17 Blatchf. 312 | U.S. Circuit Court for the District of Southern New York | 1879
This suit was brought in the district court by the United States against the defendants in error [Frank Phelps and Howard Phelps], to recover $270.40 in gold coin, with interest from March Cth, 1S7S. The complaint alleges that the defendants, on the 6th of March, 1878, imported into the port of New York certain fruit, subject to duties, and entered it at said port; that, thereupon, the collector of said port decided that the amount of duties to be paid thereon was $4,04S in gold coin; and that the defendants have paid thereon $4,377.00 and no more. The answer sets up, that the defendants paid, on entry, $4,648 in gold coin, as duties; that the defendants made a claim for an allowance of duties for damage to the fruit on the voyage; that the fruit was appraised and damage allowed; that the collector adjusted the duties and decided that the amount of duties was $4,377.60 in gold coin, and no more, and refunded to the defendants $270.40; and that the $4,377.60 was paid to and received by the United States in full settlement and payment of all the duties on said fruit.
The bill of exceptions sets forth, that, on the trial, the following facts were proved: On the 6th of March, 187S, the defendants imported into the port of New York, from foreign ports, by the steamship Olaf, 4,00S boxes
On the foregoing facts, the counsel for the defendants asked the court to direct a verdict for the defendants. The counsel for the plaintiffs asked the court to direct a verdict for the plaintiffs, for $281.88, on the grounds, (1.) That the last liquidation by the collector was final and conclusive in this action brought by the United States for duties; (2.) That, if such liquidation was not final and conclusive, the $270.40 was due from the defendants as duties on the goods imported. The court denied the motion of the plaintiffs, and directed the jury to find a verdict for the defendants. [Case unreported.] To such refusal and direction the counsel for the plaintiffs duly excepted. The jury thereupon, under the direction of the court, rendered a verdict in favor of the defendants. On this verdict a judgment was entered dismissing the complaint on the merits of the action, as against the plaintiffs.
It is contended, for the United States, that the court should have directed the jury to find a verdict for the plaintiffs for the full amount claimed, because the $270.40 was proved to be a part of the ascertained or liquidated duties on the goods imported by the defendants; that the fact that the duties had been twice previously liquidated did not deprive the collector of power to make the last liquidation; and that it was within his authority, on the same facts, to change his interpretation of the law, and correct the mistake he had made.
It is well settled, that the duties due upon all goods imported constitute a personal debt due to the United States from the importer; that the consignee is, for this purpose, treated as the owner and importer; that such debt is independent of any lien on the goods and of any bond given for the duties; and that the right of the government to the duties accrues when the goods have arrived at the proper port of entry. Meredith v. U. S., 13 Pet. [38 U. S.] 480. By section 2931 of the Revised Statutes the decision of the collector, in liquidating duties, as to the amount of duties on imported goods, is made final and conclusive against all persons interested in such goods, unless notice in writing of dissatisfaction with such decision is given to the
The reliquidation at $4,648 being lawful, such reliquidation stands for the purposes of this suit as if it was the only liquidation. On a liquidation, the United States is entitled to recover, in a suit against the importer or consignee, under section 2,931 of the Revised Statutes, formerly section 14 of the act of June 30th, 1864 (13 Stat. 214), the amount liquidated, as duties, and evidence in such suit, on the part of the defendant, to show that the decision of the collector was wrong, cannot be received. The only remedy of the importer is in a suit to recover back the duties, after paying them, in a case where such a suit is allowed by the statute. This was the ruling in U. S. v. Cousinery [Case No. 14,878], in the district court for this district, following the decision of the supreme court in Westray v. U. S., 18 Wall. [85 U. S.] 322. Such ruling was approved by Chief Justice Waite, in Watt v. U. S. [Case No. 17,292], and must be held to be the law, until it is reversed.
For these reasons, it was error in the court below to refuse to direct a verdict for the plaintiffs, and error to direct a verdict for the defendants. The first ground urged by the counsel for the plaintiffs, as a ground for directing a verdict for the plaintiffs, was a sound one, namely, that the last liquidation by the collector was final and conclusive against the defendants in this suit; and it is unnecessary to consider the question as to whether the collector was wrong in refusing to allow any damage, on the last liquidation.
The judgment is reversed, with costs to abide the event, and a direction to the court below to enter an order granting a new trial.