dollars.
It appears that the plaintiff was in possession of the account of sales as early as September, 1825.
Upon this state of facts appearing in the record, the question is, whether the cause of action in this case is an open, or current account between the plaintiff and defendant, as merchant and factor, concerning merchandise; or whether it is an ascertained balance, a liquidated sum, which, although it grew out of a trade of merchandise, is, in legal effect, under the circumstances, a stated account? We think it is the latter.
In the language of the court who gave the charge, we think that
It has however been argued, that whatever might be the conclusion of the court, as resulting from the evidence, that the defendant had admitted upon the record that the account was an open one. It is said, that the plaintiff having averred in his replication that there was no account stated, or settled between him and the defendant, and the defendant not having traversed that averment in his rejoinder, the matter contained in that averment is admitted. It is a rule in pleading, that where in the pleading of one party there is a material averment, which is traversable, but which is not traversed by the other party, it is admitted. We think that the rule does not apply to this
But in another aspect of this case the statute of limitations would apply to, and bar the plaintiff‘s claim; if the account of sales were regarded as having no operation in the case. The plaintiff, standing in the relation which he did to the defendant, as it respects this merchandise, had a right to call upon him to account; he did make that demand, and the defendant refused to render one, holding himself liable to account to Pettit only. From the moment of that demand and refusal, the statute of limitations began to run. See 1 Taunton, 572.
It was argued that the question whether there was a stated account or not, was a question of fact for the jury; and that therefore the court erred in taking that question from them, and telling them that this was a stated account.
The answer is, that there was no dispute about the facts; and that the plaintiff claimed the balance of the account as being the precise sum due to him. It was therefore competent to the court to instruct the jury that it was a stated account.
Upon the whole, we think there is no error in the judgment: it is therefore affirmed, with costs.
Mr. Chief Justice TANEY:
I concur with the majority of the Court in affirming the judgment of the circuit court. But I do not assent to that part of the opinion which declares that the circuit courts of the United States have not the power to issue the process of attachment against the property of a debtor, who is not an inhabitant of the United States. It does not appear by the record that this point was raised in the court below; and I understand from the learned judge who presided at the trial, that it was not made.
The decisions on this question have not been uniform at the circuits. In several districts where this process had been authorized by the laws of the states, the circuit courts of the United States adopted it in practice; and appeared to have considered the
If the case before us required the decision of this question, it would be our duty to meet it and decide it. But the point is not necessarily involved in the decision of this case; and I am, therefore, unwilling to express an opinion upon it.
The attachment, in the case before us was dissolved by the appearance of the defendant; and no final judgment was given upon it in the court below. When the defendant appeared and pled in bar to the declaration filed by the plaintiff, the controversy became an ordinary suit between plaintiff and defendant; the proceedings on the attachment were at an end, and could in no degree influence the future progress and decision of the action. And this Court, in revising the judgment given by the circuit court in such an action, cannot look back to the proceedings in the attachment in which no judgment was given; nor can the refusal of the circuit court to quash the attachment on the motion made by the defendant, be assigned as error in this Court. The validity of that process, therefore, need not be drawn into question in the judgment of this Court, on the case presented here for decision. For whether the attachment was legal or illegal, the judgment of the circuit court, as the case comes before us, must be affirmed. And as the question is an important one, and may affect the rights of individuals who are not before the Court, and as the case under consideration does not require us to decide it; I think it advisable to abstain from expressing an opinion upon it: and do not assent to that part of the opinion of the Court which declares that the process in question is not authorized by the acts of congress.
Mr. Justice BALDWIN agreed with the Chief Justice in the opinion delivered by him; if it was necessary, he would go further as to the authority of the courts of the United States to issue foreign attachments.
Mr. Justice WAYNE agreed with the Chief Justice in opinion. He
Mr. Justice CATRON had not formed any opinion on the question of the right of the circuit courts to issue foreign attachments. He thought that question did not come before the Court in this case; and it was not necessary to examine or decide it.
This cause came on to be heard on the transcript of the record from the circuit court of the United States for the eastern district of Pennsylvania, and was argued by counsel. On consideration whereof, it is now here ordered and adjudged by this Court, that the judgment of the said circuit court in this cause be, and the same is hereby affirmed, with costs.
