delivered the opinion of the Court.
The plaintiff in error brought an action at law against the defendants in error in the United States District Court for the District of Oregon to recover damages for the fraudulent acquisition' of certain lands. The complaint was filed in February, 1918, and alleged that the Oregon Lumber Company, a corporation, and certain of its officers, named as co-defendants, unlawfully conspired to acquire certain tracts of land in Oregon, under the Timber and Stone Act of June 3, 1878, c. 151, 20 Stat. 89. The lands were patented in 1900, subsequently conveyed by the patentees to an officer of the defendant corporation, and thereafter (with the exception of a small tract) transferred by such officer to the corporation. The value of the lands was alleged to be $65,000 and judgment was asked for this amount.
The answer denied thé material allegations of the complaint and pleaded, among other things, as separate defenses: “(1) that
pro tanto
to the measure of damages the United States received from the several entrymen named in the complaint the aggregate sum of $16,400, which was the price fixed by law and the practices in the land office for the lands described in the complaint; (2) that in October, 1912, the United States brought suit in equity to set aside the patents for the lands and alleged that it owned the property described in the' complaint herein and that the patents for the lands which are1 the same as are involved in this action were secured through fraud of the defendants named in the present action and others, and prayed for the cancellation of the patents; that in the equity suit substantially the same facts were pleaded as are pleaded by the United States in this action; that issue was joined in the equity suit; that in 1916, after trial upon the merits, the District Court dismissed the equity
The plaintiff' in error demurred to these separate defenses, and, the District Court having overruled the demurrer and the plaintiff in error having declined to plead further, the court dismissed the complaint and judgment • was entered.
■ The District Court, in rendering its judgment, decided that, inasmuch as the suit in equity was brought by. the United States with knowledge of all the facts, it constituted an election final and conclusive.
Upon these facts the following questions are propounded by the Circuit Court of Appeals:
H 1. Is an action by the United States for the value of lands as damages, against the patentees for the lands for fraudulent acquisition of the lands patented under the timber' and stone act, barred where more than six years have elapsed after the United States, with knowledge of the fraud, brought a suit in equity to cancel the patents for the same lands, in which equity suit decree of dismissal was made against the United States on the ground that the suit was barred by the statute of limitations?1
“ 2. If the foregoing question be answered in the negative, should any damages recoverable be reduced by such amounts as the United States may have received from the entrymen, as the price fixed by law for the lands described in the patents? ”
Upon the facts stated the sale was voidable
(Moran
v.
Horsky,
It is suggested in the brief for the plaintiff in error that there is not such inconsistency between a suit to recover lands patented because of fraud and an action to recover damages for the fraud as to bar the latter, citing
Friederichsen
v.
Renard,
" Thus, we are brought to the conclusion that since the two remedies asserted by the petitioner were alternative remedies, and since the order made, requiring the conversion of the suit in equity into one at law, was entered by the -court sitting in chancery, for us to affirm the judgment of the Circuit Court of Appeals that the petitioner, in. obeying the order of the trial court, made a fatal choice of an inconsistent remedy, would be to subordinate substance to form of procedure, with the result of defeating a claim which the respondents stipulated had been sufficiently established to justify a verdict against them. This we cannot consent to do.”
But here in the equity suit, the plaintiff in error upon the coming in of the defendant’s plea of the statute of limitations made no offer to amend or request to transfer the case to the- law docket, but proceeded to trial and judgment upon the original bill, with knowledge of all the facts for more than six years prior to the filing .of its bill. Defeated in its equity suit, it brought, its action at law upon the same allegations of fact. We think it is not admissible to thus speculate upon the action of the court, and, having mqt with an adverse • decision’ to again vex the defendant with another and inconsistent action upon the same facts.
■ The justice of enforcing the doctrine of election of remedies in this case is emphasized by a consideration of the facts: The lands in question were conveyed by the United States in .the year 1900. It was not until 1912 that the first suit was brought. The judgment, dismissing the bill in that suit, was rendered in 1916, and the present action was brought two years later. Thus á period of eighteen years had elapsed since-the transfer of the lands before the-' present action was begun, during more than two-thirds of’which time the United States had possessed
The mere filing of the bill in the first suit, according to many authorities, did not constitute an irrevocable election. ■ But upon ascertaining from their plea that the de-' fendants intended to rely upon the statute of limitations, and having knowledge of the facts upon which that plea was founded, and thereafter sustained, the plaintiff in • error had fairly presented to it the alternative: (a)' of abandoning that suit and beginning an action at law.or transferring it to the law side of. the court and making the necessary amendments to convert it into an action for damages, as a
“
mere incident in the progress of the original case,” (
The cáse of
Bistline
v.
United States,
Northern Assurance Co. v. Grand View Building
Association,
It is further urged that the judgment of the District Court was. not upon the merits but upon the plea' in bar and that, therefore, when the equity suit was begun, plaintiff in error had no choice of remedies, since the judgment rendered established that in fact there was no remedy in equity at all. The contention, we think, is unsound.
The defense of the statute of limitations is not a technical defense but' substantial' and meritorious. The great weight of modern authority is to this effect.
Lilly-Brackett Co.
v.
Sonnemann,
Such statutes are not-only statutes of repose, but they supply the place of evidence lost or impaired by lapse of time by raising a presumption which renders proof unnecessary.
Bell
v.
Morrison,
In Wood v. Carpenter, this Court said:
“ Statutes of limitation are vital to the welfare of society and are favored in the law. They are found and approved in all systems of enlightened jurisprudence.' They promote repose by giving security and stability to human affairs. An important public policy lies at their foundation. They stimulate to'activity and punish negligence. While time is constantly destroying the evidenceof rights, they supply its place by a presumption which renders proof .unnecessary. Mere delay, extending to the limit prescribed, is itself a conclusive bar. The bane and antidote go together.”
In Riddlesbarger v. Hartford Insurance Co.:
“ They are founded upon the general experience of mankind that claims, which are valid, are not usually allowed to remain neglected.- The lapse of years without any attempt to enforce a. demand creates, therefore, a presumption against its original validity, or that it has -ceased to subsist. This presumption is made by these, statutes a positive bar; and they thus become statutes of repose, protecting parties from the prosecution of stale claims, when, by loss of evidence from death of some witnesses, and the imperfect recollection of others, or the destruction of documents, it might be impossible to establish the truth.”
In Parkes v. Clift, 9 Lea (Tenn.) 524, it was held that a decree dismissing a bill on' the ground of lapse of time was a judgment upon the merits. The court said (pp. 531, 532):
“ In order that, a judgment or decree should be on the merits, it is not necessary that the litigation should be determined ‘ on the merits,’ in the moral or abstract sense of these words. ' It is sufficient that the status of the action. was such that the parties might have had their suit thus disposed of, if they had properly presented and managed their respective; cases ; . . • A finding, against a party, either upon final hearing or demurrer, that his cause of action as shown by him, is barred by the statute of limitations- or by laches is a decision upon the merits^ concluding the. right of action.” See also People ex rel. Best v. Preston,62 Hun, 185 , 188-189; Black v. Miller,75 Mich. 323 , 329.
Whether based on a plea of the statute of limitations or on a failure to prove substantive allegations of fact, there
The distinguishing feature of the instant case is that after the coming in of the answer, pleading the statute of limitations, and the plain warning thus conveyed of the danger of continuing the equity suit further, the plaintiff in error persisted in pursuing it to.final judgment, instead of promptly reforming the cause or dismissing the bill and seeking the alternative remedy not subject to the same defense. The doctrine of election of remedies and that of res ad judicata are not the same, but they have this in common that each has for its underlying basis the_ .maxim which forbids that one shall be twice vexed for one and the same causé. The policy embodied in this maxim we think requires us to hold that the plaintiff in error, in bringing the original suit, and in continuing after the plea in bar to follow it to a final determination, made an irrevocable election, and that it is now estopped from maintaining the present inconsistent action. -
Question No. 1 is. somewhat ambiguous but taken in ’ connection with the facts, it is clear that what the Circuit
It will be so certified.
The general rule that statutes of limitation do not run against the. United States often works hardship. The rule proved so oppressive when applied to proceedings to annul patents to land, that Congress erected for such suits the six-year bar. Act of March 3, 1891, c. 561, § 8, 26 Stat. 1095, 1099. In
Exploration Co., Limited,
v.
United States,
The fraud here involved was practiced in connection with the acquisition of land patented in 1900. To obtain redress the Government brought in 1912 a bill in equity to annul the patent. Defendants pleaded the statutory bar. The Government might then have dismissed its bill; and if it had done so, it could then unquestionably have com
The thing adjudged in the equity case was solely that the fraud had been discovered by the Government more than six years before the commencement of the suit; and . that, for this reason, the patent could not be annulled. There was no adjudication of the Government’s substantive right. And since it had two remedies to protect that right, and the fact found is not a bar to an action at law, no suggestion is made that the decree of dismissal bars this áction as
res judicata.
There is likewise no sugges
The doctrine of election of remedies is not a rule of substantive law. It is a rule of procedure or judicial administration. It is technical; and, as applied in some jurisdictions, has often sacrificed substantial right to supposed legal consistency. 1 ' The doctrine has often been invoked in this Court, but never before successfully. Its existence has been recognized; but in every case in which the question presented was actually one of election of remedies, this Court held that the doctrine did not apply; giving as a reason that one or the other of its essential elements was absent. These essentials are that the party must have actually had two remedies and that the remedy in question must be inconsistent with, the other previously invoked. Here- neither of these essential elements was present.
' The Government did not have a remedy in equity when the suit to annul the patent was begun or, at any time thereafter. That this is true was established by the de
Moreover, an action at law for deceit is not inconsistent with a prior unsuccessful suit to annul the patent. This case must not be confused with those in which it has been held that a prior action at law on a contract, or other proceeding arising out of it, bars a later suit to rescind; as where an action on a purchase money note has been held to bar a later suit by the vendor to set aside the conveyance for fraud. There, the reason why the conveyance cannot be set aside is that by suing at law, the vendor exercises his option to affirm the voidable transaction, and cannot thereafter disaffirm it; In so doing he makes a choice of substantivé rights; But where the vendor’s first attempt to obtain redress was by way of rescission, and there was in fact then no right to rescind, his substantive rights have not been changed.
2
This is the situation presented in the case at bar. The Government said, in effect: “We wish to rescind and get back the land; but if the facts, or the law are such that we cannot rescind, then we wish to recover damages for the deceit.” Certainly that is not taking inconsistent -positions. See
United States
v.
'Whited cú Wheless, supra,
pp. 562, 564. Indeed, an action for damages might be permissible as a supplemental remedy even if the equitable relief had been granted.
3
For annulling the patent may fail to give the Government
There are some cases in this Court, earlier than those discussed above, in which the doctrine of election of remedies was referred to when denying the relief sought. But in those cases, of which
Robb v. Vos,
Notes
See
Bistline
v.
United States,
See Election of Remedies, A Criticism, by Charles P. Hine, 26 Harv. Law Rev. 707; Election between Alternative Remedies by Walter Hussey Griffith, 16 Law Quar. Rev. 160; ibid. by J. F. W. Galbraith, 16 Law Quar. Rev. 269.
Barnsdall
v.
Waltemeyer,
In
Strong
v.
Strong,
Zimmerman
v.
Robinson & Co.,
See
Crockett
v.
Miller,
Thus
in Robb
v.
Vos,
Strong
v.
Strong,
