5 Denio 135 | N.Y. Sup. Ct. | 1848
Lead Opinion
The question presented in this case is important in determining the amount of damages upon a vast number of contracts simil ir to that now under consideration. In the indenture upon which this action is brought, the lessee covenanted to pay or deliver a specific number of bushels of wheat, oilier articles of personal prop
Upon the question of interest generally, there are many and conflicting decisions in the English courts, and in the courts of the different states of the Union. It will neither be necessary nor profitable on this occasion to refer to or collate this mass of scattered, and to some extent, irreconcilable authorities. This has been recently done with great industry and ability on the part of both counsel and judges, in a case involving a question of interest, which was elaborately examined in both the supreme court and the court for the correction of errors. In Reid v. The Rensselaer Glass Factory, (3 Cowen, 393,) in the supreme court, and the same case in the court for the correction of errors, (5 id. 587,) the whole doctrine touching the allowance of interest, in almost every conceivable case, was thoroughly discussed and considered; and all the previous adjudications relating to the subject were passed in review with appropriate commentaries and criticisms. ' We desire not to multiply references to decided cases, but rather, if it is possible, to seize the principle which governs or pervades these decisions, and to apply it to the particular state of facts under consideration. Unfortunately, in the present instance, this is' not easy, and perhaps it is not possible to do it -in any satisfactory manner.
It is difficult, and I may say impossible to extract from the cases which it has been found necessary to examine, the principle which has governed the courts in the allowance of interest. At least there is no principle which can be adopted which will reconcile them all. Spencer, senator, in Reid v. Tne Rensselaer Glass Factory, supposes that in England all interest was unlawful and forbidden prior to the statute 37 Henry 8, ch. 9,
Upon the very point now under consideration there have been two decisions in our own courts. The first case was Van Rensselaer’s Executors v. Plainer’s Administrators, (1 John. Rep. 276,) decided in 1806. I give the whole case as it is found in the reports.
“ This was an action of covenant for rent, and payable in wheat. The question submitted to the court was, whether interest was recoverable on the arrears of rent ? Per Curiam.
It is to be regretted, indeed, that many of the decisions of our courts upon points of this character are barren of reasons to sustain them. Such is in a marked manner the case with the first decision upon this point, which the defendant’s counsel would have us take as the rule. All that the court say there is, that they are of opinion that as a general rule interest is not recoverable in such a case. It was doubtless an opinion and decision announced from the bench when the point was presented, without any farther deliberation than such as occurred at the moment. The opinion thus expressed was undoubtedly in consonance with the English decisions at that day, and such doubtless would have been the judgment of the king’s bench upon that very point.
The case of Clark v. Barlow, (4 John. Rep. 183,) which determines that interest is recoverable on rent payable in money, is equally barren of any reason for the decision. Though this case was in hostility to the English decisions, it established a doctrine which has ever since governed our own courts. All that the court say in making the decision is, “We are of opinion that in an action of covenant brought to recover a sum certain due for rent and payable in money, the plaintiff is entitled to recover the interest.” Decisions are therefore not the less authoritative because the reasons therefor are not elaborated as much as would be desirable to understand the principles upon which they are based.
There is no question, I believe, but what theEnglish authorities are opposed to the allowance of interest in such a case as the present, and upon the facts in Lush v. Druse. When an obligation was giv.en for the payment of specific sums of money in goods at
On the argument of Lush v. Druse, the case of Spencer v. Tilden, (5 Cowen, 144,) was cited by the plaintiff’s counsel as an authority for the allowance of interest on contracts for the delivery of personal property after the day for delivery had elapsed and default made. In that case the obligation was to pay $360 or twelve cows and twelve calves on a day certain, The day elapsed without either being paid, and the court gave such a construction to the instrument as to make it a contract merely for the delivery of the cows and calves; and the damages allowed were the value of the cattle on the day of delivery and the interest thereon from that day. The question of interest seems indeed not to have been discussed or even considered on the argument or decision before this court; and it is perhaps not fairly a case to authorize the allowance of interest on a contract payable in personal property. But Sellick v. French, (1 Conn. Rep. 32,) decided in 1814, by the supreme court of errors of Connecticut, is a well considered case. One of the propositions respecting the allowance of interest is laid down as follows: “ When there is a written contract to pay money or other thing on a day certain, and the contract is broken, then interest is allowed by way of damages for the breach, as in the case of notes and bills of exchange.”
In contracts for the payment of a sum of money certain on a prescribed day, the debtor, in case of default in payment, must pay interest from the day the payment should have been made. This is because he detains from the creditor, against his will, a sum of money which he was entitled to have, and interest is the legal compensation or damage allowed for such detention. (See Crawford v. Willing, 4 Dall. 289.) What is there in principle to distinguish a contract for the payment of a specific amount of wheat on a day and at a place certain, from a like contract for the payment of money 1 If default be made in the payment of the wheat at the day and place specified, the party who was entitled to receive it is then entitled to the value
As a matter of principle, equity and fair dealing, of mutual justice between party and party, it is difficult to perceive why a creditor in a money contract should be entitled to interest after default in payment, and a creditor in a wheat contract should not be entitled to interest after default in delivery, when the effect upon both classes of creditors is precisely the same. Is it the difficulty of ascertaining the value of the wheat on the day that makes the difference in principle? If I purchase wheat now, to be paid for on the first day of February next at its value on that day, and I neglect to pay, I shall have to pay the value of the wheat on that day, with interest from the de fault until payment be made. I shall have to pay interest be
But it is urged that the principle that interest cannot be recovered on unliquidated damages applies to this case. It has been decided with as much barrenness of reasons as in most of the other decisions in relation to interest, that it is not recoverable on unliquidated damages. (Anon. 1 John. 315 ; Holliday v. Marshall, 7 Id. 211.) Neither can interest be recovered on an unliquidated account for work, labor and services. (Doyle's Adm'rs v. St. James' Church, 7 Wend. 178.) But it is recoverable for the value of labor upon a special contract for a specific compensation per month. (Still v. Hall, 20 Wend. 51.)
The case before us hardly comes within the definition of unliquidated damages, or unliquidated accounts, so far as any definition is conveyed by the decisions in such cases. When one is sued on a quantum meruit for work and services, as there has been no special agreement, he does not know how much will solve the debt. The amount is quite uncertain, and it requires a judgment or verdict to render it certain. In this case the debtor knew precisely what would satisfy his covenant. He had it in his power to protect himself by delivering the requisite number of bushels of wheat at the place and on the day designated. The plaintiff’s damages are not unliquidated
There is a class of cases like that of Dox v. Dey, (3 Wend. 356,) which was an action of assumpsit brought for the breach of a contract for the sale and delivery of a certain specified quantity of wheat. The circuit judge instructed the jury that the plaintiffs were entitled to the value of the wheat' on the day of the demand, and that they might allow interest by way of damages, if they thought proper to do so. The court by Marcy, J. say, “ the judge did not direct the jury to allow interest on the sum which they should find the wheat to be worth, but in ascertaining the plaintiff’s damages he observed they might, if they thought proper from the nature of the transaction, include interest as.an item in making up the amount of damages. There was not, in this remark, any direction contrary to law.” The defendant’s counsel insist that the principle of these cases should be applied to the one before us, and that if interest is allowable at all upon this contract, it is so only in the discretion of the jury, and that it should have been submitted to them. So Spencer, senator, says, in Reid v. The Rensselaer Glass Factory, “ interest is allowed also in another class of cases by juries, as a measure of damages under the advice of the court, but in their absolute discretion ; which class must be carefully distinguished from that where it is allowed by the courts, as the judgment of law.” In torts it is left to the discretion of the jury to allow interest on the value of the property by way of damages. (Beals v. Gurnsey, 8 John. Rep. 446; Baker v. Wheeler, 8 Wend. 505.) In actions of assumpsit on implied or uncertain contracts, and indeed on specific contracts, as in Dox v. Dey, it may be so left to the discretion of the jury. But where the contract is like the lease under consideration, for the delivery of a precise quantity of wheat on a specific day and place, the difference between leaving it to the discretion of a jury to find interest from" the day fixed for delivery by way of damages, and directing them that interest is due upon the value of the wheat from such day as the judgment of law, wil
I have come to the conclusion that the case of Lush v. Druse was decided deliberately and after full consideration; that it lays down a rule reasonable, just and equitable in itself, and proper for general application to similar cases; that if the rule which it promulgated were less just and reasonable than it is, still, as the authority of that case has been suffered to remain unquestioned for so many years; as many may be presumed to have reposed upon the principle it sanctioned, it would be unjust and unwise now to disturb it. I am therefore of the opinion that a new trial should be denied.
Dissenting Opinion
In this case the quantity of wheat and its quality and description, with the time and place of delivery, were all specified in the lease, so that in these respects the contract was specific and certain. It was equally so as to the fowls and the service. What the lessee was bound to do annually, in return for the use of the laud demised, was therefore certain in specie, although wholly uncertain in value. This would depend upon the worth of wheat, hens and labor, on the first of February, in each year, and which, like the price of all vendible commodities, would be more or less variable and uncertain. This lease was made in 1813, in the midst of the late war with Great Britain, when produce and labor commanded very high prices. Since that time, prices have often fallen greatly below what they then were, as they may occasionly, have advanced even- beyond war prices. Such changes furnish no reason why the just value of the property and labor, for which the lessee or his assignee might be in default in any year, should not, in such case, be recovered against him; but they show the fluctuating nature of the demand, and the .entire
In an anonymous case, (1 John. 315,) being an action on a policy of insurance, to recover for a partial loss on a cargo, a
Upon the precise point now before the court, we have the case of The Executors of Van Rensselaer v. The Executors of Platner., decided by this court in 1806. (1 John. 276.) That was, as this is, an action of covenant for rent arrear, payable in wheat The. question was whether interest was recoverable on the arrears of such rent. “ Per Curiam. We are of opinion, that as a general rule, interest is not recoverable in such a case, and nothing appears, in this instance, to hinder the application of that rule.” But in Clark v. Barlow, (4 John. 183,) which was also an action of covenant for non-payment of rent, “the only question submitted to the court was, whether the
Let us now turn to the case of Lush v. Druse, (4 Wend. 313,) to which allusion has already been made as an'exception to a series of authorities otherwise uniform and harmonious. That case was decided in 1830. It was an action of covenant on a durable lease, like the one in this case, and which reserved an annual rent of eighteen bushels and one-fourth of a bushel of good merchantable wheat, to be delivered in the city of Albany, on the first day of February, in each year. The plaintiff sought to recover for several years’ rent, alleged to be in arrear. On the trial the value of wheat for the several years in question was proved, and the plaintiff claimed interest on the amount. On this question no opinion was expressed by the judge at the circuit, but finally, a verdict was taken for the value of the wheat, deducting a certain payment, “subject to the opinion of this court; the interest to be added if the plaintiff was entitled to recover interest.” There were various other questions, but which need not be stated. According to what appears in the report of the case, the counsel for the plaintiff made but a single remark on the question of interest, which was that “ the defendant was in fault, and therefore chargeable with it.” For this he referred to, 5 Cowen, 144; id. 615. The counsel for the defendant does not appear to have said any thing on the point. Chief Justice Savage delivered the opinion of the court, and on this question he said: “ I can see no possible objection to the allowance of interest. The value of the wheat became due on the first of February, in each year, in consequence of the default of the defendant in not delivering
■ If this is to be understood as the statement of a legal principle, it cannot, as I think, be maintained. It may be, where the sum is liquidated and fixed, that, after default in payment, interest is as much the right of the creditor as the principal itself, but it never was held that such was the rule where unliquidated damages remained unsatisfied. The cases all stand opposed to such a principle; and we should, as it seems to me, do great injustice to Chief Justice Savage, by understanding what he said as the annunciation of a legal principle. The verdict had been taken subject to the opinion of the court on a case containing the evidence given on the trial, and which, so far as relates to matters of fact, substituted the court for the jury. This practice, although condemned as confounding the powers of the court and jury, and as “ subversive of the fundamental principles of our jurisprudence,” (Hubbard v. Chenango Bank, 8 Cowen, 100,) was continued until a late revision of the rules when it was abolished, it being declared by rule that no verdict should thereafter “be taken subject to the opinion of the supreme court, except where the parties shall agree on the facts proved, or where such facts shall be found by the jury.” (Rule of 1845, No. 36. Banyer v. Ellice, 1 Hill, 24.) When the case of Lush v. Druse was decided, the old practice, however, was in vogue, and the verdict being subject to the opinion of the court on the evidence set out in the case, the court were required to decide upon it as the jury should have done, and as they might have allowed interest by way of damages for the breach of covenant, the court might do the same. What was said by Chief Justice Savage, I understand as expressive of what might, very properly, be held and done by a jury in such a case. They might allow interest as well as the value of the wheat, as only a just equivalent for the damages sustained by the breach of covenant; and as this would be proper for the jury to do, it was equally so for the court in the exercise of a similar power.
On the argument of Lush v. Druse, the case of Spencer v. Tilden was referred to by the counsel for the plaintiff, as an authority for the allowance of interest, and our attention has been called to the same case as in point on the present occasion. Spencer y. Tilden was brought on a written agreement to pay and deliyer three hundred and sixty dollars, or twelve good cows and twelve calves, at a time and place specified in the agreement. Two defences were set up—first usury, and secondly performance. On the trial a verdict was taken for the value of the cows and calyes, with interest, in all two hundred and eight dollars, no questiop as to interest bejng made at any stage of the .cause. The .court held the three hundred and sixty dollars ,to be in the nature of a penalty, and there
The opinion of Spencér, senator, in the case of the Renss. Glass Factory v. Reid, (5 Cowen, 615,) was also referred to by counsel in the case of Lush v. Druse. The question in the first of these cases was, as to' a right to interest on divers sums of money advanced by an agent, and not as to interest on unliquidated damages. That case contains a very full, and, as I think, a very just, exposition of the law of interest on loans and advances of money. But there was no claim in that case for interest on unliquidated damages, nor was any thing said in deciding it which gives countenance to the idea that the law adjudges interest to be payable on such damages. The opinion of Senator Spencer was probably referred to for the position of the counsel, that the defendant, being in fault, was chargeable with interest. At the page cited, the opinion, which is throughout lucid and cogent, adverts to several adjudged cases, and then follows this remark : “ All these cases allow interest where there has been fraud, injustice or delinquency.” But the cases thus referred to were for certain sums of money, and not one of them, like this, for unliquidated damages ; the remark therefore is quite inapplicable here. Every one who omits to perform his engagements, is in fault or delinquent ; as.much so where the damages are uncertain, as where they are liquidated. To say that all who are delinquent must pay interest, is saying that it must be paid in' every case where an action on contract is sustained, a point never yet held in any case.
I have assumed, throughout, that the jury in ascertaining what damages had arisen from the breach of covenant complained of in this case, might compute and allow interest on the value of the wheat, hens and service, for which the defendant was delinquent. There are many cases arising on contract in which this may be done, and the present, in my opin
I think there should be a new trial in this case.
New trial denied.