THE LIBRARY OF THE UNIVERSITY OF CALIFORNIA LOS ANGELES SCHOOL OF LAW •^ A SELECTION LEADING CASES ON YARIOrS ERAXCHES OF THE LAW: MUth ilotcs. JOH^ WILLIAM SMITH, OF THE INNER TEMPLE, ESQUIRE, BARRISTKR-AT-LAW. THE THIRD AND FOURTH EDITIONS Br JAMES SHAW WILLES axd HENRY SINGER KEATING, OF THE INNER TEMPLE, ESQUIRES, BARRISTERS-AT-LAW (AFTERWARDS JUDGES OF HER MAJESTY'S COURT OF COMMON PLEAS AND MEMBERS OF HER MAJESTY'S PRI\'Y COUNCIL). THE FIFTH AND SIXTH EDITIONS BY FRED. PHILIP :MAUDE axd THOS. EDWARD CHITTY, OF THE INNER TEMPLE, ESQUIRES, BAIUtlSTERS-AT-LAW. THE SEVENTH AXD EIGHTH KIHTIONS AND THE NINTH EDITION BY RICHARD HENN COLLINS, M.A., FELLOW OF DOWNING COLLEGE, CAMBRIDGE, OF THE MIDDLE TEMPLE, ESQUIRE, ONE OF HER MAJESTY'S COUNSEL; AND ROP.KKT GEORGE ARBUTHXoT. yi.X.. NINTH AMERICAN, FROM THE NINTH ENGLISH EDITION, WITH ELABORATE AMERICAN NOTES TO DATE BY THE DISTINGUISHED AUTHORS NAMED IN THE PUBLISHERS' PREFACE. " It is ever good to rt-ly upon tin- l)ook iit liirjro; for many timos. Compendia sunt dispendia, iiiid Mvlius est pet en- /on fes ijiiuni sectari rirulos." — 1 Inst. UOO b. IN THREE VOLUMES.— VOL. IL BOSTON: CHARLES H. EDSON & CO., PUBLISHERS. 1888. Copyrifiht, 788S, By Charles 11. Edson 6c Co. r Typography by J. S. Gushing & Co. Prhsswork by Berwick & Smith, Boston. KEECH /'. HALL. MICH. — I'd GEO. 3. [reported dougl., 21.] A mortgagee may recover in ejectment, ivithout giving notice to quit against a tenant ivlio claims under a lease from the mort- gagor, granted after the mortgage without the privity of the mortgagee. \_See noiv Conveyancing Act, 1881, 44 ^ 45 Vict. c. 41, s. 18.] Ejectment tried at Guildhall, before Buller, Justice, and verdict for the plaintiff. After a motion for a new trial or leave to enter up judgment of nonsuit, and cause shown, the court took time to consider ; and now Lord Mansfield stated the case, and gave the opinion of the court as follows : hord 3Iansfi eld — This is an ejectment brought for a ware- house in the City, by a mortgagee, against a lessee under a lease in writing for seven years, made after the date of the mortgage, by the mortgagor, who had continued in possession. The lease was at a rack-rent. The mortgagee had no notice of the lease, nor the lessee any notice of the mortgage. The de- fendant offered to attorn to the mortgagee before the ejectment was brought. The plaintiff is willing to suffer the defendant to redeem. There was no notice to quit: so that, though the written lease should be bad, if the lessee is to be considered as tenant from year to year, the plaintiff must fail in this action. The question, therefore, for the court to decide is, whether by the agreement understood between mortgagors and mortgagees, which is that the latter shall receive interest, ;uid the former keep possession, the mortgagee has given an im[)lied authority to the mortgagor to let from year to year at a rack-rent ; or Avhether he may not treat the defendant as a trespasser, dis- 823 bo/o I'D 824 KEECH V. HALL. seisor, and wrongdoer. No case has been cited where this question has been agitated, much less decided. The only case at all like the present, is one that was tried before me on the home circuit (^Belcher v. Collins) ; but there the mortgagee was privy to the lease, and afterwards by a knavish trick wanted to turn the tenant out. I do not wonder that such a case has not occurred before. Where the lease is not a beneficial lease, it is for the interest of the mortgagee to continue the tenant ; and where it is, the tenant may put himself in the place of the mortgagor, and either redeem himself, or get a friend to do it. The idea that the question may be more proper for a court of equity goes upon a mistake. It emphatically belongs to a court of law, in opposition to a court of equity ; for a lessee at a rack- rent is a purchaser for a valuable consideration, and in every case between purchasers for a valuable consideration a court of equity must follow, not lead the law. On full considei-ation we are all clearly of opinion, that there is no inference of fraud or consent against the mortgagee, to prevent him from consid- ering the lessee as a wrongdoer. It is rightly admitted that if the mortgagee had encouraged the tenant to lay out money he could not maintain this action (a) ; but here the question turns upon the agreement between the mortgagor and the mortgagee : when the mortgagor is left in possession, the true inference to be drawn is an agreement that he shall possess the premises at will in the strictest sense, and therefore no notice is ever given him to quit, and he is not even entitled to reap the crop, as other tenants at will are, because all is liable to the debt ; on payment of which the mortgagee's title ceases. The mortgagor has no power, express or implied, to let leases not subject to every circumstance of the mortgage. If, by implication, the mortgagor had such a power, it must go to a great extent to leases where a fine is taken on a renewal for lives. The tenant stands exactly in the situation of the mortgagor. The posses- sion of the mortgagor cannot be considered as holding out a false appearance. It does not induce a belief that there is no mortgage ; for it is the nature of the transaction that the mortgagor shall continue in possession. Whoever wants to be secure, when he takes a lease, should inquire after and examine the title-deeds. In practice, indeed (especially in the case of great estates), that is not often done, because the tenant relies (a) Vide Cowp. 473. KEECH V. HALL. 825 on the honour of his landlord ; but, whenever one of two inno- cent persons must be a loser, the rule is, qui jyrior est tempore potior est jure. If one must suffer it is he who has not used due diligence in looking into the title. It was said at the bar, tiiat if the plaintiff, in a case like this, can recover, he Avill also be entitled to the mesne profits from the tenants, in an action of trespass (a), which would be a manifest hardship and injus- tice, as the tenant would then pay the rent twice. I give no opinion on that point ; but there may be a distinction, for the mortgagor may be considered as receiving the rents in order to pay the interest, by an implied authority from the mortgagee, till he determine his will. As to the lessee's right to reap the crop which he may have sown previous to the determination of the will of the mortgagee, that point does not arise in this case, the ejectment being for a warehouse ; but, however that may be, it could be no bar to the mortgagee's recovering in ejectment. It would onl}' give the lessee a right of ingress and egress to take the crop ; as to which, with regard to tenants at will, the text of Littleton is clear. We are all clearly of opinion that the plaintiff is entitled to judgment (5). The Solicitor- G-eneral for the defendant. — Dimni7ig and Cow- per for the plaintiff. The rule discharged. The point decided in tliis case has been since frequently confirmed. See Doe V.Giles, 5 Ring. 421 ; Doe v. Maisey, 8 B. & C. 767 ; Thunder v. Belcher, 3 East, 449; Smartle v. Williams, 3 Lev. 387; 1 Salk. 245. ^Gibhs v. Cruickshank, L. R. 8 C. P. 454, 42 L. J. C. P. 273; Daws v. Telford, 1 App. Cas. 414, 45 L. J. Ex. 613. It is, however, of comparatively small importance since the passing of the Conveyancing Act, 1881, which, by s. 18, gives power to the mortgagor and mortgagee respectively, if in possession, to grant valid leases, subject, however, to certain qualifications and restrictions. That section is as follows : — («) [In Litchfield v. Ready, 5 Exch. White v. Hawkins, viz., not to sulTc-r 939, it was held that such action a lessee under a lease 2'"'ior to the would not lie; hut see Barnett v. Guil- mortgage to avail himself of such ford, 11 Exch. 19.] lease on an ejectment bj' the mortga- (h) When the question was argued gee, if he has had notice before the at the bar, Lord Mansfield said he action that the mortgagee did not in- entirely approved of what had been tend to turn him out of possession, done by Nares, Justice, upon the Ox- This doctrine is, however, long since ford Circuit, and afterwards con- overrulrd. See Roe v. Reade, 1 T. R. firmed by this court, in the case of 118; Doe v. Staple, 8 T. R. 684. 826 KEECH V. HALL. " 18 (1). A mortgagor of land Avhile in possession shall, as against every incumbrancer, have, by virtue of this Act, power to make from time to time any such lease of the mortgaged land, or any part thereof, as is in this section described and authorised. " (2.) A mortgagee of land while in possession shall, as against all prior incumbrancers, if any, and as against the mortgagor, have, by virtue of this Act, power to make from time to time any such lease as aforesaid. " (3.) The leases which this section authorises are : — " (i.) An agricultural or occupation lease for any term not exceeding twenty-one years ; and " (ii.) A building lease for any term not exceeding ninety-nine years. " (4.) Every person making a lease under this section may execute and do all assurances and things necessary or proper in that behalf. " (5.) Every such lease shall be made to take efl'ect in possession not later than twelve months after its date. " (6.) Every such lease shall receive the best rent that can reasonably be obtained, regard being had to the circumstances of the case, but without any fine l)eing taken. " (7.) Every such lease shall contain a covenant by the lessee for payment of the rent, and a condition of re-entry on the rent not being paid witliin a time therein specified, not exceeding thirty days. " (8.) A counterpart of every such lease shall be executed by the lessee and delivered to the lessor, of which execution and delivery the execution of the lease by the lessor shall, in favour of the lessee and all pei'sons deriving title under him, be sufficient evidence. " (9.) Every such building lease shall be made in consideration of the lessee, or some person by whose direction the lease is granted, having erected, or agreeing to erect within not more than five years from the date of the lease, buildings, new or additional, or having improved or repaired buildings, or agree- ing to improve or repair buildings within that time, or having executed, or agreeing to execute within tliat time, on the land leased, an improvement for or in connection with building purposes. " (10.) In any such building lease a peppercorn rent, or a nominal or other rent less than the rent ultimately payable, may be made payable for the first five years, or any less part of the term. " (11.) In case of a lease by the mortgagor, he shall, within one month after making the lease, deliver to the mortgagee, or, where there are more than one, to the mortgagee first in priority, a counterpart of the lease duly executed by the lessee ; but the lessee shall not be concerned to see that this provision is complied with. " (12.) A contract to make or accept a lease under this section may be enforced by or against every person on whom the lease, if granted, would be binding. " (13.) This section applies only if and as far as a contrary intention is not expressed by the mortgagor and mortgagee in the mortgage deed, or other- wise in writing, and shall have efl'ect subject to the terms of the mortgage deed or of any such writing, and to the provisions therein contained. " (14.) Nothing in this Act shall prevent the mortgage deed from reserving to or conferring on the mortgagor or the mortgagee, or both, any further or other powers of leasing or having reference to leasing; and any further or other powers so reserved or conferred shall be exercisable, as far as may be, as if they were conferred by this Act, and with all the like incidents, effects KEECH V. HALL. 827 and conveyances, unless a contrary intention is expressed in the mortgage deed. " (15.) Nothing in tliis Act shall be construed to enable a mortgagor or mortgagee to make a lease for any longer term or on any other conditions than such as could have been gi-anted or imposed by the mortgagor, with the concurrence of all the incumbrancers, if this Act had not been passed. " (16.) This section applies only in case of a mortgage made after the commencement of this Act; but the provisions thereof, or any of them, may, by agreement in writing made after the commencement of this Act, between mortgagor and mortgagee, be applied to a mortgage made before the com- mencement of this Act, so, nevertheless, that any such agreement shall not prejudicially a^ect any right or interest of any mortgagee not joining in or adopting the agreement. " (17.) The provisions of this section referring to a lease shall be construed to extend and apply, as far as circumstances admit, to any letting, and to an agreement, whether in writing or not, for leasing or letting." The doctrine in Keech v. Hall is, however, still binding in all cases of leases not falling within the provisions of the Conveyancing Act, 1881, and it has been thought desirable, notwithstanding the passing of that Act, to retain the note, dealing as it does to a great extent with the relations inter se of the mortgagor and mortgagee, irrespectively of the rights which may be created by leases granted to third persons. And first, apart from the Conveyancing Act, 1881], when once it has been proved that the mortgagee has recognised the tenant of the mortgagor as his tenant, he cannot treat hifn as a tort feasor, nor if he elect to treat him as a tort feasor, can he maintain any demand against him in which he is charged as a tenant; for Birch v. Wright, 1 T. R. 378, clearly establishes that a man cannot be treated at once both as a tenant and a trespasser. [The cases of Doe d. Rogers v. Cadwallader, 2 B. & Ad. 473, and Doe d. Whittaker v. Hales, 7 Bing. 322, are important on tjie question of what amounts to such a recognition.] In Doe dem. Rogers v. Cadwallader [which was an action of ejectment by mortgagee against tenant of mortgagor], the wife of the lessor of the plain- tiff had become mortgagee of the premises in question, by a deed, dated the 7th of May, 1828. Interest was payable on the 25th of December every year; and had been paid up to the 25th of December, 1830; the demise was on the 1st of July, 1830, and the defendant, who had been let into possession after the mortgage by the mortgagor, contended that the action was not maintainable because it was not competent to a mortgagee to treat the mort- gagor or his tenants as trespassers, at any time during which their lawful possession had l)een recognised by him ; and that, by receiving the interest of the mortgage-money, on the 25th of December, 1830, he had acknowledged that up to that time the defendant was in lawful possession of the premises ; but the court gave judgment for the plaintiff on the ground that the receipt of interest was no recognition of the defendant as a person in lawful pos- session of the premises. However, in Doe d. Whittaker v. Hales, Austin, having mortgaged the premises to the lessor of the plaintiff, let them to the defendant. The mort- gagee directed his attorney to apply to Austin for the interest; and the attorney in April, 1830, applied to the defendant for rent to pay the interest, threatened to distrain if it were not paid, and received it three or four times. The learned judge at the trial, and the court in Banco afterwards, held that 328 KEECH V. HALL. these facts amounted to a recognition that the defendant Avas lawfully in possession in April, 1830, and consecpiently that he could not be treated as having been a trespasser on December 25, 1829, the day on which the demise was laid. See Doe d. Bowman v. Lewis, 13 M. & W. 241. Lord Tenterden, delivering judgment in Doe v. Cadwallader, took some pains to distinguish that case from Doe d. Whitlaker v. Hales. Upon the wdiole the question whether the mortgagee have I'ecognised the tenant of the mortgagor as his tenant appears to be a question more of fad than of law, and probably would be left to the consideration of the jury, providing there were any evidence fit to be submitted to them. And the decision in Doe v. Cadwallader seems to establish that mere receipt of inter- est by the mortgagee, coupled with no other fact wdiatever, would not l)e evidence fit to be left to the jury on the question of recognition. The ruling in Doe v. Cadwallader, it must, however, be observed, seems to have been thought too severe by Lord Denraan in Evans v. Elliot, 9 A. & E. 342. It seems, however, from a prior part of his lordship's judgment, that the three other judges Avere disposed to adhere to the opinion expressed in Doe v. Cadwallader. [Next, there is a class of cases in which it has been held that the mort- gage, though not specifically creating a tenancy, operated as a redemise to the mortgagor, thus giving the latter a fresh power to demise, irrespectively of the provisions of the Conveyancing Act, 1881. Thus it] often happens that there is an express covenant in a mortgage deed, that the mortgagor shall remain in possession of the premises until default in payment of the mortgage-money at a certain period. Up to that jferiod he seems to hohl an interest in the nature of a term of years ; and, of course, during that period he has a right to the possession, and could not be legally ejected ; Wilkinson V. Hall, 3 Bing. N. C. 508 ; the stipulation that he should remain in possession operating as a redemise. When that fixed period has expired, he becomes, if the money have not been paid, tenant at sufferance to the mortgagee. " We must look," said Best, C. J., delivering judgment In such a case, "at the covenant he has made with the mortgagee, to ascertain what his real situ- ation is. We find, from the deed between the parties, that possession of his estate is secured to him until a certain day, and that, if he does not redeem his pledge by that day, the mortgagee has a right to enter and take posses- sion. From that day the possession belongs to the mortgagee ; and there is no more occasion for his requiring that the estate should be delivered up to him before he brings an ejectment, than for a lessor to demand possession on the determination of a term. The situation of a lessee on the expiration of a term, and a mortgagor who has covenanted that the mortgagee may enter on a certain day, is precisely the same." 5 Bing. 427. And, attending to the distinction between an agreement to be collected from the mortgage deed that the mortgagor shall remain in possession for a time certain, Avhich operates as a redemise, and an agreement that the mort- gagee may enter upon, or the mortgagor hold until, a default, the time of which is uncertain, which agreement cannot operate as a redemise for viant of certaintu (Com. Dig. Estate, G. 12), the view taken in Wilkinson v. Hall seems not to be at A'ariance Avith the more recent decisions in Doe d. Pioii- lance v. Lightfoot, 8 M. & W. 5G4, and Doe d. Parsley v. Day, 2 Q. B. 147, though extended too widely in Doe d. Lister \. Goldioin, 2 Q. B. 143. As for Wheeler v. Montefiore, 2 Q. B. 133, explained by the court in Doe d. Parsley v. Day, 2 Q. B. \'n), it has no bearing upon the question; because the KEECH V. HALL. 829 mortgage, in that case, was for a term of _years, the mortgagee liad never eiiteretl, and tlic action was of trespass: wliicli form of action cannot be maintained by a lessee for years befoi'e entry; altliougli lie may bring an ejectment, because in that proceeding the riyht to the possession only is in question. [See Harrison v. Blackhurn, 34 L. J. C. V. lOD. In Turner v. Cameron's Coalhrook Steam Coal Co., ~> Exch. 932, 20 L. J. Exch. 71, the mortgage does not appear to have been for years or a less es- tate, and the court was of opinion that the mortgagee could not maintain ti'espass before entry, because he had not entered; and see per Parke, B., Litchfield v. Beady, 5 Ex. 919, 945; Com. Dig. Trespass, B. 3. In Litchfield V. Ready it was held that he could not after entry maintain trespass for mesne profits before entry, against the mortgagor's tenant after mortgage. It is to be observed, however, that Parke, B., in giving judgment in the case of Litchfield v. Ready, proceeds upon the ground that the doctrine of rela- tion back of possession to title is confined entirely to the case of disseisor and disseisee, a view which the same learned judge modified in the later case of Burnett v. Guilford, 12 Ex. 19, where the docti'ine was applied in the case of entrj' bj"^ the lieir on an abator. In the case of Anderson v. Ratcliffe, E. B. & E. 80G-819, the doctrine was applied, in the case of entry, bj' the assignee of a term. But in the judgment of the Court of Exchequer Chamber the case of mortgagor and mortgagee Avould seem to be put upon a distinct and special footing. See S. C. 29 L. J. Q. B. 128.] In Doe d. Lyster v. Goldwin, 2 Q. B. 143, a conveyance was made of the legal estate, by Lj'ster and his wife, (in whose right he enjoyed the property,) in order " to secure an annuity upon which money had been advanced by the Globe Insurance Oftice ; " and it was in trust, amongst other things, to permit and suffer Mrs. Lyster to receive the rents until default made for sixty days in payment of the annuity ; and, no default appearing, it was held that the legal estate remained by way of redemise in Lyster. But, to cite the obser- vation of the court in a subsequent judgment, {Doe d. Parsley v. Day, 2 Q. B. 155,) "it may be questionable whether sufficient attention was paid in that case to the point as to the cA-tainty of the time : at all events it was not decided upon any ground that such certainty was immaterial." And it may be fnrtlier observed, upon Doe d. Lyster v. Goldvnn, that the nature of the transaction does not appear very distinctly, and the conveyance seems not unlikely to have been simply a demise or assignment of a term to secure the annuity, and so to have admitted of considerations different from those whicli govern the case of an ordinary mortgage.' (See Jacob v. Milford, 1 J. & W. G29 ; Doe d. Butler v. Lord Kensington, 8 Q. B. 429.) In Doe d. Roylance v. Lightfoot, 8 M. & W. 553, the proviso was, that if the mortgagor should well and truly pay the principal money and interest on the 25th of March then next, the mortgagee should reconvey, and there were covenants that after default the mortgagee might enter, and also after default for further assurance. The Court of Exchequer, referring to the passage in Shepherd's Touchstone presently to be stated in full, and observing that it was not brought to the attention of the court in Wilkinson v. Hall, held that the estate was in the mortgagee from the time of the execution of the mortgage, and that the statute of limitations began to run at that time. In Doe d. Parsley v. Day, 2 Q. B. 147, freeholds and leaseholds were con- veyed in mortgage with a proviso that upon payment of 550Z. and interest on the 5th of October then next the conveyance should be void, but in case of non-payment it was to be lawful for the mortgagee, after a month's notice in 830 KEECH \. HALL. writing demanding payment, to enter into possession, and to mal'), in which last case a custom for a lord of a manor " to have connnon of pasture in all the lands of his ten- ants for life or years," which had heen pleaded in justification of a trespass in the land of a tenant for years, was held to be void and against law, for that such a privilege is contrary to the lease, being part of the thing demised, and different from a prescription to have a heriot from every lessee for life, be- cause that is only collateral (c). A case relied on by Homjh- ton^ Justice, in White v. Sayer ((?), in whicli he said the court had decided that a custom for lessees for years to have half a year after the end of their term, to remove their utensils, Avas void, as being against law ; Startup v. Dodderidye (e), where the court refused to grant a prohibition, on the suggestion of a modus " to pay, uj)on request, at the rate of two shillings for every pound of the improved yearly rent or value of the land," because the yearly rent or value was variable and uncertain : bailor, qui tarn v. Scott (/), wheie a custom having been found by a jury, " that every housekeeper in the parish of Wakefield having a child born there, should, at the time when the mother was churched, or at the usual time after her delivery when she should be churched, pay tenpence to the vicar," the court, on a motion in arrest of judgment, determined that the custom was void, being, 1. Uncertain, because the usual time for women to be churched was not alleged (^). 2. Unreasonable, because it obliged the husband to pay if the woman was not churched at all, or if she removed from the parish, or died before the time of churching : Carleton v. Brightwell (A), where the defendant, on a bill of tithes, set up a modus that " the inhabitants of such a tenement, with the land usually enjoyed therewith, should pay such a sum for tithe corn," and (a) T. 13 Jac. ; 1 Hob. 132. That {b) B. R. M. 10 Jac. 1 Palm. 211. case, if at all applicable, seems to (c) Cites 21 H. 7, 1-1. me to malve for tlie plaintiff. It is {d) B. R. M. 10 Jac. 1 Palm. 211. curious in one respect, viz., tliat the (e) E. 4 Ann.; 2 Ld. Raym. 1158; question was brouglit on in an action 2 Salk. 657; 1 Mod. GO. of debt on a common bond condi- (/) E. 2. G. 2; 2 Ld. Raym. 1258. tioned for the payment of 201 to the {g) In tliat case the custom, as plaintiff if a certain crop of corn did suggested, did not refer to tlie usage of riglit belong to him ; or, in otlier of the parish, words, if the question of law was in (/i) Cauc. T. 1728 ; 2 P. W. 462. his favour. WIGGLESWORTH V. DALLISON. 847 it was held by the Master of the rolls to be void for uncer- tainty ; Harrison v. Sharp (a), where a modus that, '" when any of the inclosed pastures in a certain vill were ploughed and sown with corn or grain of any kind, or laid for meadow, and mown and made into hay, tithes in kind were paid to the rector, but when eaten and depastured, then the occupier paid to the vicar one shilling in the pound of the yearly rent or value thereof, and no more, upon some day after Michaelmas yearly," was held void, on the authority of /Startup v. Dod- deridge ; Wilkes v. Broadbent (5), where the Court of Common Pleas, and afterwards, on error brought the Court of King's Bench, held a custom found by verdict, " for the lord of a manor, or the tenants of his collieries who had sunk pits, to throw the earth and coals on tlie land near such pits, such land being customary tenement and part of the manor, there to continue, and to lay and continue wood there for the neces- sary use of the pits, and to take coals so laid, away in carts, and to burn and make into cinders coals laid there, at their pleasure," to be void, because, among other reasons, the word near was too vague and uncertain ; Oland v. Burdwiek (c), where a feme copyholder durante viduitafe, having sowed the land, and then married, it was determined that the lord should have the corn, upon the principle, that when the interest in land is determined by the act of the party, he shall not have the crop : an anonymous case in Moore (f?), where it was held, that a custom " that lessee for years should hold for half a year over his term," was bad ; Boe, lessee of Bree v. Lees (e), where, in an ejectment to recover a farm of about sixty acres, of which fifty-one were inclosed, and nine lay in certain open fields, a special case was reserved, which stated a custom, " that when a tenant took a farm, in which there was any open field, more or less for an uncertain term, it was considered as a hold- ing from three years to three years ; " and though the court decided against the custom on other grounds, yet, by their reasoning, it clearly appeared that they thought it void for uncertainty, because the quantity of open ground was not as- certained, and one rood might determine the tenure of 100 (rt) T. 1724; Bmib. 174. (d) H. 3 Ed. 6; Moore 8, pi. 27. (b) B. R. E. 18 G. 2, 2 Str. 1224. (e) C. B. M. 18 G. 4. Since re- (c) B. R. H. 37 EI. Cro. Eliz. 460 ; ported in 2 Blackst. 1171. 5 Co. IIG. 848 WIGGLESWORTH V. DALLISON. acres of land inclosed. Besides the above authorities (a), the case before Yates, Justice, was much relied on. It Avas ad- mitted, that, in cases where the usual crop of the country is such, that it cannot coni^ to maturity in one year, a right to hold over after the end of the term, in a parole demise, may be raised by implication ; as where saffron is cultivated, in Carrtr hridgeshire ; liquorice, near Pontefraet ; or tobacco, which for- merly used to be planted in Lincolnshire ; but it was contended, that, in such cases, a lease by deed would preclude such impli- cation, as the parties must be supposed to have described all the circumstances relative to the intended tenure in the writ- ten instrument. Such a custom as that set up, in the present case, could not, it was said, be of sufficient antiquity with respect to leases by deed, as, in the time of ' Richard I., and long afterwards, tenants had no permanent interest in tlieir lands ; or, if there could be such a custom, the plaintiff's lease could not be within it, because the custom must have ai)plied to the 1st of May, old style, and this lease was made and com- menced after the alteration was introduced by 24 Geo. 2, c. 23 (6). The Court took time to consider ; and this day, Lord Mans- field delivered their opinion as folloAVS : Lord Mansfield. — We have thought of this case, and we are all of opinion, that the custom is good. It is just, for he who sows ought to reap, and it is for the benefit and encouragement of agriculture. It is, indeed, against the general rule of law concerning emblements, which are not allowed to tenants who know when their term is to cease, because it is held to be their fault or folly to have sown, when they knew their interest would expire before they could reap (c). But the custom of a particular place may rectify what otherwise would be impru- dence or folly. The lease being by deed does not vary the case. The custom does not alter or contradict the agreement (a) 4 Co. 51 b; 1 Roll. Abr. 5G3, of it, as from the errors in the for- pl. 9, et Co. Litt. 55, were also cited mer method of computation the nom- for the general principles concerning inal day was continually deviating, by customs and emblements. degrees, from the natural day. (6) The new style commenced the (c) [See 14 & 15 Vict. c. 25, s. 1, 1st of January, 1753. But if this ar- giving the tenant in lieu of erable- gument were admitted in its full ex- ments a right to occupy until the end tent, no custom could exist where a of the current year of his tenancy.] certain day of the month made part WIGGLESWORTH V. DALLISON". 349 in the lease ; it only superadds a right wliich is consequential to the taking, as a heiiot may be due by custom, although not mentioned in the grant or lease (a). TJie rule discharged (F). Few questions are of more frequent practical occurrence tlian tliose which involve the adniissil)ility of parol evidence of custom and usa,rt//ison, afterwards atlh-nn-d f>n a writ of error, the tenant was allowed an away-going crop, tliough there was a formal lease under seal. There the lease was entirely silent on the subject of such a right; and Lord Mansfield said the custom did not alter or contra- dict the lease, but only added something to it. "The question subsequently came under the consideration of the Court of King's Bench in Senior v. ArmUaijc, reported in Mr. Holt's .V/.s/ Prius Cases, p. 197. In that case, which was an action by a tenant agahist his landlord for a compensation for seed and labour, under the denomination of tenant- right, Mr. Justice Bayley, on its appearing that there was a written agree- ment between the parties, nonsuited the plaintiff. The court afterwards set aside that nonsuit, and held, as appears by a manuscript note of that learned Judge, that though there was a written contract between landlord and tenant, the custom of the country would still be binding, if not inconsistent with the terms of such written contract; and that, not only all common obliga- tions, but those imposed by custom, were in full force where the contract did not vary them. Mr. Holt appears to have stated the case too strongly when he said that the court held the custom to be oi)erative, ' unless the agreement in express terms excluded it;' and pr()l)ably he has not been (juite accurate in attributing a similar opinion to tlie Lord Ciiief Baron Thompson, who presided on the second trial. It would appear that the court held that the custom operated, unless it could be collected from the instrument, either expressly or impliedly, that the parties did not mean to be governed by it. " On the second trial, the Lord Chief Baron Thompson held that the cus- tom prevailed; although the written instrument contained an express stipula- tion that all the manure made on the farm should be spent on it, or left at the end of the tenancy, without any compensation being paid. Such a stipu- lation certainly does not exclude by implication the tenant's right to receive a compensation for seed and labour. " The next reported case on this subject is Wehh v. Plummer, 2 B. & A. 746, in which there was a lease of down lands, with a covenant to spend all the produce on the premises, and to fold a flock of sheep upon the usual part of the farm; and also, in the last year of the term, to carry out the manure on parts of the fallowed farm pointed out by the lessor, the lessor paying for the fallowing land and carrying out the dung, but nothing for the dung itself, and paying for grass on the ground and threshing the corn. The claim was for a customary allowance for foldarjc (a mode of manuring the ground) ; but the court held, as there was an express provision for some payment, on quitting, for the things covenanted to be done, and an omission of foldage, the customary obligation to pay for the latter was excluded. No doubt could exist on that; the language in the lease was equivalent to a stipulation that the lessor should pay for the things mentioned, and no more. " The question then is, whether from the terms of the lease now under consideration, it can be collected that the parties meant to exclude customary allowance for seed and labour." In the case from which the above is extracted, viz., Hiitton v. Warren, 1 M. & W. 466, a custom by which the tenant, cultivating according to the course of good husbandry, was entitled, on quitting, to receive a reasonable allow- ance in respect of seed and labour bestowed on the arable land in the last WIGGLESWOPvTH V. DALLISON. 851 year of his tenancy, and was bonnrl to leave the manure for the landlord, if he -would purchase it, was held not to be excluded by a stipulation in the lease that he would consume three-fourths of the hay and straw on the farm, and spread the manure arising therefrom, and leave such of it as should not be so spread on the land, on receiving a reasonable price for it. From the above luminous judgment of Baron Parke it may be collected, that evidence of custom or usage will be received to annex incidents to written contracts on matters witli respect to which they are silent. 1st. In contracts between landlord and tenant. 2nd. In commercial contracts. 3rd. In contracts in other transactions of life, in which known usages have been established and prevailed. But that such evidence is only receivable when the incident which it is sought to import into the contract is consistent with the terms of the written instrument. If inconsistent, the evidence is not receivable, and this incon- sistencj'^ maj'^ be evinced, — 1st. Bj"^ the express terms of the written instrument. 2nd. By implication therefrom. [See the above rules cited with approval by Blackburn, J., in Myers v. Sari, 3 E. & E. 306.] With respect to the first class of cases in which the evidence has been received, viz., that of contracts between landlord and tenant, that is so thoroughly discussed in Hntton v. Warren, part of the judgment in which is above set out, and in WiggJesvorth v. DalUson, the principal case, that it seems unnecessary to say more on tliat head of the subject. See Holding v. Pigott, 7 Bing. 465; Boberts v. Barker, 1 C. & M. 803; Hughes v. Gordon, 1 Bligh. 287; Clinam v. Cooke, 2 Sch. & Lef. 22; White v. Sayer, Palm. 211; Furley v. Wood, 1 Esp. 198; Doe v. Benson, 4 B. & A. 588. "Where there is a custom to pay for fallows, &c., and no incoming tenant, there is an implied contract on the part of the landlord to pay according to the custom, Faviell v. Gaskoin, 7 Exch. 273. [In Muncey v. Dennis, 1 H. & N. 216, a custom of the country binding the incoming tenant to pay the outgoing tenant for straw left on the farm, was held not to be excluded by a provision in the lease to the outgoing tenant that all straw should during the term be consumed, and the manure used, on the premises. In Tucker v. Linger, 8 App. Cas. 508 ; 52 L. J. Ch. 941, a custom for a tenant to sell flints turned up on the surface of the land and removed in the course of good husbandry, was held a reasona- ble custom, and one not inconsistent with the tei'ms of the lease, which pi'o- vided that "the lessor reserved, inter alia, all mines and minerals, sand, quarries of stone, brick-earth, and gravel-pits, with liberty to enter to dig, take, convert, and carry away the same, doing no unnecessarj' damage." A custom not of the countr\% but prevalent between the owner and tenants of a particular landed estate, is not binding on a tenant who becomes such with- out notice of its existence: Wo7nei'sley v. Dally, 26 L. J. Exch. 219. As to the evidence of conti'act between the outgoing and incoming tenant to pay _ for tillages at a valuation, and the right of the latter to pay the amount of such valuation to the landlord for rent due from the outgoing tenant, see Stafford v. Gardner, L. R. 7 C. P. 242. A custom making the incoming tenant alone liable to the outgoing tenant, and exempting the landlord from liability, though proved to exist in fact, Avas held bad in law as unreasonable. Brad- burn V. Foley, 3 C. P. D. 129, 47 L. J. C. P. 331. That a six months' notice to quit must bj^ custom be from feast day to feast day irrespective of the num- ber of days intervening, see Morgan v. Davies, 3 C. P. D. 260.] g52 WIGGLESWORTH V. DALLISON. With respect to contracts commercial, it has been long established that evidence of a usaxje of trade applicable to tlie contract, and whicli the parties making it knew, or may be reasonably presumed to have known, is achnissi- ble for the purpose of importing terma into the contract respecting which the vpritten instrument is silent. [An objection has been raised that to admit evidence of a usage in the case of a contract required by the 17th section of the Statute of Frauds to be in writing would be to contravene that statute by introducing into the contract a term not included in the written memorandum of it. But the point was dis- posed of in Ilumfrey v. Dale, E. B. & E. 1004, and see Wilson v. Hurt, 7 Taunt. 295. It was laid down in foniier editions of these notes that] the words " nsarje of trade " are to be understood as referring to a particular usage to be estab- lished by evidence, and perfectly distinct from that general custom of mer- chants, which is the universal established law of the land, which is to be collected from decisions, legal principles, and analogies, not from evidence in pais, and the knowledge of which resides in the breasts of the judges. See Vallejo v. Wheeler, Lofft. 631 ; Eclie v. E. I. Company, 1 Wm. Black, 299, 2 Burr. 121G; [Brandao v. Barnett, 3 C. B. 519, 530; Siise v. Pompe, 8 C. B. N. S. 538; Crouch v. CrMit Fonder, L. R. 8 C. P. 374, 42 L. J. Q. B. 183;] sed vide Haille v. Smith, 1 B. & P. 503, in which evidence of the general cus- tom of merchants was received; [and the remarks of Cockburn, C. J., in delivering the judgment of the Exchecjuer Chaml)er in Goodicin v. lioharts, L. R. 10 Ex. at pp. 34(), 356, 44 L. J. Ex. 57, 157.] This distinction, indeed, between tlie general custom of merchants, which is part of the law of the realm, and the particular usages of certain particu- lar businesses, was not, it seems, so clearly marked in former times as it is now: thus we find Buller, Justice, saying, 2 T. R. p. 73, that "within the last thirty years (his lordship spoke in 1787) the commercial law of this country has taken a very different turn from what it did before. Before that period we find that, in courts of law, all the evidence in mercantile cases was thrown together; they were left generally to a jury, and produced no estab- lished principle. From that time we all know the great study has been to find some certain general principles which shall be known to all mankind ; not only to rule the particular case then under consideration, but to serve as a guide for the future." [The subject was, however, after full consideration, thus dealt with by Cockburn, C. J., in delivering the judgment of the Court of Exchequer Chamber in Goodvnn v. Robarts, L. R. 10 Ex. at p. 346, 44 L. J. Ex. 162. "It is true," says his lordship, *' that the law mei'chant is some- times spoken of as a fixed body of law, forming part of the common law, and, as it were, coeval with it. But, as a matter of legal history, this view is altogether incorrect. The law merchant thus spoken of with reference to bills of exchange and other negotiable securities, though forming part of the general body of the lex mercatorin, is of comparatively recent origin. It is neither more nor less than the usages of merchants and traders in the difler- ent departments of trade, ratified by the decisions of courts of law, wiiich, upon such usages being proved before them, have adopted them as settled law, with a view to the interests of trade and the public convenience, the court proceeding herein on the well-known pi'inciple of law that, with refer- ence to transactions in the different departments of trade, courts of law, in giving effect to the contracts and dealings of the parties, will assume that the latter have dealt with one another on the footing of any custom or usage WIGGLESWOPvTH V. DALLISON. 853 prevailing generally in the particular department. By this process what before was usage, only unsanctioned by legal decision, has become engrafted upon or incorporated into the common law, and may thus be said to form part of it." On appeal, the last cited judgment was affirmed in the House of Lords, 1 App. Cas. 47G, though the meaning of the phrase, the " law mer- chant," was not spcciallj' adverted to in the opinions then delivered by the noble loi'ds. It must not be taken that when a usage has once been proved as a matter of fact, it is to be in all subsequent cases judicially noticed as a matter of law. See Southioell v. Bowditch, in C. A. 1 C. P. D. 374, 45 L. J. C. P. 374, 630; " but," says Lord Justice Mellish, in Ex parte Poicell, 1 Ch. D. 50G, " there is no doubt that a mercantile custom may be so frequently proved in courts of common law, that the courts will take judicial notice of it, and it becomes part of the law merchant." And accordingly in Craiccour v. Salter, 18 Ch. D. 53, and Ex parte Turquand, 14 Q. B. D. G3G, 54 L. J. Q. B. 242, the C. A. took judicial notice of the custom of hotel keepers to hire fur- niture so as to exclude the operation of the reputed ownership clause in the Bankruptcy Act. And see also the observations of Brett, L. J., Lohre v. AitchUon, 3 Q. B. D., at p. 562, as to the meaning attached by often proved custom to various clauses in a Lloyd's policy. At what peiMod or by what process the transformation takes place it is not easy precisely to determine. In Alexander v. Vanderzee, L. R. 7 C. P. 530, followed in Ashford v. Bedford, L. R. 9 C. P. 20, 43 L. J. C. P. 57, a question was left to the jury as to the mercantile meaning of " For shipment in June and (or) July" apart from any usage. See the former case commented upon in Bulges v. Shaml, 2 App. Cas. 455, 46 L. J. Q. B. (H. L.) 561. See also Birch v. Depeyster, 4 Camp. 385.] With regard to particular commercial usages, evidence of them is admissible either to ingraft terras into the contract, or to explain its terms. [In the first of these two classes come the] cases concerning the time for which the underwriters' liability in respect of the goods shall continue after the arrival of the ship. Noble v. Kennaicay, Dougl. 510, and see the observa- tions on this case in Ougier v. Jennings, 1 Camp. 503, n. ; Moon v. Gtiardians of Witney Union, 3 Binn. N. C. 817. See further Bottomley v. Forbes, 5 Bing. N. C. 123; Vallance v. Deicar, 1 Camp. 403, et notas ; Cochran v. Retbiiry, 3 Esp. 121; Birch v. Depeyster, 1 Stark. 210; 4 Camp. 385; Don- aldson V. Forster, Abb. on Shipp. part 3, cap. 1 ; Baker v. Payne, 1 Ves. jun. 459; Raitt v. Mitchell, 4 Camp. 146; Lethulier's Case, 2 Salk. 443 ; Bowman V. Horsey, 2 M. & Rob. 85 ; [Allan v. Sundius, 1 H. & C. 123. And as to evidence of a usage not to pay general average on deck cargo, see Miller v. Titherington, 6 H. & N. 278 ; nor for damage caused by water used to extinguish a fire, Stewart v. West India and Pacific Steamship Co., L. R. 8 Q. B. 88, 362, a usage which since this decision has, it is believed, ceased to obtain ; to pay freight according to the measurement at the port of loading: Buckle v. Knoop, L. R. 2 Ex. 125, 36 L. J. Ex. 49; for general steamships unloading in the London Docks to unload their cargoes on the quay: Marzelti v. Smith, 1 Cab. & El. 6. See also as to the various rules which have been imported into the contract by a policy of marine insurance, Lohre v. Aitchison, 3 Q. B. D. 558; Knight v. Cuteswnrth, 1 Cab. & El. 48.] In Broion v. Byrne, 3 E. & B. 703, a case very elaborately argued at the bar, a bill of lading which made the goods deliverable at Liverpool to order or assigns, " he or they paying freight for the said goods five-eighths of a penny per pound, with 5 per cent primage and average accustomed," was held not to exclude the operation of a custom in the trade at Liverpool, by which three 854 WIGGLESWORTH V. DALLISON. months' discount was deducted from I)iU of hiding freii;lits of goods coming from, amongst otliers, tlie port of sliipment. In tlie niarginid note, tlie court are said to liave held tliat tiiis custom controlled the bill of lading; perliaps it would be better to liave said that ft was not inconsistent with it. [See per Lord Campbell in Hall v. Janson, 4 E. & B. 510; and C'uthbert v. Cumming, 10 Exch. 809; aflirmed in 11 Exch. 405. See also Falknerv. Earle, 32 L. J. Q. B. 124, where Brown v. B>jrne was followed. Evidence has been held admissible of a custom in the iron trade that a manufacturer contracting to supply iron plates must supply them of his own manufacture: see Johnson v. liai/Hon, 7 Q. B. D. 438, 50 L. J. Q. B. 753. In Merchant Bctnldng Co. v. Pha'nix Bessimer Steel Co., 5 Ch. D. 205, 40 L. J. Ch. D. 418, a custom was upheld whereby, in the iron trade, where warrants were given stating on the face of them that they were deliveraljle to the purchasers or their assigns, by indorsement thereon, it was understood that they were to be free from any vendor's lien for unpaid pui-chasc-money, that they passed from hand to hand by indorsement, and conveyed to the holder a title to the goods represented by them. In Field v. Lelean, Exch. Cham. G II. & N. G17, 30 L. J. Exch. 108, evidence of a usage amongst brokers that on the sales of mining shares the seller is not bound to deliver without contemporaneous payment, was held admissible to show that the defendant was not entitled to have the shares which he had bought from the plaintiff delivered to him before payment, although by the bought and sold notes payment of the price was to be made, lialf in two, half in four months, and nothing was there said as to the time of delivery. This case is a strong one, but it can be questioned in Dora. Proc. only. Upon the question whether it overrules Spartali v. Benecke, 10 C. B. 212, see the judgment of "Williams, J., in Field v. Lelean. See also Godls v. Rose, 17 C. B. 229.] And as to evidence of a usage to pay an agent. Hutch v. Carrington, 5 C. & P. 471 ; for a factor to sell in his own name, Johnstone v. Ushorne, 11 A. & E. 449; [for a broker employed to buy to make himself personally responsible for the price, Cropper v. Cook, L. R. 3 C. P. 194 ; for a J)roker employed to purchase to become a seller in the transaction without the knowledge of his employer, Robinson v. MoUett, L. R. 7 II. L. 802, 44 L. J. C. P. 302 ; or to buy without making a binding contract of purchase on his employer's behalf, Ih. ; as to an introducing broker's rights to subsequent commissions, Allan v. Sun- dins, 1 H. & C. 123; Gibson v. Crick, lb. 142. In Raines v. Fifing, L. II. 1 Ex. 329, 35 L. J. Ex. 194, it was held, that the presumption which would have arisen of an insurance bi-oker's authority to underwrite generalhj for the defendant at Liverpool, was rebutted by the custom proved to exist at Liverpool, by which an assurance broker's authority to underwrite is always, or nearly always, limited to a certain sum. And, therefore, where the defendant's broker had taken a risk in excess of his authoi'ity, the defendant was held not liable as principal on the contract although the plaintiff, the assured, had not been aware that the broker had exceeded his limit. In Hum/re]! v. Dale, 7 E. & B. 266, in error, E. B. & E. 1004, it should seem that not merely a term but a parttj, was on oral evidence of a custom added to a contract in writing. The action was against Dale, Morgan, & Co., brokers, for not accepting ten tons of oil alleged in the declaration to have been sold to them by the plaintiff, and it was held to be maintainable, first by the Q. B. and afterwards in C. S., Martin, B., Willes, J., and Channell, B., dissenting. These were the facts: The plaintiff had employed T. & M., WIGGLESWOETH Y. DALLISON. 855 brokers, to sell the oil for him, and one Schenk employed the defendants to Jjxiy it. The brokers met, and the sale was effected, but the only written documents which could be produced as evidence of it were, first, a sale note of the oil, signed by tlie defendants, which commenced thus, " Sold this day for Jlessrs. T. & M. to our 'principals " and ended with tlie signature, *' Dale, Morgan, & Co., brokers," and " a quarter per cent, brokerage to D., M., & Co. ; " secondly, a sale note signed by T. & M., " brokers," and which commenced thus: "Sold to Dale, Morffan, cC Co., for account of Mr. Humfrey" (the plaintiff), and ended with the clause, " quarter per cent, brokerage to D., M., & Co., half to us." The first of these notes was sent by the defendants to T. & ]\r., the second by T. & M. to the plaintiff. There was evidence of usage of the particular trade that whenever a broker buys or sells witliout disclosing his principal, he is himself personall3- liable to be looked to as buyer or seller, and that it was in accordance with the usual practice in such cases, that T. & i\I. liad not sent the defendants a note of the contract. The defendants did not disclose 4heir principal till an unreasonable time after the contract made, nor until after tender of the oil and after he had become insolvent. The court of Q. B. held the evidence of usage to be admissiljle. They considered tliat b3' necessary implication the defendants had in the first note said that they had houfjht for their principals, and though the}^ said they had sold for T. & M. the plaintiff had shown, as he miglit, that T. & M. were only his agents. The court then proceeded to sa,v that " the plaintiff did not seek, by the evidence of usage, to contradict what the tenor of the note primarily imported, namely, that this was a contract which the defendants made as lirokers. The evidence indeed is based on this : the usage can have no opera- tion except on the assumption of their having so acted, and of there having been a contract made with their principal. But the plaintiff, by the evidence, seeks to show that according to the usage of the trade, and as those con- cerned in the trade'understand the words used, they import something more ; namely, that if the buying broker did not disclose the name of his principal it might become a contract with him if the seller pleased. Supposing this incident had been expressed on the face of the note, there would have been no objection to it, as affecting the validity of the contract; for the effect of it would only have been that the sale might be treated bj' the vendor as a sale to the broker, unless he disclosed the name of his principal; if he did that, it remained a sale to the principal, assuming of course, the broker's authority to bind him." The court admitted that in one sense the evidence varied the contract. " In a certain sense every material incident which is added to a written conti'act varies it, makes it different from what it appeared to be, and so far is incon- sistent with it. If by the side of the written contract icithout, you write the same contract icilh the added incident, the two would seem to import different obligations and be different contracts. The truth is, that the principle on which the evidence is admissible is that the parties have not set down on paper the whole of their contract in all its terras, but those onhj tchich were •necessary to be determined in the particular case by specific agreement, and whicli of course might vary infinitely, leaving to implication and tacit under- standing all those general and varying incidents which i uniform usage would annex, and according to which they must in reason be understood to contract, unless they expressly exclude them." It is perhaps to be regretted that this judgment was not taken up to the House of Lords. But it has been constantlj' acted upon, and seems now to 856 WIGGLESWORTH V. DALLISON. be firmly established, though the iisage must, iu each case, be proved, South- well V. Boioditrh, 1 C. P. Y>. 374, 45 L. J. C. P. 374, 030. Fleet V. Murtnn, L. R. 7 Q. B. 120; 41 L. J. Q. B. 49, was a very simihir case to Ilnnifreij \. Dale. See also Imperial Bank v. London and St. Kmlt. Docks Co., 5 Ch. D. 195, 40 L. J. Cli. 3:55, and Bacmeister v. Fenton, Lcvij and Co., 1 Cab. &E1. 121. That of Hutchinson v. Tatham, L. R. 8 C. P. 482, 42 L. J. C. P. 200, seems a still stronger one. There the defendant, acting as agent for one Lyons with due authority to do so, effected a charter-party, which was expressed in the body of it to be made between the plaintifl" who was a shipowner, and the defendant as "agent to merchants." The defendant signed "as agent to merchants." The court admitting that but for the custom the defendant would not have been personally liable on the charter, held on the authority of the two last cited cases tiiat evidence was admissible of a usage to make him so liable if he did not disclose his principal's name within a rcasonal)le time. In Wildy v. Stephenson, 1 Cab. & Kl. 3, it was endeavoured to prove a cu.s- tom on the London Stock Exchange that a broker was personally lial)le to his employer on a contract for the sale of shares where the name of tlie principal was not disclosed, but the jury were unable to agree as to the exist- ence of such a custom. A variety of questions have been raised of late years, giving rise to no small diversity of judicial opinion, as to how far members of the Stock Exchange can avail themselves of its usages to relieve themselves of liability upon contracts made there. In Grissell v. Bristoice, L. R. 4 C. P. 30, 38 L. J. C. P. 10, the Court of Exchequer Chamber, reversing the decision of the Court of Common Pleas, upheld a custom of the Stock Exchange whereby a stock jobber who had purchased sliares from one of the pul)lic through a stock broker on the Stock Exchange, was relieved from liability to take the shares and indemnify the vendor against calls if he gave the name and address of a nominee able and willing to take the .shares to whom they were to be transferred, and such nominee was not objected to within ten days after the name was given. A similar decision was given by a court of equity : Coles v. Bristov-e, L. R. 4 Ch. 3, 38 L. J. Ch. 81. And the like was held to be the case where the names, thougii given bond fide by the jobber, were those merely of men of straw put forward to shield the real purcliaser : Maxted v. Paine, l»fo. 2, L. R. Ex. 132, 40 L. J. Ex. 57, diss. Cleasby, B., and Lush, J. A con- tract, it would seem, then arises l^etween the vendor and the nominee, by which the latter is bound to indemnify the former against calls in respect of the shares so sold : Boioring v. Shej^herd, L. R. 6 Q. B. 309, 40 L. J. Q. B. 129 ; Mckalls V. ^ferry, L. R. 7 H. L. 530, 733, 45 L. J. Ch. 575 : but see per Black- burn, J., in Maxted v. Paine, No. 2, nbi sjip. It may be observed that both in Grissell v. Bristowe, and in Bowring v. Shepherd the transfers had in fact been accepted and the price of the shares had been paid by the transferees' brokers though the transfers were not executed by the transferees. The vendor has also (at any rate in equity) a right to be indemnified by the real purchaser, who has through his broker supplied the man of straw to the job- ber, and through him to the vendor as transferee. Castellan v. Ilohson, L. R. 10 Eq. 47, 39 L. J. Ch. 490. The jobber, however, is not discharged by the custom where the name given Is of one who has not authorised the use of it. Maxted v. Paine, No. 1, L. R. 4 Ex. 81, 38 L. J. Ex. 4i ; or is under disability to contract — as an infant, Mckalls v. Merry, ubi sup. The second subdivision above-named of cases in which evidence of com- "WIGGLESAVORTH Y. DALLISON. g57 mercial usages is receivable, is wliere it is admitted to explain the tenns of a contract,] as was done in Udhe v. Walters, 3 Camp. IG, by showing that the Gulf of Finland, though not so treated by geographers, is considered by mercantile men part of the Baltic; and in Hutchinson v. Boivker, 5 M. & W. 535, wliere it was proved that good barley and Jine barley signified in mercan- tile usage different things. See further Bohertson v. Clarke, 1 Bing. 445; Moxon V. Atkins, 3 Camp. 200; Cochran v. Rcthery, 3 Esp. 121 ; Chaurand v. Anfjerstrin, Tcake, Gl ; Bold v. Bayner, 1 M. & W. 44G; Bowell v. Horton, 2 Bing. N. C. GGS. And as to evidence, that " sold 18 pockets Kent hops at 100s." means in the hop trade 100s. per cwt., Spicer v. Cooper, 1 Q. B. 424; that " in turn to deliver."' in a charter-party to Algiers means at a particular spot in the port for a particular purpose, Bohertson v. Jackson, 2 C. B. 412; [(as to the term "to load in regular turn," see Hudson v. Clementson, 18 C. B. 213; Lawson V. Burness, 1 H. & C. 396; Leideman v. Schxiltze, 14 C. B. 38; Kin(j v. Hinde, 12 L. K. Ir. 113) ; of the meaning of " Liverpool " in a charter-party as a port of arrival, Norden Steam Co. v. Dempsey, 1 C. P. D. 654, 45 L. J. C. P. 764; of " no St. Lawrence" in a policy of in.surance, Birrell v. Dryer, 9 App. Cas. 345; of " running days" iu a charter-party, Neilsen v. Wail, IG Q. B. D. 67; that "bale" in the Gambler trade means a compressed package, weighing on the average two cwt., Gorrisen v. Perrin, 2 C. B. N. S. 681 ; that oil is " wet" if it contains any water, however little, Warde v. Stewart, I C. B. N. S. 88;] to show the meaning of the description "about" so many quarters in a delivery order, ^foore v. Campbell, 10 Exch. 323; [and " about" so many bar- rels in a charter-party, Alcock v. Leuw & Co., 1 Cab. & El. 98] ; to explain the sense in which the word " London" was employed, Mallan v. May, 13 M. & W. 511 ; [that a " full and complete" cargo of sugar and molasses means at Trinidad a cargo packed in the ordinary way there; Cuthbert v. Cumming, 10 Ex. 809, affirmed 11 Ex. 405; the meaning of " the next two months" in the iron trade, Bissell v. Beard, 28 L. T. N. S. 740. A question has sometimes been raised as to how far it is necessary in order to att'ect a person with the usage of a trade or market that he should be actually cognisant of it. It was said in a case before the judicial committee, Kirchner v. Venus, 12 Moore, P. C. 361, that when evidence of the usage of a particular place is admitted to add to or in any manner to affect the construction of a written contract, it is only on the ground that the parties ivho made the contract are both cognisant of the usage, and must be presumed to have made their agree- ment with reference to it, and that no such presumption can arise Avhen one of the parties is ignorant of it. And that is adopted in the marginal note as the statement of a general rule of law. It should seem, however, that the proposition must be restrained to subject matters like that before the court, namely, the condition of the holder for value of a negotiable instrument showing upon the face of it a clear right of the ordinary and usual kind unaflected by the custom ; and the subsequent part of the judgment dwelt upon the special circumstances as being important. In Kirchner v. Venus, the indorsees resident in Sydney, of bills of lading, made in Liverpool, for the carriage of goods from Liverpool by the ship " Countess of Elgin," to Sydney, were, in an action of trover by them against the master of the ship for having refused to deliver up the goods at Sydney unless paid freight, held not to be bound ])y an alleged custom in Liverpool, of which the plaintiffs were ignorant, that though by the terms of the bills the freight was payable 858 WIGGLESWOIITII V. DALLISON. in Liverpool at a certain time after sailing, still the ship-owner, if it was not paid, liad a lien for it at tl»e i)()rt of ilischarge. Sec some reniarlcs on tliis case in Buckle v. Knoop, L. U. 2 Ex. V*'>, pi:r Kelly, C. B. ; and see Ilathising V. Lainij, L. 11. 17 Eq. 02, -l.'i L. J. Ch. 233, and Norden Stram Co. v. Diinpsey, 1 C. r. D. 002 ; 45 L. J. C. P. 704, per Brett, J.] In Sutton V. Tatham, 10 A. & E. 27, it was laid down tliat a [lerson employ- ing a broker on the Stock Exchange, inipliedly gives him authority to act in accordance with the rules there established, though the principal l)e himself ignorant of them. And in BayJiffe v. Butterworth, 1 Exch. 425, Sutton v. Tatham Avas expressly approved of by Parke, B., and llolfe, B. ; and Alder- son, B., laid down the law generally, that " a person who deals in a particular market must be taken to deal accoriling to the custom of that market, and he who directs anotlier to make a contract at a particular place must be taken as intending that tlie contract may be made according to the usage of that place." And Parke, B., distinguished the cases of Gabnij v. Llnijd, 3 B. & C. 793, and Barthtt v. Pentlund, 10 B. & C. 760, in wiiich the usage of Lloyd's Coffee-house was held not to be binding on persons who were not shown to have been cognizant of, or to have assented to it, on the ground that in Ba>j- liffe v. Butterworth, the (luestion was as to the author itij which the broker received. [See, however, as to this distinction per Williams, J., in Sweetiny v. Pearce, 7 C. B. N. S. 482. In the latter case, allirmed 9 C. B. X. S. 534, 30 L. J. C. P. 10'.), tiie i)rinci- pal was held not liound by a usage of Lloyd's of which he was ignorant, but principally on the ground that Lloyd's is a mere private place of l)usiness and not a general market so as to come within the above rule. See per Bovill, C. J., Grissell v. Bristoice, L. R. 3 C. P. 127. But the court seem to have gone also upon the ground that the usage sought to be established would, if not known to the principal, be an unreasonable one, (see the judgment of Brara- well, B., in Cam. Scacc.,) following in this respect the decision in Scott v. Irving, 1 B. & Ad. 012, that a usage whicli would have the effect of making the broker and not the underwriter tlie delator of tiie assured for a loss on a policy of insurance, can only bind those who are acquainted with it. See also per Fry, J., Pearson v. Scott, 9 Ch. D. 198, 47 L. J. Ch. 725, where an alleged custom of the Stock Exchange was held bad, whereby it was con- tended that a broker employed by a solicitor whom he knew to be an agent could settle in account with such solicitor (otherwise than by payment) be- hind the back of the principal. As will be presently stated more fully a cus- tom if unreasonable is not binding ; and the knowledge of the person to be bound may be an important element in deciding whether a custom is reason- able or not. See per Bowen, L. J., in Perry v. Barnett, 15 Q. B. D. at p. 397. In Robmson v. MoUett in Dom. Proc, L. R. 7 H. L. 836, 838, Lord Chelms- ford, L. J., states the rule to be that " if a person employs a broker to transact for him upon a market with the usages of Avhich the principal is unacquainted, he gives authority to the broker to make contracts upon the footing of such usages, provided they are such as regulate the mode of per- forming the contracts, and do not change their intrinsic character." In that case his lordship "hesitated to say that the usage in question would not apply in the case of persons knowing of its existence, and employing a broker to act for them in the market where it prevailed. But the usage was of such a peculiar character, and so completely at variance with the relations between the parties, converting a broker employed to buy into a principal selling for himself, and thereby giving him an interest wholly opposed to his WIGGLESWORTH V. DALLTSON". 859 duty, that he thought no person who was ignorant of such an usage could be held to have agreed to submit to its condition, merely by employing the ser- vices of a broker to whom the usage was known to perform the ordinary and accustomed duties belonging to such employment." Subject to the above qualilication, and to the custom not being unreason- able or otherwise objectionable in point of law, the I'ule above cited and laid down in Sutton v. Tatham, and Bityliffe v. Battencorth, has been constantly adopted and followed. See Stewart y. Aherdein, 4 M. & W. 211; Taylor v. Stray, 2 C. B. N. S. 175; Stray v. Bussell, 1 E. & E. 888, 29 L. J. Q. B. 115; Greaves v. Leyrje, 2 H. & N. 216; Lloyd v. Gtiibert, 35 L. J. Q. B. per curiam; Grissell v. Bristowe, L. R. 4 C. P. 3G; 38 L. J. C. P. 10; Duncan v. Hill, L. R. 8 Ex. 242, 42 L. J. Ex. 179. In the latter case the plaintiffs, who wei-e stock brokers on the London Stock Exchange, had been employed by the defendant, a non-member, to carry over certain stocks and shares from one settling day to a later one. In the interval between the two days the plaintiffs became defaulters, whereupon, accox'ding to the rules of the Stock Exchange, their transactions were closed, and their accounts, including that of the defendant, were made up at the prices current on that day, without any communication with the defendant. It was held, in the Cam. Scacc, reversing the decision of the Court of Exchequer, that the defendant was not liable to indemnify the plaintiffs for the " difference " or loss caused by the closing of his account, which had been forced on by the rules of the Stock Exchange, inasmuch as this had been caused by the plaintiff's own default.] In Stev:art v. Canty, 8 M. & \V. 160, a rule of the Liverpool Stock Exchange was admitted in evidence between parties not members of it, upon a question what was a reasonable time for the completion of a sale of shares made at Liverpool through the agency of brokers. [To come to cases] not falling within the head of mercantile contracts, evidence has been received to show that by the custom of a particular dis- trict the words " 1000 rabbits" meant 1200 rabbits, Smith v. Wilson, 3 B. & Ad. 728 ; and see Clayton v. Gregson, 5 A. & E. 302. So in Reg. v. Stoke-iipon- Trent, 5 Q. B. 303, an agreement in writing " to serve B. from II Nov., 1815, to 11 Nov., 1817," at certain wages, " to lose no time on our own account, to do our work well, and behave ourselves in every respect as good servants," was considered capable of explanation by a usage in the particular trade for servants, under similar contracts, to have certain holidays and Sundays to themselves. See Phillips v. Lines, 4 CI. & Fin. 234. Also in Grant v. ^[ad- dox, 15 jNI. & W. 737, an agreement b}'^ the manager of a theatre to engage an actress for " three years, at a salary of 5Z., 6?., and 11. per week in those j'ears respectively," was explained by the usage of the theatrical profession to mean that the actress was to be paid only whilst the theatre was open for performance. [In Parker v. Ihhetson, 4 C. B. N. S. 346, a custom that the yearly hiring of a clerk is determinable by a month's notice at any time, was held not inconsistent with a prpvision in the agreement, that at the end of the year the employer, if satisfied with the amount of business done, would make an addition of 30/. to the stipulated salary.] So, again, in Evans v. Pratt, 3 M. & G. 759 ; 4 Scott, N. R. 370, S. C, in a memorandum as to a race, the run described was " four miles across a country," and evidence was admitted to show that in sporting parlance the meaning of those words is straight across over all obstructions without liberty to go through open gates. So if A. and B. were to agree for a lease, it would be implied fi-om custom that the lessor should prepare and the lessee pay for it. Grissell v. Robinson, 860 WIGGLESWOETH V. DALLISON. 3 Bing. N. C. 11. Although in general, upon a sale of property, the vendee who is to bear the expense of the conveyance ought to prepare it. Prire v. Williams, 1 M. & W. G; Poole v. IJill, G M. & W. 835; Stephens v. De Medina, 4 Q. B. 422. See, however, Doe cl. Clarke v. Stilxcell, 8 A. & E. 645. [As to the liability by usage of a man about to marry to pay his wife's solicitor for preparing her marriage settlement, see Helps v. Clapton, 17 C. B. X. S. 553, 34 L. J. C. P. 1. In The North Staffordshire Rail. Co. v. Peek, E. B. & E. 98G, the majority of the court held that the terms in a letter to carriers from their customer, " Please send the marl)les not insured," were to be read "according to the understanding of language between carriers and tlieir customers," and con- strued as a reciuest to carry the mari)les at the customer's rislv. But tliis decision turned upon the construction of a statute, and was reversed in the House of Lords, 10 H. of L. Ca. 473, 32 L. J. Q. 15. 241. As to a usage of trade to allow goods to remain witli hotel-keepers on hire, preventing such goods from being affected l)y the order and disposition sec- tion of the Bankruptcy Acts, see in re Blanshard, 8 Ch. D. GOl, and the cases therein cited ; Craiccour v. Salter, 18 Ch. D. 53; ex parte Brooks, 23 Ch. D. 261; ex parte Turquand, 14 Q. B. D. 636, 54 L. J. Q. B. 242. Whilst, however, as we have seen, evidence of custom has been very largely admitted, tliere are numerous cases in which such evidence is inad- missible, and tliese will now be dealt witli. Thus] the admissibility of evidence of custom to explain tlie meaning of a word used in any contract wluitever, is subject to tliis (pKUilication, ?'i.?., tliat if an act of parliament have given a definite meaning to any jiarticular Avord denoting weight, measure, or luunber, it must be understood to have been used with tliat meaning, and no evidence of custom will be admissil)le to attribute any other to it; per cunam in Smith v. Wilson, 31 B. & Ad. 728; see also Hockin v. Cooke, 4 T. R. 314; The Master of St. Cross v. Lord Howard de Walden, 6 T. R. 338; Wing v. Erie, Cro. Eliz. 2G7 ; Xohle v. Dnr- rell, 3 T. R. 271. In Doe v. Lea, 11 East, 312, it was held that a lease by deed of lands since the new style, to hold from the feast of St. Michael, must mean Xew Micliael- mas, and could not be shown by parol evidence to refer to Old Micliaelmas. In Farley v. Wood, 1 Esp. 198, Runn. Eject. 112, Lord Kenyon had, under similar circumstances, admitted parol evidence of the custom of tlie country to explain the meaning of tlie word Michaelmas : and tlie court, in Doe v. Lea, on hearing that case cited, asked whether the holding there was l»j deed, which it does not appear to have been; and to which it may be added, that it appears possible that it was not even in writing. In Doe V. Benson, 4 B. & A. 588, evidence of the custom of the country was held admissible for the purpose of showing that a letting by parol from Lady-day meant from Old Lady-day. The court referred to Furley v. Wood, and distinguished that case from Doe v. Lea, on the ground that the letting there was by deed, " whicli," said Holroyd, Justice, " is a solemn instrument; and therefore parol evidence was inadmissible to explain the expression Lady- Day there used, even supposing tliat it was equivocal." It is perhaps not easy to conceive a distinction, founded on principle, be- tween the admissibility of evidence to explain terms used in a deed, and terms used in a written contract not under seal : for though, wlien tlie terms of a deed are ascertained and understood, the doctrine of estoppel gives them a more conclusive effect than those of an unsealed instrument ; yet the WIGGLESWORTH V. DALLISON. 861 rule that parol evidence shall not be admitted to vary the written terras of a contract, seems to applj' as strongly to a contract without a seal as with one; while, on the other hand, it appears from the principal case of WUjylesworth V. DalUson, without going further, that in cases Avhere parol evidence is in other respects admissible, the fact that the instrument is under seal forms no insuperable obstacle to its reception. [See also Abbott v. Bates, 43 L. J. C. P. 150.] Nor does it seem necessary, in order to pi'eveat a contradiction between Due V. Lea and Doe v. Benson, and Furley v. Wood, to establish any such distinction between deeds and other written instruments ; for in Doe v. Ben- son, the letting seems not to have been in writing, so that the objection to the admission of parol evidence, founded upon the nature of a written in- strument, did not arise. In Furley v. Wood the letting was perhaps also by mere parol; and though the evidence was, it is true, oflered to explain the notice to quit, still it may be urged, that when the holding was once settled to commence from Old Michaelmas, the notice to quit, which probably con- tained the words, " at the expiration of your temn," or something ejusdem generis, must be held to have had express reference to, and to be explained by it. We must not therefore, it is submitted, too hastilj' infer that parol evidence of custom would be receivable to explain a word of time used in a lease in writing, but not under seal. [See, however, Rogers v. Hull Dock Co., 3-1 L. J. Ch. 165, where the evidence Avas admitted to explain such an agreement.] Doe V. Lea was acted upon by the Court of Common Pleas in Smith v. Walton, 8 Bing. 238, where the defendant avowed for rent payable " at 3Iar- tinmas to v:it, November 23rd;" the plaintiff pleaded non tenuit ; and a hold- ing from Old jVIartinmas having been proved, the court thought that the words after the videlicit must be rejected, as inconsistent with the term Martinmas, which they thought themselves bomid by statute to interpret November 11th; that no evidence was admissible to explain the record: and that there was, therefore, a fatal variance between it and the evidence; see Hockin v. Cooke, 4 T. R. 314; The Master of St. Cross v. Lord Hoicard de Wahlen, 6 T. P. 338; Kearney v. Jung, 2 B. & A. 301; Sproule v. Legge, 1 B. & C. 16. lllogg v. Berrington, 2 F. & F. 24G. Custom cannot alter or control the law. In ^^eyer v. Dresser, 16 C. B. N. S. 646 ; 33 L. J. C P. 289, which was an action for freight, the defendant sought by evidence of usage, alleged to be universal in the mercantile world, to establish a right to deduct from the amount of freight due for goods de- livered the value of certain other goods which ought to have been but were not delivered by the plaintifl", but the court held that "a universal usage which is not according to law cannot be set up to control the law." See also Goodwin V. liobarts, L. P. 10 Ex. 337, at p. 357, 44 L. J. Ex. 162; and the judgment of Blackburn, J., in Cronch v. Credit Fonder, L. R. 8 Q. B. 386, though the latter is to some extent qualified by that of the Exchequer Chamber in Goodwin v. liobarts, sup. In Crouch v. Credit Fonder, L. R. 8 ■ Q. B. 38G, the court point out that " where the incident" (sought to be intro- duced by usage into a contract) " is of such a nature that the parties are not themselves competent to introduce it by expi'ess stipulation," {e.g., to make a modern instrument negotiable), "no such incident can be annexed by the tacit stipulation arising from usage." See further, Seymour v. Bridge, 14 Q. B. D. 400, 54 L. J. Q. B. 347; Xeilson v. James, 9 Q. B. D. 546, 51 L. J. Q. B. 369; Perry v. Burnett, 15 Q. B. D. 388, 54 L. J. Q. B. 466; as to how far a 862 WIGGLESWORTH Y. DALLISON. custom of the Stock Exchange to disregard Leeman's Act, 30 & 31 Vict, c. 29, s. 1, can be held binding. Again,] evidence of usage, tliongh sometimes admissible to add to, or ex- plain, is never so to var}', or to contradict, either expressly or by implication, the terms of a Avritten instrument, Mayce v. Atkinson, 2 M. & W. 442; Adams V. Wordley, 1 M. & W. 374; Trueman v. Lodc.r, 11 A. & E. 589; [see Ilumfrey V. Dale, E. B. & E. 1004; Ihdchinson v. Tatham, L. R. 8 C. P. 482, 42 L. J. C. P. 260; Norden Steamship Co. v. Dempsey, 1 C. P. D. G54, 45 L. J. C. P. 7G4 ; The AJhambra, 6 P. D. 68, 50 L. J. P. D. 3G, though where a custom was admitted to exist and in a charter-party the words "as customary" were written, it was held that the custom must prevail, even though it contradicted a printed term in the charter-party, Scrutton v. Childs, 30 L. T. N. 8. 212.] Thus, in Yeates v. Pym, 6 Taunt. 445, in an action on a warranty of prime singed bacon, evidence was offered of a usage in the bacon trade, that a cer- tain latitude of deterioration called "average taint" was allowed to subsist before the bacon ceased to answer the descrii)tlon of prime bacon. This evidence was held inadmissible, first at Xisi Prius, by Heath, Justice, and afterwards by the Court of Common Pleas. In Blackett v. Royal Exchange Insiiraiice Company, 2 Tyrwh. 26G [2 Cr. & J. 244], which was an action on a policy upon " sliip, tfv,-., boat, and other furni- ture," evidence was offered that it was not tlie usage of underwriters to pay for boats slung on the davits on the larboard quarter; but was rejected at Nisi Prius, and the rejection confirmed by the Court of Exchcfjucr. " The objection," said Lord Lyndluirst, delivering judgment, " to the parol evidence is, that it was not to explain any ambiguous words in the policy, any words which might admit of doubt, nor to introduce matter upon which the policy was silent, but was at direct variance with the words of the policy, and in plain opposition to the language it used. Tluxt wliereas tlie policy imported to be upon the ship, furniture, and apparel generally, the usage is to say that it is not upon all tlie furniture, and apparel, Ijut upon part only, excluding the boat. Usage may be admissible to explain wliat is doubtful, it is never admissible to contradict what is plain." [This case, however, is mentioned with disapproval in Myers v. Sari, 30 L. J. Q. B. 9; and Ilumfrey v. Bale, supra.} Hall V. Janson, 4 E. &, B. 500, was an action upon a policy of marine insur- ance in the ordinary form, in which the interest was declared to be " on money advanced on account of freight," and the count alleged the interest to be in the shipowner, and that it became subject to a general average contribu- tion : a plea to that count stating a custom of London, where the policy was made, that insurance upon " money advanced on account of freight" should not be liable for a general average, was held bad, the custom alleged being inconsistent with the terms of the pollcj'. [(See, however. Miller v. Tither- ington, G H. & N. 278.) Where under an alleged usage of trade the underwriters on a marine policy covering loss by jettison sought to be relieved from payment of anything beyond the assured's own proportion of a loss of his goods which had been jettisoned under circumstances constituting a general average, leaving him to recover the residue from the other contributories, the court held the custom bad as contrary to the express agreement of the parties. Dickenson v. Jar- dine, L. R. 3 C. P. 639 ; 37 L. J. C. P. 321. See also Menzies v. Lightfoot, L. R. 11 Eq. 459. In Ilathesing v. Laing, L. R. 17 Eq. 92, 43 L. J. Ch. 233, a custom at Bombay, WIGGLESWORTH V. DALLISON. 863 making: it obligatory on ship captains to require tlie production of the mate's receipt before signing the bill of lading, was held bad by Bacon, V.-C, sed vide Schuster v. M'Krllar, 7 E. & B. 704. In several cases alleged customs of ports to talce delivery on terms incon- sistent with charter-parties have been held inadmissible : The Alhamhra, 6 P. D. GS ; Ilaijton v. Incin, 5 C. P. D. 130. In Suse V. Pompe, 8 C. B. N. S. 538, evidence was given of a usage in Lon- don tliat on non-payment by the acceptor of a bill of exchange drawn and indorsed in England, and payable abroad at a certain rate of exchange, the holder is entitled at his election to recover from the drawer either the re- exchange, or the amount which he paid for the bill. This evidence was held inadmissil)le, as contradicting the terms of the l)ill. In WiUnns v. Auers, 3 App. Cas. 133, 47 L. J. P. C. 1, grave doubts were expressed as to the validity of an alleged custom to allow a fixed percentage of 20 per cent, for exchange, re-exchange, and interest, in cases of certain dishonoured bills, but the point was not decided.] In Roberts v. Barker, i C. & M. 808, the question was whether a covenant in a lease whereby the tenant bound himself not, on quitting the land, to sell or take awaj' the manure, l)ut to leave it to be expended by the succeeding tenant, excluded the custom of the country, by which the outgoing tenant was bound to leave the manure, and was entitled to be paid for it. Tlie court held that it did. " It was contended," said Lord Lyndhurst, delivering judg- ment, "that the stipulation to leave the manure, was not inconsistent with the tenant's being paid for what was so left, and that the custom to pay for the manure miglit be engrafted on the engagement to leave it. But if the parties meant to be governed l)y the custom in this respect, there was no necessity for any stipulation, as, l>y the custom, the tenant would be bound to leave the manure, and would be entitled to be paid for it. It was alto- gether idle, therefore, to provide for one part of that which was sufficiently provided for by the custom, unless it was intended to exclude the other part." Accord. Clarke v. Royston, 13 M. & W. 752. See further, Reading v. Menham, 1 M. & Rob. 23G; IClarke v. Westrope, 18 C. B. 765]; Foster v. Mentor Life Assurance, 4 E. & 13. 48. [As to the meaning of the rule prohibiting a " contradiction " of the instru- ment, see some valuable remarks in the judgment of the Queen's Bench, in Ilumfreij v. Dale, 7 E. & B. 2GG, cited ante, p 58G, and p?r Lord Blackburn, in Tucker v. Linger, 8 App. Cas., at p. 511. In Fleet v. Murton, L. R. 7 Q. B. • 132, Blackburn, J., admitting his " difficulty in making out how the custom could make the Ijroker, who was, in fact, not contracting as purchaser, liable in the terms of the count in that case {Humfrerj v. Dale), which charged the defendant as a purchaser," suggests that the true view of the broker's lia])iUty under the custom is as a del credere agent, who guarantees a pur- chaser. See Ihmifrey v. Dale, discussed in Myers v. Sari, 30 L. J. Q. B. D, and by Jessel, M. R., in Soiithioell v. Bowditch, 45 L. J. C. P., at p. 3G1. In Hutchinson v. Tatham, L. R. 8 C. P. 482, in which evidence of usage . was admitted to charge the defendant as principal on a charter-party, which he had signed " as agent for the merchants" only, Brett, J., says " the cases have lately gone very far as to the admissibility of evidence of custom. It is clear, however, that no such evidence can be admitted to contradict the plain terms of a document. If evidence were tendered to prove a custom that the defendants should be liable as principals under all circumstances, that would contradict the document ; but it has been decided that though you 364 WIGGLESWORTH V. DALLISON. cannot contradict a written document by evidence of custom, you may add a terra not inconsistent witli any term of tlic contract. Wliat I appreliend, it is liere attempted to add, is not tliat tlie defendants would be lial)!e as princi- pals in the first instance, or under all circumstances, but that thouiih primH facie, and in most cases the brokers are mere agents, yet if they fail to dis- close the names of the principals within a reasonable time, they, the agents, may on the happening of this contingency be principals. This is not, I think, on the whole, inconsistent with the contract, and, therefore, with some doubt, I think the evidence was admissil)le." In Robinson v. Mollett, L. R. 5 C P. (UG, 7 Id. 84, 7 H. L. 802, 41 L. J. C. P. 65, 44 Id. 302, the plaintiff, a London tallow broker, sought to be indemnified by the defendant against the loss upon a contract for the purchase of tallow. The defendant had instructed the plaintiff to purchase fifty tons of tallow, as broker, for him. The plaintitt", acting for other l)uyers as well as the de- fendant, bought 1.50 tons. He forwarded a bought note to the defendant for the fifty tons, and to the vendors a sold note for the 150 tons, l)nt made no contract for the purchase of fifty tons on behalf of the defendant, on which the latter could come forward as principal, his iMtention being to appropriate fifty of the 150 tons to the defendant. The defenihuit refused to take delivery of the fifty tons, and the market having fallen the plaintiff was obliged, according to the usage of the trade, to pay the vendor the dif- ference of price : and this loss he sought to recover from the defendant. It was conceded that apart from usage there was no fulfilment of the de- fendant's order for fifty tons, and he could not be compelled to take the tallow or indemnify the plaintiff"; l)ut it was contended on l)eiialf of the latter, that he was justified by the usage of the London tallow market, though unknown to the defendant, in fnlfiUiug the order in this way. In the Common Pleas, Bovill, C. J., and Montague Smitli, J., were in favour of the usage. Willes and Keating, JJ., were of a contrary opinion, on the ground that " the authority of the brokers was to buy as brokers for their principal, not to sell to him. If the sale had been consummated in the course insisted upon by the brokers, the principal would have bought them of his own brokers and no one else. A custom of trade may control the mode of per- formance of a contract, but cannot control its intrinsic character. No usage unknown to the principal can justify a broker in converting himself into a principal seller." On appeal, the Court of Excheciner Chamber was equally divided, but the House of Lords were unanimous in holding the cus- tom to be invalid. See also Hamilton v. Young, 7 L. R. Ir. 28!), where a custom of the Stock Exchange authorising brokers entitled to sell their customers' securities to take them for themselves at the price of the day, was held unreasonable, and not binding on the customer, and McDevitt v. Connolly, 18 L. R. Ir. 207; also Barrow v. Duster, 13 Q. B. D. C35, where a custom in the hide trade to make the selling broker liable on a contract if he did not disclose the name of his principal within a reasonable time, was held inconsistent with a term in that contract l\v which disputes were to be re- ferred to the ar))itration of the selling broker. Terms not incidental to those expressed in the written contract cannot be annexed to it by oral evidence of a particular usage of trade. Thus a char- terer of a vessel for a voyage from here to China, the ship to be consigned to his agents there, free of commission, sought in vain upon the strength of a particular custom to add to the charter a tei'm that the agents in China should be entitled to procure charters for the return voyage from China and WIGGLESWORTH V. DALLISON. 865 be paid commission on tlie amount of freiglit mentioned in such cliarters, Philips V. Briard, 1 H. & N. 211. And see Gibson v. Crick, 1 H. & C. 142; Allan V. Snndius, Id. 123. In Ihitcheson v. Eaton, 13 Q. B. D. 8(11, tiie plaintiffs liad bought j!:oods of tlie defendants, who wex'e Iji-olvcrs, but on tlie face of tlie contract sold as principals. Tlie contract contained a clause pi-ovidina; tliat " any dispute arisiuii' on it was to be settled bj' arbitration." Tlie plaintiffs allei^ed tliat the goods wei'e of inferior qualit}', and tlie matter liaving been referred to arlji- tration, the arbitrators decided in favour of the defendants, on the ground of the existence of a custom relieving them from liability if, as was the fact, they disclosed the names of their principals. It was held by Brett, M. R., and Bowen, L. J., diss. Frj', L. J., that in finding tlie existence of tliis custom the arbitrators had exceeded their jurisdiction, whether the evidence of the custom was admissible or not. In this case a jury negatived the existence of the custom. A custom or usage, to be binding, at any rate on those not acquainted with it, must be reasonable, and tlie question of reasonableness is for the court. See Co. Litt..56 b., Lcnchardt v. Cooper, 3 Ding. N. C. 99, 5 Id. 128; Tyson v. Smith, 9 A. & E. 421 ; Gibson v. Crick, 1 H. & C. 142; Duncan v. Hill, L. R. 8 Ex. 242, 42 L. J. Ex. 179; Merry v. Xickalls, L. R. 7 Ch. 733, 7 H. L. 530, 41 L. J. Ch. 767, 45 Id. 575; Down v. City of London Brewery Co., L. R. 8 Eq. 155; Bradlmrn v. Foley, 3 C. P. D. 129, 47 L. J. C. P. 331; Pierson v. Scott, 9 Ch. D. 198, 47 L. J. Ch. 705 ; Perry v. Barnett, 15 Q. B. D. 388, 54 L. J. Q. B. 466. Where, however, in a bill of lading for goods shipped for London, it was provided that " average, if any, should be adjusted according to British custom," and a fire having broken out in the ship, water was poured in to extinguish it, and injured the goods mentioned in the bill of lading; it was held that though by British law such loss was a general average loss, still as the practice of British average adjusters was not to allow it as such, the parties must be ijound l)y that practice, "though it might be according to the best opinion vicious and unreasonable ; " Stewart v. West India Steamshixt Co., L. R. 8 Q. B. 88, 362.] When evidence of usage is admitted, evidence may be given in reply, tending to show such usage to be unreasonable. Bot- tomley v. Forbes, 5 Bing. N. C. 128. As to the admissibility and effect of previous usage between the parties to a contract, see Bourne v. Gatliffe, 11 CI. & Fin. 45; Fo7-d v. Yates, 2 M. & G. 549; 2 Scott, N. R. 645, S. C. : [Gumming v. Shand, 5 H. & N. 95, 29 L. J. Exch. 129. And as to the evidence of usage between other parties in tlie same trade to sliow the reasonableness of a contract, see Rowcliffe v. Leiyh, 6 Ch. D. 256, 46 L. J. Ch. 60. Parol evidence is inadmissible to show that the parties to a Avritten con- tract intended to exclude tlie incorporation into it of a customary incident. Fawkes v. Lamb, 31 L. J. Q. B. 98. As to what is sufficient evidence to establish a usage in a trade, see Mac- kenzie V. Dunlop, 3 Macq. II. of L. C. 22; Dent v. Nickalls, 22 W. R. 218; 4.bbott V. Bates, 43 L. J. C. P. 150. Ex parte Poicell, 1 Ch. D. 501 ; 44 L. J. Ch. 122, 311. In re Witt, 2 Ch. D. 489; Willans v. Ayers, 3 App. Cas. 133, 47 L. J. P. C. 1; Nelson v. Dahl, 12 Ch. D. 576; Wildy v. Stephenson, 1 Cab. & El. 3; Knight v. Cotesworth, 1 Cab. & El. 51, j)er Mathew, J. In Fleet v. Murton, L. R. 7 Q. B. 126 ; 41 L. J. Q. B. 49, evidence of custom in the London colonial market was held admissible in proof of a similar custom in the London fruit trade.] 866 WIGGLESWORTH V. DALLISON. Lord Eldon, in Aiiderson v. Pitcher, 2 B. & P. 1G8, expressed an opinion, that the practice of admitting usage to explain contracts ought not to be extended. See also the expression of the court in Trucman v. Lodcr, 11 A. & E. 589 ; and Johnstone v. Vshornc, Ibid. 549. [But the tendencj' of the courts appears now to be the other way. See Humfrey v. Dale, 7 E. & B. 266, E. B. & E. 1004; Hutchinson v. Tatham, L. R. 8 C. V. 482, 42 L. J. C. P. 260.] In Cross v. Eglin, 2 B. & Ad. 100, evidence had been ottered for tlie purpose of showing that the plaintifls, who had contracted for " 300 quarters (more or less) of foreifjn rye," could not, consistently with the usage of trade, be required to receive so large an access as 45 quarters over the 300: the ques- tion as to the admissibility of the evidence ultimately proved immaterial; but Littledale, J., said that where words were of such general import, he should feel much dUHculty in saying that evidence ought to be received to ascertain their meaning. See'ieiC('.s v. Marsliall, 8 Scott, N. R. 477; 7 M. & G. 729, per curiam. Moore v. Campbell, 10 Exch. 323 ; Bourne v. Seymour, 16 C. B. 337. [Carter v. Crick, 4 H. & N. 412. It is not, however, necessary that the phrase should be itself " ambiguous," /wr Blackburn, J., Myers v. Sari, 30 L. J. Q. B. 9; and see Alcock v. Leeuw, 1 Cab. & El. 98.] It is right to observe, that though in certain cases above pointed out evi- dence of usage is received to explain the terms used in a contract, yet, when the jury have decided on the meaning of those terms, it is not for thern but for the court to put a construction upon the entire contract or document. Hutchinson v. Boioker, 5 M. & W. 535, and the judgment in Neilson v. Har- ford, 8 M. & W. 806. IBoioes v. Shand, 2 App. Cas. 455, 462.] Usage and custom distinguished. — The decisions Oil the sub- ject of usages are numerous, but are not always reconcilable. " Each case must be determined by itself, aided by such light as may be derived from the judgments in other cases when the facts are analagous." Steel Works v. Dewey, 37 Ohio St. 242, 250. Though custom and usage arc often used as con- vertible terms ; yet, strictly speaking, custom is that length of usa(je which has become law. A general custom is the com- mon law itself, or a part of it. Walls v. Bailey, 49 N. Y. 464, 471. This distinction is also adverted to in Clark v. Baker, 11 Met. 186, 188; Morning Star ?'. Cunningham, 110 Ind. 328, 334; Jackson v. Railroad Co., 48 Me. 147 ; Wood v. Watson, 53 Id. 300. However, the terms are often used as synonymous. McMas- ters V. Penn. R. R., 69 Pa. St. 374 ; Carter v. Coal Co., 77 Id. 286 ; U. S. V. Buchanan, 8 How. 83, 102, 103. " A usage, which is also called a custom, though the latter word has also another signification, is a long and uniform prac- tice, applied to habits, modes and courses of dealing. It relates to modes of action, and does not comprehend the mere adop- tion of certain peculiar doctrines or rules of law." Chapman, J., WIGGLESWOETH V. DALLISON. 867 in Dickinson v. Gay, 7 Allen 35 ; Macy v. Whaling Ins. Co., 9 ]\Iet. 354, 302. At an early day courts expressed regret at the extension of this species of evidence ; notably Mr. Justice Story in Donnell r. ('olumbian Ins. Co., 2 Sum. 307, 377. See also Clark v. Baker, 11 Met. 180, 188 ; Susquehanna Fertilizer Co. V. White, 60 Md. 4-44, 455 ; Howe v. Mutual Ins. Co., 1 Sandf. 137, 149 ; Reals v. Terry, 2 Id. 127, 130 ; Coxe v. Heisley, 19 Pa. St. 243, 240. If usages contrary to the law " were to prevail they would be productive of misunderstanding, litiga- tion and frequent injustice, and would be deeply injurious to the interests of trade and commerce." Dickinson v. Gay, supra^ p. 37. Violation or interpretation of contract. — Usage will not be allowed to vary the terms of an express contract, embodying in clear and positive terms the intention of the parties. Hence it is not admissible to vary the terms of a policy of insurance. Grace v. American Ins. Co., 109 U. S. 278 ; Franklin Ins. Co. v. Sears, 21 Fed. Rep. 290 ; Castleman v. Southern Mut. Life Ins. Co., 14 Bush 197, 202 ; Sterling Organ Co. v. House, 25 W. Va. 04, 90. " There can be no doubt that, in the interpretation of written contracts, especially those of a mercantile character, evidence of usage is competent and frequentl}^ admitted, to explain the sense in which particular words or phrases are used, and to show that, as applied to the subject matter, the language of the instruments was understood by tho parties to have a special and peculiar meaning, differing from that which might ordinarily be attributed to it ; especially is this true in respect to policies of insurance. These contracts, like others of a mercantile nature, when first introduced as subjects of exposition in the courts of common law, contained many loose, undefined, and indeterminate words and phrases, which, if interpreted literall}', and without reference to the course of trade and the customs of merchants, would have increased the risk assumed by the insurers or abridged the indemnity secured to the assured, contrary to the real intentions of the parties. But it is obvions that the necessity which gave rise to the • liberal rules which have heretofore been adopted by courts of justice in admitting usages as explanatory of this class of cus- toms has in great measure ceased to exist. By a long course of judicial decisions, that which was originally indefinite and uncertain and difficult of application in the language of the 868 WIGGLESWOKTH V. DALLISON. instrument has become clear, determinate, and well settled. The consequence is, that of late 3'ears, the tendency of courts of law has been to ai)ply the rules regulating the competency of usages to explain and interpret the language of written instruments with great strictness, and to guard with increased vigilance against the danger of allowing extrinsic evidence to vary or control the Avords in wliich the parties have deliberately expressed their meaning. ^Many of the early authorities in England and in this country go much farther in the admission of testimony to prove usages for the purpose of aiding in the interpretation of Avritten contracts than woiild be deemed to l)e reasonable or safe at the present day. We are inclined to doubt whether in any case it would, now be deemed to be com- petent to offer evidence to show that a description of a voyage in a policy which is susceptible of a clear and definite exposi- tion in conformity to the interpretation of the Avords as estab- lished by adjudicated cases has another and different meaning by mercantile usage from that Avhich has been so recognized and settled." BigeloAV, C. J., in Seccomb v. Provincial Ins. Co., 10 Allen 305, 313 ; IMacomber v. rb)ward Ins. Co.. 7 Gray 257 ; Odiorne v. Ncav England Jns. Co., 101 Mass. 551 ; Bundiain v. Boston Ins. Co., 139 Mass. 399, 404 ; Beer v. Ins. Co., 39 Ohio St. 109, Ins. Co. V. Wright, 1 Wall. 456; Partridge v. Ins. Co., 15 Id. 373; Sperry v. Springfield Ins. Co., 26 Fed. Rep. 234; First Nat. Bank v. Lancashire Ins. Co., 62 Tex. 461 ; Franklin Ins. Co. V. Humphrey, 65 Ind. 549 ; Park v. Ins. Co., 48 Ga. 601. So evidence is inadmissible to vary any contract susceptible of a plain meaning. Hartje v. Collins, 46 Pa. St. 268 ; Ware v. Haywarcl Rubber Co., 3 Allen 84 ; Potter v. Smith, 103 j\Iass. 68; Davis v. Galloupe, 111 Id. 121 ; BroAvn v. Foster, 113 Id. 136 ; Stansbury v. Kephart, 54 la. 647 ; Smyth v. Ward, 46 Id. 339, 345; Randolph v. Halden, 44 Id. 327, 329; Phillips v. Starr, 26 Id. 349 ; Cash v. Hinkle, 36 Id. 623 ; Stebbins v. Brown, 65 Barb. 274 ; Polhemus v. Heiman, 50 Cal. 438 ; Rafert v. Scroggins, 40 Id. 195 ; Atkinson v. Allen, 29 Id. 375 ; Exchange Bank v. Cookman, 1 W. Va. 69 ; Cooke v. England, 27 Md. 14, 36 ; Groat v. Gile, 51 N. Y. 431 ; Collender v. Dins- more, 55 Id. 200, 208, 209 ; Whitmore v. Iron Co., 2 Allen 52 ; Schenck v. Griffin, 38 N. J. (LaAv) 462, 471 ; Stervard v. Scud- der, 4 Zab. 96; Bigelow v. Legg, 102 N. Y. 652; Union Trust Co. V. Whiton, 47 Id. 172, 180. WIGGLES WORTH V. D ALLISON. 869 To this rule that usage cannot vary the terms of a written contract, there is an exception in the case of Language which is ambiguous, and used in different senses, or in the case of general words used in a new, peculiar, or technical sense ; Brown v. Brown, 8 Met. 573, 576. It is sufficient in the case of a policy of insurance if the usage is known and generally acted on where the contracting parties reside ; Fulton Co. v. Milner, 23 Ala. 420, 428. Cases where evidence of such usage has been admitted are : Brown v. Brown, supra ; Coit v. Commer- cial Ins. Co., 7 Johns. 385. See Johns. Cas. 289; Astor v. Union Ins. Co., 7 Cowen 202 ; Macy v. Whaling Ins. Co., 9 Met. 354, 362 ; Winthrop v. Union Ins. Co., 2 Wash. C. C. 8 ; Hinten v. Loche, 5 Hill 437 ; Allegre v. Ins. Co., 6 Harr. & J. 408 ; Allegre v. Maryland Ins. Co., 2 Gill & J. 137 ; Lawrence V. jNIcGregor, 5 Ohio 309 ; Avery v. Stewart, 2 Conn. 69 ; see, also, Roberts v. Button, 14 Vt. 195, 203 ; see Eyre v. Marine Ins. Co., 5 W. & S. 116 ; S. C. 6 Whart. 247 ; Leach v. Beards- lee, 22 Conn. 404. It will be observed that most of the above are early cases, many of them involving the interpretation of policies of insurance. Upon this subject, therefore, the re- marks of Mr. Chief Justice Bigelow, in Seccomb v. Provincial Ins. Co., supra, that the necessity of " admitting usages as explanatory of this class of customs has in great measure ceased to exist," are pertinent. But even in earlier times there was often a disinclination to extend the doctrine. In Gordon V. Little, 8 S. & R. 533, Gibson, J., dissented from the opinion of the miijority of the court, that evidence of usage was ad- missible to explain the meaning of " inevitable dangers of the river " in a bill of lading, and that river boatmen assume a responsibility different from that of common carriers. And the dissenting ()[)inion is now law; Coxe v. Heisley, 19 Pa. St. 247. See Wetherill v. Neilson, Id. 453 ; Dean v. Swoop, 2 Binn. 72; Sam[)son v, Gazzam, 6 Port. 124. In Sleglit v. Rhinelander, 1 Johns. 192, evidence of the commercial mean- ing of " sea letter " was held inadmissible ; but see S. C. 2 Id. 531. Other early cases which hold that usage is inadmissible to control the clear meaning of a contract are : Macomber v. Parker, 13 Pick. 176, 182, holding that " it would only prove how other parties had considered similar contracts " ; Rice v. Codman, 1 Allen 377 ; Ripley v. Crooker, 47 Me. 370 ; Keener V. Bank of U. S., 2 Pa. St. 237 ; Cox v. Peterson, 30 Ala. 612 ; 870 WIGGLESWORTH V. DALLISON. Insurance Co. v. Wright, 1 Wall. 45G ; Barlow v. Lambert, 28 Ala. 710; Werner v. Footman, 54 Ga. 128; Whitmore v. Steamboat, 20 JNIo. 513 ; Chouteau v. Steamboat, Id. 519 ; Hursh V. North, 40 Pa. St. 243; The Sch. Reeside, 2 Sum. 568; Turney v. Wilson, 7 Yerg. 340; McArthur v. Sears, 21 Wend. 194 ; Knox v. Rives, 14 Ala. 249, 259 ; Aymar v. Astor, 6 Cow. 266 (Savage, C. J., dissenting) ; Rankin v. Am. Ins. Co., 1 Hall. 619 ; Lewis v. Thatcher, 15 Mass. 431 ; Homer v. Dorr, 10 Id. 266 ; Barksdale v. Brown, 1 N. & McC. 517 (Cheeves, J., dissenting) ; Allan v. Dykers, 3 Hill 593 ; Otsego Bank v. Warren, 18 Barb. 296 ; Gross v. Criss, 3 Gratt. 262. Although the tendency is to reject evidence of usage in violation of the terms of express agreements, yet the later decisions often favor its admission in doubtful cases. In Burnham v. Boston iNIarine Ins. Co., 139 Mass. 399, it was stated by Mr. Justice Field, that " a written contract must be construed according to its terms in their ordinary signification, unless those terms, by usage in the business or between the parties, have a different meaning," and evidence was held inadmissible that, before the contract of insurance was executed, the parties agreed to insure " outfits " under the term " advances." But in Mooney v. Howard Ins. Co., 138 Mass. 375, evidence was admitted in an action on a policy against loss by fu-e on a junk-dealer's stock of " rags " and " old metals " that, by a usage of the trade, those terms had acquired a broader signification than commonly belongs to them. As to the meaning of "fancy-goods and Yankee-notion store " in a policy of insurance, see Barnum v. Merchants' Fire Ins. Co., 97 N. Y. 188, 193. Evidence is inadmissible to change the legal effect of a deed. Tucker v. Smith, 68 Tex. 473, or to alter or modify the express provision of a contract for the sale of barley; Gibney v. Curtis, 61 Mo. 192; or that when one sells or transfers a promissory note, he is to " indorse," although not expressed in the terms of the contract ; Paine v. Smith, 33 Minn. 495, 499, 500. Evidence has been admitted to show the meaning of the word " day " in case of the sale of a reaping machine with right to test it for a day ; Fuller v. Schroeder, 20 Nebr. 63. Also to show that a boat which belongs to a vessel passes by sale, though not mentioned in the bill of sale ; The Merrimac, 29 Fed. Rep. 157. So evidence is admissible to show that certain terms, hardly intelligible in themselves, from not being in ordinary use or from being used in a peculiar or ■WIGGLES WORTH Y. DALLISON. 871 technical way, have a recognized and well-known meaning in a special trade ; Page v. Cole, 120 Mass. 37. See Whitney v. Boardman, 118 Id. 242 ; Swett v. Shumway, 102 Id. 365 ; Miller V. Stevens, 100 Id. 518 ; Eaton v. Smith, 20 Pick. 156 ; Daniels V. Hudson River Ins. Co., 12 Cush. 416 ; Silberman v. Clark, 96 N. Y. 522; Harris v. Rathbone, 2 Keyes 312; Bissell v. Campbell, 54 N. Y. 353 ; Pilmer v. Bank, 16 la. 321 ; Hibler V. IMcCartney, 31 Ala. 501 ; Kiriball v. Brauner, 47 Mo. 398 ; Wilbraham v. Stanley, 57 Cal. 476 ; Steyer v. Dwyer, 31 la. 20 ; Busch V. Pollock, 41 Mich. 64 ; Bancroft v. Peters, 4 Id. 619. It is said in the late case of Susquehanna Fertilizer Co. v. White, m Md. 444, 454 (1886), that "it cannot be contro- verted, that the principle has been established by adjudication, that in commercial instruments and written contracts the usage of a particular trade, profession, or place may be proved for the purpose of ascertaining the meaning of certain words, the signification of which may be doubtful. It is not to be denied that if a word has acquired a peculiar meaning in a certain trade or business, either local or general, that meaning will be applied to it in the construction of written instruments affect- ing the transactions growing out of that trade or business ; but the fact that the word has acquired such meaning must be distinctly proved by the adduction of satisfactory evidence ; " Allegre's Adm'rs v. Md. Ins. Co., 2 Gill & J. 137 ; Taylor v. Briggs, 2 Carr. & P. 525 ; Murray v. Hatch, 6 Mass. 465 ; Coit V. Commercial Ins. Co., 7 Johns. 385. " And it is apparent that the tendency of the American decisions is to restrict, rather than to extend, the application of the principle first established by the sanction of judicial author- ity in England, and subsequently recognized and adopted in this country." See Linsley v. Lovely, 26 Vt. 123 ; Girard Life Ins. Co. v. Mutual Life Ins. Co., 86 Pa. St. 236; S. C. 97 Id. 15. Another qualification of this rule arises where it is presumed that contracts are drawn in reference to the usages which apply to them. " Custom or usage is properly received to ascertain and explain the meaning and intention of the parties to a con- tract, whether written or parol, the meaning of which could not be ascertained without the aid of such extrinsic evidence, and such evidence is used on the theory that the parties knew of the existence of the custom or usage and contracted in refer- 872 WIGGLES WOKTH V. DALLISON. ence to it "; Robinson v. U. S., 13 Wall. 363. This principle is illustrated in a great variety of commercial cases ; Warren Bank v. Parker, 8 Gray 221; Cook v. Walsh, 9 Allen 350; Have V. Hardy, 106 Mass. 329 ; Scudder v. Bradbury, Id. 422 ; Howard v. Im. Co., 109 Id. 384; Porter v. Hills, Id. 114, Id. 106; Schnitzer v. Print Works, 114 Id. 123; Florence Machine Co. V. Daggett, 135 Id. 582, 583 ; Walls v. Bailey, 49 N. Y. 464; Doaner v. Demhorn, 79 111. 131 ; Fit/.simmons v. Academy, 10 Mo. App. 595; Sontier v. Kellerman, 18 Mo. 509; Martin v. Hall, 26 Id. 386 ; Freight Co. v. Stannard, 44 Id. 71 ; Walker V. Barron, 6 Minn. 508; Ilinton v. Coleman, 45 Wis. 465; Steel Works V. Dewey, 37 Ohio St. 242 ; Barker v. Ben-zone, 48 Md. 474, 492 ; Lyon v. George, 44 Id. 295 ; Hendrick v. Robinson, 56 Miss. 694; Dalton v. Daniels, 2 Hilton (N. Y.) 272; :\Ic- Manes v. Donohue, 7 Alb. L. J. 411; White v. Fuller, 4 Hun 631 ; McPherson v. Cox, 86 N. Y. 472 ; Ragland v. Butler, 18 Gratt. 323 ; Bryan v. Spurgin, 5 Sneed 681 ; Perkins v. Jordan, 35 Me. 23 ; Folsam v. Marine Ins. Co., 38 Id. 414 ; Gleason v. Walsh, 43 Id. 397 ; Manett v. Brackett, 60 Id. 524 ; Hursh v. Chorth, 40 Pa. St. 241 ; Carter v. Coal Co., 77 Id. 286 ; Cooper V. Berry, 21 Ga. 526 ; Loyd v. Wight, 20 Id. 574 ; Morton v. Morris, 31 Id. 378 ; Garmany v. Rust, 35 Id. 108 ; Mott v. Hall, 41 Id. 117. "A person who deals in a particular market must be taken to deal according to the known, genei'al and uniform custom or usage of that market ; and he who employs another to act for him, at a particular place or market, must be taken as intending that the business to be done will be done accord- ing to the usage and custom of that place or market, whether the principal in fact knew of the usage or custom or not ; " Bailey v. Bensley, 87 111. 556, 559 ; Lyon v. Culberston, 83 Id. 33 ; United States Life Ins. Co. v. Advance Co., 80 Id. 549 ; Cothran V. Ellis, 107 Id. 413, 419 ; Everingham v. Lord, 19 Bradw. 565, 569. See Kraft v. Fancher, 44 Md. 204 ; Barse v. Morton, 43 Hun 479 ; Bullock v. Finley, 28 Fed. Rep. 514 ; Neill v. Bil- lingsley, 49 Tex. 161 ; Frederick v. Railroad Co., 37 Mich. 342 ; Leach v. Beardslee, 22 Conn. 404 ; Grinman v. Walker, 9 Iowa 426; Bissell v. Ryan, 23 111. 571. See the following early cases : Taylor v. Wells, 3 Watts 65 ; Harrington v. Mc Shane, 2 Id. 443 ; Kemp v. Coughtry, 11 Johns. 107 ; Galloway v. Hughes, 1 Bailey 553 ; Hosea v. McCrory, 12 Ala. 350, 353 ; U. S. V. McDaniel, 7 Pet. 3, 15 ; DeForest v. Fire Ins. Co., 1 WIGGLESWORTH V. DALLISON. 873 Hall 84 ; Ruan v. Gardner, 1 Wash. C. C. 146, 149 ; Townsend V. Whitby, 5 Harr. 55. In many of the above cases usage was admitted in evidence in the absence of express contracts and of circumstances defi- nitely fixing the legal rights of the parties. In many of them • also, the usage was reasonably understood as forming a part of an express contract. Williams v. Gilman, 3 Greenl. 276 ; Van Ness V. Packard, 2 Pet. 138 ; Sewall v. Gibbs, 1 Hall 602 ; Con- ner V. Robinson, 2 Hill (S. C.) .354. See further Alabama R. R. V. Kidd, 29 Ala. 226 ; Dixon v. Dunham, 14 111. 322 ; Barker v. Brace, 3 Conn. 10, 13, Ware 322 ; Chase v. Washburn, 1 Ohio St. 252 ; U. S. V. Fillebrown, 7 Pet. 30, 50 ; Clark v. Baker, 11 Met. 186 ; Bridgeport Bank v. Dyer, 19 Conn. 136 ; Barton v. McKelway, 2 Zab. 165, 175 ; Bank of Utica v. Smith, 18 Johns. 280; Thomas v. O'Hara, 1 Mill's Const. (S. C.) 303, 308; Con- sequa v. Willings, 1 Pet. C. C. 172, 225: Wilcox v. Wood, 9 Wend. 349. There is also a well-established usage in relation to the con- tract of endorsement, the endorser being bound without per- sonal notice. It is the usage of particular banks, as to the time of demanding payment and giving notice, although differing from the time fixed by the general law merchant. Bank of Washington v. Triplett, 1 Pet. 25 ; Cookendorfer v. Preston, 4 How. 317, 326 ; Adams v. Otterbach, 15 Id. 539 ; Renner v. Bank of Columbia, 9 Wheat. 582; Mills v. Bank of U. S., 11 Id. 431 ; Bank of Columbia v. Fitzliugh, 1 Harr. & G. 239 ; Jones v. Fales, 245; Lincoln Bank v. Page, 9 Id. 155; Blanchard v. Hil- liard, 11 Id. 85 ; Pierce v. Butler, 14 Id. 303 ; Dorchester Bank V. New England Bank, 1 Cush. 177, 188 ; Kilgore v. Buckley, 14 Conn. 363 • Whitwell v. Johnson, 17 Mass. 549 ; City Bank v. Cutter, 3 Pick. 414 ; Chicopee Bank v. Eager, 9 Met. 583. For some cases, see Halsey v. Brown, 3 Day 346 ; Allen v. Mer- chants Bank, 22 Wend. 215; Van Santwood v. St. John, 6 Hill 158 ; Cliven v. Screw Co., 23 How. 421. Contravention of rules of law. — It is laid downi as a general proposition that usage is never admissiljle to vary or control a general principle or rule of law^ A thorough discussion of this subject will be found in Barnard v. Kellogg, 10 Wall. 384 and Dickinson v. Gay, 7 Allen 29. The former was the case of a sale of wool, and it was held that the rule of caveat emptor- applied, evidence being inadmissible of an implied warranty of 874 WIGGLESWORTH V. DALLISON. the seller to the purchaser that wool in bales is not falsely or deceitfully packed. It appears that the parties also did not know of the custom. Mr. Justice Davis said, "• It is well settled that usage cannot be allowed to subvert the settled rules of law. AVhatever tends to unsettle the law, and make it different in the different communities into which the state is divided, leads to mischievous consequences, embarrasses trade, and is against public policy. If, therefore, on a given state of facts, the rights and • liabilities of the parties to a contract are fixed by the general principles of common law, they cannot be changed by any local custom of the place where the contract was made. In this case the common law did not on the admitted facts imply a warranty of the good quality of the wool, and no custom in the sale of the article can be admitted to imply one " (p. 391). See also Irwin v. Wil- liar, 110 U. S. 499; Allen v. St. Louis Bank, 120 U. S. 20, 39. In Massachusetts the law is in luuinony with the above deci- sion. Dickinson v. Gay, aupra, was the case of a sale of cases of satinets made by sam[)les. There was in both samples and goods a latent defect not discoverable by inspection, or until the goods were printed, so that they were immerchantable. The contention that there was a warranty implied from the sale that the goods were merchantable was not entertained by the court, but it was held that the custom that a warranty was implied, when by law it was not implied, was contrary to the rule of the common law on the subject and therefore void. See Dodd v. Farlow, 11 Allen 426 ; Hedden v. Roberts, 134 Mass. 38. Evidence is inadmissible to show a custom among brokers to charge a fee to both parties. Commonwealth v. Cooper, 130 Mass. 285 ; Farnsworth v. Hemmer, 1 Allen 494 ; Raisin v. Clark, 41 Md. 158. So of the practice to charge fees not in law taxable. Celluloid Manfg. Co. v. Chandler, 27 Fed. Rep. 9 ; Cutter v. Howe, 122 Mass. 541, 546, 549 ; see Common- wealth V. Perry, 139 Mass. 198, 201. In New York the law is in entire harmony with the above. Frith V. Barker, 2 Johns. 327 ; Woodruff v. Merchants' Bank, 25 Wend. 673 ; Beirne v. Dord, 5 N. Y. 95 ; Simmons v. Law, 3 Keys 219; West v. Kiersted, 15 W. D. 549; Babcock v. New York Railroad Co., 20 Id. 477 ; Wheeler v. Newbould, 16 N. Y. 392 ; Higgins v. Moore, 34 Id. 417 ; Corn Exchange Bank v. WIGGLESWORTH V. DALLISON. 875 Nassau Bank, 91 Id. 74 ; Case v. Perew, 34 Hun 130 ; Wright V. Boiler, 42 Hun 77, 80. In Pennsylvania the case of Snow- den V. Warder, 3 Rawle 101, was decided in contravention of the principle above-stated ; but the law in that state is now in harmony with that of Massachusetts and New York. Coxe v. Heisley, 19 Pa. St. 247; Wetherill v. Neilson, 20 Id. 453. Upon this subject see, also, Brown v. Jackson, 2 Wash. C. C. 24 ; U. S. V. Buchanan, 8 How. 83, 102 ; West v. Ball, 12 Ala. 340, 347 ; Dewees v. Lockhart, 1 Tex. 535, 537 ; Rapp v. Palmer, 3 Watts 178 ; Sweet v. Jenkins, 1 R. 1. 150 ; Beckwith v. Farnum, 5 Id. 231 ; Bissell v. Ryan, 23 111. 571 ; Webster v. Granger, 78 Id. 230; Gifford v. Mc Arthur, 55 Mich. 535; Middleton v. Heyward, 2 Nott & McC. 9, 3 Id. 121 ; Singleton v. Hilliard, 1 Strob. 203, 216 ; Blakeslee v. Directors of the Poor, 102 Pa. St. 274 ; Ingiebright v. Hammond, 19 Ohio 337 ; Antomarchi v. Russell, 03 Ala. 356, 361 ; Garrett v. Trabuc, 82 Ala. 227, 233 ; Ober V. Carson, 62 Mo. 209. A custom that a party having a claim for money due upon a contract may not sue at law, is in- valid, Manson v. Grand Lodge, 30 Minn. 509; Thompson v. Ins. Co., 104 U. S. 252 ; Franklin Ins. Co. v. Humphrey, 65 Ind. 54 ; Spears v. Ward, 48 Id. 541 ; Wallace v. Morgan, 23 Id. 399; Bauer v. Samson Lodge, 102 Id. 262, 271. A custom which would excuse a corporation from acts of negligence is invalid. Chicago & Rock Island R. R. v. Harmon, 12 Bradw. 54, 61 ; Transportation Co. v. Storey, 50 Md. 4 ; Miller v. Pendleton, 8 Gray 547. The custom of " ringing up " among brokers and commission merchants which has been held to be valid when not in contravention of the law is stated in Ward v. Vosburgh, 31 Fed. Rep. 12 ; Irwin v. Williar, 110 U. S. 499. Usage is not admissible to control the rules of law as to the mode in which a loss under a policy shall be computed. HoAvland v. India Ins. Co., 131 Mass. 239, 252 ; Eager v. Atlas Ins. Co., 14 Pick. 141 ; Thwing V. Great Western Ins. Co., Ill Mass. 93, 109 ; Matheson V. Equitable Ins. Co., 118 Id. 209, 214 ; Seccomb v. Provincial Ins. Co., 10 Allen 305. But see Fulton Ins. Co. v. Milner, 23 Ala. 420, 427. In this connection the following words from Dickinson v. Gay, 7 Allen 29, 36, 37 are important. In most cases where evi- dence of a usage is admitted, the reference is " to the methods of transacting business, and not to the mere adoption of a pecu- liar or local rule of law, contrary to the terms of the contract 876 WIGGLESWORTH V. DALLISOX. or to a general rule of law applicable to its construction. But even this distinction is nice and will not reconcile all cases ; and in many instances a usage has been sustained or rejected on the ground that it was or was not regarded by the court as reasonable ; and the question whether it was contradictory to a principle of law, or to the terms or legal operation of a con- tract, was not adverted to." Effect on statutes. — It is a general rule that usage cannot control or contradict a statute, but this is plainly a branch of the law just treated. Where there is explicit statutory regulation it prevails. Barnes v. Bakersfield, 57 Verm. 375; Dunham v. Dey, 13 Johns. 40; Dunham v. Gould, 16 Id. 367; Albright v. County of Bedford, 106 Pa. St. 582; Hatcher v. Comer, 73 Ga. 418, 421 ; Osborne v. C. N. Xelson Co., 33 Minn. 285; Ingham v. Lindeman, 37 Ohio St. 218; Perkins v. Frank- lin Bank, 21 Pick. 483; Rogers v. Allen, 47 N. II. 529; Mor- rison V. Bailey, 5 Ohio St. 13; O'Connor v. North Truckee Co., 17 Nev. 245, 258; Rivers v. Burbank, 13 Id. 398; Delaphme v. Crenshaw. Tlie customary interpretation of a statute is some- times considered. Cameron v. Bank, 37 Mich. 240; Ilelmle v. Life Ins. Co., 61 Pa. St. 107; Governer v. Withers, 5 Giatt. 24. And it has been held that a practical construction given to a statute by custom is equivalent to a positive law. Commis- sioners V. Bemting, 111 Ind. 143. Generally a measure of weight established by statute cannot be affected by usage. Evans v. Meyers, 25 Pa. Stat. 114; Green v. Moffet, 22 Mo. 529. But see Bonham v. Railroad Co., 13 S. C. 267. In Cali- fornia the statutes recognize customs in regard to the location, etc., of mining claims. Thompson v. Spray, 72 Cal. 528, 532 ; Colman v. Clements, 23 Id. 245 ; Morton v. Solambo Co., 26 Id. 527, 534 ; Original Co. v. Winthrop Co., 60 Id. 631 ; Harvey V. Ryan, 42 Id. 626 ; Bradley v. Lee, 38 Id. 362. Usage is no defence to an indictment for crime. Bankers v. State, 4 Ind. 113. Requisites of valid usage. — If otherwise unobjectionable, usage is only admissible when certain, reasonable, and suffi- ciently ancient to afford a presumption that it is generally known. U. S. v. Buchanan, 8 How. 102; The Titania, 19 Fed. Rep. 101 ; Blakemore v. Heyman, 23 Id. 648 ; Byrne v. Massa- soit Packing Co., 137 Mass. 313 ; Phoenix Ins. Co. v. Frissell, 142 Id. 513, 515; Sterling Organ Co. v. House, 25 W. Va. 64, 96 ; Janney v. Boyd, 30 Minn. 319 ; Wilson v. Bauman, 80 WIGGLESWORTPI V. D ALLISON. 377 111. 493; Jones v. "Wagner, (SQ Pa. St. 449; Farmers' Bank v. Champlain Co., 23 Vt. 186, 193; Munn v. Ikuvb, ±3 111. 356; Johnson v. Railroad, 46 N. H. 213 ; I. & G. 11. R. Co. v. Has- sell, 62 Tex. 256. If the usage is not actually known to the contracting parties it must "be so well settled, so uniformly acted upon, and so long continued, as to raise a fair presump- tion that it was known to both contracting parties, and that they contracted in reference thereto." Walls v. Bailey, 49 N. Y. 464, 474; Bank v. Erie Railroad Co., 72 N. Y. 188; Jacob V. Storey, 48 N. H. 100; Rindskoff v. Barrett, 14 la. 101; Couch V. Watson Coal Co., 46 Id. 17; Rafert v. Scrog- gins, 40 Ind. 195; Lamb v. Klaus, 30 Wis. 94; Castleman v. Life Ins. (^o., 14 Bush 197; Lowe v. Lehman, 15 Ohio St. 179; Randall v. Smith, 63 Me. 105; Isaksson v. Williams, 26 Fed. Rep. 642, 645. A widespread and established use has at least a tendency to show knowledge. Croucher v. Wilder, 98 Mass. 322; Howard v. Great Western Ins. Co., 109 Id. 384; Mooney v. Howard Ins. Co., 138 Id. 375. Parties engaged in a particular business, or persons accustomed to deal with them, may be presumed to have knowledge of the uniform course of such business. Hence its usages, in the absence of agreement to the contrary, may be supposed to have entered into the contract in relation to such business. Morning Star V. Cunningham, 110 Ind. 328, 335; Florence Machine Co. v. Daggett, 135 Mass. 582; Talcott v. Smith, 142 Id. 542, 544, Rogers v. Holden, Id. 196; Fitzsimmons v. Academy, 81 Mo. 37 ; East Tennessee R. R. Co. v. Johnston, 75 Ala. 596 ; Carter V. Coal Co., 77 Pa. St. 286; Lyon v. George, 44 Ind. 301. Gen- erally in case of local customs actual knowledge must be brought home to a party in order to bind him. Scott v. Meier, 56 Mich. 554 ; Flatt v. Osborne, 33 Minn. 98 ; Thompson v. Minneapolis R. R. Co., 35 Id. 428 ; Gregg v. Garverick, 33 Ivans. 190, 193 ; Walsh v. Frank, 19 Ark. 270 ; Marlett v. Clary, 20 Ark. 251 ; Collins v. New England Iron Co., 115 :Mass. 23 : Sawtelle v. Drew, 122 Id. 228; Stevens v. Reeves, 9 Pick. 197 ; Hermann i\ Niagara Fire Ins. Co., 100 N. Y. 411 ; Little V. Fargo, 43 Hun 233 ; Winsor v. Dillaway, 4 Met. 221 ; Wal- lace V. Morgan, 23 Ind. 399. To be valid, a custom must be general, uniform, and certain. Singleton v. Hilliard, 1 Strob. 203, 216; Potts v. Aechternacht, 93 Pa. St. 138; Bissell v. Ryan, 23 111. bm, 571; Barton v. 878 WIGGLESWOETH V. DALLISON. McKelway, 2 Zab. 1(35, 175 ; Pevey v. Schulenburg, 33 Minn. 45, 47. The requirement tluit a usage must be reasonable is imperative. " Perhaps there can be no better evidence of the reasonableness of a custom than its antiquity and uninterrupted prevalence." Baxter v. Rodman, 3 Pick. 435, 43*J. In the following eases usages were held unreasonable. Mulliner v. Bronson, 14 Bradw. 355; Ilaskins v. Warren, 115 Mass. 514; St. Andrew v. Mauchaug M'f'g Co., 134 Id. 42 ; Smith v. Wright, 1 Cai. 43 ; Reed v. Richardson, 98 Mass. 216 ; Whit- ney V. Essen, 99 Id. 308; Farnsworth v. Harmer, 1 Allen 494; Commonwealth v. Cooper, 130 Mass. 285 ; Stoney v. Transpor- tation Co., 17 Hun 579; Wadley v. Davis, 63 Barb. 500 ; Ful- ler V. Robinson, 86 N. Y. 306 ; Lehman v. Marshall, 47 Ala. 362 ; liank v. Bank, 51 Md. 128 ; Mills v. Ashe, 16 Tex. 296 ; People V. Gold Run, &c., Co., 66 Cal. 138 ; Strong v. Railroad, 15 Mich. 206 ; Harrington v. Edwards, 17 Wis. 586 ; Lord v. Botsford, 26 Fed. Rep. 651 ; Anewalb v. Hummel, 109 Pa. St. 271. See St. Louis R. R. Co. v. Southern Express Co., 117 U. S. ; Liverpool Steam Co. v. Saitter, 17 Fed. Rep. 695 ; Liver- pool Steam Co. v. Saitter, 22 Id. 560 ; Harlan v. Ely, 68 Cal. 522, 527. It has been held that a usage may be shown that gratuities or " scale moneys " are considered as part of the compensation of hostlers at hotels. Jonsson ik Thompson, 97 N. Y. 642. Evidence of the usage of the shipper to bed the car is admissible to explain the intention of the parties in mak- ing a special agreement. East Tenn. R. R. Co. v. Johnston, 75 Ala. 596, 604. See, also, Kinney v. South & North Railroad Co., 82 Id. 368 ; Stoudenmire v. Harper, 81 Id. 242. Evidence has been admitted of shippers as to the delivery of freight for shipment. Montgomery Railway Co. v. Kolb, 73 Ala. 396. Some late cases in which evidence of usage was admitted are Jones V. Haly, 128 Mass. 585 ; Florence Machine Co. v. Daggett, 135 Id. 582, 583, and cases cited; McCullough v. Hellweg, 66 Md. 269, 275; Lansing v. Johnson, 18 Nebr. 174; Brown Chemical Co. v. Arkinson, 91 No. Car. 389; Wear v. Sanger, 91 Mo. 348, 356 ; Scudder v. Ames, 89 Id. 496, 508 ; Tibby v. Missouri Pacific R. R. Co., 82 Id. 292; Smythe v. Parsons, 37 Kan. 79 ; Newhall v. Langdon, 39 Ohio St. 87, 95 ; Steel Works V. Dewey, 37 Id. 242. It has been held in Illinois that it is well known to all dealing in whiskey warehouse receipts, that in purchasing them the warehouse and not the seller is looked WIGGLESWORTH V. DALLISON. 879 to as the responsible party. ]\Iida v. Geissman, 17 Bradw. 207, 211. Evidence. — Usage is proved by witnesses testifying of its existence and uniformity from their knowledge obtained by observation of what is j^ractised by themselves and others in the trade to which it relates. But their conclusions or infer- ences as to its effect, either upon the contract or the legal title or rights of parties, are not competent to show the character or force of the usage. Neither is it competent for them to testify what is the understanding of others in regard to its effect. The effect is to be determined In' the court, or by the jury under its direction. Haskins v. Warren, 115 Mass. 514, 535; Gallup V. Lederer, 1 Hun 282 ; Southwestern, &c., Co. v. Stanard, 44 :\Io. 71 ; Jewell v. Center & Co., 25 Ala. 498 ; Gary v. Meagher, 33 Id. G30 ; Texas Banking Co. v. Hutchins, 53 Tex. 61. Custom cannot contradict a fact plainly proved by positive testimony. I. & G. N. R y Co. v. Gilbert, 64 Tex. 536, 541. Evidence of a usage should never be admitted "until the party offering it has distinctly stated to the Court what he intends to prove." Susquehanna Fertilizer Co. v. White, Q6 Md. 444, 457. Evidence of the uniform and general custom in like cases is sometimes competent, although not conclusive, upon the ques- tion whether a use is a reasonable one. Red River Mills v. Wright, 30 ]\Iinn. 249, 254. But the testimony of the same witness as to his conduct and the result of it in other cases is immaterial. Lane v. Boston & Albany Railroad Co., 112 Mass. 455 . Lewis v. Smith, 107 Id. 334 : City Council v. Montgomery, 79 Ala. 233, 245. Usage is sometimes resorted to to raise a primd facie presumption of fact in aid of collateral testimony. Knickerbocker Ins. Co. v. Pendleton, 115 U. S. 340. It has been held that the testimony must be ample to esta]> lish a usage. Frith v. Barker, 2 Johns. 327. Some of the authorities hold that a usage cannot be established by the tes- timon}' of a single Avitness. Bissell v. Ryan, 23 111. 566, 571 ; Wood V. Hickok, 2 Wend. 501 ; Holwerson v. Cole, 1 Spears (S. C.) 321. But the weight of the authority is the other way. Robinson r. U. S., 13 Wall. 363, 366; Marston v. Bank, 10 Ala. 284 ; Partridge v. Forsyth, 29 Ala. 200. " Notwithstand- ing the dictum in Boardman v. Spooner, 13 Allen 353, 359, there can be no doubt at the present day that the circumstances 880 WIGGLESWORTH V. DALLISON. that but one witness testifies to a usage is important only as bearing upon the credibility and satisfactoriness of his testi- mony in point of fact, and does not affect its competency or its sufficiency as matter of law." Jones v. Hoey, 128 Mass. 585 ; Wootters v. Kauffman, 67 Tex. 488, 403 ; Vail v. Rice, o X. Y. 156. See Treadway v. Shannon, 7 Nev. 37. Testimony that one knew what had been the custom for several years is insuf- ficient. Smith V. Rice, 56 Ala. 417. Usages must be pleaded. Liggatt V. Withers, 5 Gratt. 24 ; Sullivan v. House, 2 Col. 424 ; Lewis v. McClure, 8 Oreg. 273 ; Overman v. Bank, 31 N. J. (Law) 563. Li regard to the burden of proof the general rule of course is that he who sets up anything must prove it, although, as we have alread}^ seen, it is sufficient in most cases if it is shown that the usage was presumptively known to both parties. See Loveland v. Burke, 120 Mass. 139 ; Harris v. Turnbridge, 83 N. Y. 92 ; Scott v. Whitney, 41 Wis. 504 ; Power v. Kane, 5 Id. 265; Irish v. Railroad, 19 Minn. 376 : N. Y. Iron Mine v. Bank, 44 Mich. 344; Bentley v. Daggett, 51 Wis. 224; Murray v. Spencer, 24 Md. 520 ; Fisher v. Sargent, 10 Cush. 250 ; Fletcher V. Seekell, 1 R. I. 267. Sometimes the violation of a usage is evidence of negligence. Sampson v. Hand, 6 Whart. 311, 324. See also Cook v. Champlaiu Co., 1 Den. 92,102; Bradford v. Drew, 5 Met. 88 ; Maxwell v. Eason, 1 Stew. & P. 514 ; Cheno- with V. Dickenson, 8 B. Mon. 156 ; Barber v. Brace, 3 Conn. 9. But generally custom cannot be set up to show that negligence does or does not exist; it must be determined by the facts of the case. G. C. & Santa Fe R'y Co. v. Evanrich, 61 Tex. 36. Established usage not to tranship is not rebutted by bill of lad- ing reserving right of transshipment. Schroeder v. Schroelzer, 66 Cal. 294,^298. Court and the jury. — The question of the existence of a usage is for the jury ; of its validity, for the Court. Knickerbocker Life Ins. Co. v. Pendleton, 115 U. S. 339, 344, 345 : Huston v. Peters, 1 Met. (Ky.) 558 ; Chicago Packing Co. v. Tilton, 87 111. 547 ; Steele v. McTyer, 31 Ala. 667 ; SulUvan v. Jernigan, 21 Flor. 264, 278 ; Elder v. Railroad Co., 13 S. C. 279. " There does not seem to be entire harmony in the decisions of other states as to whether the reasonableness of a custom is to be determined by the Court, or whether it is a question for the jury." Mulliner v. Bronson, 14 Bradw. 355, 364. WIGGLESWORTH V. DALLISON. 881 Private usage. — The practice and usage of a party has effect if expressly made part of the terms of the contract or if shown to have been known to the other party and assented to by liim. Hursh V. North, 40 Pa. St. 241 ; Railroad Co. v. Nash, 43 Ind. 423 ; iNIarshall v. Express Co., 7 Miss. 1 ; Hooper v. Railroad, 27 Id. 81 ; Boody v. Stone, 24 Vt. 660 ; Stevens v. Smith, 21 Id. 90 ; Bank v. Wallace, 13 S. C. 347 ; Silk Co. v. Fair, 112 Mass. 354 ; Veiths v. Hagge, 8 la. 163 ; Railroad v. Murray, 72 111. 128. But gtMierally mere personal modes of dealing cannot be set up as customs. Powell v. Thompson, 80 Ala. 51, 55 ; Burr V. Sickles, 17 Ark. 428, 434. The practice of a local office of a telegraph company cannot vary the terms of the contract under which the message is sent. Grinnell v. W. U. Tel. Co., 113 Mass. 299. See furthur Eureka Ins. Co. v. Robinson, 26 Pa. St. 256, 265; Meighen v. Bank, 25 Id. 288; Burger v. Mutual Ins. Co., 71 Id. 422, Vaughan v. Railroad, 63 N. C. 11 ; Loring v. Gurney, 5 Pick. 16 ; McDowell v. Ingersoll, 5 S. & R. 101 ; Knox V. Rives, 14 Ala. 249, 257. As to the author- ity of an assistant teller to certify checks, see Hill v. Nation Trust Co., 108 Pa. St. 1. Various points. — The custom in Wigglesworth v. Dallison is recognized in Pennsylvania. Forsythe v. Price, 8 Watts 282, and cases cited ; Denis v. Rossler, 1 P. & W. 224 ; Iddings v. Nagle, 2 W. & S. 22. Also in other states. Nellons v. Truax, 6 Ohio St. 97 ; Van Dorens v. Everitt, 2 South 460 ; Dorsey v. Eagle, 7 CI ill 321. As to wheat but not as to oats in Delaware, Templeman v. Biddle, 1 Ilarr. 522. As to Virginia, see Harris V. Carson, 7 Leigh 632, 639. As to usages and customs in Louisiana before acquisition, see Slidell v. Grandgian, 111 U. S. 412. The usage, as has been previously stated, must be shown to be well established, uniform, general and notorious. The evi- dence therefore must show a series of similar transactions. A single instance will not suffice. Berkshire Woolen Co. v. Proc- tor, 7 Cush. 422 ; Dean v. Swoop, 2 Binney 72 ; Cope v. Dodd, 13 Penn. St. 37. In Indiana it is held requisite that the custom l)e shown to prevail all over the state regarded as a single locality. Harper v. Poand, 10 Ind. 32 ; Rafert v. Scroggins, 40 Id. 195 ; Spears v. Ward, 48 Id. 541. And the testimony to prove the usage must be positive and certain. It is there- fore improper to admit evidence that it was not the custom to 882 WIGGLESWORTH V. DALLISON. make certain contracts at a certain place. Goodfellow v. Mee- gan, 32 Mo, 280. And if the latest knowledge of the witness was acquired more than a year prior to the transaction in ques- tion, his testimony should be excluded. Hale v. Gibbs, 43 Iowa, 380. Contracting parties are not bound by local usages of other places unless they are referred to or made a part of the contract. Cobb V. Limerock, &c., Ins. Co., 58 Me. 326 ; Union Bank v. Union Ins. Co., Dudley (S. C.) 171. Nor will it be permitted to import by implication a local usage of one place into a con- tract made at another. Parkhurst v. Gloucester Ins. Co., 100 Mass. 301 ; Cobb v. Limerock, &c., Ins. Co., 58 jNIe. 32G ; Strong V. King, 35 111. 9 ; Nichols v. DeWolf, 1 R. I. 277. And if a usage which the courts would not enforce, suth as a sale of a customer's stock without notice to him upon his failure to fur- nish sufficient margin at the stock exchange, be agreed to in writing by the customer, it will be upheld as to him. Baker v. Drake, 66 N. Y. 518. MOSS v. GALLIMORE AND ANOTHER. MICHAELMAS. — 20 GEO. 3. [reported dougl. 279.] A mortgagee, after giving notice of the mo7'tgage to a tenant in possessioji, under a lease prior to the mortgage, is entitled to the rent in arrear at the time of the notice, as well as to what accrues afterivards, and he may distrain for it after such notice. In a notice for the sale of a distress, it need not he mentioned lohen the rent fell due (jci). Ix an action of trespass, which was tried before Nares, Justice, at the last assizes for Staffordshire, on not guilty pleaded, a verdict was found for the plaintiff, subject to the opinion of the court, on a case reserved. The case stated as follows : One Harrison being seized in fee, on the first of January, 1772, de- mised certain premises to the plaintiff for twenty years, at the rent of 40/., payable yearly on the 12th of j\Iay ; and in May, 1772, he mortgaged the same premises, in fee, to the defendant, Mrs. Gallimore. Moss continued in possession from tlie date of the lease, and paid his rent regularly to the mortgagor all but 28/. which was due on and before the month of November, 1778, when the mortgagor became a bankrupt, being at the time in- debted to the mortgagee in more than that sum for interest on the mortgage. On the 3rd of January, 1779, one Harwar went to the plaintiff, o"i behalf of Gallimore, showed him the mort- ■gage deed, and demanded from him the rent then remaining unpaid. This was the first demand that Gallimore made of the (^«) A man is not bound by his \^PhiUips v. Whitsed, 2 E. & E. 804.] notice of distress, C'rotcther v. Rams- A notice of distress must be in writ- bottom, 7 T. R. 654, per Lord Kenyon, ing, Wilson v. Xujhtinfjale, 8 Q. B. 1034. S83 884 MOSS V. GALLIMOKE. rent. The plaintiff told Harwar that the assignees of Harrison had demanded it before, viz., on the 31st of December ; but, when Harwar said that Gallimore would distrain for it if it was not paid, he said he had some cattle to sell, and hoped she would not distrain till they were sold, when he would pay it. The plaintiff not having paid according to this undertaking, the other defendant, by order of Gallimore, entered, and dis- trained for the rent, and thereupon gave a Avritten notice of such distress to the plaintiff, in the following words : " Take notice, that I have this day seized and distrained, &c., by virtue of an authority, &c., for the sum of 28L, being rent, and arrears of rent, due to the said Esther Gallimore, at INIichaelmas last past, for, &c., and unless you pay the said rent, &c." He ac- cordingly sold cattle and goods to the amount of 221. 2s. The question stated for the opinion of the court was, whether, under all the circumstances, the distress could be justified? Wood for the plaintiff. Boiver for the defendants. Wood. — The plaintiff's case rests upon two grounds : 1st, The defendant, Gallimore, not being, at the time when the rent distrained for became due, in the actual seisin of the premises, nor in the receipt of the rents and profits, she had no right to distrain. 2nd. The notice was irregular, being for rent due at Michaelmas, whereas this rent was only due and payable in May. — 1. Before the statute of 4 Anne, c. 16 (a), a convey- ance by the reversioner was void without the attornment of the tenant (5), which was necessary to supply the place of livery of seisin. Since that statute I admit that attornment is no longer necessary to give effect to the deed ; but it does not follow from thence, that a grantee has now a right to distrain, before he turns his title into actual possession. The mortgagor (according to a late case (^O)' is tenant at will to the mort- gagee, and has a right to the rents and profits due before his will is determined. Nothing in this case can amount to a determination of the will, before the demand of the rent on behalf of the mortgagee, and the whole of that for which the distress was made became due before the demand. If the mortgagor himself had been in possession, he could not have been turned out by force : the mortgagee must have brought an ejectment. The assignees had called upon the plaintiff for (a) Sect. 9. (c) Keech v. Hall, M. 19, Geo. 3, (&) Co. Litt. 309, a. b. ante, p. 546. MOSS V. GALLIMORE. . 885 the rent as well as Gallimore, and how could he take upon him- self to decide between them? The mortgagee should have brought an ejectment, when any objection there might have been to the title could have been discussed. It does not appear from the case, that the interest in arrear had ever been de- manded of the mortgagor, and there is a tacit agreement that the mortgagor shall continue in possession and receive the rents till default is made in paying the interest. 2. The notice is irregular, and, on that account, the distress cannot be justified. By the common law, the goods could not be sold. The power to sell was introduced by the statute of William and ]\lary (a) ; but it is thereb}' required that notice shall be given thereof, " with the cause of taking," &c. These requisites are in the nature of conditions precedent, and, if not complied with, the proceedings are illegal. It is true, this irregularity, since the statute of 11 Geo. 2 (J), does not make the defendants tres- passers ah initio^ but the action of trespass is still left by that statute, for special damages incurred in consequence of the irregularity (c). Lord Mansfield observed, that the defendant was precluded by the case from going for special damages arising from any supposed irregularity in the sale, no such special damages being found, and the question stated being only, whether the distress was justifiable ; and BuUe/\ Justice, said that it was not neces- sary, by the statute of William and jNIary, to set forth in the- notice at what time the rent became due. Bower. — If the law of attornment remained still the same as. it was at common law, the conversation stated to have taken place between the plaintiff and Harwar would amount to an attornment ; and, when there has been an attornment, its opera- tion is not restrained to the time when it was made : it relates back to the time of the conveyance, and makes part of the same title ; like a feoffment and livery, or a fine or recovery and the deed declaring the uses ; Long v. Hemming (^rf). Now, how- ever, any doubts there might have been on this subject are- entirely removed by the statute of Queen Anne, the words of 'which are very explicit, viz. (<;) : " that all grants or conveyances (a) 2 W. & M. Sess. 1, c. 5, s. 2. • (cT) 1 Anders. 256. Vide S. C Cro.. (6) Cap. 19, s. 19. El. 209. (c) See on this point, ajite [in note (e) 4 Anne, cap. 16, s. 9. to Six Carpenters' case]. 386 . MOSS V. GALLIMORE. of any manors, rents, reversions, or remainders, shall be as good and effectual to all intents and purposes, without any attorn- ment of the tenants, as if their attornment had been had and made." The proviso in the same statute (a), which says, that the tenant shall not be prejudiced by the payment of any rent to the grantor before he shall have received notice of the grant, shows, that it was meant that all the rent which had not been paid at the time of the notice should be payable to the grantee. The mortgagor is called a tenant at will to the mort- gagee. That may be true in some respects, but it is more correct to consider him as acting for the mortgagee in the re- ceipt of the rents as a trustee, subject to have his authority for that purpose put an end to, at whatever time the mortgagee pleases. It is said, the proper method for the mortgagee to have followed would have been to have brought an ejectment, but it is only a very late practice to allow a mortgagee to get into the possession of the rents, by an ejectment against a ten- ant under a lease prior to the mortgage (6). The interest, it is said, is not stated to have been demanded: but the > case states, that, at the time of the notice and distress, more than the amount of the rent in arrear was due. It is said the tenant could not decide between the mortgagor (or, which is the same thing, his assignees) and the mortgagee ; but that is no excuse. He would have had the same difficulty in the case of an abso- lute sale ; a mortgage in fee being, at law, a complete sale, and only differing from it in respect of the equity of redemption, which is a mere equitable interest. The Court told him it was unnecessary for him to say any- thing on the other point. Lord Mansfield. — I think this case, in its consequences, very material. It is the case of lands let for years and afterwards mortgaged, and considerable doubts, in such cases, have arisen in respect to the mortgagee when the tenant colludes with the mortgagor ; for the lease protecting the possession of such a tenant, he cannot be turned out by the mortgagee. Of late years the courts have gone so far as to permit the mortgagee to proceed hy ejectmetit., if he has given notice to the tenant that he does not intend to disturb his possession, hut only requires the rent (a) Sect. 10. no longer exists. See note to Keech (6) Wliite V. Haiokins, M. 19 Geo. v. Hall, ante. 3. This practice was anomalous, and MOSS V. GALLIMOKE. 887 to he paid to him, and not the mortgagor (^ci). This, however, is entangled with difficulties. The question here is, whether the mortgfaofee was or was not entitled to the rent in arrear. Be- fore the statute of Queen Anne attornment was necessary, on the principle of notice to the tenant; but, when it took place, it certainly had relation back to the grant, and, like other relative acts, they were to be taken together. Thus, livery of seisin, though made afterwards, relates to the time of the feoff- ment. Since the statute, the conveyance is complete without attornment ; hut there is a provision, that the tenant shall not he prejudiced for any act done hij him as holding under the grantor, till he has had notice of the deed. Therefore, the payment of rent hefore such notice is good. With this protection, he is to be considered, by force of the statute, as having attorned at the time of the execution of the grant ; and, here, the tenant has suffered no injury. No rent has been demanded which was paid before he knew of the mortgage. He had the rent in question still in his hands, and was bound to pay it according to the legal title. But having notice from the assignees, and also from the mortgagee, he dares to prefer the former, or keeps both parties at arm's length. In the case of executions, it is uniformly held, that if you act after notice, you do it at your pei-il. He did not offer to pay one of the parties on re- ceiving an indemnity. As between the assignees and the mort- gagee, let us see who is entitled to the rent. The assignees stand exactly in the place of the bankrupt. Now, a mortgagor is not properly tenant at will to the mortgagee, for he is not to pay him rent. He is only quodam mqdo. Nothing is more apt to confound than a simile. When the court or counsel call a mortgagor a tenant at will, it is barely a comparison. He is like a tenant at will. The mortgagor receives the rent by a tacit agreement Math the mortgagee, but the mortgagee may put an end to this agreement when he pleases. He has the legal title to the rent, and the tenant in the present case cannot be damnified, for the mortgagor can never oblige him to pay over again the rent which has been levied by this distress. I therefore think the distress well justified; and I consider this remedy as a very proper additional advantage to mort- gagees, to prevent collusion between the tenant and the mort- gagor. (a) But this is at present never permitted. See ante, note to Keech v. Hall. MOSS V. GALLIMORE. Ashurst^ Justice. — The statute of Queen Anne has rendered attornment unnecessary in all cases, and the only question here arises upon the circumstance of the notice of the mortgage not having been given till after the rent distrained for became due. Where the mortgagor is himself the occupier of the estate, he may be considered as tenant at will ; but he cannot be so con- sidered if there is an under-tenant ; for there can be no such thino- as an under-tenant to a tenant at will. The demise itself would amount to a determination of the will. There being in this case a tenant in possession, the mortgagor is, therefore, only a receiver of the rent for the mortgagee, who may, at any time, countermand the implied authority, by giving notice not to pay the rent to him any longer. Buller, Justice. — There is in this case a plea of the general issue, which is given by statute («), but if the justitication ap- peared upon the record in a special plea, the distress must be held to be legal. Before the act of Queen Anne, in a special justification, attornment must have been pleaded ; but since that statute it is never averred in a declaration in covenant, nor pleaded in an avowry. In the case of Keech v. Hall, re- ferred to by Mr. Wood, the court did not consider the mort- gagor as tenant at will to all purposes. If my memory do not fail me, my Lord distinguished mortgagors from tenants at will in a very material circumstance, namely, that a mortgagor would not be entitled to emblements. Expressions used in par- ticular cases are to be understood with relation to the subject- matter then before the court. The postea to be delivered to the defendants. Moss V. Gallimore is the leading case upon a point Avhich seems so clear in principle that, were it not for its verj' general importance, it would be per- haps a matter of some surprise that any case should have been requisite to establish it. The mortgagor having conveyed his estate to the mortgagee, the tenants of the former become of course the tenants of the latter; the necessity of their attornment being done away with by the statute of Anne, which, though it provides that they shall not be prejudiced by tlie abolition of attornment, and consequently renders valid any payments they may have made to the mortgagor without notice of the mortgage [provided that such payments were made in respect of rent which Avas due at the time of pay- ment or became due before notice of the mortgage : Be Nicholls v. Saunders, (a) 11 Geo. 2, c. 19, s. 21. MOSS V. GALLIMOKE. 889 L. R. 5 C. P. 589, 39 L. J. C. P. 297; Cook v. Guerra, L. R. 7 C. P. 132, 41 L. J. C. P. 89], nevertheless places the mortgagee in the sitnation of the mort- gagor, immediately upon the execution of the mortgage-deed, subject only to that proviso in favour of the tenants ; and enables him by giving notice to them of the conveyance, to place himself to every intent in the same situa- tion towards them as the mortgagor previously occupied : Raioson v. Eicke, 7 A. & E. 451 ; Burroioes v. Gradin, 1 Dowl. & L. 213. Such being the situation of the tenant with respect to the mortgagee, it would of course be unfair that he should not be propoi-tionably exonerated from his liabilities to the mortgagor; therefore, where a lessor, after the execution of the lease, moi-tgaged the premises, it was held that he could not afterwards maintain ejectment for a forfeiture : Doe dem. Marriott v. Ed- icards, 5 B. & Ad. 1065. [As to what is notice of the mortgage, see Cook V. Guerra, tibi. sup.'} In Trent v. Hunt, 9 Exch. 14, it is said to have been decided by the Court of Exchequer, that if a lessor having mortgaged his reversion is permitted by the mortgagee to continue in the receipt of the rent incident to that rever- sion, he, during such permission, is, presumptions juris authorised, if it should become necessary, to realise the rent by distress, and to distrain for it in the mortgagee's name as his bailift'. [In Snell v. Finch, 13 C. B. N. S. 651, Trent V. Hunt was acted upon, the court suggesting that the implied authority may be limited to a distress on a lawful occasion. See also the judgments of Williams and Willes, JJ., in The Dean, &c., of Christchurch v. The Duke of Burkinyham, 17 C. B. N. S. 391, 33 L. J. C. P. 322.] Such being the situation of a tenant who comes in under the mortgagor before the mortgage, let us now examine a subject which seems to involve more difficulty, namely, that of a tenant who has entered under the mortgagor subsequenthj to the mortgage. [And first it must be observed, that as regards mortgages made since the 1st January, 1882, the Conveyancing Act, 1881, 44 & 45 Vict. c. 41, has intro- duced a material difference, for by that Act, unless otherwise provided by such mortgage, a statutory power of leasing is given to a mortgagor or mort- gagee while respectively in possession. In this note there will be considered the situation of a mortgagor's tenant under a tenancy posterior to the mort- gage, 1st. Where the lease is not made under the statutory power. 2nd. Where it is so made. And, first, at common law,] it was once alleged that though a tenant who had entered previous to the mortgage became the tenant of the mortgagee after the mortgage, and might, if any proceedings were afterwards instituted against him by the mortgagor, show that, although that person was once his landlord, he had now conveyed away his estate in the premises; (according to the ordinary rule of law, that a tenant, though he cannot dispute the title of the landlord under whom he entered, may confess and avoid it by showing that it has now determined : see Doe dem. Afarriott v. Edwards, above cited;) "still that a tenant who had entered since the mortgage was differently situated, for that he was estopped from disputing the title of the mortgagor, and could not confess and avoid it, inasmuch as it had never really existed during the period of his possession ; and this idea derived a good deal of counte- nance from the decision of the Court of Common Pleas, Alchorne v. Gomme, 2 Bing. 54. However, the subject was afterwards fully discussed in Pope v. Biggs, 9 B. 890 MOSS V. GALLIMORE. & C. 245, [and in that case, followed in Waddilove v. Barnett, 4 Dowl. 348, it was held that a] " mortyagee, by fjivinrj notice of the mortrjaye to the tenant, may thereby make him his tenant, and entitle himself to receive the rents." " The mortgagor," said Parke, J., " may be considered as acting in the nature of a bailiff or agent for the morUjayee. His receipt of rent Avill, therefore, be good until the mortgagee interferes, and he may recover on the contracts he has himself entered into in his own name with the tenants. But where the mort- gagee determines the implied authority bj' a notice to the tenants to pay their rents to him, the mortgagor can no longer receive or recover any unpaid I'ent, whether already due or no." \_Accord, Vallance v. Savaye, 7 Bing. 595 (a case of trustee and cestui que trust) •,'\ Meyyinson v. Harper, i Tyrwh. 100; Burrowps v. Gradin, 1 Dowl. & L. 213, Wightman, J. The doctrine tlius promulgated in Pope v. Biyys was, however, shaken by Partinyton v. Woodcork, 6 A. & E. 690, and Royers v. Humphreys, A. & E. 313. And at length, in Evans v. Elliott, 9 A. & E. 342, it was expressly decided by the Court of Queen's Bench [on a question whether the mortgagee had a right to distrain,] that the mortyayee cannot by the mere fact of yiviny the mort- gayofs tenant a notice, cause him to hold of himself the mortyayee, and that even a subsequent attornment by the tenant to the mortyayee will not have the effect of settiny up his title as landlord by relation. The I'esult of this decision and of that of the Court of C. P. in Broicn v. Storey, 1 Scott, N. C. 91; 1 M. & G. 117, seems to be that [at common law] in order to ci'eate a tenancy between the mortgagee and the tenant let into possession by the mortgagor, there must be some evidence whence it may be inferred that such relation has been raised by mutual agreement, and that in such case the terms of the tenancy are to be ascertained (as in an ordinary case) from the same evidence which proves its existence, but that it does not lie in the power of the mortgagee by a mere notice to cause the tenant in possession to hold vmder him on the same terms on which he held under the mortgagor — or indeed upon any terms at all without his own consent. And that where the tenant does consent to hold under the mortgagee, a new ten- ancy is created, not a continuation of the old one between him and the mort- gagor. [See the judgment in Waddilove v. Barnett, 2 Bing. N. C. 538.] In Brown v. Storey, indeed, the Court of Common Pleas expressed an opinion that, if the mortgagor's tenant, after receiving notice from the mortgagee to pay rent to him, continued in possession, it might fairly be inferred that he assented to continue as tenant to the mortgagee upon the old terms. In Burrowes v. Gradin, 1 DoavI. & L. 213 (which may be considered a mid- dle case), AVightman, J., held that an agreement [made after the mortgage] between the mortgagor and a tenant from year to year, whose tenancy com- menced before the mortgage, for paj'ment of an additional annual sum as rent, in consideration of improvements made by the mortgagor, had not the eflect of so changing the situation of the parties, that the tenant could be considered as no longer holding of the mortgagee ; and further, that the mortgagee might adopt the dealing of the mortgagor as his agent, and (after notice of the mortgage) recover not merely the amount of rent originally payable, but the additional sum also, which, in consequence of the improve- ment of the land, the tenant agreed to pay; a remarkable decision, so far as relates to the additional svim agreed to be paid, because it appears from Donellan v. Read, 3 B. & Ad. 899, and Lambert v. Norns, 2 M. & W. 334, that that sum was not rent properly so called, but a sum in gross, for which an assignee of the reversion could not sue, nor could an assignee of the term be MOSS Y. GALLIMORE. 891 sued. The reasoning of AViglitman, J., though expressly limited to the peculiar circumstances of the case, and especially founded on tliat of the tenancy having existed at the time of the mortgage, tends in some degree to confirm tlie conclusions drawn from Fupe v. Bi(j(js. It should seem tliat the cases on tliis subject miglit be reconciled to ordi- nary principles, without straining after any peculiar rule applicable to the case of mortgagor and mortgagee, by observing that a tenant of the mortgagor, whose tenancy has commenced since the mortgage, may [at common law] in case of an eviction by tlie mortgagee, either actual or constructive, (for instance, an attornment to him under threat of eviction, see Doe d. Hiyrjin- botham V. Barton, 11 A. & E. 314; ^fa)Jor of Poole v. Whitt, 15 M. & W. 571; [and the judgments in Delaney v. Fox, 2 C. B. N. S. 7G8, and Carpenter v. Parker, 3 C. B. N. S. 237, 27 L. J. C. P. 78],) dispute the mortgagor's title to either the land or the rent, (which is no more than any tenant may do upon an eviction by title paramount;) and further, that he may, altliougli there have been no eviction, defend an action for rent l)y proof of a payment under constraint, in discharge of the mortgagee's claim, Johnson v. Jones, 9 A. & E. 809, (which right is analogous to that of an ordinarj' tenant in respect of payments on account of rent-charges, and other claims issuing out of the land, of which examples are cited in the note to Lampleiyh \. Braithicaite, ante ;) so that [such] a tenant who has come in under the mortgagor after the mortgage, and has neither paid the rent to the mortgagee, nor been evicted by him either actually or constructively before tlie tlay of payment, cannot defend an action by the mortgagor for that rent : Wheeler v. Brans- combe, 5 Q. B. 373. As the mortgagor ceases to be entitled to the rents upon the mortgagee's giving the tenant notice, [and the tenant's paying them to him,] it follows that the mortgagor cannot afterwards maintain anj' action for use and occu- pation against him, either for rent which accrued due after the notice, or for rent which accrued due before the notice, but was unpaid at the time when the notice was given. In the former case the defence amounts to a denial of the contract alleged, which avers the defendant to have used and occupied the land Ijy tlic permission of the plaintifl', the mortgagor. But in the latter case, viz., where tlie rent became due before notice, but was unpaid at the time of notice, the tenant confesses that the right of action once existed, but avoids it l)y matter ex 2)ost facto, viz., by the subsequent notice from the mortgagee, Waddilove v. Barnett, 4 Dowl. P. C. 347; 2 Bing. N. C. 538. [It appears to be now^ settled that at common law the mere notice without payment or eviction is not a defence to an action by the mortgagor against the tenant, either for rent due before ( Wilton v. Dunn, 17 Q. B. 294 ; Hickman V. Machin, 4 II. & N. 71G), or after the notice {Hickman v. Maehin). Secondly, there remains to be considered the situation, relatively to the mortgagee, of the mortgagor's tenant whore the lease has been made ))y the mortgagor under the statutory power given by s. 18 of the Conveyancing Act, 1881. It is by that section enacted, with reference to mortgages made after 1 Jan. 1882, that " a mortgagor of land wliile in possession shall, as against every incumbrancer, have, by virtue of this Act, power to make from time to time any such lease of the mortgaged land, or any part thereof, as is in tliat section described and authorised." The remainder of the section will be found set out in the note to Kecch v. Hall, ante, p. 549. Further, s. 10 of the same Act is as follows: — "Rent reserved by a lease and the benefit of every covenant or provision therein contained having reference to the 892 MOSS V. GALLIMORE. subject-matter thereof, and on the lessee's part to be observed or performed, and every condition of re-entry and other condition therein contained, shall be annexed and incident to, and shall go with the reversionary estate in the land, or in any part tliereof , immediately expectant on the term granted by the lease, notwithstanding severance of that reversionary estate, and sliall be capable of being recovered, received, enforced, and taken advantage of l)y the person from time to time entitled, subject to the term, to tlie income of the whole or any part, as the case may require, of the land leased." Sect. 11 provides that the obligation of the lessor's covenants sliall lilcewise run witli the reversion so far as the lessor has power to bind the person entitled to the reversion. These sections apply only to leases made after the commencement of the Act in the case of leases of the kind now under consideration. Tlie object aimed at by the above sections would seem to be to provide that wliile on the one hand a lease by a mortgagor in possession is to be valid against and binding on the mortgagee, on the other hand, the mortgagee, at anv rate on giving notice or going into possession, is at once to have under sucli lease every right Avhicli he would have had if he himself had been tlie lessor. The wording of the sections, however, is somewliat obscure, and it would be premature to express an opinion whether tlieir combined efl'ect is as above suggested. It should be observed that the power given by s. 18 may be excluded, modified, or enlarged by the express terms of the instrument itself. The Judicature Act, 1873, provides, s. 25, sub-s. 5, that "a mortgagor entitled for the time being to the possession or receipt of tlie rents and profits of any land as to Avhicli no notice of his intention to take possession or to enter into the receipt of the rents and profits thereof shall be given by the mortgagee, may sue for such possession or for the I'ecovery of sucli rents or profits, or to prevent or recover damages in respect of any trespass or other wrong relative thereto in his own name only, unless the cause of action arises upon a lease or other contract made by him jointly witli any otlier person."] I| will conclude this note by taking notice of a case Avhich sometimes occurs; viz., that of a lease purporting to be by mortgagor and mortgagee jointly : such an instrument operates as a lease by the mortgagee, with a con- firmation by the mortgagor, until the estate of the former has been deter- mined by paying off" the mortgage-money, and then it becomes the lease of the mortgagor, and the confirmation of the mortgagee, and it follow[ed] that, if [before the Common Law Procedure Act, 1852] ejectment was brought against the tenant during the mortgagee's estate, the demise must have been laid in the name of the mortgagee; if afterwards, in that of the mortgagor ; but a joint demise laid in the declaration would not have been improper : Doe dem. Barney v. Adams, 2 Tyrwh. 289. See Doe dem. Barker V. Goldsmith, Ibid. 710. [A right of entry reserved to the mortgagor only in a lease by mortgagor and mortgagee was (before the Conveyancing Act, 1881) held not to be avail- able to the plaintifls in ejectment by the mortgagor and mortgagee : Saunders V. Merry weather, 3 H. & C. 902, 35 L. J. Exch. 115. The mortgagee could not re-enter, because no right of re-entry was reserved to him ; the mortgagor could not, because he had no legal interest in the reversion, and tlie facts of the case excluded an estoppel.] When a mortgagor and mortgagee join in a lease, and the covenants to pay MOSS V. GALLIMORE. 893 rent and repair are ■with the mortgagor and his assigns only, the [assignee of the] mortgagee cannot [unless by virtue of the Conveyancing Act, 1881] sue on those covenants, because collateral to his interest in the land : ]Vebh v. Russell, 3 T. R. 393 ; though the mortgagor might sue on them as covenants in gross : Stokes v. Russell, 3 T. R. 678, 1 H. Bl. 5G2. Where the mortgagor and mortgagee join in a lease, containing an express covenant by the mort- gagor for quiet enjoyment, no covenant from both can be implied. Smith v. PUkington, 1 Tj'rwh. 313. In Harold v. Whitaker, 11 Q. B. 147, 163, in a lease by the mortgagor and mortgagee which recited the mortgage, the red- dendum Avas to the mortgagee, his executors, &c., during the continuance of the mortgage, and after payment and satisfaction thereof, to the mortgagor or his executors, &c., and the lessee covenanted to and with the mortgagee, and also to and with the mortgagor, to pay the rent " on the several days and times, and in manner as the same was reserved and made payable." The covenant was holden to be several. Position of a tenant under a lease made by a mortgagor in refer- ence to the payment of rent : — (l) Where the lease is prior to the mortgage. — The mortgagee, merely upon giving notice to the tenant in possession, is entitled to receive all rent accruing and becoming due subsequently to the execution of the mortgage, including whatever is in arrear at the time of giving notice as well as that which ac- crues and becomes due afterwards. Russell v. Allen, 2 Allen 42 ; Mirick v. Hoppin, 118 Mass. 582 ; King v. Housatonic R. R. Co., 45 Conn. 226, 4 Kent's Com. (6th ed.) 165, Washburn Real Property 531 (although in Pennsylvania, Myers v. White, 1 Rawle 353 at 355, it was said the mortgagee could not compel the tenant to j^ay the rent to him, whether the lease was exe- cuted before or after the mortgage). If, however, the possession is reserved to the mortgagor until breach, the mortgagee is not entitled to receive the rent until default, and after giving notice of his claim and requiring payment to himself ; Taylor's Landlord and Tenant § 121 (8th ed.). The mortgagee is not entitled to the rent which became due before the execution of the mortgage ; Burden v. Tha3'er, 3 Mete. 76 ; King v. Housatonic R. R. Co., uhi sujyra. Payment of rent to the mort- gagor before notice from the mortgagee is a good defence to an action lor the rent by the mortgagee ; Russell v. Allen, ubi supra ; Fitchburg Corp. v. Melven, 15 Mass. 268. If, however, the mortgagee, before or at the time rent becomes due, notify the tenant to pay the rent to him, the tenant cannot defend by proving previous payment to the mortgagor ; De Xicholls v. 894 MOSS V. GALLIMORE. Saunders, L. R. 5 C. P. 589 ; Cook v. Guerra, L. R. 7 C. P. 132. Attornment by the tenant to the mortgagee is not necessary to enable the latter to maintain an action for rent; Burden v. Thayer, idn sujyra. (II) Where the lease is subsequent to the mortgage and made by a mortgagor -while remaining in possession of the mortgaged estate. — At common law the mortgagee has a right to the im- mediate possession of the mortgaged estate ; Colman v. Packard, 16 Mass. 39 ; Rockwell v. Bradley, 2 Conn. 1 ; Blaney v. Bearee, 2 Greenl. 132. The mortgagee cannot compel the tenant, there being no privity of contract or estate between them, to pay the rent to himself ; jNIcKircher v. Hawle}', 10 Johns. 289 ; Rogers v. Humphreys, 4 Ad. & El. 299 at 313 ; thus, the mortgagee cannot by mere notice compel the tenant to pay the rent to himself; Bart- lett V. Hitchcock, 10 Bradw. (111.) 871 ; Evans v. Elliott, 9 Ad. & El. 342; Drakford v. Turk, 75 Ala. 339, though formerly held otherwise in Alabama; Hutchinson v. Bearing, 20 Ala. 798 ; and held otherwise in ^Maryland to-day ; Clark v. Abbott, 1 Md. Ch. 474. On the other hand, the mortgagee may consider the tenant as a trespasser or a disseisor and may maintain ejectment or a writ of entry against him ; Fitchburg Corp. v. ISIelven, ubi supra; Mass. Ins. Co. V. Wilson, 10 ]\Ietc. 126. But where the estate remains in the mortgagor until after foreclosure and sale, the mortgagee cannot treat the tenant as a trespasser until that time ; Simers V. Saltus, 3 Den. 214 at 219, and though the tenant attorn to the mortgagee before foreclosure and sale, it is no defence to an action by the mortgagor for the rent ; Hogsett v. Ellis, 17 Mich. 351. The mortgagee may eject the tenant without notice to quit ; Doe v. Mace, 7 Blackf . 2 ; Rockwell v. Bradley, ubi supra; Steadman v. Gassett, 18 Vt. 346 ; Bartlett v. Hitch- cock, ubi supra ; Comer v. Sheehan, 74 Ala. 452. A mortgagor, not having reserved possession to himself until breach, cannot make a lease which will be good against the mortgagee ; Keith V. Swan, 11 Mass. 216 ; Howell v. Schenck, 4 Zab. 89 at 91. Until there has been an actual entry by the mortgagee, or some act equivalent thereto has occurred, the mortgagee can maintain no action against the tenant for the recovery of rent, except upon an express promise to pay it ; Russell v. Allen, 2 Allen 42 at 44 ; Long v. Wade, 70 Me. 358 ; Kimball v. Lock- wood, 6 R. I. 138. When the mortgagee has entered and noti- fied the tenant to pay the rent to him, the tenant cannot defend an action for the rent by showing there is a prior mort- MOSS V. GALLIMOEE. 895 gage under which no entry has been made ; Cavis v. McClary, 5 N. H. 529. Though the entry of the mortgagee be ineffec- tual for the purpose of foreclosure, yet if notice be given to the tenant, he is entitled to subsequently accruing rents ; Cook V. Johnson, 121 Mass. 326. Where the mortgagor owns the estate until the mortgagee enters for breach of condition, the mortgagee cannot, before entry for condition broken, recover rent due from the tenant of the mortgagor ; White v. Wear, 4 Mo. Ap. 341. Though the mortgagee cannot compel the lessee to become his tenant, yet on entry or demand the latter may attorn and pay the after-accruing rent to him ; Baldwin v. Walker, 21 Conn. 168 ; Welch v. Adams, 1 Mete. 494 ; Cook V. Johnson, ubi supra; Kimball v. Lockwood, ubi supra; Cavis V. McClary, ubi supra; but the tenant is not bound to attorn, and may consider himself as evicted ; Simers v. Saltus, 3 Den. 214. If, however, the tenant attorns, there Avill be a new ten- ancy and no liability upon the old lease ; thus in Doe v. Buck- nell, 8 C. tS: P. 566, it was held the lessee became tenant from year to year; and in Illinois, Gartside v. Outley, 58 111. 210, where there was no express contract between the mortgagee and the tenant, it was said the latter would become a tenant from year to year. Although there be no liability upon the old lease, yet if the tenant pay the mortgagee tlie rent due but unpaid before notice, the tenant will have a good defence against the mortgagor ; Waddilove v. Barnett, 4 Dowl. P. C. 347; 2 Bing. N. C. 538. "When can the tenant resist an action for the rent by the mort- gagor ? — (a) When the tenant has been evicted by the mort- gagee, or has attorned to him under threat of eviction ; Simers V. Saltus, 3 Den. 214 at 216 ; Jones v. Clark, 20 Johns. 51 at 62 ; Fitchburg Corp. v. Melven, 15 Mass. 268 ; Hickman v. Machin, 4 H. & N. 716 at 720. Eviction, however, is a good defence only for the rent that falls due subsequently, but not for that due when eviction took place ; Carpenter v. Parker, 3 C. B. (N. S.) 206. (J) When, after notice from the mortgagee, the tenant has paid him not only the rent falling due subsequently to the 'notice, but also the rent due but unpaid before the notice ; Waddilove v. Barnett, 4 Dowling P. C. 347; 2 Bing. N. C. 538. But mere notice from the mortgagee, without eviction or payment, is no defence to an action by the mortgagor against the tenant, either for rent due before or after notice ; Wilton V. Dunn, 17 Q. B. 294 ; Hickman v. Macliin, 4 H. & N. 716. WHITCOMB V. WHITING. EASTER. — 21 GEORGES. [reported dougl. G52.] ITie acknowledgment of one out of several drawers of a joint and several promissory note takes it out of the Statute of Limita- tions as against the others^ and may he given in evidence in a separate action against any of the others. (Secus since the statutes mentioned in the notes.^ Declaration, in the common form, on a promissory note executed by the defendant. Fleas : the general issue, and non assumpsit infra sex annos. Replication: assumpsit infra sex annos. The cause was tried before Hotham., Baron, at the last assizes for Hampshire. The plaintiff produced a joint and several note executed by the defendant and three others ; and, having proved payment, by one of the others, of interest on the note, and part of the principle, within six years, and the Judge thinkinof that was sufficient to take the case out of the statute, as against the defendant, a verdict was found for the plaintiff. On Friday, the 4th of May, a rule was granted to show cause why there should not be a new trial on the motion of Lawrence^ who cited Bland v. Haslerig (a) ; and this day in support of the application, he contended, that the plaintiff', by suing the defendant separately, had treated this note exactly as if it had been signed only by the defendant ; and, therefore, whatever might have been the case in a joint action, in this case the acts of the other parties were clearly not evidence against him. The acknowledgment of a party himself does not amount to a new promise, but is only evidence of a promise. This was determined in the case of Heylin v. Hastings (<^), reported in (a) C. B. H. 1 & 2 W. & M. ; 2 Ventr. 150. (5) B. R. H. 10 Wil. 3. 896 WHITCOMB V. WHITING, 897 Salkelcl (a), and 12 Modern (/>) ; and in Hemmings v. Robin- son (c), it was decided, that the confession of nobody but a defendant himself is evidence against him. That hist case "svas an action by an indorsee of a note, against the drawer, and the pLaintiff proved the acknowledgment of a mesne indorser that the indorsement on the back of the note was in his hand- writing ; but the court was of opinion, that this was not evi- dence against the drawer, but that the indorsement must be proved. It would certainly open a door to fraud and collusion, if this sort of evidence were, in any case, to be admitted. A plaintiff might get a jomt di-awer to make an acknowledgment, or to pay part, in order to recover the whole, although it had been already paid. Lord Mansfield. — The question here, is only whether the action is barred by the Statute of Limitations. When cases of fraud appear, they Avill be determined on their own circum- stances. Payment hy one is paymemt for all, the one acting, virtually, as agent for the rest ; and, in the same manner, an admission hy one is an admission hy all; and the law raises the promise to pay, when the debt is admitted to be due. Willes, Justice. — The defendant has had the advantage of the partial payment, and, therefore, must be bound by it. Ashurst and Buller, Justices, of the same opinion. The rule discharged (d). [The decision in the principal case as to the efl'ect of acknowledgment or payment hy a joint contractor as regards tlie Statute of Limitations has been reversed by 9 Geo. 4, c. 14, sects. 1 and 2 (commonly called Lord Tenterden's Act), supplemented by sect. 14 of " The Mercantile Law Amendment Act, (a) 1 Salk. 29. defendant, who was found to have (6) 223. promised within the six years. That (c) C. B. M. 6 Geo. 2 ; Barnes 4to case may be explained on the manner ed. 436. of the finding; for as the plea was (d) The case of Haslerig v. Bland, joint, and the replication must have cited [in the preceding page], was a alleged a joint undertaking, the ver- joint action against four; the plea, diet did not find what the plaintiff tTie Statute of Limitations; and a had bound himself to prove. But verdict, that one of the defendants according to the principle in the case did assume witliin six years, and that of WhUcomb v. Whiting, the jury the others did not ; and it was held ought to have considered the prom- by Pollexfen, C. J., Powel, and Ro/cebtj ise of one as the promise of all, and (against Vcntris), that the plaintiff" therefore should have found a gen- could not have judgment against the eral verdict against all. 898 "WHITCOMB V. WHITING. 1856" (19 & 20 Vict. c. 98), as to which section see Cockrill v. Spm'kes, 1 H. & C. 699. These enactments have thus rendered comparatively useless, and therefore caused the oniission here of a considerable portion of the notes formerly appended to this case. The remainder of the notes has not lost its utility, as it relates chiefly to the question, Avhat proof of payment suflices, as against the person achiaUy payiiir/, to save the Statute of Limitations, hav- ing regard to the provisions of sect. 1 of Lord Tenterden's Act. That sec- tion enacts that, " in actions of debt, or upon the case grounded upon any simple contract, no acknowledgment or promise by words only shall be deemed sufficient evidence of a new or continuing contract, whereby to take any case out of the operation of the said enactments " {suhintdl. Statutes of Limitation), "or either of them, or to deprive any party of the benefit thereof, unless such acknowledgment or promise shall be made or contained by or in some writing to be signed by the party chargeable thereby, pro- vided that nothing herein contained shall alter or take away or lessen the effect of any payment vf any principal or interest made by any person what- soever."] Where one of two joint drawers of a l)iU of exchange became bankrupt, and the holder of the bill proved, not upon the bill, but for goods sold, exhibiting the bill as a security, it was held that receipt of dividends on that proof would not take the case out of the Statute of Limitations, as against the other drawer: Brandram v. Wharton, 1 B. & A. 4G3. In that case the dividend was paid upon the debt proved, and its payment could not, without straining the facts, be treated as a payment on account of the bill ; but in general, ivhere there are several securities for a debt, a general payment on account revives them all; thus where a promissory note was made by a surety as security for part of the amount of a mortgage, payment of interest on the mortgage was held enough to take the note out of the operation of the statute: Doidinfj v. Ford, 11 M. & W. 329. A payment by the assignee of an insolvent joint maker [was held to be in- suflScient, even before the Mercantile Law Amendment Act, 185G, to take the case out of the statute either as against the insolvent or the other makers], Davis V. Edwards, 7 Exch. 22. [See also ex parte Topping, 34 L. J. Bankr. 44.] Where parish officers borrowed money, and gave a promissory note to secure it, signed A. B. &c., clmrch wardens, C. D. &c., overseers, " or others for the time being," it was held that this form of signature was evidence of an authority to the succeeding officers to pay on account, so as to keep the note alive. Jones v. Hughes, 5 Exch. 104; [see 22 & 23 Vict. c. 49, ss. 1 and 4.] In Neve v. Hollands and Wife [18 Q. B. 2G2], 21 L. J. 289, payment by a wife, without authority of her husband, on account of a note made by them jointly before marriage, was held insufficient to keep it alive as against him and her. With respect to the mode of proving a payment [to take the case out of the Statute of Limitations], it has been held that if goods be given and accepted in part payment within six years, that [saves] the case [from] the statute. Hooper v. Stephens, 4 A. & E. 71 ; Hart v. N^ash, 2 C. M. & R. 337. But an open account between two tradesmen, each charging the other with goods, though containing items within six years, has not, without an appro- priation of the charges on one side in liquidation of those on the other, the effect of avoiding the bar ; for the exception in 9 G. 4 is in favour of pay- ments only: Cottam v. Partridge, 4 M. & Gr. 271, 4 Scott, N. 11. 819, S. C. ; TVHITCOMB V. WHITING. 899 Clarke v. Alexander, 8 Scott, N. R. 147; Foster v. Daicher, 6 Exch. 839. "VVliere, however, there is such an appropriation by going through the account and striiiing a balance, witli an agreement express or implied that the balance only shall be paid, such a transaction is equivalent to a payment of the lesser debt and a repayment of the amount in liquidation of so much of the greater debt; and so it operates to save the balance of the larger debt from the effect of the statute: Ashby v. James, 11 M. & W. 542, per Alderson, B.; Scholey v. Watton, 12 M. & W. i>lO, per Parke, B. \_Boherts v. Shaio, 4 B. & S. 44, 32 L. J. Q. B. 308.] A payment on account of the creditor in part liquidation of the debt has of course the same effect as a payment to himself : Hart v. Stephens, 6 Q. B. 937 ; Worthington v. Grimsditch, 7 Q. B. 479 ; see Clarke v. Hooper, 10 Bing. 450. In Bodfjer v. Arch, 10 Exch. 333, the maintenance of a child agreed to be taken in satisfaction of interest, was held to be a payment and to take the case out of the statute. [In Amos v. Smith, 1 H. & C. 238, the trustees under a marriage settlement lent the husband at intei'est, on the security of his and A.'s bond conditioned for payment of interest, some of the trust money settled to the separate use of the wife. No interest was paid, but the wife gave the trustees receipts for it under an arrangement that it should be considered as paid, and it was held that the transaction amounted to a pay- ment or satisfaction so as to take the case out of the statute. So also 3Iaber V. Maber, L. R. 2 Ex. 153; 36 L. J. Ex. 70.] Stat. 9 G. 4, cap. 14, also enacts, [s. 3,] " that no indorsement or memoran- dum of anj' payment made upon any bill of exchange, promissory note, or other writing, (that is, other Avriting constituting the contract according to the dictum of Cresswell, J., in Bradley v. James, 13 C. B. 822, whei'e it was licld that the statute does not exclude such a memorandum altogether, but only makes it insufficient of itself), i)j', or in behalf of, the person to whom such payment is made, shall be deemed sufficient proof of payment to take the case out of the operation of the Statutes of Limitation; " and, that part payment may have that effect, it must be observed, that there are two requisites besides proof of the naked fact of payment : — 1st, it must appear that the payment w- as made on account of a larger debt; 2udly, that that debt is the one sued for : Tippetts v. Heane, 4 Tyrwh. 775. See the judgment of Parke, B., there, and see Holme v. Green, 1 Stark. 488. In Evans v. Davis, 4 A. & E. 840; Worthiufjton v. Grimsditch, stipra ; Burn v. Boulton, 2 C. B. 47G ; \_ColUnson v. Margesson, 27 L. J. Exch. 305; and Goodwin v. Parton, 41 L. T. N. S. 568,] the evidence was held sufficient for that purpose. In Wavgh V. Co2)e, 6 M. & W. 829, the evidence was held insufficient. See further Mills V. Foickes, 5 Bing. N. C. 455; Moore v. Strong, 1 Bing. N. C. 442. The first requisite above mentioned involves this also, that the paj'ment be made under the circumstances which do not rebut the implication of a promise to pay the balance ; because it is only as giving rise to such an impli- cation, and not by any specific effect of its own, that a payment operates : Wainman v. Kinman, I Exch. 118 [and see Bigg v. ifoggridge, 2 H. & X. 567; Morgan v. Roidunds, L. R. 7 Q. B. 493, 41 L. J. Q. B. 187] ; yet see Goddard V. Ingram, 3 Q. B. 839 ; \_Ex piarte lopping, 34 L. J. Bankr. 44,] for which reason the payment must also be before action brought." Bateman v. Pindar, 3 Q. B. 574, overruling Yea v. Funraker, 2 Burr. 1099. The second requisite mentioned aijove has led to a discussion whether, where there are two clear and undisputed debts, either can be taken out of the statute by evidence of a part payment not specifically appropriated by the 900 WHITCOMB Y. AVHITING. clebtoi'; upon which question tlic Court of Common Pleas is said to have incidentally expressed an opinion in the negative : Burn v. BouUon, 2 C. B. 476 ; but, it [has since been held] to be [in general] a proper question for the jury, whether the payment was made generally on account of Avhatevcr mii?lit be due from tlie debtor at the time, and if so both the debts would l)e saved. [ Walker v. Butler, G E. & B. 506; and see Cullinson v. Margesson, 27 L. J. Exch. 305, per Martin, B.] In Mills v. Fowkes, 5 Bing. N. C. 455, it was held that though a creditor has a right to appropriate a payment made generally to an item barred by the Statute of Limitations, still sucli payment is not a payment on account so as to take the I'emainder of tlie demand out of the statute. Accord, Waller v. Lacy, 1 Sc. N. R. 180; 1 M. & Gr. 54, S. C. ; \_Nash V. Ilodr/son, 1 Kay, 650; S. C. on appeal, 6 De G. M. & G. 474,jjer Knight-Bruce, L. J. ; contra Turner, L. J. In that case the defendant being indebted to the plaintiff on three promis- sory notes, one of which was for 200Z., on application by the plaintiff for payment of interest, paid him 5^ on account generally. At the time of the payment tlie 200?. note was the only one of the notes whicli was not barred by the statute, and tlie i)laintiff appropriated the 5/. to payment of interest on that note ; and upon the question whether the payment tooiv that note out of the statute, tlie Court of Appeal was agreed that it did; liut the judgment of Kniglit-Unice, L. J., proceeded upon tlie ground of tlie appropriation. The Lord Chancellor (Cranworth) said, " The cases show that a simple pay- ment of money does not take a debt out of the statute, and that the payment must be of a smaller sum on account of a larger. What I deduce from them is, that where a payment is made as principal, the effect of it will l)e to take out of the statute any debt Avhich is not baiTed at the time of payment, but that it will not revive a debt which is then barred ; and that whei'e tliere are several debts, tlie inference will be that the payment is to be attributed to those not burred. What may be the effect whei'e there is a single debt con- sisting of several items, some of wliich are barred, and some not, may be doubtful. Exactly the same principle applies if the payment is made in respect of interest. It appears to me that in this case, thei-e being three promissory notes, two barred and one not barred, and a payment made on account of interest generally, this payment must be attributed to the note which was not barred; and if this were not so, the only effect would be to treat it as a payment on account of all, so that in either case the 2001. note would be kept alive."] In Willis V. Nevham, 3 Y. & J. 518, the Court of Exchequer held, that a verbal acknowledgment of part payment of a debt was not sufficient proof thereof within this statute ; the import of which they construed to be, that in no case should a mere verbal acknowledgment take a case out of the Statute of Limitations, whether that acknowledgment were of the existence of the debt, or of the fact of payment. Vide Trentham v. Deverill, 3 Bing. N. C. 397. The authority of Willis v. Newham was, however, repeatedly questioned, though it was acted upon in Bayleij v. Ashton, 12 A. & E. 493; 4 P. & D. 204, S. C. ; Maghee v. O'Neil, 7 M. & W. 531 ; Eastioood v. Savile, 9 M. & W. 615; Clarke v. Alexander, 8 Scott, N. R. 147, and the case has been at length overruled in Cleave v. Jones, 6 Exch. 573, where the demand was upon a promissory note for 350L and interest, and the Statute of Limitations was saved by evidence of an unsigned entry in the defendant's book in her handwriting " 1843, Cleave's interest on 350Z. — 11. 10s." [And see Echcards V. Jones, 1 Kay & J. 534. In Newboidd v. iitnith, 29 Ch. D. 882, an entry by WHITCOMB Y. WHITING. 901 the deceased creditor in his diary, " Smitli, C E., cash on account of rent and interest 50/-," Avas lield inadmissible in evidence on belialf oi' tlie creditor as an admission tliat interest liad been paid, so as to revive tlie right barred under tlie Statutes of Limitations to bring a foreclosure action.] It Avas held, even before Cleave v. Jones, that written and signed evidence of appropriation may be confirmed by parol, Bevan v. Gethiny, 3 Q. B. 740; and that if the payment be proved as a fact, the appropriation of that pay- ment to the debt which it is sought to take out of the Statute of Limitations may be proved by an admission, Waters v. T'omlcins, 2 C. M. & R. 72G. That action Avas brought to recover the amount of five notes, one for 100?., two for 50?., and two for 20?. each; the evidence upon an issue joined on plea of actio non accrevit infra sex annas was, that within six j'ears the maker, the defendant, on application to him, said, his wife would have called on the holder and paid money on account of the interest on 200?., but for their child's illness; about a fortnight after Avhich, the wife called, and paid 15s., without saying on what account; on another occasion the defendant sent word to the testator that his wife was in Wales, or would have called icith the interest; and that the wife on other occasions made payments to the testator, who said, at the time, he should be glad if the interest were more regularly paid. This evidence was held to warrant the jury in finding a verdict for the plaintifl". See, too, Bevan v. Gething, 3 Q. B. 740, where, however, Coleridge, J., expressed a doubt as to the correctness in principle of Waters v. Tomkins. Nor need the writing Avhich is relied on for the purpose of taking a debt out of the operation of the statute specify its amount; that may be proved by parol: Bird v. Gammon, 3 Bing. N. C. 888; Waller v. Lacy, 1 M. & Gr. 54, 1 Sc. N. R. 186, S. C. ; Dickenson v. HatfieU, 1 Moo. & R. 141 ; Chealeij v. Dalby, 4 You. & Coll. 228; [Sidivell v. Mason, 2 H. & N. 30r,.] Wlien a bill is given on account of part of a debt, and is paid by the di'aAvee, the statute is not avoided by such payment, though it may be by the deliA'ery of the bill, Irving v. Veitch,3 M. & W. 90; Ttirneij v. Dodwell, 3 E. & B. 13G. Whether the promise implied from part-payment to the holder of a negotiable instrument is itself negotiable, qucere. See Cripj^s v. Davis, 12 M. & W. 159. [Gale v. Capern, 1 A. & E. 104, per Patteson, J. It is perhaps convenient to refer shortly in this place to a question which has not been discussed in the earlier editions of these notes, viz., what is a sufficient written acknowledgment to save the statutes, apart from the proviso as to payment in section 1 of Lord Tenterden's Act. The principles are thus summed up by Mellish, L. J., in In re River Steamer Co., Mitchell's Claim, L. R. G Ch. at p. 828, which passage is cited by Cleasby, B., in Skeet V. Lindsay, 2 Ex. D. 316, 46 L. J. Ex. 251. " There must be one of these three things to take the case out of the statute. Either there must be an acknowledgment of the debt fi-om which a promise to pay is to be implied, or secondly, there must be an unconditional promise to pay the debt, or' thirdly, there nnist be a conditional promise to pay the debt and evidence- that the condition has been performed." With regard to the first of these three propositions, it should be observed that by a long train of authorities commencing Avith Tanner v. Smart, 6 B. & C. 603, it is conclusively settled that an absolute acknoAA'ledgment of the debt by itself is sufficient, because you may imply from it an unconditional promise to pay the debt, per Cleasby, B., in Skeet v. Lindsay, %ihi sup. A recent deci- sion on tliis point Avill be found in Green v. Humphreys, 26 Ch. D. 474, 53 L. 902 WHITCOMB V. WHITING. J. Ch. 625, where the Court of Appeal, reversing the decision of Pollock, B., held that there was not siitlicient acknowledgment. These being the acknowledged principles, the application of them to partic- ular cases for the purpose of determining whether particular written expres- sions amounted to an absolute acknowledgment or an unconditional pi'omise, has naturally been productive of much litigation, and in some instances has caused a remarkable diversity of judicial opinion. See the cases collected in Chasemore v. Turner, L. R. 10 Q. B. 500, 45 L. J. Q. B. 66; Quincetjv. S'harpe, 1 Ex. D. 72, 45 L. J. Ex. 347, and Meyerhoff v. Froehlich, 4 C. P. D. 63. In the first of these cases, the following letter written by the defendant to one of the plaintifls was put in at the trial at Nisi Prius. " My dear Sir. The old account between us which has been standing over so long has not escaped our memory, and as soon as we can get our aftairs arranged, we will see you are paid. Perhaps in the meantime you will let your clerk send me an account of how it stands." At the trial Martin, B., ruled that the letter was sufficient to take the case out of the Statute of Limitations, and directed a verdict for the plaintiffs, refusing leave to move, but gave a stay of execu- tion. The majority of the Court of Queen's Bench, viz., Blackburn and Archibald, JJ., held, Mellor, J., dissenting, that it was insufficient without further evidence and made absolute a rule for a new trial. In the Exchequer Chamber, however (Lord Coleridge, C. J., dissenting), this judgment was reversed by Cleasby, Pollock and Amphlett, BB., and Grove and Denman, JJ., and the verdict for the plaintiff stood. But if there be an express promise there can be none by implication, and if the express promise be a conditional one the condition must be fulfilled : Mojcrhoff v. Froehlich, 4 C. P. D. 63, 48 L. J. C. P. 4L If there is an unqualified admission that tliere is a pending account between two parties which has to be settled, that " is an admission from which you may infer a promise that when the account is settled the balance shall be Tpak\," jjer Kay, J., Banner v. Berridge, 18 Ch. D. 274. An acknowledgment of a simple contract debt is insufficient to save the statute, unless made to the creditor or his agent, Fuller v. Bedman, 26 Beav. 614; but an acknowledgment of a specialty debt will suffice, under 3 & 4 W. 4, c. 42, s. 5, though made to a stranger, Moodie v. Bannister, 4 Drewr. 432.] In Bodfjer v. Arch, 10 Ex. 333, it was held that payment to any person acting as representative of an intestate accrued for the benefit of the admin- istrator when appointed. \_Semhle that an acknowledgment in a letter written without prejudice is of no avail if an offer contained in it is not accepted : Re River Steamer Com- pany, L. R. 6 Ch. 822.] There is in the 9 G. 4, c. 14, a proviso, "that no memorandum or other writing made necessary by this act shall be deemed to be an agreement within any Stamp Act." The effect of this appears to be to render the stamp unnecessary where the agreement is put in merely for the purpose of avoid- ing the Statute of Limitations, the debt having been proved aliunde. But if it were put in as the only evidence of a debt though more than six years old, semble that it would require a stamp, Morris v. Dixon, 4 A. & E. 845. The proviso has been held to be inapplicable to the case of an unstamped promis- sory note, Jones v. Ryder, 4 M. & W. 32 ; [but where a promissory note made in 1846 was indorsed by the maker and the date altered to 1866, it was held that a new stamp was not necessary, Bourdin v. Greenwood, L. R. 13 Eq. 281, 41 L. J. Ch. 73.] WHITCOMB V. WHITIisG. 903 1. What claims barred by the statute can be revived. — It seems that the claim, if not necessarily an actual debt, must be an obligation arising from an executed consideration and con- sequently implied in law. A count in special assumpsit on an express contract which has been barred by the statute cannot, in accordance with prin- ciple, be sustained by evidence of a new promise within six years ; Carshore v. Huyck, 6 Barb. 583. The difficulty is that in such a case, as the plaintiff has to allege and prove that a promise was actually made by the de- fendant at a certain time, the reply is a departure from the original statement of the cause of action. Where indebitatus assumj^sit will lie, there is no difficulty, for, from the loan, or the sale of deliver}-, or other facts, the law implies a promise to pay, a promise of which there is a new breach on each recurring day that the debt continues and remains unpaid. Primd facie this relates back to the period when the debt was contracted, but, as the plaintiff has only to state and prove facts from which such promise can arise, there is nothing inconsistent with this in the promise arising at any other time. For example, the plaintiff alleges that the defendant became indebted for money had and received, &c., and then avers a promise to pay, not existing in fact, but a legal inference from the premises and sustained by any evidence of indebtedness at the time the action was begun. To a plea of the statute, the plaintiff can show that the money was "had and received" within six years, or an acknoAvledgment of the existence of the debt within that period which renders evidence unnecessary; Haymaker v. Haymaker, 4 Oh. St. 272 ; Mc Curry v. McKesson, 4 Jon. 510. The replication that the cause of action accrued within six years is not a departure but in the nature of a new assignment, indicating that the plaintiff relies, not on the obligation which arose in the first instance from the receipt of the consideration, but on the promise which the law implies on the indebtedness being shown at some later period by evidence of an express promise, a part payment, or other acknowledgment. Precisely the same principles apply when a new promise is relied upon to support an action on a promissory note barred by the statute. 904 WHITCOMP. V ^VMITTNG. The plaintiff sets out the making of the note and avers a consequent liability and promise to pay, not existing in fact but implied in law from the existence of the liability. Whenever by an acknowledgment or new promise at any later period, the obligation can be shown to still exist, in the same way another implied promise to pay arises. Hence such an acknowledgment may be given in evidence to suppose the implied promise without any variance from the declaration ; Leaper v. Tatton, 16 East 420. It is well settled that a promise or acknowledgment will not affect the operation of the statute on actions of tort ; Oothout V. Thompson, 20 Johns. 277 ; Ott v. Whitworth, 8 Humph. 494. 2. "What will remove the bar of the statute. — A. An express promise to pay tlie debt. All the cases agree on this point. B. A promise to pay it, not express but implied from the circumstances ; Johnson v. Evans, 8 Gill 155 ; Ross v. Ross, 20 Ala. 105 ; Reener v. Crull, 19 111. 109 ; Ditch v. Vollhardt, 82 111. 134 ; Sprogle v. Allen, 38 Md. 331 ; Oakson v. Beach, 36 Iowa 171 ; Sigourney v. Drury, 14 Pick. 390 ; Phelps v. Wil- liamson, 26 Vt. 230; Joslyn v. Smith, 13 Vt. 357. The important consideration is, under what circumstances a promise will be implied. " A jury will be authorized and bound to infer such promise from a (1) clear, (2) unconditional and unqualified admission of the existence of the debt, (3) at the time of such admission, if, (4) unaccompanied with any refusal to pay or declaration indicative of any intention to insist on the Statute of Limita- tions as a bar." Shaw, C. J., in Sigourney v. Drury, 14 Pick. 390 ; Knight v. House, 29 Md. 194. (1) That the acknowledgment must be " clem- " and unam- biguous ; see Bryan v. Ware, 20 Ala. 687 ; Grant v. Ashley, 7 Eng. 762 ; Bell v. Crawford, 8 Gratt. 119 ; Ten Eyck v. Wing, 1 Mich. 40 ; Penley v, Waterhouse, 3 Clarke 418 ; Stewart v. Rickens, 4 Zab. 427 ; Conwell v. Buchanan, 7 Blackf . 537 ; Rob- bins V. Farley, 2 Strob. 348 ; Dickinson v. McCanry, 5 Ga. 486 McLellan v. Albee, 17 Me. 184 ; Pray v. Garcelon, 17 Me. 145 Porter v. Hill, 4 Greenlf. 41 ; Ventris v. Shaw, 14 N. H. 422 Shaw V. Newell, 1 R. I. 488 ; Frey v. Kirk, 4 Gill and J. 509 Taylor v. Stedman, 11 Ired. 447 ; Cross v. Connor, 14 Vt. 394 WHITCOMB V. WHITING. 905 White V. Dow, 23 Vt. 300 ; Ayres v. Richards, 12 111. 146 ; Har- rison V. Handley, 1 Bibb 443. It need not be made ex2:)ressly or in words, bnt may be im- plied from any act which necessarily presupposes the existence of the debt and an obligation to pay it ; Bowman v. Downer, 22 Vt. 532 ; Spangler v. McDaniel, 3 Ind. 275 ; Grayson v. Taylor, 14 Texas 672. The burden is on the plaintiff, so he must make it appear that the debt was actually due and that the debtor, knowing this, meant to acknowledge a liability to pay it; Gibson v. Grosvenor, 4 Gray 606 ; Magberry v. Willoughby, 5 Neb. 370 ; Wakeman v. Sherman, 5 Seld. 88 ; Chambers v. Garland, 3 Iowa 322 ; Pritchard v. Howell, 1 Wis. 131 ; Smith v. Fly, 24 Texas 345 ; Gilmer v. McMurray, 7 Jon. 479 ; Bangs v. Hall, 2 Pick. 368 ; Moore v. Hyman, 13 Ired. 272 ; Goodwin v. Buz- zell, 35 Vt. 9 ; Evans v. Carey, 29 Ala. 99 ; Wilcox v. Williams 5 Nev. 206 ; Leigh v. Linthecum, 30 Texas 100. It is not enough for the debtor to admit that the debt is due, unless it appears that he means to pay it ; Wakeman v. Sher- man, 5 Seld. 85 ; Gray v. McDowell, 6 Bush 375. Though, in the absence of other evidence, a man that admits a debt will be presumed willing to pay it ; Chambers v. Gar- land, 3 Iowa 322 ; Stockett v. Sasscer, 8 Md. 374 ; Pritchard v. Howell, 1 Wis. 131; Evans v. Carey, 29 Ala. 99; Phelps v. WiUiarason, 26 Vt. 230. The acknowledgment must be shown to relate to the debt which is the cause of action ; Nash v. Hodgson, 1 Kay 650 ; Stafford v. Bryan, 3 Wend. 532 ; Hart v. Boyt, 54 Miss. 547 ; Martin v. Broach, 6 Ga. 21 ; Lockhart v. Eaves, Dud. (S. C.) 321 ; Arey v. Stephenson, 11 Ired. 86 ; Brailsford v. James, 3 Strob. 171 ; Broxley v. Gayle, 19 Ala. 151. But this Avill be presumed unless the existence of more than one debt is shown ; Bailey v. Crane, 21 Pick. 223 ; Woodbridge V. Allen, 12 Mete. 470 ; Gibson v. Grosvenor, 4 Gray 606 . Coles V. Kelsey, 2 Texas 541 ; Smith v. Deeper, 10 Ired. 86 : Moore v. Hyman, 13 Ired. 272 ; Brown v. State Bank, 5 Eng. 134 ; Wood v. Wylds, 6 Eng. 754 ; Guy v. Tams, 6 Gill 82 ; Penley v. Waterhouse, 3 Clark 418; Mitchell v. Clay, 8 Tex. 413; Dobbs v. Humphries, 10 Bing. 446; Corey v. Bath, 35 N. H. 530, 550; Boyd v. Hurlbert, 41 Mo. 264; Whitney v. Bigelow, 4 Pick. 110. 906 WHITCOMB V. WHITING. To the contrary, apparently, however, see Robl)ins v. Farley, 2 Strob. 348; Faison v. Bowden, 72 N. C. 405; Pray v. Garce- lon, 5 Shep. 145. Where there is an unsettled account containing several charges or items, especially if part of them are barred by the statute and part not, a general admission of indebtedness, not naming the amount due or mentioning any specific portion, is too indefinite to affect the statute ; Hull v. Richardson, 19 Penn. St. 388 ; Morgan v. Walton, 4 Pa. St. 321 ; Harbold v. Kuntz, 16 Pa. St. 210 ; Suter v. Sheeler, 22 Pa. St. 308 ; Clarke V. Dutcher, 9 Cow. 674; Buckingham v. Smith, 23 Conn. 453; Peebles v. Mason, 2 Dev. 367 ; Allen v. Allen, 1 Bush 60 ; Hale V. Hale, 4 Humph. 183. When there is no doubt as to what debt is meant, it is not necessary that the amount should be mentioned in the acknowl- edgment, provided it is certain and liquidated ; Thompson v. French, 10 Yerg. 452 ; Hazlebaker v. Reeves, 2 Jon. 264 ; Davis V. Steiner, 14 Pa. St. 275 ; Dinsmore v. Dinsmore, 21 Me. 433. A promise to " settle " an unliquidated claim, or to " pay what is due," or to "refer," may or may not be a sufficient acknowledgment. It is a question of intention. In most cases it has been held insufficient. It is ambiguous whether the debtor means to pay or merely to adjust or liquidate ; Peebles V. Mason, 2 Dev. 367 ; Faison v. Bowden, 72 N. C. 405 ; Suter V. Sheeler, 22 Penn. St. 308 ; Harbold v. Kuntz, 16 Penn. St. 210 ; Emerson v. Miller, 27 Penn. St. 278 ; Sutton v. Burruss, 9 Leigh, 381 ; Bell v. Crawford, 8 Gratt. 110 ; Leigh v. Linthe- cum, 30 Texas 100 ; BrodcUe v. Johnson, 1 Sneed 464 ; Mills V. Taber, 5 Jon. 412 ; Loftin v. Aldridge, 3 Jon. 328 ; Moore v. Hyman, 13 Ired. 272 ; Mask v. PhiUer, 32 Miss. 237 ; Shaw v. Allen, 1 Bus. 58; Bray ton v. Rockwell, 41 Vt. 621. In others, very similar remarks have been held to remove the bar ; Hunter v. Kittredge, 41 Yt. 621 ; Walker v. Butler, 6 E. & B. 506 ; Higdon v. Stewart, 17 Md. 105 ; WarUck v. Peter- son, 58 Me. 408. When the debt is unliquidated, as a rule, the amount must be specified which the debtor is willing to pay. A promise not to plead the statute has commonly been re- garded as the same thing as a promise to pay the debt ; Pad- dock V. Colby, 18 Yt. 485 ; Brown v. Bank, 5 Eng. 134 ; Smith V. Leeper, 10 Ired. 86 ; Randon v. Toby, 11 How. 493 ; Cooper v. WHITCO>EB V. WHITING. 907 Parker, 25 Vt. 502; Noyes v. Hall, 28 Vt. 645; Utica Ins. Co. V. Bloodgood, 4 Wend. 652 ; Allen v. Webster, 15 Wend. 284. Part Payment of a debt whether in money, note, or goods is usually intended as an admission of its existence and conse- quently has the same effect as any other unqualified acknowl- edgment; Winchell v. Hicks, 18 N. Y. 559; Shoemaker v. Benedict, Kern. 176, 185 ; Isley v. Jewett, 2 Mete. 168 ; Sibley v. Lumbert, 30 Me. 253. It must ap})ear that it was intended as a part payment of a greater sum ; prima facie a payment is intended as a discharge wholly, or j^ro tanto without relation to anything else ; Liver- more V. Rand, 26 N. H. 85 ; Pond v. Williams, 1 Gray 630 ; Shoemaker v. Benedict, 1 Kern, 176 ; Smith v. Eastman, 3 Cush. 355 ; Prenatt v. Runyon, 12 Ind. 174. It must be considered in the light of all the surrounding circumstances ; Smith v. Eastman, 3 Cush. 355 ; Hale v. Morse, 49 Conn. 481 ; Jewett v. Petit, 4 Mich. 508 ; Bell v. Crawford, 8 Gratt. 110 ; Da\as v. Amy, 2 Graft. 412 ; and should go to the jury like any other fact ; Hollis v. Palmer, 2 Bing. (N. C.) 713 ; Hodge V. Manley, 25 Vt. 210 ; Armstead v. Brooke, 18 Ark. 521 ; Livermore v. Rand, 26 N. H. 85 ; Arnold v. Downing, 11 Barb. 554. The payment of interest is usually an admission that the principal is due and payable ; Sanford v. Hayes, 19 Conn. 591 ; Marcelin v. The Creditors, 21 La. An. 423 ; Fryeburg v. Osgood, 21 ]\Ie. 176. But a part payment of principal is not necessarily any acknowledgment as to interest ; Collyer v. Willock, 4 Bing. 313. When there are several obligations contracted at different times, and a general payment without appropriation by the debtor, the creditor can usually appropriate it most advanta- geously to himself and revive that portion, if any, of the obliga- tions barred by the statute, or apply it generally to the whole indebtedness ; Peck v. N. Y. Steamship Co., 5 Bosw. 225 ; Dyer v. Walker, 54 Me. 18. Some cases hold that he can apply it to what debt he pleases, but cannot distribute it so as to take several debts out of the statute ; Ayre v. Hawkins, 10 Yt. 28 ; Goodwin v. Buzzell, 35 Vt. 9. In many of those states where an acknowledgment or new 908 WHITCOMB V. WHITING. promise is required by the statute to be in writing, an excep- tion is made of an acknowledgment by part payment which may be shown by parol evidence ; McLaren v. McMartin, 36 N. Y. 88; Sibley v. Lumbert, 30 Me. 253; Egery v. Decrew, 53 Me. 392 ; Ketchem v. Hill, 42 Ind. 64. The rule is different in Georgia where a writing is required in a^Ll cases ; Caldwell v. Ferrell, 20 Ga. 94 ; Holland v. Chaffin, 22 Ga. 343. An endorsement of a part payment on a note, not made by the debtor, is no evidence that the payment was made ; Porter v. Blood, 5 Pick. 54; Jones v. Jones, 4 N. H. 219; Chandler v. Lawrance, 3 Mich. 261 ; but if made by the creditor before the statute has run it can go to the jury as an admission against interest, and consequently available for both parties ; Roseboom v. Billington, 17 Johns. 182 ; Clapp v. Ingersol, 11 Me. 83 ; Concklin v. Pearson, 1 Rich. 391 ; Haven v. Hacheway, 20 Me. 245 ; Smith v. Simms, 9 Ga. 418 ; Young v. Perkins, 29 Minn. 173 ; Maskell v. Pooley, 12 L. An. 661. In several states statutes require an endorsement to be signed by the debtor, in order to be in itself sufficient evidence of payment. (2) Where an acknowledgment is " qualified " or " eondi- tional" the bar of the statute is not removed until the terms or conditions are fulfilled ; Cocks v. Weeks, 7 Hill 45 ; Farmers' Bank v. Clarke, 4 Leigh 603 ; Luna v. Edmiston, 5 Sneed 159 ; Hayden v. Johnson, 26 Vt. 758 ; Mattocks v. Chadwick, 71 Me. 313 ; Wachler v. Alljee, 80 111. 47 ; Shaw v. Newell, 1 R. I. 488 ; Sweet v. Franklin, 7 R. I. 355 ; Wake- man V. Sherman, 4 Seld. 85 ; Stewart v. Reckless, 4 Zab. 427 ; Bell V. Morrison, 1 Pet. 351 ; Farley v. Kustenbader, 3 Penn. St. 418 ; Pearson v. Darrington, 31 Ala. 227 ; McGlensey v. Fleming, 4 Dev. & B. 129; Wolfe v. Fleming, 1 Ired. 290; Brenneman v. Edwards, 55 Iowa 374 ; Smith v. Eastman, 3 Cush. 355 ; Mumford v. Freeman, 8 Mete. 432. (3) The admission must show a willingness to assume an immediate ohligation, and not be a mere expression of hope or expectation ; Blakeman v. Fonda, 41 Conn. 565 ; Norton v. Shepard, 48 Conn. 141 ; Ecker v. First Nat. Bank, 59 Md. 291 ; Kirby v. Mills, 78 N. C. 124 ; Marseilles v. Kenton, 17 Pa. St. 238 ; Oakes v. Mitchell, 15 Me. 360 ; or an offer to compromise or a payment by way of compromise ; Brenneman v. Edwards, 55 Iowa 374; Winchester v. Sibley, 132 Mass. 273. (4) There must be nothing in what is said at the time of the AVHITC031U Y. ^VHITI^'G. 909 unqualified admission or in the attendant acts of the defendant, inconsistent with an intention to pay the obligation ; Fries v. Boisselet, 9 S. & R. 128 ; Church v. Feterow, 2 R. & W. 301 ; Hogan V. Bear, 5 Watts 111 ; Zacharias v. Zacharias, 23 Penn. St. 452; Wesner v. Stern, 97 Pa. St. 322; Wctzell v. Bussard, 11 Wheat. 315 ; Moore v. Bank of Columbia, G Pet. 92 ; Allen v. Webster, 15 Wend. 284; Stafford v. Richardson, 15 Wend. 302; Philps V. Stewon, 12 Vt. 256 ; Manning v. Wheeler, 13 N. H. 486 ; Thayer v. Mills, 14 Me. 300 ; Goldsby v. Gentle, 5 Blackf. 436 ; Hay v. Kramer, 2 W. & S. 137. Though the debtor will not be allowed to lull the creditor to sleep by ambiguovis lan- guage calculated to deceive him. When a debtor has once made his election to be bound, he cannot afterwards recede from it; Barley v. Crane, 21 Pick. 323; Mumford v. Freeman, 8 Meic. 432. The debtor may remove the bar as to part of a debt, and not as to all if he so wills ; Graham v. Keys, 29 Penn. St. 189 ; McDonald v. Under- bill, 10 Bush 585. 3. By ■whom must an acknowledgment or promise be made ? — A. In G-eneral. It seems well settled that an acknowledg- ment by one can never be used against another who has not authorized or ratified it, when the contract of each is several, though founded on the same consideration ; Bowcbe v. Hampton, 6 Rich. 208 ; Stowers v. Blackburn, 21 La. An. 127. For ex- ample, the acknowledgment of the endorser of a note will not operate against the maker or that of the maker against the endorser; Bibb v. Peyton, 11 S. & M. 275; Dean v. Munroe, 32 Ga. 28. As to tlie effect of payment or acknowledgment I)}' one on the obligation of the other in case of principal and surety, see Haight v. Avery, 10 Hun 252; Nat. Bank v. ]>allou, 49 N. Y. 155; Dele van "^r. Cotton (Wise.), 9 N. W. Rep. 926, 928. Tlie joint nature of the obligation must a[)})ear aliunde and not merely by the acknowledgment ; Hackley v. Hastie, 3 Johns. 536 ; Shelton v. Cocke 3 Munf. 240 ; Smith v. Ludlow, 9 Johns. 267. • B. Joint Debtor or Contractor. — The decision in Whitcomb V. Whiting, as to the effect, as regards the Statute of Limita- tions, of unauthorized acknowledgment or pa3nnent by a joint contractor, is law to-day in but very few of the American states or territories. In some of them the courts have from the first 910 WHITCOI^IB V. WHITING. refused to follow it; in most of them the contrary has been established by statute. The general rule now is that in all cases the promise or acknowledgment must be made by the debtor whom it is sought to charge, or his authorized agent ; Smith V. Ryan, 66 N. Y. 352 ; Kelly v. Weber, 27 Hun 8. This rule has been established by the Courts in the following states : — Florida : Tate v. Clements, 16 Florida 339. Indiana : Con- key V. Barbour, 22 Ind. 196. JYetv ffampshire : Whipple v. Stevens, 22 N. H. 219. Pennsylvania : Coleman v. Fobes, 22 Pa. St. 156. Tennessee : Belotes Exrs. v. Wynne, 7 Yer. 534 ; and also seems to be the law in Illinois. In the following states and territories it has been embodied in statute, and in all but two or three of them the promise or acknowledgment, if not by part payment, must be made in writing signed by the party to be charged: — Alabama : Code 1876, sec. 3240. Arizona : Compiled Laws 1877, ch. 35, sec. 2108. Arka7isas : Digest of Stats. 1874, ch. 88, sees. 4134, 4135. California : Code of Civil Procedure, sec. 10360. Colorado : General Laws 1877, ch. 60, sec. 19. Dakota: Revised Code 1877, part II. ch. 6, sec. 73. G-eorgia: Code 1873, part II. title VII. ch. 9, art 9, sees. 2930-2934. Idaho : General Laws 1880, 1881, sec. 178. Illinois : Revised Stats. 1881, ch. 83, sec. 16. Indiana : Statutes 1876, vol. II. part II. ch. 1, art. 12, sees. 220-223. Iowa : Revised Code 1880, title XVII. ch. 2, sec. 2539. Kansas : Compiled Laws, ch. 80, art. 3, sec. 24. Louisiana : R. S. 1876, sec. 2818. 3Iaine : Revised Stats. 1883, ch. 81, sees. 97-100. 3Iassachusetts : Public Stat- utes 1882, title V. ch. 197, sees. 15-18. Michigan : Compiled Laws 1871, sees. 7164, 7165. Minnesota : General Stats, ch. 66, title II. sec. 24. Mississijjpi : Revised Code, 1880, ch. 76, sec. 2688. Missouri : Revised Stats. 1879, ch. 48, sees. 3248, 3250. Montana: Revised Stats. 1879, fu'st div., title III. sec. 53. Nebraska : Compiled Stats, part II. title II. sec. 22. Nevada : Compiled Laws 1873, sec. 1045. Neio Jersey : Revision of 1874, Lim. of actions, sees. 10,11. New Mexico: General Laws, art. 32, ch. 73, sec. 13. New York : Code of Civil Procedure, sec. 395. North Carolina: Code of Civil Procedure, ch. 17, title IV. sees. 50-52. Ohio: Revised Stats. 1880, sec. 4992. Oregon : Civil Code, ch. 1, title II. sec. 24. South Carolina : Code of Procedure, sec, 133. Texas : Revised Stats. 1879, art. WHITCOMB V. WHITING. 911 8219. Utah: Compiled Laws 1876, title XVIII. Vermont: Revised Laws 1880, cli. 50, sees. 971-977. Virginia : Code 1873, title XLV. ch. 146, sec. 10. Wasliington Territory : Code, sec. 44. West Vin/inia : Revised Stats. 1870, eh. 119, sec. 8. Wiscoiisin: Revised Stats. 1878, sees. 4243-4248. Wyominu : Compiled Laws 1876, ch. 13, sec. 21. This leaves only four states where possibly it would be still followed : Connecticut, Delaware, Maryland, and Rhode Island; Caldwell v. Sigourney, 19 Conn. 37 ; Schindel v. Gates, 46 Md. 604; Wheelock v. Doolittle, 18 R. I. 440. In jNIaryland, however, there is the limitation that the ac- knowledgment must be made before the statute has once run, on the ground that the common interest which alone makes the admission of one debtor binding on another ceases whenever the statute takes effect, and, therefore, they are no more respon- sible for each other's words and actions than mere strangers. Ratification may take the place of authorization, but mere neglect by one not actually present to disclaim the act of a co- contractor on hearing of it, will not be enough to ratify his ac- knoAvledgment ; Littlefield v. Littlefield, 91 N. Y. 203 ; Gould V. Cayuo^i Bank, 86 N. Y. 75 ; Glick v. Crist, 37 Ohio St. 388 ; Mainzinger v. Mohr, 41 Mich. 685 ; Whipple v. Stevens, 2 Fos. 227. C. Partner. — Before dissolution, in accordance with the general rule, one partner can bind another by an acknowledg- ment, if given in the ordinary course of business, the partner- ship relation making each the agent of the others. After dissolution they are regarded in the same way as other joint obligors; Baker v. Stackpole, 9 Cow. 420; Yale v. Eames, 1 Mete. 486 ; National Bank v. Norton, 1 Hill 572 : Mitchell v. Ostrom, 2 Hill 520 j Schoneman v. Fegley, 7 Pa. St. 433; Clark V. Brown, 86 Pa. St. 502; Lazarus v. Fuller, 89 Pa. St. 331; Daniel v. Nelson, 10 B. Mon. 316: Hamilton v. Summers, 12 B. Mon. 11 ; Hamilton v. Seaman, 1 Car. 185; Palmer v. Dodge, 4 Ohio St. 21 ; Tate v. Clements, 16 Fla. 339 ; Hance v. Hair, 25 Ohio St. 349; Campbell v. Brown, 86 N. C. 376. So where Whitcomb v. ^Miiting is followed, one partner of such firm can still by an acknowledgment revive a debt or con- tract as to all ; Austin v. Bostwick, 9 Conn. 496 ; Caldwell v. Sigourney, 19 Conn. 37 ; Turner v. Ross, 1 R. I. 88 ; Wheelock V. Doolittle, 18 R. I. 440. And where Wliitcomb v. Whiting is 912 WHITCOMB V. WHITING. not followed a fortiori^ unless expressly authorized, he can re- vive it only as against himself ; Bell v. Morrison, 1 Pet. 351 ; Exeter Bank v. Sullivan, 6 N. H. 12-1 ; Steele v. Jennings, 1 McMull. 297; Beloles Ex'rs v. Wynne, 7 Yerg. 534; Muse v. Donelson, 2 Humph. 166 : Yandes v. Le Favour, 2 Blackf. 371 ; Dickerson v. Turner, 12 Ind. 239; Lowther v. Chapell, 8 Ala. 353 ; Levy v. Cadet, 17 S. & R. 126 ; Searight v. Craighead, 1 P. & W. 135 ; Fonte v. Bacon, 24 Miss. 156 ; Briscol v. Anke- tell, 28 Miss. 361 ; Palmer v. Dodge, 4 Ohio St. 21, 36 ; Myatts V. Bell, 41 Ala. 222; Bush v. Stowell, 71 Pa. St. 208; Kallen- bach V. Dickinson, 100 111. 427; Mayberry v. Willoughby, 5 Neb. 370. Payment or other acknowledgment by one partner of a dis- solved firm, under the direction of the other, binds both ; Haight V. Avery, 16 Hun 252 ; McConnell v. Merrill, 53 Vt. 149. The same is true, in all similar cases, for instance, when two of three sureties referred the creditor to the principal, who made a partial payment, the debt was held to be renewed as to them, but not against the third surety who was ignorant of the transaction ; Winchell v. Hicks, 18 N. Y. 559. Proof that the firm was dissolved will not be a sufiicient answer to a promise or acknowledgment by one of the partners, unless it is shown that notice was given to the creditor ; Tap- pan V. Kimball, 30 N. H. 136 ; Forbes v. Garfield, 32 Hun 389. D. Executor or Administrator. — In many of the earlier and some recent decisions an acknowledgment or promise by an executor or administrator is held to have the same effect in removing the bar of the statute as if it had been made by the debtor in his Ufetime ; Whitaker v. "Whitaker, 6 Johns. 112 ; Larason v. Lambert, 7 Halls 247 ; Chambers v. Fennemore, 4 Harr. 368 ; Baxter v. Penniman, 8 Mass. 133 ; Emerson v. Thompson, 16 Mass. 429; Foster v. Starkie, 12 Cush. 324; Whitney v. Bigelow, 4 Peck 110, 113 ; Semmes v. Magruder, 10 Md. 242; Walch v. McGrath, 59, Iowa 519; Black v. Do- man, 51 Mo. 31 ; Ecker v. First Nat. Bank, 59 Md. 291 ; Griffin V. The Justices, 17 En. 96 ; Shreve v. Joyce, 36 N. J. Law 44 ; Northcut V. Wilkinson, 12 B. Mon. 408 ; Badger v. Gilmore, 33 N. H. 361. The weight of authority is now against this proposition ; Oakes v. Mitchell, 15 Me. 360 ; Bunker v. Athearn, 35 Me. 364; Bloodgood V. Bruen, 8 N. Y. 362 ; Cayuga Bank v. Bennett, 5 AVHITCOMB V. WHITING. 913 Hiil 236 ; Mead v. Jenkins, 4 Redf. 369 (bnt see contra later New York cases ; Cotter v. Quinlan, 2 Dem, 29 ; Matter of ])unn, 5 Dem. 124); Ciples v. Alexander. 2 Cons. R. 767; Tullock V. Dunn, Ry. & M. 446 ; Caruthers v. Mardiss, 3 Ala. 599 ; Conoway v. Spicer, 5 llarr. 425 ; Fritz v. Thomas, 1 Whart. 71 ; Reynolds v. Hamilton, 7 Watts 420 ; Forney v. Benedict, 5 Penn. St. 225; Clark v. Maquire, 35 Penn. St. 259; Patter- son V. Cobb, 4 Fla. 481 ; Henderson v. Illsley, 11 Sm. & M. 9 ; Peck V. Botsford, 7 Conn. 172; Steel v. Steel, 2 Jon. 64; Moore V. HillelHout. 14 Texas 312. A few cases have attempted to draw a distinction between a promise or part payment and a mere acknowledgment, but there seems none in principle ; Baxter v. Penniman, 8 Mass. 133 ; Bloodgood V. Bruen, 8 N. Y. 362. In others, it has been intimated that an acknowledgment or promise l)y all of several executors or administrators will re- move the l)ar of the statute Avhen the same by part of their number would not ; Conoway v. Spicer, 2 Harr. 425 ; Hueston V. Hueston, 2 Ohio St. 488 ; Bloodgood v. Bruen, 4 N. Y, 362, 370 ; Caruthers v. Mardiss, 3 Ala. 599 ; Cayuga Bank v. Bennett, 5 Hill 236. This distinction has been expressly repudiated in many states, and it has been held that an express promise by one of several executors or administrators will take the case out of the statute as to all ; Johnson v. Beardslee, 15 Johns. 3 ; Briggs V. Ex'rs of Starke, 2 Cons. R. Ill ; Hords Admrs. v. Lee, 4 Mon. 36 ; Griffin v. Justices, 17 Ga. 96 ; Shreve v. Joyce, 36 N. J. Law 44. The matter is now quite generally regulated by statute. E. Assifpiee of Insolvent Debtor. — In Clark v. Chambers (Neb. 1885), 22 N. W. Rep. 229, it was held, citing ; Marienthal V. Master, 16 Ohio 566 ; Stoddard v. Doane, 7 Gray (Mass.) 387; Pickett V. King, 38 Barb. 193 ; Roosevelt v. Mark, 6 Johns. Ch. 266 ; that the payment of a dividend by the assignee would not take the residue of the debt out of the statute, the Court re- marking, '•'- While it cannot be said that the argument is all on the side of the above cases, and there are high authorities hold- ing the other way of tliinking, yet I think the weight of reason as well as of authority is with them. (4) To ■whom must the promise or acknovylcdgmeut be made ? — Li many of the earlier cases it was held that any acknowledg- 914 WHITCOMB V. WHITING. ment from which the continued existence of debt could be inferred was sufficient whether made to a third party or to the plaintiff in the action; Newkirk v. Campbell, 5 Ilarr. 380; McRae v. Kennon, 1 Ala. 225 ; Soulden v. Van Rensselaer, 9 Wend. 297 ; Titus v. Ash, 24 N. H. 319 ; Philips v. Peters, 21 Barb. 351 ; Watkins v. Stevens, 4 Barb. 168 ; Carshore v. Huyck, 6 Barb. 585 ; Whitney v. Bigelow, 4 Pick. 110 ; Minkler v. Mink- ler, 16 Vt. 193 ; Oliver v. Gray, 1 Harr. & G. 204 ; Bird v. Adams, 7 Ga. 505 ; St. John v. Garron, 4 Post. 225 ; Edmundson v. Penny, 1 Penn. St. 335 ; Hassenger v. Solus, 5 S. & R. 416 ; Evans v. Carey, 29 Ala. 99 ; Criswell v. Criswell. The later cases make a distinction between an acknowledg- ment to a third person, not intended to reach the ear of the creditor, and one where the expectation was that it Avould be conveyed to him and influence his conduct. In the first in- stance holding that the bar of the statute was not removed ; Bloodgood V. Bruen, 4 Sandf. 427; Wakeman v. Sherman, 5 Sandf. 85 ; Kyle v. Wells, 17 Penn. St. 286 ; Gillingham v. Gil- lingham, 17 Penn. St. 302; Pearson v. Darrington, 32 Ala. 227; Allen V. Collier, 70 Mo. 138 ; McGrew v. Forsyth, 80 111. 47 ; Fletcher v. Updike, 67 Barb. 364; Reeves v. Correll, 19 111. 189 ; McKinney v. Snyder, 78 Penn. St. 497 ; but that it was in the latter ; Winterton v. Winterton, 7 Hun 230 ; Wakeman v. Sherman, 5 Sel. 85, 92 ; 2 Story Eq. Seel. 1521 ; Collett v. Frazier, 3 Jon. Eq. 80 ; Jordan v. Hubbard, 26 Ala. 433 ; Evans v. Carey, 29 Ala. 99 ; Criswell v. Criswell, 59 Pa. St. 130. It seems to be a question of intention in any case, and the proper test should be whether the debtor intends to make an irrevocable engagement to pay the debt to the creditor. This appearing, it is immaterial to whom the acknowledgment or promise is made ; Bloodgood v. Bruen, 11 N. Y. 362, 367 ; Evans v. Carey, 29 Ala. 99 ; Criswell v. Criswell, 59 Pa. St. 130 ; Black v. White, 13 S. C. 37 ; DeForest v. Warner, 98 N. Y. 217. The weight of authority seems to establish that a promise or acknowledgment by the maker or acceptor of a promissory note or bill of exchange, made to one of the parties, will take the debt out of the statute as to all, though the one to whom it was made had at the time transferred the instrument ; Dean v. Hewit, 5 Wend. 257 ; Pinkerton v. Bailey, 8 Wend. 600 ; Bad- WHITCOMB V. WHITING. 915 ger V. Gilmore, 33 N. H. 361; Way v. Sperry, 6 Cush. 288; Cripps V. Davis, 12 M. & W. 159. 5. When. — The distinction above alluded to as made in Maryland, between the office of an acknowledgment made be- fore the statute has run, and one made afterwards, has been noticed elsewhere, but the reason given seems to limit it to the case of co-obligor. The fact that the statute has run, may, however, be very material as showing intention. An act that would indicate an intention to acknowledge a debt before the statute had run, might not be sufficient to show such intention afterwards ; Matter of Dunn, 5 Dem. (N. Y.) 124. 6. Form of pleading. — It is Avell settled, in accordance with the foregoing, that in actions at law the new promise is proper matter for a replieation, and not for tlie original statement of the cause of action ; Guy v. Tams, 6 Gill 82 ; Little v. Blunt, 9 Pick. 488 ; :Martin v. Williams, 17 Johns. 380 ; Van Allen v. Feltz, 32 Barb. 139; Biscoe v. Stone, 6 Eng. 39 ; Tompkins y. Brown, 1 Dem. 247 ; Watkins v. Stevens, 4 Barb. 168 ; Titus V. Ash, 24 N. H. 319 ; Shackleford v. Douglass, 31 Miss. 95 ; Way V. Sperry, 6 Cush. 238. The reason is often stated to be that the new promise is only a matter of evidence and does not create a new cause of action ; Dean v, Hewit, 5 Wend. 257 ; Carshore v. Huyck, 6 Barb. 583. This, as we have seen, is not strictly correct. The recovery is on a new cause of action, though, owing to the genei'al form of j)leading, the declaration does not show it. The mistake seems to have been in regarding the declaration as on the original cause of action, whereas from the first it is based on the one arising at the time of the new promise or acknowledg- ment, and the reply by way of new assignment makes this clear ; Keener v. Crull, 19 111. 189: Briscoe v. Anketell, 28 Miss. 361; Stewart v. Reckless, 4 Zab. 427, 429. MOSTYN V. FABRIGAS. MICHAELMAS. — lo GEO. 3, B. R. [UKPORTEU COWr. Hil.] Trespass and false imprisonment lies in England hy a native Minorquin, against a governor of Minorca^ for such injury committed hy him in 3Iinorca. Jf the impriso7i')ne)it teas justifiable, the governor must plead his authority specially (a). On the 8tli of -luiie, in last term, Mr. Justice G-ould came personally into court to acknowledge his seal affixed to a bill of exceptions in this case; and errors having been assigned thereupon, they Avere now argued. This was an action of trespass, brought in the Court of Com- mon Pleas, by Anthony Fabrigas against John jMostyn, for an assault and false imprisonment : in which the plaintiff declared that the defendant on the 1st of September, in the year 1771, with force and arms, «&:c., made an assault upon the said Anthou}' at Minorca (towit^ at London aforesaid, in the parish of St. Mary-le-Bou\ in the word of Cheap, and beat, wounded, and ill-treated him, and then and there imprisoned him, and kept and detained him in prison there for a long time, (to tvif) for the space of ten months, without any reasonable or probable cause, contrary to the laws and customs of this realm, and against the will of the said Anthony, and compelled him to depart from Minorca aforesaid, where he was then dwelling and resident, and carried, and caused to be carried, the said Anthony from Minorca, aforesaid, to Carthagena, in the domin- ions of the King of Spain, &c., to the plaintiff's damage of 10,000Z. The defendant pleaded, 1st, Not guilty ; upon which issue (a) See Briant v. Clntten, 5 Dowl. Q>C>. 916 MDSTYX V. FABIIIGAS. 917 was joined. 2iidly. A special justification, that the defendant at that time, &c., and long before, was goveiiior of the said Ishmd of Minorca, and during all that time was invested with and did exercise all the powers, privileges, and authorities, civil and military, belonging to the government of the said Island of Minorca, in parts beyond the seas ; and the said Anthony, before the said time when, &c., to ivit, on the said 1st of Sep- tember, in the year aforesaid, at the Island of Minorca afore- said, was guilty of a riot, and was endeavouring to raise a mutiny among the inhabitants of the said island, in breach of the peace ; whereupon the said John, so being governor of the said island of Minorca as aforesaid, at the same time, when, &c., in order to preserve the peace and government of the said island, was obliged to and did then and there order the said Anthony to be banished from the said island of Jlinorca; and, in order to banish the said Anthony, did then and there gently lay hands upon the said Anthony, and did then and there seize and arrest him, and did keep and detain the said Anthony, before he could be banished from the said island, for a short space of time, to wit, for the space of six days then next following; and afterwards, to ivit, on the 7th of September, in the year aforesaid, at Minorca, aforesaid, did carry and cause to be carried the said Anthony on board a certain vessel from the island of Minorca aforesaid to Carthagena aforesaid, as it was lawful for him to do, for the cause aforesaid ; which are the same making the said assault upon the said Anthony in the first count of the said declaration mentioned, and beating and ill-treating him, and imprisoning him, and keeping and detaining him in prison for the said space or time, in the said first count of the said declaration mentioned, and compelling the said Anthony to depart from Minorca aforesaid, and carrying and causing to be carried the said Anthony from Minorca to Carthagena, in the dominions of the King of Spain, whereof the said Anthony has above complained against him, and this he is ready to verify ; wherefore he prays judgment, &c., without this, that the said John was gnilty of the said trespass, assault and imprisonment, "at the parish of St. Mary-le-Bow, in the ward of Cheap, or else- where, out of the said island of Minorca aforesaid, Replication de injuria sud prop)rid absque tali causd. At the trial the jury gave a verdict for the plaintiff, upon both issues, with 3,000?. damages, and 90Z. costs. 918 MOSTVN V. FAUKKiAS. The substance of the evidence, as stated by the l)ill ol" excep- tions, was as follows : on behalf of tlie plaintiff, that the de- fendant at the island of Minorca on the 17th of September, 1771, seized the plaintiff, and, without any trial, imprisoned him for the space of six days against his will, and banished him for the space of twelve months from the said island of Minorca to Carthagena in Spain. On behalf of the defendant, that the plaintiff was a native of Minorca and at the time of seizing, imprisoning, and banishing him as aforesaid, was an inhabitant of and residing in the uh-raval of St. Phillip's, in the said island; that Minorca was ceded to the crown of Great Britain, by the treaty of Utrecht, in the year 1718. That the Minor- quins are in general governed by the Spanish laws, but when it serves their purpose plead the Unglish laws : that there are certain magistrates, called the Chief Justice Criminal, and the Chief Justice Civil, in the said island : that the said island is divided into four districts, exclusive of the Arraval of St Phil- lip's ; which the witness always understood to be separate and distinct from the others, and under the immediate order of the governor ; so that no magistrate of 3Iahon could go there to exercise any function, without leave tirst had from the governor : that the Arraval of St. Phillip's is surrf)unded by a line wall on one side, and on the other by the sea, and is called the Hot/alt//, where the governor has greater power than anywhere else in the island ; and where the judges cannot interfere but by the governor's consent : that nothing can be executed in the Arraval but by the governor's leave, and the judges have applied to him, the witness, for the governor's leave to execute process there. That for the trial of murder, and other great offences committed within the said Arraval, upon application to the governor, he generally appoints the assesseur criminel of Mahon, and for lesser offences, the mustastaph ; and that the said John Mostyn, at the time of the seizing, imprisoning, and banishing the said Anthony, was the governor of the said island of Minorca, by virtue of certain letters patent of his present Majesty. Being so governor of the said island, he caused the said Anthony to be seized, imprisoned, and banished, as aforesaid, without any reasonable or probable cause, or any other matter alleged in his plea, or any act tending thereto. This case was argued this term by Mr. Puller, for the plain- tiff in error, and Mr. Peckham, for the defendant. Afterwards MOSTYN V. FABKIGAS. 919 in Hilary Term, 1775, by Mr. Serjeant Walke?-, for the plaintiff, and ]\Ir. Serjeant Glynn^ for the defendant. For the plaintiff in error. There are two questions, 1st, Whether in any case an action can be maintained in this country for an imprisonment committed at 3Iinorca, upon a native of that place ? 2ndly. Supposing an action will lie against any other person, whether it can be maintained against the governor acting as such in the peculiar district of the Arraval of St. Phillip's? In the discussion of both these questions, the constitution of the island of Minorca and of the Arraval of St. Phillip's., are material. Upon the record it appears, that by the treaty of Utrecht, the inhabitants had their own property and laws preserved to them. The record further states that the Arraval of St. Phillip's, where the present cause of action arose, is sub- ject to the immediate control and order of the governor only, and that no judge of the island can execute any function there, without the particular leave of the governor for that purpose. 1st. If that be so, and the lex loci differs from the law of this countr}-; the lex loci must decide, and not the law of this coun- try. The case of Robinson v. Bland, 2 Bur. 1078, does not interfere with this position ; for the doctrine laid down in that case is, that where a transaction is entered into between British subjects with a view to the law of England, the law of the place can never be the rule which is to govern. But Avhere an act is done, as in this case, which by the law of England would be a crime, but in the country where it is committed is no crime at all, the lex loci cannot but be the rule. It was so held by Lord Chief Justice Pratt, in the case of Pons v. Johiv- son, and in a like case of Ballister v. Johnson, sittings after Trinity Term, 1765. 2nd. In criminal cases, an offence committed in foreign parts cannot, except by particular statutes, be tried in this country : 1 Vesey, 246. East India Compang v. Campbell. If crimes com- mitted abroad cannot be tried here, much less ought civil in- juries, because the latter depend upon the i^olice and constitu- •tion of the country where they occur, and the same conduct may be actionable in one country, which is justifiable in anotlier. But in crimes, as murder, perjury, and many other offences, the laws of most countries take for their basis the law of God, and the law of nature ; and, therefore, though the trial 920 MOSTVN V. FAKUKIAS. be in a diiferent country from that in which the offence was comniitted, there is a greater prolxibility of distributing equal justice in such cases than in civil actions. In Keilwey, 202, it was held that the Court of Chancery cannot entertain a suit for dower in the Isle of 3Ian, though it is part of the territorial dominions of the crown of England. 3rd. The cases where the courts of Westminster have taken cognizance of transactions arising abroad, seem to be Avholly on contracts, where the laws of the foreign country have agreed with the laws of England, and between English subjects ; and even there it is done by a legal fiction ; namely, by supposing under a videlicet, that the cause of action did arise within tliis country, and that the place abroad lay either in London or Islinr/ton. But where it appears upon the face of the record, that the cause of action did arise in foreign parts, there it has been held that the court has no jurisdiction. 2 Lutw. 946. Assault and false imprisonment of the plaintiff, at Fort St. George, in the East Indies, in parts be- yond the seas ; viz., at London, in the parish of jSt. Marjj-le- Bo7V, in the ward of Cheap. It was resolved, by the Avliole court, that the declaration was ill, l:)ecause the trespass is sup- posed to be committed at Fort St. George, in parts beyond the seas, videlicet, in London; which is repugnant and absurd: and it was said, by the Chief Justice, that if a bond bore date at Paris, in the Kingdom of France, it is not triable here. In the present case, it does appear upon the record, that the offence complained of was committed in parts beyond the seas, and the defendant has concluded his plea with a traverse, that he was not guilty in London, in the parish of St. Mary-le-Boiv, or else- where out of the island of Minorca. Besides it stands ad- mitted by the plaintiff ; because if he had thought lit to have denied it, he should have made a new assignment, or have taken issue on the place. Therefore, as Justice Dodderidge says, in Latch, 4, the court must take notice, that the cause of action arose out of their jurisdiction. Before the statute of Jeofails, even in cases the most transi- tory, if the cause of action was laid in London, and there was a local justification, as at Oxford, the cause must have been tried at Oxford, and not in Loiidon. But the statute of Jeofails does not extend to Minorca : therefore, this case stands entirely upon the common law ; by which the trial is bad, and the ver- dict void. MOSTVX V. J'ABJllGAS. 921 The inconveniences of entertaining such an action in this country are many, but none can attend the rejecting it. For it must be determined by the hiw of this country, or by the law of the place where the act was done. If by our law, it would be the highest injustice, by making a man who has regulated his conduct by one law, amenable to another totally opposite. If by the law of Minorca^ how is it to be proved? There is no legal mode of certifying it, no process to compel the attendance of witnesses, or means to answer them. The consequence would be to encourage every disaffected or mutinous soldier to bring actions against his officer, and to put him upon his de- fence without the power of proving either the law or the facts of his case. Second point. If an action would lie against any other per- son, yet it cannot be maintained against the Governor of Mi- noi'ca, acting as such, Avithin the Arraval of St. PhiUip^s. The Governor of Minorca, at least within the district of St. Phillip" s is absolute : both the civil and criminal jurisdiction vest in him as the supreme power, and as such he is accountable to none but God. But supposing he were not absolute : in this case, the act complained of was done by him in a judicial capac- ity as criminal judge ; for which no man is answerable. 1 Salk. 396, aroenvelt v. BurweU ; 2 Mod. 218, Show. Pari. Cases, 24, Pntton v. Hoioell., are in point to this position ; but more particularly the last case, where in trespass, assault, and false imprisonment, the defendant justified as governor of Barbadoes, under an order from the council of state in Barbadoes., made by himself and the council, against the plaintiff (who was the deputy- governor), for maladministration in his office ; and the House of Lords determined, that the action would not lie here. All the grounds and reasons urged in that case, and all the incon- veniences pointed out against that action, hold strongly in the present. This is an action brought against the defendant for what he did as judge ; all the records and evidence, which relate to the transaction, are in Minorca., and cannot be brought liere : the laws there are different from what they are in this country ; and as it is said in the conclusion of that argument, government must be ver}" weak indeed, and the persons en- trusted v/ith it very uneasy, if they are subject to be chaiged with actions here, for what they do in that character in those countries. Therefore, unless that case can be materiallv distin- 922 MOSTVN V. FABRIGAS. guished from the present, it will l)e an authority, and the highest authority that can he adduced, to show that this action cannot be maintained ; and that the plaintiff in error is entitled to the judgment of the court. Mr. Peckham, for the defendant in error. 1st, the objection to the jurisdiction is now too late ; for wherever a party has once submitted to the jurisdiction of the court, he is for ever after precluded from making any objection to it. Year Book, 22 H. 6, fob 7; Co. Litt. 127, b.; T. Raym. 34- 1 Mod. 81; 2 Mod. 273 ; 2 Lord Raym. 884 ; 2 Vern. 483. Secondly. An action of trespass can be brought in England for any injury done abroad. It is a transitory action, and may be brought anywhere. Co. Litt. 282; 12 Co. 114; Co. Litt. 261, b., where Lord Coke says, that an obligation made beyond seas, at Bordeaux., in France., may be sued here in Unr/land, in what place the plaintiff will. Captain Parker brought an action of trespass and false imprisonment against Lord Clive, for injuries received in India., and it Avas never doubted l)ut that the action did lie. And at this time there is an action depending between Gregory Cojimaul, an Armenian mer- chant, and Governor Verelst, in which the cause of action arose in Bengal. A bill was filed by the Governor in the Exchequer for an injunction, which was granted ; but on appeal to the House of Lords, the injunction was dissolved; therefore, the Supreme Court of Judicature, by dissolving the injunction, acknowledged that an action of trespass could be maintained in England., though the cause of action arose in India. ^ Thirdly. There is no disability in the plaintiff which inca- pacitates him from bringing this action. Every person born within the ligeance of the King, though without the realm, is a natural-born subject, and as such, is entitled to sue in the King's courts. Co. Litt. 129. The plaintiff, though born in a conquered country, is a subject, and within the ligeance of the King:. 2 Burr. 858. In 1 Salk. 404, upon a bill to foreclose a mortgage in the island of Sa^-ke, the defendants pleaded to the jurisdiction, viz., that the island was governed by the laws of Normandy., and that the party ought to sue in the courts of the island, and appeal. But Lord Keeper Wright overruled the plea ; " other- wise there might be a failure of justice, if the Chancery could MOSTYN V. FABRIGAS. 923 not hold plea in such case, the party being here." In this case both the parties are upon the spot. In the case of Mamkissen- seat V. Barker^ upon a bill filed against the representatives of the Governor of Patna, for money due to him as his Banyan ; the defendant pleaded, that the plaintiff was an alien born, and an alien infidel, and therefore could have no suit here. But Lord Ilardivicke said, "as the plaintiff's was a mere personal demand, it was extremely clear that he might bring a bill in this court." And he overruled the defendant's plea without hearing one counsel on either side. Tlie case of the Countess of Derhjj^ Keilwey, 202, does not afTect the present question; for that was a claim of dower; which is a local action, and cannot, as a transitory action, be tried anywhere. The other cases from Latch and Lutwyche were either local actions, or questions upon demurrer ; there- fore, not applicable to the case before the court ; for a party may avail himself of many things upon a demurrer, which he cannot by a writ of error. The true distinction is between transitory and local actions ; the former of which may be tried anywhere ; the latter cannot ; and this is a transitory action. But there is one case which more particularly points out the distinction, which is the case of Mr. Skinner, referred to the twelve Judges from the council board. In the year 1657, when trade was open to the East Indies^ he possessed himself of a house and warehouse, which he filled Avith goods, at Jamhy, and he i^urchased of the King at Great Jamby the islands of Baretha. The agents of the East India Company assaulted his person, seized his warehouse, carried away his goods, and took and possessed themselves of the islands of Baretha. Upon this case it was propounded to the Judges, by an order from the King in council, dated the 12th April, 1G65, " Whether Mr. Skinner could have a full relief in any ordinary court of law ? " Their opinion was, " That his Majesty's ordinary courts of justice at West7ninster can give relief for taking away and spoiling his ship, goods, and papers, and assaulting and wounding his person, notwithstanding the same was done be- yond the seas. But that as to the detaining and possessing of the house and islands in the case mentioned, he is not reliev- able in an}' ordinary court of justice." It is manifest from this case that the twelve Judges held, that an action might be maintained here for spoiling his goods, and seizing his person, 924 MOSTYN Vo PABRIGAS. because an action of trespass is a transitory action ; but an action could ]iot be maintained for possessing- the house and land, because it is a local action. Fourth point. It is contended that General Mostyn governs as all absolute sovereigns do, and that afet pro ratione voluntas is the only rule of his conduct. From whom does the governor derive this despotism? Not from the King, for the King has no such power, and therefore cannot delegate it to another. Many cases have been cited, and much argument has been ad- duced, to prove that a man is not responsible in an action for what he has done as a judge ; and the case of Button v. Hoivell has been much dwelt upon ; but that case has not the least resemblance to the present. The ground of that decision was, that Sir John Dutton was acting with his council in a judicial capacity, in a matter of public accusation, and agreeable to the laws of Barhadoes^ and only let the law take its course against a criminal. But Governor Mostyn neither sat as a military nor a civil judge ; he heard no accusation, he entered into no proof ; he did not even see the prisoner ; but in diiect opposition to all laws, and in violation of the first principles of justice, followed no rule but liLs own arbitrary will, and went out of his way to prosecute the innocent. If that be so, he is responsible for the injury he has done ; and so was the opinion of the court of C. B. as delivered by Lord Chief Justice Be G-rey, on the motion for a new trial. If the governor had secured him, said his Lordship, nay, if he had barely committed him, that he might have been amenable to justice : and if he had immediately ordered a pros- ecution upon any part of his conduct, it would have been an- other question ; but the governor knew he could no more im- prison him for a twelvemonth (and the banishment for a year is a continuation of the original imprisonment), than that he could inflict the torture. Lord Bellamont' s Case, 2 Salk. 625, Pas. 12 W. 3, is a case in point to show that a governor abroad is re- sponsible here ; and the stat. 12 W. 3, passed the same year, for making governors abroad amenable here in criminal cases, af- fords a strong inference that they were already answerable for civil injuries, or the legislature would at the same time have pro- vided against that mischief. But there is a late decision not distinguishable from the case in question : Comyn v. Sahine, Governor of Gihraltar, Mich. 11 Geo. 2. The declaration stated, that the plaintiff was a master carpenter of the office of MOSTYN V. FAHltlGAS. 925 ordnance at Gihralfar ; that Governor Sabine tried him by a court-martial, to Avhich he was not subject ; that he underwent a sentence of 500 lashes ; and that he was compelled to depart from Gibraltar^ which he laid to his damage of 10,000?. The defendant pleaded not guilty, and justified under the sentence of the court-martial. There was a verdict for the plaintiff, with 700/. damages. A writ of error was brought, but the judgment affirmed. With respect to the Arraval of St. Phillip's being a peculiar district, under the immediate authority of the governor alone, the opinion of Lord Chief Justice BeGrey., upon the motion for a new trial, is a complete answer ; " One of the witnesses in the cause," said his Lordship, '' represented to the jur}-, that in some particular cases, especially in criminal matters, the governor resident upon the island does exercise a legislative power. It was gross ignorance in that person to imagine such a thing : I may say it was impossible, that a man who lived upon the island in the station he had done, should not know better, than to thinlc tliat the governor had a civil and criminal power in him. The governor is the King's servant ; his commission is from him, and he is to execute the power he is invested Avith under that commission; which is to execute the laws of Mi- norca., under such regulations as the King shall make in council. It was a vain imagination in the witnesses to say, that there were five terminos in the island of Minorca ; I have at various times seen a multitude of authentic documents and papers rela- tive to that island; and I do not believe that, in any one of them, the idea of the Arraval of St. Phillip's being a distinct jurisdiction was ever started. 3Iahon is one of the four ter- minos, and St. Phillip's, and all the district about it, is com- prehended within that termino ; but to supjDOse that there is a distinct jurisdiction, separate from tlie government of the island, is ridiculous and absurd." Therefore, as the defendant, by pleading in chief, and submitting his cause to the decision of an English jury, is too late in his ol)jection to the jurisdic- tion of the court ; as no disability incapacitates the plaintiff from seeking redress here ; and as the action wliich is a transi- tory one is clearly maintainable in this country, though the cause of action arose abroad, the judgment ought to be affirmed. Should it be reversed, I fear the public, with too much truth, will apply the lines of the Roman satirist, on the drunken 926 MOSTYN V. FABKIGAS. Maiius, to the present occasion : and they will say of Governor Mostyn, as was formerly said of him, Hie est damnatus inani judiclo ; and to the Minorquins, if Mr. Fabrigas should ])e deprived of that satisfaction in damages, which the jury gave liim. At tu victrix provincia ploras. Lord Mansfield. — Let it stand for another argument. It has been extremely well argued on both sides. On Friday, 27th of January, 1775, it was very ablj' argued by Mr. Serjeant Glynn for the plaintiff, and by Mr. Serjeant Walker for the defendant. Lord Mansfield. — This is an action brought by the plaintiff against the defendant, for an assault and false imprisonment ; and part of the complaint made being for banishing him from the island of Minorca to Carthagena in Spain, it was necessary for the plaintiff, in his declaration, to take notice of the real place where the cause of action arose : therefore, he has stated it to be in Minorca ; with a videlicet at London, in the parish of St. Mar i/-le- Boil', in the ward of Cheap. Had it not been for that particular requisite, he might have stated it to have been in the county of Middlesex. To this declaration the defendant put in two pleas. First, " not guilty " ; secondly, that he was Governor of 3Iinorca, b}' letters patent from the croAvn ; that the plaintiff was raising a sedition and mutin}^ ; and that, in consequence of such sedition and mutiny, he did imprison him and send him out of the island ; which, as gov- ernor, being invested with all the privileges, rights, &c., of governor, ho alleges he had a right to do. To this plea the plaintiff does not demur, nor does he deny that it would be a justification in case it were true : but he denies the truth of the fact: and puts in issue whether the fact of the plea is true. The plea avers that the assault for which the action was brought arose in the island of Minorca, out of the realm of England, and nowhere else. To this the plaintiff has made no new assignment, and therefore by his replication he admits the locality of the cause of action. Thus it stood on the pleadings. At the trial the plaintiff went into the evidence of his case, and the defendant into evi- MOSTYN V. FABKIGAS. 927 dence of his ; but on behalf of the defendant, evidence differ- ent from the facts alleged in his plea of justification was given, to show that the Arraval of St. Phillip' h^ where the injury com- plained of was done, was not within either of the four pre- cincts, but is a district of itself, more immediately under the 2:iower of the governor ; and that no judge of the island can exercise jurisdiction there, without a special appointment from him. Upon the facts of the case, the judge left it to the jury, who found a verdict for the plaintiff, with 3000?. damages. The defendant has tendered a bill of exceptions, upon which bill of exceptions the cause comes before us : and the great dillicidty I have had upon both the arguments, has been to be able clearly to comprehend what the question is, which is meant seriously to be brought before the court. If 1 understand the counsel for Governor Mostyn right, what they say is this : The plea of not guilty is totally immaterial ; and so is the plea of justification : because upon the plaintiff's own showing it appears, 1st, that the cause of action arose in ■Minorca^ out of the realm ; 2ndly, that the defendant was Gov- ernor of 3Ii7iorca, and by virtue of such his authority impris- oned the plaintiff. From thence it is argued that the judge who tried the cause ought to have refused any evidence what- soever, and have directed the jury to find for the defendant: and three reasons have been assigned. One, insisted upon in the former argument, Avas that the plaintiff, being a 3Iinorqnin^ is incapacitated from bringing an action in the King's courts in England. To dispose of that objection at once, I shall only say, it is wisely abandoned to-day ; for it is impossible there ever could exist a doubt, but that a subject born in Minorca has as good a right to appeal to the King's courts of justice as one who is born within the sound of Bow bell ; and the objec- tion made in this case, of its not being stated on the record that the plaintiff was born since the treaty of Utrecht., makes no difference. The two other grounds are, 1st, That the de- fendant being Governor of Minorca., is answerable for no injury whatsoever done by him in that capacity : 2ndly, That the injury being done at Minorca, out of the realm, is not cogni- sable by the King's courts in Enfiland. — As to the first, nothing is so clear as that to an action of this kind, the defendant, if he has any justification, must plead it : and there is nothing more clear, than that if the court has not a general jurisdiction of 928 MOSTYN V. FA15U1GAS. the subject-matter, he must plead to the jurisdiction, and can- not take advantage of it upon the general issue. Therefore, by the law of England, if an action be brought against a judge of record for an act done by him in his judicial capacity, he may plead that he did it as judge of record, and that Avill be a complete justification. So in this case, if the injury complained of had been done by the defendant as a judge, though it arose in a foreign country, where the technical distinction of a court of record does not exist, yet sitting as a judge in a court of justice, subject to a superior review, he would be witliin the reason of the rule which the law of England says shall be a justification; but then it must be pleaded (a). Here no such matter is pleaded, nor is it even in evidence that he sat as judge of a court of justice. Therefore I la}^ out of the case every- thing relative to the Arraval oi St. Phillip'' s. The first point, then, upon this ground is, the sacredness of the defendant's person as governor. If it were true that the law makes him that sacred character, he must plead it, and set forth his commission as special matter of justification ; because primd facie the court has jurisdiction. But I will not rest the answer upon that only. It has been insisted by way of dis- tinction, that, supposing an action will lie for an injury of this kind committed by one individual against another, in a country beyond the seas, but within the dominion of the crown of Eng- land, yet it shall not emphatically lie against the governor. In answer to which I say, that for many reasons, if it did not lie against any other man, it shall most emphatically lie against the governor. In every plea to the jurisdiction, 3-ou must state another jurisdiction ; therefore, if an action is brought here for a matter arising in Wales, to bar the remedy sought in this court, you must show the jurisdiction of the court of Wales ; and in every case to repel the jurisdiction of the King's court, you must show a more proper and more sufficient jurisdiction : for if there is no other mode of trial, that alone will give the King's courts a jurisdiction. Now, in this case no other jurisdiction is shown, even so much as in argument. And if the King's courts of justice cannot hold plea in such case, no other court can do it. («) See Salk. 30G; Vaugh. 138; 12 513, 514, 535, 550, 784; 4 Taunt. 07; C. 24 ; Lord Raym. 4(56 ; G T. R. 449 ; 2 C. & P. 14G ; 1 B. & C. 1G3 ; 4 B. & 3 M. & S. 411. See too 1 T. R. 493, C. 292. MOSTYN V. FABKIGAS. 929 For it is truly said that a governor is in the nature of a vice- roy ; and therefore locally, during his government, no civil or criminal action will lie against him: the reason is, because upon process he would be subject to imprisonment (a). But here the injury is said to have happened in the Arraval of St. Phil- lip's, where, without his leave, no jurisdiction can exist. If that be so, there can be no remedy whatsoever, if it is not in the King's courts : because, when he is out of the government, and is returned with his property into this country, there are not even his effects left in the island to be attached. Another very strong reason, which was alluded to by Mr. Serjeant Gli/nn, would alone be decisive ; and it is this : that though the charge brought against him is for a civil injury, yet it is likewise of a criminal nature ; because it is in abuse of the authority delegated to him by the King's letters patent, under the great seal. Now, if everything committed within a domin- ion is triable by the courts within that dominion, yet the effect or tlie extent of the King's letters patent, which gave the au- thority, can only be tried in the King's courts ; for no question concerning tlie seignory can be tried within the seignory itself. Therefore, where a question respecting the seignory arises in the proi)rietary governments, or between two provinces of America, or in the Isle of Man, it is cognisal)le by the King's courts in England only. In the case of the Isle of Man, it was so decided in the time of Queen Elizabeth, by the chief justice and many of the judges. So that emphatically the governor .must be tried in England, to see whether he has exercised the authority delegated to him by the letters patent, legall}'' and properly ; or whether he has abused it, in violation of the laws of England, and the trust so reposed in him. It does not follow from hence, that, let the cause of action arise where it may, a man is not entitled to make use of every justification his case will admit of, which ought to be a defence to him. If he has acted right according to the authority with which he is invested, he must lay it before the court by way of plea, and the court will exercise their judgment whether it is a sullicient justification or not. In this case, if the justification had been proved, the court might have considered it as a suiR- cient answer : and if the nature of the case would have allowed (a) But see, as to tliis position, tlie note, past, pp. (!83, (j84. 930 MOSTYN V. FAliRIGAS. of it, might have adjudged, that the raising a mutiny was a good ground for such a summary proceeding. I can conceive cases in time of war in which a governor would be justified, though he acted very arbitrarily, in which he could not be jus- tified in time of peace. Suppose, during a siege or upon an in- vasion of Minorca^ the governor should judge it proper to send a hundred of the inhabitants out of the island, from motives of real and general expediency; or suppose, upon a general sus- picion, he should take people up as spies ; upon proper circum- stances laid before the court, it would be very fit to see whether he had acted as the governor of a garrison ought, according to the circumstances of the case. But it is objected, supposing the defendant to have acted as the Spanish governor was em- powered to do before, how is it to be known here that by the laws and constitution of Spain he was authorised so to act? The way of knowing foreign laws is, by admitting them to be proved as facts, and the court must assist the jury in ascertain- ing what the law is. For instance, if there is a French settle- ment, the construction of which depends upon the custom of Paris, witnesses must be received to explain what the custom is ; as evidence is received of customs in respect of trade. There is a case of the kind I have just stated. So in the su- preme resort before the King in council, the privy council de- termines all cases that arise in the plantations, in Gibraltar or Minorca, in Jersey or Guernsey ; and they inform themselves, by having the law stated to them. — As to suggestions with regard to the difficulty of bringing witnesses, the court must take care that the defendant is not surprised, and that he has a fair opportunity of bringing his evidence, if it is a case proper in other respects for the jurisdiction of the court. There may be some cases arising abroad, which may not be fit to be tried here ; but that cannot be the case of a governor injuring a man contrary to the duty of his office, and in violation of the trust reposed in him by the King's commission. If he wants the testimony of witnesses whom he cannot com- pel to attend, the court may do what this court did in the case of a criminal prosecution of a woman who had received a pension as an officer's widow : and it was charged in the in- dictment, that she never was married to him. She alleged a marriage in Scotland, but that she could not compel her Avit- ness to come up to give evidence. The court obliged the MOSTYN V. FABRIGAS. 931 prosecutor to consent that the witnesses might be examined before any of the judges of the court of session, or any of the barons of the court of exchequer in Scotland, and that the depositions so taken shouhl be read at the triaL And they dechired that they wouhl have put off the trial of the indict- ment from time to time for ever, unless the prosecutor had so consented. The witnesses were so examined before the lord president of the court of session. It is a matter of course in aid of a trial at law to apply to a court of equity for a commission and injunction in the mean- time : and where a real ground is laid, the court will take care that justice is done to the defendant as well as to the plain- tiff (a). Therefore, in every light in which I see the subject, I am of opinion that the action holds emphatically against the governor, if it did not hold in the case of any other person. If so, he is accountable in this court or he is accountable nowhere, for the King in council has no jurisdiction. Complaints made to the King in council tend to remove the governor, or to take from him any commission which he holds during the pleasure of the croAvn. But if he is in England, and holds nothing at the pleasure of the crown, they have no jurisdiction to make reparation, by giving damages, or to punish him in any shape for the injury committed. Tlierefore to lay down in an Eng- lish court of justice such a monstrous proposition, as that a governor acting by virtue of letters patent under the great seal is accountable only to God and his own conscience ; that he is absolutely despotic, and can spoil, plunder, and affect his majesty's subjects, both in their liberty and property with im- punity, is a doctrine that cannot be maintained. In Lord Bellamont's case, 2 Salk. 625, cited by Mr. Peckham, a motion was made for a trial at bar, and granted because the Attorney-General was to defend it on the part of the King ; which shows plainly that such an action existed. And in Way V. Yallg, 6 Mod. 195, Justice Poivell says, that an action of (rt) And now, by st. 1 W. 4, c. 22, Dowl. 35; Bain v. De Vetrie, 3 Dowl. courts of common law can order the 517; Bridges v. Fisher, 1 Bing. N. C. examination of witnesses to be taken 512 ; Prince v. Samo, 4 Dowl. 5 ; Bour- in writing whether they reside in a deaux v. Rowe, I B'ms^.'iii.C. 721; Du- foreign country, a colony, or in Eng- kett v. Williams, 1 Tyrwh. 502; Wain- land, but under circumstances which v:ri(jht v. Bland, 3 Dowl. G53. [And disable them from attending to give see now, since the Judicature Act, evidence. See Doe v. Pattison, 3 O. 37, r. 5 ct seq.'\ 932 MOSTYX V. FATilllGAS. false imprisonment has been brought here against a governor of Jamaica, for an imprisonment there, and the hxws of the country were given in evidence. The governor of Jamaica in that case never thought that he was not amenable, lie defended him- self, and possibly sliowed, by the laws of the country, an Act of the Assembly which justified that imprisonment, and the Court received it as they ought to do. For whatever is a justification in the place where the thing is done, ouglit to be a justification where the case is tried. — I remember, early in my time, being counsel in an action brought by a carpenter in the train of artillery against Governor Sabine, who was governor of Gibral- tar, and who had barely confirmed the sentence of a court- martial, by which the plaintiff had been tried, and sentenced to be whipped. The governor was very ably defended, but nobody ever thought that the action would not lie ; and it being proved at the trial, that the tradesmen who follow the train are not liable to martial law, the court Avere of that opinion, and the jury accordingly found the defendant guilty of the trespass, as having had a share in the sentence ; and gave 500Z. damages. The next objection Avhich has been made is a general objec- tion, with regard to the matter arising abroad ; namely, that as the cause of action arose abroad, it cannot be tried here in Eng- layid. There is a formal and a substantial distinction as to the locality of trials. I state them as different things : the sub- stantial distinction is, where the proceeding is in rem, and where the effect of the judgment cannot be had, if it is laid in a wrong place. That is the case of all ejectments where possession is to be delivered by the sheriff of the county ; and as trials in Eng- land are in particular counties, the officers are county officers ; therefore the judgment could not have effect, if the action was not laid in the proper county. With regard to matters that arise out of the realm, there is a substantial distinction of locality too ; for there are some cases that arise out of the realm which ouglit not to be tried any- where but in the country where they arise ; as in the case alluded to by Serjeant WaUcer : if two persons fight in France, and both happening casually to be here, one should bring an action of assault against the other, it might be a doubt whether such an action could be maintained here ; because, though it is not a criminal prosecution, it must be laid to be against the MOSTYN V. FABRIGAS. 933 peace of the king (f?) ; but the breach of the peace is merely local, though the trespass against the person is transitory. Therefore, without giving any opinion, it might perhaps be triable only where both parties at the time were subjects. So if an action were brought relative to an estate in a foreign coun- try, where the question was a matter of title only and not of (lanuiges, there might be a solid distinction of locality. But there is likewise a formal distinction, wliich arises from tlic mode of trial: for trials in England being by jury, and the kingdom being divided into counties, and each county con- sidered as a separate district or principality, it is absolutely necessary that there should be some county where the action is brought in particvdar, tliat there may be a process to the sheriif of that county, to bring a jury from thence to try it. This matter of form goes to all cases that arise abroad: but the law makes a distinction between transitory actions and local actions. If the matter which is the cause of a transitory action arises Avithin the realm, it may l)e laid in any county — the place is not material ; and if an imprisonment in Middlesex^ it may be laid in Surrey^ and though proved to be done in Middlesex^ the place not being material, it does not at all pre- vent the plaintiff recovering damages : the place of transitory actions is never material, except where by particular Acts of Pai'liament it is made so ; as in the case of churchwardens and constables, and other cases which require the action to be brought in the county. The parties, upon sufficient ground, have an opportunity of applying to the court in time to change the venue ; but if they go to trial without it, that is no objec- tion. So all actions of a transitory nature that arise abroad may be laid as happening in an EnyJiHli county. But there are occasions wliich make it absolutely necessary to state in the declaration, that the cause of action really happened abroad ; as in the case of specialties, where the date must be set forth. If tlie declaration states a specialty to have been made at West- (rt) It seems that, the words contra the vi et armif!, that may now be |)ffwj/i were not necessary in a dechira- omitted, yet qinvre whether they can tion of trespass even before the Com- be held to stand on a ditl'erent foot- mon Law Procednre Amendment Act, inij, see Com. di. Pleader, 3 M. 8, and 18.5-', for the tine to the kinii had been whether the doul)t expressed by Lord abolished, and thoiij^h in Day v.Mitx- Ma)isiit'hl be well fonuded. see post, kctt, L. Kaym. !)85, Lord IIdU said in nutis. that it was not the contra paccm, but 934 MOSTYX V. FABIIIGAS. minster in Middlesex, and upon producing the deed, it bears date at Bengal, the action is gone ; because it is such a vari- ance between the deed and the declaration as makes it appear to be a different instrument. There is some confusion in the books upon tiie stat. 6 Rich. 2. But I do not put the objection upon that statute. I rest it singly upon this ground: if the true date or description of the bond is not stated, it is at vari- ance. But the law has in that case invented a fiction ; and has said the party shall first set out the description trid}-, and then give a venue only for form, and for the sake of trial by a videlicet, in the county of 3Iiddlesex, or any other county. But no judge ever thought that Avhen the declaration said in Fort St. G-eorge, viz., in Cheapside, that the plaintiff meant it was in Cheapside. It is a fiction of form ; every country has its forms, which are invented for the furtherance of justice ; and it is a certain rule, that a fiction of laio shall never he contradicted so as to defeat the end for which it was invented, hut for every other pur- pose it may he contradicted (a). Now the fiction invented in these cases is barely for the mode of trial ; to every other pur- pose, therefore, it shall be contradicted, but not for the purpose of saying the case shall not be tried. So in the case that was long agitated and finally determined some years ago, u]i)()n a fiction of the teste of writs taken out in the vacation, which bear date as of the last day of the term, it was held, that the fiction shall not be contradicted so as to invalidate the writ, by averring that it issued on a day in the vacation : because the fiction was invented for the furtherance of justice and to make the writ appear right in form. But where the true time of suing out a latitat is material, as on a plea of 7ion assumpsit infra sex annos, there it may be shown that the latitat was sued out after the six j'-ears, notwithstanding the teste. I am sorry to observe, that some sayings have been alluded to, inaccurately taken down, and improperly printed, where the court has been made to say, that as men they have one way of thinking, and as judges they have another, which is an absurdity ; whereas in fact they only meant to support the fiction. I will mention a case or two to show that this is the meaning- of it. In 6 Mod. 228, the case of Roberts v. Harnage is thus stated : The plaintiff declared that the defendant became bound to him (a) Cited by Bramwell, B., A.-Cr. v. Kent, 31 L. J. 396; Holmes v. lieg. 31 L. J. Cha. 58. MOSTVN V. FAIUIIGAS. 935 at Fort St. DavicVs in the East Indies at London., in such bond ; upon demurrer the objection was that the bond appeared to have been sealed and delivered at Fort St. David's in the JSast Indies, and therefore the date made it local, and, by conse- quence, the declaration ought to have been of a bond made at Fort St. David^s in the Fast Indies, viz., at Islington in the county of Middlesex ; or in such a ward or parish in London : and of that opinion was the whole court. This is an inaccu- rate statement of the case. But in 2 Lord Raym. 1042, it is more truly reported, and stated as follows : it appeared by the declaration that the bond was made at London in the ward of Cheap ; upon oyer, the bond was set out, and it appeared upon the face of it to be dated at Fort St. G-eorge in the East Indies ; the defendant pleaded the variance in abatement, and the plain- tiff demurred, and it was held bad : but the court said that it would have been good if laid at Fort St. G-eorge in the East Indies, to irit, at London, in the ward of Cheap. The objection there was, that they had laid it falsely ; for they had laid the bond as iiuide at London ; whei'eas, when the bond was pro- duced, it appeared to be made at another place, which was a vari- ance. A case was quoted from Latch, and a case from Lutwyche, on the former argument, but I will mention a case posterior in point of time, where both those cases were cited, and no regard at all paid to them ; and that is the case of Parker v. Crook, 10 Mod. 255. It was an action of covenant upon a deed indented ; it was objected to the declaration, that the defendant is said in the declaration to continue at Fort St. G-eorge, in the East Indies : and upon the oyer of the deed it bore date at Fort St. George, and therefore the court, as was pretended, had no jurisdiction : Latch, fol. 4, Lutwyche, 950. Lord Chief Justice Parker said, that an action will lie in England upon a deed dated in foreign parts ; or else the party can have no remedy ; but then in the declaration a place in England, must be alleged p>ro formd. Generally speaking, the deed upon the oyer of it, must be consistent witli the declaration : but in these cases, propter necessitatem, if the inconsistency be as little as possible, it is not to be regarded; and here the contract being of a voy- age which was to be perfbrmed from Fort St. George to Great Britain, does import that Fort St. George is different from Great Britain; and after taking time to consider of it in Hilary term, the plaintiff had his judgment, notwithstanding the ob- 93<) MOSTYN v. KAliUIGAS. jection. Therefore, the whole amounts to this : that where the action is substantially sucli a one as the court can hold plea of, as the mode of trial is by jury, and as the jury nuist be called together by process directed to the sheriff of the county, matter of form is added to tlie fiction, to say it is in that county, and then tlie whole of the inquiry is, whether it is an action that oujTfht to be maintained. But can it be doubted, tliat actions may be maintained here, not only upon contracts which follow the persons, but for injuries done by subject to subject ; espe- cially for injuiics, where the whole that is prayed is a re[)ara- tion in damages, or satisfaction to be made by process against the person or his effects, within the jurisdiction of the court? We know it is within every day's experience. I was embarrassed a great while to find out whether the counsel for the plaintiff really meant to make a question of it. In sea batteries the plaintiff often lays the injury to have been done in Middlenex^ and then proves it to be done a thousand leagues distant on the other side of the Atlantic. There are cases of offences on the high seas where it is of necessity to lay in the di'idaration that it was done upon the high seas; as the takiiig a sliip. There is a case of that sort occurs to my memory ; the reason I remember it is, because there was a question about tlie juris- diction. There likewise was an action of that kind before Lord Chief Justice Lee, and another before me, in which I quoted that determination, to show that when the lords com- missioners of prizes have given judgment, that is conclusive in the action ; and likewise when they have given judgment, it is conclusive as to the costs, whether they have given costs or not. It is necessary in such actions to state in the declaration that the ship was taken, or seized on the high seas, videlicet, in Cheapside. But it cannot be seriously contended that the judge and jury who try the cause fancy the ship is sailing in Cheapside ; no, the plain sense of it is that, as an action lies in England for the ship which was taken on the high seas, Cheapside is named as a venue : which is saying no more than that the party prays the action may be tried in Londo7i. But if a party were at liberty to offer reasons of fact contrary to the truth of the case, there would be no end of the embarrassment. At the last sit- tings there were two actions brought by Armenian merchants, for assaults and trespasses in the East Indies, and they are very strong authorities. Serjeant G-lynn said, that the defend- MOSTYN V. FABRIGAS. 937 ant, Mr. Verelst, was very ably assisted ; so he was, and by men Avlio would have taken the objection, if they had thought it maintainable, and the actions came on to be tried after this case had been argued once ; yet the counsel did not think it could be supported. Mr. Verelst would have been glad to make the objection ; he would not have left it to a jury, if he could have stopped them short, and said. You shall not try the actions at all. I have had some actions before me, rather go- ing further than these transitory actions ; that is, going to cases which in England would be local actions ; I remember one, I think it was an action brought against Captain Gamhier, who, b}- order of Admiral Boscairen, had pulled down the houses of some suttlers who supplied the navy and sailors with spirituous liquors ; and whethei' the act was right or wrong, it was certainly done with a good intention on the part of the admiral, for the health of the sailors was affected by frequent- ing them. They were pulled down : the captain was inatten- ti\'e enough to bring the suttler over in his own ship, who would never have got to England otherwise; and as soon as he came here he was advised that he should bring an action against the captain. He brought his action, and one of the counts in the declaration was for pulling down the houses. The objection was taken to the count for pulling down the houses ; and the case of Skinnei' and the East India Company was cited in support of the objection. On the other side, they produced from a manuscript note a case before Lord Chief Jus- tice Eijre^ where he overruled the objection ; and I overruled the objection upon this principle, namely, that the reparation here was personal, and for damages, and that otherwise there would be a failure of justice ; for it was upon the coast of Nova Scotia, where there were no regular courts of judicature ; but if there had been. Captain Gamhier might never go there again; and therefore the reason of locality in such an action in England did not hold. I quoted a case of an injury of that sort in the East Indies, where even in a court of Equity Lord Hardu'icke had directed satisfaction to be made in damages : that case before Lord Hardivicke was not much contested, but this case before me was fully and seriously argued, and a thou- sand pounds damages given against Captain Gamhier. I do not quote this for the authority of my opinion, because that opinion is very likely to be erroneous ; but I quote it for this 9o8 MOSTVN V. TAIUilGAS. reason — a thousand pounds damages and the costs were a con- siderable sum. As the captain had acted by the orders of Ad- miral Boscmven, the representatives of the admiral defended the cause, and paid the damages and costs recovered. The case was favourable; for what the admiral did was certainly well intended ; and yet there was no motion for a new trial. I recollect another cause that came on before mc : which was the case of Admiral PaUisicr. There the very gist of the action was local ; it was for destroying fishing-huts upon the Labrador coast. After the treaty of Paris^ the Canadians early in the season erected Inits ff)r fishing; and b}- that means got an advantage, by beginning earlier, of tlie fishermen who came from England. It Avas a nice question upon the right of the Canadians. However, the admiral, from general principles of policy, ordered these huts to be destroyed. The cause went on a great way. The defendant would have stopped it short at once, if he could have made such an objection, but it Avas not made. There are no local courts among the Esquimaux Indians upon that part of the Labrador coast ; and therefore whatever injury had been done there by any of the king's offi- cers would have been altogether without redress, if the objec- tion of locality would have held. The consequence of that circumstance shows, that where the reason fails, even in ac- tions which in En/d, 1 Sid. 185, E.. IG Car. 2,) founded upon the equity of that enactment, by which they held them- selves authorised, upon affidavit made that the cause of action, if any, arose in the county of A., and not in the county of B., in which the vetute was laid, or elsewhere out of the county of A., to change the venue to the county of A., and the motion for so doing was of course, only requiring counsel's signature. R. H. 2 W. 4, pi. 103. But as it would be hard to conclude the plaintiff on the single affidavit of the defendant, it was further held, that the venue must be brought back, if the plaintiff undertook to give material evi- dence in the county in which the action was brought, failing which he must have been non-suited, Avhich was equivalent to an abatement of the writ, according to the statute, Gilb. C. P. 90; Snntler v. Heard, 2 Bl. 1032, 1033; Burckshav: v. Hopkins, Cowp. 410; Watkins v. Toioers, 2 T. R. 275. There were many cases of transitory actions in which the defendant could not by possibility make the above [common] affidavit, [but could procui'e a change of venue on a special affidavit in the interests of justice. See Tidd's Prac. G05]. By the rules of Hilary Term, 1853, all former written rules of practice [were] abolished, and the only rule substituted relating to venue [was] the 18th which [was] that "No venue can l)e changed Avithout a special order of the court or judge unless by consent of the parties." [By 3 & 4 W. 4, c. 42, s. 23, power Avas given to the court or a judge to alter the venue in certain cases, even in local, as distinguished from transitory actions, and this power was further enlarged by the C. L. P. Act, 1852, §§41,182. As to the right of the Crown in transitory but not in local actions, to lay and retain the venue where it pleases, see Attorney-General v. Lord Churchill, 8 M. & W. 171 ; and as to similar rights in the Attorney-General for the Prince of "Wales, see Attorney-General to the Prince of Wales v. Grossman, L. R. 1 Exch. 381, and the cases therein cited. As to the right of the Crown under 28 & 29 Vict. c. 104, s. 46, to change the venue in certain cases as of right, see Dixon v. Farrar, 18 Q. B. D. 43. An attorney suing in person had, before the Judicature Act, 1873, the privilege to lay and retain the venue in Middlesex, and the court had no power to change it. Grace v. Wilmer, 26 L. J. Q. B. 1. The law on this subject is now contained in the Judicature Acts, 1873 (36 & 37 Vict. c. 66), and 1875 (38 & 39 Vict. c. 77), and the rules made in pnrsu- 942 MOSTYN V. FABllIGAS. ance of tliose acts. By Order 3G, Rule 1, it is provided as follows: "1. There shall be no local i^emia for the trial of any action, except where other- wise provided by statute. Every action iu eveiy division shall, uidoss the court or a judge otherwise orders, be trieil in the county or place named on the statement of claim, or (where no statement of claim has l)een delivered or required) l)j' a notice in writing to be served on the defendant, or his solicitor, within six days after appearance. Where no i)laceof trial is named, the place of trial .shall, unless the court or a judge shall otherwise order, l)e the county of Middlesex." See as to this rule, Locke v. White, 33 Ch. 1). 308. Qucere whether, notwithstanding the qualification " except where otherwise provided by statute," introduced above since the Rules of 1875, the effect of s. 33 of the Judicature Act, 1875, Order 3G, Rule 1, above stated, and s. G of the Statute Law Revision and Civil Procedure Act, 1883, may not be to repeal all statutory provisions for local venues. By rule 1a. of the same order, it is provided that the provisions of Rule 1 shall apply to every action, notwithstanding that it may liave been assigned to any judge. In deciding upon applications to change the place of trial, the courts will, no douljt, be governed to a great extent by the same principles as governed the practice previously to the Judicature Act, on motions to change the venue. In Church v. Barnett, L. R. 6 C. P. IIG, Willes, J., stated the true rule to be that a plaintiff' had the right to lay his }-emie whei'e he thought proper. If he did so capriciously a judge would cliange the venue to the place where the cause of action arose. Hut where he had not exercised a capricious choice, the defendant who sought to deprive him of an undoubted right nnist show that thei'e would be a practical preponderance of convenience in trying the cause in the place where the cause of action arose. The same doctrine as to the preponderance of convenience was laid down in Helliwell v. Ilohson, 3 C. B. N. S. 761 ; Durie v. IIopiooocl, 7 C. B. N. S. 835, the places where the con- tract was made and where the breach took place being also elements for con- sideration. Levy V. Rice, L. R. 5 C. P. 119. The court would not in general interfere with an order to change the venue made by a judge at chambers, unless he acted on a misconception of the facts, Schuster v. W'Tieelright, 8 C. B. N. S. 383; see Jackson v. Kidd, 29 L. J. C. P. 221 ; Church v. Barnett; Levy V. Rice, nhi sup., and Schroder v. Myers, 34 W. R. 261, decided in the C. A. since the Judicature Acts. In Creni v. Bennett, 54 L. J. Ch. 85, and Powell v. Cobb, 29 Ch. D. 486, 54 L. J. Ch. 962, which were actions in the Chancery Division since the Judica- ture Acts, the question was treated as one for the discretion of the judge to whom the actions were assigned as to the preponderance of convenience. But where Bacon, V.-C, made an order changing the place of trial to Lon- don, on the ground merely that the action was brought in the* Chancery Division, the C. A. set aside the order. Philips v. Beale, 26 Ch. D. 621; 54 L. J. Ch. 80. In Powell v. Cobb (siip.), Pearson, J., seems to intimate that the place of trial cannot be changed on the application of the plaintiff'. The C. A. express no opinion on this point. To turn now from the technical rules respecting the venue or place of trial to more substantial doctrines with regard to causes of action arising abroad. " Our courts are said to be more open to admit actions founded upon for- eign transactions than those of any other European country ; but there are restrictions in respect of locality which exclude some foreign causes of action altogether, namely, those which would be local if they arose in Eng- MOSTYX V. FABRIGAS. 943 land, such as trespass to land; and even with respect to thoso not falling within tliat description, our courts do not undertalve universal jurisdiction." FJiillips V. Eyre, pir Willcs, ,T., J.. W. G ^l B. 1, 28; Donlson v. Matthews, 4 T. R. 503. To some extent, no doubt, the difllculty as to local actions, sncli as trespass to lands abroad, being tried in our courts, arose merely from technical rules as to the necessity in such cases for a local venue as distinguished from any inherent want of jurisdiction in our courts to try them. (See the judgment in the principal case.) And it may be a question how far the effect of the Judicature Act, 1873, abolishing every local venue, is not to get rid of this disal)ility, especiallj' where the parties are domiciled in England; see per Lord Cairns, C, WhUaker v. Forbes, 1 C P. D. 51. But tliere are broader grounds on which our courts decline jurisdiction, sometimes altogether, sometimes perhaps when the parties are aliens, and there is, therefore, no jurisdiction founded upon the lex domicilii. Tluis our courts Avould refuse to entertain any proceedings wliere the prop- erty is real and situate abroad, such as ejectment (see the observations of Lord Mansfield in the judgment in the principal case, Graham v. Massey, 23 Ch. D. 743) or a bill for partition, Carteret v. Petty, 2 Swab. 323 n., and this, whether the parties be aliens or domiciled in England. And thougli in some cases the Courts of Equity have entertained suits affecting lands beyond the jurisdiction (as by decreeing specific performance of articles concerning boundaries of provinces in America, Penn v. Lord JJaUiiJiore, 1 Ves. 444, 2 Tudor's L. C. in Eq. 923; or bj' a foreclosure decree of a mortgage of land situate abroad, Toller v. Carteret, 2 Vern. 494; Paget V. Ede, L. R. 18 Eq. 118), this exceptional jurisdiction is exercised only by reason of the authority of the court in personam, and, as it seems, where there is privity between the parties arising by reason of a contract made within the jurisdiction, Norn's v. Chambers, 29 Beav. 246, affirmed 3 D. F. & J. 583; Cockney v. Anderson, 31 Beav. 452, 1 D. J. & S. 365; Norton v. Flor- ence Land Co., 7 Ch. D. 332; see also Re Llolmes, 2 J. & H. 527; Blake v. Blake, 18 W. R. 944; PLeiner v. Marquis of Salisbury, 2 Ch. D. 378, 45 L. J. Ch. 250, in which last case Malins, V.-C, refused to entertain a bill for dis- covery in aid of proposed proceedings to recover land in India. On the other hand, speaking generally, (and subject to the distinction be- fore mentioned in respect of local actions,) where the action is in i^ersonam, whether in respect of a contract or of a tort, our courts will, it is appre- hended, entertain it, though it may have arisen abroad, and though the parties to it may be aliens, provided that service of process is effected according to their rules. See Story's Confiict of Laws, 542-543 ; Wharton's Conflict of Laws, 2nd ed. 743; Phillimore Priv. Int. Law, 701; Buenos Ayres Railvny Co. v. Northern Railway Co. of Buenos Ayres, 2 Q. B. D. 210, 46 L. J. Q. B. 224. As regards contractual obligations, however, a distinction has been taken, that where the contract is made abroad, and its subject-matter Is abroad, an English court will not entertain a cause of action in respect of it, if the parties be aliens, though it would do so if thej' were domiciled here. See Matthei v. Galitzin, L. R. 18 Eq. 340, and the judgment of the Master of the Rolls in Cookney v. Anderson, 31 Beav. 466, which judgment was aflSrmed, 1 D. J. & S. 365. Quoire, whether the dicta in the last cited cases are not too wide. In Doss v. Secretary of State for India, L. R. 19 Eq. 535, Maliu'*. V.-C, approves of and follows Matthei v. Galitzin. 944 MOSTYX V. FABKIGAS. In Hart v. ITerwirj, L. R. 8 Ch. 860; 42 L. J. Ch. 457, tlie plaintifl', an Kng- lishnian, made at Hamburg an agreement with the defendant Ik-rwig, domi- ciled at Hamburg, for tlie sale by Hervvig, to the plaintitl', of a Hamburg ship then on voyage, to be delivered to the plaintiff at any plate whither she might be ordered for discharge, the seller making allowance if she arrived in a damaged state. The ship was ordered to Sunderland to discharge, but on arrival, delivery was refused except on payment of the full price. The Lords Justices affirmed an order of Malins, V.-C, restraining the removal of the ship by the defendant Herwig, and the master, who was also made a defendant. Sir Wm. James, L. J., said " The substantial <|uestion is, whether this Court has power to prevent a specific chattel from being removed out of the jurisdiction until a question relating to that chattel is decided. I am of opinion that, according to the established law of nations, if this suit were a suit for damages only, or one which could ix'sult in damages only, then the plaintiff must, in order to enforce his claim for damages, go and seek the forum of the defendant. But where the contract, as in this case, though made abroad, is to deliver a thing in specie in this country, and the thing itself is brought here, then the court here, in the exercise of its discretion, will see that the thing to be delivered in this country does not leave this country, so as to defeat the right of the plaintitt" to have it so delivered." It is presumed that Lord Justice James in saying that, if the suit was a suit for damages only, then the plaintiff must seek tiie forum of the defend- ant, is speaking of a case in which there had been no service of process within the jurisdiction, and that the necessity would arise from this, and not from any inherent lack of jurisdiction in our courts to try such a case, if ser- vice of process had been effected. See the judgment of Lord Justice Mellish. As to service of process, see post, p. (!ost, p. 676), which presumablj' was intended to embody the effect of those decisions.] Thus in Trimbey v. Viynier, 1 Bing. N. C. 151. it was held [on the assump- tion] that by the law of France, an indorsement in blank does not transfer any propert)' in a bill of exchange [or promissory note that] the holder of a [note made] in France and there indorsed in blank cannot reco\er upon it in this country against the [maker. And although in BradlaiKjh v. De Rin, L. R. 5 C. P. 473, (I)etter reported 39 L. J. C. P. 254,) the Court of Exchequer Chamber declined to toUow Trimbey v. Vignier, it was on the express ground that in the latter case the court had mistaken the Erench law^ and that according to French law a blank indorsement acted as a procuration, that is to say, did convey a right to sue, though subject to the equities affecting the indorser in blank. On the other hand, in Lebel v. Tucker, L. R. 3 Q. B. 77, it was held that in the case of a bill of exchange drawn, accepted, and payable in England, the acceptor was liable to a holder after indorsement in Ei'ance under similar circumstances to those in Trimbey v. Vignier : though the court assumed the French law to be as stated in Trimbey v. Vignier, distinguishing the case on the ground that the contract of the English acceptor of an English bill must be governed by English law. They at the same time declined to express any opinion as to what would be the effect of such an indorsement as between the indorser and any subsequent indorsee in an action against the indorser himself. The case of Bvadlaugh v. De Rin {sup.) was intermediate between Trimbey V. Vignier and Lehel v. Tucker. In the report of the case in tlie Common Pleas it is stated both in the report and in the judgment, that the bills sued upon were drawn in France: see L. R. 3 C. P. 538. In the report in the Exchequer Chamber {sup.) it is stated that they were drawn in Belgium; but in that court, as in the court below, it appears to have been assumed that the bills were in their inception French bills. Th.ey were accepted in England, but afterwards indorsed in France in blank, and it was assumed in the Court of Common Pleas that by French law such an indorsement was insufficient to give the holder — the plaintiff — a title to sue the acceptor — the defend- 948 MOSTVN V. lAlJKKJAS. ant. The majority of tlie Court of Coimiioii I'Uas. (-onsi>tin<; of Hovill, C. J., and Willcs, J., Ir-UI that uiidrr siuli circiimstancfs, tin- hills hi-iiifj French bills in their inception, the obligations of the acceptor nlu^)t be deter- mined by French law. Montafiue Smith, J., on the other hunil, lielil tliat tlie acceptance havinj;: l)een in Knirland the English law mnst prevail. The E.xciuquer ("hainl)er, without impugning the correctness of the decision below in i)oint of law, reversed the judgment on the ground tiiat nud innttfr of fart l)y French law the indorsement was sutlicieiit. In In re Mmseilh-s Co., :J0 V\\. 1). ."I'.IH, bo L. J. Ch. lit! (decided since the Bills of Kxciiange Act, 18.s2, but without reference to it. presumably in-cause the bills were accepted before the passing f>f the .\ct), it was held l)y Pearson, J., that the hohlers of a bill drawn in France but accepted by an Kuglish company in England, were entitled to recover against such acceptors thougli the indorsement might have been invalid by the law of Fmnce where it was made. In this ca.se the learned judge laid stress npon the form of the bill as constituting it an English instrument. Another case decided on the subject before the I'.ills of E.xchange Act. 1H,S2, is Allen v. Keuihle, (J Moo. 1'. C. :U.), in which case Lord Kingsdown states it as admitted that in the case of a bill drawn in one country upon a ilrawee in amither, " tlie tirawer is liable according to the laws of the country where the bill was drawn, and not of the coimtry upon which the l)ill was drawn." See the explanation, however, of this case by C'ockburn, C. J., in /koui/tntte v. Orennann, L. 1{. 10 Q. B. at p. 540, where it is pointed out that the above ilirdtni was unneces.sary to the decision of the ca.se, which turned upon the question whether the defenilant in a Demerara court could avail himself of the Demerara law as to set-otl', a question upon which the h jr fori nnist prevail, whatever miirht have been the law governing the rontrnrt of the drawer, the defendant in the action. See also McF.] In Uihhs V. Fremont, 1) Exch. 2."), the holder of a dishonoured l»ill drawn at Ciudad de los Angeles in California upon Washington, was held entitled as against the drawer to Californian interest. [In Rouqiu'tte v. Orermann, L. U. 10 Q. B. (decitled l>efore the Act of Iss'J). at p. 536, the court discuss the supposed rule " tliat although the obligations of the acceptor may be determined by the lex loci of the country in which the bill is payable, tlie contract as between the drawer and indorsee must be construed according to the law of the country where the bill was drawn." " It is unnecessary," .says Cockburn, C. J., " to consider how far this position may hold good as to matter of form, or stamp objections, or illegality of consideration, or the like. We cannot concur in it as applicable to the sub- stance of the contract, so far as presentment for payment is concerned; still less to a formality lequired on non-payment, in order to enable the hoUler to have recourse to an antecedent party to the bill." His lordship then points out that the party transferring a bill for value "engages as surety for the due performance by the acceptor of the obligation which the acceptor takes on himself by the acceptance. His liability therefore is to be measured by that of the acceptor whose surety he is, and as the obligations of the acceptor are to be determined b_v the lex loci of performance, so also must be those of the surety." The effect of the decision is that the court, following Roths- child V. Carrie, 1 Q. B. 43 (though the reasoning of the court in that case has been disapproved, see Home v. Rouqnette, 3 Q. B. D. 514), and Hirsrhfiehl v. Smith, L. R. 1 C. P. 340, held that notice of dishonour according to English law was not necessary, but that notice according to French law v.as sutlicieut MOSTYN V. FABRIGAS. 949 to charge the defendants who were Manchester merchants, at the suit of the plaintiff, an Englisli subject carrying on business in London, on a bill drawn and indorsed to the plaintift' by the defendants in England, but upon and accepted and dishonoured by a French firm at Paris. The state of facts was that the time for payment of the bill with all other French bills was, daring its currency, from time to time extended by the French Government in con- sequence of national complications, and the Court of Queen's Bench held that the drawer was equally with the acceptor entitled to the benefit of these extensions, and so that the time for giving notice of dishonour only arose when the acceptor failed to fulfil the obligations imposed upon him. Another qualification of the supposed rule (irrespective of the Bills of Exchange Act, 1882) that the liability created by an English indorsement is to be measured simply by English law, is to be found in Home v. Rrniquette, 3 Q. B. D. 514. In that case a bill was drawn in England by Bryant, Foster, & Co., on Chasserot in Spain, in favour of the defendant, who indorsed it in England to the plaintifi". The plaintiff wrote his name on the back and for- warded it to one Monforte, in Spain, who placed it to his credit under cir- cumstances which the majority of the court held to constitute an indorse- ment to Monforte in Spain. Monforte indorsed it in Spain to Clavero, who indorsed it also in Spain to O'Connor & Sons. On presentment by them for acceptance the bill was dishonoured. Notice of dishonour was not given to the plaintifi' until after such a time as would in England have discharged him ; but it was proved that according to Spanish law, no notice of dis- honour for non-acceptance Avas required. The plaintifi' when he did receive notice at once gave notice to the defendant, and paid Monforte : and was held by the Court of Appeal, affirming the judgment of Lord Coleridge, C. J., to be entitled to recover against the defendant. The court concurred in thinking that the fact of the bill being a foreign one was immaterial, that the liability of the defendant on his indorsement in England was governed by English law; but that the plaintiff, being liable to Monforte, because, accord- ing to Spanish law, no notice of dishonour was necessarj' to charge the indorser, was entitled in his turn to have recourse against the defendant. The 7-atio decidendi seems to be that a defendant, though indorsing in Eng- land, and whether the bill be foreign or English, must be deemed to antic- ipate the possibility of a subsequent foreign indorsement, and to undertake to indemnify his indorsee against any liability he may incur by reason of such later indorsement, though some of the links in the chain of indorsements subsequent to his own may not be such as would bind the defendant if the indorsement had been English. The ratio decidendi which had been indicated above with reference to Home V. Rouquette, or one founded on an analogous train of reasoning, is suggested by Wills, J., in Lee v. Abdy, 17 Q. B. D. 809, as applicable to the question of the liability of an English acceptor upon a bill indorsed abroad, and as explaining Lebel v. Tucker and Bradlaiigh v. De Rin, supra. Qucere whether the learned judge in suggesting that the liability of the acceptor is to be measured l)y reference to what he must have contemplated would be the probable place of indorsement gave sufficient weight to the fact that in Brad- laugh V. De Ein the bill was treated by the majority of the court below as a foreign bill, and the Court of Exchequer Chamber, though they do not decide the point, deal with the case ou the same assumption. The bill being treated as a foreign hill, the court below held (and the Exchequer Chamber did not impugn that position) that the acceptor Avould be liable only upon an 950 MOSTVN V. lAISIIUJAS. liulorsciuc-iit cUcctiial aiiaiiisl llu- ilrawer by tlif law of tin- placi- i»f l«suo. On llii- otlior liaiui, in l.ihtl v. Tinker, tin; ))ill lM-in;j uii Knylhli I>1U, tlie acceptor's liability was licti-nnincd only by Eni;lisli law, not because he waa taken to have conteniplatetl ne>;otiation in Kn;;lanil only, but l»ecause tiiat was the law of the place of his contract. In /.(/■ v. Alxlij, uhi supra, a Divis- ional Court consisting; of Day and Wills. ,1.1., held that to an action on a life policy ctlected in Knuland by tiie assijiiiee of the policy, It was a defence lliat the assignment, thouj;h valid by Knglish law, was invalid and voiti l)y the law of Cape Colony where the assij^nnient was made, and wiiere the a.ssi;^uor and assignee were domicileil. Tiie court considered that the decision In Lfbt'l v. I'lnki r was distiniiuish- able as l)eini; on the liability of an acceptor of a l)ill of exchauLre which was ditltrcnt from that of the defendants, who were l)einy sued not on a nego- tiable instrument, i)iit as liable under a policy of insurance. The Hills of Exchange Act, 1SS2 (4."> & 4(; Vict. c. fil), s. 72. proviilcs a.s follows : — " Where a bill drawn in one country is negotiated, accepted, or payable in another, the rights, duties, and liabilities of the parlies thereto are determined as follows : — "(1.) The valiiiity of a liill as regards n'<|ui»itc-. in furni is dctcrinined l)y the law of the jilace of Issue, and the validity as regards n-qnisites in form of the supervening contracts, sJich as acce|)tance, or indorsement, or accept- ance supra protest, is deterniined by tin- law of tlie place where such contract was made. " Provided that: — " (a) Where a bill is issued out of tiic Iniled Kini,'dom it is not invalid l)y reason only that it is not sta:npeil in accordance witii the law of the i)lace of issue. "(b) Where a Itill, issued out of the I'nitcd Kingilom, conforms, a.s regards re«|uisites in form, to the law of the Inited Kingdom, it nuiy, for the purpose of enforcing payment thereof, be treated as valid as between all persons who negotiate, hold, or l)ecome parties to it in the Tnited Kingdom. " (2.) Subject to the provisions of this Act, the interpretation of the drawing, imlorsement, acceptance, or acceptance supra protest of a bill, is determined by the law of the place where such contract is made. " Provided that where an inland bill is indorsed in a foreign country the indorsement shall, as regards the payer, be interpreted according to the law of the United Kingdom. " (3.) The duties of the holder with respect to presentment for acceptance or payment, and the necessitj' for or sulTiciency of a protest or notice of dishonour, or otherwise, are determined by the law of the place where the act is done or the bill is dishonouretl. " (4.) Where a bill is drawn out of but payable in the United Kingdom and the sum payable is not expressed in the cnrrency of the United Kingdom, the amount shall, in the absence of some express stipulation, be calculated according to the rate of exchange for sight drafts at the place of payment on the day the bill is payable. " (5.) Where a bill is drawn in one country and is payable in another, the due date thereof is determined according to the law of the place where it is payable." The wording of the Act, however, is not (luite clear, and by s. 07, s\il)-s. 2, it is provided that " the rules of Common Law, including the Law Merchant, MOSTYN V. FABRIGAS. 951 save in so far as they are inconsistent with the express provisions of this Act, shall continne to apply to bills of exchange, promissory notes, and cheques."] " The rule," said Tindal, C. J., delivering judgment in the case of Trimbey V. Vignier, 1 Bing. N. C. 151, " which applies to the case of contracts made in one country, and put in suit in the courts of law of another country, appears to be this, that the interpretation of the contract must be governed by the law of the country where the contract was made : the mode of suing, and the time within which the action must be brought, must be governed by the law of the country where the action is brought." This distinction was acted on in The British Linen Company v. Dntmmond, 10 B. & C. 903, where it was held that the English statute of limitations was a good plea to an action on a Scotch contract which might in Scotland have been put in suit at any time within forty years ; in De la Vega v. Vianna, 1 B. & Ad. 284, where the defendant Avas allowed to be arrested for a debt con- tracted in Portugal, and for which he could not have been arrested there ; in Alivon and another (provisional syndics of the estate of Beauvain, a bank- rupt) V. Furniral, 4 Tyrw. 751, where the Court of Exchequer acted on the French law of bankruptcy; and in Huber v. Steiner, 2 Bing. N. C. 202, in which the whole difficulty was in ascertaining whether the rule of foreign law applied ad valorum contractus, or ad modurn actionis instituendcK. It was an action on a promissory note; and the question was, whether the French law of prescription formed a defence thereto, the action being brought within the English period of limitation. On behalf of the defendant it was contended that laws for the limitation of suits were of two kinds, those which bar the remedy, and those which extinguish the debt; and the following passage was cited [at p. 211] from Story's Commentaries on the Conflict of Laws: — "Where the statutes of limitation of a particular country not only extinguish the right of action, but the claim or title itself ipso facto, and declare it a nullity after the lapse of the prescribed period, in such a case the statute may be set up, in any other country to which tho parties remove, by way of extinguishment." " This distinction," said Tindal, C. J., delivering judgment, " when taken with the qualification annexed to it by the author himself, appears to be well founded. That qualification is, ' that the parties are resident within the jurisdiction during all that period, so that it has actually operated upon the case; ' and with such restriction, it does indeed appear but reasonable, that the part of the lex loci contractus, which declares the contract to be absolutely void at a certain limited time, without any intervening suit, should be equally regarded in the foreign country, as the part of the lex loci contractus, which gives life to and regu- lates the construction of the contract; both parts go equally ad valorem contractus, both ad decisionem litis." However, the court, upon examination of the French law of prescription, thought that its effect was not to extin- guish the right, but, as in England, only to bar the remedy, and therefore that the defence was in that case unavailable. [See also MacFarlane v. Norris, 2 B. & S. 783; Flarris v. Qidne, L. R. 4 Q. B. 653, 38 L. J. Q. B- 331; Pardo V. Bingham, L. R. 4 Ch. 735, 89 L. J. Ch. 170; Alliance Bank of Simla v. Carey', o C. P. 1). 429.] Supposing the law of a foreign country to be, that a contract is, after a certain time, to be deemed ahsolutely extinguished, it seems not quite reason- able to say that the removal of the parties out of the jurisdiction, while that time is running, should authorise the courts of this country to consider 9.VJ MOSTVN \. FAlUtlCAH. it in cssr aftiT llio piTiod pn-Ilxcd. 'I'lu' aiitliuritifs rstul)li>li, tliai the law of tlie country whcrt' tlu' contract is made must ;;ovcrn it, and must l>i- looked on as impru'tlly iucori)orulcd with it. Now, if the contract liad containctl a]>r(>cis() tliat it should l)c' ai)solutcly void if not enforced witldn a certain time, no dt>ul)t the Ku<;lisli courts would hold it void after the expiration of that time. But what ditference can it make that such pmriso Is implied from the law of the country where the contract was made instead of hein^ ex- pressed in terms? Is it not in botli cases equally part of the contract? If, indeed, the rule of the foreign law be, that the contract shall, after the lapse of a certain time, l)ecome void, provided that the parties to it continue to reside all that time in the same country, the arrival of the perioil prefixed or its avoidance will depend on the contiu'reucy of their ai)staiidn;r from absent- \n<^ tliemselves; and, if they leave the country, never will arrive at all; and this is, jx-rhaps, what Judye Story intends l)y the words '• that the parties are resident within the jurisdiction durinj; all that period, so tftut it Iihk nrtuitlly operntrd upon the rtisc" For if the law be so frametl as to opiTate upon the case without such residence, the (|ualitlcation appears to be inapplicable [but sec per Lord liroui^ham, Don v. Lippmnnn, .'> CI. & Fin. 1, IG. The Knylish statute of limitations does not apply to charges on real estate sitmvte abroad, as to which the lex loci rei sitir is the law applical)le. Pitt v. iJnrre, ^^ Ch. I). 2[K>.] In Lopez V. linrslem, 4 .Moore ( I'rivy <"ouiull). .'JOO, tin- same law was acted upon with reference to the limitation of time |)rescribed for liriniiiny an ai)i)»'al after condemnation by a vice-admiralty court under tlu- Slave Trade Abolition Ait. .". (i. I, c. 11:'.. II was contended in tliat case that the owners of the car;;o were not bound by the enactment, beinij forei^jners ; l)ut the court, admittins: that the British parlianjent certainly has no {reneral power to le,i;islate for foreiijners out of the dominions and beyond the juri.sdiction of the British Crown, held that a British statute nniy llx a time within which application nnist be made for redress to the tril)unals of the emi)ire: "on matter of procedure," they said, "all mankind, whether aliens or liejje sub- jects, plaintitl's or defendants, appellants or respondents, are l)ound by the law of tin: fo nun," and " (/' (i l(i>e leere mude upon tliia suhjer.t icorkimj oppns- sion and injuatire to the suhjectx of o foreiijn sttife, that state might make representations and remonstrances against this law to (jur government ; Ijut while it remains in force, judges have no choice but to give it effect." See further Ileriz v. Riera, 11 Sim. 318; Cooper v. Lord Waldeyrave, 2 Beav. 282; Beuuce v. Muter, 5 Moore (Privy Council), (j9; Fertjuson v. Fi/ffe, 8 CI. & Fin. 121 ; Leslie v. Baillie, 2 You. & Coll. C. C. 91 ; [Cope v. Doherty, 4 Kay & J. 3r.7, atlirmed 2 l)e G. & J. G14; Jar/o v. Graham, 32 L. J. Adm. 49; The Wild Ramjer, 32 L. J. Adm. 49. In the recent case of Ellis v. M' Henry, L. R. (J C. P. 228, 40 L. J. C. P. 109, the decisions as to what amounts to a discharge of a foreign cau.se of action ai"e elaborately reviewed. In that case it was held that a discharge by an English composition deed was binding in Canada, and also was clearly bind- ing and effectual as an answer to proceedings commenced in this country on a Canadian cause of action ; but further, that no advantage could be taken of such a discharge as an answer to an action on a judgment obtained in a Canadian Court, where such discharge might have but had not lieen pleaded. In giving judgment, Bovill, C. J., lavs doAvn the three following very impor- tant propositions: — "In the first place, there is no doubt that a debt or liability arising in any country may be di.-schargcd by tlie laws of that country. MOSTYN V. FABRIGAS. 953 and that such a discharire, if it extinguishes the debt or liability, and does not merely interfere Avitli the remedies or course of procedure to enforce it, ■will be an efl'ectual answer to the claim, not only in the courts of that country, but in every other country. Secondly, as a general proposition, it is also true that the discharge of a debt or liability by the law of a country other than that in which the debt ai'ises, does not relieve the debtor in any other country. Thirdly, where the discharge is created by the legislature or laws of a country which has a paramount jurisdiction over another country in which the debt or liability arose, or by the legislature or laws which govern the tribunal in Avhich the question is to be decided, such a discharge may be effectual in both countries in the one case, or in proceedings before the tribunal in the other case." See also PhilUps v. Eyre, L. R. 6 Q. B. 1, and ex parte Pascal, 1 Ch. D. .509, 4.5 L. J. Bank. 81.] Another application of the rule that procedure is to be governed by the law of the country in wliich the action is brought, may be found in the judg- ment of the Court of Exchequer, in the case of the General Steam Naviga- tion Company v. Guilloii, 11 M. & W. 877. The action was on the case for running down a ship at sea ; one of the defendant's pleas stated that he was a Frenchman, and that the injury complained of was committed on the high seas, out of the jurisdiction of the Queen of England, not by the defendant personally, but by the master of a French vessel in the employ of a French company, of Avhich the defendant was a shareholder and acting director; that the defendant never was possessed of, or interested in, the vessel which did the injury, otherAvise than as such shareholder, and that by the law of France he was not responsible for or liable to be sued or impleaded individually, or in his own name or person in any manner Avhatsoever, but that by that law the company alone, by their style or title, or the master or person in command for the time being of the vessel, was responsible for and liable to be sued or impleaded, and that the defendant was not the master or person in command. Upon the grammatical construction of that plea, the Coui't of Exchequer were divided in opinion, but they agreed that if the plea were taken (accord- ing to the consti'uction put upon it by Parke, B., and Gurnej', B.), to aver that by the law of France the defendant was " not liable for the acts of the master; but that a body established by the French law, and analogous to an English corporation, were the proprietors of the vessel, and alone liable for the acts of the master who w^as their servant and not the servant of the individuals composing that body ; " there was (as they were all strongly inclined to think) a good defence to the action ; but that if, on the other hand, the plea were taken (according to the view of Lord Abinger and Alderson, B.) to mean, " that in the French courts the mode of proceeding would be to sue the defendant jointly with the other shareliolders under the name of their association;" then that it was bad on the ground that '• the forms of remedies and modes of proceeding are regulated solely by the law of the place where the action is instituted, the lex fori ; and it is no objection to a suit instituted in proper form here, that it would have been instituted in a different form in the court of the country where the cause of action arose, or to which the defendant belongs." So where a colonial act gave a mode of proceeding against a banking company by suing their chairman, and provided a particular mode of pro- ceeding upon that judgment, against members for the time being, it was considered that tlie members might, even in respect of a cause of action which arose in the colony, be sued in England either for the original debt or upon 954 MOSTYN V. I aiu:1(;as. the jndfiment. Bank nf Austrcthtsin v. J/unUnfj, [D < '. IJ. •;•;!] ; I'.t L. .1. 'M.'>; Jiiiuk of Aus(raJasia v. Ai<(s, 1(! Q. B. 117; [h'flmlt v. Mamliiill, 1 C. H. N. S. 241 ; }'anytteli)i v. Jinunnl, 'Sd L. J. ('. 1*. 7'J. And in Jiullork v. O/nv/, L. R. 10 Q. IJ. 27t;. J I L. .1. Q. IJ 121, wliidi was tin :ir(ii;ii l;i\v is |)rfsiiiiifi| to \u- tlic same as our own. As to when it may be a i^rouiid for a stay of proc«'i'iliiii;s in iin action hepj that anotlier action l)y tin- plaiiilill' aj^ainst the dcfenilant for tlie same cause was pendinj; abroad, see Mrllfunj v. Leiris, 22 Ch. 1). 307, ">2 L. J. Cli. :12.'>; Norton v. Florence Land Co., 7 C\\. D. ;5;52 ; /'frnrinn diKinn Cimiji'tnij v. liock- woldt, 23 Ch. D. 225; Ilyman v. //riij; and Lord Broui^ham suir^iested, that the expressions used by Lord Manstlelil may have been somewhat altered in the report. In Hill v. nitj(jp, to an action of debt l)rou,iilit in a colonial court ajjainst the fjovernor, a plea stating his vicerejjal cliaracter was held to attbrd no defence; but Lord IJronjjham, advertinj; to the inconvenience sugyjested by Lord Manslleld, said, in ^ivin;^ the jud;rmentof the court, " It is not at all necessary that in holdin;; a ;;overnor liable to l)e sued we should hold his per- son liable to arrest while on service; that is. while resident in his govern- ment. It is not even necessary that we shoidd meet the sufji^estion of his goods in all circumstances l)einix Habli- to Ik- taken in execution — thoui;h that is liable to a ilillerent consitleralion." [In the important case of Lulnj v. Wmlrhousf, 17 Irish ('. L. Kep. tJ18, It was decided that the Lord Lieutenant of Ireland was not liaiile to be sued in an Irish court of law for an allesjed tortious act done by him in his viceroy's capacity : and on the motion of the Attorney-General for Ireland, the Court, upon allidavits, and relying; on the authority of the principal case, directed that a writ issued against the Lord Lieutenant in resi)ect of such an allejjced act should be suunnarily taken off the llle, without pnttim; him to plead such defence. The editors are informed that this case has been recently acted upon by the EniLjlish law oflicers. With regard to the rights and liability of sovereign princes themselves to sue and be sued in the courts of this country, the general rule dedueible from the cases seems to be that in respect of acts of state they can neither sue nor be sued. Personally, foreign .sovereigns cannot be sued af all, and though it has been held that in some cases proceedings in rem may be instituted against their property in this country (The Charkieh, L. R. 4 .V. «& E. 100, 42 L. J. Adm. 17), the di<-ta to this etlect have been overruled in the Court of Appeal, The Parlement Beh/e, 5 P. D. 197. In certain cases a petition of right may be instituted by a British subject against the Crown; " but it seems clear to us," says Lord Coleridge, C. J., delivering the judgment of the Court of Appeal, in Rustomjee v. The Queen, 2 Q. B. D. G9, 4G L. J. Q. B. 238, " that in all that relates to the making and performance of a treaty with another sovereign, the Crown is not and cannot be either a trustee or an agent for any subject whatever. The duty," his lordship adds, of the English sover- eign in such a case " w-as a duty to do justice to her subjects, according to the advice of her responsible ministers ; not the cUity of an agent to a princi- pal, or of a trustee to a cestui que trust. If there has been a failure to perform that duty, which we only suggest for the sake of argument, it is one which Parliament can and will correct — not one witli wliich the Courts of Law can deal."] MOSTYN V. FABRIGAS. 957 The liability of sovereign princes to be sued in the courts of foreign countries underwent a full discussion in the very remarkable case of the Duke of Brunswick v. The King of Hanover, G Beav. 1, Avhere the defendant was at once a king of one country and a subject of that in which he was sued. Lord Langdalc, ]\I. R., in a judgment which exhausts the subject, stated his opinion: 1. That the King of Hanover was "exempt from all liability of being sued in the courts of this country for any acts done by him as King of Hanover, or in his character of sovereign prince; " but that, " being a sub- ject of the Queen," he was " liable to be sued in the courts of this country in respect of any acts and transactions done by him, or in which he may have been engaged, as such subject." 2. That " in respect of any act done out of this realm, or any act as to which it may be doubtful whether it ought to be attributed to the character of sovereign or to the character of subject, it ought to be presumed to l)e attributable rather to the character of sovereign than to the character of suljject." 3. That in a suit in the Court of Chancery against a sovereign prince who is also a subject, "the bill ought upon the face of it to show that the subject-matter of it constitutes a case in which a sovereign prince is liable to be sued as a subject." And the decree of the Master of the Rolls, allowing the demurrer in that case to a bill seeking an account against the King of Hanover as guardian of the plaintiff", to which office the king, upon his attaining the throne of Hanover, had been appointed under an arrangement springing out of the deposition of the duke pursuant to a decree of the Germanic Diet in 1830, was affirmed by the House of Lords on appeal (2 House of Lords Cases, 1), on the ground that a sovereign is not liable to be sued in respect of matters of state. In the case of the Nabob of Arcot v. East India Company, 3 Br. C. C. 291, 4 Br. C. C. 180, 2 Ves. J. 56, see Beames, El. PI. 73, the Court of Chancery refused to entertain a suit arising out of transactions of state between soA'ereign powers, though the defendants were subjects of this country. In Munden v. Tlie Duke of Briinswick, 10 Q. B. 656, it was considered to be no plea to an action on an annuity deed that the defendant was a sovereign prince at the time it was made without showing either that it was an act of state or that the defendant retained his sovereign character at the time of action brought. And in Wadsioorth v. The Queen of Spain, 17 Q. B. 171, and De Haber v. 77ie Queen of Portugal, 17 Q. B. 196, proceedings in foreign attachment instituted against property belonging to those sovereigns in their public capacity by the holders of Spanish and Portuguese bonds were stayed by prohibition. [In support of the general principle of the immunity of sover- eign princes and of their property in respect of acts of state, see further Gladstone v. The Ottoman Bank, 32 L. J. Ch. 228 ; Same v. Musurus Bey, Id. 155; Smith V. Weguelin, L. R. 8 Eq. 198; 38 L. J. Ch. 465; Doss v. Secretary of State for India, L. R. 19 Eq. 509; Tvjycross v. Dreyfus, 5 Ch. D. 605, 46 L. J. Ch. 510; Vavasseur v. Krupp, 9 Ch. D. 351; llie Constitution, 4 P. D. 39; 48 L. J. P. D. & A. 13. In the case of The Charkieh, L. R. 4 A. & E. 100; 42 L. J. Adm. 17, Sir R. Phillimore elaborately discusses the subject of the immunities of foreign princes in this respect, and lays down that the courts of this country have jurisdiction to entertain proceedings instituted in rem, though the property be that of a foreign sovereign, and in some cases, it would seem, even though such property may be " of a public character, as for instance a ship of war : " and further, that a sovereign may, by assuming the character of a trader. 958 MosTVN V. 1 ai{Km;a.s. waive in respect of smli tnvdiiiir tlu- privile;;e wliicli lie enjoys ;;cner:illy .•. . a soverei<;n and rendt-r liiniself lial)le to tlie jurisdiction of an Kntjlish court. The Court of Queen's Bencli refused to interfere in this case by prohibition to tlie Court of Admiralty. Thp Chnrkieh, L. K. H Q. B. T.tT ; 42 L. J. Q. B. 75. The above dicta, however, were unnecessary to the decision, as tlie learnelon;;cd, was not afuri'i(/n s V. D. 1'.)". the Court of Appeal, after full considi-r.ition, overruled them, and held that foreign sover- ei^j^ns enjoy the same immunity from procecdinirs in nm as from actions in personaui, and that their property is ecpially privileged in this respect whether ships of war or trading vessels. The subject will be found very fully dis- cussed in the interesting and exhaustive judgment delivered by Lord Esher, then Lord Justice Brett, in the last cited case. In the later case of Strnusherg v. RepnhUc nf Costa liira, 21l W. R. 12'), Lord Justice James, after stating that '■' it is a violation of the respect due to a foreign sovereign or state to issue the process of our courts against such sovereign or state," mentions two exceptions, if they can be called excep- tions, to this rule. First, " that where a foreign sovereign or state comes into the courts of this country for the purpose of obtaining some remev«'rn!nont odlclal on a contract ma»lo by him for the public, sec (yUrmlij v. CurtUrell, '21 W. li. 34(»; I'ltlmvr v. llnlrhininni, 6 App. Ca. G19. As to the liability intir se of persons jojtiirif; in u iiostile expetlition for uctH done in ol)edience to the lawful orders of fjovernnieiit olllcers sent out in coinnuind of the expedition, see Ilixhikinson v. Firnir, 2 ('. B. N. S. 41'>.J As to an a<'tion for acts done abroad by a rouannndinij offirer in Ins ollicial capa- city, as reducin!; a ni)n-conin>issioiied ollicer to tiie ranlis, Jtc, see linnriH v. Keppcl, Wils. :{14. Whetlier an nmhiins(Hh>r is entitled to absolute exemption from suit in the courts of the country to which he is sent, or only to be protected from process which nuvy ilirectly atl'ect his person or property, was discussetl in the case of Taylor v. Dntuct, 14 C. B. 4«7, where it was consiilered unnecessary to decide the question, the court being of opinion that such a privilejie, If It existed, was at all events waived by the defentlant's havin<; volinitarily appeared to the writ, and not raised any objection until a lat»' sta;:e of the proceedinj;s. (^iKirf. whether in that case too much stress was not laid upon the opinion of Bynkershoek as to proccedimjs in rem in tlie case «>f princes and ambassadors; .see Wailximrth v. Thr (ini'i-n <>/ Spain, 17 (^. B. 171, per curiam. [The (juestion has since been resolved In favour of the ambassador, on the principle " ouinis rnartin a Ir'jato nhesse (Ithet." The Mmidahna Steam Nuvi(jatinn Co. v. Martin, 2 El. & El. y4, 28 L. J. Q. B. ;^10; (Hadstone v. Mustiriis Hoy, 32 L. J. Cha. 155; The Secretary of State for India v. Kamachee Boxje Sahaha, \:\ Moore, Pr. C. 22; Parkinson v. Potter, IG Q. B. D. 152.] As to the liability of jndijes for judicial acts, see further, Calder v. Ilalkett, 3 Moore (Privy Council). 28; flraham v. LajUte, Ibid. :5H2 ; IlonUlen v. Smith, 14 Q. B. 841; [Gelen v. Hall, 2 H. & N. 371); and Harnardintone v. Soame, 6 Howell, State Trials, 10'.)5 ; Kemp v. Xerille, 10 C. B. N. S. 54i», M L. J. C. P. 158; Fray v. Blarkhnrn, 3 B. & S. 57G ; Scott v. Stansjiehl. L. U. 3 Ex. 220; 37 L. J. Ex. 155; llf/i'fV v. M L. .1. Ex. 089]. Jurisdiction of the Suhject-Matter. Preliminary distinctions. — A .superficial examination of the autluuilie.s, on the subject of traii.sitory actions, jjresents much apparent confusion that falls away when expressions are accu- rately defined, and the subject proi)erly subdivided. In the first place, the division of actions into local and transitory must not be confused with that into real, personal, and mixed'. The latter will prove no reliable guide to the former. Again, the question of jurisdiction of the person is, of course, quite dis- tinct from that of jurisdiction of the subject-matter. In deter- mining if a court have jurisdiction of a cause of action that arose, or affects property, outside of its territory, we are not assisted b}' the circumstance that the defendant has been per- sonally served with its process within that territory, or has vol- untarily submitted himself to that jurisdiction. Jurisdiction of MOSTYN V. FABRIGAS. 961 the person is quite as essential as jurisdiction of the subject- matter to make the judgment or decree a valid one, but its ex- istence does not aid us in determining whether the cause of action itself be local or transitory. Then, again, there is the distinction between the power of a court to enforce a cause of action arising, or affecting property, outside of its territory, and its duty to determine the controversy according to some law other than its own ; as, for instance, lex loci contractus or lex loci rei sitae. The application of the foreign law may determine the sufficiency of a claim or defence, but only in isolated cases does it determine the locality of an action. At all events, the duti/ to apply a foreign law is a different thing from the power to enforce a foreign cause of action. And it is a general principle that the provisional remedies incident to the law of the forum accom- pany the general jurisdiction, irrespective of the practice of the forum where the cause of action arose. So, too, the capacity in which a defendant is sued may defeat the jurisdiction ; a corporation may not exist outside of the territory of the sover- eignty which created it ; Gibbs v. Queen Ins. Co., 63 N. Y. 114. Courts may decline to interfere with the distribution of assets by a foreign administrator or receiver ; Davis v. Morriss, 76 Va. 21. And the jurisdiction of a Court of Chancery, act- ing in personam on the conscience of the defendant, is only an apparent exception to the doctrine that actions affecting the ownership or possession of real j)roperty are local and confined to the forum where the property is situated. So, too, the lack of jurisdiction in so-called Federal causes is referable mainly to those instances in which by the United States Constitution and Acts of Congress, enacted pursuant thereto, Federal courts are given exclusive jurisdiction, or one or both parties the right of removal from state to Federal courts. With this distinction the Federal cases off'er great assistance in determining the law of the jurisdiction of the sul)ject-matter. In considering the jurisdiction of causes of action conferred solely by statute, it must be remembered that while there is a presumption that the common law of one state is that of every other, there is no such presumption in the case of statutory law ; Whitford v. Panama R. R. Co., 23 N. Y. 465. Some confusion is made in the books by cases construing statutes defining the jurisdiction of local courts. It is uniformlj'^ held that such statutes do not apply to actions arising out of the state in which they were 962 .MosrvN V. I ai;i:i(;as. enacted; Home Iiis. Co. c Penii.sylv;mi;i II. K. Co., 11 Iliin 182. Again, there are exeeption.s more ajtpareiit than real, where considerations of comity and international (jhligation divest the onliiiary authoiity. As, lor instance, where coiirt.s decline jurisdiction over residents as to pro[)erty which they hold merely as agents of a foreign government; Leavitt v. Dabney, 3 Ahb. Pr. N. S. 469 ; or of actions for j)ersc»nal inju- ries done by a defendant, in the exercise of a foreign sover- eignty, even though he no longer represent it; Ilatcli r. Haez, 7 Hun 596. And it should Ik; rcmcndK-red that the American law on the juristliction of the subject-matter is somewhat com- plicated by the circumstance that it is oidy in a certain sense that the states are foreign to each other. For the purpose of this note, however, it may be assuincn provides that "Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state." Considerations of public policy sometimes intervene to make courts decline the jurisdiction which would otherwise be assumed. Thus, although as a general ride courts apply the lex loci in constru- ing all contracts involving questions of marriage, legitimacy, and rights of succession to property, they will not enforce such foreign law if it involves any conse([uences immoral, contrary to general policy, or in violation of the conscience of the state whose couits aie ap[)caled to; Eubanks v. Banks, 34 Ga. 415. Jurisdiction in general. — Every act of a court is the exercise of jurisdiction. .luiisdiction itself is the power to hear and determine the controversy between parties to an action or suit. If the law confers the power to adjudicate between the parties, that is to say, to exercise judicial power over them, the court has jurisdiction ; Rhode Island v. Massachusetts, 12 Pet. 657. The question presents itself in three forms. A court may act without this power, in which event, its act or judgment is wholly void, and is as though it had not been done ; secondly, a court may exercise its power Avrongfully, for which its judg- ment must be reversed on appeal ; or, thirdly, it may use its power rightfully, but irregularly, for which its judgment must be corrected on motion ; Paine v. Mooreland, 15 Ohio 435 ; Gray V. Bowles, 74 Mo. 419. Jurisdiction oi the person is acquired when the party is before the court, in fact, or constructively, by reason of service upon him of a process known to the law. MOSTYN V. FABRIGAS. 9G3 and duly issued and executed ; Lange v. Benedict, 73 N. Y. 12. An objection to jurisdiction on the ground of exemption from the process of the court, or the manner in which it is executed, is waived by appearance, without making the objection, or by any distinct recognition of tlie court's authority in tlie course of a cause ; Rhode Ishmd v. Massachusetts, 12 Pet. 657 ; Minne- apolis Works V. Hedges, 11 Neb. 46 ; Graves v. Richmond, 56 la. 69 ; Rheiner v. Union Depot Co., 31 Minn. 289, and cases there cited. Jurisdiction of the sul)ject-matter is the power lawfully conferred to deal with the general subject involved in the action. It is to be distinguished from the po^yer to act upon a particular state of facts ; Hunt v. Hunt, 72 N. Y. 217. And it is the power conferred by the act creating the court, or possessed inherently by its constitution ; Lamar v. Commis- sioners Court, 21 Ala. 772. In determining if a court have jurisdiction of the subject-matter, questions as to service of process, voluntary appearance, waiver of objections by answer- ing on the merits, &c., become immaterial because jurisdiction of the subject-matter cannot be conferred by consent; Dudley V. Mayhew, 3 N. Y. 9 ; Montgomery v. Anderson, 21 How. 386 ; Brondberg v. Babbott, 14 Neb. 517 ; nor by waiver, Orcutt v. Hanson, 71 Iowa 514 ; except that in doubtful cases courts will not permit the objection to prevail after the parties jji'oceed, voluntarily, to hearing on the merits. Appeal of Adams, 6 Atl. Rep. 100 ; nor by laches, Titus v. Relyea, 8 Abb. Pr. 177 ; nor by confession of judgment, Coftin v. Tracy, 3 Caines 129; Howell V. Gordon, 40 Ga. 302 (where it was held that a judg- ment confessed by a non-resident is not binding against a third jjerson, because the court has no jurisdiction against a non-resi- dent, not served with its process). And a legislature, whose powers by the constitution are confined to legislation, cannot confer or dispense Avith jurisdiction by remedial legislation validating a proceeding void for want of authority to entertain it ; Maxwell v. Goet, 11 Vroom 383, and cases there cited. On the other hand, jurisdiction cannot be abridged by agreement between the parties which limits the principle of decision to be adopted in the case ; Watts v. Boom Co., 47 Mich. 540. So, too, jurisdiction once vested cannot be ousted by subsequent events ; Etes v. Martin, 34 Ark. 410 ; Morgan v. Morgan, 2 Wheat. 290. And where a court has no jurisdiction, its judg- ment or decree is not simply voidable but void, and may be col- 964 MOSTYN V. 1 A1{K1(;AS. laterally impeached; Lamar v. Commissioners Court, 21 Ala. 772; Campbell v. MeCalian, 41 111. 4 'j ; Mersier v. Chase, 91 jNIass. 242 ; and its process then gives no protection to the otli- cer of the court exccutinj^ it; DriscoU r. Place, 44 Vt. 252; Allen V. Carey, 10 Wend. 349; Skilton v. Winslow, 4 CJray 441. And it seems that when a court havinf;^ jurisdiction is properly applied to, it must exercise it, from wliatevcr snurci' «»l)taint'd; Cook V. Whipple, 55 N. Y. 15U. But, on the other hand, where there is no jurisdiction, a court will not proceed with the mat- ter, and should not even render an opinion, lu'causi- its judt;- ment will be fruitless. A judicial judt^mcnt is the product of the power of the law. If the law do not confer the power, it is a nullity ; Smith v. Myers, 109 Ind. 1 ; Robertson v. State, Id. 79. Thus, for instance, a member of the bar cannot be given jurisdiction of a cause by consent, and a court will not even entertain an appeal from his decision; Iloagland v. Creed, 81 111. 500. Finally, distinction nuist be made between limitation of jurisdiction and iiifciiority of jurisdiction. Every court is subject to some limitation, territorial or otherwise. But courts of limited jurisdiction are not necessarily inferior in the sense that there is no ])resumption of jurisdiction when their judgments are assailed collaterally ; People v. Bradner, 107 N. Y. 1. Transitory Actions. 1 . Independently of statute law. — Transitory actions are those in which the transaction is one that might have occurred at any place; local actions are those in whicli the transaction is necessarily local. This distinction is technical, but too well established to be disregarded ; Livingston v. Jefferson, 1 lirock. 203. Personal actions whether v.r rontrartu or ex delicto are transitory and may be brought anywhere, whatever the resi- dence of the parties. In contemplation of law, the injury arises anywhere and everywdiere. The right to recover rests on the presumption that the common law prevails where the cause of action arose, and that the plaintiff could have recovered there ; Leonard v. Columbia Steam Co., 84 N. Y. 48. As soon as one person becomes liable to another in such action, that liability attaches to the person and follows him wherever he goes. He cannot, by removing from one place to another, discharge himself of that liabilitv : Stout v. Wood. 1 Blackf. 70 ; MOSTYN V. FABKIGAS. 965 Smith V. Bull, 17 Wend. 323 ; Hale v. Lawrence, 1 Zab. 714 ; Curtis V. Bradford, 33 Wise. 190 ; Peabody v. Hamilton, 106 Mass. 217, and cases there cited. Such actions include slander, Boynton v. Boynton, 43 How. Pr. 380; negligence, Central R. R. Co. V. Swint, 73 Ga. 651 ; Atkinson v. Erie Railway Co., 2 Vroom 309 ; assault and battery, Watts v. Thomas, 2 Bibb. 458 ; NcAvman v. Goddard, 3 Hun 70 ; trover, Robinson v. Arm- strong, 34 Me. 145; case for assisting plaintiff's slave to escape. Northern R. R. Co. v. Schell, 16 Md. 331 ; fraud, Johnson v. Whitman, 10 Abb. Pr. N. S. Ill ; enticing away plaintiff's wife, Burdick v. Freeman, 46 Hun 138. As to that species of property which has no habitat^ such as debts or choses in action, jurisdiction of the person must include jurisdiction of the thing ; Keyser v. Rice, 47 Md. 203. An action lies for illegal collec- tion of a tax in another state ; Henry v. Sargent, 13 N. H. 321. An action will be maintained by one non-resident against another to subject to the payment of a debt the shares of a domestic corporation ; Quarl v. Abbott, 102 Ind. 233. In Bar- ton V. Barbour, 104 U. S. 126, it was held that a receiver can- not be sued even at law, in the courts of one state for the personal wrongs of his agents, when he is in possession of and managing property administered by the court of his appoint- ment, in another state. But it was decided otherwise in Allen V. Central R. R. Co., 42 Iowa 683, and in Kennc}^ v. Crocker, 18 Wise. 74, where it was held that the action would lie without leave of court even though the receiver had been appointed by the Federal court. The courts will not enforce the internal revenue laws of another Jiation ; McFee v. South Car. Ins. Co., 2 McCord 503. And qucere, if a court will entertain an action for injury resulting from the defective condition of a highwa}^ in another state, the matter intimately concerning the internal police regulations of that state ; Hunt V. Pownal, 9 Vt. 411 ; and see Molony v. Dows, 8 Abb. Pr. 316, where the court declined jurisdiction of an action for injuries done by a vigilance committee in another state ; and see Pickering v. Fish, 6 Vt. 102. But where all the parties are non-residents and the cause of action arose out of the state, al- though the court does have jurisdiction, its exercise is a matter of sound discretion, and it should not be exerci;:;ed unless spe- cial causes are shown to exist ; Burdick v. Freeman, 46 Hun (N. Y.) 138. The fact, however, that there is fear of the defend- 966 MOSTYN V. FABUIGA8. ant's influencincr a jury in his state is not a reason recognized for retaining jurisdiction. And it should Ije declined if de- fendant is only casually here ; DeWitt v. Buchanan, 54 Barb. 31. Jurisdiction in such cases rests on comity and will be de- clined where a statutory tort (putting off defendant from cars between stations) has been committed outside of the United States, both parties being aliens ; Great Westei-n U. Co. v. Miller, 19 Mich. 305. So, too, the cognizance oi wrongs on the high seas, both parties and the vessel being foreign, is not a matter of right but of discretion, and it ought not to be ex- ercised where, for aught that appears, both parties intend to re- turn immediately to their own country ; Gardner v. Thomas 14 Johns. 134. Such an action, however, by a discharged sea- man, or one leaving without the mate's objection, should be entertained ; Johnson v. Dalton, 1 Cow. 543. And on the other hand, a stipulation by a seaman not to sue except in his own country ought to be observed unless the voyage is ended; Olzen V. Schierenberg, 3 Daly 100. The objection to entertain- ing jurisdiction in cases where it is a matter of discretion, should be taken by motion ; I)e Witt v. Buchanan, 54 Barb. 31. A mere request to the court to charge the juiy that ac- tion is not maintainable held insufficient ; Burdiek v. Freeman, 46 Hun 138. Where all the facts transpired, while })oth parties were resi- dents of another state, the rights must be determined accord- ing to the law of that state ; Sal tee v. Chandler, 26 Mo. 124 ; R. R. Co. V. Kanaley, 17 Pac. Rep. (Kans.) 327. On the other hand, where in an action of slander for words not actionable at common law, but made so by the statute of the forum, it will not be presumed that a similar statute exists in the state where the words were spoken, and the action will not be entertained ; Stout V. Wood, 1 Blackf. 70. But although a cause of action be assigned in a state where such assignment is void, the assignee will be recognized in the forum of the state where the cause of action arose, if in such state such an assignment would be valid; Vimont v. 11. R., &c., Co., 69 Iowa 296. Provisional reme- dies follow the law of the forum. So that in an action between non-residents, defendant can be arrested for fraud in contract- ing a debt, although he could not, in the state where it was contracted, and although the whole transaction took place out- side of the state ; Johnson v. Whitman, 10 Abb. Pr. N. S. 111. MOSTYN V. FABRIGAS. 967 A foreign creditor may have against a foreign debtor, tempo- rarily in the state, all the remedies afforded by its court even though harsher than the remedies of the place where the con- tract was made ; Sicard v. Whale, 11 Johns. 194 ; Peck v. Hozier, 14 Johns. 346. The pendency of an action in one state is no bar to an action between the same parties and with the same subject-matter in another. A judgment in one state does not merge the cause of action so as to oust jurisdiction in other states ; Davis v. Morriss Executors, 76 Va. 21. Transitory Actions. As affected by Statute Law. A remedy given by a statute of another state, for wrong done there, will be enforced in the courts of any other state whose public policy is not opposed thereto. Thus, where a person is killed by the negligence of a defendant in any state where the statute gives the personal representative the right to recover damages, either generally for the benefit of the estate, or specially for the benefit of the widow and next of kin, or otherwise, recovery can be had in any other state, where the personal representative, properly qualified, applies for relief ; Leonard v. Navigation Co., 84 N. Y. 48 ; Dennick v. R. R. Co., 103 U. S. 11 ; Morris v. R. R. Co., 65 Iowa 727. The contrary doctrine, where the foreign statute does not declare the rem- edy to be for the benefit of the estate generally, is held in cer- tain jurisdictions on the ground that this remedy, given to the personal representatives as trustees of a right of property in the widow and next of kin, is not of such a nature that it can be imparted to a foreign administrator virtute officii., so as to give him a right to sue in the courts of the state where ap- pointed, and to transmit the rights of action from one person to another in connection with the representation of the deceased. " A succession in the right of action not existing by the common law cannot be prescribed by the laws of one state to the tribunals of another ; " Richardson v. R. R. Co., 98 Mass. 85 ; Taylor v. R. R. Co., 78 Ky. 348. So, too, such relief was denied on the ground that the administrator is not appointed to represent the interest for whose benefit the foreign statute gives the remedy ; Mackay v. R. R. Co., 14 Blatch. Qb ; Wood- ard V. R. R. Co., 10 Ohio St. 121 ace, because the statute es- tablishes a special trust. Semhle aliter, if an administrator 968 MOSTYN V. FA 15 RIG AS. appointed in the state where the injury occurred sues here to recover the funds for distribution in the state of appointment. But the former seems to be the sounder doctrine. The court of tlie forum can compel proper distribution as well as the foreign court. The administrator often receives property which must go direct to the next of kin or legatees and not to tlie ceneral estate. The statute could have limited the ritdit if that had been the intention, -It is dillicult to understand how the nature of the remedy or the jurisdiction of the courts to enforce it is in any manner dependent on the question whether it is a statutory or a common law right ; " Jus- tice Miller, in Dennick v. R. R. Co., 108 U. S. 11. On the other hand, although actions for personal injuries committed abroad are sustained in the first instance, witliout proof of the lex loci, this presumption does not apply where the wrong com- plained of is one for which redress can only be given by stat- ute ; Mtd)()nald v. Malory, 77 N. Y. 540. So that if defend- ant's wrong causes deatli in a state where there is no statute giving a remedy, the fact that there is such a statute in the state of the forum gives no cause of action: Hyde r. Wabash Co., 01 Iowa 441 ; Needham v. R. R. Co., 38 Vt. 204. Even though both parties are citizens of the state of the forum, and the negligence causing the death was a breach of contract en- tered into in such state. If the wrong is not actionable where it was committed, it would be contrary to all reason that it should be made so, by invoking redress in another state ; State V. R. R. Co., 45 Md. 41. Such statutes have no extra-territorial effect and it cannot be presumed with respect to positive stat- ute law, that the laws of other states are similar to those of the forum ; Debevoise v. R. R. Co., 98 N. Y. 377. A liability in the nature of a penalty imposed by statute will be enforced only by the courts of the state which enacted it ; National Bank v. Price, 33 Md. 498. As, for instance, where a statute makes the directors of a company liable for its debts, in consequence of certain derelictions of duty. It is not like the contractual obligation of stockholders, Corning v. McCullough, 1 Comst. 47 ; or the charter obligation of incor- porators, and this liability of directors is not to be construed as arising out of a contract, implied from the acceptance of the charter ; Bird v. Hayden, 1 Robertson 383 ; Derrickson v. Smith, 3 Dutcher 166. Foreign statutes are respected and MOSTYN V. FABRIGAS. 969 enforced beyond the territory in which they are enacted only as a matter of comity and public policy, and foreign courts will not enforce such as impose, by way of penalty, on stockholders or directors, liability for corporate debts ; Halsey v. McLean, 12 Allen 438. The same doctrine applies to usury laws ; Gale V. Eastman, 7 Mete. 14. And to statutes imposing double damages on railroad companies for injury to property, in running their trains ; Bettys v. R. R. Co., 37 Wise. 326. Sem- hle contra^ Boyce v. R. R. Co., 63 Iowa 70, in which case, how- ever, it is to be noted that a similar statute existed in the court of the forum, making the "-policy" the same in both states. So, too, a penalty imposed by act of Congress upon a national bank will not be enforced by a state court, although Congress expressly authorizes it so to do ; Missouri Tel. Co. v. National Bank, 74 111. 217. Sed eo7itra, National Bank v. Overman, 22 Neb. 116, and cases cited. And a statute making a witness convicted of an infamous offence, incompetent to testify, has no extra-territorial effect; Commonwealth v. Green, 17 Mass. 515. On the other hand, though foreign penal statutes will not be enforced, yet where, e.g., as in statutes relating to gam- bling, they create a debt, the cause of action for the debt be- comes transitory ; Flanagan v. Packard, 41 Vt. 561. A legislature cannot create personal liabilities on account of transactions occurring beyond its territory, and give them a character which they do not have at the place of their occur- rence ; Steamboat v. Stunt, 10 Ohio St. 582 ; Le Forest v. Tol- man, 117 Mass. 109; Stout v. Wood, 1 Blackf. 70. Comity does not require a court to sacrifice the rights of its own citi- zen to protect a plaintiff against the consequences of his own acts under statute and municipal regulations of other states ; Woodward v. Roane, 23 Ark. 523. An official bond given in another state, and by statute, enforceable only in a particular way and by a particular officer as often as necessary, for the benefit of any relator, can be enforced, in that way, only by the courts of such state ; Pickering v. Fish, 6 Vt. 102. A vessel registered at a port of the state is within its territory, even while on the high seas, in the sense that an assignment by the Insolvency Court passes title as against subsequent transfers or proceedings in rem; Crapo v. Kelly, 16 Wall. 610. A court will enjoin one citizen at the prayer of another, from prosecut- ing an attachment in another state, to subject to the j^ayment 970 MOSTVN V. KAHllIGAS. of a debt, earnings exempt by the law of the state, of which the parties are residents; Snook v. Snetzer, 2') C)liio St. olO. TranHitory Actions, quasi Local. a. At law. — It is a jjeneral rule that actions iuvolvinjj the ownership or possession of lands are hx-al. And courts will not take juiisdiction of such actions affecting lands outside of their territory, even to prevent a failure of justice or l)ecause the remedy of the forum is less difheult or doubtful; Living- ston V. Jefferson, 1 liroek, 203. Actions of trespaxa quare clauHum froi/it are local; De Courcy v. Stewart, 20 Hun 501. Even though the trespass be followed by asportation of chattels; Dodge V. Colby, 37 Ilun 515. But it seems that if the action were simply for conversion of jtroperty so carried away, thus waiving the original trespass, action would become transitory ; American Co. v. Middleton, 80 N. Y. 408 ; Newman v. Goddard, 3 linn 70 ; Whiddcn v. Sealey, 40 Me. 247. Hut defendant to oust the jurisdiction nnist i)rove the property to be realty. It must api)ear affirmatively that plaintiff owns the soil ; Rogers V. Woodbridge, 15 Pick. 14<». And where the gravamen of the action is negligence, as for negligently setting fire to plain- tiff's house. Home Ins. Co. v. II. II. Co., 11 Hun 182, or for negligently shipping explosives resulting in injury to real property, Barney v. Burstenbindcr, 7 Laus. 210, the action is transitor}-. So, too, actions for diverting water are local; Watts V. Kinney, 23 Wend. 4S4. Although it seems tliat Chancery, in some cases, has taken jurisdiction to prevent hai'd- ship. And seinhle contra,, if action is brought in the state where the diverting is done, even though the lands injured are in another state ; Manville Co. v. Worcester, 138 jVIass. 89. Ao tions for wrongfully overflowing plaintiff's land are local, Eachus V. R. R., 17 111. 434, and cannot be entertained where the wrong was done, if the injury be to lands in another state ; Wooster v. Lake Co., 25 N. H. 525. Actions for waste are local; Cragin v. Lovell, 88 N. Y. 258. And a nuisance on lands in one state, injuring lands in another, is actionable in the latter; Ruckman v. Green, 9 Hun 225. Actions for breafh of convenants affecting real property and de^^ending upon privity of estate are local; Lewis v. Ellis, 6 Mass. 331; Clark v. Scud- der, 6 Gray 132; White v. Sanborn, 6 N. H. 220. But so long MOSTYN V. FABRIGAS. 971 as the recovery does not affect the real property, and does not depend on privity of estate, actions are not local, even though real property be the subject-matter. Therefore, actions for use and occupation, Henwood v. Cheeseman, 3 Serg. & R. 500, and for damages for breach of covenant to convey, Mott v. Codding- ton, 1 Robertson 267, are transitory ; see Bethell v. Bethell, 92 Ind. 318. And in an action on a bond given for the price of land in another state, the court has jurisdiction to determine the question of title. The principal draws after it all incidents ; Clark v. Mclntyre, Add. 235. b. In equity. — The same rule as to local actions is followed in a court of equity. Its decree cannot bind foreign lands. But it can bind the conscience of the defendant with respect to the land, and therefore having jurisdiction of the person it will proceed in all cases of fraud, trust or contract, even though its decree affect land outside of the territory; De Klyn v. Wat- kins, 3 Sandf. Ch. 185; Vaughn v. Barclay, 6 Whart. 392. Thus courts of equity have jurisdiction to compel a conveyance by defendant of land in a foreign state ; Gardner v. Ogden, 22 N. Y. 327 ; Farley v. Shippen, 1 Wythe 254. But no convey- ance except by the party holding the actual title can be effec- tive. A court cannot by its judgment or decree pass the title to land situate in another country ; Watkins v. Holman, 16 Pet. 25. No statute or decree of another state, without the actual conveyance according to the law of the situs, can affect the title itself ; West v. Fitz, 109 111. 442. In default of convey- ance by the owner, the court cannot transfer title by the deed of its own officers, e.g., by a guardian ad litem for infants ; Page V. McKee, 3 Bush 136. And courts will not establish a trust affecting lands in another state, Servis v. Nelson, 1 McCart. 94 ; nor compel a testamentary trustee with power under a will to sell lands in another state to exercise such power. Blunt v. Blunt, 1 Hawks 365. But courts will enforce specific per- formance of a contract relating to foreign lands, Newton v. Bronson, 13 N. Y. 587; Olney v. Eaton, 66 Mo. 664; even though where the contract to be performed within the territory of the court is made outside by non-residents, Baldwin v. Tal- madge, 39 Super. Ct. (N. Y.) 400, and cases cited ; and even though the only defendant who has an interest in the land is without the jurisdiction, by compelling delivery of an executed deed in the possession of the vendor's agent. Ward v. Arre- 972 MOSTYN V. FABKKiAS. doiulo, Hopkins 213 ; Sliattuck v. Cassidy, 3 Edw. lo2. But a court cannot annul the conveyance of land situate in another state. The state of the situs could disregard such a decree. While a court can compel those before it to release their claims, it cannot assume that the rights of hoyid fide purchasers have not intervened; Cooley v. Scarlett, 38 111. 31G ; Davis v. Head- ley, 7 C. E. Green 115. The title to immovable property can only be affected in the mode recognized by the laws of the state Avithin whose territory it is situated. If it could be, by mere decisions of the courts of other states, registry laws would be of no avail ; City Ins. Co. v. Commercial Bank, 68 111. 348. But it was decided, in Guerrant v. Fowler, 1 lien, ik, ]Mun. 5, that a court has jurisdiction to decree cancellation of a deed obtained within its jurisdiction by fi-aud. Courts of equity can state an account between owners of an island in a for- eign country. The decree would be in personam not in rem ; Wood V. Warner, 2 McCart. 81. A court of equity will not enforce a trust created by statute of another state relating to land in that state, a bond to a court of that state being required by such statute, for the proper performance of the trust ; Alger V. Alger, 31 Ilun 471. Courts of equity, at the re([uest of one railroad claiming the exclusive right, will not take jurisdiction of a bill to enjoin another from building its road in a territory outside of the state ; Northern Indiana R. K. Co. v. Northern Central R. R. Co., 15 How. 233. But it was decided in Alex- ander V. ToUeston Club, 110 111. 65, that a court has jurisdic- tion to restrain defendant from interfering with a right of Avay in a foreign state. Courts cannot compel a sale of land situ- ated in another state or appropriation of proceeds to pay com- plainant's mortgage ; Tiffany v. Crawford, 1 McCart. 278. But a strict foreclosure of a mortofafje on lands in another state will be granted; House v. Lockwood, 40 Hun 532. And where tAvo or more corporations of different states are consolidated, a court of either of the states in foreclosinsr a mortCTagfe on the consolidated property has jurisdiction in one suit to sell all the property in all the states. Separate suits are unnecessary ; Blackburn v. Selma, &c. R. R. Co., 2 Flip. C. Ct. 525 ; Mead v. New York, &c. R. R. Co., 45 Conn. 199. Courts have power to declare void a mortgage on foreign lands, and to decree sur- render of same ; Williams v. Fitzhugh, 37 N. Y. 444. Also to compel a judgment debtor to execute a deed of foreign lands MOSTYN V. FABRIGAS. 973 for the benefit of his creditors ; Bailey v. Ryder, 10 N. Y. 363. But they have no jurisdiction to restrain a nuisance affecting foreign lands ; Morris v. Remington, 1 Pars. Eq. 386. A fraud- ulent conspiracy in another state to deprive plaintiff of title to lands in such state is transitory, so far as his right to damages and an account of rents is concerned; Mussina v. Belden, 6 Abb. Pr. 165. So, too, suits for partition of real property are local, although a court in one state, may, it seems, entertain jurisdiction, where lands are situated in that and another state, if it be possible to allot complainant's share from the lands in the state of the forum ; Gates v. Woodrow, 2 Dana 457. Courts of the state where the land is situated will not recognize title made by the court of another state, in a decree of partition ; Johnson v. Kimbro, 3 Head 557 ; White v. White, 7 Gill & J. 208. A stipulation between parties agreeing to partition in one state of lands, in another gives jurisdiction, and an injunc- tion of partition proceedings in the other state will be granted ; Bowers v. Durant, 43 Hun 348. Foreign Corporations. Independently of statute, a foreign corporation cannot be sued in invitum, even though some of its stockholders reside in the state, and service is made there on the secretary while temporarily present ; Middlebrook v. Springfield Ins. Co., 14 Conn, 306. And although a statute provide generally for service on a corporation by service on one of its officers, such service if made on an officer of a foreign corporation does not give the court jurisdiction. Service must be made in the state of its creation ; Sullivan v. La Crosse Co., 10 Minn. 386. But a state may, in permitting a foreign corporation to transact business, impose as a condition that the corpo- ration shall accept as sufficient the service of process on its agents, and such condition may be implied as well as expressed ; St. Clair v. Cox, 106 U. S. 350, 356. The agent or officer must be in the state in a representative or official capacity, and not as a mere "casual individual"; at all events, in actions by non- residents on causes of actions arising outside of the state ; Newell V. R. R. Co., 19 Mich. 336. Where a foreign corporation is practically a domestic one, i.e., has an office and transacts business in the state, it may be sued like a domestic corporation on transactions occurrinp- in such state ; Bawkright v. Ins. Co., 974 MOSTYN V. FAHUIGAS. 55 Ga. 194. But a railroad company incorporated in one state, tlioiisfh runninnt here the justice had jurisdic- tion ; and if so, with deference to the opinion of Mr. Justice Gould, in the case tried before him in Shropshire, the convic- tion, as to the matter of fact contained in it, is conclusive in favour of the justice in an action, though it is not so in an infor- mation. If it were not, instead of the mischief to be appre- hended from the oppression of the justice, no one would act in the commission. 2. As to the objections which have been taken to the convictions in point of form, he said, it would be time enough to answer them when the convictions were re- moved and stood in the i)aper for argument. At present it was suflicient to observe that they continued as so many judg- ments on record, and, as such, conclusive, till reversed by appeal, or quashed by this court. He agreed the stat. 7 Jac. 1, c. 5, did not vary the law ; but insisted, that before that statute, it would have been a good plea for the defendant to have stated that the plaintiff was convicted, &c., as in this case ; and if the plaintiff had traversed the conviction, the defendant might have demurred. The sole ground and object of taking away the certiorari in the several acts of parliament for that purpose, was to prevent vexatious suits against justices for mere informalities in their proceedings. But they still remain liable to an information if they wilfully act wrong. This Court has often lamented, when obliged to quash a conviction for want of form, because it opens a door to an action. As to this being but one continued offence, it might be, that CEEPPS V. DUEDEN ET ALIOS. 983 'it was carried on at four different places; for there is evidence of four different acts, and the Court will not presume the con- trary against the justice. But, if the nature of the offence is such, that it could only be committed once in the same day, still the plaintiff has no remedy, while the convictions are in force, but by removing them into this court to be quashed for illegality. Lord Mansfield. — May there not be this point, that the justice had no jurisdiction, after convicting the plaintiff in the first penalty ? The act of parliament gives authority to punish a man for exercising his ordinary calling on Sunday. The justice exercises his jurisdiction, by convicting him in the penalty for so doing. But then, he has proceeded to convict him for three other offences in the same day. Mr. Coivper. — If he has done so, it is only a ground for quashing the convictions ; but no priority appears to give legality to one in preference to the other. Lord Mansfield. — This point you agree in ; that if the jus- tice had no jurisdiction, it is open to inquiry in an action. Now, if there are four convictions, for one and the same offence committed on one and the same day, three of them must necessarily be bad ; and, if so, it does not signify as to the merits of the action which of the four is legal, or which illegal. I do not remember that at the trial it was contended the plaintiff would be entitled to recover if the convictions were informal ; or that any objection was taken to their formality there. The single question intended to be tried was, whether there could be more than one penalty incurred for exercising a man's ordinary calling on one and the same Sunday ? As to that there can be no doubt: the only doubt was, whether that objection could be taken at the trial before the convictions were quashed. In the extent in which the argument upon that point has proceeded, it is a matter of considerable consequence; and, as a general question, I should be glad to think of it. Aston, J. — The Court will never grant an information unless the conviction is quashed. Hex v. JTeber, 2 Str. 915. As to the general question before the Court, suppose the justice were to convict for a single offence, where no offence at all had been committed, would not an action lie in that case '^ If it would, why not in this, where there are four convictions for one and 9H4 (JIIKIM'S V. DlltDEN KT ALIOS. the same oi'teiice/ It seems t<> me tliat llie luikin^ every roll might as well have been eharged as a sejjarate ofteiu-e. Cur. n Car. -, c. 7, there can be but one offence, attended with one single penalty, on the same day. In answer to this it was objected, on the })art of the def^-nd- ants, that no such objection could l)e taken to the convictions till after they had been quashed in this couit ; and that if a case were to be made with regard to that, it nmst be taken upon the question, whether, according to the true construc- tion and meaning of the act, the party could be guilty of repeated offences on 0113 and the same day? Therefore, the questions stated for the opinion of the court on the present case are, first, " whether, in this action, and before the convic- tions were quashed, an objection could be made to their legal- ity? If the court should be of opinion no objection could be made, then a nonsuit to l)e entered up ; but in case the objec- tion might be made, then, "2ndly, whether the levy made under the three last warrants could be justified?" The first question (a) Nor that the defendant made {h) Sec R. v. Lovett, 7 T. R. 152 ; default. See li. v. AUhu/tnu. 2 Str. /.'. v. Theed, 2 Str. 919; R. v. Smith, 678 ; R. V. Venables, lb. G30 ; R. v. 8 T. K. 588. Stone, 1 East 649. CKEPPS V. DURDEN ET ALIOS. 985 is, " whether any objection can be made to the legality of the convictions before they were quashed." In order to see Avhether it can, we will state the objection : it is this ; that here are three convictions of a baker, for exercising his trade on one and the same day ; he having been before convicted for exercising his ordinary calling on that identical day. If the act of parliament gives authority to levy but one penalty, there is an end of the question, for there is no penalty at common law. On the construction of the act of parliament, the offence is " exercising his ordinary trade upon the Lord's day ; " and that, without any fractions of a day, hours, or minutes. It is but one entire offence, whether longer or shorter in point of duration ; so, whether it consist of one, or a number of particu- lar acts. The penalty incurred by this offence is five shillings. There is no idea conveyed by the act itself, that, if a tailor sews on the Lord's day, every stitch he takes is a separate offence ; or, if a shoemaker or carpenter work for different cus- tomers at different times on the same Sunday, that those are so many separate and distinct offences. There can be but one entire offence, on one and the same day ; and this is a much stronger case than that which has been alluded to, of killing more hares than one on the same day ; killing a single hare is an offence ; but the killing ten more in the same day will not multiply the offence, or the penalty imposed by the statute for killing one. Here, repeated offences are not the object which the legislature had in view in making the statute : but singly to punish a man for exercising his ordinary trade and calling on a Sunday. Upon this construction, the justice had no juris- diction whatever in respect of the three last convictions. How then can there be a doubt, but that the plaintiff might take this objection at the trial? 2ndly. With regard to the form of the defence, though the stat. 7 Jac. 1, c. 5, enables justices of peace to plead the general issue, and give the special matter in evi- dence ; in doing so, it only allows them to give that in evidence, which they must before have pleaded ; and, therefore, they must still justify. But what could the justification have been in this case, if any had been attempted to be set up ? It could only have been this : that, because the plaintiff had been convicted of one offence on that day, therefore the justice had convicted him in three other offences for the same act. By law that is no justification: it is illegal on the face of it; and, therefore, as 986 rUKIM'S \. DUHDKN ET ALIoS. was very ri^litly adinitted by the counsel for tlic defeiulaiil in the aiounient, if put upon the record by way of jilea, Avould liave been bad, and on dcnuirrer must have l)L'en so adjudj^cd. Most clearl}', then, it was open to the phiintiff upon the general issue, to take advantage of it at the trial. The (piestion d(»es not turn upon niceties; upon a computation how many hours distant the several bakings, happened ; or upon the fact of which conviction was prior in jjoint of time ; or that for uncer- tainty in that respect, they should all four be held bad: but it goes upon the ground, that the offence itself can be committed only once in the same day. We are, therefore, all clearly of opinion, that if there was no jurisdiction in the justice, tlie same might have appeared at the trial: of course, we are of oi)inion that this objection might have been made, and that the objection itself, in point of law, is well founded. Per Cur. I*ostea to be delivered to the plaintiff. [Si'n.iiXT to tlu> act for the i)roto(tion of justices, 11 & 12 Virt. c. 44, a summary of which will presently he {jiven,] the rule is tlic sauie — wliether the conviction appear on the face of it to be for an oHence not within the miiiiistrate's juri.siliction — or to be for an oH'encc within the magistrate's jurisdiction, but defective for want of the circumstances necessary to a conviction for that ott'ence, Griffiths v. Harries, 2 M. & W. 335; see Lancaster V. Greaces, 9 B. & C. G28 ; Murrjan v. Ihujhes, 2 T. K. 225; Fearnley v. Worth- ington, 1 M. & G. 491; Hardy v. Ryle, 9 B. & C. G03; Groome v. Forrester, 5 M. & S. 320; — or of a sufficiently specific statement of them, Neirjnan v. Karl of Hardwicke, 8 A. & E. 127 ; R. v. Read, 9 A. & E. 619 ; for, as was observed in Lancaster v. Greaves, though tlie conviction is conclusive upon matter of fact, and, if the defendant mean to rely on matter of fact, he should make his defence at the time, the rule is not so as to matter of law. So if the conviction of two persons be joint for offences ex necessitate rei several, it will be void, and (subject now to the act above mentioned) they may sue in trespass if it be acted upon, Morgan v. Brown, 4 A. sSc E. 515. And the rule is the same in the case of a single conviction of one person for two distinct ofl'ences, Neicman v. Bendyshe, 10 A. & E. 11. But " a conviction by a magistrate who has jurisdiction over the suljject- matter is, if no defects appear on the face of it, conclusive evidence of the facts stated in it," Brittain v. Kinnaird, 1 B. & B. 482; per Dallas, C. J. In that case trespass was brought against justice for taking a boat; in their defence they relied on a conviction which warranted them in doing so. The plaintiff offered evidence to controvert the facts stated in the conviction, l)ut it was held not to be admissible. Acco7-d. Basten v. Careic, 3 B. &C. G49; Faiccett V. Fowles, 7 B. & C. 394; Gray v. Cookson, 16 East, 13 ; Loivther v. Earl Rad- nor, 8 East, 113; Ashcroft v. Bourne, 3 B. & Ad. 684; R. v. Bolton, 1 Q. B. 66; [Colonial Bank of Australasia v. Willan, L. R. 5 P. C 417 ; 43 L. J. P. C. 39 ;] CEEPPS Y. DUEDEN ET ALIOS. 987 and the same attribute, viz., that of being conclusive evidence of the facts stated tlierein, and properly tending thereto, seems to have been thought to belong to every adjudication emanating from a competent tribunal, Aldridge v. Haines, 2 B. & Ad. 395 ; and the cases cited by Coleridge arguendo ; [see also the Whitlmrij-on-Severn Union Case, 4 E. & B. 321 ; De Cusse Brissac v. Rath- hone, G H. & N. 301; Kemp v. Neville, 10 C. B. N. S. 549; 31 L. J. C. P. 163. Ex parte Lamert, 33 L. J. Q. B. 69.] Even when the conviction had been quashed it was provided by the 43 G. 3, c. 141, that the party convicted, in an action against the justices, which was required to be on the case, should only obtain two pence damages, besides the amount of the penalty if levied, and no costs of suit, unless he expressly averred malice and want of probable cause ; and that he should not recover the amount of the penaltj' if the defendant proved him to have been guilty of the ofl'ence of which he had been convicted, and that he had undergone no greater punislnnent than was by law assigned thereto. And it was held under this act that he must at the trial prove not merely his own innocence of tlie oflence of which he was convicted, but also what took place before the justice at the time of conviction, in order that it may appear whether there was probable cause or no. Barley v. Bethune, 5 Taunt. 580. See Baylis v. Strickland, 1 M. & Gr. 591. But the Stat. 43 Geo. 3, c. 141, is now repealed by the 11 & 12 Vict. c. 44, intituled, "An act to protect justices of the peace from vexatious actions for acts done by tliem in the execution of their office," the first section of wliich provides that every action to be brought against any justice after the 2nd of October, 1848, for any act done by him in the execution of his duty as such justice, as to any matter within his jurisdiction, [see SommerviUe v. Mirehouse, 1 B. & S. 652; Lawrenson v. Hill, 10 Irish C. L. R. 177; Gelen v. Hall, 2 H. & N. 379,] shall be on the case, and tlie declaration shall allege the act to have been done maliciously and without reasonable and probable cause, and if such allegation be not proved upon tlie plea of the general issue, the plaintifl" shall be nonsuited, or a verdict shall be given for the defendant. See Kendall X.Wilkinson, [4 E. & B. 680;] 24 L. J. M. C. 89; Isemble, in cases witliiu this section, tlie action may be maintained wiCliout the conviction or order being quashed, per Lord Campbell, C. J., R. v. Wood, 5 E. & B. 58 ; and see Lawrenson v. Hill, supra. Qucere, however, whether notwithstanding this act the justice, for acts done in the execution of his office, might not claim the protection extended generally to judicial acts, even though the act was done maliciously. See the cases as to judges cited ante, at the end of notes to Mostyn v. Fabrigas-I But when the act is done Ijy the justice in a matter, of which he has no jurisdiction, [as in Crepps v. Burden'] or where he exceeds his jurisdiction, he may, by section 2, be sued as before the statute, except Avliere tlie act com- plained of has been done under a conviction or order, in which case "the conviction" (sic in statute) must be fii'st quashed — or if done under a war- rant for appearance followed by a conviction or order, the conviction or order must be first quashed — [or if such warrant be not followed by con- viction or order or be upon information for an indictable offence, still no action can be maintained if a summons was previously served and disobeyed]. See, as to the construction of this section, Learyx. Patrick, 15 Q. B. 266; Newhould v. Coltman, 6 Exch. 189; Haylock v. Sparke, 1 E. & B. 471 ; [Pease V. Chaytor, on demurrer, 1 B. & S. 658 ; 31 L. J. M. C. 1 ; on motion, 3 B. & S. 620; Pedley v. Davies, 10 C. B. N. S. 492; 30 L. J. C. P. 374; Bessell x. Wil- 988 cuEPi'S V. dui:ui:n r.r alius. son, 1 E. & B. 480; Lnmrenson V. /////, 10 Ir V. L. U. 177; Lnlor v. Bland, 8 Ir. C. L. U. 11"); ami Bolt v. Arn»/,l, Q. H. 2,s L. .1. M. C. 207, whcro tlio obj.-L- tion to a conviction and warrant of connnitnient was tliat tlic justices had signed it leaving l)laiiks for tlie amount of costs, but tiiis omission was held, in an action for false imprisonment against the justices brougiit after the conviction had been quashed, to be an erroneous exercise (jf jurisdiction only, and not an excess.] The summons mentioned in the statute, the non-attendance upon which is to bar the maintemince of an action, is a summons hi/nrf conviction; the section does not apply to a summons and warrant issued after convicti(m, with a view to the levying of the penalty imposed, Btsstll v. Wilxnii, 1 E. & B. 489. In Barton v. BrickmU, i;{ Q. B. :$;»;i, an action of trespass was brought against a justice for wrongfully seizing the plaintilPs goods. It appeared tliat the defendant hail convicted the plaintitl' under the 'ill far. 2, c. 7 (for Sunday trading), in a penalty anil costs to be levied by distress. The conviction directed that in ca.se of non-payment, and if there should be no distress, the plaintitt" should be put in the stocks for two hours, unless the penalty and costs were sooner i)aiil. The goods of the plaintitV were dis- trained, and the conviction was quashed on a<-count of the illegal altermitive contained in it, as to the stocks. It was lu'ld that tiie defendant was protected under sect. 1 of this statute, and that sect. 2 did not apply, as the dffindnnt had jurisdirtion to ordir thr distress, in resjjcct of which alone the action was brought. Sect. 3 i)rotects a justice hmill fide granting a warrant upon tiie conv iction of another justice, winch is defective for want of jurisdiction, and nnikes the convicting justice alone liable. Sect. 4 prohibits actions by |)arties rated to the poor, though not liable to be rated, or in respect of any defect in such rate against the justices issuing a distress warrant thereon, — and further provides that the exercise of dis- cretionary powers vested in a justice by statute, shall not furnish ground of ection. By sect. 5 [if a justice refuses to do any act relating to the duties of his office], the Court of t^neen's Bench [may order him to do the act, and he will not be] liable to [any proceeding for having obeyed the order. It has been held that this section only applies if the act be one by which the justices incur liability, Re(j. v. Percy, L. It. 9 Q. B. 64, but in the later case of Iie(j. v. PhilUmore, 14 Q. B. D. 474, note, the court considered that this rule would narrow the operation of the statute too much, though they declined to lay down any absolute nde as to when the proceeding should be under this section, and when by mandamus.] The court acts upon this section where justices refuse to determine a case over which they liave jurisdiction, [and a mandamus to them to hear and determine the case would issue, B. v. Cotton, 15 Q. B. 5G9; R. v. Justices of Bristol, 18 Jur. 426, in nota ; S. C. 3 E. & B. 479, in notci ; R. v. Paijnter, 7 E. & B. 328 ; R. v. Dayman, ib., 672 ; 7?. v. Dunn, 7 E. & B. 220; but not where the refusal is merely fonnal, and made for the purpose of eliciting the opinion of the court, and deciding the case according to the opinion given, R. v. Pcujnter ; R. v. Dayman. It is sometimes a nice question wliether tlie justices have declined jurisdic- tion, or wlietlier they have adjudicated, R. v. Broicn, 7 E. & B. 757; R. v. Paynter ; R. v. Dayman; R. v. Tlie Mayor, &c., of Rochester, 7 E. & B. 910; R. V. Wood, 5 E. & B. 49: and R. x. Padicick, 8 E. & B. 704, in which case tlie dismissal 1>y (|uarter sessions of an ajipeal for want of jurisdiction was CIIEPPS V. DURDEN ET ALIOS. 989 held to be a decision within tlie meaning of 12 & 13 Vict. c. 45, s. 5. See also Carr v. Strinrjer, E. B. & E., where, though an appeal did not lie, yet the court entertained the question so far as to examine -whether they had juris- diction, and to give costs to the respondent : and see Ex parte Monroe, 8 E. & E. 822]. But the court refused to make an order, directing justices to issue a war- rant of distress, where the liability of the person against whom it was sought appeared seriously doubtful, R. v. Browne, 13 Q. B. 654. [Orders to issue warrants of distress were made in R. v. Justices of Kingston-npon- Thames, E. B. & B. 2oG; R.v. Bradshaic, 29 L. J. M. C. 176; R. v. Eastern Counties Rail. Co., 5 E. & B. 974; R. v. Lindford, 7 E. & B. 950; R. v. Boteler, 33 L. J. M. C. 101 ; R. v. Higginson, 31 L. J. M. C. 189 ; In re Hartley, 31 L. J. M. C. 232; — to sign an order for the preferment of an indictment in R. v. Arnold, 8 E. & B. 550.] On a motion against a magistrate under this section, the general rule is, that the court will order the unsuccessful partj^ to pay costs, and will not, on the motion for costs, enter into the merits of the original application, R. \. Ingham, 17 Q. B. 884. Sect. 6 makes the confirmation of a conviction or order on appeal a pro- tection to a justice who issues a warrant upon it either befoi'e or after such contirraation. Sect. 7 empowers a judge to set aside the proceedings in any action brought against a justice contrary to the provisions of the act : and every action against justices must be brought within six months after the act complained of (sect. 8), and not until after a month's notice in writing, &c. (sect. 9), [the notice must be given, although the cause falls within the first section of the act, Kirby v. Simpson, 10 Exch. 358. In cases Avithin that section the notice should show that the act charged was malicious, Taylor v. Nesjield, 3 E. & B. 724. It] may be given before the quashing of the order, the act com- plained of being the cause of action, although the action itself cannot be brought until after the quashing, HayJock v. Sparke, 1 E. <& B. 471. Sect. 10 makes the venue in the action local \_{qua're as to the effect of the Judicature Acts, 1873, 1875, which abolish generally local venues, except where otherwise provided by statute, Ord. XXXVI. Rule 1, but provide, Ord. XIX. Rule 12, that every defence of not guilty by statute shall have the same efl'ect as hei'etof ore) ] , and gives the defendant an option to plead the general issue, and under it prove the special facts, and also gives him the privilege of exemption from the jurisdiction of the county court. [See Weston v. Sneyd, 1 H. & N. 703.] By sect. 11a recovery of less than the amount tendered or paid into court gives him a verdict with the security of the sum paid into court for his costs ; and by sect. 12 the verdict is to be against the plaintifl*, or he is to be non- suited, if he has not complied with the above-mentioned pi'eliminaries. Sect. 13 provides that the plaintifl' shall not in any case recover more than two pence damages Avhere it appears that he was guilty of the oflence of which he was convicted, or liable by law to pay the sum ordered to be paid, and that he has undergone no greater punishment than that assigned by law to the oflence of which he was convicted, or for non-payment of the money ordered to be paid. By sect. 14 tlie plaintifl' is to have costs, as befoi'e the act, and where the act complained of is stated to have been done maliciously, &c., they are to be taxed as between attorney and client, and in all cases wliere there is judg- ment against him he is to pay costs as between attorney and client. 9;Hj (JlCKl'l'S V. 1)L1M)KN KT Al.los. Siicli is a snmmar)' of tlio provisions of this importaiii sianito. Tlie conviction [or oriierj may i)o drawn np at any tinie before it is returned to tlie quarter sessions [see tlie 11 & 12 Vict. c. 4:5, s. 14,] so tliat th(>u:;li it may l)c informal at llrst, the mari:i)i;N i:i' \i.n»s. Siiinniary Jurisdiction Act, l.s.s4, ami the rules ami forms now in force will be found in tiie Weekly Notes of Oct. 0, IHHC. By rule M it is jirovided that the forms in the schedule to the rules or forms to tlie like ellV-ct nniy be used with such variations as the circumstances may require. Hy rule :{'_', the forms in the schedule to 11 & 12 Vict. c. 43, are annulled. It will be seen that — In convictions (part I., forms 11 — 17) neither (1) the infurmatinn — (2) the stnnmons — (3) the appearance or non-appearance of the defendant are to be mentioned — and (4) the evidence is not to be set forth. The requisites of a conviction, which fannerhj must have i)een recorded in it, arc : — ] 1. The information, which [has been usuallj' stated t(» be] al)solutely essen- tial in all cases, cxceptiuii wlierc the justice is empowered to convict on view (see 1 Wm. Saund. 2(12, note, Jones v. Oiren, 2 I). & U. fiOO). It [has been reiijarded as] (he foundation of his jurisdiction over the case, without which his procecdinj; would be void (see R. v. Jiolton, 1 Q. B. (!G), [lilake v. Beech, 1 Ex. I). 320, 45 L. J. M. C. Ill; and though souje of the dicta in liefj. v. Ihtfjhcs, 4 Q. B. D. G14, 48 L. J. M. C. 1.">1, appear somewhat inconsistent with this view, the decision seems merely to nesfttive the necessity of any formal information where not required by statute]. The same principle applies to other limited jurisdictions created by statute; thus, a presentment is the fountlation of the jurisdiction of commissioners of sewers, and if there be not one their rate is void, Winr/ate v. Waitf, (> M. & W. 73i>; and see the judfiuieut in Doe v. Bristol and Kxeter Rail Co., ("• M. & W. 320; R. v. Cruke, Cowp. 2(1; and Christie v. Unicin, 11 A. & K. 373, where the same principle was held to apply even to the exercise of an autliority conferretl by statute on the chancellor; see also R. v. (iitardiatis of Hartley Union, 1 B. B. r>77; [Lee v. Rowley, 8 E. & B. 857; and In Re Hopper v. Warhtirton, 32 L. J. Q. H. 104.] The information need not have been in irridnf/ or even on oath, unless ex- pressly directeil l)v an act of parliament to be so, Bastm v. Careir, 3 B. & C. 649; IRerf. v. Hityhrs, 4 Q. B. D. 014, 48 L. J. M. C. 151]. By the 11 & 12 Vict. c. 43, s. 10, whenever the justice issues a warrant in the first instance without summons, the information must be upon oath. [Objections cannot now usually be taken to the information for defects in substance, or form, or for variances between it and the evidence, 11 & 12 Vict. c. 43, ss. 1 and 9; still,] care sliould be taken in framing it, since it [has been usually considered to be] the foundation of the magistrate's juris- diction. Care V. ^founta^n, 1 M. & Gr. 257; Carpenter v. .\fason, 12 A. & E. 629. When there is no act giving a particular form, it is sudicient if the juris- diction is substantially made apparent in the documents, or can be inferred therefrom, Taylor v. Clemson, per Tindal, L. C J., 2 Q. B. 1032; [see Ex parte Baker, 7 E. & B. 697]. Before the 11 & 12 Vict. c. 43 [ss. 1 & 9, the evidence would not] supply omissions in tlie information, for the office of the evidence is to prove, not to supply a legal charge, R. v. Wheatmain, Dougl. 232; Wiles v. Cooper, 3 A. & E. 528. It should state — the day on which it is exhibited ; and the statement of a day inconsistent with, or insufficient to warrant the conviction, formerly vitiated it, R. v. Kent, 2 Lord Kaym. 1546. It should state — the place of exhibiting, that the magistrate may aiii)ear to have been acting within his jurisdiction, see R. v. Kite, 1 B. & C. 101 ; and R. V. Martin, 2 Q. B. 1037; Re Peerless, 1 Q. B. 143. The name of the informer should, it seems, be set forth, that the defendant CKEPPS Y. DUKDEN ET ALIOS. 993 maj- know who is accusing liim; in some eases, at all events, it is necessary, see R. V. Stone, 2 Lord Ra.vm. 1545. It should state — the name and st^le of the convicting justice or justices, and show that he is acting within his jurisdiction. See Kite's Case, 1 B. & C. 101; R. V. Martin, 2 Q. B. 103G ; Re Peerless, 1 Q. B. 143; R. v. Inhabitants of St. George, Bloomshunj, 4 E. & B. 520. Thus it [was before the statute above mentioned held not to] be enough to state that he is justice in the county, without stating that he is of or for the county, R. v. Bobbyn, Salk. 473 ; — the name of the offender or offenders, R. v. Harrison, 8 T. R. 508 ; the time of the offence, so that the information may appear to have been laid in due time, R. v. PuUen, Salk. 369 ; R. v. Chandler, Salk. 378 ; R. v. Crisp, 7 East, 389; — the place, that it may appear to have been within the justice's jurisdiction, Kite's Case, 1 B. & C. 101, et notam ; — lastly, the charge should be set forth with proper and sufficient certaint}% and contain every ingredient necessary to constitute the offence, leaving nothing to mere inference or in- tendment. " A conviction," to use the words of Lord Holt, " must be certain, and not taken by collection," R. \. Fuller, 1 Lord Raym. 509 ; R. v. Trelaivneij, 1 T. R. 222. Genei'ally speaking, it is sufficient to state the offence in the words of the act creating it ; see R. v. Speed, 1 Lord Raym. 583 ; Davis v. Nest, 6 C. & P. 167; Ex parte Pain, 5 B. & C. 251; [/« re Perham, 5 H. & N. 30; ]VaIsby v. Anley, 30 L. J. M. C. 121 ; and by 42 & 43 Vict. c. 49, s. 39, sub-s. 1, it is ex- pressly enacted with i-eference to proceedings before courts of summary jux'isdiction that " The description of any offence in the ■\\t)rds of the act, or an}' order, bye-law, regulation, or other document creating the offence, or, in similar words, shall be sufficient in law."] Cases, however, may occur in which the words ol the statute are so general as to render some more cer- tainty in the conviction necessary; per Denison, J., R.. v. Jarvis, 1 Burr. 154; Ex parte Hawkins, 2 B. & C 31 ; R. v. Perrott, 3 M. & C. 379. [Previously to the passing of 11 & 12 Vict. c. 43, it was held that] excep- tions in the statute creating the offence should be negatived where they appear[ed] in the clause creating the offence, R. v. Clarke, 1 Cowp. 35; R. v. Jukes, 8 T. R. 542 ; though it [■\\as] otherwise when they occur[red] by way of proviso in subsequent clauses or statutes, Cathcart v. Hardj, 2 M. & S. 534; Spiers v. Parker, 1 T. R. 141 ; R. v. Hall, 1 T. R. 320. The 11 & 12 Vict. c. 43, s. 14, enacts, that whenever in cases of summary convictions the information or complaint negatives any exception, proviso, or condition, it shall not be necessary for the complainant to prove the negative, but the defendant may prove the affirmative in his defence. [See Tennant v. Cumberland, 1 E. & E. 401; Davis v. Scrace, L. R. 4 C. P. 172; 38 L. J. M. C. 79; Morgan v. Hedger, L. R. 5 C. P. 485; and by 42 & 43 Vict. c. 49, s. 39, sub-s. 2, it is further provided that in proceedings before courts of summary jurisdiction, " any exception, exemi^tion, proviso, excuse, or qualification, whether it does or does not accompany in the same section the description of the offence in the act, order, bye-law, regulation, or other document creating the offence, may be proved by the defendant, but need not be specified or negatived in the information or complaint, and, if so specified or negatived, no proof in relation to the matter so specified or negatived shall be required on the part of the informant or complainant."] There are many cases where technical words, that would be necessary in an indictment for the same oflence, are unnecessary in a conviction ; see R. v. Chandler, 1 Lord Raym. 581 ; R. v. Marsh, 2 B. & C. 717. 994 CREPPS V. DUKDEN ET ALl<»s. Although the information must, in order to give tlio magistrate jurisdic- tion, state an offence of wliicli lie has a right to taivc cognisance, it need not state evidence sudicient to support such a cliarge, for it is tlie chariji' wliich gives the jurisdiction, Cave v. Mountain, 1 M. & G. 2(51; li. v. Bolton, 1 Q. B. OG. 2. Tliat tiic defendant was summoned or l)rouglit up by warrant ; for it would be contrary to natural justice to convict witliout giving liini an oppor- tunity of being lieard. Painter v. Liverpool Gas Co., 3 A. & E. 4;5.'} ; and see li. V. Totness, 7 Q. B. 690; \_R. v. Liuin)i:N kt alios. The rule with regard to a certiorari is tlie very reverse. It always lies unless expresslij taken away, R. v. Abbot, Dougl. 543; and it requires very strong words to do so ; for even where a statute gave an appeal to the ses- sions, and directed that it should be finally determined there, and no otlier court should intermeddle with the causes of appeal, it was held that a ccrtio- rari lay after the appeal, R. v. Moreley, 1 W. Bl. 231 ; R. v. Jukis, 8 T. K. 542; see R. v. Justices of West Riding, Yorkshire, 1 A. & E. 575; where it was taken away. A', v. Fell, 1 B. & Ad. 380; A*, v. Justices of Lancashire, 11 A. & K. 144, where an order in pursuance of a statute leaving the certiorari, but made by a town council empowered by 5 & (I W . 4, c. 7(i, wiiich takes it away, was held removable by certiorari. The reason of this is, that it is an ex- tremely beneficial writ, being the medium througii which tlie Court of Queen's Bench exercises its corrective jurisdiction over the summary proceedings of inferior courts. [A section in an Act of Parliament taking away the certio- rari does not apply where there has been an absence of jurisdiction. Ex parte Bradlaugh, 3 Q. B. D. 509. Where it is expressly taken away ii has l)een decided that it cannot issue even to bring up to (juash an oriler of justices in (piarter sessi(ms condi- tionally allirming a conviction subject to a case for the opinion of the court. Reg. V. Chanlrell, L. K. 10 Q. B. 087, 44 L. J. Q. B. 1(;7. Now, however, a certiorari is not in such case re*iuired, 42 & 43 Vict. c. 4i>, s. 40.] Even where it is taken away in express tenns, they do not include the crown unless named, A', v. Davies, 5 T. II. G26; R. v. Allen, 15 East, 333; R. V. BouUbee, 4 A. & E. 498. Nay, it is said that the attorney-general, on behalf of the crown, might in such case obtain the writ for a defendant; see 1 East, 303, note, and the authorities there cited. A certiorari is a writ, issuing out of the Chancery or Queen's Bench [Divi- sion of the High Court of Justice], conunanding the judges or oMlcers of an inferior court to certify and return the record of a matter before them. [See Walsall V. L.d: X. ]V. A'., 4 App. Cas., per Earl Cairns, C, at p. 39.] It is used for a great variety of i)urposes; but we are at present looking only at Its applicability to the case of a conviction. No writ of error lies upon a conviction ; so that a certiorari is the only mode of bringing it into the Queen's Bench [Division] in order to reverse it. [See per Bramwell, L. J., in Reg. v. Ocer.' [Division], excrcis'n}? its appellate power over ft con- viction removed into it by m-tinrnri, will not allow the merits of tlie case to be asjain litififated ui)on ullidavit; for the justices are the proper persons to determine upon those. 11. v. liultun, 1 Q. B. {>(); li. v. Jitstircit of liurkiiuj- luunshirr, 3 Q. H. HOO : [And so where the justices in tjuartcr sessions quashed a maLcistrate's conviction on the ^rouiul that certain words of the statute on wliicli it was founded were omitted in it, the Queen's IJencli Divis- ion, thoui^li holding their decision to be erroneous, declined to interfere by mamhuniis, Jit'tj. v. Jii.stires of MiddlcsfX, 2 Q. B. D. 510, 4(1 L. J. Q. 15. 74(;. Wliere, however, by consent of tlie parties, the (|uarter sessions of a recorder had stated a special case, tlie court would decide on certiorari whether the facts stated in the case amount to the ott'ence charged, even though the certiorari were taken away. A', v. Dickinson, 7 E. & B. HSl ; though see AV;/. V. ChitnlreU, L. U. 10 Q. B. 587, 44 L. J. Q. B. MM. And now, by s. 40 of the Summary Jurisdiction A(!t, 1871) (42 & 4;i Vict. c. 4t)), it is provided that "a writ of rcrlinrari or other writ shall not be re(|uired for the removal of any conviction, order, or other determination, in relation to which a special case is stated by a court of general ortjuarter sessions for obtaining the jmlgment or determination of a superior court."] But a question has occasionally arisen whether, in cjises where the justices have proceeded icit/iout jurisdiction, and have nevertheless stated upon the face of the conviction matter showing a jurisdiction, it be competent to the defendant to prove the want of jurisdiction by allldavit. It certaiidy appears desirable that the court should have the power to entertain the t|Uestion of jurisdiction. Some cases miglit easily be suggested, in which not only great private i)ut great public inconvenience might arise from leaving an invalid order or conviction unreversed, and great injustice might l)e caused l)y allow- ing justices out of or in sessions, by nuiking their onler or conviction good upon the face of it, to give themselves a jurisdiction over matters not en- trusted to them by law. Whether a mandamus would lie in such a case to oblige them to make a correct statement, is a question which the Queen's Bench [Division] would, at least in the nuijority of instances, probably answer in the negative; for though it is true that in some cases, where there has been a clear omission of some material ingredient in a conviction, the court has by 7nandamns ordered it to be supplied; as in De Rix, 4 D. & R. ;}r)2 ; 11. v. Mnrsh, 4 D. & K. 2r,0; R. V. Warneford, 5 D. & U. 489; A', v. Allen, 5 I). & B. 4!»0; yet this lias been done after the order or conviction had been returned upon a certiorari ; and it either clearly appeared, or was shown by affidavit, to the court, that the whole or some material portions of the evidence had been omitted ; (see the observations of the court on these cases in A*, v. Wilson, 1 A. & E. G27;) and the mandamus went not to compel the court below to insert a particular thinfj, or raise a particular question, upon their return, but merely to oblige them to set out an integral part of the case, which must have existed, and had been omitted. I saj' must have existed, because in H. v. Wilson, where evidence might or might not have been acted on, the court would not send the manda- mus. And there are cases in which the court has refused to interfere by mandamus to compel the courts below to raise a particular question; for instance, R. v. Hewes, 3 A. & E. 725, the jury had returned a verdict, guilty h>j mischance; the chairman of the sessions told them they must find a general verdict ; and they found a verdict of guilty, and recommended to mercy on the ground that CREPPS V. BURDEN ET ALIOS. 1001 the act was not done with a malicious intent. The motion was for a man- dmmis to set the clerk of the peace's mimite right according to the facts, in order that a writ of error might be sued out. The rule was discharged. Mr. Justice Patteson said, " The case of a mandamus to enter continuances and hear is not like this. There the justices are ordered merely to hear an appeal, and to enter continuances l)ecause those are necessary in order to enable them to hear; so, in tlie present case, if it were necessary for the defendant to have a record made up, and the officer refused to do it, the party having a right to avail himself of the record might apply for a mandamus, as in R. v. Justices of Middlesex, 5 B. & Ad. 1113. I have always understood that this court might send a mandamus to an inferior court to do its duty in general terms, but not to do a particidar thing , as to make an alteration here or there in the clerk of the peace's minutes ; " see /?. v. Justices of ^fiddlesex, 9 A. & E. 546, judgment of Littledale and Coleridge, JJ., and per curiayn in R. v. Lords of the Treasury, 10 A. & E. 179; ?i. v. Lords of the Treasury, 10 A. & E. 374, and per Lord Denham in R. v. Eastern Counties Railway, 10 A. & E. 547 ; R. v. Justices of Buckinghamshire, 3 Q. B. 800; [R. v. Justices of Bristol, 18 Jur. 426, note «; R. v. Dayman, 7 E. & B. 672]. Supposing that the court below cannot be compelled by mandamus to show the defect of jurisdiction upon the record, the next question is, will the court above allow evidence of such defect of jurisdiction to be 'aid before it by way of affidavit, on the record being brought before it by a writ of certiorari ? In R. V. St. James's, Westminster, 2 A. & E. 241, it was remarked by Mr. Jus- tice Taunton (a judge whose obiter dicta are always worthy of the greatest attention) that this has been constantly done. In R. v. Inhabitants of Great Marlow, 2 East, 244, an appointment of overseers, good on the face of it, was allowed to be questioned by affidavit on the ground of a defect of jurisdic- tion, and was finally quashed. The court in that case had taken time to con- sider as to the practice with regard to receiving the affidavit ; and Mr. Justice Lawrence mentioned several similar cases in which that course had been pur- sued. A similar course seems to have been pursued with an order of the quarter sessions m R. v. Justices of the West Riding of Yorkshire, 5 T. R. 629. In the case of R. v. Justices of Cheshire, 1 P. & D. 93, 8 A. &. E. 400, tlie ques- tion was a good deal discussed; and it seems to have been admitted that affidavits might be looked at for the purpose of showing a defect of jurisdic- tion. " It cannot be disputed," said Mr. Justice Coleridge in that case, " that there are many cases in which affidavits may be looked at in order to ascer- tain whether there was jurisdiction or not; for suppose an order made, which was good on the face of it, but which was not made by a magistrate, it is clear that this fact may be shown to the court." Accord. R. v. Sheffield and Manchester Rail. Co. [11 A. & E. 194] ; and it seems to be settled by the later cases that a defect of jurisdiction may be shown by affidavit, though the pro- ceeding is so drawn up as to appear valid on the face of it. [See the judg- ments in] R. V. Bolton, 1 Q. B. 66; [The Whitbury, <&c.. Union Case, 4 E. & B. 314 ; Tn re Penny, 7 E. & B. 660, where on certiorari an inquisition under the Lands Clauses Act, 1845, was quashed upon affidavits showing that the jury in assessing the damages took into account an item which was not a subject for compensation within the act (Mortimer v. S. Wales Rail. Co., E. & E. 375) ; In re Hopkins, E. B. & E. 100 ; 7?. v. The Recorder of Cambridge, 8 E. & B. 637 ; R. V. Metropolitan Rail. Co., 32 L. J. Q. B. 367; Read v. Victoria Station and Pimlico Rail. Co., 32 L. J. Exch. 167] ; and R. v. Cheltenham Paving Commis- 1002 CREITS V. DUUDKN KT ALIOS. siunern, 1 Q. B. 407, where the defect consisted in the presence on tlie bench of interested parties as justices. On tlie otlier liand, notliinj^ can be more common than to llnd it laid d(nvn tliat a conviction or order is conclusive of the matter .slated in it for tiie pur- pose of showing a jurisdiction. [See the judgment of Mr. Justice I'attesoa III re Clarke, 2 Q. B. G34; see also Colonial Baiik of Australasia v. Willan, L. R. 5 P. C. 417; 43 L. J. P. C. 39. Possibly the distinction may be between cases in which the conviction or order is made by persons who arc admitted to constitute a legal court, and who have stated facts which, on information being laid, or a case coming before them, would be matter to be proved, and adjudicated upon h>j them, and cases in winch the objection is, that they are not a court at all, because not in fact magistrates, or i)ecause interested, because they sat out of the limit of their jurisdiction, or for some other reason, striking at their existence as a court, so that the objection is not that the ttatement of a court is erroneous, but that the source of the statement is not a court at all. See the judgment of Bramwell, B., In re Baker, 2 H. & N. 219. But it may well be doubted whether this distinction affords a sudicient test. It should seem that the Queen's Bench Division will on certiorari entertain allidavits where the conviction is good on the face of it, — not only to show that preliminary matters recjuired to give the justice jurisdiction to enter upon an iM(iulry into the merits of the case, were wanting, see A', v. Bolton, 1 Q. B. OU; A'. V. Badijer, C E. & B. 13; A", v. Wood, 5 E. & B. 49; A', v. Justices of Totness, 2 L. M. & P. 230; the judgments in B. v. St. Olave's District Board, 8 E. & B. 529; and In re Smith, 3 II. & N. 227 — or that circumstances appeared in the course of the inquiry which ousted his juris- diction, R. V. Nunnetey, E. B. & E. 852 ; R. v. Cridland, 7 E. & B. 352 ; R. v. Backhouse, 30 L. J. M. C. 118; R. v. Stimpson, 4 B. & S. 301 — but also that there was no eciclence to prove some fact, the existence of which was essen- tial to establish the offence charged. It must be remembered tliat before 11 & 12 Vict. c. 4;!, the evidence must have been set forth in the conviction, and if there was none to support some material pai't of the information, the conviction would have been (juashed, R. V. Smith, 8 T. K. 588. The alteration by the statute of the forms of conviction, which dispenses with the necessity of setting forth the evidence, plainly does not narrow the jurisdiction of the Court of Queen's Bench to quash writs void for matter of substance ; and in order to exercise this jurisdiction in respect of convictions bad for want of evidence, but drawn up according to the general form given by the statute, it is necessary that the court should receive affidavits. See the judgments in Bnilnfs Case, 3 E. & B. 607, where affidavits were admitted for the purpose of impeaching a conviction under the Masters' and Servants' Act, 4 Geo. 4, c. 34, by showing that tliere was no evidence before the justices from Avhich the relation of master and servant could be inferred. " Affidavits," said Pollock, C. B., In re Baker, 2 H. & N. 219, 223, " may be used for the purpose of showing that there was no evidence at all. l)nt if there is conflicting evidence, it is for the justice to decide upon it." (But see Stanhope v. Thorsby, L. R. 1 C. P. 423, 35 L. J. M. C. 182.) In In re Thompson, 6 H. & N. 193, 30 L. J. M. C. 19 S. C, where the pris- oner had been charged with unlawfully assaulting and abusing Susannah H., and it was plain upon the evidence that if any offence, a rape or assault with intent to ravish had been committed, yet the justices convicted the prisoner CREPPS V. DURDEX ET ALIOS. _ lOOS of a common assault, it appears to have been the opinion of I'ollock, C. B., and Wilde, B., that the conviction was bad, because the justices could not have believed that only a common assault had been committed. But the court was divided, and Williamson v. Button, 3 B. & S. 821, may be consid- ered a decision contrary to that opinion. As a general rule the jurisdiction of justices to convict summarily ceases as soon as a claim of title in himself, CornweU v. Sanders, 3 B. & S. 206 (though only colourable, provided the right claimed be one known to the law), is bona fide made by the party against whom the proceeding is insti- tuted, R. V. Cridland, 7 E. & B. 853; Hudson v. McRae, 4 B. & S. 585; where the claim was made bona, fide, but to a right impossible in law, and a convic- tion was upheld, followed in Fotdger v. Steadmnn, L. R. 8 Q. B. 65, (disap- proving of Jones V. Taylor, 1 E. & E. 20), and also in Ilargreaves v. Diddams, L. R. 10 Q. B. 582. See also Leatt v. Vine, 30 L. J. M. C. 207; CornweU v. Sanders, 3 B. & S. 206, and Wattins v. Major, L. R. 10 C P. 662, where a distinction is drawn between conviction under the statutes for the protection of game and the orcliiu;ry case of a conviction for which it is said to be necessary to prove a inens rea. The question whether there be such a bo7i^ fide claim of right is a collateral question for the justices to decide, but the superior court on affidavit will review their decision. See R. v. Stimp^on, i B. & S. 301, where it was held that there was not, Paley v. Birch,.lQ L. T. N. S. 410, where it was held that there teas, evidence to justify the infei'ior court in tinding that the claim was not bonti fide set up. See also Williams v. Adams, 2 B. & S. 312; Legge v. Pardoe, 30 L. J. M. C. 108; Reg. v. Sandford, 30 L. T. N. S. 601 ; Lovesy v. Stallard, Id. 792. This rule as to the cesser of the jurisdiction to convict summarily on a bona fide claim of right being set up is founded not on statute but on general principles of law. See per Blackburn, J., in CornweU v. Sanders, ubi sup., per Crompton, J., in P>.eg. v. Stimpson, ubi stip. There are other similar cases in which restrictions are placed on the justices' jurisdiction by statute. In R. V. Nunneley, E. B. & E. 852, an order, made by justices for payment of a church-rate, under 53 Geo. 3, c. 127, which provides that if the validity of the rate be disputed, and the party disputing give notice to the justices, they are to forbear giving judgment thereon, was quashed on affidavits showing that a reasonable objection had been made to the validity of the rate, notwithstanding which the justices proceeded with the case, holding, ground- lessly, that the objection was not made bona fide. Erie, J., said : " Without coming to the much disputed point whether a fact Avhich is in doubt is one which affects the jurisdiction in the first instance, or one upon which magis- trates are to judge, I think this case is clear enough. The jurisdiction of the justices is to decide whether the rate is made and demanded. But then there Is a collateral point on which the jurisdiction depends, that is, whether the validity of the rate is disputed. If it is, the justices are to hold their hands. That is collateral to the merits ; and a matter on which the jurisdiction depends. And as laid down in the judgment of Bunbury v. Fuller, 9 Exch. 140, ' it is a general rule that no court of limited jurisdiction can give itself jurisdiction by a wrong decision on a point collateral to the merits of the case upon which the limit to its jurisdiction depends.' Then to take the simplest case : Suppose a judge with jurisdiction limited to a particular hundred, and a matter is brought before him as having arisen within it, but the party charged contends that it arose in another hundred, this is clearly a 1004 CRErPS V. DURDEN ET ALIOS. colhiii-ral matter indcpentlent of the merits; on its being presented, tlie jiuljie must, not immediately forbear to proceed, but must inf|uire into its trutli or falsoliood, and for tlie time decide it. and either proceed or not on tlie prin- cipal subject-matter according as lie llnds on that point; but this decision must be open to question, and if he has improperly cither foreborne or proceeded on the main question in consequence of an error, on this the Court of Queen's Bench will issue its mnndamus or prohibition to correct his mistake." See further Ex parte Mannerimj , 31 L. J. M. C. l.");5. Where a statute, 24 & 25 Vict. c. 97, s. 52, enacted that nothing therein contained should extend to any case where the party acted under a fair and reasonable supposition that he had a right to do the act complained of " and the justices found that the appellant did not act under a fair and reasonable supposition and convicted him, the court upheld the conviction, holding that the above express provision overrode the proviso usually implied as to sum- mary convictions, that a bonO. fide claina of right is sullicient to oust the jurisdiction of the justices." White v. Feast, L. R. 7 Q. B. 353. See this case, distinguished in Denny v. Thmiites, 2 Ex. D. 21, 4G L. J. Ex. 588, 4G L. J. M. C. 141. By 24 & 25 Vict. c. 100, s. 4G, it is provided that justices " shall not hear and determine any case of assault in which any question shall arise as to the title to land." Under this section it was held that justices are prohibited where title is claimed from going into the question of excess of violence and convicting sununarily upon that. Retj. v. Pearson, L. R. 5 Q. B. 237, 3'J L. J. M. C. 76.] Assuming that a defect of jurisdiction may in these cases be shown by affidavit, every case, or almost c^'cry case of a defect of jurisdiction in the convicting magistrate or magistrates would be reviewable hy nrtiornri ; for though it is now usual for the statute creating the ottence to contain a clause taking away the certiorari, yet such clauses do not, generally speaking, apply to cases where there was no jurisdiction to convict, such cases not falling within the act of parliament at all, R. v. Justices of Somersetshire, 5 B. & C. 816 ; R. V. Justices of the West Ridin'j of Yorkshire, 5 T. R. 629 ; R. v. Inhabi- tants of Great Marlow, 2 East, 244 ; [i?. v. Wood, 5 E. & B^ 49 ; S. C. nom. R. V. Rose, 24 L. J. M. C. 130; Colonial Bank of Australasia v. Willan, L. R. 5 P. C. 417, 43 L. J. P. C. 39; Ex parte Bradlaurjh, 3 Q. 15. I). 509] ; nor do they apply to cases where the conviction has been obtained by fraud, as when a maltster had by collusion, and for the purpose of exonerating himself from penalties, under 7 & 8 Geo. 4, c. 53, procured the conviction of his servant, R. v. Gillyard, 12 Q. B. 527; \_Colonial Bank of Australasia v. Willan, ubi sup.}. But there is a distinction between cases of a tcant of jurisdiction and an irregularity in exercising it : in the former case the certiorari lies notwith- standing the private clause, in the latter it is taken away. R. v. Bristol and Exeter Rail. Co., 1 P. & D. 170, note, 11 A. & E. 202; R. v. Sheffield and Manchester Rail. Co., 11 A. & E. 194; [R. v. Justices of Waricickshire, 6 E. & B. 837; Lalor v. Bland, 8 Irish C. L. K. 115]. In the [first of these] cases, indeed, the court went to an extent which seemed likely very much to confine the applicability of the writ of certiorari; they threw out the opinion that in cases where the proceeding was merely irregular, the clause taking away the certiorari applied, and that where it was void there was no occasion for it, and that the court would not grant it. However, in the [second] case, they appear disposed to i^epudiate the application of this dilemma; at all events, in cases in which the proceeding sought to be removed is not void on the face CREPPS V. DUPvDEN ET ALIOS. 1005 of it, but is impugned by affidavit. And in E. v. Cheltenham Paving Com- missioners, 1 Q. B. 467, it was distinctly lield tliat in a case of malversation such a clause would not operate. Though it has been endeavoured to show that the Queen's Bench has a right in case of defect of jurisdiction to entertain the objection founded upon such defect on affidavit, yet it must be observed that the court is not bound to do so upon certiorari; for [except where the application is by the party grieved, Beg. v. Justices of Sttrrey, L. R. 5 Q. B. 46(5, 39 L. J. M. C. 145,] a certiorari, as has already been pointed out, is a writ not of right, but in the discretion of tlie court to grant or to refuse (but see the judgment in Sumonds V. Dimsdale, 2 Exch. 533). And cases may occur in which, though there may have been a defect of jurisdiction, still the court may conceive that the interests of justice would be rather imiieded than advanced by any summary interference on their part. In R. V. Justices of Cambridgeshire, 4 B. & Ad. 122, Mr. Justice Pattesou said, " With regaixl to the objections in point of jurisdiction, I protest against its being understood that we can on every occasion look into extrinsic matter on motions to bring up orders by certiorari." " We must be cautious," said Mr. Justice Coleridge, "not to exceed our jurisdiction; and when we find there is a court of appeal below, to which the matter brought before us on affidavit might have been carried, I think we are confined to objections appearing on the face of the order." I do not understand these observations of the learned judges as importing that there are cases of a total defect of jurisdiction which the Court of Queen's Bench has no power to entertain on affidavit, but that the leaning of the court is against doing so, except where public justice would be thereby furthered. See R. \. Justices of Denbighshire, 1 B. & Ad. 616. See R. v. South Holland Drainage Committeemen, 1 P. & D. 79; R. v. Manchester and Leeds Rail. Co., 1 P. & D. 164. And that its disinclination to interfere is strong and uniform in cases where the legislature has provided another com- petent tribunal of appeal to which the question might be carried. See R. v. Justices of Middlesex, 9 A. & E. 548, last point. In Ex,j)arte Lord Gifford, Carrow's New Sess. Cas. 490, Mr. Justice Williams refused a certiorari on the ground that if the recognisance sought to be re- moved were void, the applicant might treat it accordingly. It has not, how- ever, been usual to refuse the writ for this reason, which since the 11 &, 12 Vict. c. 44, s. 2, prohibiting actions against justices, &c., for anything done under convictions or orders made without jurisdiction until they have been quashed, would scarcely be given in answer to an application to bring up a conviction or order to have them quashed for a defect of jurisdiction. In R. V. Justices of Cambridgeshire, 3 B. & A. 187, Lord Denmau, in his judg- ment, suggested another ground on which an application upon affidavit might possibly be entertained. "I do not say," said his lordship, "that even on certiorari the court would not set aside an oi'der if manifest fraud were shown. That may be so. In R. v. Justices of Somersetshire, 5 B. & C. 816, where a certiorari was applied for to remove an appointment of overseers, on a sug- gestion of corrupt motives in the appointing magistrates, the court refused a rule, saying that the parties complaining might appeal to the sessions, or move for a criminal information. Notwithstanding that refusal, however, I do not say that if corruption were clearly made out, the court would not, upon an application like this, declare the order invalidated by the fraud." This observation of his lordship is consistent with the principle laid down by lOOG CREi'P.s V. dl'ui»i:n kt alios De Gi'fy, C. J., in the Diichpss of Kingston's Case, post, i-olnmr 2, wliiTe his lordship observed that " fraud is an extrinsic collateral act which vitiates tlje most solemn proceedinii:i»KN i;r alios. conviction, order, liPti^nninftlion, or other proceed imj {SniKfi/iite Loral Board v. Pledije, 14 Q. B. I). 730) of a fourt of snmiimry jurisdiction on tlie ^rouiul that it is erroneous in point of law, or is in exress of tlie Jurisdietlon, may apply to the court {Ex parte Curtiif, '.i Q,. li. I). 13) to state a special cusc set- tin}^ fortii tlie facts of tlie case and tlie {grounds on wliicli tlie proceeding is questioned, and if tlie court decline to state the case, may apply to the llijrh Court ()f Justice for an order re(|uiniij? the case to be stated. (2) The appli- cation shall he made and the case stated within such time antl in sucli numner as may l)e from tiuie to time directed by rules under this act, and the case shall iu' heard and determined in manner prescribed by rules of court made in pursuance of ' The Supreme Court of .Judicature Act, lH7"i,' and the acts amendini; the same; and subject as aforesaid, the act of" 20 & 21 Vict. c. 43, above stated, "shall, so far as it is applical)le, apply to any special case stated under this section, as if it were stated under that act. " Provided that nothins; in this section shall prejudice the staleiuenl of any special case under that act." By Uulc 18 of tlie Summary .lurisdiction Uules, IHSC, made in pursuauce of the above section, " An a|)plication to a court of summary jurisdiction " under that section " to state a special case sliall be made in writinj;, and a coi)y left witli the clerk of the Court, and may be made at any time within seven dear days from the date of the proceedini; to be questioned, and the case shall be stated within three calendar months after the date of the application, and after the recoi^nizance shall have been entereil into." (See the rules set out in exttnso iu the Weekly Notes, October Uth, 1«8G.)] JURISDICTION AND ATTACKING .ILDO.MHNTS COLLATKK.VLLV. While the jiule^ments of any cmtrt, whether of superior or of inferior jurisdiction, nuiy, under <'tMt;iin circumstances, be at- tacked collaterally, for want of jurisdiction on the part of the court rendering the judgment, nevertheless the judgments of superior courts stand upon a very different footing from the judgments of inferior courts in this regard. Although the judgments of courts, whether of superior or in- ferior jurisdiction, import, for most purposes, absolute verity, and are conclusive between the parties as to the points ad- .judicated, this is true sitbject to the condition that the court assuming to act had jurisdiction not only of the subject-matter of the controversy, but also of the persons of the parties. The Distinction between Courts of Superior and those of Inferior Jurisdiction. It is not easy to state any general rule by which courts of inferior may be distinguished from those of superior jurisdic- CREPPS V. DURDEN ET ALIOS. 1009 tion. The distinction is often stated to be tliat between courts of record and tliose not of record ; and the rules conform sul> stantially to this view. But the terms "inferior" and "supe- rior " are more commonly used in the cases. The terms " limited " and " general " are often used to dis- tinguish the kind of jurisdiction of certain courts. Indeed, the terms are not infrequently used interchangeably with the terms "inferior" and "superior." In this use the terms are by no means accurately applied; e.g., iis we shall see, the United States Circuit and District Courts are of limited thousrh of superior jurisdiction. The terms are also productive of confu- sion in this, that even superior courts of a general jurisdiction are, when exercising their powers for some special and limited statutory purpose, in the same, or nearly the same, position as to supporting presumptions, &c., as inferior courts. It will not be attemj)ted to formulate in this note a general rule, or to go into any full discussion regarding the distinctions. The dis- tinction which is perhaps the most obvious of all is that be- tween courts which are of record and those which are not. Cf. Turner v. Malone, 24 S. C. 398 ; Epping v. Robinson, 21 Fla. 36, and many cases. This, however, fails to meet all the cases. In Texas the distinction has been drawn as between courts the powers of which are established by the Constitution of the State, and those which owe their existence to special acts ; Williams v. Ball, 52 Tex. 603 ; Holmes v. Buckner, 67 Tex. 107 ; these courts are also courts of record. The following rule of distinction is stated in Freeman on Judgments (3d ed.), section 122 : " The next matter to be ascertained is whether the judgment was rendered by a court of general or of special jurisdiction. There is no well-defined test by which to determine in all cases whether a court belongs to the one class or to the other. But all courts invested with a general common-law jurisdiction, in law or in equity, are, when exercising such jurisdiction, properly included in the first class ; while all such courts as are erected upon such principles that their judgments must be disregarded until proceedings conferring jurisdiction are shown, belong to the second class. . . . The use of the words 'superior' and 'inferior,' or 'limited' and ' general,' however apt they may have once been, are less so at this time and place ; and their duties, in view of our system and mode of procedure, would be better performed by 1010 CKEl'l'S V. DUKDEN ET ALIOS. the terms 'courts of record,' and 'courts and tribunals not of record.' " We have retained the terms "superior" and "inferior," simply because the terms seem to be of most common use in the books and cases. Avoiding discussion of the theo- retical distinctions, the following decisions have been reached : — Beside state supreme court^s and other court^i of a similar character, when they act under general powers, the folhnving have been declared to be superior courts : — United States circuit and district courts. — It is now well settled that those courts, though of limited, are also of superior jurisdiction. See language in Turner v. Bank of North Amer- ica, 4 Dall. 8; Mason v. Tuttle, 75 Va. 105 (Limited Act). See Pearce v. Winter Iron Works, 32 Ala. 68; Chemung Canal Bank v. Judson, 4 Seld. 254 ; Kempes Lessee v. Kennedy, 5 Or. 185; Baldwin v. Hale, 17 Johns. 272; Wood r. Mann, 1 Sumn. 680; Griswold v. Sedgwick, 1 Wend. 131; Skillerns Ex'rs v. Mays Ex'rs, G Cr. 2(;7 ; iV parte Watkins, 3 Pet. 193 ; Ken- nedy V. Georgia Bank, 10 How. U. S. 58(3 ; McCormick v. SuUi- vant, 10 Wheat. 192; Wright v. Marsh, 2 Greene (la.) 94; Turrell v. Warren, 25 Minn. 9 ; Williamson's Case, 26 Pa. St. 9. But see Boisse v. Dickson, 31 La. Ann. 741 ; Morse v. Presbey, 25 N. H. 299. These latter cases mainly depend upon the fact that the court rendering the judgment was acting under special and limited acts, as, for instance, the bankrupt laws. County courts. — As a rule, it is held that the county courts in the various states, where they are courts of record, are courts of general jurisdiction ; Propst v. Meadows, 13 111. 157. The English county courts established, and their powers de- fined by special act of Parliament, are within the same rule ; Levy V. Moylan, 10 C. B. 189 ; Houlden v. Smith, 19 L. J. N. S. Q. B. 170. County courts in Florida are courts of record ; Epping V. Robinson, 21 Fla. 36. County courts of common pleas in Tennessee are courts of general jurisdiction and are courts of record ; Pope v. Harrison, 16 Lea (Tenn.) 82. See, also, Bannard v. Banuard, 119 111. 92 ; Lessee of Grignon v. Astor, 2 How. 319. The following courts have been generally held to be, in the particular states where they are held, of inferior jurisdic- tion : — CREPPS V. DUEDEN ET ALIOS. 1011 Courts of justices of the peace. — ■ See for dicta and decisions : Mudge V. Yaples, 58 Mich. 307 ; White v. Morse, 139 Mass. 162 ; People v. Jarrett, 7 111. App. 566 ; Knell v. Briscoe, 49 Md. 414; Londegan v. Hammer, 30 la. 508 at p. 512; Morton V. Crane, 39 Mich. 526. See Tyler v. Alford, 38 Me. 530; Tompkins v. Sands, 8 Wend. 462 ; Armstrong v. Campbell, 1 Brev. Pt. II. p. 259 ; McCkire v. Hill, 36 Ark. 268 ; Wise v. Withers, 3 Cr. 331 ; Clark v. Holmes, 1 Doug. (]\Iich.) 390 ; Piper V. Pearson, 2 Gray 120; Clark v. May, 2 Gray 410; Sullivan v. Jones, 2 Gray 570 ; Bigelow v. Stearns, 19 Johns. 39 ; Estopinal v. Peyroux, 37 La. Ann. 477 ; Wright v. Rouss, 18 Neb. 234 ; Little v. Moore, 1 South. 74 ; Cunningham v. Pacific Ry., 61 Mo. 33 ; Evans v. Pierce, 2 Scamm. 468 ; Par- don V. Divine, 23 111. 572 ; Anderson v. Miller, 4 Blackf. 417 ; Wood V. Wood, 78 Ky. 624 ; Clark v. Holmes, 1 Doug. 390 ; Camp V. Wood, 10 Watts 118 ; Bersh v. Schneider, 27 Mo. 101 ; Thomas v. Robinson, 3 Wend. 267. It was held in Hofheimer V. Losen, 24 Mo. App. 652, that where a judgment of a justice of the peace of Illinois was offered in a Missouri court, the law giving the justice jurisdiction must be proved. The contrary view has been taken, however, in some states, as a rule, owing to the fact that the courts were of record. In some of the cases the courts are not of record, but their judgments are viewed with the same supporting presump- tions ; Billings V. Russell, 23 Pa. St. 189; Clark v. M'Com- man, 7 W. & S. 469 ; Fox v. Hoyt, 12 Conn. p. 497 ; Wright V. Hazen, 24 Vt. 143 ; Turner v. Ireland, 11 Humph. 447 ; Stevens v. Mangum, 27 Miss. 481 ; Williams v. Ball, 52 Tex. 603; Holmes v. Buckner, 67 Tex. 107; Haylett v. Ford, 10 Watts 101. Probate courts, surrogates' courts, and orphans' courts. — These courts are commonly regarded as of inferior, or, at least, limited jurisdiction. Of. Forbes v. Battle, 13 S. & M. 133; Smith v. Rice, 11 Mass. 506 ; Rea v. M'Eachron, 13 Wend. 466 ; Atkins V. Kinnan, 20 Wend. 241 ; McKee v. McKee, 14 Pa. St. 231 ; M'Pherson v. Cunliff, 11 S. & R. 422 ; Brodess v. Thompson, 2 Harr. & Gill 120 ; People v. Corlies, 1 Sandf. 288 ; Jenks v. Howland, 3 Gray 536 ; Flinn v. Chase, 4 Den. 85 ; Culver's Appeal, 48 Conn. 165. But see, semhle contra Inco v. Com- mercial Bank, 70 Cal. 339 ; Key v. Vaughan, 15 Ala. 497. Con- sult Canfield v. Sullivan, 85 N. Y. 153. But see Hess v. Cole, 1U12 ci:ki'1*.s v. i>ui:ui:n kt alios. 3 Zab. (Ltuv) 110; Miittt!r of Flalbush AsumiL-, 1 Barb. 286; Anderson v. Miller, 7 lUack. 417; (Corliss v. Corliss, 8 Verm. 373 at p. 389; Enos v. Sniitli, 7 S. & M. 85; Grilliths Atha. v. Yertner, 5 How. 73<). In IV-nnsylvania and Alabama, orplians' courts are courts of record and would seem to stand nearly on the same basis as to presumptions, &c., as other courts of superior jurisdiction. Freeman on JudMinents (3 ed.) section 122. The probate courts in Arkansas, Minnesota, Missouri, South Carolina, and California stand upon a similar basis, as being courts of record; Dayton v. Mintzer, 22 Minn. 393; Johnson v. Beazely, 05 Mo. 250 ; McCauley v. Harvey, 49 Cal. 497. See State of Ohio v. Hinchman, 27 Pa. St. 479 ; Turner v. Malone, 24 S. Car. 398. . Courts martial. — See Dynes i'. Hoover, 20 How. (U. S.) 65. Mayors' courts in England. — M'Dauiel V. Hu^heS, 3 East 367; Westoby v. Day, 2 E. & B. 603 ; Fisher v. Lane, 3 Wils. 297. The ireneral lesult of the cases seems to be that tlie main distinction between courts of ditl'erent grades of jurisdiction depends upon the question whether the court under consideration has a general common law or e(iuity jurisdiction, or whether its pow- ers are limited and de lined by a statute creating it. It is not of importance that the general common law or equity jurisdiction is limited to particular classes of persons and circumstances, as is the case with the United States courts. Nor is it of importance that the jurisdiction is limited by the amount in controversy, as is the case with most of the county and similar courts. If the court is one possessing general com- mon law or equity powers, even thougli conferred by statute, the court will be one of general and superior jurisdiction, and its judgments will be supported by the presunqjtions attending the judgments of superior courts, and will be conclusive in the same respects. If, on the other hand, the court is one of limited or limited statutory jurisdiction, the court will be re- garded as an inferior one, and the effect of its judgments will be limited, in certain respects. As we have seen, these general conclusions are subject to man}- modifications in the different jui-isdictions. The tendency of modern decisions seems to be toward doing away with the distinctions pointed out, but, for the present the distinctions seem to be too well grounded in the cases to be successfully attacked. CREPPS V. DUKDEN ET ALIOS. 1013 II. Attaching Judgments of Courts of Superior Jurisdiction collaterally. (cC) Presumptions as to records of superior courts, where the courts act -within their ordinary limits of jurisdiction. — The rec- ords of superior courts are always supported by the presump- tion that whatever was done by them in the course of the exercise of their powers, was rightly done. Consequently the rule is now Avell settled that where a judgment or decree of a court of superior jurisdiction is brought up collaterally in other proceedings, it will be, prima facie, sustained by the pre- sumption of ofune rita acta. This is true even where the record does not affirmatively show that the court obtained jurisdiction of the parties or of the subject-matter, where the court acts under general powers ; Ferguson v. Crawford, 86 N. Y. 609 ; Pennington v. Gibson, 16 How. 65; Peacock v. Bell, 1 Saun- ders 73 ; Turrell v. Warren, 25 Minn. 9 ; Venable v. McDonald, 4 Dana 336 ; Wright v. Watson, 11 Humph. 529 ; Hall v. Law, 2 W. & S. 135 ; Bridgeport v. Blinn, 43 Conn. 274 ; Board of Commrs. v. Markle, 46 Ind. 96 ; Dwiggins v. Cook, 71 Ind. 579; Clark V. Sawyer, 48 Cal. 133 ; Folger v. Columbian Ins. Co., 99 Mass. 267 (273) ; Lockwood v. State, 1 Carter 161 ; Galpin v. Page, 18 Wall. 350 ; Yates v. Lansing, 5 Johns. 282 ; Chemung Bank v. Judson, 4 Seld. 254; Hart v. Seixas, 21 Ward 40; Wright V. Douglas, 10 Barb. 97 , Tallman v. Ely, 6 Wis. 244 ; Huntington v. Charlotte, 15 Vt. 46; Wright v. Marsh, 2 Greene 94. "It is undoubtedly true that a superior court of general jurisdiction, proceeding within the general scope of its powers, is presumed to act rightly. All intendments of law in such cases are in favor of its acts. It is presumed to have jurisdic- tion to give the judgments it renders until the contrary ap- pears. And this j)resumption embraces jurisdiction not only of the cause or subject-matter of the action in which the judg- ment is given, but of the parties also." Field J. in Galpin v. Page, supra, at p. 365. Where, how- ever, the record of a superior court affirmatively, and on its face shows that there was a want of jurisdiction, the judgment may be attacked collaterally, even in the jurisdiction where it was 1014 CKEIM'S V. DIKIMON KT ALIOS. rendered, and this where the party relying upon the judgment pleads it, and the adverse party relies upon a plea amounting to mil tlel record; Wright v. Boynton, 37 N. H. 9; Judkins v. Union Mutual Ins. Co., 37 N. H. 470 ; Thurber v. Blackburne, 1 N. H. 242; Hall v. Williams, 6 Pick. 232 (247); Smith v. Smith, 17 111. 482. See Holt v. Alloway, 2 Blac-kf. (Ind.) 108; Welch V. Sykes, 3 Gilm. 197 ; Reed v. Wright, 2 Greene (la.) 15. In Buchanan v. Port, 5 Ind. 204 and Davis v. Lane, 2 Ind. 548, it was held that a plea amounting to an attack upon the record of the former judgment was not effectual. (ft) Affirmative finding of jurisdictional facts in the judgment, decree or findings of a superior court . — (1) "Where the judgment questioned collaterally is a domestic one. — It is now well settled that where a superior court of the dt)mestic jurisdiction alhrmatively passes upon the jurisdictional facts, and this fact is shown by its record, such a finding cannot be collaterally questioned. This is often spoken of as an instance of tlie operation of a conclusive presumption. It is conceived that this is not an accurate statement of the theory of law. It does not belong to the presumptions at all, but is simply and purely a positive rule of law. A presumption is a rule of evidence, — an intend- ment of law which, in certain circumstances, excuses a party from producing evidence. The rule here is simply a branch of the general rule that where a superior court passes upon any fact within the general scope of its powers, such action is bind- ing upon parties to the action and those claiming under them, and becomes res ailjiidicata from thenceforward. Its action is subject to review only upon appeal or proceeding in error, or, in certain instances, in equity actions to set aside the judgment ; Gi-anger v. Clark, 22 Me. 128 ; Peck v. Woodbridge, 3 Day 30 ; Sims V. Slackum, 3 Cranch 300 ; Cook v. Darling, 18 Pick. 393 ; Richards v. Skiff, 8 Ohio St. 586 ; Grignon's Lessee v. Astor, 2 How. 319 ; McCauley v. Fulton, 44 Cal. 356 ; Pritch- ard V. Madren, 24 Kas. 486 ; Safferans v. Terry, 12 S. & ^NI. 690; Barnett v. Wolf, 70 111. 76; Searle v. Galbraith, 73 111. 269 ; Case of Sheriff of Middlesex, 11 Ad. & El. 273 ; State v. Tipton, 1 Black 166 ; State v. Woodfin, 5 Ired. 199 ; Anderson V. Wilson, 100 Ind. 402 ; White v. Crow, 17 Fed. R. 98 ; Mack V. Ins. Co., 4 Hughes C. C. 61 ; Hunter v. Stonebruner, 92 111. CREPPS V. BURDEN ET ALIOS. 1015 75, Li re Fernandes, H. & N. 717; Burdett v. Abbott, 14 East 1, semhle accord. Cooper v. Sunderland, 3 Clarke 114 ; People V. Kelly, 24 N. Y. 74 ; Commonwealth v. Newton, 1 Grant 453. The return by an officer of proper service, when made a part of the judgment roll, will be conclusive ; Brown v. Turner, 11 Ala. 752 ; Lightsey v, Harris, 20 Ala. 409. In Callen v. Ellison, 13 Ohio St. 446, a record of a judgment was produced in a collateral proceeding. The record showed that certain defend- ants had confessed judgment by their attorney. It was sought to be shown that the power of attorney on file did not purport to be signed by some of the defendants. It was held that, in a domestic proceeding such evidence could not be received to impeach the record collaterally. Cf. Wetherill v. Stillman, 65 Pa. St. 105 ; Tant v. Wigfall, 65 La. 412; Lapham v. Briggs, 27 Vt. 26 ; Pritchett v. Clark, 5 Harr. 63 ; Latterett v. Cook, 1 Clarke (Iowa) 1 ; Westcott v. Brown, 13 Ind. 83 ; Rocco v. Hackett, 3 Bosw. 579. But see Shumway v. Stillman, 6 Wend. 442 (452) ; Black v. Black, 4 Bradf. 174 ; Bissell v. Wheelock, 11 Cush. 277. The general rule was affirmed in Walbridge v. Hall, 3 Vt. 114 ; Burt v. Delano, 4 Cliff. 611 ; Dunham v. Vil- fong, 69 Mo. 355 ; Turrell v. Warren, 25 Minn. 9. (2) Where the judgment sought to be questioned collaterally is a foreign one, or that of a superior court of another state. — The judgments of the courts of the different states, when brought forward in states other than those in which they are rendered are not, in strictness, foreign judgments in the sense that judgments rendered by the tribunals of other countries are foreign. Section 1 of Article 4 of the Constitution of the United States, declares that " Full faith and credit shall be given in each state to the public acts, records, and judicial proceedings of every other state," &c. Nevertheless, the courts in many states have held that this did not prevent the courts of other states, when a judgment even of a superior court of a sister state, was set up as a basis of rights or claims, from inquiring, in certain cases, into the jurisdiction of the court which rendered the original judgment. It is beyond the scope of this note to go into the general subject of methods of obtaining jurisdiction, but perhaps a restricted treatment will be pertinent. The plainest form in which the question arises, is, where there is apparent on the record an attempt on the part of the tribunals of one state, 1016 cuKi'i's V. ijuudi:n i.r alios. to exercise juiisdii-tioii outside of the borders of such state — to obtain jurisdiction, say, of a non-resident person without at- tachment or personal notice, and without jurisdiction in rem of the sufficiency of the service the legishiture of a state is not the sole judge. "'' The autliority of every tribunal is necessa- rily restricted by the territorial limits of the state in which it is established. Any attempt to exercise authority beyond those limits would l)e deemed in every other form, as has been said by this court, an illegitimate assumption of power, and be resisted as mere abuse." In personal actions jurisdiction, to be of extra-territorial validity, must be by voluntary appearance, by personal service within the state, or, in a limited degree, by attachment ; Pen- noyer v. Neff, 95 U. S. 714; ITArcy v. Ketclium, 11 How. 165; St. Clair v. Cox, 106 U. S. 350; BoswcU's Lessee v. Otis, 9 How. 336 J Eliot v. McCormick, 144 Mass. 10, and many cases. In like manner, the jurisdiction obtained by attachment is valid in a personal action, only to the extent of the property subject to the control of the sovereignty wherein the attadicd goods are found. It will not furnish a basis for an action on the judg- ment in aiu)tlu'r state; Kil])urn v. Woodworth, 5 Johns. 37; Robinson r. Ward, 8 .Johns. 86; Downer v. Shaw, 22 N. H. 277; Phelps V. Holker, 1 Dallas 261; Kibbe v. Kibbe-Kirby, 11!»; Bissell V. Briggs, 9 Mass. 462. Jurisdiction of a foreign corporation cannot be obtained by service upon one of its officers, in a state where it has no place of business. A judgment so obtained is open to collateral question in another state ; Moulin v. Insurance Co., 4 Zab. 222. See M'Quen v. Middletown Man. Co., 16 Johns. 5, dictum; Bushel V. Commonwealth Ins. Co., 15 S. & R. 173 (176) ; Rid- dlebrooks v. Springfield Fire Ins. Co., 14 Conn. 301 ; Libby v. Hodgdon, 9 N. H. 394 (396) ; Peckham v. North Parish, 16 Pick. 274 (286). It has been held that, upon a suit upon the judgment of one state in the courts of another, the defendant may deny the authority of the attorney who appeared for him. (See for cases) Beltzell v. Nosier, 1 Clarke 588. In Gleason v. Dodd, 4 Mete. 333, (decision per Shaw, C. J.) in an action in Massa- chusetts upon a judgment of a superior court of Maine, it was held that, although the record recited an appearance by the iudgment debtor in the Maine suit, this might be contradicted. CREPPS Y. DUEDEN ET ALIOS. 1017 The underlying principle of this decision seems to be that while full faith and credit is to be given in one state to the judicial acts of another, this will not preclude the courts of the state where the record is produced from inquiring in every case, whether the sovereignty which assumed jurisdiction had in truth the jurisdiction which it assumed. See Carlton v. Bickford, 13 Gray 591 ; Norwood v. Cobb, 15 Tex. 500 ; Fos- ter V. Glazener, 127 Ala. 391 ; Graham v. Spencer, 14 Fed. R. 603 ; Wood v. Wood, 78 N. Y. 624 ; Cross v. Cross, 108 N. Y. 628. But see Bimeler v. Dawson, 4 Scarm. 541 ; Pringle v. Woolworth, 90 N. Y. 502. The case of Borden v. Fitch, 15 John's B. 121 sustains the same principle, viz., that a decision of a jurisdictional fact decided in favor of the jurisdiction, in the tribunal — here the legislature — of one state, is not con- clusive when the judgment is questioned in another state. United States courts of the same district, as that of the state in which the judgment of the former is relied on, are, perhaps, not foreign to the tribunal of the state within this rule. See Turrellv. Warren, 25 Minn. 9; Chemung Canal Bank v. Judson, 4 Selcl. 254. But see . Boisse v. Dickson, 31 La. Ann. 741. Where a judgment obtained in one country is sought to be made the basis of rights in another and foreign one, the juris- diction may always be made the subject of inquiry, whether the defect appears upon the face of the record or not. Bu- chanan V. Rucker, 9 East 192 ; Reynolds v. Henton, 3 C. B. 186; Cowan V. Braidwood, 1 M. & Gr. 882 ; Ferguson v. Mahon, 11 Ad. & E. 179 ; Douglas v. Forrest, 4 Bing. 686 ; Sheehey v. Professional Life Assurance Co., 3 C. B. N. S. 597 ; Bank of Australia v. Nias, 16 Q. B. 717 ; Meens v. Thellusson, 8 Exch. 638. The. presumption of regularity in the proceedings of supe- rior courts will always furnish jjrimd facie evidence of jurisdic- tion, where the contrary does not appear — this in suits in states other than those in which the judgment was recovered, as well as in the domestic tribunal ; Hatcher v. Rocheleau, 18 N. Y. 86 ; Bimeler v. Dawson, 4 Scarra. 541. See as to the judgment of United States courts ; Pearce v. Winter Iron Works, 32 Ala. 68 ; Wright v. Marsh, 2 Greene (la.) 94. (e) "Where the defect of jurisdiction appears upon the face of the record. — Where the record affirmatively shows a defect 1U18 CREl'PS V. DUUDEX ET ALIOS. of jurisdiction, tlie judgment, even of a superior court, may always, both at home and abroad, he attacked coUaterally. This is true whether, as in Crepps v. Durden, the jurisdictional defect is one which arises from a mistake in going beyond the scope of the law by the court, or is due to a failure to obtain jurisdi(;tion of the person of the defendant; Lessee of Moore v. Starks, 1 Ohio St. 3G0 ; HoUingsworth v. Barbour, 4 Pet. 40G; AVcbster v. Reid, 11 IIow. 437 ; Shrivers Lessees r. Lynn, 2 How. V. S. 43, dictum; Clark v. Bryan, 1(3 Md. 171 ; Mcssinger V. Kintner, 4 Birm. 97 ; Bal)bitt v. Doe, 4 Ind. 35"> ; Lamar v. Comnn-s., 21 Ala. 772; Dempster v. Purnell, 3 M. A: (ii-. 375; Coan V. Clow, 83 Ind. 417. (c?). Where superior courts act outside of their ordinary general jurisdiction, under special statutory powers. — It seems to be the weight of authority that when a court of superior jurisdiction acts under a special act, and for a special and limited purpose, the courts, even of the domestic jurisdiction, will not call forth the ordinary presumptions in favor of jurisdiction. Comi)liance with the statute nnist be shown of record, or the judgment, when (picstioiied coUaterally, will be treated as a nullity. The cases show many modifications of this general proposition. The principle itself is, pciha})s, in fact, a survival of the tradi- tions of the old courts, in which every encroachment of the legislative branch of government upon the domain of the com- mon law was viewed with jealousy. It is, perhaps, peculiarly out of place in code states where, as a rule, the powers and jurisdiction of all courts are largely defined Ijy statute. Never- theless, the principle is frequently asserted, in spite of the fact that it is, in many specific instances, disregarded in prac- tice. The numerous modifications of the rule are beyond the scope of this note. " Where a statute prescribes a new pro- ceeding, whether unknown to the common law or contiary thereto, the statute, so far, at least, as those parts essential to the jurisdiction are concerned, must not only be proved, hut shou'7i to have been strictly jjursued, or the proceedings will be a nullity." Whyte, J., in Earthman v. Jones, 2 Yerg. 484, (493). In accord, Foster v. Glazener, 27 Ala. 391 ; Thatcher v. Pow- ell, 6 Wheat. 119 ; Cone v. Cotton, 2 Blatchf . 82 ; 11 Phil, on Ev. (Cowen & Hill's Notes) 2d ed. p. 906, note 637 ; Commrs. V. Thompson, 15 Ala. 134 ; Bridge v. Ford, 4 Mass. 641 ; Per- rine v. Farr, 2 Zab. 356 ; Queen v. Bloomsbury, 4 E. & Bl. 520 ; CREPPS V. DUEDEX ET ALIOS. 1019 Webster v. Reed, 11 How. 437 ; City of St. Louis v. Gleason, 93 Mo. 33. Where a judgment in New York in partition was questioned collaterally in a New York court, the statute providing a specific method by which unknown parties could be served, and the record did not affirmatively show full compliance, the court held that no presumptions could be called in to support the rec- ord; Denning v. Corwin, 11 Wend. 647. As to the general principle, see M'Kim v. Mason, 3 Md. Ch. 186; Matter of Un- derwood, 3 Cow. 59 ; Messinger v. Kintner, 4 Birm. 97 ; Smith v. Rice, 11 Mass. 507 ; Proctor v. Newhall, 17 Mass. 81 ; Thatcher V. Powell, 6 Wheat. 119 ; Jackson v. Esty, 7 Wend. 148 ; Rea V. M'Eachron, 3 Wend. 465 ; Atkins v. Kinnan, 20 Wend. 241 ; Boswell's Lessee v. Otis, 9 How. 336. Semhle^ accord. Mason V. Tuttle, 75 Va. 105. Li Bloom v. Burdick, 1 Hill, 130, the judgment was held void because the court was acting under special statutory powers and the jurisdictional facts affirmatively appeared of record not to be present. See Foot v. Stevens, 17 Wend. 483 ; Hart v. Seixas, 21 Wend. 40. Under confiscation acts and acts of a like nature, the courts have always insisted upon a strict compliance with the act under which action was taken, as to all jurisdictional points ; Chapman v. Phoenix National Bank, 85 N. Y. 437 (Reversing 12 J. & S. 340); Windsor V. McVeigh, 93 U. S. 274 ; Day v. Micon, 18 Wall. 156 ; Conrad v. Maples, 96 U. S. 279. Where an adjudication in bankruptcy of the United States District Court was offered in a suit in a New York state court, it was held, it seems, that the jurisdictional facts need neither appear of record nor be shown ; Cone v. Purcell, bQ N. Y. 649 ; Rosenthal v. Plumb, 25 Hun 336. in. Inferior Courts. Inferior courts stand upon a very different basis from supe- rior courts in most jurisdictions as to the standing and con- clusiveness of their records. It may be stated as a general principle, subject to many contrary decisions, that the record of an inferior court must show jurisdiction upon its face, in order to have prima facie standing against collateral attack (a). 1020 CREPPS V. DURDEN ET ALIOS. (rt) Presumptions as to records of inferior courts •where the courts act within their ordinary limits of jurisdiction. — It si'i'MlS to be fuirly established as a general rule, that the record of a court of hifcrior jurisdiction must, in order to be good, pritnd facie^ against collateral attack, show jurisdiction. This is true, even where the attack is in the domestic tribunals. There is much conflict of decision upon this i)oint, but, on examination, it will commonly be found that where the rule has been inter- preted the other way, the result is due to the fact that the court, the decision of which was questioned, has been regarded really as a superior one, by the higher courts of the same sovereignity. The rule is as has been stated above, in the following states : Missouri: Cunningham v. Pacific liy. 61 Mo. 33; Fisher v. Davis, 27 Mo. App. 321 ; France v. Evans, 7 West. Rep. 277 ; Hausberger v. Pacific Ry. 43 Mo. 200; State v. Metzger, 26 Mo. 65. Masmchunettx : Smith v. Rice, 11 Mass. 506; Hatha- way V. Clark, 5 Pick. 490; Heath v. Wells, 5 Pick. 140; Hol- yoke V. Haskins, 5 Pick. 20. Semhle, .Jenks v. Howland, 3 Gray 536; Brooks v. Adams, 11 Pick. 441; Brooks v. (iraham, 11 Pick. 445 ; Commonwealth v. Hay, 126 Mass. 235. Neiv York: Rea V. M'Eachron, 13 Wend. 465 ; Atkins v. Kinman, 20 Wend. 241 ; Ford v. Walsworth, 15 Wend. 449 ; 19 Wend. 334 ; s. c. again. Dakin v. Hudson, 6 Cow. 221. But see Barnes v. Harris, 4 Const. 374; Van Deusen v. Sweet, 51 N. Y. 378. Peririr sylvania : (Doubtful) Messinger v. Kintner, 4 Birm. 97 ; Camp V. Wood, 10 Watts 118. Semhle, of contrary bearing, Franklin V. Goff, 14 S. & R. 181; Lockhart v. Johns. 7 Pa. St. 137; Mc- Hale's Appeal, 105 Pa. St. 323; See McKee v. McKee, 14 Pa. St. 231 ; llUnoiH : Evans v. Pierce, 3 Seamon 468 ; Douglas v. Whit- ing, 28 111. 362; Pardon v. Devine, 23 111. 572. Georgia: Grier V. McLandon, 7 Ga. 362. Michigan : Mudge v. Yaples, 58 Mich. 307 ; Clark v. Holmes, 1 Doug. 390. Maine : Granite Bank v. Treat, 18 Me. 340 ; Ne^v Hamjjshire : See the State v. Rich- mond, 6 Fost. 232, see 241 et seq. Arkansas : McClure v. Hill, 36 Ark. 268 ; Webster v. Daniel, 47 Ark. 131, at p. 141. NeAV Jersey : Bergen Turnpike Co. v. State, 1 Dutch. 554. loiva : Morrow v. Weed, 4 Clarke 77 ; United States Jurisdiction : Florentine v. Barton, 2 Wall. 210. Alabama: Sims v. Waters, 65 Ala. 442. Kentucky : See Hart v. Grisby, 14 Bush. 542. Indiana : Anderson v. Miller, 4 Blackf . 417 ; See Carr v. Goda, CREPPS V. DURDEN ET ALIOS. 1021 84 Ind. 209 ; Carver v. Carver, 64 Iiid. 194. (Here the ques- tion came up directly on appeal, and not collaterally.) Hop- per V. Lucas, 86 Ind. 43. Ohio : McCurdy v. Baughman, 1 West. Rep. 33. Mississippi : See Edwards v. Turner, 14 S. & M. 75 ; Smith v. State, 13 S. & M. 140. But see Taggert v. Wise, 60 Miss. 870. Connecticut: Wattles v. Hyde, 9 Conn. 10 ; Hall V. Howd, 10 Conn. 514 ; Stern v. Scott, 8 Conn. 480. Many of the above cases are to be considered in the light of the fact that the actions were under special statutes of a limited character, under which even courts of superior jurisdiction would have been held to strict limits as to showing juris- diction. The early rule in England, as unaffected by latter statutes and decisions, seems to be the other way, even on appeal ; Rex V. Cleg, 1 Str. 475; Rex v. Venables, 1 Str. 430. But see Connett v. Morley, 1 Q. B. 18. In Texas the courts of justices of the peace, being established by the Constitution, are held practi- cally to be superior courts. The rule then, as to such courts, seems to be that the same presumption holds as to them as that which applies to superior courts ; Williams v. Ball, 52 Tex. 603 ; Holmes v. Buckner, 67 Tex. 107. A similar view seems to obtain in Misssouri as to probate courts ; Rowden v. Brown, 91 Mo. 429; Brooks v. Duckworth, 59 Mo. 49; Johnson v. Beazeley, 65 Mo. 250. But a contrary view has been sustained as to justices of the peace ; Bersch v. Schneider, 27 Mo. 101. A like view has obtained in California as to probate courts. Inco V. Commercial Bank, 70 Cal. 339. « All reasonable intend- ments are made in Alabama in favor of the decrees of an Or- phan's Court ; dictum ; Key v. Vaughan, 15 Ala. 497. The general principle is stated, in Lessee of Grignon v. Astor, 2 How. 319, to be that jurisdictional facts must appear of record, to render the judgment of an inferior court of primd facie validity. In Rhode Island, by special statute, the jurisdiction is pre- sumed; Angell V Angell, 14 R. I. 541. And see Stern v. Ben- nett, 24 Vt. 303 ; Lawrence v. Englesby, 24 Vt. 42 ; Williams V. Sharp, 2 Cart. (Ind.) 101; Denve v. Hanlon, 21 N. J. L. 582 ; Painter v. Henderson, 7 Pa. St. 48 ; Samuels v. Findlay, 7 Ala. 635 ; Hew v. Hew, 5 Pa. St. 428 ; MTarland v. Burdick, 17 Vt. 165; Moore v. Houston, 3 S. & R. 169; Pierce v. Irish, 31 Me. 254; Cox v. Davis, 17 Ala. 714; Savage v. Benham, 17 102"2 CUKI'I'S V. Dl'KDKN KT AMns. Ala. 119; Famir /-. Olmst.M.l, 21 Vt. 12:i; liilliii) Where there is an affirmative fiuding of jurisdictional facts in the judgment of an inferior court. — Tlio ([UL'Stiou is whether, or not, where lliu (jucstuju of jurisdiction of an inferior tribunal is raised collaterally, and tliere is an express Hndinj:^ oi the jurisdictional facts, the decision is conclusively hindinjj^, is one ■which has received a different answer in different states, (1) It is universally held that an affinnative finding of jurisdictional facts by a domestic and inferior tribunal is primd facie evidence of such facts ; Wetherell v. Goss, 20 Vt. 748, 8emhle ; Ilawkes v. lialdwin, Hruyt. 85, semhle ; Staniford v. Barry, 1 Aik. 321, semhle ; Brown v. Foster, G R. I. 504; Reed V. Whilton, 78 Iiid. 570. (2) The judgment of a domestic inferior court. — ■ liut tlie ques- tion whether or not it is conclusivf like any other decision of a court, upon facts brought up before it for adjudication, is differently decided in different states. It would seem that the general view is that such a finding is conclusive in the domestic tribunals. See Sheldon v. Wright, 1 Seld. 407, at 514 ; Turner V. Malone, 24 S. C. 398 (^semhle^ the court, a probate court, was regarded as a superior one) ; Epi)ing v. Robinson, 21 Fla. 30 ; McCurdy v. Baughman, 1 West. 33 accord. That a judg- ment of an inferior court, even where it recites aflirmatively a finding of jurisdictional facts, may be impeached collaterally in the domestic jurisdiction. See, Wood r. Wood, 78 Ky. 624; Clark V. Holmes, 1 Doug. 300; Black v. lilack, 4 Bradf. 174; Smelyer v. Loekhart, 07 Ind. 315. (3) "Where the judgment sought to be questioned is that of an inferior court of a foreign jurisdiction or of another state. — Where the judgment which is sought to be questioned, is that of an in- ferior court of another state, the jurisdictional facts must be shown. If the inferior court acted under a special statute, that must be proved as a fact as a part of the case of the party who presents the record ; Thomas i'. Robinson, 3 Wend. 207 ; Hof- heimer v. Losen, 24 Mo. App. 052 ; Wood v. Wood, 78 Ky. 624. But see contra: State of Ohio v. Iliiichmau, 27 Pa. St. 470. (c) Where the defect of jurisdiction appears on the face of the record. — Where the record of the proceedings of an inferior court, when the judgment is questioned, even in a domestic tribunal, affirmativel}* shows a defect of jurisdiction, the pro- CREPPS V. BURDEN ET ALIOS. 1023 ceedings are prima facie void ; Coiikey v. Kingman, 24 Pick. 115; Hendrick 2;. Cleveland, 2 Vt. 329; Clapp v. Beardsley, 1 Aik. (Vt.) 168 ; Jones v. Jones, 3 Dev. 360 ; Munroe v. People, 102 111. 406 ; Dale v. Irish, 2 Barb. 639 ; Holmes v. Field, 12 111. 424 ; State v. %e, 35 N. H. 368. cf. Sigourney v. Sibley, 21 Pick. 101 ; Gay v. Minot, 3 Cush. 352. (f?) Where inferior courts act under special statutory powers. • — What is true of superior courts in a more limited degree, is, it seems, true to the fullest extent of inferior courts, viz., where they act under special statutory powers, the record must show that they have conformed with substantial exact- ness to the requirements of the statute, or the whole proceed- ing is primd facie void; Wattles v. Hyde, 9 Conn. 10 ; Ford v. Walsworth, 15 Wend. 449; Dakin v. Hudson, 6 Cow. 24 Hathaway v. Clark, 5 Pick. 490 ; Heath v. Wells, 5 Pick. 140 Holyoke v. Haskins, 5 Pick. 20 ; Camp v. Wood, 10 Watts 118 Bergen Turnpike Co. v. State, 1 Dutch. 554. LIABILITY OF JUDGES, OFFICERS, PARTIES, AND OTHER PERSONS, FOR ACTS DONE IN PURSUANCE OF JUDICIAL AUTHORITY, OR IN A JUDICIAL CAPACITY. Suits against Judges of Superior Courts, It would now appear to be settled to a degree of certainty, and it may be stated as a general proposition, that a judge of a superior court of record is not liable to a private suitor for any act whatever done in a judicial capacity. This is true, how- ever erroneous such act may be. It is true, even as to acts done with the most express malice. The judge is liable to impeachment and removal, but the private suitor has no direct remedy for injuries which he maj^ have suffered. As to the case where, as in Crepps v. Durden^ the judge has once acquired jurisdiction, but goes beyond and outside of it, being obliged to pass upon the law as to the extent of his juris- diction, it is now probably settled in most jurisdictions, beyond a reasonable controversy, that the judge of a superior court is not responsible for any of his acts. Where there never existed any jurisdiction in the judge to 1024 CKEITS V. DUltDEN ET ALIOS. act at all in the premises, the law is not so clearly settled. The same may be said of the case where a judge of a superior court acts without obtaining jurisdiction of the person of the party who complains of his acts. This latter case must, of course, be carefully distinguished from that in which a jutlge acts upon evidence which is in fact untrue, but which is suflicient on its face to entitle the judge to act. This case of action upon evi- dence apparently sufficient as to jurisdictional facts, is treated infra^ and comes under a different rule from that affecting the subject now discussed. The Aveight of authority seems to be that a judge of a supe- rior court of record is not liable civilly for any act whatever done while acting judicially. There is respectable authority to the effect that this view is too broad ; but, on the whole, it would seem to be fairly established, the main criticisms being directed, as intimated above, to the application of the rule to cases where there never existed any jurisdiction to act at all, or where there is a failure of jurisdiction of the person complain- ing of the judge's act. The main difficulty comes in determining when a judge may be said to be acting judicially. Is he always acting judicially when sitting at the place of holding court and in the seat of justice? May it be said of a judge of a superior court, as it was, in Crcpps v. Burden., of a judge of an inferior court, that whenever he transcends his jurisdiction his proceedings are coram non judice, and, pro tanfo, subject him to liability ? Is he liable for the consequences of ministerial acts? It would seem that an understanding of the present state of the law as to these and related points can best be reached by a considera- tion of the growth, historically, of the law bearing upon them. In treating this branch of the subject, the early cases which are cited mostly refer to inferior judicial officers, but are quoted as exhibiting the growth of the law bearing on the special head now discussed ; regard being had, also, to the next jioint, — as to the liabilities of judges of inferior courts. Book of Assise, 21 Udw. III. mi. Term, pi. 16 (1347), seems to be the first appearance in the books of the general question of liability for judicial acts. The defendants were sued for conspiracy. It was held to be an answer to the action that the defendants were grand jurors, and had found the indictment in the matter complained of. CREPPS V. BURDEN ET ALIOS. 1025 Book of Assise, 27 Edw. III. Mich. J., pi. 18, p. 135 (1353), was a case in which R. was indicted for that, being a judge of oyer and terminer, certain persons were arraigned before him for trespass, and he entered of record that they were indicted for felony. It was demanded that he sliould be held for falsi- fying the record. It was held that the presentment was bad. Year-Boole, 9 Henry VI. Hil. pi. 9, p. 60 (1431), was a case of an action against an escheater for fraud. The court said that no such action lay against a judge of record, but in the case at bar it was otherwise ; for an escheator is not a judge of record, but his office is an office of record. 9 Edw. IV. pi. 10, p. 3 (1470), intimated that no action lay against a justice of the peace for judicial acts. Year-Books, "21 Edw. IV. pi. 49, p. 67. Pigot, J. : If a justice of the peace does anything apart from his office, he may be held liable ; but in sessions, otherwise. Floyd V. Barker, 12 Coke 23 (1608). A grand inquest had been indicted for felony in the county of Anglesea. It was held in Star Chamber that neither the indictors, nor, among others, the judges of assize, could be questioned in the Star Chamber for what they had done. The court said : " And the reason and cause why a judge, for anything done by him as a judge, by the authority which the king hath committed to him, and as sit- ting in the seat of the king (concerning his justice), shall not be drawn in question before any other judge for any surmise of corruption, except before the king himself, is for this ; the king himself is de jure to deliver justice to all his subjects ; and for this, he himself cannot do it to all persons, he delegates his power to his judges, who have the custody and guard of the king's oath." The court clearly mark the distinction between the courts of record and those not of record. The Case of the Marshalsea, 10 Coke 68 (1613). Hall brought trespass for assault, &c., and false imprisonment, against various defendants. The defendants justified as officers and judges of the Court of Marshalsea, and pleaded prescription for the court, the prescription giving it limited and special powers. " It is agreed in the point, also, that in trespass before the steward and marshal, if none of the parties be of the king's household, then it is coram non judice, because they exceed their power. The same law, if they hold plea out of the verge. . . . But when the court has not jurisdiction of the cause, then the whole proceed- 1026 CKEpra v. dlkhkn i;t alios. ing is coram nonjwUee, and actions will lie against them without any regard of the precept or proeess." Aire V. Sedyivick^ 2 Rolle 195 (1C19). The L-ourt intimates the doctrine of inimnnity to a judge for anything done in a judicial capacity. Martin v. Marshal^ Hohart 03 (^prior to 1046). Defendants were sued for false imprisonment. They pleaded that one was mayor, and held court at York by prescription ; that the otlier was Serjeant of the court, and the latter acted by command of the fornici-. The plea did not biing the case within the pre- scription as [)k'a(l(.'d. HchJ^ that defendants were liable. Terry v. Huntinyton, Ilardres 480 (1680). The case was a suit against commissioners of excise for assessing low wines as strong wines. The court held that they had no jurisdiction so to act, and were liable. Hall, C. B.: ''First, the matter here is not within their juristUction, which is a stinted, limited juris- diction; and that implies a negative, viz., that they shall not proceed at all in other cases. . . . Thirdly, if such commissioners exceed their authority, what they do is coram non judice ; and then, as appears 10 Rep., their otlicers are not privileged." BushelVa Case, 1 Mod. 119 (1686), came up on a motion for time to plead by the Lord Mayor of London and the recorder. One Bushell brought an action for fuLsc imprisonment. Ihilc, C. J., said: "I speak my mind plainly, that an action will not lie; for a certiorari and a habeax corpus, whereby the body and proceedings are removed hither, are in the nature of a writ of error ; and in the case of an erroneous judgment given by a judge which is reversed by a writ of error, shall the party name an action of false imprisonment against the judge ? No, nor against the officers, neither. Time was given as prayed. Hamo7id v. Hotvell, 1 3fod. 184 (1686). This was another phase of the matter stated in the preceding case. The plaintiif brought an action for false imprisonment against the mayor of London, the recorder, the whole court of Old Bailey, and the sheriffs and gaoler, for false imprisonment. Some Quakers had been indicted for a riot. The court directed a verdict of guilty, but the jury found for defendants; and the jury were committed for finding contrary to direction in matter of law. One of the jury brought this action, after being discharged on habeas corpus. Defendants moved for further time to plead. The court declared their opinions against the action. Atkins, Justice : " It was never CKEPFS V. DUKDEN ET ALIOS. 1027 imagined that justices of oyer and terminer and gaol delivery would be questioned in private actions for what they should do in execution of their office." Grwinne v. Pool, Lutw. 935 (1693). Action was brought in trespass against a judge and officers of an inferior court. On a demurrer to a reply of want of jurisdiction, defendant had judg- mentc On the appeal (LutAvyche, 1560), the court said that no action whatever lay where the court had jurisdiction (see espe- cially, p. 1511). It was held that the action was not well brought, as it did not appear that defendant had knowledge of his want of jurisdiction. G-roenvelt v. Bruwell, 1 Ld. Raym. 454 (1700). Plaintiff sued the defendants, as censors of the College of Physicians of Lon- don, for false imprisonment. They had condemned him for malpractice. Judgment was given for the defendants, the court saying that the action of the censors, they having jurisdiction, could not be elsewhere questioned. Smith V. Dr. Bouchier, 2 Strange 993 (1735). This case was one of a suit brought for false imprisonment against the vice- chancellor of the University of Oxford and certain officers of his court. It was pleaded that the defendant B. was vice- chancellor, &c., and that by the custom, if a suitor swore that he believed that his opponent would run away, the opponent might be arrested and held ; that A. B. swore that plaintiff in this suit owed him a debt, and complainant believed that the then defendant — plaintiff here — would run away. The plea did not exactly follow the custom as pleaded. Demurrer. The plea was held to be bad, the court saying that, as the defendants were joined together, and as the judge and the plaintiff in the suit knew that the oath was not sufficient, all were liable. Miller V. Seare, 2 Wm. Black. 1142 (1767). Action against commissioners of bankruptcy for illegally imprisoning a person for not answering satisfactorily at an examination. De Grey, C. J. : 1st. It is agreed that the judges in the King's Superior Court of Justice, are not liable to answer personally for their errors in judgment. And this is not so much for the sake of the judges, as of the suitors themselves ; Bushel's case, Vaughn 138. 2d. The like in courts of general jurisdiction, as gaol delivery, &c. 3d. In courts of special and limited jurisdic- tion, having power to hear and determine, a distinction must be made. While acting within the line of their authority. 1028 CliKIM'S V. DUKDEX KT AI.IOS. tliey are protected ;is tn errors in jiidt^fiiifiit ; otliorwisc tlu-y arc; not protected. The proteition, in legiirtl to the superior courts IS absolute and universal; with res[)eet to the 'inferior it is only while they act witliiu their jurisdiction." The commissioners in bankruptcy were held to be of limited juris- diction and were held liable, as they had acted l)eyoMd their jurisdiction. Perkin v. Proctor, 2 Wih. 382 (1708). /A/-/, that trespass lay a<^ainst assignees under a commission of bankruptcy sued out against a victualler, such person not l)eiug witliiu the Bankrupt Acts. The court said ([>. 384): "And it is ni»t like where an oHicer makes an arrest by warrant out of the King's Court, which if it be error the ollicer nuist not contradict, because the court hath general jurisdiction ; but here (says Justice C'roke) the justices of the peace have but a [)articular jurisdiction." ParmuH v. Lni/il, 3 Wilx. 341 (1772). Trespass for false imprisonment. Defendant had caused to be sued out a void writ. The writ was from a court of superior jurisdiction. Held, that defendant was liable ; it did not appear that he had taken any active part in the arrest. Dictum ([). 34.")), that the officer executing the writ might have justilied under it. Harman v. Tappenden et al., 1 Eant 555 (1801). Action against T. and fifteen others. Defendants and plaintiff were members of a company of fishermen of Kent. Plaintiff was in an assembly of the company and, having broken a l)y-law, was ordered to pay a fine, or show cause, &c. He did neither, and without proof, was condemned to be prevented from fishing during the ensuing oyster season. Held, act of defendants was irregular, but judicial, and they could not be held, for such an act, having jurisdiction. They should, liowever, have taken proof. Beaurain v. Scott, 3 Camp. 388 {Nisi Prius) (1812). Held, that where an ecclesiastical court excommunicated a man in a case where it had no jurisdiction, action will lay. Aekerley v. Parkinson, 3 M. ^ Sel. 411 (1815). Action of case for excommunication. Held, that defendants (judges of the ecclesiastical court) were not liable, as they had jurisdic- tion, though they acted erroneously. Taaffe v. Doicnes, 3 3Ioores P. 0. (Ireland, 1812) 41 n. Trespass for false imprisonment. Plea that plaintiff was ap- CKEPPS V. DUKDEN ET ALIOS. 1029 prehended under a warrant issued by defendant acting judi- cially as judge of King's Bench. Demurrer. Held., that the plea was good. Mayne., J. : "• The difference between the judges of the superior and inferior courts has not been sufficiently attended to." As to judges of superior courts, "the honest, good and constitutional mind will alwa3\s wish to find them entirely free and unbiased; and will rather entrust them with a high and unquestionable authority, and, if guilty, leave their punish- ment to Parliament alone, than hazard their fortitude and in- dependence by the alarm and question, pains and expense of as many actions as there may be acts of duty encountering the bad passions and prejudices of mankind." This case is notable as being perhaps the first deliberate decision in Great Britain that seems to support the modern rule to its full extent. G-arnett v. Ferrand, 6 B. ij- Or. 611 (1827). Suit against a coroner for trespass in turning plaintiff out of a room where the defendant was holding an inquest. Held, that no action lay. Tenterden, C. J.: "The court of the coroner is a court of record of which the coroner is the judge ; and it is a general rule of very great antiquity, that no action will lie against a judge of record for any matter done by him in the exercise of his judicial functions." Mills V. Collett, 6 Bing. 85 (1829). This case turns upon the same principle as the one preceding. The court dis- tinguishes C repps V. Durden. Scott V. Stansfield, L. R. 3 Exch. 220 (1868). Action for slander. Plea, that the words were spoken by the defendant wliile acting as a county judge. Replication that the words were spoken maliciously, falsely, without reasonable cause, with no foundation, and not in the bond fide discharge of de- fendant's duty. Demurrer. Held, that the replication was bad. Kelly, C. B.: "The question arises, perhaps, for the first time with reference to a county court judge, but a series of decisions uniformly to the same effect, extending from the time of Lord Coke to the present time, establish the general proposition that no action will lie against a judge for any acts done or words spoken in his judicial capacity in a court of justice. This doc- trine has been applied not only to the superior courts, but to the court of a coroner and to a court martial, which is not a court of record." 1030 CKioiM's \'. i)ri;i>i:N i:t alios. Licas V. Lord Brougham, Q C. ^ P. 249 (1833). Trespass for false imprisonment. The defendant justified as Lord Chan- cellor of England. He had committed the plaintilf for not obeying an order. The plea was not guilty. The court was of opinion that the defendant had authority to make the order, l)ut it seems clear from the discussion that it would not have held defendant liable had he lacked such authority. Calder v. JTalket, 3 Moore s P. C. 28 (1839). Defendant sued in trespass for false imprisonment. Defendant was judge of a provincial magistrate's court in India. Act 21, Geo. III. ch. TO, § 24, made judge of such courts not liable for any act done as judge. Held (Parke, B.), this action is designed to place these judges on the footing of judges of superior courts of record. "For English judges, when they act wholl}- \\itli()ut jurisdic- tion, whether they may supj)Ose they had it or not, have no privilege. Defendant's court had no jurisdiction of Euro})eans, but it did not appear distinctly in the evitU'iice that the defend- ant knew this. To hold defendant liable, this fact must appear. Linford v. Fitzroy, 13 Ad. <)'• El. (xY. *S'.) 240 (1849). Held, that no action against a magistrate for refusing to take bail was maintainable without proof of malice. Levy V. Moylan, 10 C. B. 189 (1850). Plaintiff sued a judge of a county court in England, a sheriff, and a keeper of a house of correction. The warrant set forth imprisonment for con- tempt. Held., that although the court was of inferior and of limited jurisdiction, the writ was an adjudication that the judge had been insulted, and was regular on its face. The judge had jurisdiction, and defendants were not liable. Hoidden V. Smith, 19 L. Jour. N. S. Q. B. 170 (1850). Contra, where a judge of a county court assumed to do an act beyond his territorial jurisdiction. Ward V. Freeman, 2 //•. C. L. 460 (1852). Held, that a judge of a court of record could not be held liable for refusing to cer- tify an appeal. " No action will lie against a judge for what he does judicially, though it should be laid falso malitiose et sci- enter ;'' Barnadiston v. Soame, 6 St. Tr. 1096 (1674). "An action will not lie against a judge for anything done by him quaternus a judge ; " Hammond v. Howell, 2 Mod. 218. Kemp V. Neville, 10 C. B. N. S. 523 (1861). Defendant, a vice-chancellor of Cambridge University, was sued by plaintiff for false imprisonment. He had authority to imprison lewd CKEPPS V. DtJEDEN ET ALIOS. 1031 females found in company with undergraduates. He, in good faith, but erroneously and without due inquiry, imprisoned plain- tiff. Held^ that, as he had jurisdiction, he was not liable. Thomas v. Churton, 2 B. cf- S\ 475 (1862). Held, that a coroner is not liable civilly for words slanderous, falsely and maliciously spoken by him in an address to a jury. Miller v. Hagaart, 2 Shmv's App. Cas. (Scotch') 125 (1824). Similar decision as to words addressed by a superior court judge to counsel in course of a trial. Frai/ V. Blackhurn, S B. ^ S. 576 (1863). The declaration alleged that defendant was a judge of the Court of Queen's Bench. That plaintiff was a suitor before him. That she became entitled to costs, but defendant refused to make the rule absolute for them, defendant knowing the premises, and not regarding his duty, &c. Demurrer. Judgment for defendant. Plaintiff applied for leave to amend, to introduce an allega- tion of malice and corruption. Leave refused. Gompton, J. : " It is a principle of our law that no action will lie against a judge of one of the superior courts for a judicial act, though it be alleged to have been done mali- ciously and corruptly ; therefore the proposed allegation would not make the declaration good." The foregoing cases comprise by no means the entire list of English cases bearing upon the point under discussion. The more complete list of authorities in the English courts is to be found in the English note. The cases have been chosen merely to show the development of the rule and its relation to the views held by American courts upon the same subject. In this country the decisions have brought about much the same result. The earlier decisions relate to courts of inferior or limited jurisdiction ; but some are ■ cited here as showing the development of the law. Phelps V. jSill, 1 Bag 315 (1804). It was held that a judge of probate was not liable for failure to take security. "No man," says the court, "would accept the office of judge, if his estate were to answer for every error in judgment, or if his time and property were to be wasted in litigations with every man whom his decisions might offend." See Haynilton v. Wil- liams, 26 Ala. 529 (1855). Accord. Yates V. Lansing, 5 Johns. R. 282 (1810). This is a leading case upon this subject. In this case the plaintiff sued in an 1032 CREPl'S V. BURDEN KT ALIOS. action of debt for a penalty. The declaration alleged tliat plaintiff was arrested by the sheriff under a writ issuing out of the Court of Chancery. That plaintiff sued out a writ of haheas corpus before one of the judges of the supreme court, and was discharged undi-i- tin- writ. That afterwards the sher- iff, "knowingly," »fcc., caused the plaintiff to be re-arrested. There was a statute })roviding the penalty sued for if any one caused the re-arrest of one discharged on habeas corpus. The defendant })leaded that at the time of and before the arrest he was chancellor of the state of New York. That as such he, acting judicially, issued the writ on which plaintiff was first imprisoned, and caused the plaintiff to be committed. That afterward plaintiff was discharged on habeas corpus. That thereui)on defendant, " as chancellor of this state and not other- wise, at a Court of Chancery," «&;c., made an order for the arrest of the i)laintiff. To this there was a demurrer. The court held that no action lay. The court (^per Kent, Ch.) held that the defendant was not liable. While the court decided that the defendant had power to make the tirst commitment, and that the statute imposing a penalty did not apply, the language of the court goes much farther than this, and is inter- esting as a discussion of the general principles. " Where courts of special and limited jurisdiction exceed their powers," says Chancellor Kent, at i)age 290, " the whole proceeding is coram non judice, and all concerned in such void proceedings are held to be liable in trespass. (Case of the Marshalsea, 10 Co. 68; Terry v. Huntington, Ilardres 480.) But I believe this doctrine has never been carried so far as to justify a suit against the members of the superior courts of general jurisdiction for any act done by them in a judicial capacity." Briggs v. Wardwell, 10 3Iass. 356 (1813). A justice of peace was held liable in trespass where a party was imprisoned under an execution issued only two or three hours after judgment, — the law being that none could be issued within twenty-four hours, — the court holding that issuing the execution was a ministerial act. Lincoln v. Ilapgood, 11 Mass. 350 (1814). Parker, C. J.: Held, that an action lies against the selectmen of a town for refusing the vote of a qualified voter, though there be no malice. [Questions whether defendants acted judicially or ministerially not discussed.] C REPPS V. DUKDEN ET ALIOS. 1033 Little V. Moore, 4 N. J. 74 (1818). Held, that a justice of the peace having jurisdiction was not hable for an erroneous judgment. " In courts of general jurisdiction an action never lies against the judge, because he has jurisdiction of all causes ; in courts of limited jurisdiction it lies only when he exceeds that jurisdiction and therefore is not in the exercise of his judicial authority" (^per curimn'). Bigeloiv v. Stearns, 19 Johns. 39 (1821). Trespass for false imprisonment. Defendant justified as a justice of the peace. The statute under which defendant acted provided that a per- son before commitment should be brought before the justice ; but plaintiff here was committed by defendant without being produced. The record was regular. It was held that the plain- tiff might go behind the record, and that defendant was liable, not having acted within his jurisdiction. Page 40. " If a court of limited jurisdiction issues a process which is illegal, and not merely erroneous ; or if a court, whether of limited jurisdiction or not, undertakes to hold cognizance of a cause without having gained jurisdiction of the person, by having him before them in the manner required by law, the proceedings are void. And in case of a limited or special jurisdiction, the magistrate at- tempting to enforce a proceeding founded on any judgment, sentence, or conviction, in such a case, becomes a trespasser." Cunningham v. Bucklin, 8 Coiv. 178 (1828). Commissioners of insolvency were sued by a creditor of an insolvent, for discharg- ing the insolvent, corruption being charged. The statute made their decision conclusive as to the propriety of their acts. It was held that they were not liable. Randall v. Brigham, 7 Wall. 523 (1868). Plaintiff, an attor- ney-at-law, of Massachusetts, sued defendant, a judge of the Massachusetts Superior Court, for wrongful removal of plain- tiff from the bar. The court below instructed the jury that the action could not be maintained, and defendant had a verdict. This ruling was sustained. Field, J. : Defendant was a judge of superior jurisdiction. " In reference to judges of limited and inferior authority, it has been held that they are protected only when they act within their jurisdiction. If this be the case with respect to them, no such limitation exists with respect to judges of superior or general authority. They are not liable to civil actions for their judicial acts, even when such acts are in excess of their jurisdiction, unless, perhaps, where the acts in excess of 1084 ci:Eri's v. duuden kt alios. jurisdiction arc done maliciously or corruptly, &c." Jud^c Field cites no authority for tlie doubt expressed in the last proposition. It would seem, however, that the action of the defendant, was, in part, proper. This ease, with the law as expressed in the opinion, seems to have settled the law in the United States jurisdiction. Consult Galpin v. Page, 18 Wall. 350. Bradleij v. Fhher, 18 Wall. 335 (1871). A suit l)y an attorney against a judge who, sitting at regular term in tlie District of Columbia, had disbarred him. The plaintift's position was, practically, that the defendant's action had been so taken as to make it coram non judice and void ; the plaintiff sued for com- pensation. The supreme court held that the plaintiff" could sustain no action. The court, in a long and well-considered opinion, said, per Field, J. : " A distinction must be here ob- served l)etween excess of jurisdiction and the clear absence of all jurisdiclioii over the subject-matter. Where there is clearly no jurisdiction over the subject-matter, any authority exercised is a usurped authority, and for the exercise of such autliority, when the want of jurisdiction is known to the judge, no excuse is permissible." Busteed v. Parsons (1875), 54 Ala. 303. I'laintiff sued for false imprisonment. Defendant pleaded that as a judge of the United States District Court for the Middle District of Ala- bama, he imprisoned plaintiff. The declaration alleged that plaintiff was imprisoned maliciously and without probable cause. Plea alleged a due complaint, &c. Issues came u}) on the plea, " not guilty," and a special plea. Plaintiff urged tliat the charge was wholly outside of the jurisdiction of the United States District Court. Held, that the defendant was not liable in any event. United States courts are of superior though of special jurisdiction. The court seems to go the full length of holding that no action whatever, of a civil nature, will lie against a judge of a superior court for anything done in a judicial capacity, even though he be in error in holding that given facts give him jurisdiction. Lange v. Benedict, 73 iV. Y. 12 (1878). Action for false imprisonment. The complaint alleged that defendant was a judge of the United States District Court for the Eastern Dis- trict of New York. He presided at a circuit court. Plaintiff was indicted and convicted for stealing mail bags from the United States, the value being found to be less than $25. By CREPPS V. DUEDEN ET ALIOS. 1035 the act defining the crime tlie penalty was imprisonment for one year or $200 line. Defendant sentenced plaintiff to hoth. Plaintiff paid the fine. On habeas corpus^ afterward, defendant xe-sentenced plaintiff to one year imprisonment. The snpreme court of the United States discharged plaintiff from imprison- ment. Demurrer by defendant to the complaint stating all the facts. Held, that defendant was not liable. The point dis- cussed was really the liability for the second sentence. Folger, J. : " He [the defendant] was, in fact, sitting in the place of justice ; he was, at the very time of the act, at court ; he was bound by his duty to the public and to the plaintiff to pass as such, upon the question growing out of the facts presented to him, and as a -court to adjudge whether a case had arisen in which it was the demand of the law, that on the vacating of the unlawful and erroneous sentence or judgment of the court, another sentence or judgment could be pronounced upon the plaintiff. So to adjudge was a judicial act, done as a judge, as a court ; though the adjudication was erroneous, and the act based upon it was without authority and void." The court had jurisdiction up to the vacating of the last sentence. " This act of the defendant was then one in excess of or beyond the jurisdiction of the court. And though where courts of special and limited jurisdiction exceed their powers, the whole proceeding is coram 7ion judice, and void, and all con- cerned are liable, this has never been carried so far as to justify an action against a judge of a superior court, or one of general jurisdiction for an act done by him in a judicial capacity." See London Law Journal, Aug. 24, 1878, for approving comment. Pickett V. Wallace, 57 Cal. 555 (1881). In this case, the complaint set forth that the defendant sitting as the supreme court, knowing that the plaintiff had not committed a contempt and not having acquired jurisdiction over his person, mali- ciously, &c., adjudged him guilty of a contempt and caused liis imprisonment. Demuri'er. The demurrer was sustained. The court said that "judges of courts of record, of superior or general jurisdiction, are not liable to civil actions for their judi- cial acts, even when the acts are in excess of their jurisdiction, and are alleged to have been done corruptly and maUciously." See Turpen v. Booth, 56 Cal. 65. This case goes the full length, apparently, of holding that even where no jurisdiction is acquired of the person, a superior court judge is not responsible 1036 CREPrS V. DUllDKN KT ALIOS. for liis acts, while acting in a court of justice. The prevailing doctrines of the law, as expounded in Lanje v. Benedict and some of the other cases supni^ are scarcely liively to be changed, as was well said by Chancellor Kent in YateH v. Lansing. " No man can foresee the disastrous consequences of a precedent in favor of such a suit. Whenever we subject the established courts of the land to the degradation of private prosecution, we subdue their independence and destroy their authority. Instead of being venerable before the public, they become contempti- ble ; and we thereby embolden the licentious to trample up(jn everything sacred in society, and to overthrow those institu- tions which have hitherto been deemed tlie best guardians of civil lil)erty." The general conclusions which we reach upon a review of the cases, seem to be these: (1) That a judge of a superior court is never lial)le civilly for any act of a judicial character performed wliile sitting in the place of justice and acting judicially, pr()vif such an oi»inioii. though no decision had followed upon it, would deservedly he very great, fmni the high respect due to the experience and wisdom of so great a judge. But I am not able to discover that his opinion was delivered to that extent, and I assent to the opinion as it wius deliv- ered, and very correctly applied to the case then in ipiestion. Lord 3IansfiehJ is there speaking of the consignment of goods to a factor to sell for the owner; antl he very truly olwerves, 1st, that as against the factor, the owner may retain the goods ; 2ndly, that a ])crson into whose hands the factor has passed the consignment with notice, is exactly in the same situation with the factor himself; 3rdly, that a l>ond fide purchaser from the factor shall have a right to the delivery of the goo) Ante, p/753. LICKBAKEOW V. MASON. 1071 Observations are made on these cases, that they were gov- erned by particular circumstances ; and undoubtedly when there is not an accurate and agreed state of them, no great stress can be laid on the authority. The case of (a) Caldwell v. Ball is improperly quoted on the part of the plaintiffs in the action, because the question there was on the priority of consignments, and the right of the consignor did not come under consideration. The case of (5) Hihhert v. Carter was also cited on the same side, not having decided any question upon the consignor's right to stop the goods, but as establishing a position that by the indorsement of the bill of lading, the property was so com- pletely transferred to the indorsee, that the shipper of the goods had no longer an insurable interest in them. The bill of ladino- in that case had been indorsed to a creditor of the shipper ; and, undoubtedly, if the fact had been as it was at first supposed, that the cargo had been accepted in payment of the debt, the conclusion would have been just : for the property of the goods, and the risk would have completely passed from the shipper to the indorsee ; it would have amounted to a sale executed for a consideration paid. But it is not to be inferred from that case, that an indorsement of a bill of lading, the goods remaining at the risk of the shipper, transfers the property so that a policy of insurance upon them in his name would be void. The greater part of the consignments from the West Indies^ and all countries where the balance of trade is in favour of England, are made to a creditor of the shipper ; but they are no discharge of the debt by indorsement of the bill of lading ; the expense of insurance, freight, duties, are all charged to the shipper, and the net pro- ceeds alone can be applied to the discharge of his debt. The case, therefore, has no application to the present question. And from all the cases that have been collected, it does not appear that there has ever been a decision against the leo-al rigfht of the consignor to stop the goods in transitu, before the case now brought before this court. When a point in law which is of general concern in the daily business of the world is directly decided, the event of it fixes the public attention, directs the opinion, and regulates the practice of those who are interested. But where no such decision has in fact occurred, it is impossible to fix any standard of opinion upon loose reports of incidental arguments. The rule, therefore, which the court is to lay down («) 1 Term Rep. B. R. 205. (b) 1 Term Rep. B. R. 745. 1072 LICKBARROW V. MASON. in this case, will have the effect, not to disturb, Ijut to settle, the notions of the commercial part of this country, on a point of very great importance, as it regards the security and good faith of their transactions. For these reasons we think the judgment of the Court of King's Bench ought to be reversed. The following account of the further proceedings in this case is given hy Mr. East, in a note to his Reports, Vol. 2, p. 11>. This case first came on upon a demurrer to evidence, on which there was judgment for the plaintiff; tliis court holding, that though the vendor of the goods miglit, as between himself and the vendee, stop them in transitu to the latter, in case of his insolvency, not having paid for them ; yet that if the vendee, having in his possession the bill of lading indorsed in blank l:)y the vendor, before such stopping in transitu, indorse and deliver it to a third person for a valuable consideration and without notice of the non-payment, the right of the vendor to stop in transitu is thereljy divested as against such hond file holder of the bill. This judgment was reversed upon a writ of error in the Exchequer Chamber, where it was considered that a bill of lading was not a negotiable instrument, the indorsement of which passed the property proprio vigore, like the indorsement of a bill of exchange ; though to some purposes it was assignable by indorsement, so as to operate as a discharge to the captain who made a delivery hond fide to the assignee. 1 H. Black. 357. The latter judgment was in its turn reversed in the House of Lords in T. 33 Geo. 3, and a venire facias de novo directed to be awarded by B. R. 5 Term Rep. 367, and 2 H. Black. 211. The ground of that reversal was, that the demurrer to evidence ap peared to be informal on the record MS. The very elaborate ophiion delivered by Mr. Justice Buller, upon the principal question before the House, a copy of which he afterwards per- mitted me to take, I shall here subjoin, as it contains the most comprehensive view of the whole of this subject which is any- where to be found. A venire facias de novo having been accord- ingly awarded by B. R., a special verdict was found upon the second trial, containing in substance the same facts as before ; (a) with this addition, that the jury found, that hy the custom of mer- (a) [See as to the effect of this tincling, Seioell v. Burdick, 10 App. Ca. 74.] LICKBARROW V. MASON. 1073 chants, hills of lading for the delivery of goods to the order of the shipper or his assigns, are, after the shipment, and before the voy- age perfo7'med, negotiable and transferable by the shipper s indorse- ment and delivery, or transmitting of the same to any other person ; and that by such indorse7nent and delivery or transmission the property in such goods is transferred to such other person. And that by the custom of merchants, indorsements of bills of lading in blank may be filled up by tlie person to ivhom they are so delivered or trayismitted, u'ith words ordering the delivery of the goods to be made to such person : and according to the practice of merchants, the same, when filled up, have the same operation and effect as if it had been done by the shipper. On this special verdict, the court of B. R., understanding that the case was to be carried up to the House of Lords, dechned entering into a discussion of it ; merely saying, that they still retained the opinion delivered upon the former case, and gave judgment for the plaintiffs. 5 Term liep. 683. LICKBARROW AND ANOTHER V. MASON AND OTHERS, IN ERROR. — DOM PEOC. 1793. Buller, J. — Before I consider what is the law arising on this case, I shall endeavour to ascertain what the case itself is (a). It appears that the two bills of lading were endorsed in blank by Turing, and sent so indorsed in the same state by Freeman to the plaintiffs, in order that the goods might, on their arrival at Liverpool, be taken possession of, and sold by the plaintiffs, on Freeman's account. I shall first consider what is the effect of a blank indorsement ; and secondly, I will examine whether the words, " to be so sold by the plaintiffs on Freeman's account," make any difference in the case. As to the first, I am of opinion that a blank indorsement has precisely the same effect that an indorsement to deliver to the plaintiffs woukl have. In the case of bills of exchange, the effect of a blank indorse- ment is too universally known to be doubted ; and, therefore, on that head I shall only mention the case of Mussel v. Lang- staffe, Dougi. 496, where a man indorsed his name on copper- (a) [See as to this opinion p^r hum in Sewell v. Bta-dick, 10 App. Oa. Field, J., in Burdick v. SeiveU, 10 Q. at p. 98.] B. D. at p. 371, and per Lord Black- 1074 LICKBAKUOW V. MASON. plate checks, made in the form of promissory notes, Init in blank, ^^e., without any sum, date, or time of payment : and the court held, that the indorsement on a blank note is a letter of credit for an ind(;tinite sum ; and the defendant was liable for the sum afterwards inserted in the note, whatever it nii<,dit be. In the case of bills of lading, it has been admitted at your lordships' bar, and was so in the Court of Kinoii/rrrs (a), in 1753, Lord Chief Justice Lee held that a bill of lading transferred the property, and a right to assign that property by indorsement ; but that the captain was discharged by a delivery under either bill. In iStiee V. Prescot, in 1743 (1 Atk. 245), Lord Hardivicke says, " Where a factor, hy the order of his principal, buys goods with his own money, and makes the bill of lading absolutely in the principal's name, to have the goods delivered to the principal, in such case the factor cannot countermand the bill of lading ; but it passes the property of the goods fully and irrevocably to the principal." Then he distinguishes the case of blank in- dorsement, in which he was clearly wrong. He admits, too, that if upon a bill of lading between merchants residing in dif- ferent countries, the goods be shipped and consigned to the principal expressly in the body of the bill of lading, that vests the property in the consignee. In Cakhvell v. Ball, in 1786, (1 Term Rep. 205,) the court held that the indorsement of the bill of lading was an immediate transfer of the legal interest in (a) [Accord. The Tigress, Brown Aclm. 97. See, however, Ghjn v. E. & & Lushington's Adm. Ca. 38; 32 L. J. W. I. Dock Co., 7 App. Ca. 591.] LICKBARROW V. MASON. 1077 the cargo. In Hihhert v. Carter^ in 1787, (1 Term Rep. 745,) the court held again that the indorsement and delivery of the bill of lading to a creditor primd facie, conveyed the whole property in the goods from the time of its delivery. The case of Godfrey v. Fiirzo, 3 P. Wms. 185, was quoted on behalf of the defendant. A merchant at Bilboa sent goods from thence to B., a merchant in London, for the use of B., and drew bills on B. for the mone}'. The goods arrived in London, which B. received, but did not pay the money, and died insolvent. The merchant beyond sea brought his bill against the executors of the merchant in London, praying that the goods might be ac- counted for to him, and insisted that he had a lien on them till paid. Lord Chancellor says, — " When a merchant beyond sea consigns goods to a merchant in London on account of the latter, and draws bills on him for such goods, though the money be not paid, yet the property of the goods vests in the mer- chant in London, wdio is crechted for them, and consequently they are liable to his debts. But where a merchant beyond sea consigns goods to a factor in London, who receives them, the factor in this case, being only a servant or agent for the mer- chant beyond sea, can have no property in such goods, neither will they be affected by his bankruptcy." The whole of this case is clear law; but it makes for the plaintiffs and not the defendants. The first point is this very case ; for the bill of lading here is generally to the plaintiffs, and therefore on their account ; and in such case, though the money be not paid, the j:)roperty vests in the consignee. And this is so laid down without regard to the question, whether the goods were re- ceived by the consignee or not. The next point there stated is, what is the law in the case of a pure factor, without any demand of his own? Lord King says he would have no prop- erty. This expression is used as between consignor and con- signee, and obviously means no more than that, in the case put, the consignor may reclaim the property from the consignee. The reason given by Lord King is, because in this case the factor is only a servant or agent for the merchant beyond sea. I agree, if he be merely a servant or agent, that part of the case is also good law, and the principal may retain the property. But then it remains to be proved that a man who is in advance, or under acceptances on account of the goods, is simply and merely a servant or agent; for which no authority has been, 1UT8 LicKbAi:i:n\\ v. mason. or, us 1 Ix'lit'Vi', i;iii lu' itrodiucd. Ileif tlic bills wtMe drawn by PVeein;iii upon tin- plaiiitilTs upon tlu' s;iiiu' day, and at tlic same time, as he sent the ;;i>ods to them ; and thi-refore this must, by fair and neiessary intendment, l)e taken to Ixj one entire transaetion ; ami that the bills were drawn on aeeount of the <^n)ods, uidess the eontrary appear. — So far froni the (contrary appearini; liere, wiien it was thought proper to allege on this al and mere factor, who has neither advanced nor en^a<^ed in anylhin^^ for his principal, the principal has a rij,d>t at all times to take Iraek his goods at will : whether they 1x5 actually in the factor's possession, or only on their passaj^e, makes no dilTerence ; the principal may countermand his oriler: and tlioui^h the property remain in the factor till such counter- mand, yet from that monu-nt the property revest8 in the prin- ci[)al, and he may maintain trorer. Hut in the present case the plaintitTs are not that mere ai^ent or servant ; they have ad- vanced .")1 /// triuiKitH. It' ihu ^oods l)c his, he has -a \'\y^\\\ lo till' possession of tht'iii whether tliey Ik* in frnnnifit, or not: ho hiis ii ri^ht to sell «)r tlispose of tlieni ;is he pU-asfs, withont the option of any otlier person : hut he who has a lien only on j^ootls, has no rij^ht so to do ; he can only retain them till the orij^inal i)riee Ik' i)aie absnt' (rf>- iiouiulmI tht- judgment iii y Lord }[itn»fitl>l was, that if a consignee iHscome a hankrupt, and no p.irt of the juice of the gojtds Im' paiay seize tlu* g«»ods K'fore they come to the hands of the consignee or his assignees. This was most clearly right ; hut it does not apply to the present case ; for when he made use of the w«»rd a.ssignees, lie un- douhtedly meant a.'^signees under a commission of bankruptcy, like those who were then l)efore him, and not pei-sons to whom the consignee sold the goods ; for in that case it is stated that no part of the price of tin* goods was paid. The whole cause turns upon this point. In that case no part of the price of the goods was paid, and therefore the original owner might seize the goods. But in this ease the plaintiffs had paid the price of the goods, or were under acceptances for them, which is the same thing ; and therefore the original owner could not seize them again. But the note of that case says. Lord Mangfiehl added, ''and this was ruled, not upon principles of equity oidy, but the laws oi property." Do these words fairly import that the property was not altered by a ])ill of lading, or by the in- dorsement of it? That the liberty of stopping goods in transitu is originally founded on principles of equity, and that it has, in the case before him, been adopted by the law, and that it does att'ect property are all true : and that is all that the words mean ; not that the property did not pass by the bill of lading. The (a) 1 II. Bla. ;'.<;.-.. n. LICKBARROW V. MASON. 1085 commercial law of this country was never better understood, or more correctly administered, than by that great man. It was under his fostering hand that the trade and the commer- cial law of this country grew to its present amazing size : and when we find him in other instances adopting the language and opinion of Lord Chief Justice Holt, and saying, that since the cases before him it had always been held, that the delivery of a bill of lading transferred the property at law, and in the year 176T deciding that very point, it does seem to me to be abso- lutely impossible to make a doubt of what was his opinion and meaning. All his determinations on the subject are uniform. Even the case of Savignac v. Cuff («), of which we have no ac- count besides the loose and inaccurate note produced at the bar, as I understand it, goes upon the same principle. The note states that the counsel for the plaintiff relied on the prop- erty passing by the bill of lading ; to which Lord Mansfield answered, the plaintiff had lost his lien, he standing in the place of the consignee. Lord Mansfield did not answer mer- cantile questions so ; which, as stated, was no answer to the question made. But I think enough appears on that case to show the grounds of the decision, to make it consistent with the case of Wright v. Campbell, and to prove it a material authority for the plaintiffs in this case. I collect from it tliat the plaintiff had notice by the letter of advice, that Lingham had not paid for the goods ; and if so, then, according to the case of Wright v. Gamphell, he could only stand in Lingham's place. But the necessity of recurring to the question of notice strongly proves, that, if there had been no such notice, the plaintiff, who was the assignee of Lingham the consignee, would not have stood m Lingham's place, and the consignor could not have seized the goods in transitu : but that, having seized them, the plaintiff would have been entitled to recover the full value of them for him. This way of considering it makes that case a direct autliority in point for the plaintiffs. There is another circumstance in that case material for con- sideration ; because it shows how far only the right of seizing in trafisitu extends, as between the consignor and consignee. The plaintiff in that action was considered as the consignee ; the defendant, the consignor, had not received the full value for his goods ; but the consignee had paid 150?., on account of (a) Cited in 2 Term Rep. 66. 1()H6 i,i< kuai:i:<»\v v. mason. tht'iM. I |M)ii thr insolveiuv of tliu t<»nsipiiue, tlu* t-onsijjnor Heizetl the ^onds in trunxitit ; hut tluit \v;is lioldcii not to be justiliiiblc, iititi thfirftuv tlit'iu was a vrnlict against him. 'I'liiit was ail art ion of trovtr, wliiili cjouhl not liavi* \tccn siis- taiiu'ut on tlu' ^Moimd tliat the propt'ity was vrst«'il in tht; coiisi^nrc, antl cnultl nut Iw sri/rd in fninxiftt as against him. If tht! U't^al j)ro[)rity hae done uidess the i)ro[)ertv vest in him by the bill of lading; for otherwise his policy will l)e void for want of interest ('O; :i'>d an insur- ance, in the name of the foreign nicrchant, would not answer the purpose. This is tin- case of the merchant who is wealthy, and has the 2000/. in his banker's hands, which he can [)art with, and not tind any inconvenience in .so doing; hut there is another ca.se to be considered, vi/. — Suppose the merchant here has not got the 2000/., and cannot raise it before he ha.s sold the gooiLs? — the same considerations arise in his mind as in the former case, with this additional circumstance, that the monev must be procured before the bills Ix'come due. Then the question is, how lan that be done .' If he have the property in the <'-oods, he can go to market with the bill of lading and the policy, as was done in Sure v. Pr>-sri,t ; and upon that idea he has hitherto had no dilliculty in doing so : but if he have not the property, nobody will buy of him : and then his trade is undone. Kut there is still a third ciuse to l)e considered; for even the wary and opulent merchant often wi.shes to sell his goods whilst they are at sea. I will put the case, by way of example, that barilla is shipi)ed for a merchant here, at a time when there has been a dearth of that commodity, and it pro- duces a protit of 25/. per rent., whereas, ui)on an average, it does not produce above 12/. The merchant ha.s advices that there is a great quantity of that article in Spain, intended for the British market ; and when that arrives, the market will be glutted, and the commodity much reduced in value. He wishes, therefore, to sell it immediately whilst it is at sea, and before it arrives ; and the protit which he gets by that is fair and hon- ourable : but he cannot do it if he have not the property by the bill of lading. Besides, a quick circulation is the life and soul of trade ; and if the merchant cannot sell with safety to the buyer, that must necessarily be retarded. From the little expe- (a) St. 19 G. 3, c. 37, s. 1. LICKBAKROW Y. MASON. 1089 rience which I acquired on this subject at G-uildJiall, I am con- fident that if the goods in question be retained from the plain- tiff without repaying him what he had advanced on the credit of thenv it will be mischievous to the trade and commerce of this country; and it seems to me that not only commercial interest, but plain justice and public policy, forbid it. To sum up the whole in very few words : the legal property was in the plaintiff ; the right of seizing in transitu is founded on equity. No case in equity has ever suffered a man to seize goods in opposition to one who has obtained a legal title, and has advanced money upon them; but Lord Hardtvickes opinion was clearly against it; and the law, where it adopts the reasoning and principles of a court of equity, never has and never ought to exceed the bounds of equity itself. I offer to your lordships, as my humble opinion, that the evidence given by the plaintiff, and confessed by the demurrer, is sufficient in law to maintain the action. Ashurst and Grose, Justices, also delivered their opinions for reversing the judgment of the Exchequer Chamber. Up^e, C. J., Gould, J., Heath, J., Hotham, B., Perryn, B., and Thomson, B., contra. This case stood over from time to time in the House : and was postponed, in order to consider a question which arose in another case of Gibson v. Minet, upon the nature and effect of a demurrer to evidence, which was thought to apply also to the present case ; and, finally, the House reversed the judgment of the Exchequer Chamber, which had been given for the defend- ant ; and ordered the King's Bench to award a venire de novo (upon the ground that the demurrer to evidence appeared to be informal upon the record) and. that the record be remitted. Tms celebrated case involves two important propositions. The former is, that the unpaid vendor may, in case of the vendee's insolvency, stop the goods sold in transitu. The latter, that the rirjht to stop in transitu may be defeated by negotiating the bill of lading loith a bona fide indorsee. The right of a vendor to stop in transitu is bestowed upon him in order to prevent the injustice which would take place, if, in consequence of the vendee's insolvency, while the price of the goods was yet unpaid, they were to be seized upon in satisfaction of his liabilities, and so the property of one man were to be disposed of in payment of the debts of another. The doctrine was first introduced in Equity by the cases of Wiseman v. Vandeputt, 2 Vern. 10!i(» Li('KnAi:i:M\v v. mason. 20;5; Snee v. Prfurot, \ \ik .Mi., an. I It Anuil't v. l.itint.Tt, '.' Kt practU-ally Iniportunl liranciu's of i-oiiiiiii>ri-ial luw, yet It.s pri'clsi' L'flVct upon till- coiitnu-t of salr has nt'vrr a> yrt Ihtii ax-tTtaiut-d. A liiiflily intt-rcstlnt; ilisi|ulsitlon upon it.s hlittory and cliaractt-r will Im.> foiiiui In Lord Atnmjrr'a Jiid<;nit'nt In (iibaon v. i.'urruthert, 8 M. & VV. :i36. Tin* ipii'stion wlu'lhrr rtujipaije in trnnnitti ri'.scln«ls the rontnirt of h«1c altoyt-tluT, or otdy puts tin- vendor in possossion of a lii-n on the ({(mhLh dcfcasiltlt' on payment of tli<* price ai;rc)-d on, has often iM-en matter of controversy, parti<-niarly in ('lii'j v. Jlnrrii^Dn, Id II. i f. !V», and was Hnld in Slfpftiits V. W'ilkiitxoii, '.\ B. &. .\tl. 'ST.i, U> he still undetennined. See al.so Wilmhurst v. li<>,rk,r, '» Hlui;. N. ('. '147; In error, « Scott, N. U. :.7o ; [7 M. & Cf. WH-'. S. ('. ;] (iihsnn V. (arnit/urs, s M. Jt W. ;»'-M ; M't-ntteurth v. Onlhtemte, 10 .M. & W. 4.11 ; and Kiltmnln v. lirncr, 2 M. v<. W. .175. Lonl h'l iiijnn in llitifijunn v. Loy, 7 T. H. 445, wa.s (»f opinion that It wa.s not a rescission oi' the sale, but was (to use his lordship's own words) "an e(|uitnl)ic lien adoptetl l>y the law for the purpo.se of snl>stantinl Justice," wlieme it was held to follow tliat part payment of the pri«e by the vendee would not destroy the rli;ht to stop in tninnilii, hut only dhnlnlsh the lien pro t. Confusion has sometimes arisen on this subject, from its l»elnj; iLssiimed that a vendor's riirlit over the ;roods in respect of his price is sniiject to the same rules as an ordinary lim which cannot exist without both the rlf;hl ami the fact of pmiiiion. If yoods are sold on credit, and nothlrji: is ayretMl on as to the time of delivering the ;joods, the vendee is imim-diately entitletl to the |>ossession : and tin- rii;lit of possession, and the riylit of property, vest at once In him; hut his ri;jht of possession is not al)solute, It is lial)le it be defeated if he becomes insolvent before he obtains possession, Timkr v. IlitlUuijirurth, 5 T. U. 215. If the seller has dispatched the <»oods to the buyer, anil In.solvency occur, he ha.s a ri^ht in virtue of his t>rii;inal ownership to stop th»'m in transitu. Mason v. Lirk- barruic, 1 II. Bl. ;?57 ; Kllis v. Hunt, 3 T. U. 4i;4 ; lIo,l.j>ton v. Lnij, 7 T. U. 440; /;i(//('.s- v. Ushtrmioil, 1 East, 515; liothUn;t2 LIC'KHAl:l:n\V \. MASON. tin* {jootis, wliili- (Iftaiiud, nniain at the rl«.k kI' tlu' vriidt'o, niul tliat the ven- dor can \in\v no rinht to rrsdl tlu-iii, at all rvriits until tin- prrioil of rrt'illt In expired; after tliat period, iiule«-d, the refusal of tin- vt-uilee or Inn rrpresen- tatives to receive the ;;oods uinl pay tlie price, woultl probably be held to entitle the vendor to elect to rescinti the contract. See Luini/niil v. J'il»> , Salk. li;i. Hut what, it will be said, if the <;oods be of so perishable a nature that the vendor cannot keep them till the tin>e of credit has expired? In such a case It is submitted tliat courts of law havini; ori:;inally adopted this doctrine of stuppitijf in transitu from e(|uity, wouUi act on ei|uital)le principles by holding; the ventlor invested with an implied authority to make tiie nei-essary sale. [For the rijL^ht of an unpaid vendor sonn-what analogous to tliat of stop- pafje in transitu, see Hx pmtf ('lutlmirn, L. H H Ch. I's'.i, H I,. J. V\\. 'M , where it was lieUl that " wln-n a purchaser l)ecomes ins(»lveiit before the contract for sale lias been c<»mplelely performed, the seller, iiotw ithstaiulin;; he may have aj;reed to allow credit for the ijooils, is not bonml t<» deliver any more poods under tin- contract until the price of the uo; 4" L. J. I*. (". JH. It exists ind«-pendently «)f the <|Uestion whether there has not been an actual rescission of the contract, for it must not be overlooked that ntrrt in- solvency i)y Itself does not operate to dissolve the contract. Insolvency, however, coupled with otlier facts, is evidence of the vendee's intention not to stand by the contract, upon which the vendor may act, so that by the con- sent of both jiarlies the contract may be rescinded. Munjitn v. Itnin, L. K. 10 C. r. 15; 44 L. J. C. 1'. 47; (innn v. linlrkmc, L. U. 10 Ch. 4'.»1 ; 44 L. J. Ch. 73.}; In >v I'hanij- Co., 4 Ch. 1). 10,S; 44 L. J. Ch. i\M; Impfrial Hank v. Lon- don and St. Kathrrinr-.^ Dock Co., 5 Ch. D. 19.>; 4(1 L. J. Ch. 33'..] It is hardly necessary to add. that a wroiiirful stoppa;;e in transitu lias not the ellect of rescindinj; the contract of sale, or of atlectin^ the vendor's right to sue for the price, acquired before the stoppage. In re Ilumhertson, 1 De Gex, 2r>2; and see Gillard v. Brittan, 8 M. & W. 'yir>. [Tlie acceptance of a bill for the price of the goods by the vendee does not take away his right to stop, unless the bill is taken in painmnt whether paid or not. Feise v. U'raij, 3 East, !»3; Edirards v. lirctrer, 2 M. & W. 37.'>.] Tlie person who stops in transitu must be a consignor [or vendor]. A mere surety for the price of tiie goods has no right to do so. Siffkin v. Wray, (j East, 371. [Tliougli perhaps where the surety has paid the vendor, he may obtain the right to stop in his name under the Mercantile Law Aniendineut Act, 19 & 20 Vict. c. 97, s. 5. See Imperial Bank v. London and St. Katherine'3 Dock Co., 5 Ch. D. 195 ; 4G L. J. Ch. 335.] But a person residing abroad, who purchases goods for a correspondent in England, whom he charges with a commission on the price, but whose name is unknown to those from whom he makes the purchases, may stop the goods in transitu if his correspondent fail while they are on their passage, for the [purchaser] abroad [may] be considered as a uew vendor, selling the jroods over again to the merchant in England, and only adding to the price the amount of his commission. Feise V. Wraij, 3 East, 93; see [Falkp v. Fletchor, 18 C. B. N. S. 403; 34 L. J. C. P. 14G: iuid] Xeii:soin v. Thornton, G East, 17. where a person who had consigned LICKBAREOW V. MASON. 1093 goods to be sold on the joint account of himself and the consignee, was held entitled to stop them in transitu, the consignee becoming insolvent. [So a person who buys goods for another on his own credit and takes bills of lading indorsed for delivery to his own order, and then indorses the bills to the party for whom he bought, is a vendor for the purpose of stoppage in transitu : The Tigress, Brown & Lush. Adm. Ca. 38 ; 32 L. J. Adm. 97 ; and where a vendee's broker, being liable by custom for the price of goods, paid the vendor, it was held that " having regard to the terms of the Mercantile Law Amendment Act, (19 & 20 Vict. c. 97, s. 5,) and to the justice of the case, the lien of the unpaid vendors was a security which subsisted for the benefit of the broker who paid the money, and therefore he could in their name have stopped the goods : " Imperial Bank v. London and St. Katherine' s Dock Co., 5 Ch. I). 195; 46 L. J. Ch. 335. In Hathesing v. Laing, L. R. 17 Eq. 92; 43 L. J. Ch. 233, Bacon, V.-C, would seem to have held that a broker who had paid the price of goods for his principal the vendee, and had shipped them in the vendee's name, was not in the position of a vendor, so as to stop in tran- situ ; but the case was decided also on other grounds, and as regards this point is perhaps hardly reconcileable in principle with those last cited.] In Jenkijns v. Usborne, 8 Scott, N. R. 522; 7 M. & G. 678, S. C, it was attempted, but without success, to confine the right to vendors in whom the property in the goods has actually vested at the time of the stoppage, and to exclude from it a vendor in whom the property in the goods had not vested at the time of the stoppage, but only an interest in and right to receive a certain portion of a cargo to be aftenvards ascertained and appropriated to the parties interested in it, of whom he was one. Tindal, C. J., in giving judgment said : " We see no sound distinction, with reference to the right of stoppage in transitu, between the sale of goods the property of which is in the vendor, and the sale of an interest which he has in a contract for the delivery of goods to him ; if he may rescind the contract in one case, for the insolvency of the purchaser, he must, by parity of reasoning, have the right to rescind it in the other." As to what is a sufficient authority from the vendor to enable another person on his behalf to stop goods in transitu, see Whitehead v. Anderson, 9 M. & W. 518; [Keinj) v. Falk, 7 App. Ca. 585.] Stoppage in transitti, as its name imports, can only take place while the goods are on their way; if they once arrive at the termination of their jour- ney, and come into the actual or constructive possession of the consignee, there is an end of the vendor's right over them. And, therefore, in most of the cases the dispute has been whether the goods had or had not arrived at the termination of their journey. The rule to be collected from all the cases is, that they are in transitu so long as they are in the hands of the carrier as such, whether he was or was not appointed by the consignee, [Ex parte Rose- vear China Clay Co., per Brett, L. J., 11 Ch. D., at p. 570,] and also so long as they remain in any place of deposit connected with their transmission. But that, if, after their arrival at their place of destination, they be warehoused with the carrier, whose store the vendee uses as his own, or even if they be warehoused Avith the vendor himself, and rent be paid to him for them, that puts an end to the right to stop in transitu. See Nicholls v. Lefevre, 2 Bing. N. C. 83; James v. Griffin, 1 M. & W. 20; Edwards v. Breioer, 2 M. & W. 375; INicholson v. Boicer, 1 E. & E. 172, per Lord Campbell, C. J. ;] and James v. Griffin, iterum, 2 M. & W. 623, (where the court differed on the question whether evidence of the vendee's intention not to take possession uncom- municated to the wharfinger was admissible,) Mills v. Ball, 2 B. &P. 457; 1094 LiCKnAiuiow V. mason. Iludyton v. L<>y, 7 T. 11. 410; Smith v. (ii>»», 1 Ctimp. 282; Conta v. Rttiltun, 6 B. & C. 422; [lis to wliich casi-, however, see Kemiil v. Mamhall, II Q. B. I)., at p. 3G0, ptr Hntt. L.J. ;] ItirhnnlMnn v. ^r'oit.-*, 3 H. & I*. 127; >'<<»« v. Petit, i B. i P. 4t;i»; Fo»lfr v. Frinnptnn. (i B. & C. HW; /I'ojr*- v. Pirkford ; [H Tniiiit. 83;] Uurrij v. Mnnylea, 1 Camp. 452; Stm-fld v. Ilni/hfa, 13 Ku.st. 40M ; [Ileinekftj v. A'/jW*?, 8 K. & B. 410, atltnnetl lii error, /'»i«/., 427; AV p'lrtf Cat- ling, 29 L. T. X. S. 431 ; Ihdtun v. Lnnc. & Y. Uuil. Co., L. K. 1 C, 1'. 431 ; 35 L. J. C. r. 137 ; Rmhjer v. TAe Comptnir trEsi-ninpte de Pari», L. K. 2 1*. C. C. 398; Ex parte Watson, In Tf Love, 5 Ch. 1). 3.j ; 4«; L. J. Bank. 71 ; Mt-rrhant Bankiuij Co. v. Phwnix lifaanner Steel Co., .1 Ch. I). 2(t.j, 4C L. J. Ch. 419; and see Conprr v. mil, 3 11. & C. 722; 34 L. J. Exeh. HU.] The arrival of the ^^ood.s at a place where they are to he at the onlers of the buyer, in tlic liaiuh of persons who are to keep tiieni for him, is an end of tile trau^itus, altiiou;;li tlie place l)e not tliat uf tlieir \ittimate destination, Winticorth v. Oiitltiraite, 10 M. & W. 43(5; Dodaon v. Wtntieorth, 5 Scott, X. K. 821 ; 4 M. & Or. 1080, S. C. ; [see Cuanrk v. lioldnnon, 1 B. & S. 299; .30 L. J. Q. B. 2G1 ;] beeau.se In such a case the jjocmIh have not Into the hands of a;;entH for the buyer, not concerned merely in the carriaije of tlie goods. .\ntl the 8ame, as it seems, wliere tlie ;jo(kIs iiave j;"t '"t"* ll>^' hands of a person em- ployed l)y the buyer to receive them from the tir>t carrier or out of the ware- liouse wliere tiny wero when solil. and «ive them a new destination, as In Valpij v. (iili.sDit, [4 C. B. 837,] where the f;oo«ls had been ordered for the Valparaiso market, and the Court of Common IMeas expressed their opinion that tlic transit was at an end upon the arrival of the j;o>n, H Scott, N. It. .W; 7 M. & Gr. :W0, S. C, where the weller, wlio luul himself bought the fjoods of the Importer, In whose name they were warehoused in the Wi-.st India Docks, jiiwc the buyer a delivery order upon which the dock coni[iaiiy refused to act, because not trlven l)y the iniporter; and upon the »ubse<|fieni- Insolvency of the buyer, tiie seller liiniself olituined a delivery order froi;) the importer and possessed himself of the i^fiods ; [ami see Iinftfrinl Bunk v. London d- St. K. Dork Co., .". ("Ii. 1). r.).>, 4t; L. .1. Ch. X\o]. The (niestion in all such eases seems to be, whether the warehouseman at the time of the stoppaj^e lield tlie gotKls (J.h ui/tnt/or thf f<>/i«j;/H«r, or an mj* nt fur the consignee. As to the effect of a delivery order l)oth with respect to stoppiure in transitu and otherwise, see Ilarman v. Aml»'rtinn,2 Camp. 24:t; Stonardv. iJitnkin, Ibid. :H4; Drnt'ill v. Hum, 3 B. & V. 42:5; [Farina v. I/omr, U\ M. & \V. Hi);] Searlf v. Kftces, 2 Ksp. 51)H (f/M/pr*') ; Akrnnan v. Ilinnithroj, 1 C & IV h'.\; Turkcr V. Huston, 2 C. & P. H« ; Siranwirk v. Sothiron. y A. A. & K. Hl).'> ; Mil- linij V. Kdshair, 1 C. & .1. Ih4 ; M'Eiran v. Smith, 2 II. of Lords, 'Mo; [/>ixon V. liorill. ;i Macq. II. of L. 1 ; (loiltit v. Hose, 17 C. H. 229; Pi-arson v. Dairson, E. n. v^ K. 44H; Kiiiijs/onl Y. Mernj, 1 H. & N. oO;!; C'„ventr>j v. tilailMone. L. K. r. K(|. 44, :17 L. J. Ch. 45>2 ; Ynunn v. Lambert, \.. U. 3 P. C. 142, .TJ L. .1. 1'. C. 21 ; Imperial Hank v. London iC A'/. A'. Dork Co., 5 Ch. I). r.>5 ; 4t> L. J. Ch. 835; Merchant Banking Co. v. Phoenix Co., 5 Ch. I). 20.>, 40 L. J. Ch. 418; 40 & 41 Vict. c. 3U, s. 5]. If the vendor allow the vendee to take possession of p!irt of the ijood.H sold under an entire contract, without intending; to retain tlie rest, his riirht to stop in transitu is ;;one. Hammond v. Aiulrson, 1 N. K. (ID. See Sluhij v. Hatfward, 2 H. HI. 504; Hanson v. Meyer, « Kast, G14 [Ex parte (Jihhe.n, 1 Ch. D. 101; 45 L. J. Hank. 10. See, however, Bolton v. The Lancashire, dr.. Hail. Co., L. R. 1 C. P. 431. 35 L. .1. C. P. 137]. Hut it is otherwise if he do intend to retain the remainder- Bunny v. Poynts, 4 H. & Ad. 570; .see Wentworth v. Outhicaitc, 10 M. & W. 451; Tanntr v. Scovell, 11 M. & W. 28. [Ax parte Chalmers, L. R. 8 Ch. 289, 42 L. J. Ch. 37.] It [has been] said that, primii facie, a delivery of part imports an intention to deliver the whole. Per Taunton, .!., Belts v. (rililiins, 2 \. &. E. 73. That diW?e after the period durin;; which tlie seller himself could have stopped in tntngitu. Bird v. Uroirn, 4 Kxch. TsC. The second vendee of a chattel cannot, yenerally speakiuir, stand in a better situation than his immediate vendor. ■Small v. Monte, 'J Uiu^. 574. IKerne v. Deslaudes, 10 C. H. N. S. 2U5 ; 30 L. .1. C. P. 21)7, S. C. ; Shiridan v. New Qumj Co., 4 C. B. N. S. G18; Srhitstrr v. M'h'ellnr, 7 E. & li. 704.] If, therefore, the vendee sell tlie ^oods before they have been delivered to him, he sells thcin, generally speakini;, subject to the vendor's ri}jht to stop in transitu. Dixon v. Yaten, 5 li. & Ad. 313; Jinkijn.H v. I'xhorne, 8 Scott, N. U. 505; 7 M. & (I. (178, S. C. [though see per Lord Kltznerald, Kemp v. Fdlk, 7 App. Ca. at j). .V.)0. Subject to the vendor's rli;hts the .subvendce woulil of course be entitieil to the ;;o<»ils, Kemp v. Fnlk, itld sup. ; Ex parte Goldiiir/, Davi.'t, and Co., Limited, 13 C'li. 1). C>'2H.] But on [the above] ride the principal ca.se has engrafted an exception; for the second and main point in Liekhnrrow v. .Ma-son is, that the vendee nuiy. by nejfotlatin^ the bill of ladin<; to a honci fide transferee, defeat the vendor's rifjlit to stop in transitu. [.And the recent act to amend the Factors' .Vets. 40 & 41 Vict. c. 31), has extended this doctrine by enactinfr (s. 5) that: " Where any document of title to jjoods has been lawfully indorsed or otherwise transferred to any person as a vendee or owner of the fjoods, and such person transfers such document by indorsement (or by delivery wliere the document is by custom, or by its express terms transferable by delivery, or makes the goods deliverable to the bearer), to a person who takes the .same ^o/ja .rt"(/e and for valuable consideration, the last-mentioned transfer shall have the same eft'ect for defeating any venilor's lien or risjht of stoppage in transitu as the transfer of a bill of lading has for defeating the right of stoppage in transitu." As to what is or is not a document of title to goods, see Cunn v. Bnlckoio, L. R. 10 Ch. 491; 41 L. .1. Ch. 732; Kemp v. Folk, 7 App. Ca. 573; 52 L. J. Ch. 1G7.] A succinct history of the law on this point is given by Lord Tenterden, in his admirable work on Shipping, [p. 388, 11th cd. by Slice, 442,] where he remarks, tliat "the earliest mention of the subject in our law books is the case of Evans v. Martlett, 1 Lord Kaym. 271, 12 Mod. 15G; in Avhich Holt, C. J., said ' the consignee of a bill of lading has such a property that ho may assign it over : ' and Shower said ' that it had been adjudged so in the Exchequer.' But in that case, the efl'ect of such an assignment was not properly before the court, and does not appear to have been discussed or argued; and the case supposed to be referred to by Shower has not been found. In the case of Stiee \. Prescot, 1 Atk. 246, the right of the pawnee of the bill of lading as against the consignor was not noticed or insisted upon." He then proceeds to comment on the cases of Wright v. CampbeU, 204fi. 1 Bl. 628 ; Ilibbert v. Carter, 1 T. R. 445 ; Caldwell v. Ball, Ibid. 205 ; and Lickbarrow LICKBAEROW V. MASON. 1099 V. Mason; and concludes by stating, [p. 435, 11th ed.], that " that cause was tried again, and that the Court of King's Bencli. at the head of wliich Lord Kenj^on had in tlie meantime been placed, and who had, in another cause, expressed his approbation of the first judgment in this case, as being founded on principles of justice and common honesty, again decided the case without argument, in conformity to tlie first decision of that couit; 5 T. E. 683; and in order tliat the question might again be carried to the other tribunals, another writ of error was brought; but it was afterwards abandoned, and it is now the admitted doctrine in our courts that the consignee may, under the circumstances before stated, confer an absolute right and property upon a third person, indefeasible by any claim on the part of the consignor." [To defeat the vendor's right of stoppage, the indorsement of the bill of lading must be for value. In Rodger v. The Comptoir d'Escompte de Paris, L. R. 2 P. C. 393 ; 38 L. J. P. C. 30, it was held by the Privy Council that an antecedent debt was not a sufficient consideration to defeat the I'ight of stop- page in transitu. But the Coui't of Appeal have expressly dissented from this case. Leask v. Scott, 2 Q. B. D. 376; 46 L. J. Q. B. 329, 576. In the former case, Lyall, Still & Co. being pressed by the respondents, who were their creditors to a large amount, executed an assignment of all goods and bills of lading, or other documents for goods to arrive in December, 1866. In pursu- ance of their agreement in tlie assignment, L. S. & Co., on the subsequent arrival of goods, indorsed tlie bills of lading to the respondents without receiving any consideration for such indorsement except an existing debt and the release of an antecedent agreement bj' L. S. and Co. to furnish bills and shipping documents, on the faith of which the advances were made by the respondents to L. S. & Co. At the time of the assignment it was notorious that the assignors were in difficulties ; and by the assignment, if not before, they were made insolvent. It was held that the indorsement of the bills of lading did not defeat the vendor's right to stop in transitu. See The Char- tered Bank of India v. Henderson, L. R. 5 P. C. 501, a somewhat similar case, in which it was held that the indorsement was for a sufficient consideration. In Leask v. Scott (supra) the facts were as follows : On the 22nd December, 1875, Geen, Stutchbuiy & Co., fruit merchants in London, agreed to purchase of the defendants a shipment of nuts from Naples to London, by the Trini- dad, "reimbursement as usual," which was by acceptance at three months on delivery of the shipping documents. On Saturday the 1st of January, 1876, being prompt day, Geen & Co. being already indebted to the plaintiff', their fruit broker, in between 10,000Z. and 11,000?., Mr. Geen applied to him for a further advance of 2,000Z. The plaintiff" said, "You may have it, but you must first cover up your account." Geen said he would give him cover, and the plaintiff^'s cashier at once handed Geen a clieque for 2,000Z. On Tuesday the 4th day of January, the bill of lading, dated the 29th of December, 1875, indorsed by defendants in blanlv (the nuts being made deliverable to tlieir order), was handed by tlieir agent to Geen & Co., and they at once accepted a draft for the price, 224/. 16s. 2d. : and on the next day Geen & Co. handed to the plaintiff" the bill of lading and other similar documents to the value of about 5,000Z. in performance of their promise on the Saturday to give the plaintiff" cover. On Saturday the 8th of January, Geen & Co. stopped pay- ment. The Trinidad arrived off" Liverpool on the 3rd of February, and the defendants sought to stop tlie nuts in transitu, the plaintiff" claiming them under the bill of lading. The nuts were landed, warehoused, and sold, the price being held to abide the result of the interpleader action. 1100 LICIOJAliUoW V. MASON. In answer to qncstions by the jiul^ijo, the jury found tlmt the plaint ill" received tlie bill of lading honestly and fairly : that valuul)le con.sidi-ratlon was given on the uudurstaiidiug of security being given : and thai tlu- security given was to secure the 2,UU0/., and also the old account. On behalf of the defendant it was contended, on the authority of //<»(/;/(•>• v. The Ciirii/ittiir d'Kscumiiti- tie I'dris, that the c(|Uitable right of stoppage pro- vailed against a legal title acfpiircd by receiving the bill of lading for a eon- siileration, no part of which was caused to be given by the bill of lading. The Court of Api)eal, whilst of opinion that the defendant's argument was the same as the rutin di'cidouU in Ilodijcr v. Tin' ('mujitnir d'h'.icoinpti- de J'„ LiinUeil, i:\ Ch. 1). (i^M, tlif cases of Sptildimj and lludimj and K/ jntrtf W'fgtziitlhua are followed and approved.] Wlillst. however, the in111 of ladini; ndi;ht defeat the rli;ht of stoppa;;e in tninsitn, still l>efore tlie statute is i<. I'.i Vict. c. Ill, the transfer of a bill of hulini; did not, like that of a bill of exchange, confer any rl{;ht on tin- assii^nee to sue upon the contract expres.sed thereliy. 'I7ii»npiiim V. Duminy, 14 M. & W. 4o:J : Ilntr.trd v. Sh'phi-rd, 9 C. B. TM\. That statute, howevt-r, has altere«l the law in this respect. By the first section ri<;lits of action and Iiai>Hities upon tlie bill of ladlnt; are to vest in and l)ind the coiisi;;nce or indorsee tn trhmn thf prnpryttj in ttn ijiiud.i shuil pass. [See Fn.1- v. \i^tt, ('. II. & N. ('..{O ; :io I,. .1. Kxi-li. '.'.".'.», showini; tliat the section was not intended t<) exonerate tile orii^inal shipper; Sfmrl v. .S7;/*/i.i<>//, L. U. 1 ('. r. 24M; :\r, L. .]. V. v. 147; and Thr St. Clnud, Brown & Lush.. Adm. Ca. 4. As to what \n prinn't/itcif evidence that the property pa.s.Hed. see Dnirarhi V. The Anijlit-Eyijptian Hunk, L. K A ('. T. I'.M); :t7 L. J. ('. P. 71; and see The Freedom, L. R. 3 P. C. '.'.M. The (piestion wliether hulorsciucnt and delivery of tlie bill of Ijidinir by way of security for an advance passes " tlic property in tlie jioods " witldn tills section, so as to make the indorsee liable for frei;jht, lias been very fully dis- cussed in linrdirk v. Snrr/l, K) l^. B. I). IWi.l, nu^. H. I), l.'.lt. and U) Ai)p. Ca. 74. In that case it was eventually decided by the House of Lords tliat where such indorsement and delivery operates merely by way of pledjje, .so as to give a special jiropcrty only to the plodifee and not as an assignment of the whole property in tlie ijooils, the pletlgee is not an Indorsee to whom the property passes within the act. -Vnd aruitde {^per Lord Selborne at p. 8'>, and Lord Blackburn at p. OC), it would l)e tlie .same if tlie transaction were in fact a mortiraire. though that point was not decided by the House of Lords (see p. 103). The pledgee would, however, be liable, irrespectively of the Act, on the bill of lading if and when he should take delivery of the goods under the bill of lading, pir Lord Selborne, ib. at pp. Hd-.s;), and Allen v. C<>ltl„t>n, 2 M. & li»U. 2:J; l'hiUii>» v. UhIU, «; M. i \V. tJUi ; llnttirld V, J'hiHii>s,\> M. & \V. <;47; 14 M. & \V.CG5; 12 CI. & Fin. 343; Uunzi v. Strwart, 5 Scott, N. U. 1 ; 4 M. & (i. .•>25 [nuint-a V. Sieainatnt, 4 B. & S. 270; 32 L. J. C. n. 281 ; Johnston v. Cm/if Lyunnai», 3 C. P. I). 32; 47 L. J C. P. 241. /x-r Hramwell, L. .1.. wlui elaborately shi>ws that •■ pi-rson lntrnste17. A fraudulent sale can- not be upheld as a pled^^e under this section. I'hompHon v. Fannrr, 1 .M. & M. 4M. The |irovisioiis of tills statute ((5 (Jeo. 4, c. IM). bciiiii found insulllcient to niet't tlie wishes or convenience of men-iiants. stat. .'» v<: (! Vict. c. 31), '• An act to amend tlie law relating to advances bunii Jidv made to af^ents Intrusted with gootls." was passcil (;i(itli ,Iuiie, 1812). The 1st section, after recitin;; intir alia, that by (', (Jco. 4, c. I>4, " validity is {riven, imder certain circumstances, to contracts or agreements made with persons intrusted w ith and in possession of the documents of title to goods and merclKiudize, and consisrnee making advances to persons abroad who are intrusted witli any jrootls and merchandize are entitled, uniler certain circum- stances, to a lien thereon, but under tlie said act and the present state of the law. advances cannot safely be made upon goods or 4, or otherwise, would be bound by a contract or agreement of sale, be in like manner bound by any contract or agreement of pledge or lien for any advances bond fide made on the security thereof; " and tliat " much litigation had arisen on the construction of the (5 Geo. 4, c. 94, that it did not extend to protect exchanges of securities bond fide made, and so much uncertainty existed in respect thereof, that it was expedient to alter and amend the same, and to extend the provisions thereof, and to put the law on a clear and certain LICKBAllROW V. IVIASON. 1105 basis; " enacts " that from and after the passing of this act any agent who shall hereafter be intrusted ivith the possession of goods " [Freeman v. Apple- yard, 32 L. J. Exch. 175], " or of the docAiments of title to goods, shall be deemed and taken to be owner of such goods and documents, so far as to give validity to any contract or agreement by way of pledge, lien, or security bond fide made by any person with such agent so intrusted as aforesaid, as well as for any original loan, advance, or payment made upon the security of such goods or documents, as also for any further or continuing advance in respect thereof, and such contract or agreement shall be binding upon and good against the owner of such goods, and all other persons interested therein, notwithstanding the person claiming such pledge or lien may have had notice that the person vjith whom such contract or agreement is made is only cm agent." This, as well as the other provisions of the statute, though wide enough in terms to include many other cases, has been limited in construction to mer- cantile transactions. So that in Wood v. RoiccUffe, 6 Hare, 191, where it was contended that advances made upon the security of furniture in a furnished house, not in the way of trade, to the apparent owner of the furniture, who in fact was an agent intrusted with the custody of it by the true owner, were within the protection of 5 & 6 Vict. c. 39, Sir James Wigram, V.-C, held the contrary, saying in the course of his judgment: " the first act (6 Geo. 4, c. 94), is for the ' protection of the property of merchants and others,' and the property referred to is 'goods, wares, and merchandize,' intrusted to the agent ' for the purpose of consignment or sale,' or ' shipped ' ; " [see the first section of the act;] " and upon a judicial construction of the act it has been held that the generality of the expressions must be restricted. Every servant of the owner of goods employed in the care or carriage of such goods, is in one sense ' an agent intrusted with goods,' but still he is not an agent within the meaning of the statute; MonJc v. Whiltenbury, 2 B. & Ad. 484. The title of the second act (5 & 6 Vict. c. 39) is more general ; but it appears to me to relate to 'agents,' and to ' goods and merchandize,' in a sense Avhich is not applicable to the agency or the property in this case." In Monk v. Whittenhury, supra, it was considered that a carrier, warehouse- man, packer, or wharfinger is not " an agent," within 6 Geo. 4, c. 94; and Sir James Wigram, V.-C., appears to have treated that decision as applicable also to the construction of 5 & G Vict. c. 39. [In Lamb v. Attenborough, 1 B. & S. 831 ; 31 L. J. Q. B. 41, a wine-merchant's clerk was held not to be his " agent" within the meaning of the Factors Acts, but only his servant; but in Hayman v. Flewker, 13 C. B. N. S. 519; 32 L. J. C. P. 132, a person intrusted with pictures for sale on commission, and whose ordinary business did not extend to selling on commission, was held to be an "agent" within 5 & 6 Vict. c. 39, s. 1, as his employment on the occasion corresponded with that of a factor. In the two cases of Johnson v. Credit Lyonnais Co. and Johnson v. Blumenthal, 3 C. P. D. 32, 47 L. J. C. P. 241, the Court of Appeal affirmed two judgments of Denman, J., and Pield, J., in which those learned judges respectively held that a vendor who had been left by his vendee in possession of documents of title to goods till it suited the convenience of the buyer to accept delivery, could not under the Factors Acts confer a good title upon a bona fide pledgee. These judgments, though clearly in accordance with previous decisions, created some consternation amongst commercial men, and led to the passing of another Factors Act, 40 & 41 Vict. c. 39, whereby it is provided (sect. 3) that " where any goods have been sold, and the vendor or any person on his behalf continues or is in pos- 1100 LICKHAUUOW V. MASON. st'ssion of the ilociiintiiis .ii liiU- thereto, any sale, pledge, or other clispoHl- lloii of tlie ^ooils or y tills act. so eoiitlniiitiv; or helni; In posses- sion, shall In- as valid anil ctfertual as if smh vendor or person were an a);ent or person Intrusted hy the vendee with the j;oods or doeiiments within the meaning of the prlnelpal aets as amended by this at n<»th-e that the jjoods have been previously sold."] In .hnkijnit v. Vulxtrnr, M Seott, N. H. 50'.; 7 M. & C. f>78. S. C, eonllnne hail rerelveil from the vendor a delivery order for the ijootls was considered not to be a person In- trusted with a ilellvery order within the n of tlie documents of title thereto from the vendor or Ids agents, any sale, pledge, or disposition of such jjoods or documents by such veude*- so in possession, or by any other |)erson or aiiciil intnisteil by the vendee with the «locum«'nts within the meanin*; of the primipal acts as anu-nded by this net. shall be as valiil ami etl'e;es the icoods slioidil be Intnisted with the ^iiods for the purpose of sale. In liainra v. Sinunaon, 4 B. & S. L»7o, the transaction was held protecteil, thouurh the instructions kIvcii to the aircut were •• U'e send you (the factor) the Hoods for tlie puriMise <»f elVectini; this sale, which we shall ratify and approve through you, and we Intrust you with the possession of the jjoods to sec if they answer the description we have ^Iven." The aj^ent in that case was by trade a factor. In Fitcntes v. Montis, L. R. 3 C. P. 2(18 ; 37 L. J. C. V. 137. the subject is elaborately discussed in the judiiment of Willcs. J. It was there held that the auent must be intrusted for the purpose of or in connection with the sale, and, therefore, tlKit where the power of .sale had »)een revoked at the time of the pledge, the transaction was not protected. This decision was upheld in the Exchequer Chamber, L. R. 4 C. P. 93; 38 L. J. C. P. 05. (It should be observed, however, as regards revocation, that by 40 & 41 Vict. c. 39, s. 2, it is provided that " where any agent or person has been intrusted with and continues in the possession of any goods or documents of title to goods within the meaning of the principal acts as amended by that act, any revocation of his intrustment or agency shall not prejudice or att'ect the title or rights of any otlier person who without notice of such revocation pur- chases sucli goods, or makes advances upon the title or security of such goods or documents.") LICKB ARROW V. MASON. 1107 Notwithstandiug a dictum of Lord Westbury in Vickers v. Hertz, L. R. 2 Sc. App. 113, the decision in Fuentes v. Montis was followed by the Court of C. P. in Cole v. The N. W. Bank, L. R. 9 C. P. 470, where it was vainly con- tended that the omission of the words " intrusted for sale" and " consign- ment for sale" in 5 & G Vict. c. 39, ss. 1, 4, altered the law upon this point, as it existed under tlie previous statutes. That case was aflirraed on appeal to the Exchequer Chamber, L. R. 10 C. P. 354, 44 L. J. C. P. 233, and has since been followed in the important case of Johnson v. Credit Lyonnais Co., 2 C. P. D. 224; 3 C. P. D. 32; 47 L. J. C. P. 241, and also in HeUings v. Russell, 33 L. T. N. S. 380, where Lord Justice Brett says, " Tlie question is, Did the agent carry on a commercial agency business of the nature of a factor ? " The decision in Cole v. North Western Bank comes to this : that an agent who can pledge or sell must be an agent of that class which, like factors, have a business which, Avhen carried to its legitimate result, would properly end in selling or in receiving payment for goods. Per Lord Blackburn, Citt/ Bunk v. Barrow, 5 App. Ca., at p. 678. For tlie purposes of tlie acts the fact of the goods having been obtained from the principal by fraud is immaterial. Sheppard v. The Union Bank of London, 7 H. & N. OGI ; 31 L. J. Ex. 154.] The 2nd section [of 5 & 6 Vict. c. 39] authorises the substitution of other goods, documents of title, or negotiable securities for those first deposited in consideration of a previous advance; but provides that the lien acquired upon the substituted property shall not exceed the then value of the property given up. The decision which pointed out the necessity for that section was Bonzi V. Stewart, 4 M. & G. 525, 5 Scott, N. R. 1, S. C. [See upon the con- struction of it, Sheppard v. Union Bank of London, 7 H. & N. 661.] Sect. 3 provides and enacts that the act shall be deemed and construed to give validity to such contracts and agreements only, and to protect only such loans, advances, and exchanges, as shall be made bontt fide, and loithout notice that the agent making such contracts or agreements is acting ivithout au- thority or mala fi.de against the owner; that "it shall not be construed to extend to or protect any lien or pledge for an antecedent debt ; " [Jeioaw v. Whitworth, L. R. 2 Eq. 692; Macnee v. Gorst, L. R. 4 Eq. 315; Kaltenbach v. Lewis, 10 App. Ca. 617; a sale for an antecedent debt was held good, Thackrah v. Fergusson, 25 W. R. 307] — " nor to authorise any agent in deviating from any expressed order or authority received from the owner — but that, for the purpose and to the intent of protecting all such bona fide loans, advances, and exchanges as aforesaid (though made with notice of such agent not being the owner, but without any notice of the agent's acting without authority), and to no further or other intent or purpose, such contract or agreement as aforesaid shall be binding on the owner and all other persons interested in such goods." It has been held upon the construction of this section, that notice that the factor had the goods for sale was not of itself notice that he had no authority to pledge. Xavid.-^haw v. Brownrigg, 21 Law J. Chauc. 57, Vice-Chancellor.(Lord Cranworth), Ibid. 908, [2 De G. Mac. & G. 441,] on appeal. Lord Chancellor (Lord St. Leonards). [As to the proper mode of putting the inmsfrr or receive gotMlM thereby ri-preseiittnl, sliull be deemed mid taken to \h' i\ili>rninfiit uj titlr witlilu the iiieiiniiii; of tlds act: — and any a^ent intrusted as aforesaid, and pfjs- Hessed of any such doeiinient of title, whether ilerived Intinediately from thu Dwner ossrssion of the <:oods, or of any other doeunient of title thereto, shall be deemed and taken to have been intnistftl with tlie poHHenslon of the iroods represented by sm-h ilocument of title as aforesaid:" — (This legislative Interpretation of the word "Intrusted" was pMideretl neres.sary by the decisions in I'/iillipit v. Hitth, >', M. & \V. ilo.'.. anil If'tfjhlil v. I'hillipa, M. & \V (U:, alllrmed In the 11. of Lonls. H M. &. \V. r,47, 1'2 CI. & Fin. :{4:J. S. ("., tiiat a factor intrusted with a bill of ladini;, and who, l»y reason of havinu the bill of lading, was enabled to and did (but not In pursuance of the Instructions of his principal) possess himself of a doik warrant, wa.s not to be consiilered a person Intrusted with the tlock warrant within the meanin<; of (! (leo. 4, e. 1)4 : [.sec the distinction between Intrusting with and enablini; to nbtain possession of. Illustrated by Crompton, .1., In Hnimst v. Sii'iiinsDii. I H. .t S. '271). and Jithiimtn v. Creilit Liftiniuiin, l\ V. 1*. 1). ;J2, 47 F*. J. (\ I'. LMI. pi-r Hramwell, L. .1.]) — Ami "all «-ontnict.s jthihiinij ur ijicimj a lini iipiiii sitrh ii,ntiii'ii' <>/ litlf an aforesaid shall Iw deemed and taken to l>e respectively jtlnhjiH nf unit lifits itjinn thr ijixuls to which the same relates : " — " And sui'h ai;etit shall be deemed to be posse>».seil of such ;;oods or dfK'U- nicnts, whether the same shall lu- In his uriuiil ruMi»lij, or shall be held by any ollu-r person subject to his control or for him or on his Iwhalf:" — And " where any loan or advance shall be luniil fl*lr inaoslt, trans- fer, or deliver such -foods or do»"uments of title as aforesaid, and such -foods or tlt)cuinents of title shall nrtnnlhj hi- rn-'-iriil by the person makliiif such loan or advance, iritlimit iintir>- that such a-.;ent was not autlioriscd to make such pledife or security, every such loan or ailvance shall be dceinetl and taken to be a loan or advance on the security of such {foods or documents of title within the meaninif of this act, thnuijh »wh ijnnilst or ihn-nuifnts n/ title shall not actuitlhj he rrreiml l>if the person mnkinf/ surh loan or ailrnnre till the period snhseqiirnt thereto : " — (This enactment may have sprunsf from the inclination of opinion expressed upon the second point arifue*! but not decided, in lionzi V. Steiciirt. 4 M. & (1. 21>."> ; .'i Sc<»tt, N. U. 1. [See also Portnlis v. Tetleij, L. R. 5 E(i. 140; Cole v. .V. H'. Bunk, snp.']-.) — And "any contract or aifree- ment, whether made direct with such ajfent as aforesaid, or iriih any rlerk or other person on his hehnlf, shall be deemeil a contract or ajfreement irith sitrh agent:" — And ''am/ paijinent made, whether A.v monnj or hills of eyehange or other nejfotiable security, shall be deemed and taken to be an advance within the meaning of this act:" — " negotiahle securit>j" that is, for the payment of money, scmhle, Taylor v. Kymer, 3 B. & Ad. 320; and althousfh the words are any payment, yet with reference to the object of this act they must be con- strued to mean any payment by way of loan or advance, and not to include a case where the real object of the parties is not a loan or advance, such as was Loaroyd v. liuhinson, 12 M. & W. 745, where the factor, being liable with the defendant on a bill of exchange, obtained a sum of money from the defendant to take up the bill, at the same time depositing with him the plaintiff's goods. In that case the direction of the judge, CoUman, J., to the jury to find for the plaintiff if they considered what was done to l)e " only a circuitous mode LICKBARKOW V. MASOX. 1109 of paying the bill on which the defendant was liable," was upheld by the Court of Exchequer. — Aud "an agent in 2}ossession as aforesaid of such goods or documents shall be taken, for the purposes of this act, to have been intrusted therewith by the owner thereof, unless the contrary can be shoion in evidence. The 5th section provides that nothing in the act contained shall lessen, vary, alter, or aftect the civil responsibility of an agent for any l^reach of duty or contract or non-fulfllment of his orders or authority. [The 6tli section has been repealed by 24 & 25 Vict. c. 95, but, with some alteration, re-enacted by an act consolidating and amending the statutes relating to larceny and like offences, viz., 24 & 25 Vict. c. 96, by the 78th section of which a factor or] agent exercising the powers virtually con- ferred upon him by [5 & 6 Vict. c. 39] mala fide, and without the authority of his principal, [is] subject to punishment by [penal servitude or impris- onment], as for a misdemeanor, unless where the property dealt with is not made a security for or subject to the payment of any greater sum of money than the amount which at the time was justly due and owing to such agent from his principal, together with the amount of any bills of exchange drawn by or on account of such principal, and accepted by such agent: or [by s. 85 of the 24 & 25 Vict. c. 96] unless he shall, previously to his being [charged with the offence], have disclosed it, [/?. v. Skeen, 1 Bell, C. C. R. 97; 28 L. J. M. C. 91] on oath, in consequence of compulsory process in any pro- ceeding bona fide instituted by any party aggrieved, or in an examination or deposition before any court of bankruptcy or insolvency. Sect. 7 [of the 5 & 6 Vict. c. 39] preserves the right of the owner to re- deem, and enables him to prove under the bankruptcy of the agent for the amount paid to redeem, or the value of, the goods. [See on this section, Kaltenhach v. Leicis, 10 App. Ca. 617, 55 L. J. Ch. 58.] The 8th section is the common interpretation clause, and the 9th and last excludes a retrospective application of the provisions of the act. This act, 5 & 6 Vict. c. 39, it may be observed, relates to advances upon the security of goods, and it will still be necessary to resort to the 2nd and 4th sections of 6 Geo. 4, c. 94, in cases not falling within that category. Stoppage in transitu. — The right of stoppage in transitu^ says Chief-Justice Shaw in Rowley v. Bigelow, 12 Pick. 313, is noth- ing more than an extension of the right of lien, which by the common law the vendor has upon the goods for the price, origi- nally allowed in equity and subsequently adopted as a rule of law. See, also, Stubbs v. Lund, 7 Mass. 453, 9 Mass. 65 ; Scho- field V. Bell, 14 Mass. 40 ; Stanton v. Eager, 16 Pick. 467 ; Bab- cock V. Bonnell, 80 N. Y. 244 ; Newhall v. Vargas, 15 Me. 314 ; Ludlow V. Bowe, 1 Johns. 16, 5 Denio 629. When, by the terms of the sale, the price is to be paid on delivery, the vendor has a right to retain the goods till payment is made. But when the 1110 I,irKl5Ai:it<)W V. MASON. vi'iulor iuid vendee are at a distance from each other, and if, while the j^'ckxIs are on the way from the vendor U* the vendee, the latter heeomes insolvent and the vendor ciin re- possess himself of thr goods ht-fore they reach the vendee, hi- h;is ii rij^dit to do so, and tlierehy regain his lien ; Rowley v. liigelow, u/ii xN/ini. Tiie general doctiiiii! of the dei-isions on this hraiuh of the law is, that the right dejiends solely npiin the innoltunci/ of the vendor. Bnt the term insolvency in this connection denotes more than merely having taken tin* henctit of an insolvent or hankrnpt l;iw ; it also inchides a failnrr to j>ay his 8; Hays r. Movoille, 14 Penn. ol ; Secomlje V. Mill, 14 B. Monroe 324. In Rogers v. Thomas, uln xupra, it was luld that it was essen- tial to the right of xtoppajie in tntm^itn, that the insolvency should intervene between the time of sale and the exercise of the right of stoppage. But this is not the prevailing doctrine of the American cases; Benedict v. Schaettlc, 12 Ohio olo; 1 Disney 445; O'Brien v. Norris, !•; Md. 1 i^J : l.o,-b r. Peters, G3 Ala. 243; Blum v. Marks, 21 La. Ann. 2t;s ; K,.ynolds v. B. & M. R. Co., 43 N. II. 580. If the vendee was insolvent at the date of the sale, but the vendor did not discover it till after- wards, his right of 8toppa;/e remains; Benedict v. Schaettlc, 12 Ohio 515: Gustine v. Phillips, 38 Mich. GT5 & 390 ; Blum v. Marks, 21 La. Ann. 268 ; Schwabacker v. Kane, 13 Mo. App. 126; Bender I'. Bowman, 2 Pearson (Pa.) 517; More v. Lott, 13 Nev. 380 ; White v. Welsh, 38 Pa. St. 306. It is not nec- essary to show that the price for the goods is due and pay- able ; Clapp V. Sohmer, 55 Iowa 273. The right of stoppage hi transitu does not exist where the goods are consigned to a creditor of the consignor in payment of the debt of the consignor ; Clark i\ Mauran, 3 Paige (N. Y.) 373 ; Wood v. Roach, 1 Yeates (Pa.) 177. Nor does the right exist against a bond fide indorsee of a bill of lading for value ; Dows V. Perrin, 16 N. Y. 825. See Summeril v. Elder, 1 Binn» 106 ; Eaton v. Cook, 32 Vt. 58. LICKBAEllOW V. MASON. 1111 Continuance of the right. — The right continues so long as the goods are in the possession of the carrier as such, and so long as they remain in any place of deposit connected with their transmission ; 2 Kent Com. 544-5 ; Buckley v. Stick- ney, 15 Wend. 137, 23 Wend. 611 ; White v. Mitchell, 38 Mich. 390. It was held in Sawj^er v. Joslin, 20 Vt. 172, that the right ceases whenever the goods, in pursuance of the original desti- nation given them by the consignor, have come into either the actual or constructive j)OSsession of the consignee ; Becker v. Hallgarten, 86 N. Y. 167. A delivery of the goods to forward- ing agents, employed by the vendee to remain with them until the vendee should send orders respecting their destination, was, in legal effect, a delivery to the vendee, the transitus complete, and the right to stop the goods was terminated. But if the goods, at the time they were delivered to the forwarding agents, were destined to a foreign port, under an assignment already made, and the goods were to be forwarded to their destination without any further orders from the vendee, the trmmtus was not ended when the goods came into the possession of the for- warding agents, but continued until the goods reached their final destination ; Biggs v. Barry, 2 Curtis 262 ; Cobeen v. Campbell, 30 Penn. 254. Goods were sold by marks and numbers, lying in the vendor's warehouse on six months' credit ; and it was a part of the con- sideration of the purchase that they might lie, rent free, in the warehouse, at the option of the vendee and for his benefit, till the vendor should want the room. Seld^ the delivery was com- plete, and the right of stoppage at an end ; Barrett v. Goddard, 3 Mason 107. See also Bradford v. Morbuy, 12 Ala. 520. The right of stopping goods shipped on the credit and at the risk of the consignee continues until they come into his actual possession at the end of the voyage, unless he shall have sold them previously hond fide, and indorsed the bills of lading to the purchaser ; Stubbs v. Lund, uhi supra ; Ilsley v. Stubbs, 9 Mass. 71-4, 16 Pick. 467; Arnold v. Delano, 4 Cush. 33, 8 Cranch 418 ; Grant v. Hill, 4 Gray 361 ; Rowly v. Bigelow, uhi supra. See Bolin v. Huffnagle, 1 Rawle (Pa.) 9 ; Castanola v. Missouri Pacific R. Co., 24 Fed. Rep. 267. The same rule, says Ch. J. Parsons, in Stubbs v. Lund, must govern, if the con- signee be the shipowner sed qucere. See Abbott on Shipping, 5 ed. 394, and Rand's note (^), 9 Mass. pp. 71-2, 13 Me. 93. 1112 i,I(K1;ai:i:<>\v v. mason. Goods slii[)pe(l oil l)()iure they reach their destination, and, hy taking actual pos- session of them, defeat the vendor's lien; Mi»hr i\ B. ♦S: .\. U. Co., 10() Mass. 72. Rut the intereejition must he in g««)d faith; Poole V. Houston, tVc., R. Co., 58 Tex. 134. See Brooke Iron Co. r. <)'P>ritii, 135 Mass. 447. If the vendee intercept the goods on their passage to him, and take possession as owner, the fnoisifiis is at an end; 2 Kent Com. 547; Jordan /•. .lames, 5 II. (Ohio) 8S; Wood r. Yeatmaii, 15 P.. M..ii. 27; Parker r. Mclver, 1 Desau. (S. C.) 274; (iilfonl r. Sinitli, 30 Vt. 48; Bluckinaii r. Pierce, 23 Cal. 508; At^uirre r. Piii iiielec, 22 Conn. 473. Hut if llie ^oods U* in u publir store, awaitiui,' the comj>letiou i»f the entry, the con- signor's ri<;ht to stop tluMu in transit ct)ntinues; Westrrn Trans. Co. V. Ilawley, 1 Daly (N. V.) 327. See Clapp v. Peck, 55 Iowa 270. If the transit is once at an end, it cannot commence again, l)ecauso the gooiLs are sent to a new destinatiiui ; Pattin- ger V. Ileckslier, 2 Cirant (Pa.) 309. Where tlie consignee agreed with the carrier to set the goods aside in its depot to Ixj sold, to pay })ast trni K. !{. r. Meador, 65 Ga. 705. .Vfter goods have l>een sold hy the vendee in good faith and hy llu- carrier delivered to his vendee, tlie original vendor's right of stoppage in (rdHMitu is gone. United States Wind Engine, »S:c., Co. v. Oliver, 1»> Xeb. «il2. Goods may be stopped in tranxitu after their arrival at the carrier's warehouse, and there awaiting payment of the freight; Symns v. Schotten, 35 Kan. 310: ll.uiliug Paper Co. v. Allen, 65 Wis. 576. By, and against whom, and how the right may be exercised is discussed in the following cases; Newhall v. Vargas, uhi supra: Seymour v. Newton, 105 Mass. 275; 5 Daly 476; Mul- len V. Pander, r^b N. Y. 325; Hays v. Monille, 14 Penn. 48; Gustine v. Phillips, 38 Mich. 674 ; ' ReynokLs v. B. & M. R. Co., 43 N. II. 324; Roche v. Donovan, 13 Kans. 251. A creditor of an insolvent vendee cannot, by paying the freight on the goods and attaching them, defeat the vendor's right to stop them in transitu ; Greve v. Dunham, 60 Iowa 108. When one through his agent sells goods to another, and they are shipped to the purchaser, the agent has no right to stop the goods in transitu, because his principal owes him for money advanced in the purchase of the gootls; Gwyn v. Richmond «& Danville R. Co., 85 N. C. 429. MASTER V. MILLER. TRINITY. — 3 GEO. 3, K. B. & CAM. SCACO. [reported 4 T. R. 320 and 2 hen. bl. 140.] An unautJiorized alteration of the date of a hill of exchange^ after acceptance, whereby the payment would he accelerated, avoids the instrument ; and no action can he afterwards hrought upon it, even by an innocent holder for a valuable considera- tion (a). [But see now the Bills of Exchange Act, 1882, s. 64, post in notis.'\ The first count in this declaration was in the usual form, by the indorsees of a bill of exchange against the acceptor; it stated that Peel and Co., on the 20th of March, 1788, drew a bill for 974Z. 10s. on the defendant, payable three months after ■date to Wilkinson and Cooke, who indorsed to the plaintiffs. The second count stated the bill to have been drawn on the 26th of March. There were also four other counts : for money paid, laid out, and expended ; money lent and advanced ; money had and received ; and on an account stated. The defendant j)leaded the general issue ; on the trial of which a special ver- dict was found. It stated that Peel and Co., on the 26th March, 1788, drew their bill on the defendant, payable three months after date to Wilkinson and Cooke, for 974?. 10s., "which said bill of ex- change, made by the said Peel and Co., as the same hath been altered, accepted, and written upon, as hereinafter mentioned, is now produced, and read in evidence to the said jurors, and is now expressed in the words and figures following; to (a) See Hntchins v. Scott, 2 M. & of the pei'son producing it was held W. 809, where an agreement whicli admissible in evidence for some pur- had been altered while in the custody poses. 1 1 If, MASTKK \ . MILl.KK. wit, '.Jiiuf -JOrcl, *.»T4/. lOx., Mtnrh,»t,i\ Miiich 20, 17H8, three months after date [Kiy to the order of Messi-s. Wilkiiwoii and Cooke, 1>T4/. l().y., received, as advised, Peel, Vales, and Co. To Mr. Cha. Miller, C. M. 23rd June, 1T«S.' That IVel and Co. delivered the said bill U) Wilkinson and Cooke, whieh the iK)rt such jiitl^mt'iits upon l)ill.s, will U'st iip|M?ar by refurrinj^ to ihu authoritiL's tlit'instlvL's. When a deed is jjleadeil, there mu.si lie a prot'ert in curiam («<), unless, a.s in It*'l v. lirookmnn {^f>)^ it be lost or destroyed by accident, which must liowever l>e stated in the [)leadin;^'s. Tlu! reast>n of which is, that anciently the deed was actually brouj^ht into court f«)r the purpose of ins{H;c- tion ; and if, as is said in 10 Co. 02, b, the judges f«»und that it liad l)een rust-d or interlined in any material part, they adjudged it to 1h! void. Now, as that wjis the reason why a deed Wiw rcipiired to Ik; [)leaded with a /'/^>/Vr^ aiul as it never was neccs- sarv to njak«' a pro/erf of a bill of exchange in plea, a ileed which had l)een rasid was held void, although the party himself who uignlv it had made the erasure ; which was ptrmitting a party tlot here had been made by the acceptor himself, he would still have been bound. In Keilw. lt>2, it is said that if A. be lM)und to 15. in 2U/. and IJ. rase out 10/. all the bond is void, although it is f()r the advantage of the obligor; and even where an alteration in a deed was made by the con- sent of both the jjartics, still it was helil to avoid it, 2 Rol. Abr. 29, letter l\, pi. 5 (Lord Kmi/ou observed that there had been decisions to the contrary since). Fraud could not be the [)rin- ciple on which those cases were determined:- whereas it is the only })rinci[)le on which the rule contended for can be hehl to extend to bills of exchange, but which is rebutted in the pres- ent case by the facts found in the special verdict. According to the same strictness, where a mere mistake was corrected in a deed, and not known by whom, it was held to avoid it, 2 Kol. Abr. 29, pi. 6 ; and it does not abate the force of the argument that the law is relaxed in these respects, even as to deeds, for (rt) [Not so now; C. L. P. Act, 1852, s. 55; St. Law Rev. Act, 1883, s. 6.] (6) 3 T. R. 151. MASTER V. MILLER. 1119 the question still remains, whether at any time bills of exchange were construed with the same rigour as deeds ? The principle upon which all these cases relative to deeds were founded was, that nothing could work any alteration in a deed, except an- other deed of equal authenticity; and as the party who had possession of the deed was Iwund to keep it securely, it might well be presumed that any material alteration even by a stran- ger was with his connivance, or at least through his culpable neo-lect. In many of the cases upon the alteration of deeds, the form of the issue has weighed with the court ; as in 1 Rol. Rep. 40, which is also cited in Pigot's Case, 11 Co. 27, and 3Iichael v. ScocJcwith, Cro. El. 120, in both which cases the alteration was after plea pleaded ; and on that ground the court held it was still to be considered as the deed of the party on no7i est factum. Now the form of the issue in actions upon deeds and those upon bills is very different ; in the one case, the issue simply is, whether it is the deed of the i)arty which goes to the time of the plea pleaded ? as appears from the case before cited, and from 5 Co. 119, b, and Dy. 59 ; but here the issue is, whether the defend- ant promised at the time of the acceptance, to pay the conteiits ? The form of the issue is upon his promise, arising by implication of law from the act of acceptance, which is found as a fact by the special verdict agreeable to the bill declared on in the second count: and in no instance, where an agreement is proved merely as evidence of a promise, is the party precluded from showing the truth of the case. Not only therefore the forms of pleading are different in the two cases, but the decisions which have been made upon deeds, from whence the rule contended for as to erasures and alterations is extracted, are altogether inai^plicable to bills. The reasons for such rigorous strictness in the one case, do not exist in the other. On the contrary, all the cases upon bills have proceeded upon the most liberal and equitable principles with respect to innocent holders for a valuable consideration. The case of 3Il7iet v. G-ihson (a) goes much farther than the present : for there this Court, and afterwards the House of Lords, held that it was competent to inquire into circumstances extraneous to the bill, in order to arrive at the truth of the transaction between the parties ; although such circumstances operated to establish a different contract from that which appeared upon the face (a) 3 T. R. 481, in B. R., and 1 H. Bl. r,G9, in Dom. Proc. llliO MASTKi: V. MILLKK. of tilt' bill itseU ; whcreus the uviclonte given in this ciise, und the facts found by the special verdict, are in onler to sh«»\v what the bill really was ; which it is competent for these par- ties to do a<^ainst whom no fraud can be imputed, if any exist. If tlic blot liiid fallen on the j>aper by nieie accidt-nt, it cannot be j)ittrii(lcd that it Would have avoided the bill, non constat upon this linding that it did not so hapj)en. ICven if felony were i-ommittcil by a third person, throu<;h whose hands the ])ill passed, althoiit^di that party c(»uld not recover tipon it himself, yet his crime shall not alYett an innocent party, to Avhom the bill is indorsed or delivered for a valuable consider- ation. In Mil/rr V. Jiact' (d), where a banknote lialt' to the plaintiff, it was held that he mili^Mtii»n.s wiMf in tluit form. This |triiiii|»l<« o( law whm ftmiulfd in suuml sense ; it wum ciileiihited to prevent fraud, and deter men from tampering with written seeuritiuH: and it would 1m' direetly repu^^iumt to the |K»li« y '"f sueh a law to permit the holder of a hill to attempt ii fraud of this kind with impunity ; which we made l)etween hills of exchan^^e and deeds, it shouhl rather l>e to enfon-e the rule with greater strictness as to tin- former : for it would Ik; strange that hecause they were more op«'n to fraud from the circum- stance of passing through fnany hands, the law should relax and open a wider door to it than in the case of deeds where fraud was not so likely to Ik' practised. The principle laid down in Pii/<>t'M (Utnf (//) is n<»t disputed ius applied to deeds. Hut the first answer attempted to Ik* j^iven is, that the rule as to deeds is nui s(t the question is, whether the hill given in evi- dence be in point of law the bill acce[)ted by the defendant? because the promise only arises by implication of law upon proof of the acceptance of the identical bill accepted, and given in evidence. Now neither of the counts in the declara- tion was proved by the facts found. For in the first count the bill is dated the 20th of March ; but as there is no evidence of the defendant's having accepted such a bill, of course the plaintiffs are not entitled to recover on that count. Neither (o) 11 Co. 27. MASTER V. MILLER. 112S can they recover on the second, because though it is found that he accepted a bill dated the 26th of March, as there stated, yet inasmuch as the bill stated to have been produced in evi- dence to the jury is dated the 20th, of course the evidence did not support the count. With respect to the cases cited of bills of exchange having been always construed by the most liberal principles, and particularly in the case of Mlnet v. Grihson^ the same answer may be given to all of them, which is, that so far from the original contracts having been attempted to be altered, all those actions were brought in order to enforce the observ- ance of them in their genuine meaning against the party who, in the latter case particularly, endeavoured by a trick to evade the contract : whereas here the contract has been substantially altered by the parties who endeavoured to enforce it; or at least by those whom they represent, and from whom they de- rive title. Then the case in Molloy^ of Price v. Shute, is chiefly relied on, by the plaintiffs ; to which several answers may be given. First, the authenticity of it may be questioned ; for it is not to be found in any reports, although there are several contemporaneous reporters of that period. In the next place, the bill, as originally drawn, was not altered upon the face of it ; and therefore, as against all other persons at least than the acceptor, it might still be enforced. But principally it does not appear but that the action was brought against the drawer, who, as the acceptor had not accepted it accorcUng to the tenor of the bill, was clearly liable ; as the payee was not bound to abide by the enlarged acceptance, but might consider it as no acceptance at all. Then if this bill be void for this fraud, no evidence could be given to prove its contents, as in the case of a deed lost ; because in that there is no fraud. But even if any other evidence might have been given, it is sufficient to say that in this case there was none. And as to the common counts, if the general principle of law contended for applies to bills of exchange, it will prevent the plaintiffs from recover- ing m any other shape. Besides which, it is not stated that the defendant has received any consideration ; upon which ground the case of Tatlock v. Harris was decided. In reply it was urged, that the issue was not whether the defendant had accepted this bill in the state in which it was shown to the jury, but whether he had promised to pay, in consequence of having accepted a bill dated the 26th March, lll'l MASIKl: \. Mll.l.Kl:. (liiiwn by? ifcr. ; ;iii(l tliosr lads lu'liitr louiul, llu- promise iicr- L's.sarily arises. It is said that the policy ()t' th»; hiw will extend the same rule to the avoidance of hills of exchanjife which have Ix'cM altered as to deeds ; Injcaiise there is even greater reason to guaid jigainst fraudulent alterations in the former than in the latter case. To which it may he answered that the foundation of tin- nilr fails in this ease; for no fraud is fouinl, and none can he picsuMicd: and it is admitten:i: \. Mll.l.KK. it. Hut it WHS tlitii' licltl liiiit the piimiplo exteuth-tl to otlu-r iiistiiuuL'iits us well as to dct'ds, iind that the law went an far us the polity. It is on the sumu reusouin^ that I have foriiietl my opinion in the present eiusu. The eiuse cited fri>ni Molloi/, indeed, at lirst made u different impression on my mind: hut on luokiiiir over it with ^aeat attention, I think it is n<>t applicahle to tliis ease. No alterution was there made t»n the bill itself; hut the party tck whiim it was directed, aeeepted it iis payahle at a different time, and afterwards the payee struck out the enlarged acceptance; and on tlic acceptor refusing to pay, it is said that un uction wus maintained on tlie hill. lUit it does not suy uguinst whom the uction was iirought ; and it could not have l)een brought against the uceeptor, whose uceeptunce wasstruik out by the party himself who l)rought the uction. Taking that cjise in the words of it, " thut the ulterutions did not f the bill itself wus ultered ; but (»n the person to whom the liill Wius tlirected refusing to accept the bill as it was originally drawn, the holder resorted to the drawer. Then it was contended that no fraud was iiitnuKMl in iliis le, on non asaumjmif, if at any time he has made a promise, notwithstanding u suljse- quent payment : but the (juestion is, whether or not the defend- ant promised in the form stated in the dcclarati(jn ? and the substance of that plea is, that according to that form he is not bound by law to pay. On the whole, therefore, I am of opinion that this falsification of the instrument has avoided it ; and that, whatever other remedy the plaintiffs may have, they cannot recover on this bill of exchange. Ashurstj J. — It seems admitted that, if this had been a deed, the alteration would have vitiated it. Now I cannot see any reason why the principle on which a deed would have been avoided should not extend to the case of a bill of exchange. All written contracts, whether by deed or not, are intended to be standing evidence against the parties entering into them. There is no magic in parchment or in wax ; and a bill of ex- change, though not a deed, is evidence of a contract as much MASTER V. MILLER. 1127 as a deed; and the principle to be extracted from the cases cited is, that any alteration avoids the contract. If indeed the plaintiffs, who are innocent holders of this bill, have been de- frauded of their money, they may recover it back in another form of action : but I think they cannot recover upon this instrument, which I consider to be a nullity. It is found by the verdict that the alteration was made while the bill was in possession of Wilkinson and Cooke ; and it certainly was for their advantage, because it accelerated the day of payment. Now, upon these facts, the jury would perhaps have been war- ranted in finding that the alteration was made by them : at all events, it was their business to preserve the bill without any alteration. If Wilkinson and Cooke had brought this action they clearly could not have recovered, because they must suffer for any alteration of the bill while it was in their cus- tody : then, if the objection would have prevailed in an action brought by them, it must also hold with regard to the plaintiffs who derive' title under them. For whenever a party takes a bill under such suspicious circumstances appearing on the face of it, it is his duty to inquire how the alteration was made ; he takes it at his risk, and must take it subject to the same objec- tion as lay against the party from whom he received it. Upon the whole, there seems to be no difference between deeds and bills of exchange in this respect in favour of the latter : but, on the contrary, if there be any difference, the objection ought to prevail with greater force in the latter than in the former ; for it is more particularl}^ necessary that bills of exchange, which are daily circulated from hand to hand, should be preserved with greater purity than deeds which do not pass in circulation. It would be extremely dangerous to permit the party to re- cover on a bill as it was originally drawn, after an attempt to commit a fraud, by accelerating the time of payment. For these reasons, therefore, I concur in opinion with my Lord. Bxller, J. — In a case circumstanced as the present is, in which it is apparent, as found, and has been proved beyond all doubt, that the bill of exchange in question was given for a full and valuable consideration, that the plaintiffs are honest and innocent holders of it, and that the defendant has the amount of the bill in his hands, it is astonishing to me that a jury of merchants should hesitate a moment in finding a verdict gen- erally for the plaintiffs, more especially as I understand it wa:; 1128 MASTKIC V. MlLLKIl. left to them by tlu- Chief Justice to read the bill as it un- doubtedly was drawn, and by that means to put an end to tlie (|Ut'stion at once. It was iii,ditly so left to the jury by his Lordship; for that was the furtherance of the justice of the case, and it tended to prevent cx[>ense, litit,Mtion and drlay, which are death to trade. That the defendant cannot be suf- fered to pocket the money for whiih this bill was drawn, or to enable the drawer to do so, but that sooner or later, provided a bankruptcy do not intervene, it must be paid, I presume no man will doubt. The drawer has received the value, tlie plain- tiffs have paid it, and the defendant has it in his hands. On this short statement, every one who hears me must anticipate me in saying tliat the defendant nnist pay it. Nay, if actual forgery had been conmiitted, the defendant could not be per- mitted to retain the money: he must not get 1>000/, by the crime of another; but, in such a case, I agree it would be dilhcult to sustain the present or any action for the money till something further had happened than has yet l)een done. The law, i)roceeding on i)rineiples of public policy, has wisely said — That where a case amounts to felony, you shall not recover against the felon in a civil action; but that rule does not ai>- pear by any printed authority to have been extended lieyond actions of trespass or tort, in which it is said that the trespass is merged in the felony. That is a rule of law calculated to bring offenders to justice. But whether that rule extend to any case after the offender is brought to justice, or whether at any time it may be resorted to in an action between persons guilty of no crime, are (questions upon which I have formed no opinion, because this case does not require it. Upon this special verdict there is no foundation for saying that any one has been guilty of forgery, nor even of a fraud, as it strikes my mind. Fraud or felony is not to be presumed ; and, unless it be found by the jurj^ the Court cannot imply it. Minet v. Gibson is a most decisive authority for that proposition, if any be wanted, and I do not think there is any foundation for the distinction at- tempted to be taken between that case and the present. It has been contended that the party there recovered, because the nature of the obligation was not altered : but the determina- tion did not proceed entirely on that ground, but on this, that, according to the true intent and meaning of the parties, the bill was intended to be made })iyal)le to bearer: so here the MASTEll V. MILLER. 1129 plaintiffs do not attempt to enforce the contract according to the terms of it, but accorcUng to that form by Avhich the de- fendant originally consented to be bound, as stated in the sec- ond count. The special verdict finds that Peel and Co., on the 26th of March, 1788, drew a bill of exchange on the defendant for 947?. 10s., payable to Wilkinson and Co. : which bill as the same has been altered, accepted, and written upon, is set out in Jimc verba. Upon iho, fae-sim'de copy of the bill set out in the ver- dict, there appears to be a blot over the date : and the jury have thought fit to read it as it now stands, the 20th. I must con- fess I should never have read it so ; for seeing that there was something above the figure 0, that is the last reading which I should have given to it. I should have said on the face of the bill, this must have been either a 6 or an 8 ; it could not have been 8, because the is as high as the 2, and therefore it must be a 6 : but the jury have found no difficulty in saying it was a 6 ; and I will examine presently whether there be any objection to let it remain as a 6. The verdict further finds that the defendant, before any alteration of the bill, accepted it; and Wilkinson and Co. indorsed it to the plaintiffs, who paid a valuable consideration for it. Then it was stated, that whilst the bill was in the hands of Wilkinson and Cooke, the date, without the authority of the defendant, was altered by persons unknown from the 26th to the 20th of March. They further find that the words " 23rd of June " were inserted at the top of the bill, to mark that the bill would then become due ; and that the alteration and the blot were on the bill when it was de- livered to the plaintiffs. This is the full substance of the spe- cial verdict ; and there is neither forgery, felony, nor fraud, found or supposed by the jury ; we therefore can neither in- tend nor infer it. The verdict amounts only to saying there is a blot on the bill, but how it came there we don't know ; and we beg to ask the Court whether the circumstance of a blot being on the bill which we cannot account for makes the bill void. Provided I have accurately stated the question, surely such a verdict is without precedent. Suppose a child had torn out a bit of the bill on which the top of the 6 is written, is the holder of the bill to loose his 974?. ? or is the defendant to get 974?. by such an accident? But to decide whether I have accurately stated the question in the cause, it is necessary to examine the words of the special verdict minutely, and by lloO MA.STKK V. MILLKK. (U' was that art of the time whilst the hill was in tiie possession of Wilkinson and Cooke/ No. It is consistent with the tind- inpr, that tin- plaintilYs, who are found to Ik* /»"«////i Miircli ;igiiiii. Ill an action brought on thi.s bill, the (luestion was whithtT tlicse alterutions ilid not destroy tiie bill; anil inlid by l^onl Chief Justice Pemherton^ that tjjey did not. Now, on reading tliis case, I cannot consider it in any other liglit than as an action brought against the ac- ceptor; for it oidy slates what passed l)etween those parties. Here then is a rule which has picvailcd in the coinniercial world for 110 years : it stands uncontradicted and uninipcached : it was decided by great authority ; and as, I take it, on delilx.'r- ation. i^'or when it is said to have been in H. K., that must either have Ikhij in this court, or on a case saved by Chief Justice Piinltcrton for ids own opinion : which was a common way of proceeding in those days. In that case the term "alter- ation " is used, and therefore we need not be frightened or alarmed at that word. The effect of the alteration was to accelerate the payment; so it is here. I5iit in one respect that case goes beyond the i)resent; for there the alteration was made by the plaintiff liimself : here it was not. It is true, in that ease, when the plainlitV lOiind he eouM not receive the money on the 1st of January, he altered it back to the 1st of March; but if the lirst alteration vitiated the bill, no sukse- quent alteration could set it up against the acceptor without his consent. Here the {ilaintiffs have not re-altered the bill; hut they have acted a more honest part; they have left the bill as it was to speak for itself; but they have treated it as a bill of the 26th of Mareh ; they havt- ]>ioved that it was a bill of the 20th of March; they demanded ])aymcnt according to that date : and the jury have found all these facts to be true. And it is material to consider what was the issue joined be- tween the parties ; for there is a great deal of difference be- tween the plea of non est factum and the present: here the question is, whether the drawer made such a bill, and whether the defendant accepted it ; and this is found by the jury. Then the case of Price v. Shute, in sense and substance, is a direct authority in point with the present ; though it vary in a minute and immaterial circumstance. The plaintiffs in treating the bill, and making a demand as they have done, seem to have followed the sober advice and directions given by Beawes in pi. 190; where he says, "he that is possessor of a bill which only says ' pay,' without mentioning the time when, or that is without a date, or not clearly and legibly written, payable MASTER V, MILLER. 1133 some time after date, &c., so that the certam precise time of payment cannot be calculated or known, must be very circum- spect, and demand the money whenever there is any probable appearance of the time being completed that was intended for its payment .: or that he can demonstrate any circumstance that may determine it, or make it likely wlien it shall be paid." It is impossible that this writer could have supposed that the bill was rendered void by any blot, obliteration, or erasure : on the contrary, he tells you that it must be demanded in time, and that you may make out by circumstances or other evidence when it was, or was likely to be, payable. That has been made out by evidence in the present case. Upon this head I shall only add one authority more, which is Carth. 460, where a bill was accepted after a day of payment was elapsed. It was objected that it was impossible in such a case for the defendant to pay according to the tenor of the bill, and there- fore the declaration was bad ; but the Court held it good, and said the effect of the bill was the payment of the money, and not the day of payment. So here the defendant having ac- cepted this bill, whatever may be the construction as to the date, must pay the money. I hold that in this case there is no fraud either express or implied; and that, as the plaintiffs have proved that they gave a valuable consideration for the bill, and that it was indorsed to them by those through whose hands it passed, their case is open to no objection whatever. But I will suppose for a moment, though the case do not war- rant it, that Wilkinson and Cooke did mean a fraud; still I am of opinion that would not affect the case between the plaintiffs and the defendant. It is a common saying in our law- books, that fraud vitiates everytliing. I do not quarrel with the phrase, or mean in the smallest degree to impeach the various cases which have been founded on the proof of fraud. But still we must recollect that the principle which I have mentioned is always applied ad hominem. He who is guilty of a fraud shall never be permitted to avail himself of it ; and if a contract founded in fraud be questioned between the par- ties to that contract, I agree, that, as against the person who has committed the fraud, and who endeavours to avail himself of it, the contract shall be considered as null and void. But there is no case in which a fraud intended by one man shall overturn a fair and bond fide contract between two others. llo4 MASTKl: \. MILI.KI;. Even as Ix^twcen the parties themselves we niiisi mn lui^'i-i tlie lij^uiativc laMgiiaL,a' of Lord ChiL-f .Iiistice Wilmitt, who said that "tlie statute hiw is like a tyrant: where hf conius he makos all voie as- signed ; but this Court will take notice of a trust, and see who is beneficially interested." Hut admitting that on account of this «iuaint maxim there may still l)e some cases in which an action cannot be maintained I)y an assignee of a chose in action in his own name, it remains to 1h' considered, v/hether that ob- jection ever did iiold or ever can hold in the case of a mercan- tile instrument or transaction. 'Hu- law-nu'ichant is a system of eipiity, founded on the rules of etpiity, and govi'rned in all its parts by plain justice and good faith. In Pdlan v. Van Mierop^ Lord Mansfield said, if a man agree to do what if finally executed would make him liable, as in a court of ecjuity, s(^, in mercantile transactions, the law looks on the act as done. I can find no instance in which the f)bjection has j)revailed in a mercantile case; and in the two instances most universally in use, it undoubtedly iloes not hold; that is, in the cases of bills of exchange and policies of insurance. The first is the present case; and bills are assignable by the custom of mer- chants; so in the case of policies of insurance ; till tiie late act was made, re(|uiring that the name of the person interested should be inserted in the policy, the constant course was to make the policy in the name of the broker ; and yet the owner of the goods maintained an action upon it. Circulation and the transfer of property are the life and soul of trade, and must not be checked in any instance. There is no reason for con- fining the power of assignment to the two instruments which I have mentioned ; and I will show you other cases in which the Court have allowed it : 1st, In Fenner v. Mears, where the de- fendant, a captain of an East Indiaman, borrowed lOOOZ. of Cox, and gave two Respondentia bonds, and signed an in- (a) Ante, 1 T. K. G19. MASTER V. MILLER. 1139 dorsement on the back of them, acknowledging that, in case Cox chose to assign the bonds, he held himself bound to pay them to the assignees. Cox assigned them to the plain- tiff, who was allowed to recover the amount of them in an action for money had and received. De G-rey, Chief Justice, in disposing of the motion for a new trial, said (a), Responden- tia bonds have been found essentially necessary for carrying on the India trade ; but it would clog these securities, and be productive of great inconvenience, if they were obliged to remain in the hands of the first obligee. This contract is therefore devised to operate upon subsequent assignments, and amounts to a declaration, that upon such assignment the money which I have borrowed shall no longer be the money of A., but of B., his substitute. The plaintiff is certainly entitled to the money in conscience, and, therefore, I think, entitled also at law : for the defendant has promised to pay any person who is entitled to the money. So in the present case, I say the plain- tiffs are in conscience entitled to the money, and the defend- ant has promised to pay, or, which is the same thing, is by law bound to pay the money to any person who is entitled. The very nature and foundation of an action for money had and received is, that the plaintiff is in conscience entitled to the money ; and on that ground it has been repeatedly said to be a bill in equity. We all remember the sound and manly opin- ion given by my Lord Chief Justice here in the beginning of the last term on a motion made by Mr. Bearcroft for a new trial, wherein he said, if he found justice and honesty on the side of the plaintiff here, he would never turn him round, in order to give him the chance of getting justice elsewhere. — 2ndly, Clarke v. Adaii\ sittings after Easter, 4 Geo. 3 : Debray, an officer, drew a bill on the agent of a regiment payable out of the first money which should become due to him on account of arrears or non-effective money. Adair did not accept the bill, but marked it in his book, and promised to pay when effects came to hand. Debray died before the bill was paid ; and the administratrix brought an action against Adair for money had and received. It was allowed by all parties that this was not a bill within the custom of merchants : but Lord Mansfield said that it is an assignment for valuable considera- tion, with notice to the agent ; and he is bound to pay it. He (rt) 2 Bl. Rep. 1272. 1140 MASTKi: V. MILLKK. said la- ivinoinhertMl a easo in Chaiieery, wlieiv an ajjent under the like uiiounistances had paitl the money to tlie administrator, and was deereed notwithstanding^ to pay to the pei-Hon in whuMU favour tlie bill was drawn. — 3nlly, In hrael v. Dowfltm, ('. H. East. 21» a. 3 (a), A. l>ein«; indebted to H., ;ind B. indebted to C, H. pave an order to A. to pay ('. the money due from A. to H. ; whereu[»on ('. lent H. a further sum, and tlie onh-r wjuj aceepted l)V A. < >n the refusal of A. to coinply witli the order, it was held that (". mii,dit maintain an actitui for money had and reeeived against him. And Mr. J. I/xith expressly saitl lie thou<,dit in mereantile transaetions of this .sort sueh an under- taking may be eonstrued to make a man liable for money had and received. This opinion was eited with approUition in the House of Lords in (fif>»on v. M'met. Lastly, I come to the ease of Tatlock v. Iftrrin, (3 T. K. 1S2,) in which Lord Kent/on in deliveriui^ the judLjment of the court, said it "was an aj)pro- priation of so nni
  • eral than our predecessors, and even we ourselves, have been on former occa- sions. Let us recollect, as Loril Chief .lustice Wilmot said in the case I have alluded to, that not only f>oni juiUcin ext mnpli- are jurisdictionem, but ampUare juatitiam : and that the common law of the land is the birthright of the subject, under which we are bound to administer him justice, without sending him to his writ of subpoena, if he can make that justice appear. The jus- tice, equity, and good conscience of the case of these plaintiffs can admit of no question; neither can it be doubted but that the defendant has got the money which the plaintiffs ought to receive. For these reasons, I am of opinion that the plaintiffs are entitled to judgment on either of these three counts in the declaration, namely, on the count on the bill of exchange, stating the date to be the 26th; or on the count for money paid ; or on the count for money had and reeeived. (a) 1 II. Bl. 242. MASTER V. MILLER. H^l arose, J. -The only question in this case is, whether there appears on the face of this special verdict a right of action in the plaintiffs on any of the counts. The first count is on a bill of exchange dated the 20th of March; but, there being no proof of any bill of that date, there is clearly an end of that count. The second is on a bill dated the 26th of March; but the de- fendant objects to the plaintiffs' recovering on this count also, because the bill having been altered while it was in the hands of W ilkmson and Cooke, it is not the same bill as that which was accepted; and that is the true and only question in the cause. My idea is, that the plaintiffs' right of action, as stated in this count, cannot be maintained at common law, but is sup- por ed only on the custom of merchants, which permits these particular chases vn action to be transferred from one person to another. The plaintiffs, as indorsees, in order to recover on this bill, must prove the acceptance by the defendant, the indorse- ment from Wilkinson and Cooke to them, and that this was the bill which was presented when it became due. No^^- has all this been proved? The bill was drawn on the 26th of .March payable at three months' date ; the defendant's engagement by his acceptance was, that it should be paid when it became due according to that date ; but afterwards the date was altered ; the' date I consider as a very material part of the bill, and by the alteration the time of payment is accelerated several days- according to that alteration, the payment was demanded on L 23rd of June, which shows that the plaintiffs considered it as a bill di^wn the 20th of March ; then the bill which was produced m evidence to the jury was not the same bill which was drawn by Feel and Co., and accepted by the defendant ; and here the cases which were cited at the bar apply. Pigot^, i, the leading case; from that I collect, that when a deed is erased, whereb? 1 becomes void, the obligor may plead non est factum, and give the matter in evidence, because at the time of plea pleaded it was not hisdeed; and, 2ndly, that when a deed is altered in a material pomt by himself, or even by a stranger, the deed there- by becomes void. Now the effect of that determinarion is, that a materia alteration in a deed causes it no longer to be the same deed. Such is the law respecting deeds (a) : but it is said 9^ ml'of ^tw!f' '"' ?"' '' ''"''■ '' ''' '''' '""''^ '' "'^--^"'-^ "* -«^--^-«^ profet of a leer T /--/-'-""^ Po^n^s or places, and that the m<)es in P^ofeu of a deed is stated to be that ancient time did judge uvon their view nil' MASTKi: V. MiLLKU. thiit tli;it l;iu' does not fXteiiil to the iMsu of u l»ill •>{ eXih.iu^e ; whether il do or not must depend on tlie |niiui|»le on which this hiw is founded. The policy of the law luw been alicjuly stilted, nunielV') thiitii man shilU not take the chance of commit- tint; a tVaud, and, when that fiaur. LeyfieWs Case, 10 Co. 92, b, it is said, " in great and notorious extremities, as by casualties of fire, that all his evidences were burnt in his house, there, if that should appear to the judges, they may, in favour of him Avho has so great a loss by fire, suffer him upon the general issue to prove the deed in evidence to the jury by witnesses:" the casualty by fire is only put as an instance, for the principle is applicable to all cases of accident. Thus also in Read v. Brookman, 3 Term Rep. B. R. 151, a deed was pleaded as being lost by time and accident, without a profert : and the present case is within the reason and spirit of that determination. Bearcroft, contra. — On principles of law and sound policy, the plaintiff ought not to recover. The reason of the rule, that a material alteration shall vitiate a deed, is applicable to all written instruments, and particularly to bills of exchange, which are of universal use in the transactions of mankind. And here there was a material alteration in the bill inasmuch as the time of payment was accelerated. As to the case of Price V. Shute, it is but loosely stated, and that not in any book of reports ; and it does not appear against whom the action was brought. Lord Chief Justice Eyre. — I cannot bring myself to enter- tain any doubt on this case ; and if the rest of the court are of the same opinion it is needless to put the parties to the delay and expense of a second argument. When it is admitted that the alteration of a deed would vitiate it, the point seems to me to be concluded ; for by the custom of merchants duty arises on bills of exchange from the operation of law, in the same manner as a duty is created on a deed b}^ the act of the parties. With respect to the argument from the negotiability of bills of ex- change and their passing through a variety of hands, the infer- 1 1 \h MASTKH V. MILLKU. ence is directly the reverse of tliat whiclj was drawn hy the counsel for the plaintifY: tiiere are no witnesses to a hill «>f ex- change, as there are to a deed; a hill is more easily altered than a deed; if therefore cnuits of justice weie not U) insist on V)ills heinj^ strictly and faithfully kept, alterations in them highly dangerous might take place, such as the addition of a cipher in a hill for 1(M>/., hy which the sum might l»e changed to lOUU/., and the holder having failed in attempting to rec«»ver the 1000/., might afterwards take his chance of recovering the 100/., as the bill originally stood. lint such a proceeding would he intolerahle. It was said in the argument that the defendant C(udd not dispute the finding of the jury, that they found he acce])ti'd tlic hill, and therefore that the suhstance of the issue was proved against him. Hut the meaning of the plea of non ossiiiii/isif is, not that he did not accept the l»ill, hut that there was no duty hinding on him at the time of pica pleaded (n). There are many ways hy whicii the obligation of the acci'ptanco might he discharged; for instance, hy payment. And it was certainly competent to him to show, that the duty which arises primd facie from the acceptance of a hill, wa.s disi'harged in the present case by the bill itself being vitiated by the alteration which was made. Lord Chief Baron Mnnlonnld. — I see no distinction as to the point in question between deeds and bills of exchange : and I entirely concur with my Lonl Chief .lustice, in thinking there would be more dangerous consiMjuences follow from permitting alterations to be made on bills than on deeds. The other Judges declared themselves of the same opinion. Jud I.. .1. ('. r. 177, wluTi- an atldltion was mncio of the rate of fxclianj;!' nt wlilcli n 1)111 drawn on I'lirln, was t<> Im- palil; nnil Himrhmmt v. JliKht, L. K. S Kx. 171 ; 42 L. J. Kx. ll.l, wlit-ri- tin- ilatt- of a lilll payable four iniiiillis aftiT dat«* was altered from llu- 1-il to the 11th of OctolH-r, and the alteration was held nniterial notwithstanding; observatlonH to the e«intnir}', whlfh an- attributed to I'arke, B., In Parnj v. .\iihi>liion, 13 M. & W. 778; Vdiiif V. Lmrthtr, 1 Kx. 1). 17«. 4.'i L. J. Kx. 'im, where the alteration of the date of a <-he<|Ue wa.«* helil material; and Sttffi-tl v. Hunk i>f Emjhiml, I) t^. B. I). ;■>.■».">, where the alteration of the nund>er on a Bank of Knulanil note wa.s lield material by the ('. A., overrulini; the derision of Lord Colerlilce. ('. J. In this ease the Conrt pro\ ini; of i'niilirrU v. J'arki-r, Ir. \{. :\ K<| .ir.», 17 W. ]{. '.'■'»•■». overruled the eonteiitlon that the alteration to be material withiti the ride must be an alteration of some part of the contraet contained in the altered instrument, and held that the rule would apply even to an instrument not containing a eontrart at all.] When an ncri'jttnncf Is altered by Inserting a place of payment, without addiiiir the w-s. 2 ('")], having rendere«l the Bb»)ve weirds necessary in ordi-r to a special ac«'eptance. Il'»///#'r v. Cuhhtj, 2 C i M. l.M, [decided Upon st. 1 & 2 (1. 4. repealed, but re-enacte, IH L. T. N. S. 'MC, the «lcfcutiant had given his acceptance in l)lank to the plaintifl". which the latter filled up " pay- able at 14;'). Euston Koad ; " it was held tluit this was etiuivalent to a mate- rial alteration, and discharrit ; ('unhnll v. .\/itrtin, 'J Kast, I'M); Kinnersliy V. .V(/.s/i, 1 Stark. 3.'>2. If a l)ill or note exhiliit tlie a|)pearance of alteration. It lies iipf)n the holder to aecount for it. Ilfinnan v. IHrkemton, ."> Bin*;- l**!!; Hinhop v. ('fiaiitbre, 1 M. & W. llC; Kni'jht v. Clements, 8 A. & E. 213; ( Nf,,ri/ mistake does not attect the liability of the i)arfi»'s whose siijiintures are cancelled. liaprr v. liirkhrrk-, \'t East, 17; Wilkiitson v. Jnhn- ao?i, 2 B. & C. 428; Xovelli v. liossi, 2 B. & Ad. 7<;.-. ; Accord. Wanrirk v. Jinijers, 5 M. & G. 3r)2, fi Scott, N. U. 1, S. C, where an unsuccessful attempt was made to tl.x a banker who had uiade such a canccllaticm, with the amount of the bill. [See as to mistake annullin:; the cancellation of a deed, Perrott V. Perrott, 14 East, 423. " If the absence of intention to cancel be clearly shown, tlie thing is not cancelled." Bambrrr/er v. The Commercial, dr. Co., 15 C. B. 693, per Maule, J.] Although for a long time Pir/ot's Case, 11 Uep. 2G a, and Master v. Miller, were the authorities always referred to upon ((uestions of alteration, and although such questions seldom arose except in actions upon deeds, bills of exchange, and promissory notes, yet the doctrine of those two cases has been extended to other Avritten instruments. In Powell V. Divett, 15 East, 2'J, the Court of Queen's Bench applied it to the case of bought and sold notes, and held that a vendor who, after the bought and sold notes had been exchanged, prevailed on the broker, without the consent of the vendee, to add a term to the bought note for his the ven- dor's benefit, thereby lost all right against the vendee. The same law was acted upon in Mollett v. Wackerbarth, 5 C. B. 181. And in Davidson v. Cooper, 11 M. & W. 7S>5, where to a count in assumpsit on a guaranty, the defendant pleaded that after it was given to the plaintiff, it was altered in a material particular by some person to the defendant unknown, without his consent, by affixing a seal so as to make it appear to be the deed MASTEK V. 3IILLER. 1151 of the defendant, and upon a motion of judgment non abstante veredicto, the Court of Exchequer reviewed and expounded the Taw upon tlie general subject of alteration, and holding the case to fall within the doctrine of Pigot's Case, gave judgment for the defendant. And that judgment was affirmed by the Court of Exchequer Chamber, "after much doubt," 13 M. &.W. 343. The doubt at first entertained by the Court of Exchequer Chamber may however be considered as fortifying their ultimate decision, which was founded on the principle, " that a party ivho has the custody of an instrument made for his bene- fit, is bound to presen-e it in its original state." "It is," said Lord Deuman, in delivering the judgment, " highly important for preserving the purity of legal instruments, that this principle should be borne in mind, and the rule adhered to. The party who may suffer has no right to complain, since there cannot be any alteration except through fraud or laches on his part." \_Davidson v. Cooper, was acted upon in Croockeicit v. Fletcher, 1 H. & N. 893, in which case the instrument vitiated by alteration was a charter-party (see also Fazakerly v. McKnight, 6 E. & B. 795), and in Pattinson v. Luc/dey, L. R. 10 Exch. 330; 44 L. J. Ex. 180, in which case it was a building contract.] An instrument which, by reason of an alteration, becomes invalid as the foundation of an action, is not hoAvever thereby necessarily avoided for all purposes. For instance, the alteration of a deed of conveyance, though it may deprive the covenantee of all right to sue upon the covenants therein con- tained, does not affect the ownership of the property conveyed ; and the deed may, it seems, still be adduced in evidence, to show what was originally con- veyed thereby. West v. Steward, 14 M. & W. 47. In such cases, to use the words of Lord Abinger, in delivering the judgment of the Court, in Davidson v. Cooper, 11 M. & W. 800, " the deed is produced merely as a proof of some right or title created by or resulting from its hav- ing been executed" [See Green v. Attenborough, Cam. Scac. 3 H. & C. 468; where this distinction was adopted, and also per Lord Esher, M. R., in Suffell V. Bank of England, 9 Q. B. D. at p. 568.] Also, in the Earl of Falmouth v. Roberts, 9 M. & W. 469, the rule as to the destructive effect of altering a written instrument was stated by Parke, B., to apply where the obligation sought to be enforced is by reason of the instru- ment. That was an action by landlord against tenant for mismanagement of a farm, and an instrument purporting to be a written agreement for the let- ting of the farm Avith stipulations as to the mode of tillage, though exhib- iting an erasure and interlineation of the term of years not satisfactorily accounted for, was admitted as evidence of the terms upon which the defend- ant (who had become tenant from year to year under a contract, implied from the fact of occupation, to abide by all the terms of the written agreement applicable to a tenancy from year to year) held the premises. In that case the instrument given in evidence does not appear to have operated specifically as an agreement upon the terms of the existing tenancy ; it did not contain the contract which the plaintifl' sought to enforce ; it was only part of the evidence to prove that such a contract existed, though not in writing; as such evidence, only that part of the written instrument which stated the mode of tillage was material, and that part had not been altered. It was like the printed paper in Lord Bolton v. Tomlin, 5 A. & E. 856, 1 N. & P. 247, S. C, with the additional circumstance that it was identified by the tenant's signature. In Gould V. Coombs, 1 C. B., 543, also, a promissory note, assumed to have been avoided as a contract by adding the name of a maker, was yet admitted lir)2 MASTEU V. MILLKK. Ill (vhlence together \vith iiii 1 •» l' " f<>r the aiiioiiiit s;lven wlilUt tlie note was vtilld, to sustain n count upon tin uteount stutctl. In Suttnn v. I'lmmeM, 7 H. & ('. 41)>, an uttereil promissory note was admitted In evidenee to hIiovv tlie tt-nns of iluposit of money f»)r wideli it had l)een given. In 1 hi- Aijri- rnltiirnl Iiisiinincf C'omjKimj v. Fitzij>rnlil, 1»! (^. H. 4;H', tlie deetl of st-ttlcment of the eomi)any was admitte, Cam. Scae. ; AVy/io/./.y v. Hull, 28 L. .1. Kxch. 2.'>7; Citldinll v. I'nrkrr, Ir. Uep. :i K.|. .'.l'.>, 17 W. H. '.•:.:.. The cancellath)n of a deed of lease with the mutual c(>nsent of the lessor and lessee, does not defeat the rlglit of the former to recover the rent In an action of del)t on the demise, Lnrd Ward v. Lumlri/, 5 II. & N. «7, and in such action tlie cancelled instrument is admissible in evidence for the plaintilf on tlie issue joined on u plea of non-demisit. Snmr v. Saim-, lb. <'..'.t; ; 2'.> L. J. Kxeli. :V22.] Ill i>lt;uliiig an alteration the defendant [was bound before the passing of tlie .ludicatiire .Vets] to show that it was in writing, I/ardfii v. Cliftntt, 1 Q. B. r)L'2 ; tliat it was made after his contract was coini»lete (as, for Instance, in the case of the acceptor of a bill, by acceptance^, LnmjUin v. /AtzurKs, r> M. & W. •)•_".); and, either that It was made without his consent, or that it was of such a character as to ri'iuler a new stamp necessary, ami made uniler cir- cumstances in which a new stamp could not legally be alllxed; see Brmlleij v. n^n-dsli'ii, 14 M. & W. 873, 3 Dowl. & L. 47(;, S. (,'. [and also. perha|)s, that the alteration was made when the instrument was in the plaintiff's custody, though made by a stranger. Davidson v. Cooprr. 1:$ M. & W. 343; Patd'iifion v. T.nrkhii. L. R. 10 Ex. 330, 44 L. J. Ex. 180. As to when a defence under the Stamp Acts was available by plea, see Lnznrua v. Coirif, 3 (.}. B. 4.">;t ; Mun: v. luiinj, 23 W. 11. 89 ; and also the last uamed case as to the cancellation of stamps on foreign bills of exchange.] 1. General rule. — The rule of law in the United States is, that the material alteration of a written contract, made l)v a party claiming under it, or by his privity, avoids it as to him, as against parties not consenting thereto. The courts of the MASTER V. MILLER. llo3 several states have differed widely in the application of this universally accepted principle to individual cases, and in this note an endeavor will be made to classify the conflicting au- thorities, with special reference to the more recent decisions. 2. Intent. — If an alteration be immaterial, the tendency of the later decisions seems to be that the instrument is not avoided thereby, although there be fraudulent intent ; Moye v. Herndon, 30 Miss. 110 ; Robinson v. Phcenix Bank, 25 la. 430 ; Fuller V. Green, 64 Wis. 159 (1885). Many decisions and dicta, however, are to the effect that a fraudulent immaterial alteration vitiates a written contract ; Adams v. Frye, 3 Met. 103; Ames v. Colburn, 11 Gray 390; Bliss v. Mclntyr, 18 Yerm. 466; Keen v. Monroe, 75 Va. 424 (1881); Milbery v. Storer, 75 Me. 69 (1883). In CommonAvealth v. Emigrant In- dustrial Bank, 98 Mass. 12, while admitting this general doc- trine, the court declined to apply it to negotiable bonds, in the hands of a land fide purchaser for value, which had been pre- viously fraudulently altered in an immaterial part. On the other hand, the decisions are almost unanimously agreed that a material alteration, though innocently made, avoids the in- strument, the only question being whether as a matter of law the alteration be material ; Taylor v. Taylor, 12 Lea (Tenn.) 714 (1883). See, also, language of Sharswood, C. J., in Craig- head V. McLoney, 99 Pa. St. 211 (1881). But see infra as to restoration of altered notes. 3. Immaterial alterations made by party claiming under instru- ment. — The old doctrine laid down in Bigot's case (11 Rep. 26) that an immaterial alteration avoids an instrument, if made by a party claiming under it, has never received much favor in this country ; Hatch v. Hatch, 9 Mass. 307 ; Chessman v. Whitte- more, 23 Pick. 231 ; NichoUs v. Johnson, 10 Conn. 192 ; Hale v. Russ, 1 Me. 334 ; Dunn v. Clements, 7 Jones (X. C.) L. 58 ; Burnham v. Ayer, 35 X. H. 351 ; Robertson v. Hay, 91 Pa. St. 242 (1879). But in some of the earlier cases the rigorous rule of Pigot's case was approved as to immaterial alterations in deeds ; Morris's Lessee v. Vanderen, 1 Dall. 64 ; Smith v. Weld, 2 Penn. 54 ; Malin v. Malin, 1 Wend. 625 ; Van Brunt v. Van Brunt, 3 Edw. Ch. 14. See, also, dicta in Hunt v. Adams, 6 Mass. 519. Recently in England the old rule has been severely denounced, and the court refused to apply it to negotiable paper; Aldous V. Cornwell, L. R. 3 Q. B. 573 (1868). lir.4 MASTKU V. MILMCK. -1. Spoliation. — AiiotluT (liMtriiii' iuiiiouiucil in Pi<^n»t*s case, tluit a inatfiial altiiatioii, made l»y a stiaiij^er, avoids i\w in- strument, has never been introduced into the jurisprudence of tliis country ; Rees v. Overlxiugh, (3 Cow. 74t> ; Piei-sol v. (Jrimes, aO Ind. 12!>; Lul)l)crin) ; I>''im r. Drum, 1:5:5 Ma.s.s. rm (ISHii): Moore v. Ivers, 83 Mo. 2'.i (1HH;3); Condict r. Fh.wcr, ]()•; 111. lOo (1H83); Pry i-. Pry, 109 111. 4G0 (1884); Cliurcli V. Kowle, 142 Mass. 12 (188«;). And even in Kn<,dand, it' the spoliation takes place while the instrument is (uit ot" the custody of tlie pLiintiff, it seems that his rifjhts are not im- l)aired thereby; 2 Taylor's Evidence, i^ 1S20 (8th i-ditiort); Dav- idson I'. Cooper, 11 .M. *I^ W. TTS. The burden of proof is upon the holder to show that thi- alleiation was made by a stranger; Waring ,.. Smytli, 2 Harb. Ch. ll'.t; Lee r. Alexanch-r, '.» H. Mon. 2;'); Eckert r. Louis, S4 Ind. W (1.S82). The instrument must l)e del hired upon in its original shape; I'nion National Hank /•. Koberts, 4;") Wis. 373 (1878). Most of the recent decisions on this branch of the subject have been witli reference to the (question who is to Ik.* deemed a stranger, and there is some conflict among the authorities. In Brooks V. Allen, Cr2 Ind. 401 (1878), the court say that unless an agent is authorized by his principal to make an alteration, the instrument altered by him is not avoided. In Nickerson v. Sweet, 13') Mass. 514 (1883), it was decided that an unauthor- ized alteration, made by a general agent, without fraudulent intent, and of such a nature that no injury could result there- from, might be reformed in equity. See, also, \'an Brunt v. Eofi', 35 Barb. 501. In Hunt r. Gray, 35 N. J. Law 227 (1871), it was held that an alteration made by an agent intrusted with a note for the purpose of getting it discounted, was a mere si)oliation. In Bigelow v. Stil})hen, 35 Verm. 521, an agent authorized to sell the })lainlifY"s goods and take therefor notes payable to the plaintiff, altered a note so received without authority, and it was adjudged to be the act of a stranger. To like effect was Laugenberger r. Kroeger, 48 Cal. 147 (1874). But in Eckert v. Louis, 84 Ind. 99 (1882), it was held that a material alteration, made by an agent of the payee before delivery to him, avoided the note. And to like effect was Lunt r. Silver, 5 Mo. App. 186 (1878). Here the agent added his own name as maker before delivery to the payee, and the note MASTER V. MILLER. 1155 was held to be avoided. See, also, the language of the court in Marcy v. Dunlap, 5 Lans. 365 (1871), and in Drum v. Drum, 133 Mass. 566 (1882). In Church v. Fowle, 142 Mass. 82 (1886), it was held whe-re, at the request of both parties, a third person drew up a note, and without the knowledge of either appended his signature as a witness, the note was not avoided. As to the effect of alterations of bonds by officials while in their custody, see Harris v. Bradford, 4 Ala. 214 ; United States v. Hatch, 1 Paine (C. C.) 336. In several cases it has been held, where a material alteration was made in a note by a principal, after signing by a surety, before delivery to the payee, and without his knowledge, that this did not avoid the note, since the alteration was not made by a party claiming under it, and since the note had not then become operative ; FuUerton v. Sturges, 4 Ohio St. 529 ; Bing- ham V. Reddy, 5 Ben. 266 (1871). See, also, Worrall v. Gheen, 39 Penn. St. 388 ; Ogle v. Graham, 2 Penn. 132. But accord- ing to the great weight of authority the note is thereby avoided ; Goodman v. Eastman, 4 N. H. 455 ; Wood v. Steele, 6 Wall. 80 ; Draper v. Wood, 112 Mass. 315 ; Hert v. Oehler, 80 Ind. 83 (1881); Jones v. Bangs, 40 Ohio St. 139 (1883). See, however, Whitmore v. Nickerson, 125 Mass. 496 (1878). In a recent Minnesota case it was held that a note was not avoided by the principal's securing another surety without the consent of the first surety, the payee being ignorant of the facts in the case ; Ward v. Hackett, 30 Minn. 150 (1883). See, also, Snyder v. Van Doren, 46 Wis. 602 (1879). In Wilmington & Weldon R. R. Co. v. Kitchin, 91 N. C. 39 (1884) it was even held, where the name of one surety on a bond was erased by the prin- cipal, that a second surety was not discharged, if the obligee was ignorant of the erasure. 5. Alteration of parol contracts by consent of parties. — All con- tracts not under seal may be altered or changed in their terms by oral agreement, and alterations so made, if founded upon a valuable consideration, are the foundation of a new contract ingrafted upon the old; Prouty v. Williams, 123 Mass. 297 (1877) ; Boston v. Benson, 12 Cush. 61 ; Pelton v. Prescott, 13 la. 567 (as to a new consideration). A note altered by consent upon a condition subsequent remains valid, though the condition never be performed ; Stod- dard V. Penniman, 113 Mass. 386. An instrument remains W.'A) MASTKi; V. MILLKU. valid against j)artirs who consent to an altcratiDii, lliongh avoided as to those not consenting; \\ aiiiig r. W'iliaiiis, 8 l*iek. :52:i; Smith r. Wehl, '2 IV-nn. .')4 ; Wills r. Wilson, :', Oreg. 308 (1871); Craighead i: McLoney, 91) Pa. St. Jll ( 188lj. See, also, Myers v. Nell, 84 Penn. St. 309 (1877). If one maker voluntarily pays an altered note, he cannot recover of a nt)n- asst'nting maker; Davis v. Hauer, 41 Ohio St. 2")7 (1884). The [)laintiff is liable for costs to parties not consenting to the alteration, tlnni^li he recover judgniciit against those who ha\e consented; lironghton v. Fuller, 9 N'eiin. 373; Wills r. Wilson, 3 Oreg. 308. Consent to an alteration may he impliecl, both from the acts of the party and fiinn a custom ; Bowers r. Jewell, 2 X. n.543; Clute r. Small, 17 Wnid. 2:5S ; Woodworth /'. i'.aidc of America, 19 Johns. 391. In Taihlikin r. Cantrell, till N. ^'. i)'M (1S77), it was held that the payee of a note, given by a nuuried woman, had no im[»lied aiithority to aii[M r;il)l(' (ilistacic. 1 inis m Collins V. Cnllilis, .il Miss. JJll, it Wiis liild, \vluTf :i tlet'il «»f trust ^'ivfii l»y way «»f in«»it^iij^o was altiTtMl after delivery ami reconlinjj, so as t<» cover u new loan, that the altt-ration was int»m'rative withtuit a redelivery, tilthoii^di the ehan;^'e was entered ujmhi the rerord. Hut in lias- sett V. liiissett, :')%) Me. 1-7, an unreeorded de»'d of an undiviMj^ after the fust ,') X. Y. 41 '» (1«74). But the .sur- render of the altered instrument is a condition precedent to an a('tinn on the original consideration, and the note canncjt itself he put in evidence in such an action. See cases citeil Kiif>ru. The hurden of proof is uj)on the holder to show that the !ilt«Ma- tion was innocently made; Kohinson i'. Reed, 4t> Iowa 219 (1S77); Black v. Bowman, 15 III. Ap[). IT.G (1884). But see Vogle V. Kipper, 34 111. 1<)0. In Morrison v. Iliggins, 53 Iowa 7G, it was held that an action would lie for goods s(jld and delivered, when a note given for tiie price hy the huyer had been innocently altered. The only cause of action originally was upon the note, ami it is hard to understand how even an innocent alteration can confer a new right ; and this case is op{)oscd to the great weight of authority. iSnt see \'ogh' ?». Ripper, supra. In those states where it is held that negotiahle paper given on account of a precedent claim, is prcsum[)tively a satisfaction of that claim, it would seem that this presumption must he rebutted, before the original consideration can be sued upon ; and it is believed that in Massachusetts and the other states where the above doctrine is law, it has never l)een ex- pressly decided that the original consideration can be resorted to in any ease. In fact there are some strong dicta to the con- trary ; Martendale v. FoUet, 1 N. H. 99 ; Smith v. Mace, 44 N. H. 553; Bigelow v. Stili)hen, 35 Verm. 525; White r. Ilass, 32 Ala. 430. See, also, Whedock v. Freeman, 13 Pick. 1(55. (c) Right of holder to restore note to its origiual form. — In Nevins v. Le (hand, 15 Mass. 43G, where a special indorsement was innocently erased in order that the indorsee might transfer the note by delivery without indorsing it, the court allowed the instrument to be restored to its original form, and held that a suit might be maintained upon the reformed instrument against the maker. " Justice requires and the law allows it to be done." Parsons, C. J. In Horst v. Wagner, 43 Iowa 373 (1876), it was held where a payee, ignorant of the proper method of transferring the instrument, substituted for his own name the name of the transferee, and subsequently before MASTER V. MILLER. 1163 delivery restored it to its original form and then indorsed it, that the indorsee could maintain an action upon it against the maker. These decisions may, perhaps, be sustained on the ground that the alteration was with reference to the transfer of the title, and in no wise affected the rights of the maker. But see iyifra as to material alterations affecting the operation of negotiable paper. In Whitmore v. Nickerson, 125 Mass. 496 (1878), where a maker made a material alteration in a note indorsed for his accommodation, but restored it to its original form before delivery to the payee, it was held that the alteration did not affect the liability of the indorser, since when the note first became operative it was in the same state as when indorsed. See, also, Nickerson v. Sweet, 135 Mass. 514 (1883), which held that a note materially altered by an unauthorized agent might be reformed in equity. Kounz V. Kennedy, 63 Penn. St. 187, and Shepard v. Whet- stone, 51 Iowa 457 (1879), go much further than the cases above cited, and hold that where the words "with interest" were added to the face of the note by a holder without fraudu- lent intent, an action may be maintained thereon on its restora- tion to its original shape. Sharswood, J., dissented from the decision in Kounz v. Kennedy, and it has been criticised in several later decisions of the same court. But see Lynch v. Hicks, S. C. Ga. Oct. 15th, 1887. 9. Materiality of alteration. — An alteration which changes the terms of a written contract so as to vary its legal effect and operation is material ; and the instrument is none the less avoided because the effect of the alteration is beneficial to the party to be charged. The destruction of the identity of the contract in its legal effect vitiates the instrument. See Schwarz V. Oppold, 74 N. Y. 307 (1878); Osgood v. Stevenson, 143 Mass. 399 (1886), which was a case of the material alteration of a written contract for the purchase of a book. (a) Material alterations. — (1) Date and time. — The date and time of performance of a written contract are essential parts of it ; hence any alteration in this respect avoids the instrument ; Master v. Miller, principal case ; Wheelock v. Freeman, 13 Pick. 165 ; Miller v. Gilleland, 19 Penn. St. 119 ; Lisle v. Rogers, 18 B. Mon. 528; Britton u. Dierker, 46 Mo. 592; Brown v. Straw, 6 Neb. 536 (1876); Taylor v. Taylor, 12 Lea (Tenn.) 714 (1883). See, also, Lemay v, Johnson, 35 Ark. 225 (1879). 1104 MASTKi: V. MILLKIl. Ami tin- ;ilu Tiition is fatal rVfii tli(Mii,'li tlu- timr of lu'iformaut'e be exti'M(li (1870); C'niwfonl v. West Side Hank, lOO N. V. 50 (1885). So an alteration in the date of a contraet for the sulo of ^oocls was iield material in (ietty t'. Shearer, -0 I*ein>. St. 12. In Stephen r. Cirahain, 7 S, A: K. 505, it w;us ileeide (1SS4). hut .see Hale v. Russ, 1 .Me. 334; Wilmiii (1«82). And other written eontraets are avoided in like manner ; Waring v. Wil- liams, 8 Pick. 322; Kline v. Raymond, 70 Ind. 271 (1880). But where by statute a joint note has the effect of a joint and several note, such an alteration is innnaterial ; Miller v. Reed, 27 Penn. St. 244. Adding or erasing the word "junior" is a material alteration; Broughton v. Fuller, 9 Verm. 373. So adding the word " collector " to a payee's name ; York v. Janes, 43 N. J. L. 332 (1881). But see Manufacturers' Bank v. Follett, 11 R. I. 92 (1876), where the word "agent," appended to a maker's name, was treated as merely descriptio persojice, and held not to avoid the note. Effect of the addition of another maker. — As to the addition of a new maker or surety, the cases are conflicting. The MASTER V. MILLER. 1167 addition of a new surety by the principal, without the consent of the first surety, before delivery to the payee, is generally held to be a material alteration. When the instrument first becomes operative, it is different in its legal effect from that signed by the first surety; Whitmore v. Nickerson, 125 Mass. 496 (1878) ; Hall V. McHenry, 19 Iowa 521 ; Haskell v. Champion, 30 Mo. 136. In Ward v. Hackett, 30 Minn. 150 (1883), it was held, where the payee was ignorant of the addition of the second surety, that the note was not avoided thereby. See, also, Snyder V. Van Doren, 46 Wis. 602 (1879). If a new surety is pro- cured by the payee or a subsequent holder after delivery by the maker, it is held in Massachusetts that this constitutes a collateral and independent contract, and that the note is not avoided thereby ; Stone v. White, 8 Gray 589. Monson v. Drakely, 40 Conn. 552 (1873) ; Mersman v. Werges, 112 U. S. 139 (1884), accord. In McCaughey v. Smith, 27 N. Y. 39, and Brownell v. Winnie, 29 N. Y. 400, it was held that the addition of a new maker did not avoid the note, and that his liability was that of a joint and several promisor. Muir v. Demaree, 12 Wend. 468 ; Patridge v. Colby, 19 Barb. 248 ; Card v. Miller, 1 Hun 504 ; Denick v. Hubbard, 27 Hun 347 (1882) ; Miller V. Finley, 26 Mich. 249 (1872), accord. In the following cases, however, such an alteration was held to avoid the note ; Chap- pell V. Spencer, 23 Barb. 534 ; Mc Yean v. Scott, 46 Barb. 379 (overruled in Denick v. Hubbard, suprci) ; Hamilton v. Hooper, 46 Iowa 515 ; Lunt v. Silver, 5 Mo. App. 186 (1878) ; Sullivan V. Ruddisill, 63 Iowa 158 (1883); Nicholson v. Combs, 90 Ind. 515 (1883). The new surety, however, will be bound ; Hamilton v. Hooper, supra. As to the addition of a new surety in a bond avoiding the instrument, see Harper v. The State, 7 Blackf. 61 ; O'Neal v. Long, 4 Cranch 60. (6) Alterations affecting the operation. — A parol contract is avoided by the appending of a seal ; Morrison v. Welty, 18 Md. 169 ; United States v. Linn, 1 How. 104 ; Yaughan v. Fowler, 14 S. C. 355 (1880). See, also, Fullerton v. Stm'ges, 4 Ohio St. 529. And it would seem that a specialty must be avoided by detaching a seal, and it was so decided in Piercy v. Piercy, 5 W. Ya. 199. See, also, Cutts v. United States, 1 Gall. (C. C.) 69 ; United States v. Spaulding, 2 Mas. (C. C.) 478. Where a seal is appended to the signature of one of several joint prom- isors, the instrument is avoided as to all ; Biery v. Haines, 5 ll*)8 MASTKIC V. MI1J,EU. W'liiirt. r>*»'>. -\s to lilt' ftltTl til ria^iii^ ;i >rn»ll, SIT Kcni r. Al.tiuof, 7.') Vji, 4'1A ( ISSl). The addition of witnesaes. — As tu llu' I'fffft of aiMiii^ to wiittt'ii coMtructs llu- iiiiiiu's of piirtii's purporting' to U- wit- nesses thereto, it is held, uheri' if attestetl they are atYeeled hy no Htatutu of liniitaticMis, that the alteration is innnaterinl, and (hies not avoi (as to iNtnds); Uhiekwell r. Lane, 4 Dev. A: H. (N.C.) L. llo. Hut in FuUer r. (ireen, • •I Wis. 159 (l8Hr>), as to notes (there U'in^ n«» statute of limitations in rej^Mrd to attested notes), it was tUu'ided that a note was not avoich-d hy such an altt-ration, thoui,di niadi* witlj frau(hiltiit iiiicii). I'ut see Mai-shall r. (iouj^der, lOS.vV U. hJ4. W'iieii! then- is a statute of limitations e»»nrernin^' attested notes, sueh an alteration avoids tiu- instrument; Homer t*. Wallis, 11 Mass. :WJ; Kddy r. l5oiid, !'.• M.'. 4«;i ; and it w.mld seem that the (|U(stif»n of intent would U- irrelevant ; hut it ha.s hcen decided, that if the attesting witness was netually present when the note was executed, that such an alteration tloes not avoid it; Rollins r. hartlett, 20 Mv. 'M\^ : Thornton r. Apple- ton, -JU Me. liUH; Milhcrry v. Storer, To Me. (IH (1SS:i). See, also. Smith v. Dunham, S Pick. J">t>. In I''ord r. Ford, IT I'ick. 418, it was held that the addition of a second witnt'ss to an attested note did not avoid it. See, also, Willard '•. ("lark, 7 Met. 4:'.;"); ("hurch r. Fowle, 14i! .Mass. 82 (ISS*',). in Sharpo V. Hajj^well, I l)ev. l".(i. llo, wheie a payee cut otT the name of an attestint,^ witness, it was held that the note was avoided. It has heen held, where words are adih-d to the j^eneral con- sideration clause in a note, deserihinLf the special consideration, that the note is avoided; Knill r. \\'illian>s, 10 East 418; Low IK Argrave, 80 CJa. 125'. Addinj^ words of ne£fotiahility t(t a non-negotiable note avoids it; Brute v. Westcf)tt, 8 Harh. 274; Johnson v. Bank of United States, 2 15. Mt»n. 310; State v. Stratton, 2T Iowa 424. See. also, lloUis c. N'andergrift, o Del. 521 ; :\IeCoY V. Lockwood, Tl Ind. 819 (1880). In Byrom v. Thompson, 11 Ad. & Kl. ^U. it was held that such words might be inserted Avliere they had been omitted by a mutual mistake. The substitution of the words " or bearer " for the words "■ or order " in a note is a material alteration ; Belknap v. National Bank of America, 100 Mass. 8T6 ; Union National Bank v. Roberts, 45 Wis. 3T3 ; Booth r. Powers, oi^ N. Y. 22 (18T4) ; MASTER V. MILLER. 1169 Needles v. Shaffer, 60 Iov^^a 65 (1882). But in Weaver v. Bromley (Mich.) 31 N. W. Rep. 839 (1887), it was adjudged that writing in the words " or bearer " without the erasure of the words "or order" did not avoid the note. In Flint v. Craig, 59 Barb. 330, it was decided that it was not a material alteration to change a note payable to bearer to one payable to order. In Stoddard v. Penniman, 108 Mass. 366, where a note payable to the maker's order, and indorsed in blank for his accommodation, was altered by the maker so as to be payable to the plaintiff who advanced money upon it, the court decided that the indorser was discharged, since his liability was thereby changed from that of an indorser to that of an original prom- isor. See, also, Davis v. Bauer, 41 Ohio St. 257 (1884). In Grimes v. Piersol, 25 Ind. 246, where an indorsee, without the consent of the indorser, substituted for his own name in the full indorsement the name of a transferee, it was held that the indorser was not liable to such transferee. But see sujrra as to the restoration of altered instruments. See, also, Mechanics' Bank V. Valley Packing Co., 70 Mo. 643 (1879). Filling up a blank indorsement contrary to the tenor of the bill is a mate- rial alteration; Hirshfeld v. Smith, L. R. 1 C. P. 340. So adding a waiver of demand and notice to an indorsement; Farmer v. Rand, 14 Me. 225. But qucere whether the note would be avoided as to the maker. So even adding the words " without recourse " to an indorsement discharges the indorser ; Luth V. Ste^yart, 6 Victorian Rep. 383. The insertion or oblit- eration of a material memorandum, whether written in the body of the instrument, or in the margin, or indorsed upon it, is a material alteration ; Warrington v. Early, 2 El. & B. 763 ; Gerrish v. Glines, 56 X. H. 9 (1877); Johnson v. Heagan, 23 Me. 329 ; Woodworth v. Bank of America, 19 John. 381 ; Benedict v. Cowden, 49 N. Y. 396; Wheelock v. Freeman. 13 Pick. 165 ; Wait v. Pomeroy, 20 Mich. 425 ; Blake v. Cole- man, 22 Wis. 415 ; Price v. Tallman, 1 N. J. Law 447. See, also, Johnston v. May, 76 Ind. 293 (1881). As to immaterial memoranda, see infra. In Dietz v. Harder, 72 Ind. 208 (1880), it was held that the material alteration of an instrument in suit avoided it. See, also, Rhoades v. Castner, 12 Allen 130. (b) Immaterial alterations. — The addition, or striking out, of words in a Avritten contract does not avoid it, if the legal effect remains unchanged. Thus writing in the name of the bank 117<» MASTKU V. MlLLKi:. after llie Wind " LiislutT," apiu'iitled to si^^niature on a iiotf ; Bank of (lenesee v. Patchin Hank, '\ Kern. 300. See, al.s(>, Mannfac- turers' Jiank v. Folk-tt, 11 l{. I. i>2. So tiittin^r off tlie word "trustees " ai)i>en(Ie(l to the si<^natures of the makers of a note, since their liahility was not uffeeted thereby ; Hurlinganie v. Brewster, 79 III. 51') ; Hayes v. Matthews, «):{ In. I. \\-2. So sul>- stitutinp the firm styh' for the words " Provich'nee Sieam Co.," when the j»arties did l)nsiness under Indh nanjes ; Arnohl r. Jones, 2 U. I. 34;'). So achMnj^ tlie Christian name of the ;")') (1882). It is an immaterial alteration to change the marginal tigures of a note so that they shall conform to the written amount; Smith v. Smith. 1 R. I. 308. S ; 'riuiuiRr i: Wt'iin>liill, H Lrij;li (\'ii.) G2 ; Hobiiisoii «'. l*li«i'Mix Iiismunro Co., 2.') lowii AM); Kroiich v. Slionz, ol Wis. •J(>4 ; .liuksnii v. Boyles, i'A Utwn 428. In Diexler v. Smith, 30 Vvd. \lv[). 7/>4 (IH87), this piiiuiple wiw exteii(h: Dyer, 28 III. 1H8. See, also, Warner v. Sjhucci, 7 .1. .1. Marsh. 340; hut in Ilert v. Ochlrr, 80 Ind. S3 (Issl), ii was litdd that the erasure of an indorsciiiciil i>\' payment (»f interest avoided the note. See, also, Johnston v. .May, 7«; In7. As to immateiial alterations in policies of insurance see Robinson v. IMnenix Insurance Co., 2.") Iowa 430; Martin v. Insurance Co., lol N. V. 4!»8 (188t;). 10. Bona fide holders of negotiable paper. Estoppel. — The general principle is well established that the material alteration of neq;otiable paper avoids it, even in the hands of a sukscfjuent innocent holder, and althoui,di tlu' alteration cannot be discov- ered bv the (dosest inspection ; and in ri'i,Mrd to altered pa[)er, bond fi'/t' puridiasers for value and innocent pavi-cs stand on pre- cisely the same footing; Agawam liank v. .Sears, 4 (iray l>5 ; Wade V. WIthington, 1 Allen 5t)l ; Adair v. England, 58 Iowa 314; .Etna Hank v. Winchester, 43 Conn. 3in ; Hank of Ohio Valley v. Lockwood, 13 W. \'a. 392 (1878) ; Savings Hank v. Shaffer, 9 Neb. 1 (1879) ; Suffell r. Bank of England, 9 Q. B. D. 555 (1882) ; Hert v. Oehler, 80 Ind. 83 (1881) ; Jones v. Bangs, 40 Ohio St. 139 (1883); and most courts follow the views of the majority of the court in Master v. Miller in hold- ing that a recovery cannot be had upon the instrument even in its original shape: Draper ?'. Wi^od. 112 Ma<^. 315; Citizen's Bank v. liichmond, 121 Mass. 110 (1876), and cases cited supra. MASTEE V. MILLER. 1173 See, however, Worrall v. Gheen, 39 Penn. St. 388, contra^ and cases cited supra as to alterations by the maker of a note being treated as acts of spoliation. When negotiable paper is delivered in an incomplete shape the law is that innocent holders, both payees and purchasers for value, may recover, though the blanks have been filled up contrary to the instructions of the party to be charged ; Putnam v. Sullivan, 4 Mass. 45 ; Androscoggin Bank v. Kim- ball, 10 Gush. 373 ; Violette v. Patton, 5 Granch 142 ; Bank of Pittsburg V. Neal, 22 How. 96 ; Rainbold v. Eddy, 34 Iowa 440 ; Abbott V. Rose, 62 Me. 194; Smith v. James, 32 Ind. 202; Redlich v. Doll, 54 N. Y. 234 ; Overton v. Mathews, 35 Ark. 147 (1879) ; Wessell v. Glenn, 108 Penn. St. 104 (1884). In Snyders v. Van Doren, 46 Wis. 602, the court held, where a blank note was signed by a surety, and a new surety was pro- cured by the principal, and the instrument was filled up as a joint note, that the first surety was not discharged. In Holmes V. Trumper, 22 Mich. 427, Avhere a blank for the rate of interest was filled up, the note was held to be avoided, even in the hands of a subsequent innocent holder. So Gharlton v. Reed, 61 Iowa 166 (1883), and Gronkhite v. Nebeker, 81 Ind. 319 (1882), where a blank for the place of j^ayment was filled up. But it is hard to defend these cases either on principle or authority. If a bill or note is partly filled up, any alteration in the part so filled up avoids it ; Ivory v. Michael, 33 Mo. 400 ; Ives V. Farmers' Bank, 2 Allen 236 ; Angle v. Northwest Mutual Life Insurance Gompany, 92 U. S. 330 (1875) ; Luellen v. Hare, 32 Ind. 211. See, also, Weyerbauser v. Dun, 100 N. Y. 150 (1885). And in McGrath v. Glark, 5Q N. Y. 34, it was held that a note was avoided, even as to subsequent innocent holder, when in a blank for the place of payment were inserted the words " with interest." When the instrument as executed is complete, and blank spaces left between the words are fraudulently filled up, the generally accepted doctrine is that the principle of estoppel cannot be invoked in behalf of a subsequent innocent holder ; Greenfield Bank v. Stowell, 123 Mass. 196; Gape Ann Bank v. Burns, 129 Mass. 596; Redlich v. Doll, 54 N. Y. 34; McGrath V. Glark, 5Q N. Y. 34; KnoxviUe Bank v. Clark, 51 Iowa 264; Washington Bank v. Ekey, 51 Mo. 272; McGoy v. Lockwood, 71 Ind. 319 (1880) ; Fordyce v. Kosminski, 3 S. W. Rep. 892 117 1 MASTKU V. .MIl.LKl:. (Ark.) (1887). See, iil.S(), linlau'S r. 'rruiiiiui-, Cluirltoii r. Reed, and ("loiikiiito v. Nelieker, cited nupra. Tlie f«»lli)wiii^ ciuieM, however, ail(ti»t tlie i)riiiei|)le of estoppel ; I'ii^an v. Wylie, 1 Ross, Leudin^' Cases, 140; Isnard v. Torres, lO I^a. An. 103; (larrard i\ Iladden, ♦JT I'eiui. St. 82; lUakey v. .lolmson, 13 IJii>li 197 (1877); Yoeuia r. Smith, 03 111. 321 (1872). This dotlriiie has also Ix-en applied to the severiiii,' of nieiuoraiida easy to l)e delaehed; Zimineiinaii v. Rote, 7o iViiii. St. ISS (1.S74); Noll V. Smith, «; I In.l. .".I I (1878). See, also, hrowii r. Rred, 70 Peiiii. St. 370 (ls7o). Hut si-e Wait v. l'omert»y, 20 Mich. 42o ; iieiiediet r. Cowih'ii, 41» N. V. '.VM)\ Palmer v. Sargent, 5 Neb. 225 ; Davis v. Henry, 13 Nei). 41>7 (1882), contra. So, also, nejjotiahle paper has heeii lu-ld not to he uvoide«l in the hands of a suiiseijuent innocent holder, hy the erasure of conditions written on the instrument in pencil; Harvey f. Smith, oo III. 224. Sec also Seihill v. \'auj^han, GU 111. 2.")7. Young r. Grote, 4 Hing. 2o:'., is largely resjM»nsilile for this : also Halifax I'nion v. Wheelwright, L. R. lo Kx. 1S3. 'i'lif facts of Yi>ung v. (irote were [»ecnliar. First, the altered instnuiicnl was a check; second, the addition was nnnle hy a conlidcntial clerk, who had Ix-i'n alloweil hy the drawer to till n[> the check, so that any alterations or additions mad*- after- wards would l)e in tlu' same handwriting. In commenting U[)on this case in Crcentiehl Bank v. Stowell, cited »»//>rrt. Gray, C. J., says: "" If tlic negligence of the customer affords opportunity to a clerk or other person in his employ, to add to the terms of a draft, and thereby mislead the hanker, the customer may well he held liable to the banker. But even as between customer and banker, the former has not been held liable for an unauthorized alteration or acldition l)y a stranger; ami that the signer of a note complete upon its face, and not entrusted by him to any person for the purpose of being lilled up or added to, but after- wards altered without his authority or assent, by the insertion of additional words in blank spaces therein, should be held lia- ble to an action on the note in its altered form, is unsupported by any English cases, and is opposed to the weight of tlie American authorities." In a very recent New York case, Craw- ford V. West Side Bank, 100 X. Y. 50 (188.5). it was held that a check was avoided by a material alteration made by a confiden- MASTER V. MELLER. 1175 tial clerk to whom it had been entrusted. See, also, Belknap v. Bank of America, 100 Mass. 376. 11. Legal presumptions and burden of proof. — In a note of this kind it is perhaps unnecessary to do more than cite a few of the later and more prominent decisions upon a branch of the law of evidence which presents the greatest difficulty, and in regard to which there is so much disagreement among the courts of the various states. In England and Massachusetts the law is, that where there is an apparent alteration on negoti- able paper or other parol contracts, tlie burden of proof is upon the plaintiff to show that the alteration was made before, or contemporaneousl)^ with, the execution of the instrument, but that there is no presumption of law as to the time when the alteration was made; 2 Taylor on Evidence, § 1819 (8th edi- tion) ; Norwood v. Fairservice, Quincy, 189 ; Wilde v. Armsby, 6 Cush. 314 ; Ely v. Ely, 6 Gray 439 ; Newman v. Wallace, 121 Mass. 323 (1876). In Massachusetts it has been decided that it is not incumbent upon the plaintiff to explain an alteration before the introduction of the instrument in evidence, and that proof of the defendant's signature establishes a prima facie case ; Davis V. Jenny, 1 Met. 221 ; Agawam Bank v. Sears, 4 Gray 95. In Ely v. Ely, 6 Gray 439, the court say : " The alteration may be of such a character that the plaintiff may safely rely upon the paper itself and the subject-matter as authorizing the inference that the alteration was made before the execution, or he may introduce some very slight evidence to account for the apparent interlineations." In Simpson v. Davis, 119 Mass. 269 (1876), Endicott, J., says: "The same rule applies as where a want of consideration is relied on as the defence to a promissory note ; the burden of proof is on the plaintiff, upon the whole evidence, to establish that fact." But where it appears on inspection that the alteration was made after execu- tion, the jury ma}" so infer notwithstanding the proof of signa- tui'e, and without the introduction of an}- evidence on the part of the defendant to show that the alteration was made after execution ; Wilde v. Armsby, supra. It has been held by the United States Supreme Court and the courts of several of the states that there exists a presumption of law that the alteration was made after execution ; United States v. Linn, 1 How. 104 ; Simpson v. Stackhouse, 9 Barr 186 ; Hills v. Barnes, 11 N. II. 395; Dow v. Jewell, 18 N. H. 356; Miller v. GiUeland, 19 Pa. 117^3 MASTKi: v. mim.kr. St. 110; Nfff /•. III. 111. 1, <■>;'» I*a. St. ol'7 ; ;iinl ili;ii tin- ultrnition must Ih> exi>l;iini(l Ixforf tin* instruiiifiit ran 1k' iiitrodiiciMl in evidence; Biirj,Miin v. lii>ilioj), 91 I*a. St. HM (1H71»). On the otlier hand, it lias lu-fn ludd hy some of our courts that thf hiw raises a presumption that tlie alteration was made at tlie time of the j'xeeution, and tliat where no evich-nee whatever is intro dueed by either side, the verdict shall In* for the plaintiff; Gooch {'. Bryant, 13 Me. 38»; ; I)o«lj(e r. Haskell, r.l> Me. 429; Putnam v. Clark, 38 N. J. Eq. 338; Paramore v. Lindsey, 68 Mo. tl3; Johns r. Harrison, 20 Ind. 317; Wilson r. Harris, 35 Iowa r)()7. Tlu! iM'tter rule seems to Ih' that the question of the time of the alteration is for the jtny upon all the evi- aman v. Kusstdl, 20 Venn. 20.-,; CunilHMland Hank r. Hall, 1 Halst. 2i:>; Tyree r. liives, .")7 Ala. 173; Chism r. Toomer, 27 Ark. 109; Corcoran r. Doll, 32 Cal. 89; Haydcn r. (Joodnow, 39 Conn. VU -, Warren V. Lay ton, o Ilarr. (Del.) 404; Planters' Hank r. Irwin, :'.! Ca. 371; .McAllister r. Avery, 17 III. App. r.08 (188;",); Neil v. Case, 2;") Kan. 510; Kllurt r. McClelland, 8 Bush r)77 : Willett V. Shepard, 34 Mieh. loCi; Wilson r. Henderson. 17 Miss. 375; Bank r. Morrison, 17 Neh. 341 ; Pease v. Barnett, 27 Hun 378; Rogers v. Voshurgh, 87 N. Y. 228 (1881); Keen v. Monroe, 75 Va. 424 (1881). In England and many of the states of this country, it is held that alterations in deeds are presumed to have been made before or contem[)oraneously with execution, and that the bur- den of proof is upon the defendant to prove that they were made subsequently; 2 Taylor on Evidence, § 1819 (8th edition); Doe V. Catomore, 16 Q. B. 745: Cox v. Palmer, 1 McCrary, 431 (1880); Little v. Tlerndon, 10 Wall. 26; Den v. Farlee, 21 N. J. L. 279; Gordon v. Sizer, 39 :\Iiss. 805; Sharpe v. Orme, 61 Ala. 263; Stiles v. Probst, 69 111. 382; Feig v. Meyrs, 102 Pa. St. 10 (1881) ; Letcher v. Bates. 6 J. .T. Marsh. 524. But in Massachusetts and some other states no distinction is made between alterations in deeds and alterations in parol con- MASTER V. MILLER. 1177 tracts; Ely v. Ely, 6 Gray 439; Prevost v. Gratz, Pet. (C. C.) 364; Herrick v. Malin, 22 Wend. 388; Acker v. Ledyard, 8 Barb. 514; Dow v. Jewell, 18 N. H. 340; Dolbier v. Norton, 5 Shepl. 307; Van Horn v. Bell, 11 Iowa 465; Deem v. Phillips, 5 W. Va. 168 ; Galland v. Jackman, 26 Cal. 79 ; Pipes V. Hardesty, 9 La. Ann. 152. Alterations in ancient writings and official returns are pre- sumed to have been rightfully and properly made ; Wilbur v. Wilbur, 13 Met. 405 ; Shinn v. Hicks, Sup. Ct. Tex. 4 S. W. Rep. 486 (1887) ; Bell v. Brewster, Sup. Ct. Ohio, 10 N. E. Rep. 679 (1887); Trimlestown v. Kemmis, 9 CI. & Fin. 763; Evans V. Rees, 10 A. & E. 151. WAUGII V. CARVER, (^ARVER, AND OTESLER. MICHAELMAS— VA (,E(). W, C. 11 [UKi-oiti r.ii 2 II. III.. 235. J A. and li„ xliiiy-agentx at different portu^ enter into an agreement tu xhtire, in certain proportions, the projitu of' their respective commigsionif, and the diifcount on tradesmen » bills employed by them in repairing the ships vonsiyned to them, Jv. By this agreement they become liable, as partners, to all persons with tvhom either contracts as nuch ayent, thouyh the ayreement pro- vides that neither shall be ant^iverable for the acts or losses of the other, but each for his men. lie who takes the yeneral profits of a partnership jnitst of necessity be muile liable to the loxses ('i). He who lends his name as a partner becomes.^ as ayainst all the rest of the world, a partner. Tins action of assumpsit for goods sold and delivered, work and lalxtur done, &C., was tried at Guildhall, l)t'fore the Lord Chief .lustiee, when a verdict was found for the plaintifT, sul> ject to the opinion of the Court on a case which stated — That on the 24th February, 1790, the defendants duly exe- cuted articles of agreement, as follows: — "Articles of agree- ment indented, made, concluded, and agreed upon this twenty- fourth day of Febiiiary, in the year of our Lord one thousand seven hundred and ninety, l3etween Erasmus Carver and William Carver, of Go.ywrt, in the county of Southampton, merchants, of the one part, and Archibald Giesler of Plymouth, in the couuty of Devon, merchant, of the other part. Whereas the said Archibald Giesler, some time since, received appointments (a) [This position is now untenable, see Wheatcroft v. Hickman, post, in notil.'] 1178 WAUGH V. CARVER. 1179 from several of the principal ship-owners, merchants, and in- surers in Holland, and other places, to act as their agent in the several counties of Hanipaliire, Devonshire , Dorsetshire, and Cornwall; and whereas the said Erasmus Carver and William Carver have for a great number of years been established at G-osport aforesaid, in the agency line, under the firm of Eras- mus Carver and Son, and hold sundry appointments as consuls and agents for the Danish and other foreign nations, and also have very extensive connections in Holland and other parts of Europe ; and whereas it is deemed for their mutual interest and the advantage of their friends, that the said Archibald Giesler should remove from Plymouth, and establish himself at Goives, in the Isle of Wight : and the said Erasmus Carver and Wil- liam Carver, and the said Archibald Giesler, have agreed that each should allow to the other certain portions of each other's commissions and profits, in manner hereafter more particularly mentioned and expressed. Now, therefore, this agreement wit- nesseth, and the said Archibald Giesler doth hereby for himself, his executors and administrators, covenant, promise, and agree, to and with the said Erasmus Carver and William Carver, their executors and assigns, in manner following (that is to say), that the said Archibald Giesler shall and will, when required so to do by the said Erasmus Carver and William Carver, re- move from Plymouth and establish himself at Coives aforesaid, for the purpose of carrying on a house there in the agency line, on his account ; but in consequence of the assistance and recommendations which the said Erasmus Carver and Wil- liam Carver have agreed to render in support of the said house at Co'wes, the said Archibald Giesler doth covenant, promise, and agree to and with the said Erasmus Carver and William Car- ver, that the said Archibald Giesler, his executors, administrators, and assigns, shall and will well and truly pay or allow, or cause to be paid or allowed, to the said Erasmus Carver and William Carver, their executors, administrators, or assigns, one full moiety or half part of the commission agency to be received on all such ships or vessels as may arrive or put into the port at Gowes, or remain in the road to the westward thereof within the Needles, of which the said Archibald Giesler may procure the address, and likewise one full moiety or half part of the dis- count on the bills of the several tradesmen employed in the repairs of such ships or vessels ; and as there have been, for a IISO WAUGH V. (;Ai:VKIt. coiisi(k'riil)lu time past, very ^'eiieral coinplaiiits iiuule abroad of the inalpraetices and impositions tliat liave prevailed at Cou'en aforesaid, and it being a principal object of the said Erasmus Carver and William Carver to c-onnteract and prevent sucli, the said Archibald (Jiesler d(»th further covenant, promise, and agree to and witii the said Erasmus Carver and William Carver, that he the said Archibald Oicslcr shall and will use his utmost diligence and endeavours to prevent ships or vessels arriving at the east end of the J-slr <>/ Wliflit, from being carrieil past the port of PortHttwuth to that of Cowvx ; and also to in- duce the mariners or commanders of such ships or vessels as may come in at the west end of the island through the Needles^ whenever it is piacticable and advisable, to proceed to Ports- month, and there put themselves uniler the direction of the said Erasmus Carver and William Carver, and that he will consult and advise witli the said Erasmus Carver and William Carver on and respecting the affairs of such ships or vessels as may put into and remain at the port of Cuiiu-x under the care of the said Archibald Giesler, and pursue suih measures as may appear to the said Erasmus Carver and William Carver for the interest of the concerned. And whereas one of the causes of complaint before mentioned is the very heavy charge made at Coives for the use of warehouses for depositing the cargoes of ships or vessels, the said Archibald (iiesler doth also covenant, promise, and agree to and with the said Erasmus Carver and William Carver, that they the said Erasmus Carver and William Carver shall be at full liberty to engage warehouses at Coices aforesaid, on such terms and in such manner as they may think proper, in which the said Archibald Giesler shall not upon any grounds or pretence whatsoever either directly or indirectly interfere. And the said Erasmns Carver and William Carver, for the considerations hereinbefore mentioned, do hereby cove- nant, promise, and agree to and with the said Archibald Giesler, his executors and administrators, that they the said Erasmus Carver and William Carver shall and will well and truly pay or allow, or cause to be paid or allowed, to the said Archibald Giesler, his executors, administrators, or assigns, three fifth parts or shares of the commission or agency to be received by the said Erasmus Carver and William Carver, on account of all such ships or vessels, the commanders whereof may, in conse- quence of the endeavours, interference, or influence of the WAUGH Y. CARVER. llSl* said Archibald Giesler, proceed from Coives to Portsmouth., and there put themselves under the direction of the said Erasmus Carver and William Carver, in manner hereinbefore mentioned, and likewise one and one-half per cent, on amount of the bills of the several tradesmen employed in the repairs of such ships or vessels, together with one-fourth part of such sum or sums as may be charged or brought into account for warehouse rent, on the cargoes of such ships or vessels respectively ; and also one-sixth part of such sum or sums as may be charged or brought into account for warehouse rent on the cargoes of such ships or vessels as may be landed at Cowes aforesaid : and also that they the said Erasmus Carver and William Carver, their executors, administrators, and assigns, shall and will well and truly pay or allow, or cause to be paid or allowed unto the said Archibald Giesler, his executors, adininistrators, or assigns, one- fourth part or share of the commission or agency to be received by the said Erasmus Carver and William Carver, on account of all such ships or vessels that may arrive or put into the port of Portsmouth, or remain in the limits thereof, under the care and direction of the said Erasmus Carver and William Carver: and likewise one-half per cent, on amount of the bills of the several tradesmen employed in the repairs of such ships or vessels : and in order to prevent any misunderstanding or dis- putes, with respect to the commission and discount to be paid and divided between the said Erasmus Carver and William Carver, and the said Archibald Giesler, and for the better ascertaining thereof, it is hereby mutually covenanted, de- clared, and agreed upon between the said Erasmus Carver and William Carver, and the said Archibald Giesler, that one-fifth part of the commission or agency on each ship shall and may be first retained by the party under whose care such ship or vessel shall be, as a full compensation for clerks, boat hire and all the other incidental charges and expenses in regard of such ships or vessels respectively; after which deduction, the then remaining balance of such commissions or agency shall be divided between the said Erasmus Carver and William Carver, and the said Archibald Giesler, in the proportions hereinbefore mentioned ; and that such commission or agency shall be ascer- tained by one party's producing to the other true and authentic copies of the general accounts of each ship or vessel under their respective care and direction, signed by the several masters of 1182 WAUGII V. f'Ai:VEK. siicli ships or vessels respectively, iiiid iKitarially authenti- cated. And it is heiel)y fuitlier covenanted, (h'llarcd, and agreed upon by and hetwccn tlie said I^rasmus Carver and William Carver, and the said AiciiihaM (iicslrr, that tins present contract and agreement shall commence and take elTcct from the date hereof, and shall continue in full force and virtue for the term of seven years, during the whole of whiih saiiration of the saihi\ Serjt., for the defendants ; and a second time in the present term by Le Blaru; Serjt., for the plaintift", and Ldirrciice, Serjt., for the defendants. The substance of the arguments for the plaintifT was as follows: — The question in this case is. Whether the articles of agree- ment entered into by the defendants constituted a partnership between them ? That such was the effect of these articles will appear by considering the general rules of law resjjecting part- ners, and the particular circumstances in the case. The law is, that wherever there is a participation of profits a partnership is created; though there is a difference between a participation of profits and a certain annual payment. Thus in Grace v. Smith, 2 Black. 998, a retiring partner lent the other who continued in business a certain sum of money at 5/. per cent., and Avas to have an annuit}' of 300/. a year for seven years, the whole of which was secured by the bond of the partner who remained in trade. This was holden not to make the lender a partner; but WAUGH V. CARVEK. 1185 Chief Justice Be Grey^ there said — " The question is, What constitutes a secret partner ? Every man who has a share of the profits of a trade ought also to bear his share of the loss ; and if any one takes part of the profits, he takes a part of that fund on which the creditor of the trader relies for his payment. I think the true criterion is, to inquire whether Smith agreed to share the profits of the trade with Robinson ; or whether he only relied on those profits as a fund for payment?" And Blackstone, J., also said — " The true criterion, when money is advanced to a ti'ader, is to consider whether the profit or pre- mium is certain and defined, or casual and indefinite, and de- pending on the accidents of trade. In the former case it is a loan, in the latter a partnership." In Bloxam v. Pell^ cited in Crrace v. Smith, a sum secured with interest on bond, and also an agreement for an annuity of 200Z. a year for six years, if Brooke so long lived, as in lieu of the profits of the trade, with liberty to inspect the books, was held by Lord Mansfield to con- stitute a partnership. In Jfom^e v. Dawes, Dougl. 371, 8vo, a number of persons unknown to each other, and without any communication together, employed the same broker to purchase tea at a sale of the East India Company. The broker bought a lot, to be divided among them according to their respective orders, and pledged the warrants with the plaintiff, for more money than they turned out to be worth ; on the broker becom- ing a bankru2:)t, the plaintiff sued two of the purchasers, con- sidering them all as secret partners, and liable for the whole. But the Court held that there was no partnership, and Lord Mansfield said — "There is no undertaking by one to advance money for another, nor any agreement to share with one another the profit or loss. In Coope v. E'jre, 1 H. Bl. p. 37, one of the defendants bought a quantity of oil of the plaintiffs, and the other defendants had agreed, before the purchase, each to take certain shares of the quantity bought; but, when bought, each to do with his own share as he j^leased ; they were holden not to be partners, for there was no share of profit or loss. In Youmj V. Axtell, and another («), which was an action to re- cover 600/. and upwards for coals sold and delivered by the plaintiff, a coal-merchant, an agreement between the defendants was given in evidence, stating that the defendant Mrs. Axtell ((7) At i4uUdhrdl sittings after llil., 24 G. 3, cor. Lord 3lansfieM, cited by Mr. Serjt. Le Blanc, from a MS. note. 1186 WAUGH V. CAKVHIl. hiul lately caniLMl on the coal trade, and thai the other defend- ant did the same: that Mrs. Axtell was to hrhit^ what custom- ers she could into the business, and that the other wits to pay her an annuity, and also '2s. for every chaldron that should Ihj sold to those persons who had been her customers, or were of her recommending. The plaintiff also proved, that bills were made out for jj^oods sold to her customers in their joint names; and the question was, whether Mis. Axtell was liable for the debt? Lord Mansfield said, "he slionld havi' rather thought on the agreement only, that Mrs. Axtell would l)e liable, not on account of the annuity, but the other payment, as that would be increased in j)roportion as she increased the business. How- ever, as slu- suft'creil her iiainc to Ik- used in the business, and held heiself out as a paitner, she was certainly liable, though the plaintilT did not at the time of dealing know that she was a partner, or. that her name was used " (e employed, eaeh party is interested in the thing on wiiieh it is employed, and in the profits resulting fri>m it. But in the present case, tliere is no joint contiact for tlie purchasing of goods, nor any joint stock or laboi', but the parties are to share, in certain propor- tions, the protits of their separate stock, and separate labor: there was no house of trade or merchandise established, but two distinct houses, for the })uri)ose of carr3ing on tlie business of ship agency, on two distinct ai-counts. The protits are not a capital, unless cariied on as a cai)ital, and not divided. Ship agents are not traders, but their employment is merely to man- age the concerns of such ships in port as are addressed to them. Su[)pose two lisliermen were to agree to share the protits of the tish that each might catch, one would not be liable for mending the nets of the other. So if two watermen agree to divide their fares, neither would be answerable for repairing the other's boat. Xoi- would any artificers who entered into similar agree- ments to share the produce of their separate labor, be obliged to pay for each other's tools or materials. And this is not an agreement as to the agency of all ships with which the parties were concerned, for such as came to the particular address of one were to be the sole profit of that one. It was indeed clearly the intent of the parties to the agreement, and is so expressed, that neither should be answerable for the losses, acts, or deeds of the other, and that the agreement should not extend to their separate mercantile concerns. It must there- fore be a strong and invariable rule of law that can make the parties to the agreement responsible for eaeh other against their express intent. But all cases of partnership which have been hitherto decided have proceeded on one or other of the follow- ing grounds : 1. Either there has been an avowed authority given to one party to contract for the rest. 2. Or there has been WAUGH V. CARVER. 1189 a joint capital or stock. 3. Or, in case of dormant partners, there has been an appearance of fraud in hokling out false colors to the world. Now the present case is not within either of those principles : because there was no authority given to either party to contract for the others ; nor was there any joint capital or stock ; nor were the public deceived by any false credit ; no fraud is stated or attempted to be proved, nor can the court collect from the articles that any was intended : it was merely a purchase of Giesler's profits by giving him a share of those of the Carvers, to prevent a competition between them. Lord Chief Justice Eyre. — This case has been extremely well arofued, and the discussion of it has enabled me to make up my mind, and remove the only difficulty I felt, which was, whether, by construing this to be a partnership, we should not determine, that if there was an annuity granted out of a bank- ing-house to the widow, for instance, of a deceased partner, it Avould make her liable to the debts of the house, and involve her in a bankruptcy ? But I think this case will not lead to that consequence (a). The definition of a partnership cited from Puffendorf is good as between the parties themselves, but not with respect to the world at large. If the question Avere between A. and B., whether they were partners or not, it would be very well to inquire, whether they had contributed, and in what proportion, stock or labour, and on what agreements they were to divide the profits of that contribution. But in all these cases a very different question arises, in which the definition is of little service. The question is generally, not between the parties, as to what shares they shall divide, but respecting creditors, claim- ing a satisfaction out of the funds of a particular house, who shall be deemed liable in regard to these funds. Now a case may be stated, in which it is the clear sense of the parties to the contract that they shall not be partners ; that A. is to contribute neither labour nor money, and, to go still farther, not to receive any profits. But if he will lend his name as a partner, he becomes, as against all the rest of the world, a partner, not upon the ground of the real transaction between them, but upon principles of general policy, to prevent the frauds to which creditors would be liable if they were to (a) [But see now the 28 & 29 Vict. c. 80, s. •i,post, in nota.'\ 1190 WAl(;U V. CAKVKK. hiippose that tliey lent their money upon tlie apparent credit of three or four i)ersons when in fact they lent it only to two of them, to wlioni, without the otliers, they wouhl liave h-iit nothing. The argument gone into, liowcvti- proper for the tlis- cussion of the (question, is irrelevant to a great part of the ease. Whether these i)ersons were to inteifere more or less, with tlieir advice and directions, and ni;iny small parts of tiie agree- ment, 1 lay entirely out of the ease ; heeause it is plain upon construction of the agreement, if it be construed hetween the Carvers and Giesler, that they were not, nor ever meant to he, partners. They meant each house to carry on trade without risk of each other, and to be at their own loss. Though there was a certain degree of control at one house, it was without an idea that either was to i)e involved in the consecpiences of the failure of the other, and without understanding themselves lesponsible for any circumstances that might happen to the loss of either. That was the agreement between themselves. But the {[uestion is, whether they have not by 2)arts of their agreement constituted themselves partners in respect to other persons? The case therefore is reduced to tlie single ])oint, whether the Carvers did not entitle themselves, and did not mean to take a moiety of the proiits of Giesler's house, gener- ally and indetinitely as they should arise, at certain times agreed upon for the settlement of their accounts. That they have so done, is clear upon the face of the agreement : and upt)n the authority of Grurc v. Smith {a), he who takes a moiety of all the profits indetinitely, shall, by operation of law, be made liable to losses, if losses arise : upon the prinei})le that, III/ takinn a part of the profitxi, he taken from the creditors a part of that fund ivhich is the proper security to them for the payment of their debts. That was the foundation of the decision in Grace v. Smith, and I think it stands upon the fair ground of reason (^d). I cannot agree that this was a mere agency, in the sense contended for on the part of the defendants, for there \vas a risk of profit and loss : a ship-agent employs tradesmen to furnish necessaries for the ship ; he contracts wath them, (a) 2 Black. 998. Lindley, L. .J.) in his valuable treatise (fe) [But see post, Wheatcroft v. on the Law of Partnership, pp. 34-40. Hickman, in nota. Before that de- The actual decision in Grace v. Smith cision, the principle laid down in was that the defendant was not a Grace v. Smith was irapugned with partner.] much learning by 3Ir. Lindley (now WAUGH V. CARVER. • 1191 and is liable to them ; he also makes out the bills in such a way as to determine the charge of commission to the ship-owners. With respect to the commission, indeed, he may be considered as a mere agent ; but, as to the agency itself, he is as much a trader as any other man, and there is as much risk of profit and loss to the person with whom he contracts, in the transactions v»dth him, as with any other trader. It is true that he will gain nothing but his discount, but that is a profit in the trade, and there may be losses to him, as well as to the owners. If there- fore the principle be true, that he Avho takes the general profits of a partnership must of necessity be made liable to the losses, in order that he may stand in a just situation with regard to the creditors of the house, then this is a case clear of difiiculty. For though, with respect to each other these persons were not to be considered as partners, yet they have made themselves such, with regard to their transactions with the rest of tlie world. I am therefore of opinion that there ought to be judg- ment for the plaintiff. Gould, J. — I am of the same opinion. Heath, J. — I am of the same opinion. Mooke, J., having argued the case at the bar, declined giving any opinion. Judgment for the plaintiff (a). Partnership is either actual or nominal. Actual partnership takes place wlien two or more persons agree to combine property, or labour, or both, in a common undertaking, sharing profit and loss. " I have always," says Tindal, C. J., in Green v. Beeseley, 2 Bing. N. C. 112, " understood the defini- tion of partnership to be a mutual participation in profit and loss." [But the question whether an agreement constitutes a partnership as between the parties to it giving them the rights and liabilities of partners, inter se, is totally different from the question Avhethcr a partnership is created, with its incident liabilities as regards third persons. The distinction is clearly put by Cotton, L. J., in Walker v. Hirsch, 27 Ch. D., at p. 467. Prima facie a mutual agreement to share profits and losses in certain pro- portions may be said to create a partnership as between the parties to it, though it may be questioned whether Kay, J., did not go too far in Pawsey \. Armstrong, 18 Ch. D. 698, 50 L. J. Ch. 683, in laying down that this is the inevitable result of such an agreement: see per Cotton, L. J., in Walker v. Hirsch, uhi supra, where it was held that no partnership was created. The court, however, will look to the efiect of an agreement and not the mere wording of it, and an agreement may constitute a partnership, even as between (a) See Coope v. Eyre, 1 H. Bl. p. 37, and the note there. 1192 WAUGH V. CAKVKU. tlic parties to it, notwithstaiidinir that it may contain an express provision to tlie contrary, Moore v. Doris, 11 Ch. I). 2t;i. A fortiori,^ with respect to third persons, an itrltutl partnership [niay] subsist where there is a participation in the prujits, even thoiii;ii the partici- pant may liave most expressly stipulated ajrainst tlie usual incidents to that relation. (See liond v. Piltnnl, 3 M. & W. H'lT.) Such stipulations [may] indeed hold j;ood between himself and his companions, but will in no wise diminish his liability to third persons. [Tiie principle on which tliis was supposed to be founded was — to use tlie lanijuaj?e of the L. C. .1. in the principal case — that •■ i)y taivinj^ a part of tlie profits, he takes from the creditors a part of that fund wliich is the proper security to tliem for payment of their debts." This principle. althouj;h some have thought it inexpetlient as a restraint upon the employment of money in commerce, was for a long time upheld ; but now both the legisla- ture and the highest court of appeal have pronounced it to be vicious. It is now settled, that there may be a participation in profits, yet no |>art- nersliip, even qnoad third persons. The real test of the liability of any one to tliird parties as a copartner is, whether or not the other person or persons conducting tlie business were his agents to carry it on. This was decided by the unanimous judgment of the House of Lords in Wheatrroft and (-'or v. Ilirkmnn, !) C. B. N. S. 47, 8 II. of L. C. L'HH, ;50 L. .1. C. P. 12.1, overruling the authorities to the contrary, and reversing the decision in the same case of the Common Pleas, and of the Excheiiuer Chand)er ; in which latter court, however, the judges were divided in opinion, as also were the judges who delivered their opinions in the House of Lords. The facts of the case were these: Messrs. Smith, who were partners as iron-mercluints at the Stanton Iron Works, became insolvent, and a deed of arrangement was executed between them and their creditors. By this deed Messrs. Smith conveyed all their property to live trustees upon trust, to continue and carry on, under the name and stijle of the Stanton Iron Com- pany, the hiiiiiness theretofore carried on by the Messrs. Smith in copartnership. The deed then conferred upon the trustees powers to manage the works as they thought fit, and to renew leases, insure, erect buildings and machinery, appoint managers and agents, enter into and execute all contracts and instru- ments in carryinfj on the business (a provision clearly authorizing the trustees to make or accept bills of exchange), and to divide the net income of the busi- ness remaininy, after the abore purposes had been answered, amongst the cred- itors of Messrs. Smith, in rateable proportions, — provided that in distributing such income, it should be deemed the property of Messrs. Smith; with power for the majority in value of the joint creditors, at a meeting, to alter the trusts, and make rules as to the discontinuance of the business and the man- agement of it, and ultimately after paying the debts incurred in the l)usiness so carried on, to divide the residue of the moneys, rateably, amongst the creditors, with the same provision that the moneys were to be considered the property of Messrs. Smith. The creditors were to receive the provisions of the deed in full discharge of their debts, and they covenanted not to sue. The defendants were creditors of Messrs. Smith, and they subscribed and executed this deed. The trustees carried on the business in pursuance of the deed, under the name of the Stanton Iron Company, and the plaintiff Iiaving sujjplied the company with iron ore, one of the trustees accepted bills of exchange in the WAUGH V. CARVER. 1193 name of the company for the price of it. The bills not havins: been paid at maturitjs the plaintifl" sued the defendants as acceptors. The real question was whether the deed made the defendants partners with the trustees, or what is the same thing, agents to bind them by tlieir accept- ances on account of the business, and the Lords present (Lords Campbell, C, Brougham, CrauAvorth, Wensleydale, and Chelmsford) unanimously held that such agency was not established by the deed and that the defendants were not liable. "It is often," obsei'ved Lord Cranworth, " said, that the tests, or one of the tests, whether a person not ostensibly a partner is nevertheless in con- templation of law a partner, is whether he is entitled to j^articipate in the profits. This, no doul)t, is in general a siifficiently accurate test; for a right to participate in profits afibrds cogent, often conclusive, evidence that the ti-ade in which the profits have been made was carried on in part for or on l)ehalf of the person setting up such a claim. But the real ground of the liability is, that the trade has been carried on by persons acting on his behalf. When that is the case, he is liable to the trade obligations, and entitled to the profits or to a share of them. It is not strictly correct to say that his right to share in the profits makes him liable to the debts of the trade. The correct mode of stating the proposition is to say that the same thing that entitles him to the one, makes him liable to the other, namely, the fact that the trade has been carried on in his behalf, i.e., that he stood in the relation of principal towards the persons acting ostensibly as the traders, by whom the liabilities have been incurred, and under whose management the profits have been made. Taking this to be the ground of liability as a partner, it seems to me to follow that the mere concurrence of creditors in an arrange- ment under which they permit their debtor, or trustees for their debtor, to continue his trade, applying the profits in discharge of their demands, does not make them partners with their debtor or the trustees. The debtor is still the person sglely interested in the profits, save only that he has mortgaged them to his creditors. He receives the benefit of the profits as they accrue, though he has precluded himself from applying them to any other purpose than the discharge of his debts. The trade is not carried on by or on account of the creditors." His lordship then proceeded to show that Waugh v. Carver, Bond v. Pittard, supra, and Barry v. Nesham, 3 C. B. 641, applying to them the test enunciated by him, were correctly decided. "The law," said Lord Wensleydale, "as to partnership is undoubtedly a l)ranch of the law of principal and agent ; and it would tend to simplify and make more easy of solution the questions which arise on this subject if this true principle were more constantly kept in view. A man who orders another to carry on trade, whether in his own name or not, to buy and sell, and to pay over all the profits to him, is undoubtedly the principal, and the person so employed is the agent : and the principal is liable for the agent's contracts in the course of his employment. So, if two or more agree that they should carry on a trade and share the profits, each is a principal, and each is an agent for the other, and each is bound by the other's contracts in carrying on the trade, as much as a single principal would be by the act of an agent, who was to give the whole of the profits to his employer. Hence it becomes a test of the liability of one for the contract of another, that he is to receive the whole or a part of the profits arising from that contract by virtue of the agreement made at the time of the eni;)li)yinenl. I believe this ir.»4 W Al «.H V. CAUVKK. Is the tnif principle of partnershii) liability. I'erlmps the nmxim, timt hf trho tnkfs thi- jn-nfit.1 itiiijht (') lit'ir th*- lnim, J)ften statetl in tiie earlier euses on thli* Hul)ject — W'aitijh v. Caner, &c., — \n only the rutntfiufuri-, not the i-anse, why a man is matle Hal)le as a partner. Can we collect from the trust deed that each of the subscril)iiiu creditors Is a partner with the trustees, and by the mere siijnatnre of tlie deed, runstitutfs thfin hin tnjfnt for rnrrtjiny on the huniiicuHfnr his accimnt and the rest of the creditors? I think not. It l8 true that l)V this deed the creditors will ;;ain an advanta;;e by the trustees carryiutc on the tra«le; for if it is protltal>le they will ;;ei their debts paUl ; but tliis is not that siiarin;; of |)rollts which c«>nstltutes the relation <»f prin- cipal, ai^ent, and partner." See furliiiT Kih/iaic v. Jukes, S B. & S. H47; and Ilnllfn v. Sharji, Cam. Scac. L. U. 1 C. r. «G; 35 L. J. C. 1'. 105, In which the above rationea deci- di'iuli were acted upon. In the latter case the opinion of the majority of the Court of Exchequer rhaint»er. reversini; a jndijnient of the Common IMeas, was a<;alnst the lia- bility of a trustee under a niarriaue settlement l)y which the trustet' was to receiv«' all the proilts of the husband's business of an unilerwriter, in tnist In the llrst pla(i W. K. ;!s;t, -Jt; L. T. \. S. i;^;. is an exaniple of cir- cumstances held to create an auemy of this sort. The tlefendant and a builder had made an afrreement by which the latter was to erect certain houses, providing the plan, v». per week for personal expenses durlnfj the erection. Both parlies were to be jointly interested in the houses, which on completion were to l)e sold, and an account of profit and loss was to be taken between the two. The builder purchased materials, &c., for the houses on credit from the plaiiUitr, and in an action by the latter for the j)rice. Brett. J., ruled that the airncmeut did not constitute a partnership so as to authorise the builder to pledge the defeiulant's credit. Un a bill of exceptions the Court of Kx- chequer Chamber, whilst adherinj; to the ratio dpriihndi in Voj- v. Ilirktnfin, that '• sharing in profits and loss does not in itself constitute a partnership, but only affords a strong pi'esumption that the one party is made the agent for the other," held that in this case the agreement did constitute the builder the (.iefentlant's agent, to pledge the credit of the latter, and therefore that the above ruling was wrong. See also Ex parte MacMillmi, 24 L. T. N. S. 143. The case of KilJij v. Srott, 49 L. J. Ch. 383. is one in which it was held that under a somewhat similar agreement a partnership liability ijuoad third persons was not thereby created. The question what constitutes a partnership as against third persons and of the Tartnership Act, 18G5, which will be presently noticed, was very fully discussed in Holme v. Hammond. L. R. 7 Ex. 218, 41 L. J. Ex. 157. There, by articles of partnership, it was provided that in case of the death of a part- ner in an auctioneer's business, the surviving partner should carry on the WAUGH V. CAKVER. 1195 partnership, and should pay the representatives of the deceased partner his sliare of the profits up to tlie end of tlie tenn for wliicli tlie partnership was created. At tlie decease of one of tlie partners there was no capital in the business — except the office fittings and furniture — and his executors subse- quentl}' interfered in no way in the business ; but they registered an account of, and were credited with profits earned before and after the death of their testator. It was sought to make them chargeable as partners in the business, and the Court unanimously held that they were not so liable under the cir- cumstances. Martin and Bramwell, B. B., cite with the highest approval the efl'ect of Cox v. Hickman, as stated by O'Bi'ieu, J., in Shaw v. Gait, as fol- lows : " The pi'inciple to be collected from them appears to be that a partner- ship even as to third parties is not constituted by the mere fact of two or more persons participating or being interested in the net profits of a busi- ness, but that the existence of such partnership implies also the existence of such a relation between those persons as that each of them is a principal and each an agent for the others." Kelly, C. B., seems in his judgment to repudi- ate to some extent agency as a test of partnership liability, and Cleasby, B., objects to the passage from the judgment of O'Brien, J., that " in the com- mon case of a partnership where by the terms of the partnership all the capital is supplied by A., and the business is to be carried on by B. and C. in their own names, it being a stipulation in the contract that A. shall not appear in the business or interfere in its management, that he sliall neither bnj^ nor sell nor draw nor accept bills, no one would say that as among them- selves there was any agency of each one for the others." The ratio decidendi in Cox v. Hickman was again followed in Mollwo, March & Co. v. The Court of Wards, L. K. 4 P. C. 419. This last was a strong case ; for the rajah, whom the appellants sought unsuccessfully to charge as a partner, had a considerable amount of control over the business as well as a commission on all net profits made by the firm equal in propor- tion to one-fiftli of their amount. But the Court held " that although a right to participate in the profits of a ti'ade is a strong test of partnership, and there may be cases where from such perception alone it may as a presumption, not of law, but of fact, be inferred ; yet tliat whether that relation does or does not exist must depend on the real intention and contract of tlie parties. . . . Wherever the agreement between parties creates a relation which is in substance a partnership, no mere words or declarations to the contrary will prevent, as regards third persons, the consequences flowing from the real contract." In tliat case, however, their lordships thouglit that "the agree- ment on which it was sought to establish the alleged partnership was in sub- stance founded on the relation of creditor and debtor, and established no other." See also Ex parte Davis, 4 ])e G. J. & S. 523, and Gill v. Manchester Bail- way Compamj, L. R. 8 Q. B. 18G, 191, where it was held that a working agree- ment between two companies, even if it " did not constitute an actual part- nership between the respective companies as to all the matters embraced by it," still did bring the defendants (one of the companies) "within the rule expressed by Lord Cranworth in Cux v. Hickman : ' The real ground of liability is tliat the trade has been carried on by persons acting on his (the defendant's) behalf.' " Without attempting to draw any hard and fast line to define what circum- stances constitute a partnersliip by agency (quoad third persons, see Walker v. Hirsch, 27 Ch. D. 460, and Lindley on Partnership, 4th ed. pp. 38 et seq.), the ir.iG WALLiii V. cai:vi:k. ctt'i'ct of Coy V. Hick-man ns folUtwcd by the Inter cases seems to be tliat to establish the lial)ility of a person as partner to tlu- creditors of a Jinn it i» necessary to look at all the circumstances establishinii relations between him and his alleged partners with reference to the biisimss; and that the mere receipt of protlts is only one strong fact, which does not in itself constitute the receiver a partner, but is only evidence liable to be rebutted or supported by the other facts of the case. Sec Badeley v. Consolidated Hank, 34 Ch. D. 6;JG; Frowdi' v. Williamx, 5(1 L. J. Q. B. 02. If the whole facts show that the persou soujfht to be charjjed authorised the carryiui^ on »tf the business on account and for the benetit of himself, then he is liable as a partner would be, anil he can no more avoid responsi- bility to third persons by showiuii that he had sti|)ulatt'd with the ostensible partners that he should not be liai)le for the debts of the linn than coulil any other concealed principal by stipulations with his own afjent avoid liaiiility to third parties on contracts efl'ected by that ajjent «ui his behalf within the authority Kiveii by liini. But it Is obvious that it is almost impossible to detlne accurately what are the states of circumstances which establish the relations in this sense of principal and aj^ent. Capital embarked, powers of interference in the business, |)rollts received, are all circumstances to be taken into cn, L. J., in Ex parte Ten- nant, at p. ;U5. " I take it," says his lordship, " the law is this : that partici- pation in protits is not now conclusive evidence of the existence of a part- nership, but it is one of the circumstances, and a very strong? one, wliich are to be taken into consideration for the purpose of seeinj; whether or not a pai'tncrship exists, that is to say, whether there was a joint business; or, puttiuir it in another way, whether the parties were carryin*; on the business as principals and as agents for each other, whether it is a joint business or the business of one only." The Master of the Uolls, however, in Poolejj v. iJrirer, indicates an opinion that the test of agency is of no avail, because in the sense in which it must be used, the term " agent" is, his lordship considers, simply co-extensive with that of partner. He lays down generally as follows : "If we find an associa- tion of two or more persons formed for the purpose of carrying on in the first instance or continuing to carry on business, and we find that those per- sons share between them generally the profits of that business, as I under- stand the law of the case as laid down by the highest authority (the House of Lords in Cox v. Hickman), those pei'sons are to be treated as partners in that business, unless there are surrounding circumstances to sliow that they are not really pai'tners. That, of course, brings me again to another ques- tion, wliich must always be considered, and that is, whether looking at the contract as a wbole, it is intended to secure the benefit of a partnership with or without its liabilities, or whether it is not intended tliat tlie benefits of a partnership shall be secured." WAUGH V. CARVER. 1197 In Ex parte Tennnnt, In re Howard, Ch. D. 303, the Court of Appeal came to the conohision that although there was a contract by which the supposed partner was to have a share in the profits of a business carried on by his son, the whole circumstances must be looked at, and these negatived any inten- tion in the parties to create a partnership. (Another case where the facts were held to negative a partnership is Deane v. Harris, 33 L. T. N. S. 639.) In Ex parte Delhasse, In re Megevand, 7 Ch. D. 511, the same Court came to an opposite conclusion as to the true inference to be drawn from the facts of that case, and held that a partnership was created. In the latter case Thesiger, L. J., cites Lord Cranworth as giving " as the test that which no doubt must now be taken as the pi'oper test to be applied in all these cases, namely, that the real ground of liability as a partner is, that the trade has been carried on by persons acting on behalf of the person whom it is attempted to make liable as a partner. But," adds Lord Justice Thesiger, "in the very same page in which those words occur. Lord Cran- worth also says that the participation in profits is in general a sufliciently accurate test, and that the right of participation in profits aflbrds cogent, often conclusive evidence of a partnership. If that be so, it follows as a logical consequence, that if in addition to participation in profits the arrange- ment provides for a participation in losses, and also certain stipulations tantamount to the ordinary [Stipulations which one would expect to find in the case of a dormant pai'tner, it is an a fortiori reasoning in such a case in favour of a partnership." In the recent case of Froivde v. IVilliams, 56 L. J. Q. B. 62, it was held that the agreement did constitute a partnership. It should be observed that in Cox v. Hickman and Bullen v. Sharp the amount of profits receivable w'as limited, viz., to the amount of the respec- tive defendants' debts, and doubts have been expressed as to whether those decisions would be binding where the participation in profits was unlimited. But in Holme v. Hammund, L. R. 7 Ex. 218, where the latter was the case, the Court of Exchequer declined to draw any distinction on that gi'ound, nor did the Court of Appeal in Ex parte Tennant, uhi siq'). In Cox v. Hickman, 9 C. B. N. S. 47, 100, Lord Wensleydale says, " The trustees (under the deed) are certainly liable, because they actually contract by their undoubted agent." For tAVO cases where trustees under inspectorship and composition deeds have been held not liable, see Redpath v. Wigg, L. R. 1 Ex. 335, 35 L. J. Ex. 211 ; Easterbrook v. Barker, L. R. 6 C. P. 1, 40 L. J. C. P. 17.] On the above principles it is that a dormant partner, i.e., a partner whose name does not appear to the world as part of the firm, is held responsible for its engagements, even to those who, when the}' contracted with the firm, were ignorant of his existence. Exp. Cellar, Rose, 297 ; Wintle v. Crowther, 1 C. & P. 316; 1 TyrAV. 210; BoUnson v. Wilkinson, 3 Price, 538; IBottomley V. Nuttall, 5 C. B. N. S. 122; per Blackburn, J., Kilshaw v. Jukes, 3 B. & S. 847]. In one respect, however, there exists very considerable diflerence between the liabilities of an ostensible partner and those of a dormant one; for the liability of a partner who has appeared in the firm, in respect of the acts and contracts of his co-partners, continues even after the dissolution of the part- nership, and the removal of his name therefrom, until due notice has l)een given of such dissolution. See Parkin v. Carruthers, 3 Esp. 248; Graham v. Hope, Peake, 154. And though, as far as the public at large are concerned, notice in the Gazette 1108 w.vr*;!! v. caiivki:. is held sulHficnt for this purpost-, (ImJ/ri'ii v. Tunihtill, 1 Ksp. 371; W'rvjhtinin V. J'lilhiii. 1 Starli. .■57r> ; limilip v. l/nward, 17 C. B. 1215, yi-t, to persons who have dealt witli tiiu linn, more Hpeeitle iiiforiiiatioii must i)e ;;iven. Kirtrun V. Kirican, 4 Tyrw. 491. And this is generally ellectod by circulars. See Xew- some V. Coles, 2 Camp. (il7; Jenkins v. Dlizard, 1 Stark. 418. Hut if a fair presumption of actual notice can be raised from otiier circumstances, tliat will be sutllcient. M'lrer v. Hiiinhle, 1(» Ea.st, ICO. Thus, a chaufje in tlie wording; of che(iues has l)eeii held notice to a party usinif them. Ilnrfoot v. GoixUiitll, 3 Camp. 147. Hut it is not to be taken as a lei,'al incident of the position of a flnnnnnt partner, but ratlier as a prol)al)iiity arisin-r from the lirer.ter likeliliood <(f his share in tlie llrm l)eini; unknown to those who deal with it, that his liability ceases upon the actiial dissolution of the partnership, whilst that of an oxftiisi- hle partner continues, towards persons who have no notice of the dissolution ; for although generally speaking, a donnnut partner may retire witliout giving notice to the world, IIr* arising from carrying on such trade or undertaking, .shall not, of itself, consti- tute the lender a jiartner witli the person or the jiersons carrying on such trade or undertaking, or render him responsil)le as such." " In order to bring a case witliin the .\ct tiiere must be a contract in writ- ing, and, according to my reading of the Act, tlie contract must on the face of it show that tlie transaction is a loan," per Lord Chelmsford, in Syers v. Sijers, 1 App. Cas. 185, in which case is discussed the effect of a letter under- taking " to execute a deed of copartnership for one-eighth share in the profits of the Oxford Music Hall and Tavern, to be drawn up under the Limited Partnership Act of 28 & 29 Vict. c. 86." In Pooley v. Driver, 5 Ch. D. 458 ; 4G, L. J. Ch. 4GG, it was decided l>y Jessel, M. R., that the contract in writing must he signed by any jiarty seeking to have the benefit or protection afforded by the act, and that " the advance of money by way of loan" must not only profess to be by way of loan. l)ut must be a real loan. Tlie last proposition, that in each case the whole contract must be consid- ered to see whether a real loan was intended is sustained by the judgments in the Court of Appeal in Ex parte Tennant, 6 Ch. D. 303, and in Ex parte Delhasse, re Megevand, 7 Ch. D. 511. See also Fronde v. Williams, 50 L. J. WAUGH V. CARVER. 1199 Q. B. 62, where Denman, J., lays down that " it is good primd, facie evidence of a partnership if tliere be an agreement tliat when tlie business is to be carried on tliere is to be a sharing of the profits." Before setting forth the 2nd section, it will be better to state the eftect of the law before the act was passed. The participation in profits which was held to constitute a partnership was, that of a person having a right to a share of the profits and to an account in order to ascertain his share, 7iot that of a mere servant or agent receiving, in respect of his loages, a sum proportioned to a share of the profits, or which might he partly furnished out of the profits. The distinctions on this subject ran verj^ fine, and in previous editions of this work, the principal cases were reviewed at some length, in the endeavour to classify them. It will be suftlcient now to state the result of the principal cases, which seems to have been,] that whenever it appeared that the agreement loas intended by the parties themselves as one of agency or service, but the agent or servant [was] to be remunerated by a portion of the profits, then the contract [was] considered as between themselves one of agency (see Geddes v. Wallace, 2 Bligh, 270; 7^. v. Hartley, Russ. & R. 139), but, as between them and third persons, one of partnership. See Smith v. Watson, 2 B. & C. 407; Ex parte Eowlandson, 1 Rose, 91; Gi-een v. Beesley, 2 Bing. N. C. 110; Ex parte Lang- dale, 18 Ves. 300; \_Whpatcroft v. Hickman, su2:)ra ; Walker v. Hirsch, 27 Ch. D. 400.] But if the agent or servant [was] to be remunerated, not by a portion of the profits, but, as in D)-y v. Boswell, I Camp. 329, Dixon v. Cooper, 3 Wils. 40, and Wilkinson v. Frasier, 4 Esp. 182, by part of a gross fund or stock which [was] not altogether composed of the profits, the contract, even as against third persons, [would have been] one of [ordinary] agency, although that fund or stock [might] include the profits, so that its value, and the quantum of the agent's reward, [would] necessarily fluctuate with their fluctuation. There was a third case, that, viz., in which the agent or servant was not to receive a part of the profits in specie, but a sum of money calculated in propor- tion to a given quantum of the profits. In such a case Lord Eldon expressed his opinion, that the agent so remunerated would not be a partner, even as to third persons. " It is clearly settled," said his lordship, in Ex parte Hamper, 17 Ves. 112, " though I regret it, that if a man stipulates that he shall have as the reward of his labour, not a specific interest»in the business, but a given sum of money, even in proportion to a given quantum of the profits, that will not make him a partner; but if he agrees for a part of the profits as such, giving him a right to an account, though having no property in the capital, he is as to third persons a partner." In another part of the same case he says — " The cases have gone to this nicety, upon a distinction so thin that I cannot state it as established upon due consideration, that if a trader agree to pay another person, for his labour in the concern, a sum of money, even in proportion to the profits, equal to a certain shai'e, that will not make him a partner. But if he has a specific interest in the profits themselves, he is a partner." 17 Ves. 404. See Ex parte Watson, 19 Ves. 461 ; [Harrington v. Churchward, 29 L. J. Cha. 521 ; and Lyon v. Knowles, 3 B. & S. 550; 32 L. J. Q. B. 74. The 2nd section of the act provides as follows: "No contract for the remuneration of a servant or agent of any person engaged in any trade or undertaking by a share of the profits of such trade or undertaking shall, 1200 WAIGH V. CAKVKl;. of itself, rendor such servant or ajjent responsible as a partner therein, nor {jive Inm the rights of a partner." iiy the 8ril section, " No person i)eln2. overruling Ex parte Mararthur, 40 L. ,T. Bkcy. HO. And see Bndiley v. CoiiKiiliiJ'tted Bank. .U Ch. D. ,"j;}G. But the words of the section do not " confine the restriction to coming in in competition with creditors in respect of the particular tratle or creditors whose ilebts are contracteil while that trade is going on. The words are general." Per Cotton, L. J., iu Ex parte Taylor, 12 Cli. D. at p. 37C. By section G, the word " person" as used in the act is made to include a partnership firm, a joint stock company, and a corporation. It may be remarked that the principle on which (\>x v. Ilirkman was decided is broad enough to include a large number of cases not included in the statute : for instance, to entitle a person who may have lent money to the benefit of the act, s. 1, there must be a contract in writiuf/. On this it has been attempted to found an argument, which was urged in Holme v. Ilain- moml {sup.), that the statute, being later than the decision in Cox v. Hickman, must be taken either to be evidence that the decision in Cox v. Hickman was not so broad as it has been supposed to be, and as it is above stated, or else to have effected a statutory limitation to that decision, and that in all cases not specifically provided for by the act the receipt of profits must create a partnership liability as had been supposed to be the case i)efore Cox v. Hickman. The argument was unavailing. Kelly, C. B., observes in his judgment that " it seems to him that the eflect of the statute is merely that as respects the protected classes the sliaring in profits shall be no evidence at all of a con- WAUGH V. CARVER. 1201 tract of partnership, whereas with regard to others it is evidence, though insufficient of itself to establisli the liability." With great humility the act does seem to contemplate the receipt of protits being given in evidence, even in the specified cases : for it provides that the receipt of the profits shall not " of itself " and again '• l)y reason of the receipt onhj " constitute a partnership. It is submitted that the distinction may be that in the cases specified by the act the receipt of the profits, though admissible in evidence, is insufficient ■per se to establish the liability, whereas in other cases, it may be, to repeat Lord Cranworth's words, " cogent and often conclusive evidence," and amplj' sufficient even per se if not rebutted, though liable to be rebutted by the other circumstances of the case. In this way the act would be a step in advance of Cox V. Hickman. And see per Thesiger, L. J., in Ex parte Delhasse, 7 Ch. D. 531. Bramwell, B., however, in his judgment takes a bolder line. " It is asked, if the defendants are not lial)le, what was the use of the 28 & 29 Vict. c. 86? If I say none, it would only show that the act was useless. In truth it was passed before the effect of Cox v. Hickman Avas understood," and this would seem to be the inclination of the opinion of Jessel, M. R., in Pooley v. Driver, 5 Ch. D. pp. 484-G. In MoUwo, March & Co. v. The Court of Wards, L. R. 4 P. C. 419, this point was raised before the Privy Council, but their lordships in their judgment (p. 437) say " the enactment is no doubt entitled to great weight as evidence of the law, but it is by no means conclusive; and wliou the existing law is shown to be diflerent from that which the Legislature supposed it to be, the implication arising from the statute cannot operate as a negation of its existence." With this criticism the M. R. in Pooley v. Driver expresses his concurrence.] With respect to nominal 2^a>'tncrship : — that takes place Avhere a person, having no real interest in the concern, allows his name to be held out to the world as that of a partner, in which case the law imposes on him the responsi- Inlity of one to persons who have had dealings with the firm of which he has hekl himself out as a member. (See the judgment of the Lord Chief Justice in the principal case; and Guidon v. Bohson, 2 Camp. 302.) It has, as we have seen, been laid down in Young v. Axtell, cited in the text, that It makes no difference in such a person's liability that the party seeking to charge him did not know at the time when he gave credit to the firm that he had so held himself out. But this position appears very questionable ; for the rule which imposes on a nominal partner the responsibilities of a real one is framed in order to prevent those persons from being defrauded or deceived who may deal with the firm of which he holds himself out as a member, on the faith of his apparent responsibility. But where the person dealing with the firm has never heard of him as a component part of it, that I'eason no longer applies, and there is not wanting authority opposed to such an extension of the rule respecting a nominal partner's lialjility. " If it could be proved," says Parke, J., " that the defendant held himself out — not to the world, for that is a loose expression — but to the plaintiff himself , or under such cii'cumstances of pub- licity as to satisfy a jury that the plaintiff knew of it, and believed him to be a partner, he would be liable." Dickenson v. Valpy, 10 B. & C. 140. So too in Shott v. Streatfield, 1 M. & Rob. 9, where the question was whether Green was liable jointly with Streatfield, a witness proved that he had been 1202 WAUGH V. CAKVKU. told in (Jrc'cn's presence that Green had become a partner. He was then asked whetlier he hud repeated the information, on wliieli Camphfll ohji-etetl that this was not eviilence, nnless it were siiown that the defendants, or one of them, were present when it was repeated; .s.(/ per Lonl Tenterden, C. J., '• I tiiink it is; because othenciae it icill be saul jirmeutly, that irhat icaa said was roitjiiifd to the icitness, and that the plain tiff ruuld tint have acted on it." In A/derson v. Popes, 1 Camp. 404, n., it was held, that a man could not be cliari?ed as a i)artner by one who, when he contracted, had notice that he was but nominally so. The reason of this must have been, because he could not have been deceived, or induced to deal witli the llrm, by any reliance on the nominal partner's apparmt responsibility. And the same reason precisely applies, whether the false impression on the customer's mind have lu-en put an end to by a notice, or whether in conse(iuence of his i^rnorance that the nominal i)artner's name liad been used, no false imj)ression ever existed (m his mind at all. (See Carter v. Whalley, 1 B. & Ad. 11; Ford v. W'hitnutrch, Exch. Mich. 1841 ; 1 Hurls. & Walm. 53; Pott v. Eijton, 3 C. B. 32; [Edmuml- snn V. Thompson, 31 L. .1. Kxch. 207; Stephens v. Pei/nnlds, 2 Fost. & Fin. 147.]) However, in order to tix a person with this description of liability, no par- ticular mode of hnhlinj; himself out is requisite. If he ilo acts, no matter of what kintl, sulllcient to induce others to believe him a |)artner, he will be liable as such. See Spencer v. liillimi, 3 Camp. 310; Parker v. liarkir, 1 B. & B. !>; 3 More, 22t; ; [(litrneij v. Erans, 3 II. & N. 122; Ex parte Good, in re Arniilaije, ."i Ch. 1). 4(;. 4(ril)es himself as a jiartner with another in one particu- lar business does not thereby hold himself out as such in any other business which that other may happen to i)rofess. Pe Berkom v. Smith, 1 Esp. 2!); Pidr/wiif v. Philip, '> Tyrw. 131. Nor is a i)erson liable as a nondnal jtartner, because others, without his consent, use his name as that of a member of their llrm, even althoufrh he may have previously belon;;ed to it, provided he have taken the proper steps to notify his retirement. Netrsome v. Coles, 2 Camp. 617. Nor, as has been already stated, can a man be charged as a member of the firm by one who had express notice that he was but nominally so. Alderson V. Popes, 1 Camp. 404, in notis. The test of partnership laid down. — The law in America u})Oii this subject is in an unsatisfactory state. The doctrine laid down in Waugh v. Carver, that an indefinite participation in profits makes one a partner as to third persons, because by such participation the fund on which creditors rely is dimin- ished, was formerly quite generally accepted in this country, though not ahvays without some modification ; 3 Kent, * 27 ; Dob V. Halsey, 16 John. 40; Manhattan Brass Co. v. Sears, 45 N. Y. 797 ; Leggett v. Hyde, 58 N. Y. 272 ; s. c. 17 Am. Rep. WAUGH V. CARVER. 1208 244, Wood V. Vallette, 7 Ohio St. 172; Bromley v. Elliot, 38 K. H. 287, 306 ; Parker v. Caiifield, 37 Conn. 250 ; Everett v. Chapman, 6 Conn. 347 ; Bigelow v. Elliot, 1 Cliff. 28 ; Winship V. Bank of U. S., 5 Pet. 560 ; Appleton v. Smith, 24 Wis. 331 ; Sheridan v. Medara, 10 N. J. Eq. 469 ; Lengle v. Smith,' 48 Mo. 276 ; Bailey v. Clark, 6 Pick. 372 ; Sager v. Tupper^ 38 Mich. 258 ; Strader v. White, 2 Neb. 348 ; Dalton City Co. V. Hawes, 37 Ga. 115 ; Buckner v. Lee, 8 Ga. 285 ; Brown v. Higginbotham, 5 Leigh (Va.) 583 ; Cox v. Delano, 3 Dev. N. C. 89; Rowland v. Long, 45 Md. 439; Purviance v. McClintee, 6 S. & R. 259 ; Brigham v. Dana, 29 Yt. 1, 9 ; Wright v. Davidson, 13 Minn. 449; Brown v. Cook, 3 N. H. 64. For a late case which quotes with approval the opinion that a communion of profits implies a communion of loss, see Bloomfield v. Buchanan, 13 Or. 108 (1885). Limitations of rule: gross and net profits. — Among the limita- tions or modifications which have been made upon the broad rule of Waugh v. Carver, is the idea that while a sharing of net profits makes one liable as a partner, such liabilities do not follow from a sharing of gross profits ; St. Denis v. Saunders, 36 Mich. 369 ; Gass v. New York, Providence & Boston R. R. Co., 99 Mass. 220 ; Chapman v. Eames, 67 Me. 452 ; Cutler v. Winsor, 6 Pick. 335; Turner v. Bissell, 14 Pick. 192; Chase V. Barrett, 4 Paige, 148, 159; Bowman v. Bailey, 10 Yt. 170; Pattison v. Blanchard, 1 Seld. 186; Merrick v. Gordon, 20 N. Y. 93 ; Butterfield v. Lathrop, 71 Pa. St. 225 ; Ellsworth v. Tartt, 26 Ala. 733. This distinction between sharing gross and net profits as a test of partnership, has been severely criticised ; Story on Part., 7th ed. § 36 n. ; 3 Kent, *25, n. [12th & 13th eds.]. Some cases, wdiile apparentl}^ following the distinction be- tween gross and net profits, have so modified it as to place the decisions on firmer grounds ; Thompson v. Snow, 4 Grnl. 264 ; Loomis V. Marshall, 12 Conn. 69 ; Donnell v. Harshe, 67 Mo. 170 ; Musser v. Brink, 68 Mo. 242. A division of profits means net profits ; Connolly v. Davidson, 15 Minn. 519. Sharing profits as profits. — Another distinction appUed to the rule of Waugh v. Carver, and closely connected with that between gross and net profits, was that one was to be held liable as a partner when he was entitled to a share of the profits 1204 AVAl (ill W ( AKVKK. as profits, l)ut not if lie was merely to receive payments which were to vary with the profits, or a sum equal to a certain part of the 2>i"ohts. This gave opj)ortunity for niakiiii^ extri'iiicly fine distinctions; Brockway v. Huniap, !•! JJarh. oOll ; Picrsoii V. Steinmyer, 4 Rich. L. 309; Looinis v. ^hirshall, 12 Conn. CD; Turner v. liissell, 14 Pick. 192; Miller v. Bartlctt, 15 S. & U. 1:57; Irwin v. Bidwell, 72 Pa. St. 244; Eastman r. Clark, 53 N. II. 27(3; Ben.son v. Ketchum, 14 N. Y. 331, 355; Miller v. Bartlett, 15 S. & 11. 137. For other cases showing moditica- tions of the rule in Waugh v. Carver see cases cited infra in regard to a share of tlu^ profits being given as compensation for services, as rent, as interest, k.Ve. Modification of rule in different states. — Some states have iiioiUruMl the rul(! as laid down in Waugh v. Carver, or have reversed the earlier decisions which followed that case. New York : The general i-ule of Waugh i\ Carver is still stated to be law, but certain limitations have been made ; Cen- tral City Savs. Bank v. AValker, 66 N. Y. 424 ; Richardson r. Ilugliett, 76 Id. 55; s. c. 32 Am. Rep. 267; Eager v. Crawford, 76 id. 97; Burnett v. Snyder, 81 Id. 550 ; s. c. 37 Am. Rep. 527. This case holds: "We have in this state adhered to the general doctrine established by the earlier English cases ; and although it proceeds upon reasons which have not been considered en- tirely satisfactory, it was applied by this court in the recent case of Leggett v. Hyde, 58 N. Y. 272. But the participation in the profits of a trade which makes a person a partner as to third persons is a participation in the profits as such, under cir- cumstances which give him a proprictar}' interest in the profits before division as principal trader, and the right to an account as partner and a lien on the partnership assets in preference to individual creditors of the partner." This opinion does not seem consistent with itself. It is held in New York that one does not become liable as partner because he is " to receive a share of the profits as a compensation for his services, or for money loaned for the benefit of the business." Curry v. Fow- ler, 87 N. Y. 33 ; Cassidy v. Hall, 97 Id. 159. Ohio : Harvey v. Childs, 28 Ohio St. 319 approves Cox v. Hickman, instead of following "Wood v. Valette, 7 Ohio St. 172. See Farmers' Ins. Co. v. Ross, 29 Ohio St. 429. Pennsylvania : The statute of April 6th, 1870 (Purdon 1299, pi. 16, and 1300, pi. 17), provides that one may receive a share WAUGH V. CARVER. 1205 of the profits as interest on money loaned or as compensation for services, without becoming liable as partner. Hart v. Kelley, 83 Pa. St. 286. The broad rule of Waugli v. Carver had been modified prior to the statute. Irwin v. Bidwell, 72 Pa. St. 244 ; Edwards v. Tracy, 62 Pa. St. 381. New Hampshire: Eastman v. Clark, 53 N. H. 276; s. c. 16 Am. Rep. 192 overthrows the old rule and follows Cox v. Hickman. Connecticut: It is now held that the sharing of profits as profits is primd facie proof that one is liable as partner, but that a share of the profits may be received as compensation for services, as rent, and in some other cases without creating a partnership even as regards third persons. Parker v. Canfield, 37 Conn. 250 ; Citizens' Bank v. Hine, 49 Conn. 236. But the idea that one who takes part of the j^rofits diminishes the fund on which creditors rely, does not seem to be wholly abandoned. Citizens' Bank v. Hine, supra, p. 241. Wisco7isin : The rule of Waugh v. Carver has been adopted ; Appleton V. Smith, 24 Wis. 331 ; Rosenfield v. Haight, 53 Wis. 260. But an exception in regard to receipt of profits as com- pensation for services is established ; Nicholaus v. Thielges, 50 Wis. 491 ; Ford v. Smith, 27 Wis. 267. Massachusetts : The rule is stated to be that a person who has not agreed to be a partner, nor held himself out as a partner, is yet liable as a partner to third persons, if by the agreement under Avhich the business is carried on, he has an interest in a certain share of the profits as profits and a lien on the whole profits as security for his share ; Pratt v. Langdon, 97 Mass. 97 ; 12 Allen 546 ; Holmes v. Old Colony R. R. Co., 5 Gray 58; La Mont v. Fullam, 133 Mass. 583 ; Pettee v. Appleton, 114 Id. 114 ; Dame v. Kempster, 15 N. E. Rep. 927. See also cases in other states where a somewhat similar rule has been adopted. Champion v. Bostwick, 18 Wend. 175 ; Reynolds v. Hick, 19 Ind. 113 ; Sankey v. Columbus Iron Works, 44 Ga. 228 [a case under the code] ; Delaney v. Dutcher, 23 Minn. 373; Bradshaw V. Apperson, 36 Tex. 133; Rowland v. Long, 45 Md. 439; Camp- bell V. Dent, 54 Mo. 325 ; Bigelow v. Elliot, 1 Cliff. 28 ; Chap- line V. Conant, 3 W. Va. 507. For criticism of this rule, see Story on Part., 7lli ed., § 49 n. In Fitch v. Harrington, 13 Gray 468, there was an agreement by one partner with a third person that he should share a part of the profits of the firm, 1200 WAUGH V. CAKVEK. and the court said, " An agreement between one co-partner and a third person, that he shall participate in the profits of the firm, as profits, renders him liable, as a partner, to the creditors of the firm, although as between himself and the memljers of the firm he is not their co-partner ; but if such third person by his agree- ment with one member of the firm is to receive compensation for his labor, services, &c., in proportion to the profits of the business of the firm, without having any special lien on the profits, to the exclusion of other creditors, he is not liable for the debts of the firm." See Rockafellow v. ]\Iiller, 14 N. K. Rep. 433. Where several persons signed articles of association, intending to form a corporation, but the association failed to become a corporation because the re({uirements of the statute were not complied with, and certain persons carried on the l)nsi- ness intended to be carried on In' the corporation as agents of the proposed coi-poration, with knowledge of all the defendants, it was held that the defendants were not liable as partners, whether they had subscribed for stock of the proposed corpora- tion or not, as "no such relation was contemplated by any of the parties " ; Ward v. Brigham, 127 Mass. 24. Neiu Jcrxei/: Wild v. Davenport, 48 N.J. L. 129, follows Cox V. Hickman. 3Iissouri : In Donnell r. Ilarshe, ()7 Mo. 170, there was an agreement that one should occupy and cultivate a farm and that the crops should be divided e([ually between the occupant and the owner. It was held that no partnership was necessarily created, as something more than mere sharing of profits is essen- tial to make a partnership. See also 68 !Mo. 242. In Kellog Newspaper Co. v. Farrell, 88 Mo. 594, the court quoted from McDonald v. Matne}^ 82 Mo. 358* " That a mere participation in profits and loss does not necessarily constitute a partnership between the parties so participating. ... It is a question of intention. . . . Each case must be determined upon its own peculiar facts." See also Clifton v. Howard, 89 Mo. 192. In Kelly V. Gaines, 24 Mo. App. 506, it was held that in oider to create a partnership there must not only be a sharing of profits, but each person must have an interest in the profits as principal trader. JlicMgan. : The later Michigan cases follow Cox v. Hickman, and late English cases ; Beecher v. Bush, 45 Mich. 188 ; Col- well V. Britton, 59 ^Vlich. 350. WAUGH V. CARYER. 1207 Georgia : The Code, § 1890, provides, "A joint interest in the partnership property, or a joint interest in the profits and losses of the business, constitutes a partnership as to third persons. A common interest in the profits alone does not." See Dalton City V. Hawes, 37 Ga. 115 ; Camp v. Montgomery, 75 Ga. 795, and cases cited. Present American rule. — - Under the influence of the severe criticism made upon the I'ule laid down in Waugh v. Carver, and particularly since the case of Cox v. Hickman, 9 C. B. N. S. 47, 8 H. of L. C. 268, 30 L. J. C. P. 125, decided in 1860, the American cases have very largely abandoned the doctrine of Waugh V. Carver. The tendency of the courts in this country is to hold that one is not liable to third persons as a partner unless there is a partnership inter sese, except where one has held himself out as a partner, so that the doctrine of estoppel applies. In deciding whether there is a partnership inter sese the effect of the whole contract between the parties must be considered, and the relation the parties have assumed to each other must be determined by reference to all its parts. The fact that there is in the contract an agreement to share profits is strong, though not conclusive, evidence of partnership, and such an agreement will establish the partnership in the absence of other controlling evidence ; Meehan v. Valentine, 29 Fed. Rep. 276 ; In re Francis, 2 Sawyer 286 ; s. c. 7 Bank. Reg. 359; Be Ward, 8 Rep. 136 ; Culley v. Edwards, 44 Ark. 423 ; Le Fevre v. Castagnio, 5 Col. 564 ; Vinson v. Beveridge, 3 Mac- Arthur (D. C.) 597 ; Smith v. Knight, 71 111. 148 ; s. c. 22 Am. Rep. 94; Williams v. Soutter, 7 Iowa 435; Chaffraix v. Laffite, 30 La. An., Part 1, 631 ; Beecher v. Bush, 45 Mich. 188 ; s. c. 40 Am. Rep. 465 ; Kellog Newspaper Co. v. Farrell, 88 Mo. 594 ; Col well v. Britton, 59 Mich. 350 ; s. c. 26 N. W. Rep. 538 ; Parchen v. Anderson, 5 Montana, 438 ; Wild v. Davenport, 48 N. J. L. 129 ; Hart v. Kelley, 83 Pa. St. 286 ; Boston &c'., Smelt- ing Co. V. Smith, 13 R. i. 27 ; s. c. 43 Am. Rep. 3. In Be Randolph, 1 Out. App. 315 ; Sankey v. Columbus Iron Works, 44 Ga. 228 (a case on construction of the code) ; Eastman v. Clark, 53 N. H. 276; Blair v. Shaeffer, 33 Fed. Rep. 218; Harvey v. Childs, 28 Ohio St. 319 ; Clifton v. Howard, 89 J\Io. 192 ; Kelley v. Gaines, 24 Mo. App. 506 ; Sailors v. Nixon- Jones Printing Co., 20 111. App. 509; Wilcox v. Matthews, 44 Mich. 192; Ilolden v. French, 68 Me. 241; Fourth Nat'l. Bank 1208 WAUGH V. CAJtV^EU. V. Altheiiuer, 91 Mo. 190. Sue also Darling v. Belhouse, 19 U. C. C B. 2G8. While the fiiet thiit one is entitled to a .share of the prolit.s is not eonclusive evidenee of partnership, yet it has been held that one cannot be a partner unless he lias a right to share in the profits; in other words, communion of profits is necessary to a partnership ; Irvin v. N., C. & St. L. Ry. Co., 92 111. 108; Jones v. Howard, .')3 :Miss. 707. Cases where sharing profits does not create partnership. — A sharing of piolits docs not make one a partner, even as regards third persons, in the following cases. Share of profits as compensation for services. — A. Where a share in the profits is given as com])en.sation lor services; Buzard v. Greenville Nat'l. Bank, 67 Tex. 83; s. c. 2 S. W. Rep. 54 ; Mason v. Hacket, 4 Nev. 420 ; Marsh v. N. W. Nat'l Ins. Co., 3 BLss. 351; Donley v. Hall, 5 Bush (Ky.) 549; Holmes v. Old Colony R. R. Co., 5 dray 58; Bigelow v. Elliot, 1 Cliff. 28; Vinson v. Beveridge, 3 MacArthur (D. C.) 597; Pierson v. Steinmyer, 4 Rich. L. 300, 319; Leggett v. Hyde, 58 N. Y. 272; Wheeler v. Farmer, 38 Cal. 203; Holden v. French, 68 Me. 241 ; Parker v. Fergus, 43 111. 4:',7 ; Burton v. Good- speed, 09 111. 237; Edwards v. Tracy, (52 Pa. St. 374; Muzzy V. Whitney, 10 Johns. 22G ; McArthur v. Ladd, 5 Ohio St. 514; Ellsworth V. Pomeroy, 26 Ind. 158 ; Morrison v. Cole, 30 Mich. 102; Dale v. Pierce, 85 Pa. St. 474; Ilolbrook v. Obeine, 56 Iowa 324 ; Le Fevre v. Castagnio, 5 Col. 564 ; Shepard v. Pratt, 16 Kan. 209; Commonwealth v. Bennett, 118 Mass. 443; Mauney v. Colt, 86 N. C. 463 ; Newman v. Bean, 21 N. H. 93 ; Loomis V. Marshall, 12 Conn. 69 ; Berthold v. Goldsmith, 24 How. 536; Missouri &c., R. Co. v. Johnson, 7 S. W. Rep. 838; Randle v. State, 49 Ala. 14 ; Morgan v. Stearns, 41 Vt. 398 ; Wil- kinson V. Gett, 7 Leigh (Va.) 115 ; s. c. 30 Am. Dec. 493 ; Price V. Alexander, 2 G. Greene (Iowa) ; s. c. 52 Am. Dec. 526 ; Day V. Stevens, 88 N. C. 83; Chapman v. Liscomb, 18 S. C. 233. But some cases have held that if one was entitled to a share of the profits, though it was intended as compensation for ser- vices, yet he became of necessity, because of his sharing in the profits, liable as a partner; 1 A. K. Marshall (Ky.) 181; Taylor v. Terme, 3 Har. & J. 505. See also Rowland v. Long, 45 Md. 439 ; Strader v. White, 2 Neb. 348 ; Motley v. Jones, 3 Ired. Eq. 144; Purviance v. McClintee, 6 S. & R. 259; Ditsche V. Becker, 6 Phil. 176 : Beckwith v. Talbot, 2 Col. 639. An WAUGH V. CAP.VEE. 1209 agreement that a person shall have a part of the profits as salary will not prevent his being held to be a partner if the whole agreement shows that a partnership was intended ; Brigham v. Clark, 100 Mass. 430. Share of profits as rent. — B. Where a share of the profits is given as rent or for the use of personal property ; Bigelow v. Elliot, 1 Cliff. 28 ; Beecher v. Bush, 45 Mich. 188 ; s. c. 40 Am. Rep. 465; Holmes v. Old Colony R. R. Co., 5 Gray 58; McDon- ald V. Battle House Co., 67 Ala. 90; s. c. 42 Am. Rep. 99; Quackenbush v. Sawyer, 54 Cal. 439 ; Parker v. Fergus, 43 111. 437. See Smith v. Vanderburg, 46 Id. 34, where a portion of the profits was given as compensation for a secret and for stock on hand ; Keiser v. State, 58 Ind. 379 ; Reed v. Murphy, 2 G. Greene (Iowa) 574 ; Thompson v. Snow, 4 Me. 264 ; s. c. 16 Am. Dec. 263, a case where a vessel was let. See, also, 57 Id. 543 ; Thayer v. Augustine, 55 Mich. 187 ; Ferine v. Hankieson, 11 N. J. L. 181 ; Heimstreet v. Howland, 5 Den. 68, where a ferry was let for part of the profits ; Johnson v. Miller, 16 Ohio 431 ; Irwin v. Bidwell, 72 Pa. St. 244, 251 ; Brown v. Jaquette, 94 Id. 113 ; s. c. 39 Am. Rep. 770 ; England v. England, 1 Bax- ter 108 ; Tobias v. Blin, 21 Vt. 544 ; Felton v. Deall, 22 Id. 170 ; Bowyer v. Anderson, 2 Leigh (Va.) 550 ; Chapline v. Conant, 3 W. Va. 507 ; Haydon v. Crawford, 3 U. C. Q. B. (old ser.) 583 ; Hawley v. Dixon, 7 U. C. Q. B. 218; Great Western Ry. Co. V. Breston & Berlin Ry., 17 Id. 477 ; La Mont v. FuUam, 133 Mass. 583. But see contra, Dalton City Co. v. Dalton Manf. Co., 33 Ga. 243 ; Holifield v. White, 52 Ga. 567 ; Adams V. Carter, 53 Id. 160. Share of profits as interest. — C. Where a share of the jDrofits is given as interest ; Neihoff v. Dudley, 40 111. 406 ; Smith v. Vanderberg, 46 Id. 34 ; Lintner v. Milliken, 47 111. 178 ; Eshle- man v. Harnish, 76 Pa. St. 97. [See Pa. Statute, supra.^ But some cases following the earlier English decisions hold that one who takes a share of the profits as interest, thereby becomes lia- ble as a partner to third persons. Sheridan v. Medara, 10 N. J. Eq. 469 ; Pierson v. Steinmyer, 4 Rich. L. 309 ; Wood v. Valette, 7 Oliio St. 172 ; Parker v. Canfield, 37 Conn. 250 ; McDonald v. Millandon, 5 La. 403 ; Rosenfield v. Haight, 53 Wis. 260. In Sheridan v. Medara and Pierson v. Steinmyer, supra, the partner- ship was held to be created when the contract was usurious. But it has been held that a partnership will not be inferred because 1210 WAUtMl V. CAKVER. a contract for interest is usurious. Plunkett v. Dillon, 4 Del. Ch. 198 ; Richards v. Hughitt, 70 N. Y. 55 ; s. e. 82 Am. Rep. 267 ; Irwin v. Bidwell, 72 Pa. St. 244. An excessive share of the profits has, however, been held to create a partnership ; Kargrave v. Conroy, 19 N. J. Eq. 281 ; Oppenheinier v. Cleni- mons, 18 Fed. Rep. 886; Brigham v. Dana, 29 Vt. 1, 9 ; 72e Francis, 2 Sawy. 286; s. c. 7 Bank. Reg. 359; I'arker v. Can- field, 37 Conn. 250; s. c. 9 Am. Rep. 317. In order that a share of the profits as interest should not create a partnership, there should be a hand fide loan which is to be repaiil in any event; Harris v. Ilillegass, 54 Cal. 463; Wood v. Valette, 7 Ohio St. 172; Brigham v. Dana, 29 Vt. 1, 9; Rosenfield v. Haight, 53 Wis. 260 ; s. c. 40 Am. Rep. 770. If the loan is a mere device to avoid the liability of partnership, then tlie parties will be held to be ])artners : In Re Francis, 2 Sawy. 286. Share of profits from funds left in business. — I). Where lega- tees receive profit« from funds left in a business, by order of testator, they do not become liable for the debts of the business; Jones V, Walker, 103 U. S. 444; Pitkin v. Pitkin, 7 Conn. 307; s. c. 18 Am. Dec. 111. See Heighe v. Littig, 63 Md. 391 ; Phillips V. Samuel, 76 Mo. •)57. But where, under partneiship articles, in case of the death of one partner his childien were to succeed to his interest until the expiration of the partnership contract, and they did so succeed, on their father's death, it was held that they became liable to creditors as partners ; Nave v. Sturges, 5 Mo. App. 557. Agreement that losses shall not be shared. — Where there is an agreement to share profits, the niere fact there is an agree- ment that a certain person is not to share losses does not relieve him from liability as a partner as to third persons if otherwise the contract shows him to be such ; Pollard v. Stanton, 7 Ala. 761 ; Camp v. Montgomery, 75 Ga. 795 ; Consolidated Bk. v. State, 5 La. Ann. 44 ; Robbins v. Laswell, 27 111. 365 ; Rowland V. Long, 45 Md. 439 ; Bank of Rochester v. Monteath, 1 Den. 402 ; Walden v. Sherburne, 15 Johns. 409. See, also, Clift v. Barrow, 15 N. E. Rep. 327. Contra, Whitehill v. Shickle, 43 Mo. 537. Holding out as partner. — As has already been intimated, one who has held himself out as a partner or allowed himself to be so held out is liable as a partner, though as a matter of fact he was not actually a partner ; Smith v. Hill, 45 Vt. 90 ; Stim- WAUGH Y. CAEVER. 1211 son V. Whitney, 130 Mass. 591 ; Dailey v. Coons, 64 Ind. 545 ; Carmichael v. Greer, 55 Ga. 116 ; Cothill v. Van Duzen, 22 Vt. 511; In re Jewett, 15 N. B. R. 126. But " one who had no knowledge or belief that the defendant was held out as a partner, and did nothing on the faith of such knowledge or belief, cannot charge him with liability as a part- ner, if he was not a partner in fact " ; Thompson v. First Nat'l Bk., Ill U. S. 529. Effect of whole agreement considered. — If the whole agree- ment shows the parties to have assumed the relation of partners, there will be held to be a partnership though the parties did not intend to be partners, and even though they had provided that they were not to be so considered ; Haas v. Root, 26 Hun 632 ; Rosenfield v. Haight, 53 Wis. 260 ; Cooley v. Broad, 29 La. An. 345. But an agreement that there shall be no partnership has been held valid between the parties ; Gill v. Kuhn, 6 S. & R. 338, 338 ; Jordan v. Wilkins, 3 Wash. C. Ct. 110. And also against third persons who had knowledge of the agreement ; Hastings V. Hopkinson, 28 Vt. 108 ; Chapman v. Devereux, 32 Id. 616, 623. See, also, Baily v. Clark, 6 Pick. 372. CUTTER V. POWELL. TRINITY— m (iEO.:\. [reported G t. k. 320.] If a sailor hired for a voyage take a promi88ory note from his employer for a certain sum,, provided he proceed, continue, and do his duty on hoard for the voyage, and htfore the arrival of the ship he dies, no tvayes can be claimed either on the contract or on a quantum meruit. To assumpsit for work and labour done by the intestate, tlie defendant pleaded the general issue. And at the trial at Lan- caster, the jury found a verdict for the plaintiff for 31/. 10s., subject to the opinion of this court on the following case : — The defendant being at Jamaica, subscribed and delivered to T. Cutter, the intestate, a note, whereof the following is a copy: " Ten days after the ship Governor Parry, myself master, arrives at Liverpool, I promise to pay to Mr. T. Cutter the sum of thirty guineas, provided he proceeds, continues, and does his duty, as second mate, in the said ship from hence to the port of Liverpool. Kingston, July 31st, 1793." The ship Governor Parry sailed from Kingston on the 2nd of August, 1793, and arrived in the port of Liverpool on the 9th of October follow- ing. T. Cutter went on board the ship on the 31st of July, 1793, and sailed in her on the 2nd day of August, and pro- ceeded, continued, and did his duty as second mate in her from Kingston until his death, which happened on the 20th of September following, and before the ship's arrival in the port of Liverpool. The usual wages of a second mate of a ship on such a voyage, when shipped by the month out and home, is four pounds per month ; but when seamen are shipped by the run from Jamaica to England, a gross sum is usually given. 1212 CUTTER V. POWELL. 1213 The usual length of a voyage from Jamaica to Liverpool is about eight weeks. This was argued last term b}- J. Hayu'ood for the plaintiff, but the court desired the case to stand over, that inquiries might be made relative to the usage in the commercial world on these kinds of agreements. It now appeared that there was no fixed settled usage {a) one way or the other ; but several instances were mentioned as having happened within these two years, in some of which the merchants had paid the whole wages under circumstances similar to the present, and in others a proportionable part. The case was now again argued by Chamhre for the plaintiff, and Wood for the defendant. Arguments for the plaintiff. — The plaintiff is entitled to recover a proportionable part of the wages on a quantum meruit, for work and labour done by the intestate during that part of the voyage that he lived and served the defendant ; as in the ordinary case of a contract of hiring for a year, if the servant die during the year, his representatives are entitled to a pro- portionable part of his wages. If any defence can be set up against the present claim, it must arise either from some known general rule of law respecting marine service, or from the particular terms of the contract between these parties. But there is no such rule applicable to marine service in general as will prevent the plaintiff's recovering, neither will it be found, on consideration, that tliere is anything in the terms of this contract to defeat the present claim. It is indeed a general rule that freight is the mother of Avages (/>) ; and therefore if the voyage be not performed, and the owners receive no freight, the sailors lose their wages ; though that has some exceptions where the voyage is lost by the fault of the owners, as if the ship be seized for a debt of the owners, or on account of having contraband goods on board : in either of which cases the sail- ors are entitled to their wages, though the voyage be not per- formed. Vin. Abr. "Mariners," 235. But here the rule itself does not apply, the voyage having been performed, and the (a) See the notes to Wigglesworth on the earninc: of freight. See The V. DaUison, ante, vol. i. Mercliant Shipping Act, 1854 (17 & (6) See, on that .subject. Appleby 18 Vict. c. 104), s. 183. The rule V. Dods, 3 East, 300; The Neptune, 1 mentioned in the text never applied Hagg. 227. [The right of a seaman to the wages of the master. Hawkins to wages is now no longer dependent v. Twizell, H E. & B. 883.J 1214 CrTTKK \. I'nWKLL. owners having earned their ftei; but that is founded upon puhlie j)olu y, and was introtluee), Lord Holt held, that a seaman, who was impressed before the ship returned to tiie port of delivi-ry, might recover wages jwro tanto. Neither is there anything in the terms of this contract to prevent the [daintiff's recovering on a ijuuHtum meruit. The note is a set-urity, and not an agreement ; it is in the form of a promissory note, and was given by the master of the ship to the intestate to secure the jiayment of a gross sum of money, on condition that tiie intestate should Ihj able to, and should aitually, perform a given duty. The condition was inserted to i)revent tiie desertion of the intestate, and to ensure his good I'onduct during the voyage. And in cases of this kind, the contract is to be construed liberally. In Edinirth v. CJillif (r), where the mariners had given bonds to the ICast India Company not to demand their wagi's unless the ship leturned to the port of London, it was held that as the ship had saiU'd to India, and had there delivered her outward-bound cargo, the mariners were entitled to their wages on the outward- bound voyage, though the ship was taken on her return to England. This note cannot be construed literally, for then the intestate would not have been entitled to anything, though he had lived and continued on board during the whole voyage, if he had been disabled by sickness from performing his duty. But even if this is to be considered as a contract between the parties, and the words of it are to be construed strictly, still the plaintiff is entitled to recover on a quantum meruit, because that contract does not apply to this case. The note was given for a specific sum to be paid in a given event ; but that event has not happened, and the action is not brought on the note. The parties provided for one particular case : but there was no express contract for the case that has happened ; and therefore the plaintiff may resort to an undertaking which the law (ffl) [See Edward v. Trevethick, 4 {h) 2 Lord Kaym. 1211. E. & B. 59.] (c) 2 Vern. 727. CUTTER Y. POWELL. 1215 implies, on a quantum meruit for work and labour done by the intestate. For though, as the condition in the note which may be taken to be a condition precedent, was not complied with, the plaintiff cannot recover the sum which was to have been paid if the condition had been performed by the intestate, there is no reason why the representative of the seaman, who per- formed certain services for the defendant, should not recover something for the work and labor of the intestate, in a case to which the express contract does not apply. Aro-uments on behalf of the defendant. — Nothing can be more^'clearly established than that where there is an express contract between the parties, they cannot resort to an implied one. It is only because the parties have not expressed what their agreement was, that the law implies what they would have agreed to do had they entered into a precise treaty ; but when once they have expressed what their agreement was, the law will not imply any agreement at all. In this case the^ in- testate and the defendant reduced their agreement into writing, by the terms of which they must now l)e bound. This is an entire and indivisible contract ; the defendant engaged to pay a certain sum of money, provided the intestate continued to perform his duty during the whole voyage ; that proviso is a condition precedent to the intestate or his representative claim- ing the money from the defendant, and that condition not having been performed, the plaintiff cannot now recover any- thing.'' If the parties had entered into no agreement, and the inte5:ate had chosen to trust to the wages that he would have earned and might have recovered on a quantum meruit, he would only have been entitled to eight pounds; instead of which, he expressly stipulated that he should receive thirty guineas, if he continued to perform his duty for the whole voyage. He preferred taking the chance of earning a large sum, in the event of his continuing on board during the whole voyage, to receiving a certain, but smaller rate of wages for the time he should actually serve on board ; and having made that election, his representative must be bound by it. In the common case of service, if a servant who is hired for a year die in the middle of it, his executor may recover part of his wages in proportion to the time of service (a) ; but if the servant (a) The old law was otherwise; "Contract," pi. 31; and Worth v. Vid. Bro. Abr. " Apportionment," pi. Viner, 3 Vin. Abr. S and 9. 13; ib. "Labourers," pi. 48; ib. 1210 CITTKU V. I'OWKI.L. aj]freed to receive a larger sum than tht- ordinary rate of wages, on the express condition of his serving the whoK' year, his executor would not he entitled to any part of such wages in tlie event of the servant dying before the expiration of the year. The title to marine wages by no means depends on the owners l)eing entitle(l to ficight ; for if the sailors desert, or do not perform their duty, they are not entitled to wages though the owners earn the freight. Nor is it conclusive agjiinst the dcfeinlant that the intestate was prevented fullilling his eon- tract by the act of God; for the same reason would apply to the loss of a shij), which m;;}' eijually happen by the act of Clod, Mini without any default in the sailors ; and yet in that ease the sail<»rs lose their wages. Hut there are other cases that l)ear ciiually hard upon contrai-ting parties, and in which an inno- cent person must suiTcr, if the terms of his contract recpiire it; f'.//., the ti'uant of a Ikuisc who covenants to pay rent, ami who is bound to continue j)aying tin- rent, though the house be burned (h)wn ().) With re- gard to the case cited from '1 Lord Kaym., the case of a mariner impressed is an excepted case, and the reason of that decision was fountled on principles of public policy. Lord Kcni/on, C. J. — I should 1x3 extremely sorry that, in the decision of this case, we should determine against what has been the received opinion in the mercantile world on contracts of this kind, because it is of great importance that the laws by which the contracts of so numerous and so useful a body of men as the sailors are supposed to be guided, should not be overturned. Whether these kind of notes are much in use among the seamen we are not sufliciently informed ; and the instances now stated to us from Liverpool are too recent to form anything like usage. But it seems to me at present that the decision of this case may proceed on the particular words (rt) Vide Bel/our v. Weston, ante. overruled. Hare v. Groves, 3 Anst. 1 T. R. 310. 687. Holtzapffel v. Baker, 18 Ves. (6) Vide Broicn v. QuiKer, Amh\. 115. See Bullock \. Domniitt, G T.li. G19. This doctrine is, however, now 650. CUTTER V. rOWELL. 1217 of this contract and the precise facts here stated, without touching marine contracts in general. That where the parties have come to an express contract none can be implied, has prevailed so long as to be reduced to an axiom in the law. Here the defendant expressly promised to pay the intestate thirty guineas, provided he i^oceeded^ coyitmued and did his duty as second mate in the ship from Jamaica to Liverpool ; and the accompanying circumstances disclosed in the case are, that the common rate of wages is four pounds per month, when the party is paid in proportion to the time he serves, and that this voyage is generally performed in two months. There- fore, if there had been no contract between these parties, all that the intestate could have recovered on a quantum vieruit for the voyage would have been eight pounds ; whereas here the defendant contracted to pay thirty guineas, provided the mate continued to do his duty as mate during the whole voy- age, in which case the latter would have received nearly four times as much as if he were paid for the number of months he served. He stipulated to receive the larger sum if the whole duty were performed, and nothing unless the Avhole of that duty were performed: it was a kind of insurance. On this particular contract my opinion is formed at present; at the same time I must say, that if we were assured that these notes are in universal use, and that the commercial world have re- ceived and acted upon them in a different sense, I should give up my own opinion. Ashurst, J. — We cannot collect that there is any custom prevailing among merchants on these contracts ; and therefore we have nothing to guide us but the terms of the contract itself. This is a written contract, and it speaks for itself. And as it is entire, and as the defendant's promise depends on a condition precedent to be performed by the other party, the condition must be performed before the other party is entitled to receive anything under it. It has been argued, however, that the plaintiff ma}^ now recover on a quantum meruit ; but she has no right to desert the agreement ; for wherever there is an express contract the parties must be guided by it, and one party cannot relinquish or abide by it as it may suit his advan- tage. Here the intestate was, by the terms of his contract, to perform a given duty, before he could call upon the defendant to pay him anything : it was a condition precedent without 1218 CUTTKK V. roWELL. j)erf()rming whicli tlic dt ri'iidiiiit is lujt lijihli-. Aiul that Hcems to me to concludt' tin* (lucstion: the intestate did not perform the i(nitract on his part ; he was not iiuU-eil to bhinie for not doiiij^ it; hilt still, as this was a condition [)reet'dent, antl as lie did not ju 1 t'oiiii it, his representative is not t-ntith-d to rei-over. Grotfi, .i. — In this case the plaintifl' nuist either recover on the particnlar stipulation hetween the parties, or on ^onie j^en- eral kii(»wn rule of law, the latter of which has not been much relied ujjon. 1 have looke; wages; tlu)Ugh I must add that the result of my iM(|uiries has not been perfeitly satisfactory, ami therefore I (U) not rely upon it. Tlu- laws of Oleron are extremely favour- able to the seaman ; so much so, that if a sailor, who has agreed for a voyage, be taken ill and put on shore before the voyage is completed, he is nevertheless entitleil to his whole wages, after deducting what has been laid out for him. In the ea.se of Chandler v. Greaves, where the jury gave a verdict for the whole wages to the plaintiff, who was j)ut on shore on account of a broken leg, the court refused to grant a new trial, though I do not know tlu' precise grounds on which the court pro- ceeded. Howevi'r, in this case the agreement is conclusive; the defendant only engageil to pay the intestate on condition of his continuing to do his duty i»n board during the whole voyage ; and the latter w;is to be entitled either to thirty guineas or to nothing, for such was the contract between the parties. And when we recollect how large a i)rice was to be given in the event of the mate continuing on board during the whole voyage, instead of the small sum which is usually given per month, it may faiily be considered that the parties them- selves understood that if the whole duty were performed the mate was to receive the whole sum, and that he was not to receive anything unless he did continue on board during the whole voyage. That seems to me to be the situation in which the mate chose to put himself; and as the condition was not (a) Hil. 32 G. 3, C B. CUTTEK V. POWELL. 1219 complied with, his representative cannot now recover anything. I believe, however, that in point of fact, these notes are in com- mon use, and perhaps it may be prudent not to determine this case until we have inquired whether or not there has been any decision upon them. Lawrence^ J. — If we are to determine this case according to the terms of the instrument alone, the plaintiff is not entitled to recover, because it is an entire contract. In Salk. 65, there is a strong case to that effect ; there, debt was brought upon a writing by which the defendant's testator had appointed the plaintiff's testator to receive his rents, and promised to pay him 100/. per annum for his service ; the plaintiff showed that the defendant's testator died three quarters of a year after, during which time he served him, and he demanded 75Z. for three quar- ters : after judgment for the plaintiff in the Common Pleas, the defendant brought a writ of error, and it was argued that with- out a full year's service nothing could be due, for that it was in nature oi a condition precedent ; that it being one consideration and one debt, it could not be divided : and this court were of that opinion, and reversed the judgment. With regard to the common case of a hired servant, to which this has been com- pared ; such a servant, though hired in a general way, is con- sidered to be hired with reference to the general understanding upon the subject, that the servant shall be entitled to his wages for the time he serves, though he do not continue in the service during the Avhole year. So if the plaintiff in this case could have proved any usage that persons in the situation of this mate are entitled to wages in proportion to the time they served, the plaintiff might have recovered according to that usage. But if this is to depend altogether on the terms of the contract itself, she cannot recover anything. As to the case of the impressed man, perhaps it is an excepted case ; and I believe that in such cases the king's officers usually put another person on board to supply the place of the impressed man during the voyage, so that the service is still performed for the benefit of the owners of the ship. Postea to the defendant. Unless some other information relative to the usage in cases of this kind should be laid before the court before the end of this term : but the case was not mentioned again. lliliO CL'TTEU V. I'OWKLL. Fkw (|iw.siiniis nro of •*>> frir <>f ho much practical iinportuiKf, niul at the saiiii- time .so (lllllLult to solve. a.s tlioM* In wlilcli thu dispute is, whether an action can be hrou;;ltt by one who has enter. .1 int.i a Hpecial contract, part o( whlcli remains unperforme«l. We tlud it laiil down in tlie treatises, that, in certain cases, the |Mii.,,tii- ance of, or reatliness to perform, «Mie slile <»f the contract Is a condition pre- cedent to tile ri;;lit to dennind performance of tlie otiier side. An«i rules are jfiven in tlie text-bo(»ks for the purpose <>( enal)lint; us to distlni;ui>h these cases from anotlier class, in wlii<-h no sucli conditiim exists. Iiut tRe con- tractors are Ixiunil by nuituai independent covenants or promises. (See the n«)tes to I'urilaijK v. (.%/<■, 1 Wms. Sainnl. ."»4.s, and to I'eeUra v. 0/rl>nrk- v. Ci>ffln, l\ M. & ii. hU; see Ituinrhi v. Sash, 1 M. &. W. ■>4.'», and per Tiuiial, C. J., In (iria»tU v. liuhinunn, 3 BluR. N. C. H>-15, citeil in SrnU v. PurkiT, 1 Q. B. H|0, where It was lieUI that the non-perfonn- ance of astipulation, not Ih-Iu^ a condition precetlent to repayment, was no objection to an action of inilrhitnliin ii.tituiitjtuil, for money lent. We also lintl that there are some cases in which work has Iwen done, or ^oods sup|)lied. under a special a^reenu-nt, but not in conformity tliereto, and yet the payment of a com|)ensation^ is enforced l)y action. i)ecause the defendant lias retained and enjoyed tin' bent-lit of that whicli actually was done. FuniKiriirth v. (liirntnL 1 Camp. ;?s. IVr I'arke, J., in lunil v. /iunu, 10 H. & C". 438. And lastly, there are cases In which, even while the special contract remains open, one party has been pcnnltted to put an end to it, and to sue for wliat has been already done uniler it upon a nwinlum nvruit. Withers v. Rfynnlds, 2 B. & Ad. 882; Phtwhe v. Colhitrn, « Bin::. 14; [PnrhU v. Bnihjrr. 1 f. B. N. S. 2;)().] There is nodilllculty in tlndini; cases referal)le to each of the above classes, but the real dilliculty is to iletermine when a case occurs In practice, to which of tliem it is referable. In the present note it will be attempted to deduce froiu the decisions a few rules, likely to prove useful in the resolution of such a dilliculty. The question it is proposed to discuss is as follows: — In ichat cases may an action he brought by a person who has entered into a special contract a/jainst the person icith ichom he has contracted, irhile the plaintiff's oirn side of the con- tract remains unperfonned ? Now [since tliere is a distinction in the nature of the actual rischts of parties to contracts which was well defined by the now ol)solctc forms of action of special and indtbitatus assumpstt, it is still convenient for purposes of analysis to subdivide the above question] into two liranches : — 1. In what cases [might] the action [have been] brought into special assttmpsit [or in other words] upon the contract itself? 2. In what cases might it have been brought in indebitatus assumpsit? CUTTER V. POWELL. 1221 [The meaning of this latter question will l)e considered infra.'] The former of these (iiiestions it ■\voukl be wrong to discuss here at much length, be- cause it has been treated by Serjeant Williams in that clear and satisfactory style which distinguishes his writings, in the notes to Pordage v. Cole, 1 Wms. Saund. 548 ; and Peeters y. Ojne, 2 Wms. Saund. 742. The result of the elaborate discussion contained in those notes is as follows : — There are some special contracts in which the promises upon the one side are dependent on the pi'omises upon the other side, so that no action can be maintained for non-performance of the former, without showing that the plaintifi' has performed, or at least has been ready, if allowed, to perform, the latter, the performance of, or readiness to perform which is said to be a condition precedent to his right of action. Of this description was the case of Morton v. Lamb, 7 T. R. 125, cited 2 Wms. Saund. 552 b. where the declaration averred, that in consideration that the plaintifi" had bought of the defendant 200 quarters of wheat at a certain price, the defendant undertook to deliver it at a certain place in one month from the sale ; and that the plain- tiff was always, for one month from the sale, ready and willing to receive the wheat, but that the defendant did not deliver it. After verdict, the judg- ment was arrested, on the ground that the declaration ought to have averred that the plaintiff was ready and willing to pay the stipulated price upon delivery ; and the court said, that where two concurrent acts w'ere to be done, the party who sues the other for non-performance must aver that he has per- formed, or was ready to perfoinn his own part of the contract. In such cases as the one just cited, the matters to be done upon each side are said to be concurrent acts, because by right they ought to be done at the same time; and a readiness to perform his own side of the contract is a condition pre- cedent to the right of either contractor to sue. Thus in agreements for the sale of real property, where one party agrees to convey, and the other to pay the price, the vendor cannot sue for the money without showing that he was ready to convey ; nor the vendee for a refusal to convey, without showing a readiness to pay the money. See Glazebrook v. Woodroiv, 8 T. R. 366; and see Head v. Baldrcn, 6 A. & E. 459 ; Chanter v. Leese, 4 M. & W. 295. [S. C. in error, 5 M. & W. G98, and White v. Beeton, 7 H. & N. 42.] There are other cases in which one contractor must show a readiness to perform his part before he can sue, but the other need not, as in the case cited in Morton v. Lamb, where a party was to pull down a wall and then to be paid for it : the pulling down was a condition precedent to the right to enforce payment ; but a readiness to pay was not a condition precedent to the right to oblige the defendant to commence the work. See Coombes v. Green, 11 M. & W. 480. Other cases there are in which neither of the contractors is subjected to any condition precedent to his right to enforce performance by the other of his part ; but the promises on each side are independent of what is to be done upon the other. Such was the case of Campbell v. Jones, 6 T. R. 570; in which A. agreed, in consideration of a sum of money, to teach B. a particu- lar method of bleaching for which he, A., had a patent, and to allow B. to exercise that method during the continuance of the patent right. It was held that A. might sue for the money, though he had not instructed B., who might on his side, if he pleased, sue for the neglect to instruct him. In these cases, t\\& promises on the one side, not the performance of those promises, are the consideration for the promises upon the other side. In the former cases of concurrent acts and conditions precedent, the consideration is the performance. \'2'2'2 t I I 1 I l; \ . low i.i.L. not tlu' promisf. Hohnrt, lOr, St »• Franklin v. Miller, 4 A. t E. 599 ; Corrall v. ('iilUll,\ M. & W. 7a4; in/Avt V. .V»;u7/i. 10 M. & W. Huj ; [Fearun v. /ly/M/..,)/. 14 g. U. 1). 7U2; 54 L. J. y. B. 33] ; anil Liater v. /VW'-y. 7 A. & E. 124. where till- point arose on the eonstniction of a private Act of I'nrlinnu-nt. [Hut altiioiit;li, wiiiU' tlic conlruet wum executory, perfornuuice nt n pnrtlcnlnr stipiiliitioM niii;lit iuive l)een n condition precei. ii<-e in reiluc- tlon of ilaniAKCs).] Tlie ipiestlon whether the acts stipulated for In a i;l\iii ii.nirail are con- current, y ascertainint;, if possible, the intention of the parties. 1 T. K. •;4.">. In ordi-r to tliscover that intention, the followlnir rules are laid down by .Serjeant Williams. 1 Wnis. Sauud. .'i4h, in notis. 1. "If a day be appointetl for payment of money, or part of It, or for (loln<; any other act, and the day tj« to happen, or i(«iy happen before the thinn which Is the consideration of the money <»r other act Is to Ik* per- formed, an action may b«> brought for the money, or for not doini; sm-h other act hfj'iirr performance: for it appi-ars that tlw party relied upon his rfintily, and tlld not Intend to nuike the performance a condition precedent : and so It Is where no time is tlxed for the perfonnance of that which is the considi-ra- tion of tlie money or other act." See Mntti>rk v. Kinijliikf, 10 \. &. H. '>o, and Wilks V. Smith, 10 M. & W . MM), where the aifreenient was to sell land for a sum to be paid at the expiration of four years, ami Interest in the meantime half-yearly. It was held that the declaration for an instalment of the interest need not contain an averment of readiness to convey. Sec also Alrj-ntulrr v. Gardnrr. 1 Bin-,'. X. C. (;71 ; I fall v. Ihiinhridijf, .-. g. B. 'iM\ Lord Ilotrdpii v. Simi>si>ii. 10 A. & E. 79:5; I*istorv. Catir, \) M. & W. 31 j; Jiidnon v. limrdtn, 1 Exch. Wl; Jinrett v. Sjtfun'r, 1 Exch. <)47 ; iJirkrr v. Jn'k.inn, »i C. B. lo.l; wliere the delivery of an al)stract of title by the vendor to the vende*- accord- ins; to the terms of the conditions of sale was held not to be a condition i»re- cedeiit to the riijht of the vendor to sue for the purchase-money. [But althouifh " the day for the payment of money," &c., " may," according; to the letter of the contract. '• liappen before the thini; which is the consider- ation of the money or otlier :ict is to be perfonued." still, if it can be sathercd from the wliolc instrument tliat the intention of the parties was that the per- formance of a particular act sliould l)e a conilition i)recedent to the rifiht to be paid llie money, performance must be averred and proved. See linherts v. Brett, liS C. B. 5G1; 6 C. B. X. S. (ill; II II. L. :{;57, where the plaintilf con- tracted to procure a ship and to do certain things furthtrith, the defendant coiitractiu'i to pay 1000/. witlnu seven days after the arrival of the shiji at M. wharf. There was a stipulation tliat bonds for securinj; the performance of the contract should be iriven by each party within ten days from the execu- tion of the indenture, and it was held that the giving the bond was a c(mdi- tion precedent to tlie pl.aintitl's right to be paid the 1000/., for although the seven days from tlie ship's arrival at M. wharf might expire before the ten days witliiu whicli the bond was to be executed, it was clearly the intention CUTTER V. POWELL. 1223 of the partief? that the execution of the bonds shonld be a securit.v to each side for the due performance of the contract, and as such was a condition precedent to the right of either party to sue upon it. " Fortliwith" was con- strued to mean within a reasonable time, liaving regard to all that was to be done bj' ])oth parties.] 2. " When a day is appointed for the payment of money, &c., and the day is to happen after the thing which is the consideration of the money, &c., is to be performed, no action can be maintained for the money, &c., before per- formance." See Glaholm v. Hays, 2 M. & G. 257 ; 2fatthews v. Taylor, 2 M. & G. G67; LucMS v. Godwin, 3 Bing. N. C. 737; Porcher v. Gardner, 8 C. B. 4G1 ; Staunton v. Wood, 16 Q. B. 638 ; Grafton v. Eastern Counties Rail. Co., 8 Exch. 699. In Neale v. Batcliff'e, 15 Q. B. 916, the defendants, who were ten- ants to the plaintifi' of a house and other premises, agreed to keep in repair '■'■the said messuage, buildings, and premises, the same being first put into good tenantable repair and condition " by the plaintiff. The action was brought for the non-repair, and the declaration alleged that the plaintiff had before breach put the premises in repair. At the trial the jury found that the plaintiff" had only put part of the premises in repair, but that part had not been left in repair by the defendants. The court held that the repairing by the plaintiff was a condition precedent to the ol)ligation to repair on the part of the defendants, [(see Coward v. Gregory, L. R. 2 C. P. 153)], and that on this contract the condition could not be divided, so that the plaintiff, not having repaired the whole, could not I'ecover in respect of the non-repair of any part; as to the latter point, see Kingdon v. Cox, 5 C. B. 522 [and Roll v. Cozens, 18 C. B. N. S. 673]. See as to conditions precedent in [leases and in] farming and min- ing contracts, Cannock v. Jones, 3 Exch. 233 (affirmed in Cam. Scacc. 5 Exch. 713, and in Dom. Proc. 3 H. L. C. 700) ; Friar v. Grey, 15 Q. B. 891-901 ; 5 Exch. 584-597 [4 H. L. C. 5G5 ; and Clarke v. Westrope, 18 C. B. 765; Dean and Chapter of Bristol v. Jones, 1 E. & E. 484; Tidey v. Mollett, 16 C. B. N. S. 298; Bastin v. Bidwell, 18 Ch. D. 238; Williams v. Brisco, 22 Ch. D. 441 ; and Edge v. Boileau, 16 Q. B. D. 117 ; 55 L. J. Q. B. 90] ; in contracts for the sale of real property. Dicker v. Jackson, 6C. B. 103 ; Manby v. Cremonini, 6 Exch. 808 [of personalty, Woolfe v. Home, 2 Q. B. D. 355; Bowes v. Shand, 2 App. Cas. 455] ; in charter-parties, Ollive v. Booker, 1 Exch. 416; Oliver v. Fielden, 4 Exch. 135; Rae v. Hackett, 12 M. & W. 724; ^Thompson v. Gillespy, 5 E. & B. 209; Hudson v. Bilton, 6 E. & B. 565; Tarrabochia v. Hickie, 1 H. & N. 183; Behn v. Burness, 1 B. & S. 877, S. C. in error 3 B. & S. 751; Pnst v. Dowie, 5 B. & S. 20, 33; Andrew v. Chappie, 1 C. P. 643; Corkling v. Massey, L. R. 8 C. P. 395; Jackson v. Union Marine Insurance Co., L. R. 10 C P. 125; Tully \. Howling, 2 Q. B. D. 182; Inman Steamship Co. v. Bischoff, 7 App. Cas. 670 ; 52 L. J. Q. B. 169 ; in bills of lading, Duthie v. Hilton, L. R. 4 C. P. 138; in building contracts, Morgan v. Birnie, 9 Bing. 672; Lamprell v. Biller- icay Union, 3 Exch. 283; Roberts v. Bury Improvement Commissioners, L. R. 5 C. P. 310; Jones v. St. John's College, L. R. 6 Q. B. 115; in a guarantee policy, London Guarantee Co. v. Fearnley, 5 App. Cas. 911.] 3. " When a covenant or promise goes only to part of the consideration, and a breach thereof may be paid for in damages, it is an independent cove- nant or promise. And an action may be maintained for the breach of it by the defendant without averring performance, or readiness, in the declara- tion." Such was the case of Stavers v. Curling, 3 Bing. N. C. 355, which is a very strong example, for in that case the defendant's promises were ex- pressed in the contract to be perforraable "on the performance" of the 1224 CUTTEK V. POWELL. plalntitTn, and wore yot hold to have JM-on lnt«'nr»' f'o. v. Ilnhertson, -> M. & (i. l.'U ; .\fftrkinlnsh v. Midhtiul linihr.ty r,,.. 14 M i W. 54«; [('hristii' v. IloMhj, 7 C. H. N. S. 5(1 1 ; Seeger v. Oitlhif, n ('. B. N. S. 4'.; AVirxon v. Smijthifit, 28 1.. .1. Ex. !>7 ; AViV/ v. M'hitieorth, L. U. 1 C. P. f.«4; AW/»n v. h'fij, L. K. « Cli. r.lO; Simpunn v. Crippin, L. K. H y. B. 14, 43 L. J. Q. B. 28; linpn'v. Jnhn»nH, L. R. H C. P. Hw ; //»7riHi v. (hjf, 1 g. B. I). 1H,S, 4.'» L. J. g. B. 200, wliere a l>reaeh hv th«' plaintitl*. an opera singer, of a stipulation to he in London for reliearsal> six davs hefore the comineiicenient of Ids eii<;ai;enn-nt, was held no bar to his suin« the defendant on the latter's H'fusal to euijaye him; Itut ••onipare I'lmsmtinl v. Spi'tn, 1 g. H. I). 41n. 4."i L. .1. g. B. r.2l. where the plaintiirs inability to appear at the earlier of certain stipulated performances was held to jjo to the root of the contract. ] 4. " When the mutual prond.ses or covonant.s jjo to the whole ronsideration on both sides, they are mutual comlitions, and |)erfonnance must be averred." See AtkiuHitn v. Smith. 14 M. & W. •'.•.(.■i. 5. " When two acts are to be done nt thf sart, tlioniili it is not certain which of them is oblijjed to do the llrst act; and this particularly applies to cases ut sale." See Stfphens v. I)e Mediun, 4 (j. B. 422, recofrniscd by the Court of Common IMeas In lioirlby v. lifll, 3 C. B. 2H4 [and Mitrsdrn v. Moore, 4 H. & N. aiX); see also linnkftrt v. Howers, L. li. 1 C. I*. 484 ; Pnijnter v. ./ames, L. K. 2 C. P. 348]. To this it may be added, that there is a Inrire class of cases in which, though no contiition l)e tr/irf.Hsiil, the lapse of a reasonalile time is an impli<'d condition i»recedent to tin- rijjht of action, and the performance of such condition ounht to l)e averred as well as where it is expressed. Stamrt v. Kn.^tirooil, 11 M. & W. I'.t7; Sim.tnm v. Hhoilen, G Biui:. N. C. 2f!l; Crnnfjer v. l)nrr>\ 12 y\. & \V. 4:!1. and per .Mauie, J., Startup v. MimloHaUl, 2 M. & G. :J95. The authorities on which these rules depend will be found cited and di-scussed in the notes by Serjeant Williams above referred to, 1 Wms. Saund. 548; and 2 Wms. Saund. 742, ed. 1871. It Is proper to add, that when it [was] laid down that pfrformance of n concurrrnt art must he averred, the meaninsj of that [was], that the plaintift' must [have averred] in his declara- tion that he was ready aud irilli)i(/ to perform his part of the contract; see JIannuic v. Goldner, 11 M. & W. 849, and Grauf/rr v. Uarre, 12 M. & W. 431, where the plaintitt', havinj; declared on an ai,'reement to accejit (foods irithin a rcasouahle time after notice, the declaration was held bad, for not avcrrim? that he was himself during such 7-easonabIe time ready to deliver them. See also ./ockso7i V. AUaway, 6 M. & G. 942; Boyd v. Lett, 1 C. B. 222; Giles v. Giles, 9 Q. B. 164; Armitage v. Insole, 14 Q. B. 728; \_Duthie v. Uiltnn, L. R. 4 C. P. 138.] And the averment of the plaintift"s readiness and willinjrness to perform his part of tlic contract will he proved by showins; that he called on the defendant to accomplish his. WUkx v. Atkinson, 1 Marsh. 412; Levy V. Lord Herbert, 7 Taunt. 314; 1 B. M. 5(5, by Dallas, L. C. J.; Pickford v. Grand Junction Baihcay Co.. 8 M. & W. 372. CUTTER Y. POWELL. 1225 It [was] not. however, necessary in any case to aver the performance of conditions precedent when the declaration sliow[ed] that the defendant ha[d] absolntely incapacitated himself from performing his part of the contract, Lovelock v. Franklyn, 8 Q. B. 371 ; Bradley v. Beujaiain, 4G L. J. Q. B. [590;] and see, as to averring the dispensation, or waiver of conditions precedent, Ripley v. M'Chire, i Exch. 345; Doogood v. Bo.'ie, 9 C. B. 131; [Cart V. Ambergate Rail. Co., 17 Q. B. 127; Hochster v. De La Tour, 2 E. & B. 678.] By sect. 57 of the Common Law Procedure Act, 1852 (15 & 16 Vict. c. 76), the averment of the performance of conditions precedent might be made generally, and the opposite party was not allowed to deny such averment generally, but was bound to specify in his pleading the condition or conditions precedent, the performance of which he intended to contest. [See Bentley v. Dawes, 9 Exch. 666, and Wood v. The Copper Miners' Co., 17 C. B. 561. Under the system of pleading established by the Judicature Acts, no averment of the performance of conditions precedent is necessary, but an averment of their performance is to be implied in the pleading of the party for whose case they are necessary : and the opposite party is to specify directly in his pleading any condition precedent the performance of which is intended to be contested. See O. 19, r. 14.] The next branch of the question proposed at the beginning of this note is — In what cases would an action of indebitatus assumpsit [or as it was usually called, after the omission in the declaration of any averment of a promise, an action upon the common counts'] have lain, while the special contract remained open ? This is a question of great practical importance. And as the distinctions it involves are more than usually line, and the authorities numerous, an attempt will be made to classify them, and deduce from them one or two general rules. [The meaning of this question really is, " When may it be said that although the plaintiff has not performed his part of the contract, there is nevertheless, in contemplation of law, a debt due from the defendant to the plaintift', in respect of what the plaintitf has done under the contract ? " When this debt arose out of a new contract inferred from the conduct of the parties, as, for instance, where the benefit of something done under, but not in accordance with the contract had been accepted, it became properly recoverable under what were called the common courts, and therefore, though the late com- pendious system of pleading has been abolished, the question to be deter- mined in each case is still the same, and must be tested by the same rules. On the other hand, when the party suing has not departed from the terms of the special contract at all, but has been ready and willing to do all that it was the intention of the parties he should do, his action is properly said to be brought upon the special contract itself. In ascertaining what was the intention of the parties, which must be gathered from the instrument itself, nice questions must necessarily arise as to what are or are not conditions precedent to the right of either partj'^ to sue, but these questions do not depend on mere subtleties of pleading, they are questions of fact which must be answered at some stage in the investigation before a decision as to whether a right of action exists can be arrived at. It is submitted, therefore, that the pleading test which has been adopted as the basis of the present note, resting as it does upon a logical analysis of the cause of action in each case, is not only the simplest and most exact that can be applied, but must still, under a looser system of pleading, be as practically lliljti ClTTKi: V. roWKI.L. useful as it has bf«>n luTftnforc. It Is none tlio loss itupnrtnnt to nncortaln oxaclly what a plaintitrs ri;ilits an-. altln>iii;li tliost- rii;lits may no lonjctT ba lost tlirou};h inexactiu-ss nf stalniuut i»ii tin- jiarl of tin- pW-adf r at tlio uutMct of tlie cast;.] Ill the (Irst place, then, there is a iiuuu-rous class of cases wlikch establish the ;;eneral |)ri>positi(>ii, that uiiiie a special contract reiiuiined open, i.f., uiiperl'oniieii, tlie party whose part of It was unperforuied e4)uhl not sue In indihUittnx intHtunimit to recover a compensation for wliat lie had done, until the whole was completed. This principle is alllrmed and aeteil on in t'iitt»r V. I'lnnll ; it was also the j^rouml of the decision in lliillf v. Ilti'ihtnuin, 2 East, 145; a decision of consi»leral)le celebrity, and which is said In the jmlj;ment to have proceeded on the authority of MV.s/«e(>n ndon. lie further proved that, on arrivini; at Ltuulon. the tlefendant refused to jjive the seamen victuals, and t)ade them '^o on shore, saylni; he could i^et plenty of tiieir co\intrymen to i;o back for their victuals only. The phiiutitr accordingly did i^o on shore, — that afti-r some days tin- defend- ant re(|uired him to return on board, which he refused to do, sayini; he had tlie law of him. lie then commenced his action. The defendant put in the articles of ajxreenient under which the plaintiff served, which showed that he was hired from Altona to London and back a;;ain, and containctl a special clause by which the plaintitf bound himself to demand no waijes till tlie conclusion of the voyai;e. I'pon these facts, Le lUanc, J., nonsuited the plaintitl", on thf ffrmiiKl thut thr spirinl mntrnrt rpmnimil open nud utinsriuilfd, and that the plaintill' should have sued on it, and not in iiuhhitntns ansumpitit ; and the Court of Kiiiii's Mencli afterwards ajiproveil of that ruling. The principle on which Ilullf v. JIiii/htinj, 6 T. K. 464; Spain v. Arnot, 2 Stark. 256; Turner v. Robinson, 6 C. & P. 15; Ridgioay v. Hungerford Market Co., 3 A. «& E. 171 (which latter were cases of servants discharged for cause, before the expiration of their year); Jesse v. Roy, 1 C. M. & R. 316; and Sinclair v. Bowles, 9 B. & C. 92, which is, perhaps, more often cited than any other case upon this subject. It was an action of assumpsit for work and labour and materials, and for goods sold. At the trial it appeared that the plaintifl' had repaired three chandeliers for the defendant, and that bl. was a reasonable price for the work and materials ; but it was also proved by the defendant that the plaintifl', when he accepted the job, expressly agreed to make them comjih'te for the 10?., which he had failed in doing. The learned judge, Parke, J., nonsuited the plaintifl', giving him leave to move to enter a verdict for 51. ; but the court refused the rule, on the ground that the contract was entire, and that the plaintifl" not having completed his part, had no right to recover anything. The eflect of this case was discussed in the later one of Roberts v. Hare- lock, 3 B. & Ad. 404. That was an action for work and materials; tlie plain- tifl", a shipwright, had engaged to put a ship of the defendant into thorough repair. Before this had been completed, the plaintifl" demanded payment for what he had alread}' done, and refused to finish the job without. The defend- ant refused payment, and thereupon this action was brought; and a verdict having been found for the plaintifl", the defendant moved to set it aside, on the ground that the special contract was still open. The court refused a motion made, in pursuance of leave, to enter a nonsuit. " I have no doubt," said Lord Tenterclen, " that the plaintifl' was entitled to recover. In Sinclair V. Bowles, the contract was to do a speciflc work for a specific suin. There is nothing in this case amounting to a contract to do the whole repairs and make no demand till they are completed." From these Avords it may l)e thought that his lordship's judgment pro- ceeded on the ground that the performance of the whole toork is not to be considered a condition precedent to the payment of any part of the price, excepting when the sum to be paid and the work to be done are both speci- fied, (unless, of course, in case of special terms in the agreement expressly imposing such condition) ; and certainly good reasons may be alleged iu \-2-J.H ri'TTKi: \. I'oWKLl.. favour of snth R (loctrim-, f<>r \\lilc a nature, that It would be absurd to say tiwit «>ne part sh«»ultl be paid for lieforc the rcnudnder; as wliere a painter agrees to draw A.'s likeness, it would be absurd to rei|uirc A. to pay a rat«'able sum on account when half the face only had In-en lln- Ished : it Is obvious that he has then received no benellt, and never will receive any unless the likeness should be |H>rfe<-l»'tl. There are, liowever, eases (that, for instance of /inlnrl.i v. Ifunlnrk) In which tlie consideration is In its nature apportionable, and there. If no entire sum have been a«ree«l on as the price of the entire benellt. It would not be unjust to presume that the intention of the contractors was that the remuneration should keep pai-e with the conslderatl'iii, and be recoverable totii-a nuntifii by action on a -/(/.(/i- Itiin iniruit. This position (besides what Is said by l,onl Tenterden) is perhaps sume- what countenanced by Witturs v. /lii/nnlih. '2 It. & .Vd. HA'2. That was aii- sumpsil for not dellverlnu straw according to the following ay^rcemcnt : ".John Reynolds undertakes to supply .loseph Withers with wheat straw delivered at his prendses till the 24th June, IKti), at the sum of XU. per load of (liirty-six tnisses, to be delivered at the rat«' of three liiads in a forlni^ht ; and the said J. W. a;;rees to |)ay J. U. 'Ms. per load for each loa«l so delivered from this day to the 'Jlfh .luiie. ls:?(). according to the terms of this a;;ree- mcnt." It appeared that the plaiiitilV had refused to pay for the straw iipnii tlelirenj, and it was contended that he was not bound to do .so. ami that as no time was named for the payment, he ml;;ht onr. It woiiUI be nnjnst to allow hini to retain that wlthont payint; anythlni;. Tlie law, tlierefore, implies a prondse on his part to pay snch a renuineration a.H the hencllt conferred upon him is reasonably worth, and to recover that qunntHin of remuneration, an action of imlt-hitntus iiK.sitinimit wa.s maintalmible. This is conceiveil to l)e a just expression of the rule of law, [whii-h still] prevails. The cases on the subject are, however, extrenu'iy numerous, und In many instances at variance with each other; and, as tin- subject is one of irreat jjeiieral Importance, it will perhaps l)e best^autl fairest twn durlni; the races, and it wa.s adndtted that a cross action would lie a;;ainst the plaintiff. In T'lni'lnr v. M'Lnrhlun, Feb. (J, IiHim;, '2 N. It. l.ti"', an ai'tlon was bronnht on an attorney's bill, and the defence was ;;ross nei;ll;;ence in the plalntlll*. who had allowi-d impropi-r bail to justify. 'Ihe evidence of nei;liyeiice was held Inadndssible, and the plain- till" recovered the whole amount of his bill; the court saylni; that the only case in which su
  • '> (i. :'• .lune l:!, isoC), the rule which now obtains was established by the decision of the K. H. in lluMtn v. fSnttir. 7 East, 471). That was an action of ansnmpsit for woric and labour, and mate- rials, brouirht by a carpenter, whom the defendant, a farmer, had employed to roof a linliay and a barn. The defendant, at AV.-*/ J'rins, offered to prove that the worlv had been done in a grossly improper ntanner. This evidence was rejected on the autliority of Broirne v. Dun's, and a venlict found for the plaintitV, which the court set aside on the ground that the defence ought to have been adnuttcd. This decision was followed by FKi-nsirnrtU v. Gnrranl. 1 Camp. .iS. wliicli was also an action of ansiinipsit for work and labour, and materials, brouirlit by tlie plaintitt", who had rebuilt the front of a lionse for the defendant. The defence was that the house was so out of tlie perpenilicular that it was in daiiixer of falling. Parke, for the plaintifl", ol)jected, tliat this was only ground for a cross action; and he relied on Templar v. M'Larhlan. Lord Elknborongh admitted the evidence. '* Tills action," said his lordship, " Is founded on a claim for meritorious service : the plaintifl' is to recover ichat he deserves. It is, tlierefore, to be considered how much he deserves, or if he deserves anything. If the defendant has derived no benefit from his ser- vices, he deserves nothing, and there must l)e a verdict against him. There CUTTER V. POWELL. 1231 was forraerl}' considerable doubt \ipon this point. The late i\Ir. J. BuUer thought — and I, in deference to so great an authority, have, at times, ruled tlie same way — that, in cases of this Ivind, a cross action for the negligence was necessary; but that, if the work be done, the plaintifl' must recover for It. I have since had a conference icith the judges on the subject, and I now con- sider this as a correct rule : that if there has been no beneficial service, there shall be no pay ; but if some benefit has been derived, thoiigJi not to the extent expected, this shall go to the amount of the plaintifTs demand. The claim shall be co-extensive with the benefit." This case was followed by Denew v. Daverell, 3 Camp. 451, Avhere the same rule was applied in an action by an auctioneer against his employer. See too Brncctj v. Carter, 12 A. & E. 373; Nicholls v.. Wilson, 11 M. & W. 107; Hill v. Featherstonhaugh, 7 Bing. 569; Shaw v. Arden, 9 Bing. 287; Gill v. Loxigher, 1 Tyrwh. 121 ; Huntley v. Bulwer, 6 Bing. N. C. Ill : [Cox v. Leech, 1 C. B. N. S. G17; and Long v. Orsi, 18 C. B. 610, where this rule was applied in actions brought hv attorneys to recover against their clients the costs of abortive proceedings at law.] And Poulton v. Lattimore, 9 B. & C. 259, and Street v, Blay, 2 B. & Ad. 456, established, beyond all doubt, that, even where there was an express warranty, and a breach of that warranty was the defect of consideration complained of, the defendant might, in an action for goods sold and delivered, give evidence of the breach of warranty in reduction of damages. ( Vide Dicken v. Neale, 1 M. & W. 556.) And this might have been done under the general issue, Hill v. Allen, 2 M. & W. 283. [As to the further extension of this principle by the Judicature Act 1873, see infra.'\ In Francis v. Baker, 10 A. & E. 642, it was attempted to stretch this prin- ciple so far as to include a case in which a broker, who had purchased rail- way shares for the defendant, sued for money paid, and the latter set up as his defence conversion of the shares by the broker : the court, however, held that that was matter for a cross action. It will be observed that the distinc- tion between that case and the others, is that the defence there was not the inferiorit}^ of the article procured by the broker, or the badness of his work, but a subsequent independent tort. However, in Mondel v. Steele, 8 M. & W. 871, the court said that there were exceptions to the practice of allowing the defence of the inferiority of the thing done to that contracted for, to be applied in reduction of damages : and they intimated, that in actions for an attorney's bill, or for freight, the defence would not be allowed, unless it went to the extent of denying that any benefit at all had been derived. See, however, the distinction taken in Hill v. Featherstonhaugh, between a useless item severable from the rest of the account, and one inseparable. [In a modern case {Dakin v. Oxley, 15 C. B. N. S. 646) an attempt was made to push very far, and to apply to a totally distinct class of cases, the rule laid down by Lord EUenborough in Farnsivorth v. Garrard, that " lohere there has been no beneficial service there shall be no pay." In Dakin v. Oxley, a shipowner sued a charterer for the freight of coals, and the latter pleaded that owing to the negligence and unskilfulness of the master and mariners in the navigation and management of the ship, the coals were so damaged on the voyage that on their arrival at the port of discharge they were of less value than the freight, and were abandoned to the shipowner. This plea admitted, as will be observed, that the goods arrived as coals, and were of some value. The Court of Common Pleas refused, in a judgment which exhausted the subject, to uphold this defence, and laid down distinctly that by the law of England '• where goods have arrived, though damaged, the '[•2-\'2 ciTTKic V. i'<»\vi:i,i.. frri^ht in payable by tin- onlinary tcniis of tin- cliartrr-party : aiui the i|Ufb- tioii of rortuitoiis (iaiiia^i- iiiii>t br scltU-d with the iiixUTwrltcrs, and that of ciilpabU- (Uiina<;t', in a distinct jirocefdin^ fur .siuli ilaiiiai;i- against ttu- ship, captain, or owners;" set- also linhinsDH v. Kjiii/ftts, L. U. s C. l». 4»;,', ; Mrr- chdiit ShippiiKj Co. V. Aniiit(tiif, L. I{. 'J t^. H. \\'.\. In a sindlar case, there mit;ht now be a counterclaim uniler the Judicature Acts for the damage; see iiifrd, p. 'M. Independently of the Judicature Act,] It Is settletl by Stn-ft v. Hhnj, anil I'lniltnii V. l.nttimiirf, that, where an article Is warranted, and the warranty is not complied with, tlu' vendee has three courses, any on*- rini; a cross action. MmiiUl v. Stci-lf, 8 M. v<^ W. H.'js : and see /iiij>j>- v. Utirhiilt/^, l.'> .M. & W. .V.IM. It was once thought, and indeed laid down by Lord Khh>n In Curtis v. Jinn- nnij, 3 Esp. 82, that the vendee mii;ht, on dlscovt-rlujir the breach of warranty, rescind the contract, return the chattel, and, if he had paid th«' i)rice, recover it l)ack. This doctrine, which was oppo.sed to Wrttton v. Dowiifs, nntr, p. 20, is, liowever, overruled by Stnit v. lilinj, and (ii»n}>prtz v. Ihitton, 1 C. & M. 207; ."i Tyrwh. 232 ; and it is dear that, thou<;h the noncomjiliance with flie warranty may [where the property has not passed] justify him in refusin;; to receive the chattel, it will not justify him in returninix it. and suin*: to recover back the price [Foster v. Smith, IH C. B. loCj ; unless, indeed he return it, havinir kept it (as he lias a rlyht to do, see lAirrymer v. Smith, 1 B. & C. 1) such a time only as was necessary for a fair examination. In which case lie cannot be considered as having received It at all. See Okill v. Smith, 1 Stark. 107; Jordan v. Sorlun, 4 M. & W. l.").'i; Street v. Bluy, Youiifj v. Cole, 3 Biui;. N. C. 730; where a distinction was drawn between the effect of a breach of warranty, and of a total failure of consideration. [See also Gomprrtz v. liartlett, 2 E. & B. 84'.), and (iiirueij v. U'omrrslnj, 4 E. &. B. 1.33.] And probaljly the distinction between a condition and a wnrranty, as pointed out by Mr. Justice Vauuhan Williams in Dmcson v. Colli.t, 10 C B. 530, will be found to obviate any difliculty that may be supposed to exist, in deciding what are the cases in which a vendee can refuse to accept, or can return the article, and either resist payment of the price, or recover it back if paid. A warranty properly so called, can only exist where the subject-matter of the sale is ascertained and existing, so as to i)e capable of being inspecteil at the time of the contract, and is a collateral engagement that the specific thing so sold possesses certain qualities : but the property passing by the contract of sale, [Dixon v. Yates, 5 B. & Ad. 313; Gilmour v. Supple, 11 Moo. P. C. C. 551,] a breach of the warranty cannot entitle the vendee to rescind the contract, and revest the property in the vendor, without his con- CUTTER V. POWELL. 1233 sent; the vendee mnst therefore resort to an action for such breach, or give it in evidence in reduction of tlie price, or as an answer to the action if the breacli renders tlie article wliolly wortliless. But wliere the subject-matter of tlie sale is not in existence, or not ascer- tained at the time of the contract, an engagement that it shall, when existing or ascertained, possess certain qualities, is not a [mere] warranty but a con- dition, the performance of which is precedent to any obligation upon the vendee under the contract, because the existence of those qualities being part of the description of the thing sold, becomes essential to its identity, and the vendee cannot be obliged to receive and pay for a thing different from that for which he contracted. See [Mchol v. Godts, 10 Exch. 191 ; Jos- ling V. Kingsford, 13 C. B. N. S. 447; He>jxDorth v. Hutchinson, L. II. 2 Q. B. 447] the observations of Mr. Justice Yaughan Williams in Dun-son v. Collis, 10 C. B. 530, [and of Lord Blackburn in Boioes v. Shand, 2 App. Cas. 455,] tlie judgment of Lord Abinger in Chanter v. Hopkins, 4 M. & W. 399; [the judgment in Barr v. Gibson, 3 M. & W. 390, Gompertz v. Barllett, 2 E. & B. 849, Lucy v. Mouflet, 5 H. & N. 229, and the judgment of the Exchequer Chamber in Behn v. Burness, 3 B. & S. 756, and of Blackburn, J., in Kennedy V. Panama, &c., Mail Co., L. R. 2 Q. B. 587. But although the general rule is as above stated, it is open to the parties, if so minded, to contract when selling specific goods, that a particular stipu- lation, such, for instance, as one relating to the nature or condition of the goods, shall be conditional to the validity of the sale ; and if this is the con- tract really intended, the buyer maj' repudiate the contract and return the goods, even after their delivery, on its appearing that the affirmation in ques- tion is not correct. In this class of cases the sale is not al)solute, with a warranty or condition superadded, but conditional, and to be null if the affir- mation is incorrect. Bannerman v. White, 10 C. B. N. S. 844, was a case of this class. There, on a sale of hops by sample, a preliminary affirmation was made by the seller that no sulphur had been used in the treatment of them. This undertaking, without which the buyers would not, as the seller knew, have gone on with the treaty which resulted in the sale, was honestly given, but in fact incorrect. The court held on the facts that the contract was not a mere sale with a warranty superadded, and that the buyers might repudiate the contract even after the delivery of tlie hops. See also the judgment already referred to of the Exchequer Chamber in Behn v. Burness, 3 B. «& S. 755, 756 ; and as to what stipulations are to be deemed conditions on the sale of specific goods; Gattorno v. Adams. 12 C. B. N. S. 500; and see the notes to Chandelor V. Lopus, ante, vol. 1.] But although Street v. Blay, and Poulton v. Lattimore clearly established that where there was a breach of warranty, that might be given in evidence in reduction, in an action of indebitatus assumpsit for the price, or a cross action might be lirought upon the warranty, yet it is the opinion of a writer of great merit and learning (Mr. Starkie) that " Avhere there is a specific bar- gain as to price, but no warranty, and goods inferior in value to those con- tracted for have been delivered, the vendee must, ichere it is practicable to do so loithoui ptrejudice, return the goods, and thus rescind the contract in toto ; and if he does not, must be taken to have acquiesced in the performance of the contract." Stark. Ev. vol. 2, p. 879, 2nd edit. [The learning upon this branch of law has however been rendered obsolete by the provisions of the Judicature Act, 1873, infra, and the discussion of Mr. Starke's opinion, which followed in former editions, has been therefore omitted.] 1J:;J CL'TTKU \. I'OW i:i,i>. It litis l)ci-ii said in siiinc cii-si-s. tlitit ilif (lilriiilaiii. 'i In- iinuii !<• roniiiul tliut till- Ikmu'III rrc-t'iv»'tl was not lliat wiiirli In- stipiilatfd fi>r, must jflvt- tlu* plaiiititr notic-i' of iiis iiilciition. llowover, thr olisrrvatloii nuuli- oii thin siilijiil liy Lord Klli'ul>orou;;li, in linMtn v. Ilnttn-, st-i'ins i-oncluslvf. viz., tliat if tlir |)laintilf suf upon a ijiiuutnin tnt-ruit, tiio vi-ry f(»rni of Ids own dt-c- laratioii j^ivi-s Idin notic-o tliat tlu- udiMpiacy of tlu- considrration may be- dis- puted. VVitli respect io quant nm cf ritluitiini, it l.s haiil by I'arke, .1., in 'J'/titriit"n \. Plari', 1 M. & Uol). 211», timt •' Where a party eujuaifes to «li) certain siH-ellletl worlv on certnin specilled terms, and in a certain speeitied manner, but in fart (iocs not perform tlie work so as to ••orrespoml with tlie speeiliration, In- is not, of course, entitled to recover tlie price ajjreeii on in tlie speciticat ion. Nor can he recover according to the actual value of the work, as if there had l)een no special contract. What the )dalntitl' is entitled to recover is tlic price a;;reed on in the speciticalitm, subject to a tleduction ; ami the measure of that deduction is the sum it wouhl take to alter the work so a.s to make it correspond with the speclllcatlon." .Vs there, ))erha|is, micht he ca.ses to which tills rule couhl not be with perfect ju.stlce applied, it probal)ly was only iaiti down by the learned jud^e with reference to such as that immedi- ately before him. In Chitppil V. IlirkK, '2 <". i M. L'U, Hayley, !»., says, •The rule is, tliat if the contract be not faithfully p<-rfornie«l, tin- plaintill' shall be entitled only to recover the value of the Work and materials supplietl." Lord KllenlM>r- oufjh's rule, laid down after coiisultin;; tlie jiitlj;es In Fitnmirnrlh v. (iunnnl, wa.s, " The claim shall be co-cxtcnslve with the benefit." In the American courts, the rule on this subject seems t«) be tlie same a.s that reco<;nised in the courts here [before the Judicature .Vet], namely, that where a |)lainlitr declares upon a general count for work done, jjoods .soUl, or the like, under a special contract, the defendant may jitve in evidence ever}'- thini; that alVects directly the value of the .-ubject of the claim, as between the parties, includini; a breach of warranty, in reiluctlon of dama-ies. [lie was not, however, by our law bound to do so, anaid into court the sum claimed, he was not tlioreby estoppeil from brinuini; his cross-aro ratti itineris becomes due, not under the charter-party, but ])y a new contract inferred from the conduct of the parties. But Mhere a portion of a cargo Avas justifiably sold at a port short of the destination in order to raise funds to repair sea damage to ship, although the part sold fetched a higher price than it would have done at the port of destination, and the price realised was allowed to the charterer on a general average statement, and was received by him from the shipowner, it was held that the latter was not entitled to recover pro rata freight on the part which had been sold. Hopper \. Burness, 1 C. P. D. 137; and see Metcalfe v. Bri- tannia Irnntvorks Co., 1 Q. B. D. 613, aflirmed 2 Q. B. D. 423. It must further be observed that where a special contract has ))een only partly performed, the mere fact that the part performance has been beneficial is not enough to render the party benefited by it liable to pay for this advan- tage ; it must be shown that he has taken the benefit of the part performance under circumstances sufficient to raise an implied promise to pay for the work done, notwithstanding the non-performance of the special contract. Thus, in a modern case, the plaintiff having undertaken to complete certain work for a specified price on houses belonging to the defendant, the whole to be completed by a particular day, and to the satisfaction of a surveyor who was named, failed to complete the work according to the terms of the con- tract, but did work upon the houses. The defendant afterwards resumed the possession of the houses, and was therefore, at the time of the trial, to some extent enjoying the fruit of the labours of the plaintiff. It was held notwithstanding that the plaintiff could not recover either on the special con- tract, or for work and labour. For the special contract had not been per- formed, and the mere fact that the defendant had taken possession of his- own houses, upon Avhich work had been done, did not afford an inference 1-J:»»i CCTTKl: V. I'nWK.LI,. tliiit III- liatl (li-.i»fiisf(l wltli tin- roiiditioii'* of till- spfclnl njrrooin««nt. or tliut III- hull coiitracttMl to pay for tlu> work artiially (lon«> nrconllny to iii.:i^iir<- and valiif. .ynnio v. Hiitt, « K. & B. 738] 'I'lie m-xt cxn'ptioii to tlif ^jeiUTul rule, lliut iio action of imlthiiit:,..^ .;.>- miiupnit will 111- wlille the spt'clal contrurt rt-nmln.H nnpfrfornuHl, \h to he found In a class of cases which establish the proposlthtn, that when one party has absolntely n-fnsenii>lil.i, the fai'ts of which have been already stated. There, the plaintitr havln:; refused to pay for the loads on delivery pursmmt t<» his contract, the ilefendunt was hehl entitled to rescind it. •• If the plaintiir," .said Tattcson, J., '"had merely failed to pay for any [(articular load, that, of itself, ndi;lit not have lu'cn an excuse to the defend- ant for lalntlll' licre expn-ssly refuses to pay for the loa«ls as delivered; tlie defendant Is therefore not liaiile for ceasing to perfr>rm his part of the contnut." 'I'ld-i case was <-ommented on In Frunklin v. Milhr, 4 A. •■<; K. ."I'.i'.l, and the same doctrine laid down. '• The nile ls,"snld Coleridire. .]., " that in reselnil" Inij, as in maklu!; a c«)ntraet, both parties must concur." In Withem v. AVj/- uoliln, each load of straw was to be paid for on delivery. When the plaintifT sal ; .Uonjnn v. nuin. ].. U. !•) C V l.'>; /»i re Pho-nix Co., 4 I'll. n. lOS: A'j- purlr Stnphtnn, K) Ch. I), .'.st;.] The refusal which is to authorise the rescission of the contract, must be an iiii(|ualitled one. See the judi;ment of the court in Hhri'mtpenjer v. .!)i«/er- Kiiti, ;'. Kxch. l.'iS [nnti It must be acted on as a breach by the person who ha.s a rii;ht to insist on the perfonnance of the contract. The Danuhe, d'r., Hail- iraij Cn. V. X<'no.H, 11 V. B. N. S. 1.".2; l.'J C. B. N. S. H2'>]. In Lin>-n v. AVr.*, tried before Mr. J. ('olerid<;:e, at the Monmouthshire Summer .Vssi/es, 1H:J7, the action was nssuinpsit, on a contra«*t to build a house for a specified sum, with a count for work and labour, and materials. It aiipeared that the house was not yet completed, but that a i;ood deal of extra work had been done l)y the defendant's order; that the plaintiH' had called on him to pay for all that had l)een done, and that he had replied " that he woulil not — perhaps never." On this evidence the plaintitt"s counsel subndtted that he was entitled to recover on a quantum meruit for the extra work, and also to treat the special contract as rescinded. Coleridge, J., admitted that this would have been so, had the refusal to pay been absolute and unqualitled; but thought that, in this case, the refusal to pay must be construed with reference to the demand, which was made, so far as the work done under the contract was concerned, too soon. He therefore held the plaintitt' entitled to recover only for the extras. This note of Lines v. Rees. has been kindly perused, and its accuracy confirmed, by the defendant's counsel. Mr. Greaves. [As to an absolute refusal to perform the contract and a rescission on that ground, see also Cnrtv. Amben/ate Bailway Co., 17 Q. B. 127; Reidv. Hos- kins. 4 E. & B. 979; Avenj v. Boxcden, 5 E. & B. 714; fi E. & B. 953, S. C; Bartholomen' v. ^fark^c^ck■, 15 C B. N. S. 710; Leoson v. X. B. Oil, d:c., Co., It. R. 8 C. L. ;W9. CUTTER V. POWELL. 1237 In Avery v. Bowden, the defendant had agreed by charter-party to load a cargo on board the plaintiff's ship at Odessa, certain running days to be allowed. The declaration contained a count for not loading, which alleged that before the expiration of the running days, the defendant had dispensed with the ship's remaining at Odessa. To this count the defendant pleaded that before the cause of action arose war had been declai'ed between England and Eussia, and that the contract had thus been rescinded. The facts appear to be that after the arrival of the ship at the port of loading, and before the declaration of war, the agent of the charterer had repeatedly told the master that he had no cargo for the ship, and that he, the master, had better go awa}^ ; but the master had continued to require a cargo until the declaration of war was known at Odessa, which was before the expiration of the ship's laying days. It also appeared that in a con- versation between the plaintiff and the defendant in England, after the declaration of war, the defendant had told the plaintiff tliat he had deter- mined not to load the ship, but to rely on the chapter of accidents, and that he had telegraphed to his agent at the port of loading not to purchase a cargo. Upon these facts it was held by the Court of Queen's Bench, that, assum- ing that the agent of the charterer had on his part renounced the contract before the declaration of war, this renunciation, not having been accepted by the master, did not either constitute a dispensation or give a cause of action. Lord Campbell, C. J., in delivering the judgment of the court in favour of the defendant, said, " According to our decision in Hochstcr \. De la Tour, 2 E. & B. G78, to Avhich we adhere, if the defendant, within the running days, and before the declaration of war, had positively informed the captain that no cargo had been provided or would be provided for him at Odessa, and that there was no use in his remaining there any longer, the captain might have treated this as a breach and renunciation of the contract, and thereupon sail- ing away from Odessa, he might have loaded a cargo at a friendly port from another person ; whereupon the plaintiff would have had a right to maintain an action on the charter-party to recover damages equal to the loss he had sustained from the bi'each of contract on the part of the defendant. The language used by the defendant's agent before the declaration of war can hardly be considered as amounting to a renunciation of the contract ; but if it had been much stronger, we conceive that it could not be considered as constituting a cause of action, after the captain still continued to insist upon having a cargo in fulfilment of the charter-party." This judgment was aflfirmed in the Exchequer Chamber, where the judges stated that in their opinion there was no evidence of a dispensation. See also Barrick v. Bubn, 2 C. B. N. S. 563, in which case a charter-party had been made between an English and Russian subject for the loading by the latter of a cargo at a Eussian port : and it was held that an intimation made to the master at the port of loading by the agent of the charterer that he had ceded the charter-party with all its rights and obligations to a third party, and that he must address himself to that person for a cargo, was not sujh a renuncia- tion of the charter as entitled the ship-owner to sue for a l^reach at tliat time ; this intimation having been given before the time for loading had expired.] Where a party has incapacitated himself from performing his side of the contract, the same conseqiience follows as if he had absolutely refused to do so. Robson and Sharp'', v. Drummond, 2 B. & Ad. 303, was an action by Sharpe and Robson, who were coach-makers, against the defendant, for not 1288 CUTTKIt V. I'OWKI.L. payini? for a cliariot which he had hlruil of Sharps for the yearx, at scvoiity- llve ;iiihieas per aiiiiiiin ; S!iarj>e was to pahit aiul keep it in repair. Tlie tlefeudant liail ctmtracted witli Sliarpe alone. Wlien tlireo years out of the tlve were expired, thai person, having dis.soived partnersldp witli Uubtton, tran.sferred tlie stoeic-in-trude, and among otlier tilings, the chariot in e's having transferred his interest in the contract to Uohsfni, was elr, A. i K. 50H; Amur v. Frnnin, '.> A. v'i K. .')1M ; and /»>;/•-' v. IlunruniJ, 2 ('. 11. !•<).'>. In this case the plaintiH' luul agreed to hoard and lodge the defeiitlant and his son, and In payment for such board anil lodgiiii;, to take certain furniture tieposited upon his preiiii.ses. After the agreeiiu-iit, ami before the action, a creditor of the defendant obtained a judi;nieiit against him, and took the furniture in execution. The c the coiitiMuance of a contract after the death of one of the j»arties thereto; if it was one involving personal confi- dence, the death of the party confided in, rendering its perfonnance impos- sible, puts un end to it; otherwise not. See Wentn'nrth v. Ciick\ 10 A. & E. 42 ; [so likewise in contracts for personal services, the death of either party puts an cud to them unless it be otherwise agreed. Famur v. Wilson, L. K. 4 C. P. 744.] It must, liowcver, be observed, that, in a case of this sort, the breach of contract which entitles the other contractor to rescind, must consist in the non-performance of something essential. •• If the plaintiff," said Patteson, J., in Withers v. Reyinilds, '• had merely failed to pay for any particular load, that in itself might not have been an excuse to the defendant for delivering no more straw." Accord. Fillieul v. Armstrong, 7 A. E. 557; Freeman v. Taylor, 8 Bing. 124 ; Franklin v. Miller, 4 A. & E. 599 ; Ehrensperger v. Ander- son, 3 Exch. 158; Corcoran v. Proser, Ex. Ch. Ir. 22 W. R. 222; [Frecth v. Burr, L. R. 9 C P. 208; 43 L. J. C. P. 91.] Nor must it be a breach occa- sioned by his own wrongful refusal to accept performance. See Fitt v. Cassnnet, 4 Jf. & Gr. 898. [In Hoare v. Rennie, 5 II. & N. 19, the contract was for the delivery of 6(57 CUTTER V. POWELL. 1239 tons of iron to be shipped from Sweden, in the months of June, July, August, and September, in about equal proportions each month, at a certain price, delivered in London. In an action by the vendors for a refusal to accept or pay for the iron, a plea justifying the refusal on the ground that the plain tifis had shipped in June a much smaller quantity than that which was required under the con- tract, and wei'e never ready and willing to deliver such smaller quantity until after the defendants had had notice that the plaintiffs were unaljle to fulfil their agreement as to the June shipment, was upheld by the Court of Exchequer. This case, though questioned in Jonassohn v. Young, 4 B. & S. 296, was cited with approbation in Bradford v. WiUiams, L. K. 7 Exch. 259. In Simpson v. Crippin, L. R. 8 Q. B. 14, however, a precisely similar point was raised in the Court of Queen's Bench, and an opi^osite decision was arrived at. In that case the defendants had agreed to supply from 6,000 to 8,000 tons of coal, to be delivered into the plaintiff's Avagons at the defendant's collieries, in equal monthly quantities during the period of twelve months from the 1st July. During the month of July the plaintiffs took from the defendants only 158 tons, and on the 1st August the defendants gave notice to the plaintiffs, that in consequence of the plaintiffs having taken so small a quantity, they cancelled the contract. In an action for refusing to deliver the residue, it was held that the breach by the plaintiffs in taking a smaller quantity did not justify the defendants in rescinding the contract, and Blackburn, J., said, " If the principle upon which that case," i.e., Hoare v. Rennie, " was decided is that wherever a plaintiff has broken his contract first he cannot sue for any subsequent breach committed by the defendant, the decision would be opposed to the authority of many other cases." In Roper v. Johnson, L. L. 8 C. P. 167; 42 L. J. C. P. 65, in which a similar point arose, the decision in Simpson v. Crippin was treated as conclusive. Since the last edition of this work, the case of Hoare v. Rennie has been much discussed in Honck v. Midler, 7 Q. B. D. 92; 50 L. J. Q. B. 529; and Mersey Steel /«iy»j«»(i v. ('rijtpin was Inroiisistfiit with Ifixirr v. Ittunif, which latter caso ht; thought was wrongly decidod, and lu- hrld that In tin- i-asi> hi-fon- tlu-in the plaiiitUr was entitled to HUCCC'Od. In the Mirtttij SUil A Iron Co. v. Xdijlnr, the defendants had a;;reed to pur- chase from the plalntitrs r*,0f I.ihm) tons monthly, commeiieini; with Jan- uary, IHSl, payment to he made within three days after n'ceipt of shippini; dociimeiits. After tlu" plalntitrs had «lellvcred a portion of the first Instal- ment, a petition was presented to wind tip the plaintifr company, and the defendants actlnj; upon the erroneous advice of their solicitor, refused to make the payments due In res|iect of the <|uantlty d«-livered. In the mistaken view that pendlni: the petition there was no one who could ijlve them a valid uiliated the dictum attributed to him In Ilimck v. Miillrr, "That in no ca.se where the contract had been part per- formed, could one party rely on the refusal of the other to jjo on," pointing; out that every case must depend upon its special circumstances. Both in the Court of Appeal and the House of Lords the rule of law jjovernlnj? ca.ses of this class, as laid down by Lord C'oleridice in Fndh v. liurr, wan referred to with approval. His lordship there says, after reviewinjj the authorities, " There has been some contlict amongst them, but I think it may be taken that the fair result of them is, as I have stati-d, namely, that the true ques- tion is, whether the acts and conduct of the party evince an intention no lomrer to be bound by the contract." Api»lyiiii; this principle to the ca.se before them, their lordships had no dilllculty in decldinuc that the conduct of the defendants in •withholdins; payment for a i)articular delivery, under the erroneous advice of their solicitor, did not evince such an intention. Lord BramwcU, in pointinjj out that in Ilonck v. Mulhr the conduct of the plaintiff clearly did evince such an intention, reiterated his ajjproval of Iloare v. liennie, which he treated as decided upon the same principle. In the last edition of this wf)rk ITnarc v. linniip was treated as beini; opposed to the wcijilit of authority. The explanation, however, of tlie diversity of opinion as to that case is probably that jj;iven by Bowen, L. J., in the Mersey Steel Co. v. Naylor, at p. G71 of 9 Q. B. Ti., namely, " that the plea was a special plea, which set out various facts from which two diflferent inferences misrht quite well be drawn, and as one ir engagement with the plaintiff" to publish his Avork there, they must be taken IJtii crrTKi: v. I'<»nvki.i.. In liavf aliuiiildiu'd tlii' contract altogether ; aii*l tliai lie ml^ht rei'over for vvliut he Imd (lone, upon n •iiiuntuin mfruil. " Tlie fact >va.H," .said Tindal, L. ('. .1., ■■ that tlie defendants not oidy r^ua- pended, l>ut actnatly tmt an end to, ' Tlie Juvenile I.li)rary.' They hml Itroken their contract with the plaintitT; and an attempt was ntado, hut i|ulte uiimic* <-cHsfully, to show that the plaintilf had afterwards entereil into a now ron- tra<'t to allow tlieni to pidtlisli his hook as a si-|)ar:ite work. I a;;ree that wlien a special contract Is In exlsten<'e an«l open, the plaintitf cannot Hue on a nnnntnin iinrilit : part of the question, therefore, here was. whether tlu- contract did exist or not. It distinctly appeared, that the work was llnaily aliaiidoncd. and the jury found tluit no new contni<'t Iwid heen entered Into. I'luler these circiunstan<"es, the plaintiff oui;ht not to lose the fruit of his laliour, and there is no ;;round for the application that has heen niaile." [Aiul upon the .same principle, where a pentun had iN-on retniney the directors of a company upon the terms that he was to receive a certain sinn at once, and a furtlier .sum when all the shares shiudd have heen allotted, and the ilin-ctors afterwards, without any default on the part of tlie broker, wound up the company l>efore all the shares had iH-eii disposed of, thus n iiiltrimj iiiii>i>.i.tihlr thr tillnlinrht >•/ nil ihr Hhiirm, It was held that the l>roker was entitled to recover not the stipulated sum, hut a reasonable compensation for his services. Inrhhnld v. Thf UV,H/»r« Xfili/hrmj f'njTi-r r,,.. 17 c. n. N. S. 7:w.] It would .seem that the .same Act by one of the parties to a contract which ;;ave tlie other party who had partly performetl It a rl;:ht to resclml It. and siu- iu i'ikIi liitaiii!* ii.'tstimiisit for what he miyht have iloiie under it, will, In case of an executory contract where nothing; has b»en tioiie under It. amount to a brea<-h of the contract so as to furnish a >;ronnd of ar-tlou. Si-e S/mrl v. ,SV<.;i., H i.1 H. :55K; LunhirK V. I'ntnihjn, S ^^. B. ;{:i ; li,nr,lfll V. l\ir.^i>i,n, 10 KasI, .S.V.I; Ford v. Tihij.W W. &. ('. ;i2o ; Curt \. AmhrnjnU linilinnj r,,., 17 (^ \\. r.'7; and in the case of lh.,hst,r v. Dp In Tniir. '2 K. v't B. r.7H, the Court of (Queen's Bench held that such rljjht of action ml^ht be enforced even before the «lay appointed by the contract f«»r Its |H"rformancu by either party. In tliat case the declaration stateil that In consideration the plaintill' would agree witli the defeinlant to enter Ids .service on the Isi of Juue. is.",^*, as a courier, and travel with him as such courier for three months from the ^aid 1st of .luue. lit tlie rate of 10/. per month, the defendant undertook to receive him into ills employ on the .said 1st of .June upon those teniis. The declara- tion tlu'U averred that, from the time of the agreement until t/if tiiuc irhi-n thp di'j'iinlant irrntujj'ulhj refused to jierform his promise and exonerated the plaintitl' from performance, he, the ]>laintitr, was always ready and willing to perform the agreement. Breach — that the defendant /)*;/brp the said lat of June, 1852, refused to engage the plaintitf or perform his promise, and then wrongfully exonerated the plaint itl' from the i)erformance of the agreement, to the damage of the plaintitt". fhi- trrit tnis dntid on the 22iid of May, ls.",L'. It was contended, in .irrest of judgment, that although a refusal by the defendant to perform the contract, if continued up to the time fixed for its performance, would give the plaintitf a right of action, yet the refusal was revocable up to .such time, and the plaintitf could not sue until its expiration. The court, however, decided that the plaintitf was not bcnind to wait until after the first of June to bring his action, and that the declaration was good. But see the judgment of Parke, B., in Philpotts v. Etnns. o M. & W. 47.5. Perhaps the cases are reconcilable by supposing that the judgment in Iloch- CUTTER V. POWELL. 1243 ster V. Dc In Tour applies to cases in which, in conseqnence of the refnsal, something has taken place to interfere with the performing the contract wlien the time arrives. [It is impossible, however, even on this ground, to reconcile the judgment of Parke, B., just referred to, in all respects, with the more modern decis- ions; and in The Damibe, tfcc, RaUivay Co. v. Xenos, 11 C. B. N. S. 152, 13 C. B. N. S. 825, which has been already cited, it was held, in accordance with these decisions, that where a contract is for the performance of a thing on a given day, and the person who is to perform it declares before the day that he will not perform it, then the other party has the option of at once treating this declaration as a breach of the contract. Accord. Frost v. Knight, L. R. 7 Ex. 111. In that case the defendant had promised to marry the plaintifl' so soon as his (defendant's) father should die. During his father's lifetime he absolutely refused to marry the plaintifl", and it was held in the Exchequer Chamber, overruling the decision of the Court of Exchequer, that for this breach an action was well brought during the father's lifetime. And see Wilkinson v. Venty, L. R. 6 C. P. 206. In Johnstone \. Milling, 16 Q. B. D. 400; 55 L. J. Q. B. 102, an attempt was made to apply the doctrine of Hochster v. De la Tour, and Frost v. Knight, to the case of a lease with several covenants. There the defendant had become tenant to the plaintiff for a term of 21 years, determinable at the end of the first four years by six months' notice. There was a covenant by the plaintiff to rebuild the premises at the expiration of the first four years on receipt of a six months' notice from the lessee requiring him to do so. Before the expiration of the four years the plaintiff had on more than one occasion told the defendant that he would be unable to procure the money for rebuilding, and in consequence of such statements the latter gave the six months' notice required by the contract to determine the tenancy at the end of the first four years. He, however, continued to occupy, paying rent to the plaintifi"s mortgagees, on the chance of the plaintifl" being able to find the money to rebuild. In an action brought by the plaintifl" against the defendant for an independent claim, the above facts were proved in support of a counter-claim for damages founded on the repudiation hy the plaintifl" of his liability under the covenant before the time for jDcrforming it had arrived. The Divisional Court held that though the lease was determined before the time had arrived for performance the defendant was entitled to treat the plaintiff's declaration of inability to procure the money as an anticipatorj^ breach within the prin- ciple of the above cases, justifying the defendant in rescinding the contract and suing for damages, and they gave judgment for the defendant. This judgment was, however, reversed in the Court of Appeal. That court held, that the facts proved did not establish a repudiation by the lessor of his obli- gation under the covenant, but, assuming that they did, they held that the effect of an anticipatory breach amounting to a repudiation is to give the other party a right to rescind the contract, keeping it alive only for the pur- poses of bringing an action upon it, or to hold to the contract and await the time for performance. But that such repudiation beforehand is not a breach at all, unless the other party elect to treat it as one, and that he cannot con- tinue to reap the benefit of the contract and at the same time claim to treat it as rescinded. They held in the case before them that the lessee had not so elected, but had continued to cling to the contract, giving the requisite notice under it to determine the tenancy. The court seemed to be of opin- ion also, though they did not actually decide the point, that a declaration ]-2\\ (TTTKI: V. I'oWr.LL. befoi't'hftiul of inability t<» lu-rfonii <»iie fovenant in a lease wliieli, if Ijroken when tli(* time for perfornianrc arrived, wonld not liave enableii tlie lessee to tl\ro\v np tlie lease, Surpli'ic v. Fnrnsiriirth, 7 M. v<. (!. r.7<">, conld not jns- tify the lessee in reseindini? the contrnet within tlie principle of the caMes referred to.] There is a class of cases which ajjpear at first si;jht rjurtl;/ Hindlar to Plnnrhp v. CuVnirn, and liofisini v. Dnimmond. ante, p. 38, hnt which will l)e fonnd, on closer inspection, to be distintjidshed l)y a i)ecidiarity whlcli it may be nseful liere to remarli. 1 alUuh' to those cases in whicli a servant, who has enjjaged to serve for a certain time at certain wa-jes, is tnrned away l)y his master before the period for wliich he had en<;a B. & Ad. 7Ht) ; Callo v. Brnnnrkrr, 4 C. & V. .'>1H; Sjtitin v. AnwH, 2 Stark. 2.'»fi; Anrnr v. Fraron, 9 A. & K. 5JS; Tiirnrr v. .U>tsnn, 14 M. & W. llfi; rjllnj v. A7irj;i, 11 Q. B. 742; [unless indeed the terms of the agreement be such .is to show that the Intention of the parties was that the rijiht to waices shouhl be dlvisilile. Sec Button V. Thiimpsitn, L. H. 4 t'. 1*. 3:50. In that case the plaintill' had l)een shipped as mate on board defendant's vessel, on a voyajfe from Shields to Alexandria and home, " voyay:e iu)t expected to exceed twelve months, amount of wajjes per calendar montii, 5/. lOx." lie had been drunken and insubordinate during the voyage out, and being on slujre at Sullna was left behind, and the slnp came home without him. In an action for wages for the time during which he had actually served on board, it was held, Brett, J., dissenting, tliat he was entitled tf) recover, though possibly not until the whole period of service stipulated for liad expired.] But, if the dismissal be unjust, the master cannot Ity his wrongful dis- charge prevent the servant from recovering due compensation. Such a case seems to range itself under the rule we have been just discussing. The mas- ter has absolutely refused to perform his contract with the servant, and it is apprehended that the servant has thereu|>on a right to rescind it, and to sue upon a (innntnm meruit for what he has already done under it. See the judg- ment in fAlh'n V. Ehrin, 11 Q. B. 742. But though he may rescind the contract, he is not. it has been said, obliged to do so. He has a riirht. it has been said, to consider it still in existence, to treat the wrongful dismissal as no dismissal at all, and to demand, at the expiration of the time for which he was hired, the whole of his stii)ulated wages, — not on a quantum meruit, but by virtue of the special contract, his own part of which he may then safely aver that he has performed, his readi- ness to serve during the rest of the terra being considered equivalent in law to actual service; and it has been thought that he may sue in indehitatus assumpsit, that being no more than any creditor may do upon an executed special contract, and his action, though not special in its form, being still upon the special contract and supported by the same evidence by which a special count would be substantiated. (inndeU v. Pontirnvj, 4 Camp. 37."), is a direct authority in favour of tliese petitions. That was an action brought by a clerk for his whole (juarter's salary against his master, who had wrongfully dismissed him in the middle of a quarter; the declaration only contained the common count for work and labour. Lord Ellenborough : " If the plaintiff was discharged without a suf- CUTTER V. POWELL. 1245 flcient cause, I think this action maintainable. Having served a part of the quarter, and being willing to serve the residue, in contemplation of law he may be considered to have served the whole. The defendant Avas therefore indebted to him for work and labour in the sum sought to be recovered." [This peculiar view of the rights] of servants and agents wrongfully dis- missed, resulted altogether from the doctrine of constructive service, which originated in decisions on the law of settlement ; and though it may be appli- cable to some other cases (see Collins v. Price, 5 Bing. 132) it seems difficult to understand how it can be rationally applied to most other cases of special contract. For instance, in Plandie v. Colburn it would have been impossible for Mr. Planche, with much show of reason, to contend that he had construc- tively written the whole treatise on armour, when, in point of fact, he had only finished half of it. It has, however, been applied to cases of servants, clerks, and agents; and perhaps, therefore, the result of the authorities on this subject may be, that a clerk, servant, or agent wrongfully dismissed, has his election of three remedies : viz., that, 1. He may bring a special action for his master's breach of contract in dismissing him, and this remedy he may pursue immediately. Pagani v. Gandolfi, 2 C. & P. 370. 2. [It was once thought] that he might w^ait till the termination of the period for which he was hired, and might then sue for his whole wages [as a debt due to him in respect of complete performance of the contract on his part], relying on the doctrine of constructive service, Gandell v. Pontigny ; and see Collins v. Price, 5 Bing. 132; and Smith v. Kingsford, 3- Scott, 279, vide tamen the observations of the judges in Smith v. Hayvard, post. [See also Feicings v. Tisdal, 1 Exch. 295, and the opinions of the judges in Emmens V. Elderton, 4 H. of Lords Cases, 624. It is now, however, clear that this remedy is not open to him, for he cannot allege that the defendant is indebted for work done ; but it does not follow from Fewings v. Tisdal that a special action of debt averring a contract to pay, a continuing readiness on the part of the servant during all the period to serve, and a dispensation from the service on the part of the master, might not be maintained. See the opinion of Mr. J. Crompton in Emmens v. Elderton, ubi siqyra.^ 3. He may treat the contract as rescinded, and may immediately sue, on a quantum meruit, for the work he actually performed ; Planche v. Colburn; but in that case, as he sues on an implied contract, arising out of actual ser- vices, he can only recover for the time that he actually served. This last was the point really decided by Lord Tenterden in Archard v. Horner, 3 C. & P. 349, a case sometimes (though, it is submitted, inconsider- ately) cited for the purpose of showing that a servant wTongfully dismissed cannot after the expiration of the term for which he was hired sue in indebi- tatus assumpsit for a compensation for any longer period than he has actually served. In that case the plaintifts declared on a special count, stating a hiring for a year, adding a count for wages. It turned out that the hiring was for a year, determinable by a month's notice. Lord Tenterden held that they could not recover on the first count, on the ground of variance, nor on the second for more than the period of actual service; and as a sufficient sum had been tendered to cover that, he directed a non-suit. It would appear that in this case the action was commenced before the expiration of the term, and, if so. Lord Tenterden's ruling is perfectly reconcilable with the case of Gandell v. Pontigny ; and this it probably was which, on its being contended in Ridgioay v. Hnngerford Market Co., 3 A. & E. 171, that the plaintiff, a dis- 1240 (TTTKK V. I'OWKI.L. missed cltM'k, wlio had wailid till the i-xpi ration of tlio torin before brinjiinfr liis action, could nctt niaintuiii imlrhifadts iis. been the result if he had Avaited till the end of the year or of the current (puirter) he could not recover on the tinlrhitalus count in re- spect of work done tlurinj; a lime which had not elapsed when he ct>mmence«l his action. It must be admitted tliat the Jud;;es cast strony relleclions u|>on dnmlfll V. /'oiitii/iiij, without, however, overrulini; it. It would not b«' ri<;ht to (juit this subject without noticini; the ca.se of /•'urdh/ V. J'riir, 2 N. oi K. XVA. in which a dillVrent construction from any tiiat has been yet suf;.f;ested, was put upon a contract very sindlar to that in Arrhnrd v. Ifonirr. The declaration contained a count for schoolinj;, hxlg- ins;:, board, meat, drink, &c. The last count stated, that In consideration that the plaintiff had, at the request of the defendant, received J. \V. as his sdiolar, and that J. W. had left the plaintiirs school without due notice, the defendant prouused to pay the plaint! tl" as nuich money as he therefore rea- sonai)ly deserved to have. It api)eared that the defendant had sent J. W. to tills pl.iiiitiir's school, and taken him away without notice, the tenns of the school beiivsj, that " a (piarter's notice is refpiired to be <;iven before the re- moval of any young gentleman, or to pay for a (piarler." The plaintitl" hav- ing recovered for a quarter, it was contended, on a motion for a new trial, that the special count was not proved, and that the plaintiff could not recover on the indchilfitns count, because the consideration was not actually executed. The court, however, held it was so. " The terms of the scIkjoI," said the Lord Chief Justice, "are, that oO/. a year shall be paid; but that if the scholar .shall be taken away without notice, an additional (luarter shall be paitl. Still, however, the tiling to be paid for is that which has been supplied. The price for half a year is l.j/. ; but if, at the end of half a year, the scholar is taken away without a (juartcr's notice, the price for the first half-year is 15^ and 17/. lOs." But Eardly v. Pt-ice has since been overruled by the case of Feicings v. Tisdal, I Exch. 295. That was an action of indtbitatua assumpsit for wages as a hired servant, and was brought to recover a month's wages claimed ))y the plaintiff, who, being a yearly servant, had been discharged without notice, and received wages to the time of her dismissal only. The under-sheriff be- fore whom the cause was tried, non-suited the plaintiff, upon the ground that the declaration should have been special, and the Court of Exchequer held he was right in so doing. " It seems to me." said Baron Parke, in his judgment. " that the true na- ture of the contract between a master and his servant amounts to this, that it cuttp:u v. POWELL. 1247 is an agreement for a year's service, with the addition that the master may tnrn the servant away at any time, on giving liini a month's warning, or in lien of tliat, a montli's wages. It is retlning to say tliat tlie montli's wages given under sucli circumstances, are an additional compensation for the by- gone service; and I cannot help thinking that, in Eardly v. Price, the Court of Common Pleas, in oixler to ol)tain justice for that particular case, broke in upon the rules of law. Archard v. Horner is, in my opinion, very good sense, and lays down a good rule." The right to rescind the contract at any time by giving a month's notice, or in lieu thereof a month's wages, only exists in the case of contracts with menial servants. See Broxham v. Warfstaffe, Exch. H. T. 1842, 5 Jur. 845. [And it seems that in such cases the servant cannot claim board wages, Gor- don V. Potter, 1 F. & F. 644.] Since the case of Fewings v. Tisdal, and the observations of the Judges in Smith v. Hayward, before referred to, [it can hardly be doubted] that the case of Gandell v. Pontigny, would not be supported at the present day ; and [the opinion] expressed above (p. 49) that a servant wrongfully dismissed cannot wait till the termination of the period for which he was hired, and then sue on the common counts for his whole wages, treating the service as constructively performed, is strengthened by the observations of Patteson and Earle, JJ., in Goodman v. Pocock, 15 Q. B. 576, a case which appears to have shaken still further the ruling in Gandell v. Pontigny. In Goodman v. Pocock, the i:)laintifl*, a commercial traveller, hired for a year at wages payable quarterly, and wrongfully dismissed in the middle of a quarter, had brought an action for wrongful dismissal, and the declaration contained a special count for the dismissal, and also an indebitatus count for work and labour. The judge who tried the cause directed the jury not to take into account the services rendered during the broken quarter, as these services were only recoverable under an indebitatus count, and the particulars of demand did not include any such claim. The jury gave damages accord- ingly, excluding any remuneration for the services during the broken quarter. The plaintifl" thereupon brought a second action, claiming under an indebitatns count the value of those services ; but the court held that the second action was not maintainable, as the plaintifl" had, by his former action, treated the special contract as still open, and having recovered damages on that footing, he could not afterwards sue on an indebitatus count, treating the same con- tract as rescinded. The court also held that in the first action the jury ought to have been directed to take into consideration the services actually rendered during the broken quarter, in awarding damages under the special count. See also the observations in the judgment of the Exch. Chamber in Elderton V. Emmens, 6 C. B. 178; [S. C. in Dom. Proc. 4 H. of Lords Cases, 624]; Snelling v. Lord Huntingfield, note {b), 1 C. M. & K. 26, and Walstab v. Spottiswoode, 15 M. & W. 501. [In Gnckson v. Stones, I E. & E. 248, where a contract had been entered into by the plaintifl' to serve the defendant for ten years in the capacity of a brewer, and the defendant had undertaken to pay to the plaintifl' a weekly sum during that term, it was held that a temporary illness of the plaintifl', not amounting to or treated as a dissolution of the contract, did not disen- title him to recover the weekly payments in respect of the time during which lie had. through illness, been unable to w^ork; the contract being still in force, and having been so dealt with by the defendant.] Assuming the position to be correct, that a servant or agent, wrongfully 1248-1272 ciTTi:i: \. 1'..ui.i,l. (lismissi'd, niny wait till thf (•xi)iratl(>n of tlu* tcnn, and then maintain an action [in the natnrcj of indthitittus dssumpsit for his whole wa^^es, (|Ucstions may arise as to his conduct in the intermediate lime, and liow far it may atl'urd the master a defence, or j^found for miti^atini^ damages : as, for in- stance, if lie have before the expiration of his term hired himself to another master. See Cuinmimj \. Columbine, G Dowl. :17:J; and Siixk- \. J'hillijm, 5 >r & \V. 27!). .V qnestion may also arise, liow far the first nmster nuiy be entitled to his intermediate earninijs, l)y virtue of the doctrine asserted in I'hinnjKiint v. lltii-flork\ 1 Camp. .">27 ; Diplnck v. liliickhurne, :\ Camp. 4:1; [Morrison v. Thompson, L. U. '.» i^. B. 480.] See Patmore v. Culburn, 4 Tyrwh. H4(», and 1 C. M. & It. Cut. Where the contract of yearly service Is put an end to by consent in the ndddle of a (juarter, there is no implied cctntract to pay ;»r« r«/<"/, imt a new aj^reement to pay for the broken part of the year's service may be inferretl from circmiistuiiifs. wiiirii sli<»uld therefore i»e submitted to the jury : [.nut- hitni v. ('rnilrii, 2 M. & fJ. 2.">.? ; and see Thoinns v. W'illiitins, 1 .\. v.t him, and he was declared a bankrupt at MaMcliester under that commis- sion, in the afternoon of the L'4lh of Novemln'r, but at what hour did not appear; and that connnission has since l)een superseded. Afterwards another eoniniission wius i.ssued on the petition of (Jreatrix and Co. The (piestion for the opinion of the court is, whetlu-r the debt, proved to Ix' due to them under the circumstances alM)ve mentioned, is sullicienl to su[)port that commission? Chi iiuik«; out a clear title, which ihcy cannot do without provinj^ a legal tlcht of the pcliliouinj^ creditor; and they cannt»t by their own act make that a good del)t which would not he so otherwise. As to notice not having heen necessary because the tirawer liad IK) effects in the drawee's hands, that goes to measuring the inconvenience which would result in every particular case fiom not giving notice. Hut the court l.ave always said that, whether any actual change of circumstances has or has not taken place, or whetlu'r the drawer may or may not have suf- fered from the negligence of the holder in not having given notice in due time, it is a strict rule of law, introduced for the sake of certainty, and that the drawer may have an oppnrlunity of resorting to the drawee. In the case of Pcarh and ]i\ir- gens (^a), \\\\vY<' a (juestion arose upon the necessity of notice heiuL' Lfiven tn the drawer, it was lontcnilcd that no chanire of tarcumstances had taken place, ov prohahle inconvenience had ensued, from want of notice; hut Loril Manstield said, it was a strict ride of law that notice should he given, and it must be adhered to in ivery case. This ease does not come within the rules laid down in the cases of Timhtl and Brown, or Medcalf and Hull (h), as to what shall be deemed sulVicient notice of non-payment or non-acceptance; because here there was no notice at all. It was said by Lee, in arguing the case of Riissi-ll and Lan;/sf([tJ' (f^, and not denied by the court, that it had been frcijuently ruled l)y Lord Manslield at (Juildhall, that it is not an excuse for not demanding payment on a note or bill, or for not giving notice of non-payment, that the maker or acceptor has become a bankrupt, as many ways may remain of obtaining payment by the assistance of friends or otherwise. The bills having been given after the act of bankruptcy, does not vary the present case ; because a debt may be discharged in due course of trade, either by payment of the money after a secret act of bankruptcy, or l)y payment of the bill, or by dishononring it. With regard to the debt's being extinguished by taking this note from the bankrupt ; by 3 & 4 Anne, c. 9, s. 7 ('/), it is enacted, that " if any person accept a bill of exchange for 20/. (a) Sittings at Guildhall, cor. Lord (c) Dougl. 514. Manstield. (d) [Made perpetual, 7 Aune, c. 25, (b) Tr. 22 G. 3.- s. 3.] BICKERDIKE V. BOLLMAN. 1277 or upwards, in satisfaction of any former debt, the same shall be accounted a full and complete payment of such debt, if such person accepting of any such bill for his debt doth not take his due course to obtain payment thereof by endeavouring to get the same accepted and paid, and make his protest as aforesaid, either for non-acceptance or non-payment thereof." Here there was neither protest nor notice, and therefore the bill must be considered as complete payment. Chamhre^ in reply, was stopped by the court. Ashurst, J. As to the general rule, it has never been dis- puted, that the want of notice to the drawer, after the dishon- our of a bill, is tantamount to payment by him. But that rule is not without exceptions ; and particularly in the case men- tioned by the plaintiff's counsel, that notice is not necessary to be o^iven where the drawer has no effects in the hand of the di-awee (a) ; for it is a fraud in itself, and if that can be proved, the notice may be dispensed with. In this case it appears that, at the time of drawing the bill, the drawer, so far from having any effects in the hands of the drawee, was actually indebted to him to a large amount. But even admitting this to be a general rule without any exception, it was certainly introduced for the benefit of the drawer. Now every rule may be waived by the person for whose benefit it is introduced. Under the circumstances of the present case, the di'awer must be considered as having waived this benefit, because the commission is founded on that creditor's debt, between whom and the drawer this transaction has happened ; and his submitting to it is a waiver of the want of notice, and an admission of the debt ; which admission the assignees have subsequently confirmed by bringing this action. Therefore I think that as the bankrupt himself has not chosen to take advantage of it by moving to supersede the commission, it does not now lie in the mouth of a third person to do so. BuUer, J. The last point may be laid entirely out of the case, because, unless the objection be well founded in the case of the bankrupt himself, it is immaterial to consider how far it was competent fqr a third person to take advantage of it. The case of Quantock and England does not apply. There the question was, whether a third person should be permitted to avail himself of the Statute of Limitations. There might be («) Vid. Galex. Walsh, oT. \l. 2:'.ii. lliTH BICKKUniKK V. ItoLLMAS. good reasons for disiillowing it in ili.il tiise, beciiuse the debt still renmint'd in lonscieme. Hut here tht- «jiiestitin is, whether there was a suiliiient debt to supixut tlie eonmiission iit the time when it issued. The tirst point to be eonsidered is, whether, under these cir- cunistanees, it was neeessary to give notiee within as sliort a tinu' as could eunveniently i»e done, that the i)ill was neither aeeeptt'd nor paid. I am of <)[)inion that no sueh iiotire was nccfssarv. < )n tlu- sccctnd trial of the cause i»f Timlal amd Jiro/vn before nie at (iuihlhall, the jury told me tln^y found their verdict for tli*- plaiiitilT on the i^iound that it had not appeared from the evidence that any injury had arisen to the j)arty from want of notice. In eonsecjuence of which, upon the subsecpUMit trial, I told the jury that where a bill was aeceptetl, it was y>r///j^ /«'•/#• e vide nee that there were effects of the drawi-r in the hands (jf the acceptor. The mistake of the jury on the former (n-casion had arisen from their taking it ft>r granted that the drawer had not been injnied by the want of notice. l>ecause he had not proved it, whereas that j)roof lay on the plaintitT to produce. And u[)on my mentioning this matter to the court, they thought that if there were no effects in the hands of the accefitor, that would vary the (piestion veiy nnich, as the drawer could not be hurt. The law require)! notice to he [liven, for this rruxon, fiirmixe if ix premnu'd that the hill is drawn on arrount of the ilrawee'x havinif effects of the drawer in his hands ; and if the latter has notice that the hill is not accepted^ or not paid^ he mai/ withdraw them imme- diateli/. But if he has no effects in the other 8 hands^ thm hr can- not he injured for want of notice (a). Soon after I sat on this bench. I trieil a cause at (Tuildhall, on a bill of exchange which was cither drawn or accepted by a person residing in Holland, and a full s[)ei'ial jury, under my direction, found a verdict for the plaintiff, notwithstanding no notice had been given to the drawer of the bill's having been dishonoured, because he had no effects in the hands of the person on whom the bill was drawn. The verdict never was objected to ; and if it be proved on the part of the plaintiff that from the time the bill was drawn till the time it became due, the tlrawer [drawee] never had any effects of the draw^ee [drawer] in liis hands, I think notice to the drawer is not necessary : for he must know whether he had (a) See Fitzgerald v. Williams, (i Bing. N. C. G9. BICKERDIKE V. BOLLMAX. 1279 effects in the hands of the drawee or not ; and, if lie liad none, he had no right to draw upon him, and to expect payment from liim; nor can he be injured by the non-payment of the bill, or the want of notice that it has been dishonoured. On these grounds I think the petitioning creditor's debt was sufficient to support the commission. Besides, in the present case, as the plaintiff's counsel have truly argued, the question is not, whether an action could be maintained on the bill itself, but whether the want of notice extinguishes the debt. As to which the case is this. A. not having any effects in C'.'s hands, draws a bill of exchange for 100?. on him, in favour of B., for value received. Now if 0. does not accept, and B. does not give notice to A., there is an end of the bill. Then how does the case stand ? A. has 1001. of B.^s in his hands, without any consideration, which therefore B. may undoubtedly recover in an action for money he had and received. Per Curiam. Let the Postea be delivered to the plaintiffs. [Though the law as to notice of dishonour is now codified by the Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), nevertheless, as there have been few cases decided upon its construction, it has been thought desirable to retain the folloAving note, which deals with the state of the law at the time when it came into operation.] In Goodall v. DoUey, 1 T. E. 712, in which case the action was brought against the payee, Buller, J., intimated that, had the action been against the drawer, the case would have been governed by Bickardike v. Bollman. And in Rogers v. Stephens, 2 T. R. 713, the decision was partly founded on Bicker- dike V. Bollman, which Grose, J., said had been well considered; and in Legye V. Thorpe, 12 East, 171, an action was brought by the indorsee against the drawer of a foreign bill drawn on one Wyatt; the declaration negatived effects in the hands of the drawee or any consideration for the bill. It appeared at the trial that the defendant had no effects in Wyatt's hands, and that the latter had therefore refused to accept, but that Wyatt was one of the executors of a person called Weeks, and that Weeks' executors had desired the defendant to employ the payee of this bill to do some work on AYeeks' property; and the defendant therefore drew this bill on Wyatt to settle with the payee. Wyatt denied that he had assets to pay the bill. The only question was, whether a protest of non-acceptance was necessary; . Lord Ellenborough thought not, and the plaintiff had a verdict; and on a motion for a new trial, tlie whole court thought the case governed by Bicker- dike V. Bollman, and discharged the rule. 12H0 UICIvKl:l)IKK V. IIOLLMAN. Clariilfje v. DaWni, 4 M. Ji S. 22ti, In another .struu;; i-.\ciit]iUlU-atlon of lhl.>i doctrine. Tbure tlu* drawer of a bill hail no effeetM In the hands of the drawee, but had supplied him with {{oods upon a credit, which would not, however, expire till lontf after the hill would be«-«)n>e. line. Me wa.s held not to be entitled to notice of Its dishonour. •• The ca.se «>f liirkfriiike v. Hull- man" said Mr. J. Bayley, " has estal)iislu'(i, and I am disposed to think, ri;:jlitly, tliat a jiarty who cannot !)e jirejiidiced l)y a want of notice, shall not be entitled to require it." In analoj^y to the rule wITkIi dispensed with noticf in sucli cases as tlu- above, It ha.s been held, tliat It is unnecessary as against the tirawer to jtrrsent such a bill on the day of Its becondng due. Terry v. I'tirkfr, «» A. & K. r.02. [ ]yirth V. Ait^^tfH, L. H. 10 C. V. i)A\).] Hut even In the very cases in widch Itirkinlikf v. liollinnn has l)een acted upon, it has l)een ileclared, that the rule estai)llshe»l in that ca.se nuist not be extended. In Clitruhjv v. D'tltnn, Mr. .lustici- I,e Hlanc went so far as to reiiret that any such decision hail ever talien place, and see the Jud};ment di'livered liy Harou I'arlvc in Curti'r v. Flmrrr, 16 M. & W. 74;J [and the jud^rment of Lord (•ainpl)ell, C. .1., In h'lfranl v. \V>il»nii. 1 K. & H. H04 ; Tttrni-r v. Smnaoti, 2 Q. B. I). 2:1, per Brett. L. J.] Accordingly it was .settled that the dniwer Is entitled to n<»lice, tlioU};h he had no effects in tlie tirawee's hands when the bill was drawn or became due, If he had eU'ects on tlieir way to the drawee, liiirktr v. Ililler, '.\ ("amp. 217; K; East, 4:5. So it was laid down by Lord Khion In a ca.se of l)ankniptcy, that, " if a l)iil were accepted /»»r thf nrrinninnilatinn >,/ the ilrntrtr, ami there were nothing l»ut that l)etween tlietn, notice wouhl not be necessary, the drawer l)eing, as l)etween him and tlie acceptor, llrst liable: but if l)ills were tirawn for the arcinninntliitinn »>/ th<- nmptor, the transaction i)eing for his benefit, tliere must l)e notice without effects; and if. In the result of various dealings, the surplus of accommodation is on his side, he Is, with regard to the drawer. In the situation of an acceptor having ettects, and the failure to give notice may lu' equally detrimental." /•>;<. Ifrl(, ;$ B. & A. CA'.K wIhtc the bill was drawn and accepted for the accommodation of the first indorsee, the drawer was held to be entitled to notice; and the same point was decided in Xorton v. rickerinf/, 8 B. vt C (">10. And the sanie rule prevailed though the persoo expected to provide funds was not a party to the bill, Lajitte v. Slatter, 6 Bing. (523. If the drawer had funds in tlie drawee's hands suflicitnt to meet the bill, even in part, though not wholly, he was entitled to notice, Thnrkeray v. Blacken, 9 Camp. KU. [But sec Carew v. Durkir„rth, L. R. 4 Ex. 313.] If the drawer had made a provision to have funils in the ilrawee's hands to meet the bill, he had a right to notice, though the funds might not have actually arrived there, liobins v. Gibson, 3 Canjp. 334. And if the drawer had eft'ects at the time when the bill was drawn, he did not lose his right to notice, although before the time of payment he might have ceased to have any, Orr V. Magcnnis, 7 East, 359, or was intlcbtcd to the drawee in a larger sum, Blackhan v. Daren, 2 Camp. 503. These ai'e strong cases, especially Orr v. Maijennis, for there the drawer could, at the time wlieu it fell ilue. have had no reasonable expectation that BICKEllDIKE V. BOLLMAN. 1281 the bill would be paid, and could have sustained no prejudice from the want of notice; so that that case may be considered as going the length of deciding that if, at anj^ time after the bill was issued, the drawer could have reasonably expected that it would be paid, he had a right to notice. Thus in Hammond v. Dufrenc, 3 Camp. Uo, it was held unnecessary that the effects should be in the drawee's hands when the bill was drawn, if they were there before it became due, [and see Carew v. Duckvjorth, L. R. 4 Ex. 313.] Although it was said by Mr. J. Bayley. in Glaridge v. Dalton, as above stated, " that a party who cannot be prejudiced by want of notice, shall not be entitled to require it," still the application of this dictum must be confined to the particular description of case then before the court ; for we have seen that it does not extend to such a case as Orr v. MrKjfnnis. So, too, it is difficult to conceive how the drawer could be prejudiced by want of notice, where the drawee had become bankrupt or notoriously insolvent. Yet in both those cases, he was unquestionably entitled to it. See Bussell v. Lang- staffe, Dougl. 514, referred to in the text; Esdaile v. Sowerhy, 11 East, 114; and in Dennis v. Morrice, 3 Esp. 158, Lord Kenyon refused evidence tendered for the purpose of showing that the drawer was not prejudiced by want of notice. In fact, to use the words of the Lord C. J. Tindal and Mr. J. Bosan- quet, in Lafitte v. Slatter, 6 Bing. 627, " Bickerdike v. Bullman is an excepted case, the principle of which is not to be extended." See also Caunt v. Thompson, 7 C. B. 409, where it was said by Cresswell, J., delivering the judgment of the court, " It may be assumed to be a settled rule that knowl- edge of the probalnlity, however strong, that a bill of exchange will be dishonoured, cannot operate as a notice of dishonour, or dispense with it, ... so also it may be considered as settled that information that a bill has been dishonoured, derived from a person not having authority to give it, does not supply the place of notice. Hence it has become usual to say that knowledge of the dishonour of a bill is not equivalent to notice." It appears, however, from the case last cited, that where the drawer was himself the party to pay the bill (for instance Avhere he was the executor of the acceptor) his knowledge that the bill liad been presented to him, and was unpaid, was equivalent to notice. [In re Leeds Banking Co. Ex parte Prange, L. R. 1 Eq. 1, it was held that an indorsement payable " in need" at a particular bank, did not render the bank notified the agents of the indorsers to receive notice of dishonour, and that therefore, although the drawer and acceptor had become bankrupt be- fore the bill became due, notice to the bank was not notice to the indorsers, nor could presentment for payment even to the indorser himself, operate per SI' as notice of dishonour by the acceptor.] It seems, however, from the expressions of the court in the case of Fitz- gerald V. Williams, G Bing. N. C. 68, that in pleading the want of notice [was] prima facie sufliciently excused by showing that there were no funds in the drawee's hands ; and it was decided there, that where the declaration averred that there were no funds in the drawee's hands, nor any consideration for the acceptance, and that the defendant sustained no damage from the w\ant of notice, it lay upon the defendant to prove the damage if any resulted. But the circumstances which would amount to a sufficient excuse for want of notice as against the drawer, did not always excuse want of notice to an indorser. Where an action was brought by the indorsee of a promissory note against the indorser, to whom it had been indorsed by the payee, the declara- tion alleged, that neither at the time the note was made, nor afterwards and l:i«:i BICKKUDIKK V. IJMIJ.MAN. before It became due, nor when It became due and on presentment for pay- ment, liad thr niakcr or payee any elTects of tlie defemlant in hh lisndM, nor was there any consideration or value fur tlie making of tlie note, of the pny- nieiit tliereof, or its indorsement l)y the payee to tlie defendant, ami that the defeMdaiit iiad not sustained any damage l)y reason of his not ha\in^ had no- tice of tlie lion -piiynient of the note; It was held that as against nn imltirurr, the declaration tlid not state a snillcient excuse of want of notice of iIIh- honour, as it was cimsiHtent with the avernieiits in the declaration, that the note nii:;lit have been indorsed by the defendant for the acconinuHlation of a prior party, in wliich case the defendant wonhl Ih> entitled to notice of tlLs- hfinour, f'urdr v. Flinnr, W, M. & W . 743; [accordinirly in Turnt-r v. SotnpiiDn, •_' (^ H- I). -':»; 4t; L. J. Q. H. u;7, where as between all the parties to an ac- commodation bill the intention was lliat the last Indorser shoidd pay it. it was lield in an action a:;aiiist a prior indorser that he was entitled to notice «d' dishonour; and see F-islir v. I'ltikt^r, 2 ('. 1*. D. |H; 4»> L. .1. ('. I*. 77. J Wliere no notice had been iriven nt mnj timf, the excuse must have lu-en set out on the record; If It had l»een ^iven. but at a time whleh woidd be too Inte in the usual course, the matter of excuse nd;;ht probalily have been used to show that It was, under the circumstances. In reasonable time; JuiUjmfnt, Cnrtfr v. t'lmrcr, iil>i .iiip. See where the Indorser was hehl not to Ik* entitled ti> notice, Ciirutij v. MnnlfZ dn Cuntu, 1 Ksp. ,'102, and, as to what excuses were sulllcieiit in the analot;ous case of presentment for payujcut. see Sumln v. ('l>trk\ H (". B, 7.'»1. [linnk i>f \'iin IHrmi-n'n Land v. llttik i>f Virtnria, L. K. •^ V. (\.Vi it was addressed should lie infornu-d. in t«'rms. that the holder looked to him for payuu'ut. See Fiirzf v. S/titriroud, 2 i^. li.liHH; S/nltmt v. liniit/iiniitf, 7 M. & W. 4:?t; ; Mi,rii v. Rnnrn, 11 M. & W. 372; /intrhntils v. Sprnn/i'tt, 14 M. & W. 7; r/iard v. F<>.r. 14 Q. B. 2(X1; Mrlbrxh v. liippiu, 7 Kxch. ">78 ; Met- calfe V. /iichai-d.siin, 11 ('. B. 1011; and Paul v. .AW, 4 II. & X. 35.'); Viall v. Michael, Q. B. 30 L. T. 433. Ex partf Loicenthal, L. U. 9 C. II. 591. As to wliat was reasonable diligence in giving notice of dishonour, sec flladicell v. Turner, I.. K. ."> Kx. .j9 ; Berridije v. Fitzijerald, L. U. 4 g. B. t;39. In re Leeds Biinkinij Co., L. R. 1 Eq. 1 ; Prideaux v. Criddle, L. U. 4 Q. B. 4.'».'. : Iletjienod V. Pirkeriiif/, L. R. 9 Q. B. 428; notice of dishonour to the drawer himself ini^lit 1)0 sullicicnt notwithstanding that he had been bankrupt and a trustee liad been apiJointed. ex parte liaker, 4 Ch. I). 79."); 4(3 L. J. Bkcy. CO. A subsequent promise to pay made Ijy an indorser of a bill who has had no notice of dishonour, was evidence of a waiver of the right to notice. See Woods v. Dean, 3 B. & S. 101 ; C'ordertj v. C'drille, 32 L. J. C. P. 210. It may here be noticed that by some foreign laws, notice of dishonour is given thi'ough an offlcial channel, and so that the receipt of it by an indorser residing out of the country may be matter of courtesy or chance. It had been held that the drawer or indorser in England of a bill directed to a per- son residing in such foreign country, is only entitled to the notice which its law prescribes; a proposition which, though, perhaps, not sustainable upon BICKERDIKE V. BOLLMAN. 1283 the grounds on which it was rested in Rothschild v. Currie, 1 Q. B. 43, will be found, it is submitted, upon examination, to have reason as well as conven- ience in its favour (see Hirsdijield v. Smith, L. R. 1 C. P. 340; 35 L. J. C. P. 177). It had been afterwards approved and adopted in the Court of Appeal in Home v. Ronquette, 3 Q. B. D. 514, where, though the court questioned the reasoning of Rothschild v. Currie, they adopted the decision. Home v. Rou- quette indeed went one step further, for the court unanimously regarded as immaterial the fact that the bill there sued on was a foreign bill, and held that the rights of an indorser in England to notice of dishonour might be modified by the fact that the bill had been subsequentlj' indorsed in a country where notice of dishonour was not necessary. In that case the plaintiff had indorsed the bill in Spain, where it would seem that notice of dishonour by non-acceptance is not necessarj^ and had himself consequently become liable upon it although he did not receive notice until long after the bill had been dishonoured. On receiving notice of dishonour he, however, immediately passed it on to the defendant from whom he had taken the bill by indorsement in England. It was held that the defendant was liable. Cotton, L. J., indeed pointed out that the case did not decide that the plaintiff who took by indorsement in England could have recovered against the defendant had he delayed in pass- ing on the notice of dishonour. It is submitted, however, that as in Hirsch- field V. Smith, so in the case supposed, the real question would be, what was reasonable notice to give under the circumstances, and as any notice would have ))een practically nugatory after the delay which had already taken place, a plaintiff's right could hardly be defeated by any additional delay beyond that which is under ordinary circumstances permissible by English law. See further Roiiquette v. Orerman, L. R. 10 Q. B. 525, and the Notes to Mostijn v. Fabrigas, ante. Vol, I. The same principle explains what at first sight appears anomalous, viz., that a person having certain rights under a contract made in this country should find those rights modified by matter subsequent which has taken place in a foreign country. For since the right of an in- dorser in England is to receive reasonable notice of dishonour, and since any person who indorses a negotiable instrument must be taken to know that it may circulate outside this country, reasonable notice may well be held to be such notice as having regard to the various places where the bill has cir- culated it has been possible for the party suing to give. See also per Wills, J., Lee v. Abdy, 17 Q. B. D. p. 314. The sections of the Bills of Exchange Act, 1882 (45 & 46 Vict. c. 61), which deal with the subject of this note are as follows : — Sec. 97 enacts that, 1. The rules in bankrivptcy relating to bills of exchange, promissory notes, and cheques, shall continue to apply thereto notwithstand- ing anything in this Act contained. 2. The rules of common law, including the law merchant save in so far as they are inconsistent with the express provisions of this Act shall continue to apply to bills of exchange, promissory notes, and cheques. Sec. 47, sub-sec. 2. Subject to the provisious of this Act when a bill is dis- honoured by non-payment, an immediate right of recourse against the drawers and indorsers accrues to the holder. Sec. 48. Subject to the provisions of this Act, when a bill has been dis- honoured by non-acceptance or by non-payment, notice of dishonour must be l'2H4 i:ifKi:iti>iKi; v. isollman. •jivon to the drftwor ftiul each iii(li>rf.t'r, arid any drawi-r <»r imiorscr to whom siicli iiotict' is not ;;ivt'ii is discliari^i-d ; Provided tliut (1) Wlierr a i)ill is dishonourL-d l»y n<»n-arc«'|»tanco, and notice of dislioniiiir Is not >?lvcn, the rlj^jlits of a iioUler in ilue course subsK!- (juent to the omission, shall not be prejudiced by the omission. (2) Where a bill is dishonoured by non-acceptance, and due notice of dishonour Is tjiven, it sliall not be necessary to al or not. 3. Where the notice is given by or on behalf of tlie hohler. it enures for the benellt of all siibsecpient holders ami all prior indorsers who have a right of recourse against the party to wliom it is given. 4. Where notice is given by or on l)ehalf of an iudorst-r entitled to give notice as hereinlu-fore provided, it enures for the benefit of tlic holder and all indorsers subsequent to the party to whom notice Is given. 5. The notice may be given In writing or by personal ciunmunic.itlitn, and may be given in any terms which sutlhiently identify the l>ill and intimate that the bill has been dishonouretl by non-acceptance or noii-i)ayment. G. The return of a dishonouretl bill to the drawer or an indorser is, in point of form, deemed a sullicient notice of dishonour. 7. A written notice need not be signed, and an jnsutllcient written notice may be supplemented and validated by verbal communication. A misdescription of the bill shall not vitiate the notice unless the party to whom the notice is given is in the fact misled thereby. 8. Where notice of dishonour is reipiired to be given to any person, it may be given either to the party himself, or to his agent in that behalf. 9. Where the drawer or indorser is dead and the party giving notice kuows it, the notice must be given to a persf)nal representative if such there be, and with the exercise of reasonable diligence he can be found. 10. Where the drawer or indorser is bankrupt, notice nuiy be given either to the party himself or to the trustee. 11. Where there are two or more drawers or indorsers who are not part- ners, notice must be given to each of them, unless one of them has authority to receive such notice for the others. 12. The notice may be given as soon as the bill is dishonoured, and must be given Avitliin a reasonable time thereafter. In the absence of special circumstances notice is not deemed to have been given within a reasonable time unless : — (a) Where the person giving and the person to receive notice reside in the same place, the notice is given or sent off in time to reach the latter on the day after the dishonour of the bill. BICKEKDIKE V. BOLLMAN. 1285 (6) Where the person giving and the person to receive notice reside in dift'erent places, the notice is sent oflT on the day after the dishonour of the bill, if there be a post at a con- venient hour on that day, and if there be no such post on that day then l)y the next post thereafter. 13. Where a bill when dishonoured is in the hands of an agent, he may either himself give notice to the parties liable on the bill, or he may give notice to his principal. If he give notice to his principal he must do so within the same time as if he were the holder, and the principal .upon receipt of such notice has himself the same time for giving notice as if the agent had been an independent holder. 14. Where a party to a bill receives due notice of dishonour, he has after the receipt of such notice the same period of time for giving no- tice to antecedent parties that the holder has after the dishonour. 15. Where a notice of dishonour is duly addressed and posted, the sender is deemed to have given due notice of dishonour, notwithstanding any miscarriage by the post office. Sec. 50. 1. Delay in giving notice of dishonour is excused where the delay is caused by circumstances beyond the control of the party giving notice, and not imputal)le to his default, misconduct, or negligence. When the cause of delay ceases to operate the notice must be given with reasonable diligence. 2. Notice of dishonour is dispensed with — (a) When after the exercise of reasona1)le diligence notice as required by this Act cannot be given to or does not reach the drawer or iudorser sought to be charged : (b) By waiver express or implied. Notice of dishonour may be waived before the time of giving notice has arrived or after the omission to give due notice : (c) As regards the drawer in the following cases, namely, (1) where the drawer and drawee are the same person; (2) where the drawee is a fictitious person, or a person not having capacity to contract; (3) where the drawer is the person to whom the bill is presented for payment ; (-1) where the drawee or acceptor is as between him- self and the drawer under no obligation to accept or pay the bill ; (5) where the drawer has countermanded payment : (d) As regards the iudorser in the following cases, namely, (1) where the drawee is a fictitious person or a person not having capacity to con- tract, and the indorser was aware of the fact at the time he indorsed the bill; (2) where the indorser is the person to whom the bill is presented for payment ; (3) where the bill was accepted or made for his accommodation. Sec. 72. Where a bill drawn in one country is negotiated, accepted, or pay- able in another, the rights and duties, and liabilities of the parties thereto are determined as follows : — 1. The validity of a bill as regards requisites in form is determined by the law of the place of issue, and the validity as regards requisites in form of the supervening contracts, such as acceptance, or indorsement, or acceptance supra protest is determined by the law of the place where such contract was made. Provided that — (6) Where a bill issued out of the United Kingdom conforms as regards requisites in form, to the law of the United ll*8G mCKKUDIKK V. m»LL.MAN. Kiiinil'iiti, it may, for tlu* puri>o-,«' of t-nfort-luK payment lIuTi-of, Ik> tn-utfil a.s vullil as Im-Iwitij all p«T>uiis wlio iifi;<)tiatf, lioUl, or hocomt- parties to it In tliu I'nltctl Kinyiloni. (Sff lif M'lrnfUl'-s d'r. Co., M Ch. I). 5'JM ; 66 L. J. I'll, in;, aca.se ileclilf«l upon bills drawn In-forf tin- statute.) 2. Subject to the provisions of this Act, the Interpretation of the tlratv- In;;, Intlorsement, acceptance, or acceptance »>n>rn protest of a hill, is tielermlneii by the law of the place where such contract Is moile. Provided that where an inland l>ill is indorsed in a foreign country, the indorsement shall, as regards the payer be interpreteil accoriliiii; to the law of the I'nlted Klni;doni ;J. The duties of the liuUler w ith respect to presentment for accceptance or payment, and the necessity for or sullh-lency of a protest or notice (»f illshonour, or otherwise, are detennined by the law of the ploce where the act Is done, or the bill Is dlshonoureil. 5. Where a bill Is drawn In one country and Is payable In another, the due dale thereof Is detemdned according to the law of the place where it Is payable.] Omu ot the ino.st t'liMily .scttltMl rules of all the law, i.s that lU'itlior the drawer nor the in(lors«'r of a hill of exrhaiipe .shall lu' liahle thereon unless the holder shall at the proper time pre- sent the same foi- aeeeptanee or payment, and, in ease of refusal, shall at once i^ive to the drawer and indurser notice of .such dishonor, i»r at least use rcasoiiahlc diliLjenee to ilu so. 'I'his has loner j)ei>n the recoLTni/.cd law in ICn^land and it has In'en fully accc|)te(l in the I'nitcd States: Muck >\ Cotton, 2 Conn, lii*!; liciry ''. l{ol)ins(»n, *• .Johns. IJl ; Mi Kinney v. Crawford, 8 S. cV K. :{.')1, :\'u. Tlu" contract of the drawer or indorser is only to be secondarily liable, and their responsibility is in)t absolute but conditional on their receiving due notice of the dishonor. The apparent exception.s to the rule are simply the ones which prove it. They can all Ikj easily distinguished and a good reason is found for their existence ; this reason is one wliich in the law always creates an exception to general rules, viz., fraud. In some form or other, the element of fraud is foinid in all cases where the stringency of the general rule seems to have been relaxed. Many modifications of the general rule, laid down in this leading English case, have been made in this country, and many refinements have been gone into, but in the end we come back to the first proposition, viz., that fraud in some form or BICKERDIKE V. BOLLMAN. 1287 other must be present to permit a departure from the strict rule. It may safely be said that the drawer and indorser must always have notice before any liability on their part arises ; they must have notice that the bill has not been accepted or paid at maturity. Notice is imperative, and in all cases except where fraud intervenes, the payee must make reasonably active efforts to advise the one secondarily liable so that he can take such steps as may be necessary for his own protection ; but where fraud does intervene, the fraud is itself notice. If the Ijill is drawn with a full consciousness on the part of the drawer that there are no funds in the hands of the drawee, the drawer must know that he has no reason to expect anything except dishonor, and from the very moment of drawing the bill he has the fullest possible notice of the dishonor. Chief Justice ]Mar- shall extends the doctrine beyond the narrow limits of the English case by saying that although no funds were actually in the hands of the drawee when the draft was made, yet, if by previous arrangement the drawer had good reason to expect that funds Avould be provided to meet the bill, he would be free from the charge of fraud, and would be entitled to the custom- ary notice ; French v. Bank of Columbia, 4 Cr. 141. For cases establishing fraud as the distinguishing mark, see Stanton V. Blossom, 14 Mass. 116 ; Grosvenor v. Stone, 8 Pick. 79 ; Kins- ley V. Robinson, 21 Id. 327 ; DoUfus v. Frosch, 1 Denio 367 ; Van Wart v. Smith, 1 Wend. 219, 227 ; Robinson v. Ames, 20 Johns. 146, 150 ; Hoffman v. Smith, 1 Cai. 157 ; Mobley v. Clark, 28 Barb. 390 ; Cathell v. Goodwin, 1 Harr. & Gill 468 ; Hill V. Norris, 2 Stew & P. 114 ; Yongue v. Ruff, 3 Strob. 311, 313 ; Bloodgood v. Hawthorn, 14 La. 124 ; Oliver v. Bank, 11 Humph. 74; Wollenweber v. Ketterlinus, 17 Pa. St. 399; Hop- kirk V. Page, 2 Brock. 20 ; Dickins v. Beale, 10 Peters 572 ; Brower v. Rupert, 24 111. 182 ; Howes v. Austin, 35 Id. 396 ; Wood V. Price, 46 Id. 435 ; Welch v. B. C. Manuf. Co., 82 Id. 579. If he had no funds at time of drawing, and he knew that fact, he is not entitled to notice. See Ford v. McClung, 5 W. Va. 156 ; Spear v. Atkinson, 1 Ired. 262 ; Denny v. Palmer, 5 Id. 610 ; Cedar Falls v. Wallace, 83 N. C. 225 ; Dunbar v. Tyler, 44 Miss. 1 ; Richie v. McCoy, 13 Sm. & Mar. 541 ; Mehl- berg V. Tisher, 24 Wis. 607 ; Pitts v. Jones, 9 Fla. 519 ; Shaffer \'2HS IJICKKUDIKK V. I«)LL.MAN. V. Miuldox, 9 Neb. 20.'); Aimemliaz v. Senia, 40 Tex. 202; McRae r. Rhodes, 22 Ark. 31;'); Sullivan r. Deadinaii, 2:{ Id. 14; Rank v. Easlev, 44 Mo. 280; Mislt r. Trovingcr, 7 Ohio St. 2S1. At first siglit it seems ;is thon<,di fraud must he presumed from tlu" fai't of drawing against *• no funds " and sonit* case.s have gone on that theory; Fotheringham v. Rrico, 1 Ray 2'.tl ; Rakc-r /-. (;allaght'r, 1 Wash. V. ('. 401 ; Read r. Wilkinson, 2 Id. r)14; Diikins r. Real, lO l*eter.s .'u'l. Rut sonuthing more is really nee'. Armstrong, ;> Johns. Cas. ') : I'^ranklin /•. \'anderi>«>til, 1 JLill ~H. See further: Curry c. Ileilong, 11 La. An. Ool: Anderson v. Folger, 11 Id. 20'.>; (loiladay r. Rank, 2 Head •>! ; Miser <'. Trovinger, 7 ( )hio St. 2S1 ; Wo.mI r. .M( M.ans, 2:^ Tex. 4H4. Tli;it the holder may avail himsidf of the exception to the rule he must show allirmatively that there were no finnls when the bill was ilrawn, and have been none up to the time of maturity; (iolladay v. Rank, 2 Head .")7 ; and to show this lie must have more than simply a statement by drawee that the bill ought not to have been drawn, for in such case the drawee is not the agent of the drawer; Carh' r. White, 9 Greenl. 104. In case the bill has been accepted, and then not paid at maturity, the burden is strongly on the holder to show "no fumls," for presumably the drawer rightfully expected funds ; Richie v. McCoy, 13 Sm. & Mar. 541; Ihnibar v. Tyler, 44 Miss. 1. Strictly the exception is confined to bills of change not accepted ; in the case of notes we may have an analogous case, where a payee, knowing that there was no conmleration for tlie note, indorses it over, in such case the indorser will not be entitled to notice ; Gee v. Williamson, 1 Porter, Ala. 313. Rut usually it does not apply to a bill of exchange accepted, nor to a prom- issory note, — if the maker of a promissory note be insolvent the bolder must still give notice to the indorser ; Pons's Exec. V. Kelly, 2 Hay. (N. C.) 45. In all the cases where notice has been dispensed with we shall find the true reason to be fraud in one form or another. It is not absolutely necessary to con- stitute a fraud that the bill be drawn against " no funds."" It is suflficient if through any fraudulent act of the drawer the bill BICKEEDIKE V. BOLLMAN. 1289 is presented against no funds. At the time of drawing the bill the funds may be in the hands of the drawee or reasonably on their way there, and at that moment the draAver may have no fraudulent intent whatever, but if he does any act in the interval before presentment, by which the funds are prevented from meeting the obligation, he is at that very moment charged with notice, for he must know of the certain dishonor which awaits the bill ; Valk v. Simmons, 4 Mas. 113 ; Eichelberger v. Finley, 7 Harr. & J. 381 ; Harker v. Anderson, 21 Wend. 372 ; Sutcliffe V. McDowell, 2 Nott & McC. 251 ; Lilley v. Miller, Id. 257. Where the check or draft is drawn against funds in good faith, and later, through the carelessness or mistake of the drawer, they are withdrawn or applied to other uses, the cases seem to hold that if the drawer acted in good faith he is en- titled to notice. It would seem hard to accuse him of fraud in such a case, but it would seem that another principle should apply and one more exception be grafted on the law, for where one of two equally innocent persons must suffer, the loss should fall on the one who made the mistake ; but the cases do not go so far. It must appear, it seems, that the cbawer hnew that there would l)e no effects in order that notice to him may be dispensed with ; Edwards v. Moses, 2 Nott & McC. 433 ; Orear V. McDonald, 9 Gill 350. Another exception to the general rule is where accommodation paper is involved ; this, like fraud, always creates an exception. It is drawn for the benefit of the drawer, and he agrees to take it up. He is in this case primarily and not secondarily liable, and he has no claim to notice ; he is required to see that it is paid when due, and must know of any default. This doctrine is supported by the follow- ing decisions : Hoffman v. Smith, 1 Cai. 157 ; Reid v. Morrison, 2 W. & S. 401 ; Evans v. Norris, 1 Ala. 511 ; and by dicta in the following cases : French v. Bank, 4 Cra. 160 ; Agan v. M'Manus, 11 Johns. 180; Holland v. Turner, 10 Conn. 308. So, too, in case of a draft indorsed for accommodation of drawer, with the knowledge of the indorser, where there was no ex- pectation that the bill would be paid by the drawee, the in- dorser is not entitled to notice ; Farmers' Bank v. Vanmeter, 4 Rand. 553. Nor is an indorser for whose accommodation the maker signed the note ; Bank v. Ryerson, 23 la. 508 ; Holman V. Whiting, 19 Ala. 703. But the acceptor cannot require notice of a demand on drawer and a refusal, even though he 12!>0 iU(Ki;i;i)iKK v. ijoll.man. aici'ptcil tor the accommodation of the ilr.iwer ; Cox r. Rank, •JH (ia. ft'2*.K Nor can an indorscr rcijnirc notice where the maker is not liahh' to a hoiui fiile indorsee before maturity and foi value: I'erkins v. White, 3t> Ohio St. oIJU. Nor can one who is really a maker, altliouijh he si^netl apparently as an indoiser ; Raymond v. McNeal, 'M\ Kan. 471. Hut an imhu-ser on an accomnuxhition not*-, nuide for the lx,'nefit of the maker, as also the drawer of an accommodation \n\\, is entitled to notice; lio^^'y r. Keil, 1 Mo. 74:5; Denny v. I'alnicr, ") Ired. tJlO; Shcrrod /•. Kliodfs, .'> Ala. >>s:{. A third form in which the fraud may show itsidf is where the hill is rejj^ularly drawn, hut later the drawer (jr indorser agrees to take care of it, thus assuming; a primary liability. In such case of coui-se he is nt)t entitled to notice ; Hond r. Farn- ham, 'j Mass. 170. An attempt luus l)een made to tix /mmtihft- injur// to the drawer or indorsi-r as the distin^^uishin*; mark, hut that it'ally leaves it as lx;f«)re, for in contemplation of law, want of notice may always woik injury, and it is by no nuans a case i)( (iiitnnmn dfixifiir injtiriir ; liank r. Iluj^hes, 17 Wend. *J4. In the case of a ifii(iriiiit'>r tlu- aujount of po.ssible, or, rather, actual injury, which has come to him from lack of notice, is sometimes allowed to he shown: liiackett v. Rich, 23 Minn. 48'); Newton {'. Dicrs, 10 Neb. 2S4 ; althoui^h it is usually held that a guar- antor has no idaim to notice, his liability not l)eing conditional on that. The notice must l)e actual, or at least a reasonable endeavor uuist be made by the holder to j^ive the notice. There is no such thinj^ as constructive notice. Even well-known insolvency or bankruptcy of the drawee is not sulVicient notice ; sonu'thiiio- further must be shown. The rule has become arbi- trarily lixcd, and it makes no ditTerence that as a matter of fact the drawer or indorser wouM have been in no better })osition had he been notilied. The holder neglects to give notice at his peril. And if funds were in the hands of the drawer, the drawee will be entitled to notice even if he did actually know of the insolvency ; Cedar Falls v. Wallace, 83 N. C. 225. So, too, the insolvency of drawer or maker does not excuse not giving notice ; Myers v. Coleman Anth. N. P. (N. Y.) 205 ; Bank v. Connoway, 4 Houst. (Del.) 206. The fraud has the effect of depriving only the one perpetrating it of notice ; a fraud by a drawee would not affect a botid fide indorser nor vice versa. If BICKERDIKE V. BOLLMAN. 1291 one indorser commit a fraud this must not affect another in- dorser in good faith. Fraud does not reach beyond the person ; Bank v. Vanmeter, 4 Rand. 553 ; see also Fen wick v. Sears, 1 Cr. 259. The exception in regard to accommodation paper does not act to deprive a hoyid fide indorser of his right to notice. He is as much entitled as though it were not accommodation paper ; his position in each case is the same ; he is only secondarily liable, and no circumstance except fraud on his part can make him anything else ; French v. The Bank, 4 Cr. Ill ; Jackson V. Richards, 2 Cai. 343; Smith v. M'Lean, Taylor, N.C. 72; Richter v. Selin, 8 S. & R. 439 ; Holland v. Turner, 10 Conn. 308. In the case of a l^ill drawn for the accommodation of the acceptor, the drawer occupies the same relative position. Under no circumstances is he primarily liable ; hence he must have notice ; Shirley v. Fellows, 9 Port. 300. Where the whole transaction is within a firm, i.e.^ when the drawer is a member of the firm on which the bill is drawn, or vice versa., the law implies that the knowledge of one is knowledge of all, and no formal notice need be given. In this case the law seems to accept the doctrine of constructive notice. If the firm shall fail to pay it is assumed that each individual partner, the drawer, etc., must have known of the fact of insolvency at once, and he could not take any step to protect himself, his individual liabil- ity remaining over and above what the firm could pay ; Fuller V. Hooper, 3 Gray 334; Gowan v. Jackson, 20 Johns. 176; Porthouse v. Parker, 1 Camp. 82 ; New York Co. v. Meyer, 51 Ala. 325. If it be ivliolly within the firm the rule holds ; Hill V. Bank, 3 Humph. 670. But if the transaction is between two firms consisting partly of the same members, the rule does not hold good and notice must be given ; Dwight v. Scovil, 2 Conn. 654. See contra., New York Co. v. Selma Bank, 51 Ala. 305. Where the transaction is by the partners in their individual capacity, one as drawer, the other as indorser, notice is neces- sary ; Morris v. Husson, 4 Sandf. 93 ; Poland v. Boyd, 23 Pa. St. 476. The same rule does not apply to joint drawers or indorsers as to partners. Notice must be given to each to charge him ; Sayre v. Prick, 7 W. & S. 383; Miser v. Trovinger, 7 Ohio St. 281; and W'illis v. Green, 5 Hill 232, goes so far as to say that all llil'J HK KKKDIKK V. IJOLLMAN. must have notice in oriUr lliiil iiiiy of tliein may l)e liable, and in ease one be dead notice must l)e t^iven t.i liis t-state. St-e on this point, also, I'eople's Hank v. Keeeh, '2*> Md, ')21, and Dabney t'. Stidj^'er, 4 Sm. *S: Mar. 74!*, which case also hohls that notice to tiie surviving' partner is notice to the firm and sullicient to Imld the estate of (i:J. When a strani,'cr writes his name on the. back of the bill or note, he makes himself prima t'ltrie a joint maker and is not entitled to notice; liaker v. Block, ^50 Mo. -2"); see Richards v. Warring, 31> Harb. o o ; Ma.ssey v. Turner, 2 lloust. (Del.) 79; Worcester Hank v. Lock-Stitch Fence Co., 24 Fed. Kei). 221. A guarantor or surety, although not primarily liable, is not entitled to notice: the only condition imposed on liis liability is that the one primarily liable .shall fail to pay, then his liability arises; Allen r. Ivightmere, 20 Johns. 305; Matthewson v. Sprague, 1 K. 1. S; Clark v. Merriam, 2o Conn. 570 ; Scott v. Shirk, t;o Ind. 100. One case is contra and tries to make out that the guarantor is entitled to notice, except in the case of the insolvency of the original promisor; lirooks v. Morgan, 1 Harr, (Del.) 123. This case cannot be supported on principle. The whole theory of the exception is admirably summed up in these few words : " It is a maxim that no man shall take advantage of his own wrong;" Fotheringham v. Price, 1 Ha}- 291, 293. The fraud may be perpetrated by indorsing a bill or note which is tainted with usury, for in tliis way it is caused to be " presented against no funds." In such case nothing is transferred by the indorse- ment, the contract being void ab initio; Copp v. M'Dugall, 9 Mass. 1. The cases differ as to what is a sufficient allegation in the pleadings to permit proof of -no f untls " as "notice." BICKEEDIKE V. BOLLMAN. 1293 In Frazier v. Harvie, 2 Litt. 180, both allegations were made, and there is a dictum that " no funds " was a necessary allega- tion. The following case points the same way ; Hill v. Varrell, 3 Greenl. 233, 236. The opposite view is taken in the following cases : Shirley v. Fellows, 9 Port. 300 ; Camp v. Bates, 11 Conn. 487, 493 ; Pat- ton V. McFarlane, 3 P. & W. 419, 425; Spann v. Baltzell, 1 Fla. 301, 326 ; and it is held that an allegation of " notice " may be sup- ported by any evidence which shows notice, — fraud, of course, being treated as notice, or any excuse for not giving notice. Of course the drawer or indorser may waive his privilege of notice ; but in doing this it must clearly appear that he did so intention- ally, with full knowledge of his rights ; or else it must appear that he is estopped to deny full knowledge by having by his act put the holder in a worse position than he would otherwise have occupied, by making him believe a waiver was intended ; Bruce V. Lytle, 13 Barb. 163 ; Trimble v. Thorne, 16 Johns. 152 ; Teb- betts V. Dowd, 23 Wend. 379 ; Bank v. Dill, 5 Hill 403 ; Bank V. Ashworth, 105 Mass. 503; Hopkins v. Liswell, 12 Mass. 52; Creamer v. Perry, 17 Pick. 332; Gove v. Vining, 7 Mete. 212; Whitaker v. Morrison, 1 Fla. 25, 32 ; Schmidt v. Radcliffe, 4 Strob. 296 ; Bank v. Wray, 4 Id. 87 ; Robbins v. Pinckard, 5 S. & M. 51; Merrimack Co. Bank v. Brown, 12 N. H. 320, 325 ; Norris v. Ward, 59 Id. 487 ; Bank v. Leathers, 10 B. Mon. 64, m ; Moyer's Appeal, 87 Pa. St. 129 ; Tobey v. Berly, 26 111. 426 ; Tardy v. Boyd, 26 Gratt. 631 ; Johnson v. Arrigoni, 5 Oregon 485 ; Matthey v. Gaily, 4 Cal. 62 ; Harvey v. Troupe, 23 Miss. 538 ; Allen v. Harrah, 30 la. 363 ; Ballin v. Betcke, 11 Id. 204 Campbell v. Varney, 12 Id. 43 ; Freeman v, O'Brien, 38 Id. 406 Mense v. Osbern, 5 Mo. 544 ; Dorsey v. Watson, 14 Id. 59 Clayton v. Phipps, 14 Id. 399 ; Salisbury v. Renick, 44 Id. 554 Wilson V. Huston, 13 Id. 146 ; Bogart v. McClung, 11 Heisk 105 ; Fell v. Dial, 14 S. Car. 247 ; Ford v. Dallam, 3 Cold. 67 GoUaday v. Bank, 2 Head 57 ; Power v. Mitchell, 7 Wis. 161 A waiver must be made with full knowledge of all the facts but this will be presumed from a promise to pay. This pre- sumption must then be rebutted by the promisor ; Low v. How- ard, 10 Cush. 159 ; Tower v. Durell, 9 Mass. 332 ; Myers v. Coleman, Anth. N. P. (N. Y.) 205; Kennon v. M'Rea, 7 Port. 175 ; and even though the money has been paid, if under a mis- take it may be recovered back ; Offit v. Vick, Walker (Miss.) 12'J4 IJUKKUblKl': V. noLLMAN. 99. Hut this apjjlies only to a mistake of fact. Every man is pri'sunicd to know the l;i\v, une piutectod ; (ii'shire i'. Taylor, 29 la. 492; Ilughes v. liowen, lo I.l. Mf, ; I{;ii,k r. Asliwoith, 105 Mass. 50:5; but .see contra; Williams /•. iJaiik, 9 IIeisk.441. The autlioiitit's are not a<;ivtMl as to what constitutes a waiver; partial payment certainly does ; for other acts it is necessary to go to the cases. For acts constituting waiver, see Knapp r. Kunals, :57 Wis. 1:55; Sherer r. Hank, :W I'a. St. 1:54; Hihl. r. Peyton, 11 Sm. v\: .Mar. 275; Tnion Hank v. (iovan, 10 Id. ;{:ja ; Staylor v. Hall, 21 Md. is:^; Mo(»re v. Tate, 1 King's Dig. (Tenn.) 200; Minlurn r. Fisher, 7 Cal. 57:i ; Leonard v. Hast- ings, 9 Id. 2:50; Tratte i\ McCall, 1 .M(.. :55 ; Airey r. Pearson, 'M Id. 121 ; Harness r. Savings Ass., 4t'» Id. ;)57 ; Tiiilcr r. Miir- jtliy Furnishing (ioods Co., 24 Mo. Ap. 420; Andrews r. Hoyd, '6 Met. 4:34; Hoyd r. Cleveland, 4 Hi.k. 525; Hank v. Callin, 1:3 Vt. 39; Stahl r. Woltc, f, W.N. C. M'a.) 14:5; Hank r. Conno- way, 4 Himston 200; Cardwell *•. Allan, :5;5 (Jratt. 1«;0; Whit- ridge V. Kider, 22 .Md. 548; Hiker i\ A. »S: W. Sprague Mfg. Co., 14 K. I. 402; DulYy v. O'Conner, 7 Hax. 498. The New York cases incline to construe all acts as waivers wliich they reasonably can ; Rope v. Van Wagner, :3 N. V. State Rep. 150; Spencer r. Harvey, 17 Wend. 480; Sheldon r. Hor- ton, bS Harl). 2:3; Sheldon v. Chapman, :51 N. V. 044 ; Holling V. Sprague, 24 Wk. Dig. 07 ; Russell v. Cronkhite, :52 Harh. 282; Coddington v. Davis, :3 Den. 10. See contra ; Hank v. Knower, Lalor's Sup. to Hill & Denio, 122; Lilly v. Petteway, 73 N. C. 358; Wheeler v. Souther, 4 Cush. 006; Creamer v. Perry, 17 Pick. 332; Freeman v. O'Hrien, 38 Iowa 400; Olendorf v. Swartz, 5 Cal. 480. The cases agree that parol evidence of waiver is sutlicient if made after the time of the indorsement; Power V. Mitchell, 7 Wis. 161 ; Dye v. Scott, 35 Ohio St. 194 ; Barclay v. Weaver, 19 Pa. St. 396 ; Hazard v. White, 26 Ark. 155; Rodney I'. Wilson, 07 Mo. 12:5: Heeler v. Frost, 70 Id. 185; Haskerville v. Whitlield, 41 Miss. 5:35. In Pennsylvania, Ohio, and Arkansas parol waiver at time of indorsement may be shown : in the other States not. See Annville Hank v. Ket- tering, 100 Pa. St. 531. One partner may, without special authority, waive demand and notice of a bill drawn in the regular course of the partner- ship business. Farmers' Bank v. Lonergan, 21 Mo. 40. The BICKERDIKE V. BOLLMAN. 1295 terms of a written waiver, however, cannot be restricted by parol ; Hayes v. Fitch, 47 Inch 21. The question of waiver is said to be for the jury ; Lary v. Young, 13 Ark. 401 ; Car- michael v. Bank, 4 How. (Miss.) 567 ; for the court, Wilson v. Huston, 13 Mo. 146. Notice is not waived by an offer of pay- ment in depreciated bank bills without explanation ; it is merely an offer of compromise ; Newberry v. Trowbridge, 13 Mich. 263. Before maturity the indorser can waive onlj demand and notice ; after maturity he can waive proof of demand and notice ; Hoadley V. Bliss, 9 Ga. 303 ; Farmers' Bank v. Wapes, 4 Harr. (Del.) 429; Bryant v. Wilcox, 49 Cal. 47. Waiver does not extend beyond the person. To charge an indorser a demand must be made at maturity, although the maker has told the holder that he will not be able to pay it ; Applegarth v. Abbott, 64 Cal. 459. " Protest tvaived " dispenses with all legal steps after demand to charge drawer or indorser ; Porter v. Kemball, 53 Barb. 467 ; • Coddington v. Davis, 1 N. Y. 186: Shaw v. McNeill, 95 N. C. 535 ; Fisher v. Price, 37 Ala. 407 ; Mcllvaine v. Bradley, 1 Dis- ney (Ohio) 194; Fitch v. Citizens' Bank, 97 Ind. 211; Contin. Life Ins. Co. v. Barber, 50 Conn. 567. To waive demand there must be a waiver of demand ; nothing less will do it. This of course also waives all subsequent steps ; Jaccard v. Anderson, 37 Mo. 91 : Sprague v. Fletcher, 8 Oreg. 367 ; Dye v. Scott, 35 Ohio St. 194. A telegram sent by the indorser of a note to the collecting bank, requesting it to pay the note and mve pi-otest, and draw on him, is a waiver of both demand and notice ; Seldner v. Mount Jackson Bank, 66 Md. 488. See, also. Corner v. Pratt, 138 Mass. 446. If an indorser guarantees payment or acknowledges receipt of notice of protest, this relieves the holder from making de- mand or giving notice ; City Savings Bank v. Hopson, 53 Conn. 453. Notice to assignee in bankruptcy of indorser is not suffi- cient ; it must be personal ; House v. Vinton Bank, 43 Ohio St. 346. See, also, Donnell v. Lewis County Savings Bank, 80 Mo. 165. Notice to the payee's assignee for the benefit of creditors may be sufficient to charge the indorser ; Callahan v. Kentucky Bank, 82 Ky. 231. Although protest is not necessary on an inland bill, yet its waiver in such case is construed to signify as much as when appUed to foreign bills ; Shaw v. McNeill, 95 N. C. 535. See. 12\Ht IJICKKUDIKK \. lioLLMAN. also, Johnson v. Piusons, 1 10 .M,i>>. IT^i. Tlie waiver may Ix? in the bill or note itself, thfii notice need not Ik- pioved : liiyant r. Tayh)!-, lit Minn. :V.m;: liooker r. Morris, CI Ind. -Jst;; Xeal V.Wood, 23 Id. ')-2^[ Lowry v. Steel, liT Id. IDS; Smith i<. Loekiidge, H Hush 4-)l. A waiver of notice of [)rotest in a note payable to order, by all tiie parties to the note, binds the payee who indorses the note to make it negotiable; Woodward V. Lowry, 74 fia. 14H. The Tenne.ssee aet of Feb. 24, 1879, permitting' a delay in protest and notice where an epitlemie is j)revaleiit, does not preclude an immediate notice; Ilanauer t'. Anderson, Iti Lea (Tenn.) -U^. As to what constitutes «lue dili<;em'e, see America Bank v. Shaw, 142 Mass. 21*0. If the notice is directed to the indorser, giving the name of town ;ind stat»', it is sntlicient when the houses on the street are not numbered and there is no carrier's delivery; Morse i*. Chand)erliu, 144 .Ma.ss. 40G. Notice to part- ners as indorsers is sulhcient wbcn left at the place of business with one in charge, or at the residence of either partner; St. Louis Bank v. Altheimer, 1>1 Mo. IIM). Notice nmst be direited to the i)roper jjost-othce of the indorser to i)ind him; Northwest- ern Coal Co. /'. r>o\\Mian, •>;» Iowa 1*)0. See, also, Phelps v. Stocking, 21 Neb. 44:}. Infancy of the maker of a note does not excuse the want of a demand on him by the holder in order to charge the indorser. Such a note is voidable <»nly, not void, and infancy is solely a personal privilege ; Wyman v. Adams, 12 Cush. 210. Although the law allows no exception to the rule of notice save in case of fraud, it is not so strict in defining notice as we might expect. Due diligence on the part of the holder to give notice to drawer or indorsers is all that is required, and if for any reason he is unavoidably prevented from giving the notice at the proper time but does give it as soon as possible, or if for any reason the notice is not received, still he will be protected ; Staylor v. P,all, 24 :\Id. 183; Robinson v. Hamilton, 4 Stew. & Port. 91 ; Foard v. Johnson, 2 Ala. oOo ; Roberts v. Mason, 1 Id. 373 ; Nevill v. Hancock, 15 Ark. 511 ; Winston v. Richardson, 27 Id. 34. Various circumstances may render it impossible to make demand at the proper time or to give immediate notice, e.i/., accident, interruption of communication, or sickness of the BICKEKDIKE V. BOLLMAN. 1297 holder, if it be both sudden and so severe as to prevent him from making demand or giving notice or having it done by some one else ; Wilson v. Senier, 14 Wis. 380 ; Morgan v. Bank, 4 Bush 82. As soon as the impediment is removed the demand must be made and the notice given. If notice can be given, although demand is impossible, it must be given ; Lane v. Bank, 9 Heisk. 419. For cases showing what constitutes diligence, see Betts v. Cox, 2 City Ct. (N. Y.) 31 ; N. Y. Belting & Packing Co. v. Ela, 61 N. H. 352 ; United States Bank v. Burton, 58 Vt. 426 ; McClelland v. Bishop, 42 Ohio St. 113 ; Edmonston v. Gilbert, 3 Mackey (D. C.) 361 ; Morton v. Cammack, 4 MacArthur (D. C), 22; Commerce Bk. v. Chambers, 14 Mo. App. 152; Pearce v. Langfit, 101 Pa. St. 507. Notice mailed two days after dishonor is usually too late ; Sanderson v. Sanderson, 20 Fla. 292. The cases differ as to what is a sufficient allegation in the pleadings to permit proof of " circumstances " as " notice ; " Hall V. Davis, 41 Ga. 614 ; Kennon v. M'Rea, 7 Port. (Ala.) 175 ; Faulkner v. Faulkner, 73 Mo. 327 ; Martin v. Ewing, 2 Humph. 559 ; Norton v. Lewis, 2 Conn. 478 ; Moore v. Ayres, 5 S. & M. 310. But if partnership of drawer and drawee be the " circumstance," it must be alleged ; Harwood v. Jarvis, 5 Sneed 375. In Texas and Iowa a stricter rule applies, and a specific allegation is necessary ; Cole v. Wintercost, 12 Tex. 118 ; Lumbert v. Palmer, 29 la. 104. Indemnity. — When a drawee assigns his property to or in- demnifies an indorser, the indorser undertaking to provide for the bill, he is not entitled to notice as he has assumed a primary liability. The leading case on this point is Bond v. Farnham, 5 Mass. 170. The indorser received all the property of the maker of the notes for the purpose of taking care of the notes. He assumed a primary liability. See, also. Barton v. Baker, 1 S. & R. 334. It all turns on whether the circumstances are such as to imply that the indorser did assume a primary lia- bility. If he receive all the property of the one originally pri- marily liable, or if he receive enough to pay the bill, the law will assume that he agreed to be primarily liable. If he gets all the maker has, he cannot then be injured by lack of notice ; he could not do anything to protect himself further ; but if he does not get all and the indemnity is only partial and there is no express l:i'J8 niCKKKDIKK \. i;< 'I.I.MAN. promise' to tiikf ciin; of tlio hill, the l;i\v will lu'situte to iniplv 8ULh a promise; Diiihiim v. I*ii«e, ') Vi-ri,'. '500; nniiisou v. Nui)ic'r, 1 Id. 1:>1»; Lflliiij;\vi'll r. Whiti-, 1 .1. .1ms. ("as. ".»'.» ; Mraul V. Small, 2 (fieeiileaf 207; Hank v. ( JrisuuM, 7 Wfinl. !•».'); Co(l(liiiL,ftoii r. Davis, l\ Den. 1<>, -•». Whinr llu; indoistT ht-ld j^oods for uhiiih the note wsis given as security for his indoi-se- ment, this was held not to dispense with notice to him ; Holland v, 'rurncr, 10 Conn. J^OS. Theri' heinj,' no a<;reement to pay. IJut if fully indemnitied it is held that no notice is necessary ; Develiiif,' r. Ferris, IS Ohio 17<); IJeard r. Westerman, .'52 Ohio St. 2'.i. ( olhitcral security is not sjilVuifnt ; In- must he al)- solutely indcmniticil ; Kramer r. Sandford, 4 \V. A: S. :>2>f ; Walters r. Munroe, 17 Md. l')l, says, if ahsolutely iudemnilied bcj'orf note falls due, no need of notii-e ; hut if not j^iveii uiitd (i/frr he has heen disc hari,n'd for want of notice, an iudeuuiity against i/fntrul liahilities is not suHicient ; Carlisle r. Hill, 1 ;{ T. K. .'.l.J A false afHrmntioiu made htf the defewlant with intent to defraud the plaint iff\ wherel'i/ the plaintiff receivex damat/e, in the c. It is ad- mitted, that the action is new in point of precedent : hut it is insisted that the law recognises principles on which it may l)e supported. The priiu'iple on which it is contended to lie is, that wherever deceit or falsehood is jjractised to the detriment of another, the law will give redress. This [troposition I con- trovert ; and shall endeavour to show, that in every case where deceit or falsehood is practised to the detriment of another, tlie law will not give redress ; and I say that hy the law, as it now stands, no action lies against any person standing in the pre- dicament of this defendant for the false allirmation stated in the declaration. If the action can l)e sujtported, it must he upon the ground, that there exists in this case, what the law deems damnum cum injurid. If it does, I admit that the action lies ; and I admit that, upon the verdict found, the plaintiffs appear to have been damnified. But whether there has been injuria^ a wrong, a tort for wliich an action lies, is matter of law. The tort complained of is the false affirmation made with intent to deceive ; and it is said to be an action upon the case analogous to the old writ of deceit. When this was first argued at the bar, on the motion for a new trial, I confess I thought it reason- able that the action should lie : but on looking into the old * PASLEY V. FREEMAN". 1303 books for cases in which the old action of deceit has been main- tained upon the false affirmation of the defendant, I have changed my oj^inion. The cases on this head are brought to- gether in Bro. tit. Deceit^ pi. 29, and in Fitz. Abr. I have like- wise looked into Danvers, Kitchins, and Comyns, and I have not met with any case of an action upon a false affirmation, except against a party to a contract^ and where there is a prom- ise., either express or implied, that the fact is true which is misrepresented : and no other case has been cited at the bar. Then if no such case has ever existed, it furnishes a strong ob- jection against the action, which is brought for the first time, for a supposed injury which has been daily committed for centuries past ; for I believe there has been no time when men have not been constantly damnified by the fraudulent misrepre- sentations of others : and if such an action would have lain, there certainly has been and will be, a plentiful source of litiga- tion of which the public are not hitherto aware. A vaiiety of cases may be put : — Suppose a man recommends an estate to another, as knowing it to be of greater value than it is ; when the purchaser has bought it, he discovers the defect, and sells the estate for less than he gave ; wh}- may not an action be brought for the loss, upon any principle that will supjDort this action ? And yet such an action has never been attempted. Or, suppose a person present at the sale of a horse asserts that he was his horse, and that he knows him to be sound and sure- footed, when in fact the horse is neither the one nor the other ; according to the principle contended for by the plaintijffs, an action lies against the person present as well as the seller ; and the purchaser has two securities. And even in this veiy case, if the action lies, the plaintiffs will stand in a peculiarly for- tunate predicament, for they Avill then have the responsibility both of Falch and the defendant. And they will be in a better situation than they would have been, if, in the conversation that passed between them and the defendant, instead of asserting that Falch might safely be trusted, the defendant had said, " If he do not pay for the goods, I will ; " for then undoubtedly an action would not have lain against the defendant. Other and stronger cases may be put of actions that must necessarily spring out of any principle upon which this can be supported, and 3'et which were never thought of till the present action was brought. Upon what principle is this act said to be an loU4 l'A.si,i.\ \. I r.KK.MAN. injury? The phiintiffs say, on the ^i»)iiii0/. to be sold, upon wliicli ,]. I), i^ave 150/., and afterwanls could not get more than lOO/. for it, and then broUL,dit his action: and it was allcired that this matter did not prove any fraud, for it was only a naked assertion that the term was worth so much, and it was the plaintiff's folly to give credit to sueh assertion. But if the defendant had warranted the term to be of sueh value to Ikj sold, and upon that the plaintiff had bought it, it would have been otherwise ; for the warranty given by the defendant is a matter to induce confidence and trust in the plaintiff. This ease, and the passage in 1 Ko. Abr. 101, are recognised in 1 Sid. 146. How, then, are the cases? None exist in which such an action as the present has been brought; none, in which any principle applicable to the present case has been laid down to prove that it will lie — not even a dictum. But from the cases cited, some principles may be extracted to show that it cannot be sustained ; 1st, That what is fraud, wdiich will support an (a) See Margetson v. Wright, 7 Bing. G05; 8 Bing. 457; 3 Bl. Comra. 166; Dyer v. Hargrove, 10 Ves. 507. PASLEY V. FREEMAN. 1305 action, is matter of law ; 2clly, That in every case of a fraudu- lent misrepresentation attended with damage, an action will not lie, even between contracting/ parties ; 3dly, That if the assertion be a nude assertion, it is that sort of misrepresentation, the truth of which does not lie merely in the knowledge of the de- fendant, but may be inquired into, and the plaintiff is bound so to do ; and he cannot recover a damage which he has suffered by his laches. Then let us consider how far the facts of the case come within the last of these principles. The misrepresen- tation stated in the declaration is respecting the credit of Falch; the defendant asserted that the plaintiffs might safely give him credit : but credit to Avhich a man is entitled is matter of judg- ment and opinion, on which different men might form different opinions, and upon which the plaintiffs might form their own : to mislead which no fact to prove the good credit of Falch is falsely asserted. It seems to me therefore, that any assertion relative to credit, especially where the party making it has no interest, nor is in any collusion with the person respecting whose credit the assertion is made, is like the case in Yelverton respecting the value of the term. But at any rate it is not an assertion of a fact peculiarly in the knowledge of the defendant. Whether Falch deserved credit depended on the opinion of many ; for credit exists on the good opinion of many. Respect- ing this, the plaintiffs might have inquired of others, who knew as much as the defendant ; it was their fault that they did not, and they have suffered damage by their own laches. It was owing to their own gross negligence that they gave credence to the assertion of the defendant, without taking pains to satisfy themselves that that assertion was founded in fact, as in the case of Bayley v. Merrel. I am therefore of opinion, that this action is as novel in principle as it is in precedent, that it is against the principles to be collected from analogous cases, and consequently that it cannot be maintained. Buller^ J. The foundation of this action is fraud and deceit in the defendant and damage to the plaintiffs. And the ques- tion is. Whether an action thus founded can be sustained in a court of law. Fraud without damage, or damage tvitJiout fraud , gives no cause of action ; hut where these ttvo concur, an action lies. Per Croke, J., 3 Bulst. 95. But it is contended, that this was a bare naked lie, that, as no collusion with Falch is charged, it does not amount to a fraud : and, if there were any fraud, VMn) I'ASLKY V. I i:i:i:.MAN. the niitiui' of it is iidl >liUi(i and it w.i.s .su|HK)st»l by llic rouii- SL'l who ori<^iitiilly iiuide tlu; inotioii, tluit no iirtioii i-oulil Ih) iiiiiintaiiied, unless the dufendant, who made tills false tuisertioii, iiad an Interest in so dolnt> tiiat an aetlon cannot Ix) supported for telling a hare naked lie; hut that I «letine to l»o, sayini,' a ihin^ whiih is false, knowiui; or not knowing' it to Ih3 so, and without any desi^^n t<» injiin', clu-al, or dei-eive, anotlier person. J'Jiuri/ ilerfit coniftrfhi-miH d llf ; Intf lt'd with smnr dcaliiii,', anil the injury whieh it is calculated to occasion, and does occasion, to an«>ther person. Deceit is a very extensive head in tlie law; and it will he proper to take a short view of some of tiie eiises which have ex- istiMl on the suhject, to see how far the courts have j;»>ne, and what are the principles upon whieh they have ileci«led. I lay out of the (pU'stion the case in - Cro. 19t», und all other eases wiiirh nlatc to freehold interests in lands ; for they go on the speiial reason that the seller cannot have them without title, and tlu' huyer is at his peril to see it. Hut the cases citc(l on the part of the defendant deserving notice are, ^'elv. "Jo ; (arth. IM); Salk. lilO. 'Ihe iirst of these has In-en fully stated hy n>y brother G roue : hut it is to he observed that the book does not affect to give the reasons on which the court delivered their judgnient ; but it is a ease ipioted by counsel at the bar, w ho mentions what was alleged by counsel in the other ease. If the court went on a distinction Intween the words warntnty and (iffirmatlon, the case is not law : for it was rightly held by JJo/f, ('. ,1., in the subse(pU'nt lases, and has been uniforndy ailopted ever sin»t', that an allirination at the lime of a sale is a warranty, provided it a[ipear on evidence to have been so in- tended (. out of 1 <•<»()/., it makes no difference to I^ wliether A., or any other })crson, pockets that 1000/. He has lost his money, and if he can lix fraud u})on A., reason seems to say that he has a right to seek satisfaction against him. Authori- ties are not wanting on this point. 1 Roll. Abr. i'l, pi. 7. If the vendor attirm that the gooils are the goods of a st range i-, his friend, and that he had authority for him to sell them, and upon that B. buy them, when in truth they are the goods of another, yet if he sell them fraudulently and falsely on this pretence of authoiity, though he do not warrant them, and though it be not averred that he sold them knowing them to be the goods of a stranger, yet B. shall have an action for tliis deceit. It is not clear from this case, whether the fraud con- sisted in having no authority from his friend, or in knowing that the goods belonged to another jjcrson : what is said at the end of the case only proves that falsely and fraudulently are equivalent to knoivingly. If the first were the fact in the case — namely, that he had no authority — the case does not apply to this point ; but if he had no authority from his friend, whatever the goods were sold for his friend was entitled to, and he had no interest in them. But, however that might be, the next case admits of no doubt. For in 1 Roll. PASLEY V. FREEMAN. 1309 Abr. 100, pi. 1, it was held, that if a man acknowledge a fine in my name, or acknowledge a judgment in an action in my name, of my land, this shall bind me for ever ; and therefore I may have a writ of deceit against him who acknowledged it; so if a man acknowledge a recognizance, statute-merchant, or staple. There is no foundation for supposing that in that case the person acknowledging the fine or judgment was the same person to whom it was so acknowledged. If that had been necessary it would have been so stated ; but if it were not so, he who acknowledged the fine had no interest in it. Again, in 1 Roll. Abr. 95, 1. 25, it is said, if my servant lease my land to another for years, reserving a rent to me, and to persuade the lessee to accept it, he promise that he shall enjoy the land without incumbrances; if the land be incumbered, &c., the lessee may have an action on the case against my servant, be- cause he made an express warranty. Here then is a case in which the party had no interest whatever. The same case is reported in Cro. Jac. 425, but no notice is taken of this point ; probably because the reporter thought it immaterial whether the warranty be by the master or servant. And if the war- ranty be made at the time of the sale or before the sale, and the sale is upon the faith of the warranty, I can see no dis- tinction between the cases. The gist of the action is fraud and deceit, and if that fraud and deceit can be fixed by evi- dence on one who had no interest in his iniquity, it proves his malice to be the greater. But it was objected to this dec- laration, that if there were any fraud, the nature of it is not stated ; to this the declaration itself is so direct an answer that the case admits of no other. The fraud is, that the defendant procured the plaintiffs to sell goods on credit to one whom they would not otherwise have trusted, by asserting that which he knew to be false. Here then is the fraud, and tlie means by which it was committed ; and it was done with a view to enrich Falch by impoverishing the plaintiffs, or, in other« words, by cheating the plaintiffs out of their goods. The cases which I have stated, and Sid. 14G, and 1 Keb. 522, prove that the declaration states more than is necessary ; for fraudulenter without sciens, or scieiis without fraudulenter^ Avould be suffi- cient to support the action. But, as Mr. J. Twisden said in that case, the fraud must be proved. The assertion alone will not maintain the action ; but the plaintiff must go on to prove ]:510 I'A.--L1.\ \. 1 Kl.hMAN. tliiit it was false, and that the defewlant knew it to he go: by what means that [Hoof is to Ijo niatle ont in t'vi\\t' ulm has. I do not recollect that any case was cited which |>iovfs sncli a position; but if there were any such to he found, I should not ht-sitate to say that it could not be law; for I have so preat a veneration for thi' law as to suj)i)Ose that nothing can b«' law which is not founded in common sense or common honesty. For the <;ist of tlu! action is the injuri/ tfonc to the plaintiff, and not whether the defendant meant to be a j^ainer by it: what is it to the plaintilT whether the defendant was or was not to .<,Min by it? the injury to him is the same. Ami it should seem that it ou^lit more emphatically to lie against him, as the malice is more diabolical, if he had not the temptation of i^ain. For the same reason, it cannot be necessary that the defendant should collude with one who has an interest. Hut if collusion were necessary, there seems all the reason in the world to suppose both interest and collusion froni the nature of the act: for it is to be hoped that there is not to l)e found a dispositi«)n so diabol- ical as to prompt an\ man to injure another without benetitiui^ hims»'lf. liut it is said, that if this ])e determined to l)e law, any man may have an action broui,dit aijainst him for telling a lie by the crediting of which another happens eventually to be injured. But this constMjUence by no means follows: foi- in order to make it actionable, it must be accompanied with the circumstances averred in this count, namely, that the defend- ant, "intending to deceive and defraud the plaintilTs, did deceitfidly encourage and persuade them to do the act, and for that purpose made the false aftirmati(»n, in consecjuence of whii h they did the act." Any lie accompanied with those circumstances, I should clearly hold to be the subject of an action ; but not a mere lie thrown out at random without any intention of hurting anybody, but which some person was foolish enough to act upt)n, for the quo animo is a great part of the gist of the action. Another argument which has been made use of is, that this is a ne\v case, and that there is no precedent of such an action. Where cases are new in their principle, there I admit that it is necessary to have recourse to legislative interposition in order to remedy the grievance ; but where the case is only new in the instance, and the only question is upon the application of a principle recognized in the law to such new case, it will be just as competent to courts of justice to apply the principle to any case which may arise PASLEY V. FREEMAN. 1313 two centuries hence as it was two centuries ago ; if it were not, we ought to blot out of our law-books one-fourth part of the cases that are to be found in them. The same objection might, in my opinion, have been made with much greater reason in the case of Coggs v. Barnard ; for there the defendant, so far from meaning an injury, meant a kindness, though he was not so careful as he should have been in the execution of what he undertook. And, indeed, the principle of the case does not, in my opinion, seem so clear as that of the case now before us, and yet that case has always been received as law. Indeed, one great reason, perhaps, why this action has never occurred, may be that it is not likely that such a species of fraud should be practised unless the party is in some way interested. There- fore, I think the rule for arresting the judgment ought to be discharged. Lord Kenyan, C. J. I am not desirous of entering very fully into the discussion of this subject, as the argument comes to me quite exhausted by what has been said b}^ my brothers. But still I will say a few words as to the grounds upon which my opinion is formed. All laws stand on the best and broadest basis which go to enforce moral and social duties, though in- deed it is not every moral and social duty the neglect of which is the ground of an action. For there are some, which are called in the. civil law duties of imperfect obligation, for the enforcing of which no action lies. There are many cases where the pure effusion of a good mind may induce the performance of particular duties, which yet cannot be enforced by municipal laws. But there are certain duties, the non-performance of which the jurisprudence of this country has made the subject of a civil action. And I find it laid down by the Lord C. B. Comgns (a), that " an action upon the case for a deceit lies when a man does any deceit to the damage of another." He has not, indeed, cited any authority for this opinion ; but his opinion alone is of great authority ; since he was considered by his contemporaries as the most able lawyer in Westminster Hall. Let us, however, consider whether that proposition is not sup- ported by the invariable principle in all the cases on this subject. In 3 Bulstr. 95, it was held by Croke, J., that " fraud without damage, or damage without fraud, gives no cause of action : but where these two do occur, there an action lieth." It is true, as (a) Com. Dig. Tit. " Action upon the case for a deceit." A. 1. l:;i} I'ASLKV V. FKKKMAN. luis heen already oKserved, that the judfjes were of opinion in that case that the aetion did not lie rotect him in his ne«rligence (a). And in that case, as reported in Cro. Jac. liSH, the neglij,'enee of the plaintitT himself was the cause for which the court held that the action was not niaintainahle. Then how tion seems to have been — Does loiral without ujoral fraud [or perhaps more accurately. May a misrepresentation be fraudideiit in law so as tf)J invttlidatf tt ctmlnirl, or/i/r/iKsA i/ntnit'l of nrtinti [without moral fraud?]. In the ca.sc of Fulhr v. W'ilsnn, ;J C^. 11. .'iH, which was an action on the case for a false representation, tlie facts were assumed to raise the <|uestion before referre«l to, anil the Court of l^uoon's Hench, In a considered judiiuiout, diirorod from the view taken by the nuijority of the Court i>f K.\- olu'ipior, in the rase of Conifoot v. Foirir, adoptini; the opinion of the Chief Haron \i|)on that (|Uostion, •• Lord .Vbln^or maintainotl." says Lord Deiunan, C. .1.. dolivcrini; tho jud;;mont of the court, •• and surely not without reason, that there was some moral fraud in the conduet of both, the principal con- cealluf; a fact which made his house utterly tmtlt for tho purpose for which he was lettluf? It; the agent stating a falsehood, which, of course he could not know to be tnie, even If he believed It; we do not, however, take this ground: we ado|)t the other proposition of the Chief Haron, namely, tfi)it tchfthrr thin- irns innnil J'riiiiil or nut. if the purchaser was aetiudly deoelved In his bargain, the law will relieve him from it. Wo think the principal and his agent are for this purpose completely identitled; ami that thr ijiifstinn in, not what tras jtassimi in thr mind i>f rithi'r, hut irhi-thir thf purchaspr iras in fart decrivfil loj them, nr either of thim." The facts of the case wore after- wards by consent and leave of the court, stated in a special verdict, and the judgment was reversed in error, but on a dlttorent point; .see the report 3 Q. B. fi8 and 1009. Meanwhile, the Court of Exchoquor, in Mums v. I/ii/irurth, in .M. & \V. 147 (Lord .Vbingor still dissentient), and in 'J'ai/lor v. Ashton, 11 .M. & W. 401, reiterated tiioir previous opinion as delivered in Comfoot v. Foirke, whilst the Court of (.Queen's Bench, soon afterwards, in tho case of Ktans v. Collins, 5 Q. B. 804, adhered to their former judgment upon this question. That wa.s an action on tho case brought by the plaintitt', late Shoritt'of London, against the defendants, attorneys for one Tower, who had sued John Wright for a debt, and obtained execution against him, for falsely representing another John Wright (who was then in custody of the plaintifl"), to be the defendant, in that action, though they kneio the contrary. By which false representation the plaintitt' was induced to detain the wrong person, Avho thereupon brought an action against him, and therein recovered (by way of compromise) 10/., in respect of the unlawful imprisonment. To this declaration. Not Guilty was pleaded; and also, 3rdly. That tho defendants had reasonable and prob- able cause to believe, and did believe the person whom they pointed out, to be the real defendant. Upon this third plea the defendants had a verdict, but the court held the allegation in the declaration of the knoioledge of the defendants, as well as the issue upon the third plea, to he immaterial, and gave judgment for the plaintiff upon that issue, now obstante veredicto. PASLEY V. FREEMAN. 1317 Upon a writ of error, however, the Exchequer Chamber (5 Q. B. 820) held the allegation of the scienter in the declaration and the issue on the third plea, to be material; and, distinguishing the case from that of Humphreys v. Pratt, 5 Bligli, N. S. 154 (upon the authority of which the judgment in the court below had partly proceeded), as being the case of a direction to a mandatory or agent and not a mere representation, reversed the decision of the Court of Queen's Bench. See also Shrewsbury v. Blount, 2 M. & G. 475. and Rau-lings v. Bell, 1 C B. 951, where the Court of Common Pleas held that injury caused bj' a statement false in fact, but not so to the knoAvledge of the party making it, or made with intent to deceive, .would not support an action. In the case of Ormrocl v. Hitth, 14 M. & W. 651, the Exchequer Chamber again affirmed the same principle ; and as the judges of the Queen's Bench were, it is apprehended, parties to this latter judgment, the question may now, perhaps, be considered as settled, especiallj' as in the more recent case of Barley v. Walford, 15 L. J. Q. B. 369; 9 Q. B. 197, the Court of Queen's Bench acquiesce distinctly in the propriety of the doctrine, that moral fraud in a representation is essential, in order there1)y to invalidate a contract, or furnish ground of action ; so that the result of the recent elabo- rate discussion of this subject would seem to leave the law very much as it was settled by the principal case, and that of Haycraft v. Creasy, 2 East, 92, [accord. Childers v. Wooler, 2 E. & E. 287, a case very similar in its facts to Evans v. Collins. The supposed distinction between legal and moral fraud has been the source of some confusion. There is no such thing as fraud into which some degree of moral obliquity does not enter. Accordingly (subject to what will appear hereafter as to the responsibility of an innocent principal for the fraud of his agent), an action of deceit will not lie for a perfectly innocent misrepresentation, for such a representation is not fraudulent. On the other hand, a verj^ slight degree of moral obliquitj^ may suffice to render a repre- sentation fraudulent in contemplation of law.] It is not necessary that it should be false to the knowledge of the party making it; if [it be] untrue in fact, and not believed to be true by the party making it, [or made recklessly without any knowledge on the subject] and for [the purpose of inducing an- other person to act upon it, an action may be maintained thereon by the per- son who has been induced to act upon it.] See the judgment in Taylor v. Ashton, 11 M. & W. 415 (where at the 7th line from the bottom of the page 415, the word " ti-ue " is printed for " untrue"). Jarrett v. Kennedy, 6 C. B. 319 ; [Evans v. Edmunds, 13 C. B. 777, per Maule, J. ; Reese Biver Silver Min- ing Co. V. Smith, L. R. 4 H. L. 79, per Lord Cairns; Hart v. Swaine, 7 Ch. D. 42; Eaglesfield v. Lord Londonderry, 4 Ch. D. 693, and see note to Chandelor V. Lopus, ante, vol. i.] The purpose is essential. Thorn v. Bigland, 8 Exch. 725 ; [Behn v. Kemble, 7 C. B. N. S. 260. For some pointed observations on the impropriety of the expression legal fraud, see per Bramwell, L. J., Weir v. Bell, 3 Ex. D. 238. See also Joliffe v. Baker, 11 Q. B. D. 255; 52 L. J. Q. B. 609. Still, as those facts which the law regards as sufficient to support an action for deceit need not necessarily amount to what in popular language would be called fraud, the expression is a convenient one whereby to indicate the legal as distinguished from the popular notion of fraud. As to what amounts to a misrepresentation, see Ward v. Hohbs, 3 Q. B. D. 150; 47 L. J. Q. B. 90, affirmed 4 App. Cas. 13; 48 L. J. Q. B. 281, where it was held that the fact of exposing pigs for sale in the open market by a per- 1^18 I'ASLKV V. t'KKK.MAN. son ^vho knew that tlu-y woro allV'ctod with a contajfloun disease was n«»t xuf- iK-ic'iit proof of a fraiuluk'Ht rfpn-soiitatlori. Tlie iloctrine tliat moral fraud ii> a n pri'sontatioM Is iifci-sHury to invalidate a fontract or furnish ^jjround of anion rannol at all In- i-xlrndid to tlioMe cases in which the representation expressly or impliedly fonns part of the contract lietween the parties, a.s cases of insurance, (»r the llku. Se avi-rments of fraud in cases where It was not essential to the cause of action, see tlie jutl^menl of Haron I'arke in Amlirsnn v. Thornton, H Kxch. 4L'.S. and the juditnient in Strinffn v. Lord ('h>lms/.>ril, ', 11. & N. '.•20. 1)21.] It will l)e observed that the al)ove discussion tloes not Involve the whole of the doctrim; proniuli;ated tiy the nuijority of the court in ('nrnfunl v. Fntrke : so far as tliat iloctrine draws a distinction between the knowie»l;;e of the principal and that of the a^ent, and re(|uires that the fraud and the statement should be those uf the same Inillvidual, It Is still doubted, and may !;ive rise to future discussion. See Wilde v. (•ihnoH, 1 H.of L. Cases, COo; (rraiU v. A'or- ir,i,j, 10 V. ». i>r>r>; I/otnird V. Tiirker, 1 B. & A. 712. [See also Tht- yntionnl Kxrhiinijf Co. <>/ (ihixijinr v. Itrnr, 2 Macns were nuule l)y the i»eers who took part in that decision wliicli throw mucli liuht upon the principle of (',irii/ion misrepresentation, and the fact was. that a man. knowing that there is so serious a nuisance aH'ecting a house as to tliminisli its value in sndi a way that no man of res|)ectability could live in it, ami he takes care himself not to make the contract, but leaves it to an agent whom lie has no reason to suppose is aware of the fact; and if in the course of tlie treaty for the contract, the agent being asked if such a fact existed, states posi- tively no, and the contract is executed hi silence upon the point, because the purchaser or the tenant's vigilance has been lulled to sleep upon it, and he believes the representation made to him by the agent, I say, in such a case as that. I should be very much shocked at the law of England if I could bring myself to believe that it would not reach the case of a person so availing himself of a misrepresentation of his own agent, who might be ignorant of the fact, although tlie principal himself knew it. and employed the agent in order to avoid making a direct representation to the contrarj' .... I should feel no hesitation, if I had myself to decide that case, in saying, that althongh the representation was not fraudulent — the agent not knowing that it was false — yet that, as it in fact was false, and false to the knowl- edge of the principal, it ought to Aitiate the contract." PASLEY V. FIIEEMAN. 1319 In Cornfoot v. Fowke the question discussed -vras, as we bave seen, tlie effect of an innocent but untrue statement by an agent, when coupled witli a knowledge on the part of the principal, which would clearly have been suffi- cient to support an action of deceit against him, had he himself made the statement couiplainod of. In Udell v. Atherton, 7 H. & N. 172, the question arose as to the lial)ility of innocent principals to an action of deceit for a false and fraudulent representation made by their agent as to the quality of an article sold by him, the principals having adopted the contract and received part of the price. The facts were shortly these. The defendants employed an agent to sell timber on commission. The agent sold to the plaintiff a log of timber, and fraudulently represented it to be sound, although he knew it to be defective. The buyer gave to the principals two bills of excliange for the price of the timber, one of which was paid ; and afterwards the defect in the log was discovered. The buyer then complained to the principals, who stated, as was true, that they had neither authorised nor wished their agent to sell wood as sound which was defective ; and they refused to make any allowance, and Insisted on the payment of the whole price. Under these circumstances the judges of the Court of Exchequer dif- fered as to whether the principals were liable in an action of deceit. The true rule was, however, it is apprehended, laid down by Sir James (then Baron) Wilde, who held that the action would lie on the ground that the principals, having adopted the sale made by the agent and received the price, wei'e responsible for the fraud committed by the agent in making the con- tract, by which fraud alone the contract was obtained; and that consequently the false affirmation by the agent might be treated as a false affirmation made by the principals themselves. The authorities in support of this view, which are numerous, but not very direct, are collected in Baron \Yilde's judgment, which will repay a perusal. In Barwick v. The English Joint Stock Bank, L. R. 2 Ex. 259, Willes, J., in delivering the judgment of the Exchequer Chamber, distinguished the opinions of Martin and Bramwell, BB., in Udell v. Athertnn, on the ground that in that case the agent was not the general agent of the defendants, and that his act had been adopted under peculiar circumstances, and laid it down that for false representations made by an agent in the ordinary course of his employment for his master's benefit, the principal is responsible, in the same manner as he is for any other wrong committed by a servant. In the same case the same learned judge is reported to have said, " I should be sorry to have it supposed that Cornfoot v. Fowke turned upon anything but a point of pleading." See also Sioift v. WinterbotUam, Ij.'R. 8 Q. B. 244; Id. v. Jews- bxiry, L. R. 9 Q. B. 308, 43 L. J. Q. B. 56; Newlands v. National Employers Accident Association, 54 L. J. Q. B. 428; and Mackay v. The Commercial Bank of New Brunsvnck, L. R. 5 P. C. 394, where Barvnck v. 21ie EnglisJi Joint Stock Bank, was approved and followed, and the dicta of Lords Cranworth and Chelmsford in the case of Western Bank of Scotland v. Addic, L. R. 1 H. L. Sc. 145, were explained and distinguished. And see Blake v. Albion Life Assura7ice Co., 4 C. P. D. 94; 48 L. J. Q. B. 169, and i^er Lord Selborne, Houldsworth v. City of Glasgow Bank, 5 App. Ca. at p. 326 ; and the dicta of Lord Esher, M. R., in Blackburn v. Vigors, 17 Q. B. D. at p. 559. In Weir v. Bell, 3 Ex. D. 238, which was an appeal from the decision of the Ex. D. in Weir v. Barnett, 3 Ex. D. 32, Bramwell, L. J., impugns the ground on which the judgment of the Ex. Cham, was rested in Bancick v. English Joint Stock Bank, pointing out that fraud is essentially a wilful act, 1320 PASLEV V. ri:!:i;.MAN. and that, as a general rule, a master is not responsil)!*- for tlie wilful art of liis servant. Ttu- U-arned Lord .lustiee sngjjests that tiic true prinripie npon wlueli a i)erson wlio lias eonnnitlcd no fraud hinisi-lf, may l)e iielil responsilde for tlie fraud of Ids aLCeiit is, that he implifdly eoMtracls tliat his a^^i-nt will not be {juilty of fraud. If, however, tlie prineiple of li'irwirk v. Thf KtniUsh Joint Stni-k Hunk he confined, as it expressly was in that case, to aets done by the agent or servant strictly within the scope of his employment, it seems scarcely open to the reflections ciust upon It. Scope of employment has undoubtedly recelveil. in many cases, an Interpretation wide enough to cm- brace within it acts done without or even in ilirect violation of the master'H order: see lU'tta v. df Viln-, L. K. ;j Ch. 421); Murkitij v. ('iihinurn'iil limik nf Neir lirunsirirk, stipra, at j). 411, of L. U. ; ami if such be the law, it would seem, with deference, no more unreasonable to hold the principal resjiousible on the ordinary rule of nupuniledl snptrior for the frauds of his agent com- mitted within the scope of his authority, than to resort to the llction of a contract which is not made In fact. The rule laid d«)wn in lianrirk v. Enyliah Joint Stork Hunk, has been approved and acted upon In many snbsc«(ucnt cases. See the cases above cited, and Strirr v. Fninris, ;i App. ('as. 106; S/iaiP v. J'nrl /'/lilip, &r., Co., i;j Q. B. D. lo:5, per Mathew, .1. In W'fir v. Bell, It was held by the Court of Appeal, Cotton, L. J., dissenting (alllnning the decision of the court below), that the defendant, a director, was not responsible for false and fraudulent stat«'ments, inserted without his knowl- edge, and from which he personally derivetl no beuellt. in a pros|)ectus. |ire- pared by brokers, inviting subscriptions for debentures of the company. The company had, by resolution, authorised the directors to ral.se money by the issue of debentures, and the directors had thereupon Instructed brokers to place the debentures. The court below and the majority of the Court of Appeal, held that the directors were themselves merely agents of the com- pany in instructing the brokers, and did not stand to the latter In the relation of i)riiu'ii)als, so as to render themselves responsible without actual frautl. Cotton, L. .!., was, however, of opinion that the directors who employed the brokers were personally responsible for their fraudulent misstatements. See also Cartiill v. Bower, 10 Ch. D. 502 ; 47 L. .1. Ch. G4'.t ; Mullens v. J/j7/er, 22 Ch. 1). 1!)4 ; .^2 L. J. Ch. 380. An agent, acting within the scope of his authority, is not personally liable for an innocent misrepresentation, Eaglesjiehl v. Mdniuia of Londonderry, H. L. 2(; W. R. .540.] As to the eftect of fraudulent representations made by members of public companies, in order to induce parties to become subscribers, see Wonlner V. Shairp, 4 C. B. 404; Watson v. The Earl of CharUnnont, 12 Q. B. 850; Ger- hard V. Rates, 2 E. & B. 4G6; [Bayshaw v. Seymour, 18 C. B. 903; Bedfml V. Baf/shaic, 4 H. & N. 538; Scott v. Dixon, 29 Law J., Exch. 62, note; The National Exchange Co. of Glasgow v. Drew, 2 Macqueen, H. of L. Cases, 103; The Xew Brunsicick and Canada Rail. Co. v. Conybeare, 9 H. of L. C 711; Peek V. Gurney, L. R. 6 H. L. 377 ; 43 L. J. Ch. 19 (overruling Bagshaw v. Seymour and Bedford v. Bagshaw, supra), where the cases on this subject are collected; Weir v. Barnett, supra; Smith v. Chadwick, 9 App. Cas. 187; Edgington v. Fitzmaurice, 29 Ch. D. 459.] And as to fraudulent suppression for the same purpose, Jarrett v. Kennedy, 6 C. B. 319; \^Peek v. Gurney, supra; Craig \. Phillips. 3 Ch. D. 722; Eaglesfeldv. ^farfjiuis of Londonderry, 4 Ch. D. C. A. 693; H. L. 26 W. R. 540; Weir v. Barnett, supra; Erlanger v. New Sombrero Phosphate Co., 3 App. Cas. 1218; Arktrright v. Neicbold, 17 PASLEY V. FREEIMAN. 1321 Ch. D. 301 ; 50 L. J. Ch. 372. As to what amounts to a fraudulent suppres- sion under s. 38 of the Companies Act, 1867, see Cover's case, 1 Ch. D. 182; Twycross v. Grant, 2 C. P. D. 469, and cases therein cited; SnUivan v. Mit- calf, 5 C. P. D. 455. A person who has been induced to take shares in a company through the fraud of its agents cannot, while retaining the shares, sue the company of which he is himself a member for damages, his only remedy is rescission; Hoiddsworth v. City of Glnsgoio Bank, 5 App. Cas. 317.] In Pontifex v. Bignohl, 3 M. & G. 63, [it was held that] an action [was well brought] against an insurance company for misrepresentations as to the mode in which their business was conducted, by which the plaintiff had been induced to insure. [" It is well established that in order to enable a person injured by a false representation to sue for damages, it is not necessary that the representation should be made to the plaintiff directly : it is sufficient if the representation is made to a third person to be communicated to the plain- tiff, or to be communicated to a class of persons of whom the plaintiff is one, or even if it is made to the public generally with a view of its being acted on, and the plaintiff as one of the public acts on it, and suffers damage thereby." Swift v. Winterhotham, L. R. 8 Q. B. 253, cited in Bichardson v. Silcester, L. R. 9 Q. B. 34.] As to representations made by creditors to sureties, whereby they are induced to become such, or the extent of their liability is, or might be, increased, see Stone v. Compton, 5 N. C. 142; Railton v. Matthews, Dom. Proc. 10 CI. & Fin. 934 ; Hamilton v. Watsow, Dom. Proc. 12 CI. & Fin. 109. An action on the case is maintainable by the manufacturer of goods against another manufacturer who marks his goods with the known and accustomed mark of the plaintiff, with the intention of making them pass for goods manufactured by him; and this although there is no proof of special damage; Rodgersx. Novnll, 5 C. B. 109; [Farina v. Silverlock, 6 De G. M. & G. 214; 4 Kay & J. 650; and Dixon v. Fawcus, 30 Law J., Q. B. 137; Wotherspnon v. Currie, L. R. 5 H. L. 508; Metzlerv. Wood, 8 Ch. D. 606; 47 L. J. Ch. 625. And see the 25 & 26 Vict. c. 88, " An Act to amend the law relating to the fraudulent marking of merchandise," as to the statutory rem- edies which exist in these cases ; see also 46 & 47 Vict, c; 57.] The expression of opinion by the court in the principal case, that the nov- elty of the action is no objection, the injury being clearly shown to exist, is cited in the note to Ashby v. White, ante, vol. i. In the case of Langridge v. Levy, 2 M. & W. 519 [S. C. in error, 4 M. & W. 337], the Court of Exchequer carried the principle of Fasley v. Freeman somewhat further. It was an action for falsely and fraudulently warranting a gun to have been made by Nock, and to be a good, safe, and secure gun, and selling it as such to the plaintiff's father, for the use of himself and sons ; one of whom (the plaintiff) confiding in the warranty, used the gun, where- upon it burst, and injured him. The action was held to be maintainable. " If," says Parke, B., delivering judgment, " it (the gun) had been delivei-ed by the defendant to the plaintiff for the purpose of being used hy him, with an accompanying representation to him, that he might safely so use it, and that representation had been false to the defendant's knowledge, and the plaintiff had acted on the faith of its being true, and had received damage thereby : then there is no question but that an action would have lain, on the principle of a numerous class of cases, of which the leading one is Fasley V. Freeman ; which principle is, that a mere naked falsehood is not enough '[IV2-2 I'ASLKY V. FUKKMAN. to K'Vf a ri;;ht of ftction ; but timt it Is so If It l)r u fiilsehooil told wltli the Intention that It should bo ac-tril on by the party injured, and that art ujuht prodiK-e dania<;e to him. If, instead of beln^ dtlivcred to thr plaintitt' imine- (Until)/, the instrninent hail been placed in tin- hantis of a third pirson, fur the purpose of hfinij delicered to, and then utted by, thf /iliuntijf', tiie like false rep- resentation \H-h\t: knowin;;ly made to the Intermediate person to be enmmii- nleateil to tlie plaintitl", and tin- plaintitl" had aetetl upon U, there can be no doubt Ijut that the principle woulil ei|ually apply, ami the plaintiff would have hail his remedy for the deceit ; nor can it make any ditlerenee that the third person was intended by the defendant to be deceived; nor iloes there seem to be any substantial distinction if the instrument be tlelivered in order to bf so used by the plaintiH", thoui;h it does not ap|)ear that the defendant Intended the false representation itself to l)e communicated to him. This Is a false representation made l)y the defendant, irith a rieir that the plaintiff should use the instrument in a dawjentus iruy ; and unless the representation had l)een made, the dangerous act would never have been done." This Is a remarkable case; it allbrds an instance In which a party may l)rinK an action for the conseiiuences of a breach of contract, who was not tlie contractee. and could not have sued upon the contract. It luis been approved and act«'d upon In I'ihnnre v. //'".(/, .') Illn<;. N. ('. tt7, and is .said to liave proceeded u|>on the i;round of Ihv knnirltdije niu\ f'raml of the defendant, per .Vldcrson, »., in W'interhottion v. W'ri'jht, 10 M. vt W. IW. In that case A. built a coach for the I'ostnuister-CJeneral, H. horsed It, and Idred ('. as a coachman to drive it. The couch broke down from a tlefect lu the building;, for wlndi, however, it was held that C. could not sue A. The authority of Lamiridije v. I.ery has also been recogidsed in the ca.se of Lomimeid v. Ilidlidaij, i) K.xch. 7t;i ; there the plaintitrs wife had purchased of the defendant a lamj) for the purpose of its \w\\\)i used by herself and her luislmnd : the defendant was not a maiuifacturer of lamps himself, but caused the lamps, of which the lamp in i|uestion was one, to hv put together by other persons for him, from parts purchased of third parties; t!ie lamp was defective, and upon the plaintitrs wife attem|»tinu to use it. exploded and seriously injured her. The action was brou;;ht by the plaintitl' and hi.s wife jointly to recover compensation for the injury. There was no proof at the trial that the defendant kneir of the defects in tlie lamp, and the jury found that he sold the lamp in Rood faitli, w itlumt any fraudulent or deceit- ful representation; it was held that the action was not niaintainalile, there being no fraud or any misfeasance towards the wife independently of the contract. See also Gerhard v. Bates, 2 E. .Sc B. 47G. [In Blakemore v. The Bristol and Kjreter liaihraij Co., 8 E. & B. 103."», a crane had been placed on the premises of the company for the purpose of enabling the owners of goods to unload them ; a consignee of goods having been required by the company to remove them, proceeded to raise the goods with the crane, assisted by his servants and the servants of the company. B., who was the servant neither of the consignee nor of the company, was also asked by the consignee to assist in raising the goods; he did so. and during the operation, the crane, wliich was defective to the knowledge of the company, broke, and B. was killed. It was held that the company was not liable to B.'s administratrix iu respect of the accident, for although the lender of goods for the purpose of user is responsible to the borrower in respect of defects in the chattel, with reference to the use for which he knows that the loan is accepted, and of which he is aware, he is not respon- PASLEY V. FREEMAN. 132S sible to a mere stranger who is iu no way privy to the contract of loan. In this case the court observed that it had always been considered that Levy V. Lanrjridge was a case not to be extended in its application; and that if in that case a friend of the father or sons, by their permission, had used the gun and sustained the accident, no action could have been maintained by him. See, where the consignee himself was injured while assisting tlie servants of the company, Wright v. London and Xortli Western Railway Co., 1 Q. B. D. 252, 45 L. J. Q. B. 570. In George v. Skivington, L. R. 5 Ex. 1, which was decided upon demurrer, the action was by husband and wife ; the declaration stated that the defend- ant was a chemist, and in the course of such business professed to sell a chemical compound made of ingredients linown only to the defendant, Avhich he represented to be fit and proper to be used for washing the hair without injury to the person using it, and to have been carefully and skilfully com- pounded by himself ; that the defendant sold a bottle to the husband to be used by the wife as a hair-wash as the defendant knew, and upon the terms that the same was fit to be used by her without injury, and had been skilfully and carefully compounded by the defendant. Yet the defendant had so negli- gently and improperly conducted himself, &c., that by the mere negligence, &c., of the defendant, the said compound could not be used without personal injury, whereby the wife in using the same was injured. It was objected on the part of the defendant that the injury to the wife being the cause of action, the declaration disclosed no facts which cast upon the defendant a legal duty towards her, and it was attempted to distinguish the case of Langridge v. Levy on the ground that in the present case there was no averment that the defendant knew that the compound was deleteri- ous. The court held that the declaration disclosed a good cause of action on the ground that the duty of the vendor towards the purchaser to use ordinary care in compounding the wash extended to the person for whose use the vendor knew the compound was purchased. Cleasby, B., is reported to have said "substitute negligence for fraud and the analogy between Lang- ridge V. Levy, and this case is complete." It is a little difticult to extract from the judgments the precise principle upon which this case was decided, but it is submitted that it may be sup- ported, if at all, upon the analogy of those cases cited by Parke, B., in the judgment in Longmeid v. Holliday, in which persons not parties to contracts may sue for the damage sustained if they be broken : cases in which a wrong has been done to a person for which he would have had a remedy although no such contract had been made, as, for instance, where an apothecary who has supplied improper medicines, or a surgeon who has unskilfully treated a patient, has been held liable to him for misfeasance, although the father or friend of the patient may have been the contracting party. See Pippin v. Shepherd, 11 Price 400; Gladwell v. Sleggall, 5 Bing. N. C. 733; Foulkes v. Metropolitan District Railway Co., 5 C. P. D. 157, and compare Marshall v. York, Newcastle, and Berioick Railway Co., 11 C. B. 655, 21 L. J. C. P. 34. The dictum of Cleasby, B., however applicable to the facts of the case under discussion, must, it is apprehended, be taken as strictly limited to them, since it would be difficult to reconcile with Longmeid v. Holliday, the doc- trine that the mere omission to use ordinary care in the manufacture of a chattel could, in the absence of fraud or knowledge of the defect, render the vendor liable to third persons not parties to the contract, although he was aware that the chattel was designed for their use; see Winterbottorn v. 13:^4 I'ASLKV V. lUKK.MAN. Wriijht, sup., Lotifjmi'itl v. JIiillulit>j, sup., aiul im-ri' no;;li<;t'iu-(' and fraiitl can- not fonsistontly witli tliosc- decisions bo treiittMl as convertible terms in such cases. For a case sliowinj; wiiat tleijri'e of connection It is necessary to estal)Hsh between the nejflijjent person anil the person Injured, see (.'ollin v. Selden, L. U. 'A C. P. 495, with which case compare Parry v. Smith, 4 V. V. I). .•J'i.'i. Since the last edition of tills work, the principle involved in these cases was attain much discussed in the recent case of Ilfuvfii v. I'fiider, '.» (j. H. I). •MYl; II Q. B. I). '>!):$; J2 L. .1. Q. B. 702. In that case the plaintiH", a painter, met witli an accidi'ut tlirou;;h the defective condition of the ropes support- in?; a stuije upon which lie was standini; while paintini; a ship lyiui; in dock. The stajje was supplied by the dock owner under a contract with the ship- owner, l)y whom the plaintitt' was employed. There was evidence that the tlefendant hail not taken reasonable care as to the condition of the ropes at the time when he supplied the staije. Judgement havin''lty of fraud or of a breach of duty to tell the truth, and who ditl not come uiuh-r the rule as to pi-rsons wlio invite others to use thi-ir property, inasmuch as he had ceased to have any control over the stajje after he parted with it to the shipowner. They treated (ieortje v. Skirinijtnn as in point, but as Inconsistent with Wiutftlinttmn V . W riijht a.\v.\ I.iiHijmiid v. IlnUiilnij, which latter cases they preferred to follow. Tills ilecision was reversed on appeal, but with a ditt'erence of opinion ainon^ the Lords .Justices. Brett, M. U., after an elaborate examination of the au- thorities, in which he treats (it'orije v. Skiviiuitntt, as well decided, tleduces from them the followiiiii proposition, which he lays down as coverins; and reconcil- inu; tliem all " that whenever one person is by circunistaucos placed in such a jxisition witli regard to another that every one of ordinary sense who did think would at once recojiuize that if he «lid not use ordinary care and skill in his own coiuluct with regard to those circumstances he would cause danger of in- jury to the person or property of the other, a duty arises to use ordinary care and skill to avoid danger." He was, however, further of opinion that the case fell within the narrower proposition, which atTlrms the duty of the inviter towards the person inviteil to take reasonable care. Cotton, L. J., in a judg- ment in which Bowen, L. J., concurred, declined to adopt the larger proposi- tion aijove set out, instancing Lmif/ridtje v. Levy, Blnkemore v. Bristol and Exeter Rail. Co., CuUis v. Selden, and Linnjmeid v. /lolUd'i;/, as ca.ses in which it was inipliedl.v negatived. He heUl, however, that when ships were received into dock for repair, and provided with stages for the work on them wliicli was to be executed there, all those who came to such ships for the purpose of painting and otherwise repairing them, were there for business in which the dock owner was interested, and must be considered as invited by the dock ow'uer to use the dock and all appliances provided by him as incident to the use of the dock. That he would not be responsible for defects arising through the neglect of those who took the control of the stage after he parted with it, but that in the case before them the defect which caused the accident existed at the time when the stage was provided by the dock owner. (See also Elliott v. Hall, 15 Q. B. D. 315 ; 54 L. J. Q. B. 518.) In dealing with Georr/e v. Skivington, Cotton, L. J., expresses no disagreement with the divis- ional courts ; on the contrary, he says it seems to support the general propo- PASLEY V. FREEMAN. 1325 sition which he denies to be law, and that Cleasb3% B., had for the purposes of that action treated the negligence of the defendant as equivalent to fraud, which he regarded as the ground upon which Langridge v. Levy was decided. The general rule that a person who is no party to a contract cannot sue in respect of damage resulting to him from the breach of it is well illustrated by the case of AUon v. The Midland Railway Company, 19 C. B. N. S. 213, where a master sued a railway company for neglect of duty in carrying his servant, Avhej-eby the latter was injured, and the master lost the benefit of his services. The court however held that the injury had resulted from a breach of duty arising out of a contract, that the mode of declaring could not aflect the liability of the defendants, and that the master, being no party to the contract, could not sue in respect of damage caused by a breach of it. See further Goslin v. Agricultural Hall Co., 1 C. P. D. 482; Cattle v. Stockton Waterworks, L. R. 10 Q. B. 453. Where, however, the defendant, a gasfitter employed by the plaintifi''s mas- ter, left his Avork in such a condition as to be dangerous to a person approach- ing it with reasonable caution, the plaintift", having been injured while so approaching it, was held entitled to recover. In this case there was a duty upon the gasfitter, wholly independent of contract, to take proper precau- tions to prevent a thing dangerous in itself from causing damage to any per- son lawfully approaching it. Parry v. Smith, 4 C. P. D. 325. The rules deducible from Langridge v. Levy as to liability for representa- tions are elaborately discussed by Wood, V.-C, in his judgment in Barry v. Croskey, 2 J. & H. 18-23, cited with approval by Lord Cairns in Peek v. Gur- ney, L. R. 6 H. L. 412.] General acceptance of the principal case in the United States. — The action to recover for a fraudulent representation of another's solvency is but an instance of the action for deceit. Where all the necessary elements concur, it is now generally recognized that the action will lie notwithstanding the objec- tions which were urged against it. In the majority of cases the question of the defendant's liability for a fraudulent misrepre- sentation has not been raised, but it has been assumed that he is liable provided the necessary elements concur. The cases are numerous, however, in which the question whether the action will lie has been discussed. In Upton v. Vail, 6 Johns. 181, the defendant, who had a judgment bond against one Brown, and knew him to be worthless, nevertheless recom- mended him to plaintiff as being " as good as any man in the county " for the price of the, goods plaintiff was to sell him. After plaintiff had made the sale, the defendant entered judg- ment, and under execution levied on the goods sold to Biown by plaintiff. Kent, Ch. J., delivered the opinion of the court, in which he said: ''We have never expressly decided in this court that the action would lie. . . . The case of Pasley v. Free- loJO I'ASLKV V. I'ltKKMAN. man, decided in tlie K. H. so lute us the year 17.S9 ... is the fust direct authority, iu the Euglislj courts, in support of tlio action. I liave carefully examined the reasoning of the judges in that case, and in the sul)sequent cases, which g«) to questicni or sujUjort the soundness of that decision; and I profess luy ai)i)rol)ation of tlie doctrine on which it was decided. Tiie case went not upon any new ground. Imt upon the application of a princii)le of natuial justice, long recognized in the law, tiiat fraud or deceit, acconi[)anicd with damage, is a good cause of action. This is as just and permanent a principle as any in our whole jurisprudence." And again : " liut independent of the English cases, I place my opinion upon the i)road doctrine that fraud and damage coupled together will sustain an action. This is a princi[)le of universal law." In Connecticut the cases of Wise V. Wilcox, 1 Day 22, and Hart v. Tallmadge, 2 Day :5Sl, follow I'asley f. Freeman. In Kidney v. Stoddard, 7 Met. 2r)2, it was said that : '' From the tiuu; of the judgment in the great case of Pasley i\ Freeman to the pn-sent day, through the long line of decisions hoth in ICngland and .Vnu-rica, the principle of that lase, though wilii some statute modilications, remains unshaken and unimpaired." .\nd the (luestion was discussed and the Entrlish cases followed in N'ermont in l-^wius v. Calhoun, 7 Vt. 70, and Weeks v. Burton, 7 Vt. (17 : and in Pennsylvania in Boyd's Executors v. Browne, <> Pa. St. olO. Decisions in other states will be found in Endsley v. Johns, 120 111. 4»J9; McKown /•. Furgason, 47 la. 036; Chisolm v. (iadsden, 1 Strol). 220. What must be proved to maintain the action. — In Busterud v. Farrington, oti Minn. o2(>, tlie essentials of the action for deceit were laid down: "An action for deceit lies against one who makes a false reprcscntatit»n of a material fact susceptible of knowledge, knowing it to be false, or as of his own knowledge when he does not know whether it is true or false, with inten- tion to induce the person to whom it is made, in reliance ui)on it, to do or refrain from doing something to his pecuniary hurt, when such person acting with reasonable prudence is thereby deceived and induced to so do, or refrain, to his damage." The representation must be false Twhen made. — Unless the state- ment be false, no action will lie : and the question of the truth or falsity of the representation must be determined by the facts as they were when the representation was made. A change in PASLEY V. FREEMAN. 1327 the condition of affairs, subsequent to the time of making the representation, cannot affect the liabiUty of the person making it ; Corbett v. Gilbert, 24 Ga. 454. And it seems the defendant is liable for a fraudulent misrepresentation, even when at the time the plaintijEf acted in reliance on the representation, the statement was true, if it was false when made ; Reeve v. Den- nett, 145 Mass. 23, 30. Falsity may consist in suppression of the truth, or the assertion of a falsehood. — The false representation may consist in the suppression of the truth, as well as in the assertion of a false- hood ; Allen v. Addington, 7 Wend. 9. In Kidney v. Stoddard, 7 Met. 252, the defendant had concealed the fact that the per- son he recommended was a minor. The judge instructed the jury that when a party intentionally conceals a material fact, in giving a letter of recommendation, it amounted to a false repre- sentation. On motion for a new trial the charge was held to be correct. See, also, Tryon v. Whitmarsh, 1 Met. 1 ; Boyd's Exec- utors V. Browne, 6 Penn. St. 310 ; Decker v. Hardin, 5 N. J. 579 ; Bokee v. Walker, 14 Penn. St. 139 ; Chisolm v. Gadsden, 1 Strob. 220 ; Rheem v. Naugatuck Wheel Co., 33 Penn. St. 358. In Chisolm v. Gadsden, it was held that a misrepresenta- tion need not consist in words " but that on the contrary, such a fraud as sustains the action in question may grow out of deeds as well as words," Lobdell v. Baker, 1 Met. 193. But while one can commit a fraud by mere silence, a deception implies some act or language. The representation must be of a fact. — The representation must be of a fact; Buschman v. Codd, 52 Md. 202; Ins. Co. v. Reed, 33 Ohio St. 283 ; and the cases lay down very generally that an opinion is not a fact within the meaning of the law. It is said, " If any one relies on mere opinion instead of ascertaining facts, it is his own folly ; " Sieveking v. Litzler, 31 Ind. 13 ; Fulton v. Hood, 34 Pa. St. 365 ; Tuck v. Downing, 76 111. 71 ; Crown v. Carriger, 66 Ala. 590 ; Starr v. Bennett, 5 Hill 303 ; Belcher v. Costello, 122 Mass. 189 ; Buschman v. Codd, 52 Md. 202 ; Gordon V. Butler, 105 U. S. 553. It is probably safe to say, however, that as the rule is generally stated, it rests on no logical basis, and does not represent the law. The state of one's mind on a sub- ject is a fact, and it is immaterial whether it be in regard to a subject capable of positive knowledge, or in regard to one on which only an opinion can be entertained; and the state of the 1328 PASLEY V. IK 1.1. MAN. defendant's mind in reference to his Ixjlief in the truth of the statt'UU'nt made hy him, ii.s will appear helow, i.s the ti'st of his liiil)ility. As rej^ards the form of the statement, it is ohviously iimiialt'i ial whether the defendant says: "Such is my opinion ;" or, "such is the fact." In eitlier ease the speaker is understood to he e.xpre.ssing his opinion merely, and the statement that a fraudulent misrepresentation i>f an opinion creates no liahility, has no reference to the form of the words, hut only to tlie sub- ject-matter. 'I'he rule is su|>posed to apply to cases in which a statement is made, re^Mrdin^; the tiulh of which the person njakin^ it can have n<» alxsolute knowledge. In this class of casrs the defendant must state his U-lief trutiifully, or lie is liahlc if damage ensue to the plaintiff. A different rule ap[)lies to statements made hy persons who are alK)ut to contract witli each other. The consideration of the reason for this excei)tion must, for the present, he deferred. Hut it is the cla.ss of cases just mentioned which has given ri.se to the erroneous idea, that a liahility can not he created hy a fraudulent mi.sstatcment of a matter of opinion. The cases generally arise lu'twcen vendor and vendee, where the vendor has overestimated the value of iiis property; the ri-ason given for exempting the vendor from rcsponsihility for his misstatements, viz., that the value of proj)- erty is a matter of opinion, and hence no action will lie, is shown to he wrong hy the fact that an action will lie against a defend- ant, not a party to the contract, who expresses a fiaudiUeiit opinion as to the value; Medbury v. Watson, •) Met. '24it ; Busterud v. Farrington, 30 Minn. 320. The same idea seems to have been in the mind of Mr. Justice Field in (Jordon v. But- ler, 105 U. S. 553, where the defendants had given a certificate of the value of certain tpiarries. The ease of Pasley v. Free- man is high authority for the view that a statement of o})inion as well as of fact, renders the defendant liable for a fraudulent misrepresentation. A representation of another's solvency must in the nature of things be an expression of oi)inion, and it was so held in Belcher v. Costello, 122 ]\hiss. 1 tions, was that the parties were good. This, taken by itself, is not the statement of a fact, but the expression of an opinion merely ; " Marsh v. Falker, -40 N. Y. 562 ; Doty v. Campbell, 1 How. Pr. N. S. 101. The same view was taken in Savage v. Jackson, 19 Ga. 305, though it was erroneously supposed that PASLEY V. FKEEMAN. 1329 that view was inconsistent with the correctness of Pasley v. Free- man. See, also, Lyons v. Briggs, 14 R. I, 222 ; Jude v. Wood- burn, 27 Vt. 415. The conclusion to be drawn from the cases is that the defendant's "opinion" is to be regarded as a fact, for fraudulently misrepresenting which he incurs a liability. See, also, Hubbell v. Meigs, 50 N. Y. 480, 489 ; Hickey v. Morrell, 102 N. Y. 454, 463. A promise is not a representation. — A promise or expression of intention is not a representation, and the person making it cannot be held liable as for a deceit, even though he had no intention of living up to it. Thus where the declaration alleged that the defendant expressed a willingness to endorse the note of another, if the plaintiff would sell him a quantity of cotton, in reliance on which representation plaintiff sold the cotton ; that defendant was not willing and did not intend to indorse the note ; and that by reason thereof the plaintiffs were dam- aged, it was held that there was no ground for an action for a deceitful representation ; Gallager v. Brunei, 6 Cow. 346 ; Gage V. Lewis, 68 111. 604 ; Lexow v. Julian, 21 Hun 577 ; Fenwick v. Grimes, 5 Cranch C. C. 439 ; Farrar v. Bridges, 3 Humph. 566 ; Long v. Woodman, 58 Me. 49 ; Burt v. Bowles, 69 Ind. 1 ; Sieveking v. Litzler, 31 Ind. 13. Representation of law. — A misrepresentation as to the law applicable to a given state of facts cannot be made the basis of an action for deceit; Starr v. Bennett, 5 Hill 303. The reason given for this is, that as the law is presumed to be equally well known to all, no one has a right to rely on the opinion of another respecting it ; Townsend v. Cowles, 31 Ala. 428 ; Steam- boat Belfast V. Boon, 41 Ala. 50 ; Clem v. Newcastle & Danville R. R. Co., 9 Lid. 488 : Russell v. Branham, 8 Blackf . 277 ; Ins. Co. V. Reed, 33 Ohio St. 283 ; Fish v. Cleland, 33 111. 238 ; Lehman v. Shacklef ord, 50 Ala. 437 ; Reed v. Sidener, 32 Ind. 373 ; Lexow v. Julian, 21 Hun 577 ; Burt v. Bowles, 69 Ind. 1 ; Gormely v. Gymnastic Association, 55 Wis. 350 ; People v. Supervisors of S. F., 27 Cal. 655 ; Jaggar v. Winslow, 30 Minn. 263;. Upton v. Tribilcock, 91 U. S. 45. But see Abbott v. Treat, 78 Me. 121, 126. The representation must be of a material fact. — A misrepre- sentation to be actionable must be of a material fact ; Schwa- backer V. Riddle, 99 111. 343 ; Jordan v. Pickett, 78 Ala. 331 ; Hall V. Johnson, 41 Mich. 286. "• If false and fraudulent rep- 1330 PASLKY V. niKKMAN, resentations he ixllt'^fd as tlie j^noiiiKhvoik for avoiding u bar- gain, it nuist 1)L' shown that, like poison, it entered into, and mixing with, the vital essenee of it, taint«Ml iind destroyed it;" Clark V. Hverhart, 03 Penn. St. 347. Still a party who ha.s effected his purpose through a misrepresentation eannot ordina- rily deny its materiality, and it will he considered enough if it might have had a substantial etTect, as one of several induce- nifiits. It need not have W'cii the sole inducenieni ; James v. Ilodsden, 47 \'t. 1-7 ; -Jordan r. Vickcit, supnt ; Addington i'. Allen, 11 Wend. 374: Saff.)rd v. (irout, 120 Mass. liO ; Hale r. Philinick, 47 i;i. L'17 : Fishbaek v. Miller, 1.") Nev. 428; Winter V. lian.lel, 30 Ark. 3(12 ; Lebby r. Ahrens, 2t; S. ( '. 27.'). Hut see Xrwsoni r. .laekson, 2tt (i;i. 24S. Must be fraudulent as well as false. — Vo render the defendant liable, the rei)resent.ation must be not only false, but fraudulent. A mere mistake will not impose any liability upon him. It is well srttled in this eountry, th.it as f;ir as the class of eases under consideration is concerned, the defendant must have been guilty <>f a moral wrong to rendtu- him liable; Cowley /•. Smyth, 40 N. .1. L. 380. If the defendant states what he knows to be untrue, or makes a positive representation as of his own knowledge, when he knows nothing whatever about the matter, he is guilty of a deceit if the statement be untrue; McKown v. Furgason, 47 la. 030. The moral element in tlie second class of cases is to l)e found in the imi»lied assertion that the person making it has some knowledge ainjut the matter, when in real- ity he has not. In many of the cases an " intent to deceive " or "to defraud" is said to be necessary. This does not mean that the defendant must have intended to injure the i)laintilT. From the very fact that one makes a misstatement knowingly, and in- tending that it shall be acted on, an intent to deceive or to de- fraud is inferred; Cowley v. Smyth, 40 N. J. L. 380; Hudnut V. Gardner, 59 Mich. 341 ; Endsley v. Johns, 120 111. 409. The rule is necessarily different where the deceit is alleged to con- sist in a suppression of the truth. The failure to state all the facts knowingly does not render the defendant liable, unless made with a view to deceive the person relying on his repre- sentation ; Bokee v. Walker, 14 Pa. St. 139. Statements known to be false. — In Lord v. Goddard, 13 How. 198, the court sav : •' The srist of the action is fraud in the de- fendants, and damage to the plaintiff. Fraud means an inten- PASLEY V. FEEEMAN. 1331 tion to deceive. If there was no such intention, if the party honestly stated his own opinion, believing at the time that he stated the truth, he is not liable in this form of action, although the representation turned out to be entirely untrue." To the same effect, Marsh v. Falker, 40 N. Y. 562 ; Stitt v. Little, 63 N. Y. 427 ; Avery v. Chapman, 62 la. 144 ; Sims v. Eiland, 57 Miss. 83 ; Holdom v. Ayer, 110 111. 448 ; Graham v. HolHnger, 46 Pa. St. 55. In this last case the court say : " Guilty knowl- edge and an intent to deceive were essential to the plaintiff's recovery ; " Huber v. Wilson, 23 Pa. St. 178 ; Tucker v. White, 125 Mass. 344 ; Hartford Ins. Co. v. Matthews, 102 Mass. 221 ; Terrell v. Bennet, 18 Ga. 404 ; Crown v. Brown, 30 Vt. 707 ; Zabriskie v. Smith, 13 N. Y. 322; Sollund v. Johnson, 27 Minn. 455 ; Schwabacker v. Riddle, 99 111. 343. Reckless statements. — Representations made in ignorance of their truth or falsity involve moral turpitude equally with knowingly false statements. " If the party made the representa- tion not knowing whether it was true or false, he cannot be con- sidered as innocent ; since a positive assertion of a fact is, by plain implication, an assertion of knowledge concerning the fact. Hence, if a party had no knowledge, he has asserted for true what he knew to be false ; " Ins. Co. v. Reed, 33 Ohio St. 283, citing Bigelow on Fraud, 61 ; Stone v. Covell, 29 Mich. 359; Woodruff v. Garner, 27 Ind. 4; Fisher v. Mellen, 103 Mass. 503 ; Foard v. McComb, 12 Bush 723 ; Nugent v. C. H. & I. Street R. R. Co., 2 Disn. (Ohio) 302. This is the rule laid down in Hartford Ins. Co. v. Matthews, 102 Mass. 221 ; Beebe v. Knapp, 28 Mich. 53, 76 ; Duff v, Williams, 85 Penn. St. 490 ; Einstein v. Marshall, 58 Ala. 153. The language used by the court in Tucker v. White, 125 Mass. 344, goes even fur- ther, and would seem to make one asserting a fact as of his own knowledge responsible absolutely for the correctness of his statement. But this is not a correct exposition of the law, unless the person making the representation has no rea- son whatever for his belief on the subject. No liability for rash or indiscreet statements. — If he has some reason to believe he knows the facts to be as he states them, he is not to be held liable simply for being rash or indiscreet; Young V. Covell, 8 Johns. 23 ; and whether he had sufficient reason for his belief is not a proper matter of inquiry so long as there was some foundation for the belief. 1332 PASLEY V. IKF.KMAN. It is not necessary that there should be reasonable grounds for the belief expressed. — Jii Dilwoitli v. Unidnfi-, Mr, Juslifo Sluirswoocl, in discussing the question, siiys : "It would intro- duce a new and very dunfjeious element into the motive for a representation whieli is false ami may ))<■ injurious ean l)e good; and a lie to help a frien; Allen v. Addington, 7 Wend. 0, 2-2; Patten r. (lunu'y, 17 Mass. Isii; Hart r. Tallmadge, "J Day 3M1 ; i:nd>lcy r. .lohns, 120 111. 4t;:>; Cowley v. Smyth, 4«; N. .1. L. 3S0. If the defendant int»'n, lis Mich. 53, 7G. Who may sue. — ( )ne who makes a misrepresentation must, to render himstdf liable, have man of another, it is to be assumed tliey are made dclil)er- ately and after due inquiry, and it is no hardship to hold the l)arty making them to their truth. But lie is morally account- able to no person whomsoever but the very person he seeks to influence, and whoever may overhear the statements and go away and act upon them can reasonably set up no claim to having been defrauded if they prove false ; " Cooley on Torts, * 493 ; Rawlings v. Bean, 80 Mo. 614. It was accordingly held in McCracken v. West, 17 Ohio 1(3, a case in which the defendant had addressed a letter of recom- mendation to one person which had been presented to and relied on by another, that the latter had no right of action. But a rep- resentation may be made with a view to its being acted on by any one of a class, and to recover in such a case the plaintiff need only bring himself A\athin the class ; Allen v. Addington, PASLEY V. FREEaiAN. 1335 7 Wend. 9 ; same case on appeal, 11 Wend. 374 ; Clopton v. Cozart, 13 Sm. & M. 363 ; Carvill v. Jacks, 43 Ark. 454. It is immaterial whether the statement be made directly to plaintiff or to a third person with the intent that he repeat it to the plaintiff; Watson v. Crandall, 78 Mo. 583. It is on these prin- ciples that a person making a false and fraudulent statement to a commercial agency, for the purpose of having it communicated to any one interested in his pecuniary responsibility, renders himself liable to any inquirer who relies on the report based on his statement; Eaton v. Avery, 83 N. Y. 31; Genesee Co. Savings Bank v. Michigan Barge Co., 52 Mich. 164 ; Holmes v. Harrington, 20 Mo. Appeals 661; Macullar v. McKinley, 49 N. Y. Super. Ct. 5 ; aff'd. 99 N. Y. 358 ; Goodwin v. Goldsmith, 49 N. Y. Super. Ct. 101. In Williams v. Wood, 14 Wend. 126, it was held that where the defendant gave a recommendation to an insolvent, he was liable to any one that relied on it to his injury, and that the defendant could not show that it was given to enable the per- son recommended to make a particular purchase. The decision may be regarded as correct on the ground that the recommen- dation was a general one on its face, and there was nothing to lead plaintiff to believe that it was not intended for him as well as for another. This distinguishes the case from McCracken v. West, supra. But in Addington v. Allen, 11 Wend. 374, at p. 383, Chancellor Walworth queries whether a person giving a false recommendation can be made liable to any one except the person for whom the recommendation was intended. Plaintiffs reliance on representation. — The plaintiff in order to recover for the deceit must prove that he acted in reliance on the representation; Nye v. Merriam, 35 Vt. 438; Hagee v. Grossman, 31 Ind. 223 ; Humphrey v. Merriam, 32 Minn. 197 ; Runge V. Brown, 37 N. W. Rep. (Neb.) 660. If he was cogni- zant of the falsity of the representation, or did not believe it, he cannot recover, for in that case he has not been deceived ; Clopton V. Cozart, 13 Sm. & M. 363 ; Proctor v. McCoid, 60 la. 153 ; Nelson v. Luling, 62 N. Y. 645 ; Bowman v. Carithers, 40 Ind. 90 ; Anderson v. Burnett, 5 Miss. 165 ; Edick v. Crim, 10 Barb. 445 ; and the plaintiff must prove affirmatively that he did believe the statement and relied on it ; Humphrey v. Merriam, 32 Minn. 197 ; therefore if the plaintiff investigated the facts concerning which the representation was made, he cannot be ItJSG iA>t.i.\ \. I i:i:i:.MAN. siiicl to luive rt'lit't reoover; Iliigee r. ( Jrossinaii, ol Iiul. --">; Poland r. lirowiU'll, l-'H Mass. 13H; Tuck r. Downin*,', Tti 111. 71 : AikI.tsoii r. Me Pike, MO Mo. 293. 11 tlu' (left'iulant has niadf a niisifpifsfiitatiun, luul ha.s also givon a wananty, hu is not liable for the deceit if the jdaiii- tift' relied on the wananty, and not on the lepresentations ; Iloldoni r. Ayer, 110 111. 44H ; Humphrey r. Merriam, 3:i Minn. l'J7 ; nor is he liable if the plaintitY was not induced by tlie rep- resentation to act. in Minj^ v. \Voi)lfolk, 110 V. S. 51>l), it appeared that the plaintiff would havt* acted as he did in the absence of any iepresentati<»n on the part of tlu' di-fciid.iMt. and lie was therefore not allowed to recover. It is not lu'ccssary, however, as stated ttii/mi, that the false representation shoid9. So if the value of the thing sold c'lm only he known to experts, the pureluuser may rely on the value exi)re.ssi(l l»y the seller, if he is a dealer in sueh goods; Pieard r. .M(( Ornutk, U Mieh. 08 ; Kost r. Bender, 2.> Mich, f)!.'); Il;iML,Mr V. ICvins, liH Ark. •VAA : McKt'c i\ lCatt)n, 20 Kas. 220; <■/. Alien i\ Hart, 72 111. 104. An cvaininatinn of the cases in whirh n)is.statenients ni /net have l>een niatlr, shows them to l)e in direct eoidliit with eaih other. In some lases it is held that an action will lie for a fraudulent statement of the nundier of acres which a piece t>f land contains; Whitney v. Allaire, 1 N. Y. aOf); Ileardsley c. Dunlley, OH N. V. .•)T7 ; Starkweather r. Benjamin, ;J2 Mich. oO."> ; Coon r. Atwell, 40 N. II. olO ; Sancrster r. I'rather, 34 Ind. 004; Hill r. lirower, 7«; .N ( . 124; while olluT cases sujtpoit tlieopjiosite vii'W ; (inrdon r. I'armelee, 2 Allen 212; Mo..niy '•. .Miller, 102 .Mass. 217; Credle v. Swindill, «;:} N. ('. 30.'). In Slierw(.od v. Salmon, 2 Day 128, it was held that a fraudidciit representation by the vendor of the situation of the land creat»-d no liahility, even if the vendee had no o[)[)ortunity of examination. It is hi'ld in s(»me cases that a statement of the price {)aid by the vt'udor for what he is selling iloes not ien Hill 63; McAleer v. Hoi*sey, 35 Md. 430; Somers v. Ilichards, 4(» \'t. 170. The difference here may be due to the view the courts take of the materiality of such a statement. No action unless damage. — No action will lie unless the plaintiff can prove liis ilaniages ; Ming v. Woolfolk, 110 U. S. 699; Freeman v. McDaniel, 23 Ga. 354 ; Fuller v. Ilodgden, 25 ^le. 243 ; Danforth v. Cushing. 77 Me. 182 ; Runge v. Brown, 37 N. W. Rep. (Neb.) 000 ; W^emple i'. Hildreth, 10 Daly 481 ; Byard v. Holmes, 34 N. J. 290 ; Nye r. Merriam, 35 \'t. 438. Liability of directors for fraudulent prospectus. — " llie direc- tors of a company who knowingly issue or sanction the circu- lation of a false prospectus, containing untrue statements of material facts, the natural tendency of which is to mislead and deceive the community, and to induce the public to purchase PASLEY V. FREEMAN. 1339 its stock, are responsible to those who are injured thereby ; " Morgan v. Skidcly, 62 N. Y. 319 ; Terwilliger v. Great West. Tel. Co., 59 111. 249 ; Cross v. Sackett, 6 Abb. Pr. 247 ; cf. also Fenn v. Curtis, 23 Hun 384; Booth v. Wonderly, 36 N. J. L. 250 ; Paddock v. Fletcher, 42 Vt. 389. The officers of a corpo- ration are liable in the same manner for publishing a false report of the condition of the corporation, to any one injured by rely- ing on the same ; Morse v. Swits, 19 How. Pr. 275. Statement of one's own solvency. — There remain for consid- eration some questions in regard to the action for fraudulent representations of solvency. It is held in some cases that, as between contracting parties, a statement by one of his solvency is not a representation on which the other can rely ; Lyons v. Briggs, 14 R. I. 222 ; Jude v. Woodburn, 27 Vt. 415. But such a statement regarding one's own solvency is to be regarded as a statement of facts, and the better view would seem to be that an action will lie in the case mentioned. Meaning of " solvency." — A representation of solvency means that the debtor is able to meet all his obligations, not merely the one incurred on the strength of the representation ; Daniels V. Dayton, 49 :\Iich. 137 ; McKown v. Furgason, 47 la. 636. It does not mean that the debtor has sufficient property subject to execution to meet all his obligations ; McKown v. Furgason, supra; Einstein v. Marshall, 58 Ala. 153. It is not essential to the maintenance of the action, that a judgment should have been obtained against the debtor and execution issued against his property ; Winter v. Baudel, 30 Ark. 362 ; nor is it necessary, in fact, that an action should have been brought for the collection of the debt before suing for the deceit ; Kidney v. Stoddard, 7 Met. 252 ; cf. Weeks v. Burton, 7 Vt. 67 ; Tryon v. Whitmarsh, 1 Met. 1. Rule of damages. — Where one has parted with property on a fraudulent misrepresentation of the vendee's solvency, the true measure of damages would seem to be, not the price agreed to be paid, but the value of the property at the time of the sale, not exceeding the price agreed on ; Crews v. Dabney, 7 Littell (Ky.) 278 ; cf. Spikes v. English, 4 Strobh. 34 ; Home v. Wal- ton, 117 111. 141 ; but vld. Sibley v. Hulbert, 15 Gray 509. Objections against Pasley V. Freeman. — The objections which have been urged against Pasley v. Freeman have been, (1) that the allowance of the action involves a violation of the principle 1340 PASLKY V. rUKK.MAN. of the Statute of Fnuuls ; (li) ili;it the representation of the linancial responsibility of another is not a matter suseeptil>le of knowledge, and must in the very nature of things lie hut the expression of a matter of oj)inion. The latter ohjection has been dealt with already. The Statute of Frauds does not apply. — The objection that the case comes within the spirit of the Statute of Fraiuls is clearly untenable. That deals exclusively with contraets, while tins action is founded on tort, and a recovery in this elass of eases does not prevent the plaintiff reeovering anew from the debt«)r; Wise V. Wilcox, 1 Day 22; IJoyd's Kxeentors r. lirowne, I*»'nn. St. 310. In Upton V. Vail, «; .Johns. iMl, Kent, ('. .1. «lealing with this objection, says: "This, I apprehend, is an objection arising from public policy and expediency; for it is certain that the Statute of Frauds as it now stands has nothing to do with the case." Statutory enactments requiring the representation to be in vrrit- ing. — This view is universally accepted, and in accordanie with the idea that the case comes within the mischief of the Statute of Frauds, tliat h;is been cxti'iided by enactment to cover the action for misrepresenting another's financial condition. The following states have provisions recjuiring repiesenta- tions concerning the credit of another to be in writing, in order to bind the person making them; Alabama (Code, § 1734); California (Ilittcll's Cod. § 111»T4) ; Idaho (Rev. Stat. § 0011) ; Indiana (Rev. Stat. § 4VM)0) ; Kentucky (Gen. Stat. chap. 22, § 1) ; Maine (Rev. Stat. 1883, chap. Ill, § 3) ; Massachusetts (Public Stat. chap. 78, § 4); Michigan (How. Annot. Stat. § 6188) ; Missouri (Rev. Stat. 1870, § 2515) ; Oregon (Anno- tated Laws, § 786) ; South Carolina (Gen. Stat. 1882, § 2024) ; Utah (C. Civ. P. § 1210); Vermont (Rev. Laws 1880, § 983); Virginia (Code, § 2840, 1) ; West Virginia (Amd. Code 1884, § 98, 1) ; Wyoming (Rev. Stat. 1887, § 1249, 6). Application of the statute. — But notwithstanding the statute, it is held in Kentucky that in "any case of actual fraud, in wan- tonly misrepresenting a man's credit," there need be no writing any more than in case of any other kind of fraud in fact ; and that it is "not actually fraudulent to afifirm absolutely as true that which the asserter believes to be true. The mains animus is the essential and distinctive element of actual fraud;" Warren V. Barker, 2 Duv. 155 ; cf. Ball v. Farley, 81 Ala. 288. PASLEY V. FREEMAN. 1341 In Massachusetts, on the other hand, it is hekl that the stat- ute applies so long as the intent is to induce the plaintiff to give credit to a third party ; Mann v. Blanchard, 2 Allen 386 ; Wells V. Prince, 15 Gray 562 ; Kimball v. Comstock, 14 Gray 508 ; and it is immaterial that the defendant had an ulterior motive in making the misrepresentation, and expected to derive a benefit from the plaintiff's giving the credit. In Kimball v. Comstock, siqv'a, the defendant had induced plaintiff to sell to the debtor, with a view of satisfying a demand held by the defend- ant against the debtor, out of the goods sold. Yet it was held to be within the statute. To the same effect are Mann v. Blan- chard, supra ; Wells v. Prince, supra ; Cook v. Churchman, 104 Ind. 141 ; Hunter v. Randall, 62 Me. 423. But the statute will not apply unless the representation is made with a view to induce the plaintiff to give credit to another. Where, there- fore, the defendant represented the maker of a note held by him to be solvent, and thereby induced plaintiff to accept it as collateral security for a debt owing by defendant to plaintiff, the statute was held to have no application ; Belcher v. Costello, 122 Mass. 189. In Michigan the statute was held not to apply in a similar case ; Huntington v. Wellington, 12 Mich. 10. See, also, Lenheim v. Fay, 27 Mich. 70 ; cf. St. John v. Hendrick- son, 81 Ind. 351. In Bush V. Sprague, 51 Mich. 41, it was held that, in an action for conspiracy, the statute did not prevent parol repre- sentations of another's solvency, being put in evidence to prove the conspiracy. The case of Cook v. Churchman, 104 Ind. 141, is apparently in conflict with this. These statutes of doubtful expediency. — The policy of these statutes may well be doubted. In Ewins v. Calhoun, 7 Vt. 79, the court say : " That the evidence of contracts which require mutual consent should be required to be in writing, or have any other prescribed formalities, is practicable at least, and may be useful. But that the proof of facts which constitute fraud or crime should be so privileged, would exempt most offenders. To undertake to prevent fraud, by supposing all verbal com- munications false, would destroy all confidence in business and in society." DOE d. KK.iGE V. BELL. ,\/fc/f —:]i GEO. 3. [UKroltTK.I» !"> T. It. 471.] If a landlord lease for Hfren i/fiin< /-// parol, and ar/ree that the tenant shall enter at Ladif-ility, and ; [Tfwmnti v. I'lfkt-r, I II. &. X. Jjr.'J ; Watiton v. Wnuil, H Kxch. :{:$."• ; anil lifnnell v. Inland, E. B. i E. l\2G]. In I'ixlor v. Ciilnr, 1» M. & W. 'M'f, a tenant entered upon a copyhold under an agree- ment for a lease its soon its thr Innl's linnrf nmlil lie nhtitiiifil, in wideh he was to covenant to repair. No licence ever was obtained, or lease made, yet held that he was bouml to repair. This seems a stronj; case, [and .see Murtin v. StnilU, L. U. 9 Ex. 50; 4:J L. J. Ex. 4L'; H>i« v. Cole, 'M\ L. T. ♦ilH. In Li'i' V. Smith, Exch. C.C'i, a tenant entered Into the possession of prem- ises iiii(lrr>'>j v. Liinlhif, ;] M. & (ir. 511; thoujrh the a«JK I). i:i(;t.i \ I.I.M.. ramp. 17H, scfin to lay down tlu- niU- as oiu* of law, vrt In all the* more re- c'L'iit rases upon tin- siil>j«'rt, tla- i-xlstciu'e of any lonaiify In tlie party hold- In;; oviT (bi'vond a ti-nancy at suHiTance, which exists, l>y law, In every ease where u person IujUIs over hy wronK after the determination of a rl}(htful estate, but wliW-h Imports no privity between the landlord and tenant, Co. Lltt. 't'h, '270h, 271'/), as well as the tenns npon whh-h snrh tenancy exlstti, have been considered as (piestlonw for the jnry : the construction of any written agreement, and the apiilicabllity of Its terms to a tenancy from year to year, licinii for the ileclslon of the court. See the remarks of Lord Den- nian, ('. i)., anil IJttledale, J., \ii Jn/utson v. Thf f'hurrhiriinlmM of St. I'etrr Herefitrd, 4 A. & K. '.2."» ; see al.so Jiniea v. She/ Theifnnl v. Tylfr, H y. B. US. In which case Mr. Justice WlKhtman says, '• when a party Is alloweil to hold over after tlie expiration of a tenancy by agreement, the terms on which he continues to «)ccnpy are matter of evidence rather than of law." The law. It Is apprehended, does not Infer any i>artiiruer,i\ M. & \V. lo4, pi-r Parke. IJ. ; Riij V. liijle, 11 M. & W. HI; The M(t>jnr »/ Thrtfonl V. Tijli-r.tiuprii. [The question In all the.se cases Is one, not of law for the Jud^e, but of fact for the jury. Wulkfr v. Gwlf, (> II. & N.51M; Onkleij v. Monri-, ;i II. &. C. 7iM], L. U. 1 Kx. l.V.t; L. and \. W. linthnvj Cnmp. v. HV.W. L. U. 2 C. V. 5;j;»; 30 L. .1. f. 1". 24.-i; and Coniiith v. Stuhh.t, L. K. 5 C. V. 3.14: 3'i L. J. C. I'. 202. J Hut where the i)arty so ociMipyint; pays rent accordlni; to the terms of the agreement, either i)ast or future, and thereby becomes tenant from year to year, the iufi'n'Uce is irresistible, j;i the nhseitre nf nnijlhimj Id shmr n ilifferetU undirslnndiiDj, tliat the parties Intend the occupation to continue npon such of the terms of the ai;reement as are not Inconsistent with such a tenancy; and this is probably all that was intended by Lord Kenyon In the principal case, and by Lord Ellenborou;;h in Diijfuj v. Atkinsmt. See Dne .N \ . i.i.Aivi.'i. nieiining of tlie statute was, that siuli an agreement should not opt'iate as a ti'iin; l)iit what was th«*n consultTetl its a tenancy at will has sinci- ht-cn i)rc){)erly construf(l to enure as a tenancy from year to year. Per Curiam. Itule refused. TiiKSK two cases, nlthou(;Ii loudly iinpu<;ii»'\- jiulieial decision. Nor does either of them seem inconsistent witli tlie Statute of Frauds, [ftut see tlie notes to the last case, and Wahh v. Lonmlnlr, there cited, as to tlie etl'ect of tlie Judicature Act. The Statute of Frauds) enaet.s, in sec. 1, " Tli.nt ail leases, estates, interests of freehold, «)r terms of years, or any uncertain interest of, in. to, or out of, any messuages, manors, lands, lenenjenls, or liereditanients, nnide or created by livery and srlsin only, or by parol, and not put in wrlllni; and sl;;nctl l)y the parties so nuilvini; and creat- int; the .same, or their a;;ents thereunto lawfully autiiorlselished by the decisions, is that the notice must be a half-ijp(tr'it n>>tii-p ; It must be given, as the year-book says, '• di'iiuit If dfimj nit," subject to this (|ualitl(-alion. that wiiere the rent Is payai>le on the usual feast tlays, a notice, on or before one of the feast days In the earlier half of the tenancy, to e v. Wrifjhtiiuin, 4 Esp. G; Doe v. Green, lb. 11*8; and Smitft'ii Lnndlord and Tenant, 3(19 (3rd edition). A period of six lunar months of twenty-eight days, is not half a year, nor do two such periods, as Is obvious, constitute a year, the division of time with reference to which the reasonable notice to (juit re(iuired by law is calculated. See also ('ate.ihy'g ('use, i; Kep. r>l. And where the tenancy commences on one of the fi-ast days a notice to (|uit given on the day after one of them is bad; e.y., notice given on the SOth March to (juit on the L'ltth Septemiier, Monjan v. Davies, 3 C. I'. I). '.'CO.] It has been held that the notice must end with the period at wliirh the tenancy commenced, even although the demise be in terms for one year and six months certain. Doe d. Robinson v. Dohell, 1 Q. B. 800 ; see also Doe d. Cormnall v. Mattheirn, 11 C. B. G7.'>, Berrey v. Lindley, 3 M. & Gr. 498, [.S'anJ- hill V. Franklin, L. 11. 10 C. P. 377;] but In Doe d. Buddie v. Lines, 11 Q. B. 403, where a tenant for a term commencing at Christmas, made an under- lease commencing also at Christmas, but ending at Midsummer, and the under- tenant held over and paid rent, it was held, in an ejectment brought by the lessee against the sub-lessee, that the tenancy from year to year created by tlie payment of rent, commenced at Midsummer and not at Christmas, and that the notice to quit must be given accordingly. The grounds of this decision do iiot appear very clearly in the judgment; [and see Kelly v. Patte- son, 43 L. J. C. P. 320. As to the efl'ect in determining the tenancy of a notice to quit which has been subsequently withdrawn, see Tayleur v. Wildin, L. K. 3 Ex. 303, 37 L. J. Ex. 173.] If on the creation of a tenancy from year to year the parties do not use words showing that they contemplate a tenancy for two years at least, the tenancy is determinable at the end of the first as well as of any subsequent year. Dnr d. Clarke v. Smarid(/e, 7 Q. B. 957; and as to the words which have been lield to show an intention to create a tenancv at least for two CLAYTON V. BLAKEY. 1351 years see Doe d. Chadborn v. Green, 9 A. & E. G5S ; Denn d. Jacklin v. Cart- wriyht, i East, 29 ; R. v. Chawton, 1 Q. B. 247 ; [and Doe d. J/onc^• v. Ge^^-i^ 5 Q. B. 841. . . By 46 & 47 Vict. c. 61, s. 33, the Agricultural Holdings Act, 1883, it is enacted tliat, " Wliere a half-year's notice expiring with a year of tenancy is by law necessary and sufficient for determination of a tenancy from year to year, in the case of any such tenancy under a contract of tenancy made either before or after the commencement of this Act a year's notice so expir- ing shall by virtue of this Act be necessary and sufficient for the same; unless the landlord and tenant of the holding by writing under their hands agree that this section shall not apply, in which case a lialf -year's notice shall continue to be sufficient, but nothing in this section sliall extend to a case wliere the tenant is adjudged banivrupt, or has flled a petition for a composi- tion or arrangement with his creditors." See on the construction of this knd of the corresponding section of the repealed Act of 1875, Wilkinson v. Calvert, 3 C P. D. 369 ; Barlow v. Teal, 15 Q. B. D. 501 ; 54 L. J. Q. B. 564. By s. 54, nothing in this Act shall apply to a holding that is not either wholly agriculturaror wholly pastoral, or in part agricultural and as to the residue pastoral, or in whole or in part cultivated as a marlcet garden, or to any holding let to tlie tenant during his continuance in any office, appoint- ment or employment held under the landlord. On a weekly tenancy it has been doubted whether any notice to quit is necessary; see i^r Cresswell, J., in Toivue v. Campbell, 3 C. B. 922, citmg Ilnffel V Armisted, 7 C. & P. 56. But a reasonable notice is, it is apprehended, clearly necessary; and the safest plan is to give a weelc's notice; see Jones v. Mills' 10 C. B. N. S. 788, wliere Mr. Justice Williams thouglit that the notice should be a weelv's notice, but Mr. Justice Willes was not satisfied with the correctness of that view, which was not necessary for the decision. A month's notice has been held to be the proper notice on a montlily tenancy. Beamish v. Cox, 16 L. R. Ir. 270, 458. There is no ol)jection in law to a ten- ancy determinable by a week's notice to quit and a reasonable time being allowed after the expiration of the notice for the tenant to remove his goods ; Cornish V. Stubbs, L. R. 5 C. P. 334, 39 L. J. C. P. 202, followed by Mellor v. Watkins, L. R. 9 Q. B. 400.] There is no doubt that a tenancy at will, strictly speaking, may still be created; Ball v. CuUimore, 5 Tyrwh. 753; [Marquis of Camden v. Batterbarij, 5 C B N. S 808.] It may be so by express words, Richardson v. Langridge, 4 Tauiit. 128 ; Cudlip v. Rundle, 4 Mod. 9 ; R. v. Fillongley, Cald. 569. Doe d. Basto V. Cox, 11 Q. B. 122, 17 L. J. Q. B. 3. A person who holds rent-free by the permission of the owner is a tenant at will. R- v. Collett, Russ. & Ry. C. C. 498 ; ex. (jr., a minister placed in possession by trustees for the congregation. Doex. Jones, 10 B. & C. 718; vide tamen Wilkinson v. Malin, 2 Tyrwh. 544. So [was] a person entering under an agreement to purchase, or for a lease, and who [liad] not paid rent. See Becjnart v. Porter, 7 Bing. 451 ; Doe v. Miller, 5 C. & P. 595; Riseleij v. R'jle, 11 M. & W. 16; IPollen v. Brewer, 7 C. B. N. S. 371] ; although he [had] paid interest. Doe d. Tomes v. Chamberlain, 5 M. & W. 14. See Howard v. Shaw, 8 M. & W. 119. On payment of rent, however, he [became] tenant from year to year. Mann v. Lovejoy, R. & M. 355. See Sa^inders v. Musgrove, 6 B. & C. 524; Chapman v. Towner, 6 M. & W. 100. Provided that he paid it with reference to a yearly tenancy; for as Baron Parke observes, in Braithwaite v. Hitdimck, 10 M & W " although the law is clearly settled that where there has been l;5;V2 CLAYTON V. HLAKKV. an ayrccnipnt for a loaso, and an occupation without i>ayinont of rmt, tho oc«'iii)i«'r is a inert' tenant at will, yet it lias Ix-en lu-ltl tlial if hv sulisiMnicutly pays rent under that aijreenient lie tiierel»y lieeonies tenant from year to year. I'ayment of rent, indeed, must l)e understood to mean pnyiiunt irit/t n/fn-ucf tu a yfurlij hohUmj ; for in /iirhartUtm v. Lnnijrithjf, a party who liad paid rent under an aifreenient of tlds description, i)ut had not paid it witli reference to a year, or any alitpiot part of a year, was held, nevertheless, to he a ten:iiit at will oidy." .See also tlie jud<;ment f)f the same learne»«■ d. Hull v. W'liiitl, H M. & ^^^. MT; and the reason is, because the payment of rent by tlio occn|)ier witli n-ference to a yearly )ioIdin<;, and the receipt of it by the land- lord, [was] evidence of the intention of the parties that a yearly tenancy should l)e created. So where a party haviii;: enlentl nndi-r a void lease ;;ranted by A. A H. paid thcin rent, and continued in possession after an assi<;ninont of hlH Interest by B. to A., and paid rent to A. with notice of the assi<;nment. this was held to be evidence of a new contract of t«'nancy from year to year with A. alone: Ardm v. SiiHinin. U q. H. M2. It is however only evidence: />«/■ d. L'lnl v. (V(i;/o, tJ ('. H. '.is ; anil altlii>iii,di in the absence of other circumstances, showing; a contrary intention, it wouhl l)e det'ined conclusivi-, liiahnp v. Jlinrnril, 2 l\. &. ('. UMl, yet when" it ajipears the parties do not intend it to have that etlect, the tenancy at will remains unad'ected by it. Tims In the ca.se «)f Ihn- {\. Haslo v. Cnr, 11 ^^. B. 122, 17 L. J. Q. B. .1, where ejectment was brouirht by 2 B. K. & M . mort- !;a<;ees, aj^ainst the defendant, mort;;a<;or, the mort;;ai;e deeil contained tlie following; clause, '• And the said \V. ("ox liereby agrees to become tenant to tlie said B. K. & M. henceforth dunu<; their will and pleasure, at and after the rate of 2'!/. fl.v. per year, payable (piarterly, on the isth .Sejitember. isth of December, Isth of March, and isth of June:" the defendant having made default in payment of tlie insfalnu'uts of the mortjraire money and rent, the lessors distrained for four (|uarters" n-nt ; afterwards they ijavc a week's notice to qtut and brought ejectment. It was contentleil on behalf of the defentlant that he was, under the circumstances, tenant from year to year; and that a six months' notice was re, a tenancy at will l)etween a morti;aiiee and niortiiaiior was also liehl to exist notwithstanding tlie reservation of a yearl}' rent; see also Puihorn v. Souster, 8 Exch. 7<>;i : In re Stnuid. « C. B. .'i02 : Dne d. Prior v. Onf/ley, 10 C. B. 25. TTie (Juardians of the Woodhridije Union v. The Guardians of Colneis, 13 Q. B. 269; West v. Fritrhe. W Kxch. 2ir.; [and Smith V. Widlake, 3 C. P. D. 10. It is important to observe that the law will not imply the existence of a tenancy from year to year from the fact of payment, after entry upon the land, of suras of money described as rent, if on looking at the whole of the circumstances of the case it apiiears not to have been the intention of the parties to create the relation of landlonl and tenant. This rule is well illus- trated by the case of The Manjuis of Camden v. Batterbury, 5 C. B. N. S. H08. In this case a building agreement under seal had been made between the owner of a piece of lanil and a builder. This agreement provided for the granting of future leases, and also contained a covenant on tlie part of the builder that be would pay certain rents when some buildings should be erected CLAYTON V. BLAKEY. 1353 on the land, and leases of them should be granted, and that until the grant- ing of the leases he would pay such yearlj^ sums or rents as would become payable if leases had been actually granted. The contract also contained a proviso for re-entry in case any portion of the yearly sums or rents should be unpaid for twenty-one days. The builder assigned his interest under the agreement to a third person, Avho entered on tlie land, erected some buildings on it, paid the stipulated yearly sums for some time, and then assigned his interest to another. An action for use and occupation was afterwards brought, in respect of a portion of the land, by the owner of the property against the assignee of the builder. Under these circumstances the court was of opinion that neither the builder nor his assignee, had acquired any estate in the premises under the building agreement, and that no tenancy from year to year had arisen. Mr. Justice Williams, after stating that he thought that no tenancy from year to year subsisted between the plaintiff and the defendant, proceeded as follows : " It seems to me to be clear that the building articles carefully exclude the acquisition of any estate by Elliott (the l)uilder). It would perhaps be diffi- cult to say that he did not become tenant at will : but beyond a tenancy at will, he clearly had no estate. What, then, was Elliott's position? He had under the articles a right to enter upon the land and devote it to the purposes thereby contemplated, and for this right he was to pay an annual sum, not as rent, but as a collateral payment until the leases should be granted, and an estate thereby acquired. It is plain, therefore, that the sum stipulated to be paid by Elliott not being payable as rent for the occupation of tlie land, but merel}' a stipulated sum payaljle by virtue of the agreement, so far as he was concerned there is no ground for saying that he ever paid rent in the sen.se of creating a tenancy. But it is contended that, when the defendant came in, the payment was to be considered as rent paid for the enjoyment of the land, and so a tenancy from year to year was created. It seems to me that there is no ground whatever for implying a tenancy from year to year in the defendant. Where a tenancy from year to year is implied from periodical payments, it is because you cannot account for the pay^nent of the money upon any other hypothesis than that it is paid for rent, and hence the law implies a tenancy from year to year. But here there is no moi*e reason for implying a tenancy from year to year after the defenthint came in than there was when Elliott held the land. The defendant became liable to pay the money because Elliott had assigned the agreement to him, and he had agreed Avith Elliott to make the payments. . . . The payments which were made bj' him were not made in discharge of any original liability in himself, but in discharge of the liability of Elliott, against which the defendant as assignee was bound to indemnify Elliott. It is said that the defendant held upon tei'ms different from those under which Elliott held. But that leaves the question precisely as it was before. Can you imply from the payment of the money by the defendant, that he meant to become tenant from year to year to the plaintiff"? Certainly not. The payment being due to the liability of Elliott under the agreement, there is no more reason for inferring that the defendant became tenant from year to year than that Elliott became such. Then it is said, that if the defendant was tenant at will only, inasmuch as he continued tenant for a portion of the j'car, he ought to pay rent pro rata. Be it tliat he was tenant at will, he was not tenant at will on the terms of paying so nuich a year rent. The amount still remains a collateral sum, for which Elliott, and Elliott alone, was, in my opinion, liable under his agreement with the plaintiff": " and see Adams v. Hagger, 4 Q. B. D. 480.] 1:554 CLAYTON V. IJLAKKY. It hius already been shown in the notes to Keevh v. Ilnll, tliat tliere are cer- tain cases in whicli a niort;;a,i;<)r in possession beconu's tenant at will to the niortj;(af;ee. A vendor who remains in possession after liavin<; conveyed, is not tenant 't will to the vendee. Teic v. Jones, i;5 M. & W. la, because lie is not in p<. ... -sion necessarily by the consent of the vendee; but it may per- haps l)e laid down, that wherever a person is in possession of land, in which he has no freeliold estate, nor tenancy for any certain term, and which he ncverllicless holds l)y the consent of the true owner, that i)erson is tenant at will, and as such is lial)le to pay for his occupation, if benellcial; llihs v. /Ur/Ktrdson, I) A. & K. HV.i ; Iloii-nnl v. Shnin, 8 M. & VV. UD; unless there be a stipulation that he shall occupy rent-free. ?>ce per Alderson, B., in llmrnrd V. Shaw, and Wintprlmttom v. Ingham, 7 Q. B. Gil. in which case it was held that a party remaininj; in possession under a contract for purchase which ultimately fails for want of title is not liable to pay for such occuj)ati()n, thoutch it be found to be benellcial, up to the time of the detenninatiiJii of the contract; — smix if he remain after such determination. Ilmrard v. Shmo, supra. On account of tlie peculiar uri^in of !i tenancy from year to year, ami its beinir still in contemplation of law a tenancy at trill, it seems to have been thought by three judj;es, in /)(»■ v. HV//.s, 10 A. & E. 427, that it would be l)ossible to put an end to it by the parol consent of botli parties, such parol consent not operating as a disrlaimrr, which cannot be by mere words, [Hunt V. Allijijixl, 10 C. B. N. S. 253; Jones v. .y/ills, ib., 7H8], nor a.s a surrendor, which would be opposed to the Statute of Frauds, but as a dt'lt'rminatinn of the icill of both parties. But until determined, the tenancy from year to year is a term which will pass to the personal re|)resentative, Di"' d. Ilnll v. Wood, 14 M. & W. (iM2. So tenant from year to year, demising from year to year, or for a term of years, has a reversion which enables him to distrain, Curtis v. Wheeler, Moo. & M. 4'.);?; and see Oiley v. James, 13 M. & W. 209, where tenant from year to year havini? demised for thirty-four years to the plaintifi', who sub-let for eiijhteen years and a (juarter to the defendant, ajjainst whom he declared in covenant for non-repair, pursuant to the terms of the sub-lease, it was held tliat tile plaintirt', if he could not in pleadinu describe his interest as an abso- lute term for thirty-four years (which however semhle he could after its expiration), miij:ht clearly allege it to be a tenancy for thirty-four years, " provided the tenancy from year to year should so lonp; continue." [Formerly] if a person who had createil a tenancy at will became insolvent, a vestinj;: order [under 1 & 2 Vict. c. 110, ss. 37 & 45, repealed by 24 & 25 Vict, c. 134, s. 230] with knowledge thereof by the tenant, was a determination of the tenancy, Doe d. Davies v. Thomas, 6 Exch. 854. [Qu(vre whether the like rule obtains under the analogous sections of the present Bankniptcy Act, 1883, see ss. 54 and 55.] But the notice to the tenant [has been thought to be] essential, as on the other hand a transfer by the tenant at will of his interest to a third person will not determine the tenancy unless notice of it is given to tlie landlord. Carpenter v. Colins, Yelv. 73; and Pinhorn v. Souster, 8 Exch. 763; [sed qiioere}. CLAYTON V. BLAKEY. 1355 1. The Statute of Frauds. — The Statute of Frauds, 29 Car. II., cliap. 3, provided that '"all leases, estates, interests of free- hokl, or terms of years . . . made or created by livery and seisin only, or by parol, and not put in writing and signed by the parties so making or creating the same, or their agents thereunto lawfully authorized by writing shall have the force and effect of leases or estates at will only, . . . except, nevertheless, all leases not exceecUng the term of three years from the mak- ing thereof, etc. 2. In what states re-enacted. — The English Statute was in substance re-enacted in Geon/ia, Act of Feb. 25, 1784 ; Mari/- land, Kiltv, p. 242 ; Alexander's British Statutes in force in Maryland, p. 508 ; South Carolina, R. S. 1872, ch. 93, sec. 5, ch. 98, sees. 1-4; Massachusetts, until April 1, 1863; Michigan, until Aug. 1, 1838 ; Missouri, until March 15, 1845 ; Neiv Jersey, until Jan. 1, 1875; and Vermont, until July 1,1840; but is nowhere now in force. With this change in legislation the im- portance of Rigge V. Bell and Clayton v. Blakey as authorities is greatly decreased, especially as in nearly all the states no interest in land for a longer period than one year can be created by an oral contract. 8. American statutes. — Every state and territory has a stat- ute on the subject, prescribing when a contract, relating to the transfer of an interest in land, must be evidenced by writing, but no two of them are alike. Many of them declare that every contract for the sale of any interest in land except a lease for a term not longer than one year is void, unless in writing; Alabama, Code, sec. 1733 ; Col- orado, Gen. Stats, sec. 1517 ; Georgia, Code, sec. 1950 ; :Michi- gan, Howell's Ant. Stats., sec. 6179 ; Minnesota, Stats, p. 543 ; Nebraska, Com. Stats, p. 443 ; Nevada, Gen. Stats., sec. 2626 ; Wyoming, R. S. sec. 1249. Others enact that no action shall he brought to charge any person upon any oral lease for a longer period than one year ; Arizona, Code, sec. 2030; Arkansas, Dig. of Stats, sees. 3371- 81 ; Connecticut, Gen. Stats, sec. 1366 ; Florida, Dig. of Laws, p. 208 ; Illinois, R. S. p. 740 ; Kentucky, Gen. Stats, p. 296 ; Missouri, R. S. sec. 2513 ; Ohio, R. S. sec. 4199 ; Rhode Island, Stats, p. 552; Tennessee, Code, sees. 2423; Virginia, Code, sec. 2840. l^oG CLAYTON V. HLAKKY. Still others simply state that a lease for a longer period than one year mtiat be In writintj ; California, Code, see. ItJ'Jo. In a few instances it is in the form of a provision that an estate for a longer period than one year cannot be created or transferred except by an instrument in writing ; Dakota, Code, sec. 322; Kansas, Com. Laws, sec. 2819; Massachusetts, 1*. S, J). T-52 ; Mississippi, Code, sec. 1188; Montana, Com. Stats, p. 651 ; New York, R. S. p. 2326. Delaware lias the ju'culiar wording, -no di'Miisc, excei)t it Ixj by deed, shall be effectual for a longer term than one year;" Laws of Del. p. 707. loua j)rescribes that no evidence is competent to prove a demise for a longer period than one year unless it be in writ- ing ; McClain's Annotated Stats, sec. 3663, 64. The states that have the three-year period are New Jersey, R. S. p. 444 ; Pennsylvania, Purden's Dig. p. 830; Indiana, R. S. see. 41*04 ; and North Carolina, Code, sec. 1743. in Maine, Massacluisetts, Mi.ssouri, New Hampshire, Ohio and Vermont, there is no exception; Maine, R. S. p. 838; Massachusetts, P. S. p. 732; Missouri, R. S. sec. 2513; New Hampshire, G. S. p. 407 : Ohio, R. S. sec. 4r.>9; Vermont, R. S. sec. 1022. In Louisiana leases may be made by either written or verl»al contract, but the transfer of title of real estate must be evi- denced by writing; Code, p. 372; Rachel v. Pearsall, 8 Mart. La. 702. 4. "When estate at will created. — In a few states and terri- tories it is expressly stated that an oral lease for a longer period than the one specified shall create an estate at will. Among them are Arkansas, Dakota, ^lassachusetts, Missouri, Pennsyl- vania, and Vermont. Most of the statutes are silent on this point, but there seems no doubt that if the lessee is put in pos- session he has everywhere an estate at will, governed by the ordinary rules applicable to such holdings. 5. Presumptively nothing but duration of lease affected by stat- ute. — Presumptively the amount of rent to be paid, the time of payment, etc., — in fact, everything except the duration, — is as agreed in the oral contract ; Schuyler v. Leggett, 2 Cow. 660 ; People V. Rickert, 8 Cow. 227 ; Edwards v. demons, 24 Wend. 480 ; Hollis v. Pool, 3 Met. 350 ; Creech v. Crockett, 5 Cush. 133 ; Currier v. Barker, 2 Gray 224 ; Norris v. MorriU, CLAYTON V. BLAKEY. 1357 40 N. H. 395 ; Lockwood v. Lockwood, 22 Conn. 425 ; Crom- melin v. Thiess, 31 Ala. 412; Craske v. Christian Union, 17 Hun 319; Reeder w. Sayre, 70 N. Y. 180; Nash v. Berkmeir, 83 Ind. 536. This presumption, however, may be rebutted by the acts of the parties ; Prindle v. Anderson, 19 Wend. 391. 6. Expansion of estate at will. — In those states where the statute excepts leases for a year or greater period, Clayton v. Blakey is generally followed, and a lease at will, arising from non-compliance with the statute, may be expanded by the acts of the parties into one from month to month or year to year, their acts being construed just as if no oral lease had existed ; McDowell V. Simpson, 3 Watts 135 ; People v. Rickert, 8 Cow. 227 ; Drake v. Newton, 3 Zab. Ill ; Ridgley v. Stillwell, 28 Mo. 400 ; Lockwood v. Lockwood, 22 Conn. 425 ; Grant v. Ramsey, 7 Ohio St. 157 ; Craske v. Christian Union, 17 Hun 319 ; Reeder V. Sayre, 70 N. Y. 180 ; Nash v. Berkmeir, 83 Ind. 536 ; Koplitz V. Gustavus, 48 Wis. 48 ; Thurber v. Dwyer, 10 R. I. 355. In most of those states, however, where there is no exception, it is held that such a lease at will cannot be thus expanded ; Ellis V. Paige, 1 Pick. 45 ; Hollis v. Pool, 3 Met. 350 ; Kelly v. Waite, 12 Met. 300; Davis v. Thompson, 13 Me. 214; Whitney V. Swett, 22 N. H. 10. There seems no sound reason for such decision, and in Vermont, where such a statute exists, the courts have adopted the general rule ; Barlow v. Wainwright, 22 Vt. 88. The court remark : " The words of the statute are satisfied by holding that the estate created in the present case was in the first instance an estate at will, and only an estate at will, and yet that it enured like other estates at will and had the incidents common to an estate at will, one of which is its con- vertability into a holding from year to year by the payment of rent." 7. Surrender. — As regards the necessity of a writing, the same rules apply to the surrender of a lease as to its creation, unless the surrender be by operation of law ; Bailey v. Wells, 8 Wis. 141 ; Rowan v. Lytic, 11 Wend. 621 ; Schieffelin v. Car- penter, 15 Wend. 400 ; Hesseltine v. Seavey, 16 Me. 212 ; M'Kinney v. Reader, 7 Watts 123; Van Dekar v. Reeves, 40 Hun 430". 8. Construction of various statutes. — When the statute de- clares that a parol contract is "void," the courts have held that " void " means voidable, and the defence is waived if not 1858 CLAYTON V. P.LAKICY. pleaded; Cooper v. Ilonisln-, 71 Ala. 02; Comer y. Sheehaii, 74 Ala. 452. The same has been lield, as between the {)arties, in Iowa, where the lease is re(|uired to be proved in writing; Mur- dyke v. Woolen Mills, 5 N. \V. liep. 72."). An oral lease for three years, with a right of the lessor to terminate it at any time upon four months' notice was held void under the Minnesota Statute as being for a term "exceeding one year;" Evans v. Winona Lumber Co., 30 Minn. 515. The wording of the different American statutes is so different that it is not safe to rely upon the decisions under one as authorities under another, without very careful comparisou. GEORGE V. CLAGETT. TBINITY. — 31 G. 3. [reported 7 t. r. 359.] If a factor sells goods as his own, and the buyer knows nothing of any principal, the buyer may set off any demand he rnay have on the factor against the demand for the goods made by the principal. On the trial of this action, which was assumpsit for goods sold and delivered to the amount of 14:21. Is. 9d., before Lord Kenyon at the Guildhall Sittings, the case appeared to be this: The plaintiff, a clothier at Frome, employed Messrs. Rich and Heapy in London, Blackwellhall factors, as his factors under a commission del credere, who, besides acting as factors, bought and sold great quantities of woollen cloths on their own account, all their business being carried on at one warehouse. The factors sold at twelve months' credit, and were allowed two and a half per cent. On the 30th of September, 1795, Delvalle, a tobacco broker, and who had been in habits of dealing with the defendants, bought several parcels of tobacco of them, and gave them in payment a bill of exchange for 1198^. 16.S'., drawn by one Fisher on Rich and Heapy, on the 24th of September, 1795, payable two months after date to J. Stafford, who indorsed to Delvalle, who indorsed it over to the defendants, it having been previously accepted by Rich and Heapy. On the 12th of October, 1795, the defendants bought a quantity of woollen cloths for exportation of Rich and Heapy, amounting to 1237Z. 18s. 3^. at twelve months' credit ; the goods were taken out of one general mass in Rich and Heapy 's Warehouse ; Rich and Heapy made out a bill of parcels 1359 13G0 GEORGE V. CLAGETT. for the whole in their own nunies, unci the detune hints did nut know that any part of tlie goods belonged to the i)hiintiff. Kurly in November, 171>5, Kieli and lleapy became bankrnpts; and afterwards, on the 20th of the same month, the ])lainlitT gave the defendants notice not to pay Rich and Ileapy for certain ck)ths specified, part of the above, amounting to 142/. l.s. 0./., they having been his property, and having been sohl on liis account by Mich and lleapy on commission. The (picstion was, Whether the defendants were or were not entitled to set off their demand agiiinsi Rich and Heapy on the bill of excliange, on the ground that the derendants dealt with them as ])rincipals; Lord Kenyon was of opinion that they were, as well on [irinciple as on the authority of Ralxnie v. Williams (a) ; and a verdict was accordingly found for the defendants. A rule was obtained, calling on the defendants to show cause why the verdict should not be set aside, and a new trial had, on the authority of the case of fJstcoft v. Milwanl, Co. I>ank. Laws, 23(;. Gibbs and Giles were now to have shown cause against that rule: but Erskine and Walton were called upon to supj)ort it. They relied on tlie cases of Scrimxhire v. Ahierton (^b}, and PJsfcott v. Milwanl, as reported in Co. Hank. Laws, to show tiiat under the circumstances of this case the principal might resort to the buyer at once, he having given notice before actual payment by the defendants to the factors. (a) Rabone, jun.,v. Williams, M.\dx. goods in his own name, the person Sittinirs after Mich. 1785; which was contracting with him has a right to thus stated : — Action for the value consider liim to all intents and pur- of goods sold to the defendant by poses as tlie principal; and though means of the house of Kabone, sen., the real principal may appear, and and Co., at Exeter, factors to the bring an action upon that contract plaintiff. The defendant, the vendee against the purchaser i>f the goods, of the goods, set ofl" a debt due to yet that purchaser may set oil" any him from Rabone and Co., the fac- claim he may have against the factor tors, upon another account, alleging in answer to the demand of the prin- that the plaintiff had not appeared at cipal. This has been long settled." all in the transaction, and that credit Upon this opinion, the rest, being a had l)een given by Kabone and Co., mere matter of account, was referred, the factors, and not by the plaintiff. In Ba'/ley v. Morley, London Sittings Lord Mansjii'ld, Ch. J. — " Where a after Mich. 1788. Lord A>h?/oh recog- f actor, dealing for a principal, but nised the law of this case, concealing that principal, delivers {h) 2 Str. 1182. GEORGE V. CLAGETT. 1361 But a more accurate note of the case of Estcott v. Milward (a) having now been obtained from Mr. J. Bullei\ before whom that case was tried and read: The Court were clearly of opinion that the directions given by the learned judge on the trial of this cause were right, and that this case was not distinguishable from that of Rahorie v. Williams. Therefore they Discharged the rule (6). [The effect of the Judicature Act, 1873 (3G & 37 Vict. c. 66), has been very much to enlarge the rights of defendants as regards set-off. A further reference to the provisions of that Act will be found at the conclusion of this note.] The decision in the principal case, however, too clearly results from principles of natural equity to need much discussion or Explanation. It has ever since been followed. See Cnates v. Letves, 1 Camp. 444 ; Black- burn V. Scholes, 2 Camp. 343; Carr v. Hinchliff, 4 B. & C. 551; Taylor v. Kymer, 3 B & Ad. 334; Bastable v. Poole, 5 Tyrwh. Ill; Purchell v. Salter, 9 Dowl. 517; S. C. 1 Q. B. 197; [ Wilson v. Gabriel, 4 B. & S. 243; Kaltenbach («) London Sittings after Mich. 1783. Action for goods sold. The goods were sold by Farrar, a corn factor, who gave no account of the sale to tlie plaintiff, nor made any entry of it in his books. He was in- solvent for some time before, and avoided all dealing for a month, had desired that there might be no buy- ing in his name, and had not dealt with the defendant for a year before, but was then in his debt. Tliere was a verdict for the plaintiff on the ground of fraud. (6) The same point was also ruled by Lord Kenyan in Stracoy, Ross, and others v. Deey, London Sittings after Midi. 1789. As.sumpsit for goods sold ; pleas non assumpsit and a set- off. The plaintiffs jointly carried on trade as grocers, but Ross was the only ostensilile person engaged in the business, and appeared to tlie world as solely interested therein. By the terms of the partnership, Ross was to be the apparent trader, and the others were to remain mere sleeping partners. The defendant was a pol- icy-broiler, and being indebted for grocei-y (as he conceived) to Ross, he effected insurances and paid pre- miums on account of Ross solely, to the amount of his debt, under the idea that one demand might be set off against the other. Ross's affairs being much deranged, payment qt the money due from the defendant was demanded by the firm, and was re- fused by him upon the ground of his having been deceived by the other partners keeping back, and holding out Ross as the only person con- cerned in the trade. Lord Kenyan, Cli. J., was of opinion, tliat as the defendant had a good defence by way of set-off as against Ross, and had been by the conduct of the plaintiffs led to believe that Ross was the only person he contracted with, they could not now pull off the mask and claim payment of debts supposed to be due to Ross alone, without allowing the parties the same advantages and equi- ties in their defence tliat they would have had in actions brought by Ross. — Verdict for the defendant. [S. C. 2 Esp. 469 n.] 1362 GEORGK V. CLAGETT. V. Lfirin, 10 App. Cas. 017; .'>."> L. J. Ch. 58]; and Sims v. Bond, o B. & A<1. ;50;i, wliero the nili" is thus expressed by the Lord C. J., delivering tlie juil};- n)eiit of the court: — 'It is a \veU-estal)lisiied rule of law, tliat wliere a contract, not under seal, is made with an a^ent in liis own name for an undisclosed principal, eitiier the ajjent, or the priucipal, may sue upon it; the defendant, in tlie latter case, l)eii)i; entitled to be placed in the same situation at the time of the disclosure of tlie real principal, as if the ajjent had been the contractinj; party." (AV/; further on this subject in thf notes to Paterson v. Ganddseijui, .itlUison v. (iitndaseipii, aiul Thomson v. Dmenjiort, ]>ost.) However, the latter part of this rule only a|)|)lics where the party contract- ini; has not the means of knowing that the party with whom he contracts is but an aiicnt. If he have the means of knowini;, and thouiih he nuiy not be exi)ressly told, still must be supposed to have known, that he was dealing not with a principal, Init with an a;;cnt, tiie reason of the al)ove rule ceases, and tneii ressinte ratione, ressnt lex. Thus in Bnnmj v. Corrie, 2 H. & A. l.?7. Coles and Co., who were l)rokcrs, and also m^'rchants, sold to Corrie and Co., in their own names, sugars belonginj^ to Barini; Hrotliers and Co., who broujjht this action for their price. The true nature of the contract was entered l)y Coles and Co. in their broker's book, which the defendants nni^ht, if they pleased, have seen. Nor bad Coles and Co. the possession of the sugars, which were lyintr in the \V. I. Docks, whence, by tlie usasje of the docks, they could not iiave been taken without the order of the plaintiMs, wiiose princi|)al clerk siirned tin- dciivcry order. Under tiiese circumstances, the court held that the defendants had no riirht to set oil" ayainst tlie plaintitts' demand for the price of the {joods, a debt due to them from Coles and Co. " It is to be observed," said Bayley, J., " that the plaintiffs did not trust the brokers with either the muniments of title, or the possession of the goods, as was done in both the cases of Rahone v. Williams, and Geovfje v. CUujett. There is another circumstance by which the defendants might easily have ascertained whether Coles and Co. acted as brokers or not. According to the usual course of dealing, a broker is Ixmnd to put down in his book an account of the sales made by him in that cajiacity, so that if the defendants had asked to sec the book, they would instantly have iliscovered whether Coles and Co. acted as brokers or not. I therefore think, that the plaintiffs did not by their conduct enable Coles and Co. to hold themselves out as the proprietors of these goods so as to impose on the defendants ; that the def entlants were not imposed on ; and even supposing that they were, they must have been guilty of gross negligence. ... I cannot think that the defendants believed, when they bought the goods, that Coles and Co. sold them on their own account; and if not, they can have no defence to this action." See fui'ther Maanss v. Henderson, 1 East, .335; Moore v. Clementson, 2 Camp. 22. [Borries v. Imperial Ottoman Bank, L. R. 9 C. P. 38, 43 L. J. C. P. 3, and Cooke v. Eshelhy, H. L., 15th March, 1887, where the defendants, though they dealt with the broker as principal, had no belief one Avay or the other whether he was acting for himself or for another person in the transaction, and were therefore debarred from setting off suras due to them from the broker against the claim of the principal.] In the case of Warner v. M'Kay, 1 M. & W. 595, it was held by the Court of Exchequer, that a purchaser might set off payments made to a factor, if he believed that the factor had a right to sell, and did sell, to repay himself advances; but see the observations on this case in the judgment in Smart v. Sandars, 3 C. B. 399. and per Cresswell, J., in Fish v. Kempton, 7 C. B. 094, GEOEGE V. CLAGETT. 1363 where it was held that knowledge, by the purchaser of goods, that the vendor sold them as factor disentitled him to set off a debt due by such factor in an action by the principal. The set-off, however, to be available, need not exist at the time of the sale : if it arise before notice of the real ownership it is sufficient. See the observations of Parke, B., in Salter v. Purchell, 1 Q. B. 213; and in Stracey, Eoss, and others v. Deey, ante, p. 132, note (c), it will be seen that the debt Avhich was set off became due after the sale of the goods, to the partner who was allowed to act as apparent owner of the goods sold. [In order to make a valid defence within the rule laid down in the principal case, it is necessary to show, that the contract ^vas made witli a person whom the plaintiff had intrusted with the possession of the goods ; that that person sold them as his own in liis own name, as principal, with the authority of the plaintiff; that the defendant dealt with him as, and believed him to be, the principal in the transaction ; and that before the defendant was undeceived in that respect, the set-off accrued. See the judgment of the Court of Common Pleas in Semenza v. BrinsJey, 18 C. B. N. S. 467, which was decided on demurrer. But constructive authority is sufficient; therefore if the goods be intrusted to a factor, wiio has by custom an implied authority to sell in his own name, the right of set-off will not be defeated by showing a private prohibition from the principal to the factor to sell in his own name. Ex parte Dixon, 4 Ch. D. 133. Under the late system of pleading, means of knowledge need not have been expressly negatived in the plea, Borries v. The Imperial Ottoman Bank, L. R. 9 C. P. 38, 43 L. J. C. P. 3. And where the purchaser's agent knows that the seller is only an agent, there can be no set-off, although the purchaser himself is not informed of the real facts. Dresser v. Norwood, 17 C. B. N. S. 466. In Turner v. Thomas, L. R. 6 C. P. 610, it was sought to extend the princi- ple of George v. Glagett to a case in which the claim was for unliquidated damages. The action was by seller against buyer upon a contract for the purchase of goods to arrive, and the agent, with whom the defendant had dealt in the belief that he was the owner of the goods sold, having become bankrupt, the defendant sought to avail himself against the principal of a mutual credit with the agent. The court disallowed the set-off on the ground that it could not be maintained against a claim for unliquidated damages, and that the defence set up was not a defence against the factor, but only a special mode of settling account with his assignees upon his bankruptcy, and consequently did not come within the principle of George v. Clagett. Query as to the effect of Order XIX. Rule 3, under the Judicature Acts upon cases of this class.] Where the goods are sold by an agent as his OAvn, the buyer knowing noth- ing at the time of his principal, and the action is brought in the name of the agent, the defendant [could not before the introduction of equitable defences have] set off [at law] a debt due to him from the principal. For in this case there is no concealment which can be in any way injurious to the buyer, nor is his position at all altered by the mode in which the action is brought : and the statutes of set-off only apply to cases in which the mutual debts are due from the plaintiff, and fi-om the defendant: see the notes to Thomson v. Davenport, post, and the judgment of the court in Isberg v. Boicden, 8 Exch. 852. [Still courts of law have frequently allow'ed pleas of set-off on equitable grounds in cases subsequent to Isberg v. Bowden, on allegations similar to those alleged in the plea in that case, viz., that the plaintiff was suing as a loG4 UEOUGE V. CLAUETT. bare trustee for a third person ai;a'mst whom the defendant hail a set-off, and had no beneficial intere«it himself in the snni sou^iit tt) he recovered (see Agra and Masterman's linnk v. Leighttni, L. U. 2 Ex. at]; Thornton v. Mny- nard, L. K. 10 C. V. 0'jr>, 44 L. J. C. P. 382; IJoltnea v. Tuttun, 5 E. i H. 65, and Cochrane v. Green, U C. B. N. S. 448; 28 L. J. C. 1*. 3). thus practically recurrinfj to the view taken in earlier decisions at law, see Bottouiley v. Brook, 1 T. R. 621; liitdye v. liirch, ibid. 622. It would seem, however, that the rule of e<|uity has Ijeen stated too broadly in some of the cases at law, notably in Cochrane v. Cnen, 9 C. B. N. S. 448; 30 L. J. V. V 1)7. . For to found such an etjuity it is not enough, as appears to have been assumed in that case, to show that the plaiiititl' is a bare trustee; tliere must lie inde- pendent ;;rounds fjivlnj; the Court of Etpiity jurisdiction and callini; for its intervention to eidarjie the statutable rijjht of set-oil". See the Judi;ment of Jessel, M. U., in h'x parte Xtii/ee, L. K. 20 K«i. 29.] Similar In i>rinclplc to the decision In (I'ronf v. Claijett Is that of StarkirooMrr v. Cass, L. l{. .". Q. B. CSC]. The dt'cision in Starkirond v. Dnnn, besides l)elni; obviously just. Is in sub- stance consistent with the laniiuaye of the statutes of .set-off (2 (Jeo. 2, c. 22, and 8 (Jeo. 2, c. 24), which jjlve the statutory rljjht of set-otV in cases in which there are mutual debts " beticeen the plaintiff and defendant." See the juilj^meut in Isbenj v. Hoirden, uhi sup. [The provisions of t!u> ronunon Luw I'rocedure .\ct. IHC.O (23 & 24 Vict. e. 12te of that company part due, l>aying for it an amount nHu;h less than the face, intending to use it for the i)ayment of the goods, and ordered the goods, promising to pay cash for them. The company had previously sold all its goods of this nature to the plaintilY, but he agreed with the company to lill the order and allow the company a commission therefor. The company delivered the plaintiff's goods to the defendants with a bill of lading for the same in the company's name, and the defendants supposed the goods were the company's. Defendants obtained possession without paying cash, on the pretext that they wished before paying for them to oljtain their pay from the party for whom they were purchasing. Later, when payment was demanded, defendants tendered the company's overdue note in part pay- ment. The learned justice delivering the opinion of the Court of Common Pleas says : -" The off-set was not one arising out of any transactions between the defendants and the Renz Hard- ware Company, but the defendants, after they had obtained an order for a certain quantity of an article which that company manufactured, and from whom they meant to purchase it, went and bought the depreciated paper of the company at the enormous discount of 79 per cent., that they might make 8367 out of an order for goods for which they were to pay but $522. . . . But notwithstanding these circumstances, I think upon the authori- ties that if the defendants had the right to assume when they purchased the goods that the company Avas the owner of them. GEORGE V. CLAGETT. 1367 they had the right in this action to set-off the note a valid demand which they had against the company." This is cer- tainly carrying the doctrine of George v. Clagett far further than any other d(^cision either in England or America has gone, and the result reached seems harsh and inequitable. It is certainly a perversion of the spirit of the rule of George v. Clagett, which ^was to protect an innocent outsider whom a princij)al had mis- led by conferring apparent ownership on his factor or agent. It was not intended to be used as a shield, so as to make every right of the real owner subordinate to the right of the third party dealing with such agent, to gain every possible advantage from the transaction. Yet it may be that this decision is but a logical extension of doctrine of the undisclosed principal, that the principal is affected with all the attendant burdens in the transaction, and is chargeable with everything that could be charged against the agent. Principle of George v. Clagett followed in America. — That the general principle of law enunciated in George v. Clagett pre- vails in America, is axiomatic. It is only in the application of the rule to special cases that American decisions sometimes come into seeming conflict. That a purchaser from an agent or factor, who has apparent ownership) and possession of goods really belonging to an unknown principal, with the latter's as- sent, buying in ignorance of the real ownership and without circumstances to awaken his inquiry as to it, may set-off against the demand of the principal any claims or demands he has against such factor or agent, is established by the following cases : Gardner v. Allen, 6 Ala. 187 ; Stinon v. Gould, 74 111. 80; Traubt;. Milliken, 57 Me. 63; Baltimore Tar Man. Co. v. Fletcher, 17 Rep. 557 (Court of Appeals of Maryland) ; Hun- tington V. Knox, 7 Cush. 371 ; Locke v. Lewis, 124 Mass. 1 ; Dean v. Plunkett, 136 Mass. 195 ; Hickman v. Craig, 6 Mo. Ap. 583 ; Pratt v. Collins, 20 Hun 127 ; McLachlin v. Brett, 105 N. Y. 391 ; Nichols v. Martin, uM supra ; Bannerman v. Quack- enbush, uhi supra; Frame v. William Penn Coal Company, 97 Pa. St. 309 ; Conyers v. Magratli, 4 McCord 394. Knowledge of the purchaser of the real facts will defeat his right of set-off. — The rule in George v. Clagett does not obtain where the purchaser knows the agent is not the owner, or where circumstances are brought to his knowledge, by investigating which he might have ascertained that the agent was not the 1368 GEORGE V. CLAGETT. owner; Bernshouse v. Abbott, 10 Vroom 531 ; Stewart v. Wood- ward, 50 Vt. 81; \Vrif,dit v. Cabot, 89 N. Y. 574; Crosby v. Hill, 15 Rt'p. 758 (Supreme Court of Oliio); Dunn v. Wriyht, 61 Barb. 250 ; Miller v. Lea, 35 Md. 390, where Alvey, J., says, " Hence if the character of the selling is equivocal, if he is known to be in the habit of selling sometimes as principal and sometimes as agent, a purchaser who buys with a view of cov- ering his own debt and availing himself of a set-off is bound to inquire in what character he acts in the particular transaction ; and if he chooses to make no iuipiiry, and it should turn out that he has bought of an undisclosed principal, he will be denied tlie l)enefit of his set-off." Mere public rumor, or matters known to other persons, but not brought to the knowledge of the purchaser, will not defeat his right of set-off. Pratt r. Collins, 20 Hun 127. Partners entrusting firm property to one partner liable to have a bonS fide purchaser set-off the indebtedness of the individual part- ner. — If a partnership so entrusts goods belonging to it to a partner as agent, so as to enable him to deal with them as his own, a person who in ignorance of his agency buys such goods of him, would be allowed the right of paying for them in the manner agreed U})on by the partner, and would have the right to set-off a debt of that partner to him; Dean v. Plunkett, 130 Mass. 195. Contrary American decisions. — The eases of Conable v. L3'nch, 45 IoA\a 84, and lirow ii r. .Morris, 83 N. C. 251, while not pro- fessing to disregard the principle of George v. Clagett, un- doubtedly do practically nullify its effect and must be regarded as contrary to the authorities. Can the rule be invoked in executory contracts? — A late de- cision of the Court of Appeals of the state of >*'ew York lays down the rule that where the contract is executoiy, and before the goods are delivered to the purchaser, he is informed that they are not the property of the party v.'ith whom he con- tracted but belong to a third person ; then by receiving a deliv- ery under the circumstances the pvirchaser waives all right to set-off an indebtedness of the agent to him in an action for the purchase price brought against him by the real owner ; McLach- lin V. Brett, 105 N. Y. 391. The opinion of Mr. Justice Finch turns on the fact that in this case, when receiving the goods bought, the purchaser was not acting in the dark as to the real GEORGE V. CLAGETT. 1369 ownership, and that until such acceptance no right of set-off accrued. And the conclusion of the court is sound and just, provided the purchaser had the option to refuse to receive the goods on ascertaining the real facts as to their ownership. There is a strong dictum of the court that he would have such an option. But that question is not apparently as free from doubt as the court seemed to regard it. Right of set-off against the agent of a debt due the defendant by his principal. — In Young V. Thurber, 91 N. Y. 390, we have the circumstances of the principal case reversed. In this case the assignee of the agent sued the defendants for certain merchan- dise sold them by said agent. The goods belonged to an in- corporated company which was insolvent at the time, but at the time of the purchase the defendants supposed the goods were the agent's. The defendants attempted to set-off certain claims of this company owing them, attempting to invoke the rule in George v. Clagett as an equitable reason for the allow- ance of such set-off. The court disallowed the set-off, but rested their decision on the fact that the arrangement between the agent and the company was one by which the former made advances to the latter for the goods consigned, and was to reimburse himself out of the proceeds of the sale, and that, under such arrangement, he did make advances exceeding the value of the goods consigned. There is no need to say the decision of the particular case was right. The defendants had not contracted with reference to a possibility of setting off their claim against the principal, for they then did not know that principal had any interest in the property. Whereas, the agent had sold with the express purpose of indemnifying himself from the proceeds against the money he had advanced for that principal. But if we suppose a case where no equities remained to be adjusted between the agent and the principal, would a purchaser's right of set-off of a claim due him from the principal then attach in a suit brought by the agent? Although he did not purchase expecting to exercise such a right, so that the principal cannot be said to have misled hira, as in George v. Clagett, yet the set-off is, it would seem, allowable. The real party in interest is the principal, — a party indebted to the de- fendant. Had that principal himself been the actor in the suit, the right of set-off would, of course, have existed. Because the plaintiff happens to be his agent the principal should not be 1370 GEOUCIK V. CLACJKTT. permitted to avoid tin- \vi^d\ consLMiuciict's of ihc state of accounts ])etvveen the piucliaser and hinisi-lf. 'I'liis correlative ri<,dit of the }>iU('hascr in these eases to sot-<»tT the debt of the principal in a suit hrou<,d»t by the agent is nuiintained by a writer of the hii^hest authority. See Story on Agency, 9th ed. §§ 404, 4()r>, 4UT ; and see, also, the remarks of Collier, ('. J., in the ciuse of (jrar 4 1. 1!. 211.] If a bankrupt on the eve of hix Ininkruptcy fraudulently deliver een brought, the defendant would have had no defence; and those cases would not have availed him. lUit this is an action on the contract, for the goods sold by the bankrupt; and altliough the assignees may either aflirni or disiilHrni the contract of the bank- rupt, yet if they do aflirm it, tliey nnist act consistently through- out : they cannot, as lias often been observed in eases of this kind, Itlow hot and eold ; and as the assignees in this ease treated this transaction as a contract of sale, it must be pursued througli all its consequences, one of which is, that the party buying may set up the same defence to an action brouglit by the assignees, which he might have used against the bankrupt himself; and consequently may set off another debt which was owing from the bankrui)t to him. This doctrine is fully recog- nized in Hltchin v. Campbell (rt), and iit King v. Leith (h). Now here the assignees, by bringing this action on the contract, recognized the act of the bankrupt, and must be l)Ound l)y the transaction in the same manner as the bankrupt himself would have been : and if lie had brouglit the action, the whole account must have been settled, and the defendant would have had a right to set off the amount of the bill. Therefore, on the dis- tinction between the actions of trover and assumi)sit, we are all of opinion that a judgment of nonsuit must be entered. Judgment of nonsuit (c). This case is one of frequent reference upon the subject of mntunl credit ; but as the leadiug case upon that branch of law is unquestiona))!}' Rose v. Hart, it seems best to append any remarks on the doctrines of mutual credit and set-oft' to that decision. The important principle which Smith v. Hodson is here inserted as estab- lishing, is, that a man who has his option whether he will affirm a particular act (a) 2 Bl. Rep. 827. 378; Smith \. Gale, ib. 364; and (6) 2 T. R. 114. Hnlme v. Mugglestone, 3 M. & W. (c) See Atkinson v. Elliott, 7 T. R. 30. SMITH V. HODSOX. 1379 or contract, must elect either to affirm or disaffirm it altogether ; he cannot adopt that part ichich is for his own benefit, and reject the rest. " He cannot," to use Lord Kenyon's expression, " blow hot and cold." This principle, as his lordship in the text observes, is older than the case of Smith V. Hodson. In Wilson v. Foulter, 2 Str. 859, an agent had been secretly employed on behalf of a bankrupt after his bankruptcy, to lay out money upon India bonds. The assignee, upon discovering the fact, seized some of the bonds in the agent's hands, and accepted them as part of the estate, and then brought an action against him for the money with which the other bonds were purchased. The court was of opinion that the acceptance of part of the bonds was an affii'mauce of the agent's act, and that the assignees could not affirm one part, and disaffirm another. In BiUon v. Hyde, 1 Atk. 128, a bankrupt had, in the course of dealing, after the bankruptcy, paitl 3000Z. to petitioner, and petitioner had in the same dealing paid the bankrupt 712L Lord Hardwicke decreed that the assignees, having adopted the bankrupt as their factor, must take him as such, for every purpose; and he decreed that the 712Z. should be allowed. The doctrine laid down in the text has been frequently acted on since the decision of Smith v. Hodson. It will be found laid down by Lord Ellen- borough in Hovil v. Pack, 7 East, 164; and by Lord Tenterden, in Ferguson V. Carrington, 9 B. & C. 59; and see Selway v. Fogg, 5 M. & W. 83; Biissell V. Bell, 8 M. & W. 277 ; and 10 M. & W. 350. So if a party, with knowledge of fraud in a contract, which would enable him to avoid it, treat it as a subsisting contract, he cannot afterwards repu- diate it. See Campbell v. Fleming, 1 A. & E. 40 ; and generally if a party having the right to repudiate or affirm a transaction, take the latter course, he cannot afterwards recur to his right of repudiation. See Richardson v. i?HK», 2 Q. B. 218 ; .Jordan v. Norton, 4 M. & W. 155. On the same principle proceeded the decision in Birch v. Wright, 1 T. R. 378, cited ante, vol. i., in the notes to Keech v. Hall, and which establishes that a man cannot at once be treated both as a tenant and a trespasser. That was an action for use and occupation, brought against the defendant, who, on the 18th Julj', 1777, was tenant of certain lands to Bowes, at 223Z. 10s. per annum, payable on the 12th of May and 22nd of November. Bowes had, on the 17th of July, 1777, conveyed the reversion by way of security to the plaintifl" and Goostrey, Avho was since dead, and they had brought an eject- ment for the lands against the defendant, and obtained judgment, laying their demise on the 6th April, 1785, and in September, 1785, had obtained posses- sion. All rent had been paid up to the 22nd November, 1784, except the sum of 81/. 15s. Under these circumstances, the court held that the plaintiff was entitled to the unpaid rent, up to the day of the demise laid in the ejectment, viz., 6th April, 1785; but not to any rent for the time wliich had elapsed since. "The plaintiff," said Duller, J., " has not waived the tort. He has brought his ejectment, and obtained judgment on it, which is insisting on the tort, and he cannot be permitted to blow both hot and cold at the same time. The action for use and occupation, and the ejectment, when applied to the same time, are totally inconsistent; for in one the plaintiff says the defend- ant is his tenant, and therefore he must pay him rent; in the other, he says, he is no longer his tenant, and therefore he must deliver up the possession. He cannot do both. The plaiutifl''s counsel admit that an action would lie for the mesne profits; it is of course after ejectment, and may be maintained without proving any title. The ejectment is the suit in which the defendant 1380 SMITH V. lloDSnN. is considered as a trespasser ; aiul unless tlie jinlfrmont in ejectment be laid out f)f tlie case, tlie tort is not waiveil. The ilifLMniniii slanils convicted on record by judiruient as a trespasser from tiie «;tii April, 17H5." [For tlie like reason in a recent case wliere tlie owner of the soil of a navi- {jablc lake over wliicli there was a public highway had taken to a pier wnjuy- fuUy ere<-ted upon his land, it was held that lie could not maintain an action against the owner of steamboats for causing persons to pass over tlie pier for the purpose of navigating the lake, MarsUall v. i'Ueswnter Steam \av. Co., L. R. 7 y. B. KIC] It seems extraordinary that the principal case of Smith v. Iloihon, should not have been mentioned in the argument of Burhanan v. Findldij, l) B. & C. TM<. It is true that it is distinguishul)le from that case; but the distinction was not then established, as it has l)een since, by Thorpe v. '/'horpr, :\ B. & Ad. ")«:$. In Bnrhunan v. FiiuUiiij, the assignees of certain bankrupts sued the defendants for money had and receiv<'d by the defendants to the use of the bankrupts before, and of the assignees after, the liaiikniptcy. Tiie bank- rupts, who were merchants at Liverpool, had remitted a l)ill to the defend- ants, who were merchants in London, with directions to get it discounted, and apply the proceeds in a particidar way. The defendants did not get it discounted, but received tiie money when it became due, which happened after the bankruptcy. Before the bankruptcy, the l)anknipts iiad rccpusti-d to have the l)ill returned to them. It was held that tlie defendants could not, in this action by the assignees, set oft* a debt due to them by the bank- rupts. This case was fully canvassed and explainetl in J'hnrjif v. Thorjir, sitpra. In that case, the defendant had received from the plaintiff a bill, indorsed and payable to the plaintiff, for the purpose of being paid to W. ; he had not paid it to W., but had received the money at the maturity of the bill; and the (piestion was. whether, in an action for that money, he could not plead a set-otr. The court held that he might. " If," said I'arke, J., '• the i)laintiff hail chosen, instead of assumpsit for money had and received, to bring a special action for the breach of duty, there could have been no set-fill", lie- cause it would have been an action for unliquidated ilania-^es." [See now, however, the Judicature Act, 1873, 3G & 37 Vict. c. GC, Order XIX., Rule 3.] " But, by bringing assumpsit for money had and received, he lets in the con- sequences of that action, one of which is the right of set-off. The expres- sions of the court in Burhanan v. Findlay must be taken with reference to the subject-matter. In that case, the bills remained in the hands of the defendants, unapplied to the purpose for which they had been sent, when the parties who had sent them countermanded the order for their being dis- counted, and ref|uired to have them returned, which was not done. It was not a case of mutual credit, because the transaction, on the part of the defendants, was against good faith. The assignees, in that case, did not affirm any contract by bringing an action for money had and received, which merely stood in the place of an action of trover." In accordance with this passage is the observation of Patteson, J., in Groom v. West, 8 A. & E. 772. " If," said his lordship, "a party sends an- other's bills to be applied to a specific purpose, the receiver cannot, by apply- ing them to his own needs, alter that purpose, and make the trust a debt. This appears from Buchanan v. Findlay, and other cases." Russell v. Bell, 10 M. & W. 340. In the case of Hill v. Smith, 12 M. & W. 618, the same principle was SMITH V. HODSON. 1381 applied, where a sum of money was paid by K. to a banking company for the purpose of providing foi» particular bills. K. being then indebted to the company in a larger amount, they placed the sum to the credit of his account with them, instead of following his instructions as to its application. The bills were refused acceptance, and while they remained unpaid in the hands of the holder, K. became bankrupt : it was held that his assignees might recover the whole amount in a special action of assumpsit against the com- pany. " It was well argued," said Baron Parke in delivering the judgment of the court, " by Mr. Cowling, that if a bill of exchange had been delivered to the defendants to be handed over, and they had converted it to their own use, the assignees might have brought an action of trover, and recovered the full value of the bill at the time of the conversion ; and that it made no real difference that money, not a bill, was misapplied." See also Alder v. Keirjhley, 15 M. & W. 117; Colson v. Welch, 1 Esp. 379 ; and Bell v. Carey, 8 C. B. 887. Brewer v. Sparrow, 7 B. & C. 310, and Bxirn v. Morris, 4 Tyrwh. 486, are also two cases ejusdem generis, in one of which the principle laid down in Smith V. Hodson was held applicable, while the other was considered distin- guishable. In Brewer v. Sparrow, 7 B. & C. 310, the assignees of a bankrupt brought trover for chattels of the bankrupt, of which the defendant had taken possession. The chattels were part of the bankrupt's stock in trade, which, on the bankrupt's absconding, the defendant had taken possession of, and carried on the trade. He had, however, rendered to the assignees a fair account, and paid over the balance. "The defendant," said Bayley, J., "in the first instance, was a wrongdoer, and the plaintiffs might have treated him as such. But it was competent to them, in their character of assignees, either to treat him as a wrongdoer, and disaffirm his acts, or to affirm his acts, and treat him as their agent; and if they have once affirmed his acts, and treated him as their agent, they cannot afterwards treat him as a wrong- doer, nor can they affirm his acts in part and avoid them as to the rest. By accepting and retaining the balance Avithout objection, they affirmed his acts, and recognised him as tlielr agent, and having so done, they are not at liberty to treat him as a wrongdoer." Judgment for defendant. The above case was relied on as in point, but held distinguishable, in Burn V. Morria, 4 Tyrwh. 486. That was an action of trover, brought for a 20L bank-note, lost by a clerk of the plaintiff, found by a woman in the street, taken, at her request, by the defendant's son to the bank, and there changed by his father's directions, and the proceeds, minus two sovereigns, given back to the wonuin. The woman was afterwards taken before the Lord Mayor, and seven sovereigns, part of the proceeds, found on her, and given back to the plaintiff. After a verdict for 13Z., it was moved, in pursuance of leave, to enter a nonsuit, upon the ground that the receipt of the II. was an affirmance of the whole transaction. Brewer v. Sparro^c, was cited : but Lord Lyndhurst said, "In that case the whole proceeds of the sale were taken; that is an adoption of the act. Here the receipt of the 11. does not ratify the act of the parties, but only goes in diminution of damages." [It is obvious that in this case, to have construed the receipt by the plain- tiff, of that portion of the proceeds of the note which could be followed, as an adoption of the previous wrongful acts, would have been to give to the transaction a meaning which it did not really bear ; the receipt, however, of a portion only of the proceeds of the Avrongful sale of goods may amount to an adoption of the act of selling, if this appears to have been the intention of the parties; see Lythgoe v. Vernon, 5 H. & N. 180, in which case the Court 1382 SMITH V. HUDSON. of Exchequer hclil, upon deimirror, that the owner of goods who had, iifter a tortious sah', cUiiiued the proceeds, and received a portion of thrm, coulil not afterwards treat tiie seller as a wronj^doer, and maintain trover against him. In tliis case Bninr v. Sparrow was cited, l)Ut not Hum v. Mi)rrin.'\ But where the purcliasers of goods from a baniirupt, after notice of an act of banlvruptcy, refused to pay for tliem upon a ilemaud made by tlie as- signees, wlio also sent to theuj an invoice of tlie goods; it was lield, the demand made by the assignees not liaving been complied with, that their acts did not allirm the sale, and that they might recover the value of the goods in an action of trover, Valpij v. Zanders, 5 C. B. 886. See also AfurrLi v. Robin- son, :$ B. & C. 196. [The subject of this note was much considered in tlie recent case of Smith V. liahr, L. 11. 8 C. T. :?r,0, 42 L. J. C. P. 15r>, where Bovill, C. J., in his judgment, points out that " if an action for money had and received is brought, that is, in point of law, a conclusive election to waive the tort; and so the commencement of an action of trespass or trover is a conclusive elec- tion the other way. But there is another class of cases in wliich an act is of an ambiguous character, and may or may not be done with the intention of adopting and alllrming the wrongful act. In such cases the (luestion whether the tort has been waived becomes ratiier a matter of fact than of law." In that case it was held that the l)ankru|>t's trustee, by getting a fraudulent bill of sale set aside by the Court of Bankruptcy and receiving from the defend- ant the proceeds of the gooils compriseil in it, which had been sold by the defendant, had precluded inmself from suing in trover for tlie goods. The plaiiitiir's i)roceedings were eitlier ecpiivalent to an action for money had and received, or amounted in fact to an allirmance of the wrongful sale.] As to the right of the assignees of a bankrupt to disulllrm an execution against the bankrupt's goods fraudulently procured by himself ; and as to the efl'ect of such disallirmance, see Stei-enson v. Xeirnham, [13 C. B. 285], 22 L. J. C. V. 1 10. In PouM'll v. Rccs, 7 A. & E. 426, Rees had before his deatii tortiously taken coal from laud belonging to rowell, Hughes, and Protliero : it was held that, the coal having been sold before Hees' death, money had and received would lie against his administrator for tlie proceeds of the coal taken more than six mouths before that event, and trespass for the coal taken afterwards, under stat. 3 & 4 W. 4, c. 42, s. 2. This was, however, on the ground that the subject-matter of each action was distinct. The " intestate," said Lord Denraan, " was guilty of a series of trespasses, and not of one single wrong- ful act. The plaintifl's, therefore, have only pursued difierent remedies for ditt'eront injuries." [So where in ejectment for alternative breaches, viz., permitting a sale by auction upon the demised premises and non-payment of rent accruing due subsequently, the defendant paid the rent due into court, and the plaintiff took it out in satisfaction, it was held that the acceptance of the rent under such circumstances did not amount to a waiver by the plaiutifl* of his right to bring ejectment In respect of the alternative breach, Toleman v. Portbtiinf, L. R. 7 Q. B. 344, 41 L. J. Q. B. 98, and see the notes to Dnmpor's Case, ante, vol. i., as to waiver of forfeiture.] Where the defendants had wrongfully taken possession of the money of the plaintift', and paid the amount into a bank in their joint names, it was held that the plaintiff might waive the trespass and recover the amount as money had and received, Xeate v. Harding, G Exch. 349. As to the right to SMITH V. HODSON. 1383 waive the trespass where tliere has been a wrongful entry on land, and to sue for use and occupation, see Turner v. Cameron's Coalbrook Steam Coal Co., 5 Exch. 932 [and the notes to Keech v. Hall, ante, vol. i. Where the tort is not waived, but an action is brought bj' the bankrupt's trustee for the conversion of the goods, as it was suggested in the principal case might have been done, there must be an avoidance of the contract by the trustee, and therefore a demand and refusal are necessary before action brought. But this is not so where the tort is waived and an action brought for the proceeds of the conversion, Heilbut v. Nevill, L. R. 5 C. P. 478, 39 L. J. C. P. 2-15. That the bankrupt's trustee has the I'iglit to bring such an action, see Marks v. Feldman, L. R. -i Q. B. 481, 38 L. J. Q. B. 220.] If a party has the option to affirm or disaffirm a particular act or contract, he must either affirm or disaffirm it altogether. Man}- of the cases result from insolvency or the transactions of principal and agent. It has been held that if an agent, to pay his own debt, sells his principal's property, the latter cannot maintain assumpsit against the purchaser, but should have brought trover; Whitlock v. Heard, 3 Rich. 88. In Bennett v. Judson, 21 N. Y. 238, it was held that the principal, having ac- cepted the proceeds of the sale of land, was liable in damages for material misrepresentations of the agent ; see Stone v. Denny, 4 Met. 151 ; Stockwell v. U. S., 13 Wall. 531, 567. And in accordance with the opening proposition, a principal in en- forcing a sale made by his agent, cannot allege that the agent exceeded his instructions in warranting the property ; see Chandelor v. Lopus, note. An important feature of the subject is the effect of the bring- ing of a suit in precluding the bringing of another inconsistent with it. The master of a vessel exceeded his authority by dis- posing of the cargo to pay a debt already due from the owner to the vendee. The assignee of the bill of ladino- brought an action of assumpsit against the vendee and then discontinued it and resorted to one of trover. The court held that discon- tinuing before trial did not amount to ratification ; Peters v. BalUstier, 3 Pick. 495, 505. See Butler v. Hildredth, 5 Met. 49, in which it was held that bringing an action for the price and securing the demand by an attachment, was an affirmation of the sale and the waiver of the right to disaffirm it. In Xield V. Burton, 49 Mich. 53, it was held that bringing assumpsit precluded the plaintiff from afterwards maintaining trover, although the court had no jurisdiction of the first action ; see 1384 SMITH V. IIODSON. Heuimanii v. Van l)uren, 44 Mich. 49G ; Thompson v. Howard, 31 Id. 309. " The principal upon being informed of an act of an agent in excess of his authority, lias the right to elect whether he will adopt the unauthorized act, or not, and so long as the condition of the parties is unchanged, he cannot he prevented from such adoi)tion because the other party to the contract may for any reason prefer to treat the contract as invalid, and his election once made is irrevocable ; " Andrews v. The ^Etna Ins. Co., 92 N. Y. 59G, (104 ; 85 Id. 334. " The defence of waiver by election arises where the remedies are inconsistent ; as where one action is founded on an alhrm- ance and the other upon a disallirmance of a voidable contract, or sale of property. In such cases any decisive act of afhrm- ance or disallirmance, if done with knowledge of the facts, de- termines the legal rights of the parties once for all. The in- stitution of a suit is such decisive act; and if its maintenance necessarily involves an election to allirm or tlisallirm a voidable contract or sale, or to rescind one, it is generally held to be a conclusive waiver of inconsistent rights, and thus to defeat any action subsequently brought thereon." Accordingly a bill in equity for specific performance and an action at law in dam- ages for breach, are l)oth in affirmance of the contract and are not inconsistent remedies, and the plaintiff may be compelled to elect; Connihan v. Thompson, 111 Mass. 270; see Gardner V. Lane, 98 Mass. 517 ; Hooker v. Hubbard, 97 Id. 175 ; Morris V. Rexford, 18 N. Y. 552; Rodermund v. Clark, 46 Id. 354; Warren v. Spencer Water Co., 143 Mass. 9, 15; Eliot i'. McCor- mick, 144 Id. 10 ; Bunch v. Grave, 111 Ind. 351, 357 ; Lee v. Templeton, 73 Ind. 315 ; Browning v. Bancroft, 8 Met. 278. If a party sues on a promissory note and obtains a verdict, he cannot in another suit between the same parties, in which he is defendant, maintain that although in form a promissory note the transaction was in effect a payment ; Lilley v. Adams, 108 Mass. 50 ; see Sears v. Carrier, 4 Allen 339. Cases in which it was held that a party was bound by his election are Washburn V. Great Western Ins. Co., 114 Mass. 175 ; Steinbach v. Relief Ins. Co., 77 N. Y. 498, 502 ; Fields v. Bland, 81 N. Y. 239 ; Stod- dard V. Cutcompt, 41 la. 329 ; Thompson v. Howard, 31 Id. 309 ; Sloan V. Holcomb, 29 Id. 153. It has been held that one who has received a legacy under a will cannot contest the validity of the will without restoring the legacy, or bringing the money SMITH V. HODSON. 1385 into court ; Lee v. Templeton, supra ; Holt v. Rice, 64 N. H. 398 ; 20 Am. Rep. 138 ; see State v. Adams, 71 Mo. 620. " An election made in ignorance of material facts is, of course, not binding, when no other person's rights have been affected thereby. So if a person, though knowing the facts, has acted in misapprehension of his legal rights, and in igno- rance of his obligation to make an election, no intention to elect, ,and consequently no election, is to be presumed ; " Wat- son V. Watson, 128 Mass. 152, 155; Anderson's Appeal, 36 Penn. St. 176; Wells v. Robinson, 13 Cal. 133; see Patterson V. Gandasequi, note. A joint and several bond or promissory note must be treated as one or the other, and after a joint judg- ment thereon one of the obligors or promisors cannot be sued separately ; United States v. Price, 9 How. 83 ; Beltzhoover v. Commonwealth, 1 Watts 126 ; Pickersgill v. Lahens, 15 Wall. 110, 144; contra. United States v. Cushman, 2 Sum. 436. If the landlord has the option to treat his tenant either as a tres- passer or as being rightly in possession he must choose; Mc- Kildoe V. Darracott, 13 Gratt. 278; Stuyvesant v. Davis, 9 Paige 427. A judgment against either i^rincipal or agent after the former is disclosed estops from suing the other; Garrard V. Moody, 48 Ga. 96 ; Tuthill v. Wilson, 90 N. Y. 423. It has been held that the mere suing both without judgment is not an election to hold the principal and discharge the agent; Matt- lage V. Poole, 15 Hun 556 ; Fontaine v. Eagle Man. Co., 52 Ga. 31. Privies as well as immediate parties are bound by the estoppel of an election ; Fire Ins. Co. v. Cochran, 27 Ala. 228 ; Merrick's Estate, 5 W. & S. 9; Rawson v. Turner, 4 Johns. 469 ; Patterson v. Gandasequi, note. Often the ground taken by a party to a suit deprives the other of a good defence, or prevents recovery on a valid cause of action. Such party cannot, to the injury of his opponent, shift his ground in a subsequent suit. It was held where de- fendants procured the dismissal of a cause hi one court upon the ground that it was properly pending in the court of another county to which it had been transferred, that they were estopped to deny the jurisdiction of the court of the other county; Perkins v. Jones, 62 Iowa 345. A defendant de- feated an action on the ground that a third person should have been joined with the plaintiff as a partner ; it was held that he . could not deny the partnership in a subsequent suit for the 1386 SMITH V. HUDSON. same debt by both ; Kelly v. Eieliman, ;'> Wharton 446; 3 Id. 419; see Garrett v. Lyle, 27 Ala. a8G ; Variek r. Kdwanls, 11 Paige 289; Hayes r. Giidykunst, 11 Pemi. St. 221; Taylor v. Parkhurst, 1 Id. 197; Martin v. Ives, 17 S. & U. 304; Queen V. Sandwich, l'> C^. H. ')63, o71 ; Powell r. WashinL,^ton, lo Ala. 803; The Hark lldwin, 1 S|>rague 477: W'cidon r. Lan«lreaux, 2»i La. Anil. 72!>; Smith i\ McNeal, 68 IVnii. St. 164; Hank v. Deiiiiis, 37 111. 381 ; Vanleer's Appeal, 24 Penn. St. 224; Dewey V. Hell, 5 iMlen Iti."); Foster v. Hettsworth. 37 Iowa 41o; Koon V. Snodgrass, iH W. \'a. 320; McLeod r. .lohnson, 28 Miss. :571i Potter r. Adams, 24 Mo. 109; Railroad Co. v. Hank, 102 U. S. 14; Garber v. Doersom, 117 Penn. St. 162. Fiuther cases whieh hold that one cannot allirm those paits ot a trans- action ill his hivor and disatlirm the rest to (he injury of others are Adlum v. Vanl, 1 Kawle 163; Garnham r. Rogers, 1 Dickens 63; Pickett v. Hank, 32 Ark. 346; Moller v. Tuska» 87 N. V. If.t'i; Loll. V r. Hailcy, 4.") M.l. 417. For cases which hold lliat t'raudulciit or illegal acts may be void as to those injured thereby, yet binding on the doer and volunteers under him, see Seal u. Duffy, 4 Hair 274; Carr v. Acroman, 11 Ex. oOti; Wileocks v. Wain, 10 S. vfc R. 380; Man- ufacturers' Hank v. Hank of Pennsylvania, 7 W. & S. 33'); Van- dyke V. Christ, 7 Id. 373; Kenneman v. Miller, 2 Md. 407; Loney v. Loney, 2 Carter 196; Thomiison v. Dougherty, 12 S. & R.'448; Cushwa v. Cushwa, 5 Md. 44. The rule under consideration is often applied in the case of wills. Wlicic a testator gives the property of A. to H., and then gives A. a legacy, the rule is well established at law, as well as in equity, that if A. elects to take the legacy, he shall not set up any right or claim of his own "which shall defeat or in any way prevent the full effect and operation of every part of the will ; " Hyde v. Haldwin, 17 Pick. 303, 308 ; Collins v. Woods, 63 111. 285; Noe v. Splivalo, 54 Cal. 207; Wise v. Rhodes, 84 Penn. St. 402 ; Smith v. Smith, 14 Gray 532 ; Wat- son V. Watson, 128 Mass. 152 ; Brown v. Brown, 108 Mass. 386. The principle is extended to a widow's dower at common law ; Savage v. Burnham, 17 N. Y. 561, 571 ; Lord v. Lord, 23 Conn. 327 ; Higginbotham v. Coonell, 8 Graft. 83 ; Fulton v. Fulton, 30 Miss. 586 ; see Sanford v. Sanford, 58 N. Y. 69 ; s. c. 45 Id. 723 ; Asch v. Asch, 47 Hun 285 ; Konvalinka v. Schlegel, 104 N. Y. 125 ; Yorkly v. Stinson, 97 N. C. 236 ; Stockton v. Wooley, SMITH Y. HODSON. 1387 20 Ohio St. 184 ; Thompson v. Hoop, 6 Id. 480 ; Carder v. Fay- ette Co., 16 Id. 353; Stilley v. Folger, 14 Ohio 610; see Re Vowers, 45 Hun 418. If the gift is subject to conditions and the donee elects to take, he must take with the burdens attached; Scholey v. Reed, 23 Wall. 331. In the case of a devise it was held that, as the widow and children occupied the lands without exercising rights adversely to each other, infer- ences could not be drawn which should operate as an estoppel against parties subsequently setting up legal rights to the lands thus occupied ; Fitts v. Cook, 5 Cush. 596, 601. For a case where, " by accepting the position of executor, by giving bond, and by continuing to occupy the real estate left by the de- ceased," one was held to have " adopted, ratified, and confirmed the will," and was thus " estopped from setting up any claim or right which would defeat it," see Smith v. Wells, 134 Mass. 11, 13. This subject is more fully treated under estoppel in the note to Patterson v. Gandasequi, and the subject of mutual credits will be found in the note to Rose v. Hart. DOVASTON V. PAYNE. 35 G.2, C. P. [REPOUTKI) 2 II KN. IM.. The property/ of a highway is in the oumer of the soil., subject to an eaaement for the henejit of the public. Therefore., a plea in bar of an avowry for takiny cattle Jamaye feasant, that the cattle escaped from a public hiyhway info the l(»ciis in (|iit>, thronyh the defect of f ■/ices, must show that they were passing on the liiglivvay /chcn they escaped ; it is not sufficient to state that be- iny in the hiyhivay they escaped. Rki'LKVIN for taking the cattle of the plaintiff. Avowry that the defendant was seised in fee of the locus in quo., and took the cattle damage feasant. Plea, that the locus in quo "lay con- tiguous and next adjoining to a certftin common and j)ublic king's highway, and tliat the defendant, and all other owners, tenants, and occupiers of the said i)lacc in which, &c., with the appurtenances, for the time being, from time whereof the mem- ory of man is not to the contrary, have repaired and amended, and have been used and accustomed to repair and amend, and of right ought to have repaired and amended, and the said de- fendant still of right ought to repair and amend the hedges and fences between the said place in which, &c., and the said high- way, when and so often as need or occasion hath been or re- quired, or shall or may be or require, to prevent cattle being in the said highivay from erring and escaping thereout into the said place in which, &c., through the defects and defaults of the said hedges and fences, and doing damage there. And because the said hedges and fences between the said place in which, &c., and the said highway, before and at the time when, &c., were 1388 DOVASTON V. PAYNE. 1389 ruinous, broken down, prostrated, and in great decay for want of needful and necessary repairing and amending thereof, the said cattle in the said declaration mentioned, just before the said time wlien, &c., being in the said highway^ erred and escaped thereout, into the said place in which, &c., through the defects and defaults, &c., &c. To this plea there was a special de- murrer, For that it is not sliown in or by the said plea, that the said cattle, before the said time when, &c., when they escaped out of the said highway into the said place in which, &c., ivere passing through and along the said higJiwag^ nor that they had any right to he there at all, &c. In support of the demurrer, Williains, Serjt., argued as fol- lows : It is a rule in pleading, that if the defendant admits the fact complained of, he must show some good reason or justifica- tion of it. If the cattle in this case had escaped from an ad- joining close through the default of the plaintiff's fences, the defendant must have shown that he had an interest in that close, or a licence from the owner to put his cattle there. Dyer 365 a, Sir F. Leke's Case, recognised Hob. 104, Dighg v. Fitz- herhert ; for a man is bound to repair against those who have right, but not against those who have no right. So if cattle escape from a highway, the party justifying a trespass must show they were lawfully using the highway, that is, were pass- ing and repassing on it, which is material and traversable. It is not sufficient that they were simply in it, the heiiig there is equivocal and not traversable. The owner of the soil may have trespass, if the cattle do anything but merely pass and repass, Bro. Abr. Tresp. pi. 321, and according to this principle, the entries state, in pleas of this kind, that the cattle were super viam prcedictam transeuntes, Thomp. Entr. 296, 297 ; and in Heme's Plead. 822, that they were " driven along the highway .''' Hejjivood, Serjt., contra. — The same strictness is not required in a plea in bar to an avowry in replevin, as in a justification in trespass. Here tlie plaintiff pleads the plea, and it is sufficient for him to show that his cattle v/ere wrongfully taken. The passing on the highway is as uncertain as the being there, and as little traversable. But the material issues on the record would be, whether the fences were out of repair, and whether the defendant was bound to repair them. If he wei-e, it is im- material whether the cattle were passing on the highway or not. In a plea in bar, certainty to a common intent is sufficient. It 1390 DOVASTON V. I'AYNK. miiy therefore be inteiuletl th;it the eiittk; were hiwl'iilly in tho hinhwuy. Jjord ('. J. Eijrc. — I a^^rce with my brother Williams as to the general law that the party who woulil take aiini/ in the miiil hiijhwai/^^ ? This is a dilYcrcut case from cattle escaping from a close, where it is necessary to sliow that the owner had a right to put them there, because a highway being for the use of tiie p«d)lic, cattle may be in the highway of comiiiioii light ; I doubt, therefore, whether it reipiires a more [jartieular statement. It would ci-r- tainly have been more formal, to have said that the cattle were passing and repassing ; and if the evidence had proved that they were grazing on the way, though the issue would have been literally, it would not have been substantially, proved. But I doubt whether the being in the highway might not have been traversed; and if the being in the highway can be construed to be certain to a common intent, the plea may be supported, not- withstanding there is a special demurrer, for a special demurrer does not meet a mere literal ex[)ression. The i)receiK'nls iiidccd seem to make it necessary to state that the cattle were [)assing and repassing, but they are but few ; yet upon the whole I rather think the objection a good one, because those forms of pleading are as cited by my brother Williams. Buller, J. — This is so plain a case that it is ditlicult to make it a ground of argument. But my brother Heywood says, there is a difference between trespass and replevin in the rules of pleading. In some cases there is certainly a material difference in the pleading in the two actions, though in others they are the same. One of the cases in which they differ is, th;;t if tres- pass be brought for taking cattle which were distrained damage feasant, it is sufficient for the defendant to say that he was pos- sessed of the close, and the cattle were doing damage ; but in replevin the avowant must deduce a title to the close. A\'her- ever there is a difference, it is in favour of trespass and against replevin : for in trespass an excuse in a plea is sufficient, but in DO V ASTON V. PAYNE. 1391 an avowry a title must be shown, (a) This brings me to the question, Whether the plea on this record be good to a common intent? Now I think that the doctrine of certainty to a com- mon intent will not support it. Certainty in pleading has been stated by Lord Coke (b) to be of three sorts, viz., certainty to a common intent, to a certain intent in general, and to a certain intent in every particular. I remember to have heard Mr. Jus- tice Ashton treat these distinctions as a jargon of words, with- out meaning. They have, however, long been made, and ought not altogether to be departed from. Concerning the last two kinds of certainty, it is not necessary to say anything at pres- ent. But it should be remembered, that the certain intent in every particular applies only to the case of estoppels ((?). By a common intent I understand that when words are used which will hear a natural sense, and also aii artificial one, or one to be made out by argument or inference, the natural sense shall pre- vail : it is simply a rule of construction, and not of addition : common intent cannot add to a sentence words which are omitted. There is also another rule in pleading, which is, that if the meaning of words be equivocal, they shall be taken most strongl}" against the party pleading them. There can be no doubt that the passing and repassing on the highway was traversable : for the question. Whether the plaintiff was a tres- passer or not? depends on the fact, whether he was passing and repassing, and using the road as a highway, or whether his cattle were in the road as trespassers ; and that which is the gist of the defence must necessarily be traversable. A most material point, therefore, is omitted, and I think the plea would be bad on a general demurrer. But here there is a special de- murrer, and as the words are equivocal they are informal. Heath, J. — The law is, as my brother Williams stated, that if cattle of one man escape into the land of another, it is no ex- cuse that the fences were out of repair, if they were trespassers in the place from whence they came. If it be a close, the owner of cattle must show an interest or a right to put them there. If it be a way, he must show that he was lawfully using the way ; for the propertu is in the owner of the soil, subject to an (a) See the note to ^/('^orv. Spate- (b) Co. Litt. 303. man, 1 Wms. Saimd. 34G e, and to (c) Co. Litt. ibid. J'oole V. Longueville, 2 Wms. Saiuid. 28-in. 1392 D()\ ASTON v. I'AYNE. easement for the benefit of the public. On this plea it does not appear whether tiie cattle were passin-e v. Gi'een, 11 Price, 7I3G; Hi'dlam v. Ilendlry, Holt, 4G3; see, how- ever, the exception stated by Lord Denman, C. J., A*, v. Ilatjield, 4 A. & E. 1G4, and per Lord Tenterden, C J., in A', v. Edmonton, 1 M. & Rob. 24. This presumption applies as well to private as to public roads. " This pre- sumption," said Cockburn, C. J., in the modern case of //o/m^.s v. lii'Uinijhnm, 7 C. H. N. S. 82!), " is allowed to prevail upon i^rounds of public convenience, and to prevent tlisputes as to the precise boundaries of property ; and it is based upon this supposition, — wiiich may l)e more or less founded in fact, but which at all events has been adopted, — that when the road was orijjinally formed, the proprietors on either side each contriliuted a portion of his land for that purpose. I think that is an equally convenient and reasonable prin- ciple, whether applied to a public or to a private road, but in the latter case it must of course l)e taken with this ?, L. J. Q. B. 449; a case de- cided under s. 96 of the Metropolis Manaiiciueiit Act, 1855.] Nay, not only may the soil over which the hiijliway passes be vested in an individual, but it may be subject to a private right of way co-existent with the public one, Brownlow v. Tomlinson, 1 M. & Gr. 484. Or to a custom of partial interruption for a limited time by the erection of booths during a fair, Ehmod v. Btdlock, G Q. B. 383. The right of the public, however, is that which is of chief importance, and is principally to be taken care of. And therefore if a highway become so out of repair and founderous, as to be impassable, or even incommodious, the public have a right to go on the adjacent ground, whether it be cultivated or uncultivated, 1 Roll's Abr. 390 A. pi. 1, B. pi. 1 ; 1 Hawk. P. C. 76, s. 2; Ahsor v. French, 2 Show\ 29, pi. 19; rayJor v. Whitehead, Dougl. 749, [2 Wms. Saund. 161 n. (12)] ; a privilege which the grantee of a private way can under no circumstances assume. Pomfret v. Bicroft, 1 Wms. Saund. 322 a, n. 3; Taylor v. Whitehead, nhi supra; Bnllard v, Harrison, 4 M. & S. 387. [Even as to the case of a public way doubts are expressed in Arnold v. Holbroolc, L. R. 8 Q. B. 96, 42 L. J. Q. B. 83, where it was held that the de- fendant had no right to deviate from a public footpath Avhich had been ploughed up, the dedication being limited by the right of the owner so to plough it up. See also the remarks on this subject in Spearman on High- ways, p. 47. There is, however, an obvious distinction between allowing a private way to become founderous and actually obstructing it, and it has been held by the Lords Justices, that if A. grants a right of way to B. over his field, and then places across the waj' an obstruction not allowing of easy removal, the grantee may go round to connect the two parts of his way on each side of the obstacle over the grantor's land without trespass, pter Lord Selborne, C, Selby V. Nettle/old, L. R. 9 Ch. Ill, 43 L. J. Ch. 357. Whether this right of going on the adjacent land exists in cases in which the highway is obstructed by a wrong-doer was considered in Daices v. Haio- kins, 8 C. B. N. S. 848. Mr. Justice Williams observed that it is remarkable that in the text-books this right is confined to cases in which the highway is founderous and out of repair; and that on principle it may be doubted whether the burthen to which the adjacent soil is subjected when the parish has been guilty of a non-feasance in neglecting to keep the highway in re- pair, ought to be likewise inflicted because some wrong-doer has put an ob- struction on the highway, which may be abated as a nuisance by any one who has occasion to use the road; at all events, unless the obstruction be of such a nature that practically it cannot be abated, and so the road is in effect im- passable. The Lord Chief Justice Earle said, however, that he knew of no decision and no principle making a distinction between a, I'oad impassable by non-feasance, that is, neglect of repair, and a road impassable by mis- feasance, that is, by ditch and bank wilfully made; and Mi*. Justice Williams added, that in Ahsor v. French, supra, which is very shortly and obscurely reported in 2 Show. 29, it seems to liave been held a good plea to an action of trespass that the plaintiff himself had stopped a highway so as the defendant could not pass, and therefore he went over the plaintiff's close, doing as little harm as he could. See as to this, Selby v. Nettleford, nbi supra-l II. As to the mode in vhich a highway is created. — Except where this is done by the express enactment of tlie Legislature, it derives its existence from a dedication to the public by the owner of the land over which the 1890 DOVASTON V. PAVNE. highway extends, of .a riirht of passasrc over it; and tins dedication, though it he not made in express terms, as it indeed sehloni is, may and will l)e pre- sumed from an unhiterrupted use l)y tlie jjublle of the riglit of way claimed, li. V. Lloyd, 1 Camp. 2(;o. See Britiuli Museum v. Finnis, 5 C. & V. 4G0; and the Grand Surrcij Cannl Co. v. Hall, 1 M. & Gr. :}!)3. [An open user as i)f riglit i)y the pul)lie raises a presumptive inference of tU'dication requiring to lie rebutted; and wlien sucli user is proved, tiie onus lies on the person who seelis to deny the inference resulting from it to show negatively that the state of the title was such that no one couhl make a valid dedication, li. v. Petrie, 4 E. & B. 737.] " No particular time is neces.sary for evidence of a dedication. If tlie act of dedication be unequivocal, it may take place immediately. For instance, if a man build a double row of houses opening into an ancient street at each end, making a street, and sells or lets the houses, that is instantly a high- way." ]\r Chambre, J., in Wnodycr v. Ilnddrn, .") Taunt. Vi:>. Eight, and even six years, have been held time enough wherein to presume a dedication fnm) user, Tritstets of liughy Charity v. Mcrryirrathcr, 11 East, 37G. Four years have been held too short a time. But all de|)ends upon the special circumstances of each case, as will be understood from the remarks of Chambre, J., above cited, /?. v. Hudson, 2 Str. 90!); A', v. \Vri'illiams dissented, being of opinion that, as the owner of the soil over which the public had passed had for many years submitted to this burtlicn, instead of causing the obstruction on the ancient highway to be re- moved, this atl'onled some evidence of an intention to dedicate the substituted highway to the public] A dedication cannot be presumed against the crown, Harper v. Charles- worth, 4 B. & C. 574. This, however, must be taken with some qualification. See Reg. v. East Mark, 11 Q. B. 877. As a dedication to the public will be presumed where circumstances warrant it, so that presumption may be rebutted, and prevented from arising, by circumstances incompatible with the supposition that any dedication has taken place. Tluis, tliough we have seen that if a man open a useful passage from one pul)lic highway or street into another, a presumption will, in course of time, arise, tliat he has dedicated that passage to the puljlic; yet if he place a bar or gate across the road, which may be opened and shut at pleasure, the presumption of dedication is rebutted. Nay, though tlie bar or gate liave been knocked down, the fact of its having once been there will, at least for a considerable time, prevent tlie presumption of a dedication from arising, Roberts v. Karr, 1 Camp. 262, note; Lethbrid'je v. Winter, 1 Camp. 263. See DOVASTOX V. PAYNE. 1397 British Mnseum v. Finnis, 5 C. & P. 460. So too it may be proved that the ■user took place undei- an agreement, BarrarJnucih v. Johnson, 8 A. «& E. 104. See Grand Surreij Canal Co. v. Hall, 1 M. & Gr. 393; and Fcrrand v. MlUigan, 7 Q. B. 730. [Healey v. Battey, L. R. 19 Eq. 375 ; in a case in which it appeared that a road had been originally made by turnpike trustees under a temporary and expired act, and formed a portion only of the line of road which they had been authorised to make, but that it had been repaired by the parish, both before and after the expiration of the temporary act, the court held that there was evidence of a dedication and of an adoption by the public, and that the circumstances under which the road was made might explain away such evidence, but did not, as a matter of law, conclusively rebut it, R. v. Thomas, 7 E. & B. 399.] A dedication to the public may be limited in point of time by acts contem- poraneous with the dedication, R. v. Hudson, 2 Str. 909 ; R. v. Northampton, 2 M. & S. 262. See R. v. Mellor, 1 B. & Ad. 32. [That is to say, a highway may be useable by the public at certain times only; as in R. v. Northampton, where a pviblic bridge was used by the public at all times when it was dan- gerous to pass through the river. But a dedication once made cannot, it is said, be limited in duration. " If a Avay is dedicated at all, it must be dedi- cated in perpetuity." See the judgment of Byles, J., in Dawes v. Hawkins.'] But whether a dedication can be partial in its extent, is a question of some doubt and difficulty. See it discussed by Mr. Wellbeloved, on Highways, p. 52, et seq. See also Marquis of Stafford v. Coyney, 7 B. & C. 257 ; Rex v. Leake, 2 N. & M. 595 ; 5 B. & Ad. 469 ; Lethbridge v. Winter, 1 Camp. 263. [A highway may, however, be dedicated to the public, subject to a pre- existing right of user by the OAvners of the adjoining lands for the purpose of depositing goods on it; so, it may be dedicated with an obstruction on it, or excavation in it, or near it, which is a hindrance, and dangerous to passen- gers, and which if placed or made on or near the highway after its dedication Avould have been a nuisance : and no action will lie against the person dedi- cating in respect of any injurj' caused thereby. See Le Neve v. Mile End Old Tovm, 8 E. & B. 1054; the judgment in Morant v. Chamberlin, 6 H. & N. 541 ; the judgment in Fisher v. Prowse, 2 B. & S. 770; and Robhins v. Jones, 15 C. B. N. S. 221. So there may be a dedication of a footway to the public, subject to the reservation by the owner of the right to plough it up periodically, which limit to the dedication may be proved by user, Mercer v. Woodgate, L. K. 5 Q. B. 26, 39 L. J. M. C. 21, followed in Cam. Scacc, Arnold v. Blaker, L. R. 6 Q. B. 433, 40 L. J. Q. B. 185. The law on this subject is laid down by Blackburn, J., in the masterly judgment of the Court of Queen's Bench in Fisher v. Proivse, in the following terms, adopted by the Common Pleas in Bobbins v. Jones. "The law is clear that if, after a highway exists, anything be newly made so near to it as to be dangerous to those using the highway — such, for instance, as an excava- tion {Barnes v. Ward, 9 C. B. 392), this Avill be unlawful and a nuisance: as it also is if an ancient erection, as a house, is suftered to become ruinous, so as to be dangerous (Reg. v. Watts, 1 Salk. 357) ; and those who make or maintain the nuisance in either case are liable for any damage sustained thereby, just as much as if the nuisance arose from an obstruction in the highway itself ; but the question still remains whether an erection or excava- tion already existing and not otherwise unlawful, becomes unlawful when the land on which it exists, or to which it is inunediately contiguous, is dedi- 1398 IKfVASTON V. rAVNE. cated to the public as a way, if tlie erection prevents the way from l)c'iiig so convenient and safe as it otlierwise wonld be; or wlietlier, on tlie contrary, tlie (ifdication must not be talieii to be nuuie to tlie public, and aefei)tcd by them, subject to tiie inconvenience or rislv a'risinj; from tlie oxisliiij; state of thinsjs. We tliini< the latter is tlie correct view of tlie law. It is, of course, not obligatory on the owner of land to dedicate tlie use of it as a iiii;iiway to the public. It is ecjually clear tliat it is not compulsory on tlie pui)lic to accept tlie use of a way wlien ort'ered to tiicin. If tlie use of tlie soil as a way is ottered l)y the owner to the public untler given conditions and subj<»ct to certain reservations, and the public accept the use under such circumstances, there can l)e no injustice in holdinu: them to the terms on whicli tlic benefit was conferred. "()n the otlier liaiid, great injustice and liardsliip would often arise if, when a public riglit of way lias l)een aci|uiii'il under a given state of circum- stances tlerr>i v. Corporation of Oldham, 29 Ch. 1). 7.')().] It must also be observed that the dedication of the owner of a particular estate will not bind those in remainder, or prevent them from stopping the Avay dedicated, when the estate comes into their possession, Wood v. Veal, 5 B. & A. 4.")4. See Baxter v. Taylor, 1 N. & M. 13; li. v. lulmontnn, 1 M. & Rob. 24. Unless, indeed, in the course of the period during which the way has been used, there have been a succession of tenants, or the landlord has had express notice of the user, in which cases his assent to it might be implied, B. v. Barr, 4 Camp. 16. A body corporate may dedicate, drand Surrey Canal Co. v. HaU, 1 M. & Gr. 393. The assent of the parisli through which the highway runs is not [at com- mon law] requisite to give eflect to the dedication thereof [as regards repairs], R. v. Leake, 5 B. & Ad. 469; though the contrary of this proposi- tion was once contended for, R. v. St. Benedict, 4 B. & A. 447; R. v. Mellor, 1 B. & Ad. 32; R. v. Cumbenrorth, 3 B. & Ad. 108; R. v. Wrifiht, 3 B. & Ad. 683. See now, however, on this subject, 5 & 6 W. 4, c. 50, s. 23, [as to roads dedicated since the passing of that act] cited post. [It should further be observed that apart from the question of liability to repair, it is necessary for the public to assent (of which user would be evidence), in order that a way may become public See the judgment of DOY ASTON V. PAYNE. 1399 Blackburn, J., in Fishpr v. Prou-se, ubi sup., and of Brett, J., in Cuhitt v. Maxsp, L. R. 8 C. P. 704.] It lias been already remarked, that a highway is sometimes created bj' an act of parliament passed for that pnrpose. The provisions of snch an act must be strictly followed, or the creation will not take place. See R. v. Has- liiirf field, 2 M. & S. 558. Where an act of parliament directed a road from A. to B., it was held that the whole line must be complete, before any portion of it would become a highway repairable by the parish, R. v. Cumbericortk, 3 B. & Ad. 108, and 4 A. & E. 731 ; R. v. Edge Lane, 4 A. & E. 723. [But this proposition was held by the Court of Appeal to be no longer law% Rerj. v. French, 4 Q. B. D. 507, 48 L. J. M. C. 175.] Where a road has been made by trustees under a local and temporary act, and there had been an user of it for a considerable time b_v the public, it was held that the parish was liable to repair it so long as the statute authorising its construction was kept in force by temporary continuation acts, and that the road was properly described in the indictment as a common Queen's liighway. See Reg. v. Lordsmere, 15 Q. B. 089, and R. v. Mellor, sup7'a. [Where an inclosure award and map made in 1808 set out a strip of land as a highway, and it was accordingly set out properly by metes and bounds on the land and fenced, but was never com- pletely formed, and was never used by the public, it was held that it never became a highway, Cithitt v. Maxse, L. R. 8 C. P. 704, 42 L. J. C. P. 278.] m. As to the mode in which a highway may be lost. — The common law pre- sents no means by which a public right of way can be lost absolutely, Fowler V. Sanders, Cro. Jac. 44(5. It might, however, be diverted from one line of road into another ; and that either by the act of God — as if a navigable river change its course, see Reg. v. Bamber, 5 Q. B. 279; Reg. v. Paul, 2 JM. & Rob. 307, coram Maule, J.; or by proceedings on a writ entitled that of ad quod damnum, which is an original writ issuing out of Chancery, and directing the sheriff to summon a jury to inquire whether the proposed diversion will be detrimental to the public, and to return the inquisition into Chancery, where any person injured thereby might have impeached it. "It is an established maxim, — once a highway always a highway; for the public cannot release their rights, and there is no extinctive presumption or prescription. The only methods of legally stopping a higliway, are either by the old writ of nd quod damnum, or by proceedings before magistrates under the statute." See the judgment of Byles, J., in Dawes v. Hawkins, 8 C. B. N. S. 858; [and see Turner v. Ringwood Highway Board, L. R. 9 Eq. 418. In the last case. Sir William (then V. C.) James refused to grant an injunction on behalf of the alleged owner of the soil of a road against the Highway Board felling trees which had grown up so as to be an obstruction, but on the side of the road where thei-e was no via trita, and see Wilkins v. Day, 12 Q. B. D. 110. Where the ways giving access to a footway have by oi'der of quarter sessions been stopped up at both ends of it, the footway is lost, Bailey v. Jamieson, 1 C. P. D. 329.] A public liighway may, of course, be either extinguished or diverted by act of parliament; and statute 5 & 6 W. 4, c. 50, contains, from section 84 to 92, copious directions as to the mode in which it maj"^ be stopped up or diverted by two justices. Those sections enact, that whencA-er the inhabitants, in vestry assembled, deem it expedient that a highway should be stopped, diverted, or turned, either entirely, or reserving a footway or bi'idle-way, the chairman shall, in writing, direct the surveyor to apply to two justices to view it and authorise him to pay the expenses of the view. Any inhabi- 1400 DOV^ASTON V. I'AVNK. tant [Jirg. v. Mnulr, 41 I>. J. M C. 47, 23 L. T. N. S. 850] may call upon the cluin-liwardcns to assfiiihle a vestry for this purpose. If it appears to the two justifos. u|)on tlieir view [wliidi must l)e personal, Ji. v. Wdllucf, 4 Q. B. 1). 041], that the hif^hway may beiu-llcially be sto|)ped, diverted, or turned, anil the owner of the land throuijh whicli the iwic hiijluniij, [see livy. V. Phillips. L. R. 1 ti. B. 048, in wliieli case Wilrh v. \asfi, 8 East. :V.>4, was dissented from,] is intended to be made, consent in writing, notices are to be atlixed at tlie place and l)y tiie siile of eacli end of the roail. [see /ie;;. v. ././. of Surreij, L. U. 5 Q. B. 4(;(;] published for four weeks runninjj; in a county newspaper, and for four successive Sundays on the door of the church of each parish through whicli the hijjhway runs; and wlien proof has been made, to the satisfaction of the justices, of the i)ul)lication of such notices [the publication of which is therefore a condition preceilent to the justices jurisdiction, Rkj. v. .htstiris of Sitrrcij, L. K. "> t^. H. 4G L. J. M. C. 4'J], and a plan lias been laid before them of the old and the proposed new hijjh- Avays, the justices are to make their certilleate. which is to be lod<;etl with the clerk of the peace, anil at the quarter sessions next after four weeks from the day of its beinjr so lodjjed, is to be read in open court, and enrolled, together with the proof, plan, and consent, among the records of the quarter sessions. The stoppage or diversion of several highways connected with each other, may be etlected by the same order and certilleate. Parties aggrieved by such certificate may appeal to the said (piarter ses- sions, giving ten [increased l)y 12 i<: i:{ \'ict. c. 4.">. s. 1. to fourteen (see Iteg. V. Miniie, 41 L. J. M. C. 47)J days' notice, and a statement of the grounds of appeal. The court of quarter sessions is to empanel a jury to try this appeal, to decide it according to the verdict, and to award costs to the suc- cessful party. If there be no appeal, or the appeal be dismissed, the quarter sessions are to make an order for the diversion or stopping the old highway, and purchasing tlie ground for the new one. which henceforth is to be a public highway. [As to the notice of the vestry meeting, see R>'(/. v. Ptncoll, L. II. 8 Q. B. 403. The certificate of the justices for tlie diversion of a highway under sect. 85 may be granted if the new highway is either " nearer or more com- modious" than the old one; see Rcy. v. Phillips, L. U. 1 Q. B. <548, in which case an earlier and opposite decision of the Queen's Bench (Jir(/. v. Shiles, 1 Q. B. 91D) was dissented from. It is sutlicicnt if the certificate state the existence of the circumstances required by the section, Reg. v. Harvey, L. R. 10 Q. B. 46. (See Public Health Act, 1875, 38 & 39 Vict. c. 55, s. 144, as to the substitution of the Urban Sanitary Authority for the Surveyors and Ves- ti'ies in 5 & C Wm. 4, c. 50; and 41 & 42 Vict. c. 77, ss. 4 and 5, as to the sub- stitution of the rural Sanitary Authority for Surveyors and Highway Boards.) The 5 & 6 W. 4, c. 50, has been amended and extended by the 25 & 2(1 Vict, c. 61 ; and by sect. 44 of this latter act, which provides for the appointment of Highway Boards, all the provisions of the earlier act for widening, diverting, and stopping-up higlnvays are made applicable to highways paved, repaired, or cleansed under any local or personal act, except highways, which any railway company, or the owners, &c., of any canal, river, or inland navi- gation, are liable to repair or cleanse under any act of parliament. The Highway Act, 1864 (the 27 & 28 Vict. c. 101), and the 41 & 42 Vict. c. 77, also contain provisions, altering and amending the 5 & 6 W. 4, c. 50. It is not necessary to refer to these enactments at length. By sect. 21, how- ever, of the former Act, it is provided that when any highway board con- DOVASTON V. PxVYNE. 1401 siders any highway to be unnecessary for public use, they may direct the district surveyor to apply to two justices to vieAV it, and thereupon the like proceedings (including the appeal to quarter sessions, Rpai. v. Justices of Sur- rey, L. R. 5 Q. B. 87 ; Sd L. J. M. C. 145) may be taken as where an application is made to stop up a highway under the 5 & G W. 4, c. 50, except that the order to be made thereon, instead of directing the highway to be stopped up, must direct that it shall cease to be a highway which the parish is liable to repair, and the liability of the parish sliall cease accordingly. The same sec- tion contains a provision enabling the court of quarter sessions to direct that the liability of the parish to repair shall revive, if it appears at any time thereafter, on the application of any person interested in the maintenance of the highway, that fro7n any change of circumstances since the making of the order which freed the parish from liability, tlie highway in question has become of public use, and ought to be kept in repair by the parish, 41 & 42 Vict. c. 77, s. 24. The Highways and Locomotives (Amendment) Act, 1878, 41 & 42 Vict, c. 77, contains in sect. 24 analogous provisions wherebj', at the instance of any authority liable to keep any highway In repair, the Court of Summary Jurisdiction of the Petty Sessional Division may, after similar formalities, declare such highway unnecessai'y for public use, and that it ought not to be repaired at the public expense. There is also a like provision enabling the quarter sessions to direct that the liability of such highway to be repaired at the public expense shall revive.] Besides the -above enactments the Turnpike Acts contain provisions ajipli- cable to that class of Avays only. IV. As to the mode in which a hiyhioay is to he repaired. — At common law, the liability to repair all highways within a parish rests on the occupiers of the land thei-ein, 1 RoUe's Abr. 390 ; Austin's Case, 1 Vent. 183, i) ; R. y. St. George, Hanover Square, 3 Camp. 222; R. v. Netherthong, 2 B. & A. 179; IGuhitt V. Maxse, L. R. 8 C. P. 704; 42 L. J. C. P. 278 ; Reg. v. Bradfield, L. R. 9 Q. B. 552, where it was held that there was nothing in the fact of a road having been originally in 1789 set out in an inclosure award making it repair- able by the adjoining landowners, to prevent it from becoming by dedication implied from user, a highway repairable by the inhabitants at large ; and R. V. St. Benedict, 4 B. & A. 447, apparently to the contrary, is discussed.] 5 & G W. 4, c. 50. s. 27, I'egulates the mode in whicli a rate is to be made for that purpose, upon all property liable to be rated to the I'elief of the poor, and "such woods, mines, and quarries of stone or other hereditaments as have heretofore been usually rated to the highways," — that is to say, such woods, &c., as have been usually rated to the highways in the particular parish where the rate is made. Therefore, timber-woods, which had not for a num- ber of years, before and up to the passing of tlie act, been I'ated to the high- ways in the parish in which they were situate, were held not to be rateable after the passing of the act, although similar woods had always been rated in the neighbouring parislics and country generally, R. v. Rose, G Q. B. 153. So that property may be rateable in one parish, to the repair of the highways, whilst the same description of property is not so rateable in another. Where a place happened to be extra-parochial, it seemed doubtful how the repair was to be enforced, R. v. Kingsmoor, 2 B. & C. 190; and see Reg. v. Midiille, 4 Q. B. 240. [The 45 & 46 Vict. c. 27, extends certain provisions of the Poor Rate Assessment Act, 1869, to the Highway Kate ] The liability of the parishioners may indeed be suspeniled, and the burden 1402 DOVASTON V. pavnp:. imposed on other persons, under certain circumstances. But then, if those persons l)ecome in any way unable, or cease to bo compellable, to perform the duty of reparation, tjje dormant liability of the parisiiionors revives, Vounn V. , 1 Lord Kaym. 725; A', v. Sh^fflehl, 2 T. K. IOC; R v. Ox/onl- shire, 4 B. & C. IIU ; AV;/. v. LnnUmere, 15 Q. II. G8'J. Nor can tlic i»arish, l)y any airreement whatever, exonerate Itself from this inherent lial)ility, U. v. Mmjor of Lii'in-pin,!, .S East, 80. By 4 & 5 Vict. c. H'.) [amended by 34 & 35 Vict. c. 115, s. 15 and] continued by several acts, the last of which is [the 41 & 42 Vict. c. ur>j v. Justices of Wilts, 10 Q. B. D. 480; 52 L. J. M. C. (54; Justices if Lancashire v. Corporation if liochdale, 8 App. Cas. 494; 53 L. .1. ^L C. 5; Justices of West Ridimj v. The Queen, 8 App. Cas. 781; 53 L. J. M. C 41 ; Justices if Lancashire v. Xeinton Improvement Commissioners, 11 App. Cas. 4ir). It is further provided by sect. 15 that under certain conditions the county authority shall declare certain ordinary highways to be main roads, and ])y sect. 16 the same authority may apply to the Local Government Board to declare that certain roads which by sect. 13 are constituted main roads ought not to become, or should cease to be such. By sect. 7 of the same statute all expenses incurred ))y any highwiiy board in keeping in repair the highways of each parish within their district shall be deemed to have been incurred for the benefit of the several parishes within the district, and sliall be charged on the district fund. But if the highwaj- board think it just that by reason of any exceptional circumstances any par- ish or parishes should bear the expense of maintaining their own highways, they may divide their district into parts, and charge exclusively on each of such pai'ts (which must consist of more than one highway parish), the expenses payable by such higliway board in respect of maintaining and keep- ing in repair the highways situate in each such part.] DOVASTON V. PAYNE. 1403 The common law liability to repair all the highways situate within it, under which every parish lay, has been a good deal narrowed by statute 5 & 6 W. 4, c. 50, so far as respects roads constructed by private individuals, after the passing of that act. The 23rd section, which is not retrospective, B. v. Westmark, 2 M. & R. 305, enacts that no road made by a private person or corporation, or set out as a private drift-way or horse-path by the award of inclosure commissioners, shall be deemed a highway repairable by the parish, unless three months' notice be given to the surveyor of the intention to dedicate, and unless it be substantially made, to his satisfaction, and that of two justices, who are to view and certify, and their certificate is to be enrolled at the next sessions. The surveyor, on receipt of the notice, is to call a vestry, and if they deem the new road not of sufficient utility, the question is to be determined by the next special sessions for the highways. Hence it appeal's that the sort of dedication which shall suffice to entitle the public to a road, will, for the future, be different from that which must take place in order to burden the parish Avith the duty of repairing it. See li. V. Leake, 5 B. & Ad. 469; R. v. \Vru/ht, 3 B. & Ad. 683; li. v. Mellor, 1 B. & Ad. 32; Grand Surrey Canal Co. v. Hall, 1 M. & G. 393; and accordingly in Boberts v. Hunt, 15 Q. B. 17, it was held that a road dedicated to, and used by the public, is still a public highway, although the requirements of the 23rd section of the statute have not been complied with, so as to make it repair- able by the parish; see also Fawcett v. York and North ]\Hdland Eaihrnii Co., 10 Q. B. 614 (rt) ; [and li. v. Thomas, 7 E. & B. 399, where it was held that a non-compliance with tlie provisions of this section did not operate to relieve a parish from the liability to repair a road which had been originally made by turnpike trustees under a temporary act and had been used by the public, and repaired by the parish, both before and after the expiration of the act. An appeal by the persons dedicating the highway lies to the quai'ter ses- sions against an order by justices, under this section, adjudging that a new road is not of sufficient utility to justify its being kept in repair by the parish, R. V. Justices of Derbyshire, 1 E. B. & E. 69. St7'eets which become highways within districts to which the Public Health Acts have been applied, are placed by those statutes under the management and control of the sanitary authority. And when any street, not being a highway at the time when the Public Health Acts are applied to the district in which it is situated, is sewered, levelled, paved, flagged, and channelled to the satisfaction of the sanitary authority, the sanitary authority may, by notice in writing put up in the street, declare it to be a highway, and there- upon it becomes a highwaj'' repalral)le under the rates levied under these acts. The sole proprietor of the street, or if there is more than one, the majority in num1:)er of the proprietoi's, may, however, object by notice in writing to such declaration, and so interfere with the action of the sanitary authority. See sects. 68 and 70 of the 11 & 12 Vict. c. 03, and sect. 42 of the 21 &. 22 Vict. c. 98, 38 & 39 Vict. c. 55, s. 149. Hesketh v. Local Board of Atherton, L. R. 9 Q. B. 4, 43 L. J. Q. B. 32. The term " highway," as used in the sec- tions means highways " repairable by the inhabitants at large; " see the 15 & 16 Vict. c. 42, s. 13, which words are used in contra-distinction to "repair- able by individuals ni/ioin' tninra-." (tilismi v. .Maynr if Prc'^/aii, !>. R. 5 Q. H. 218; and see Hirst v. Hilifax Local Board, L. R. 6 Q. B. LSI, 40 L. J. jNI. C. 43. It is by no means clear whether these provisions were meant to supersede altogether the enactments of the 23rd section of the 5 & 6 W. 4, c. 50, where 1404 DOVASTON V. I'AYNE. the new hij^hwuys are urban hijrhways or streets, or wliether it was intended tiiat, in cases of dedication l)y |>rivate persons or corporations, tlie uiacliinery both of this act and of the Puijlic Health acts should l)e applied. See lieg. v. Inhahs. of Dukinfidd, 4 B. & S. 158.] Special provisions have been made by the Legislature respcctlti;^ tlic rc|)air of roads wiiicli liappen to pass alon;; the boundary line of two jiarislies, so as to have one side in one parisii, and the other side in another parish. See 5 & 6 \V. 4, c. 50, ss. 58, 51), (;0, «1 ; Rffj. v. Perkins, 14 Q. B. 2L".t. It has been said that the common-law liability to repair hiiiliways, may be imposed on other persons tlian tiie parishioners at hirjje under certain cir- cumstances. These are — 1. Where the owner of the land through which a highway passes, incloses, in which ca.se he becomes liable to repair as much of it as he has inclosed, Sir E. Duncuinbe's Case, Cro. Car. 3(;(>; tlie reason of this is that tiie inclo- sure prevents the public from exercising their right, which has been before spoken of, riz., that of going on the adjacent land wiien the highway is im- passable; and the repairs to whidi he is subjected are stricter than the lia- bility even of tlie parish, for tlie parish is oidy obliged to keep the road in , tlie .same state in which it has always been; whereas the person who has inclosed, is bound to maintain . 21. It is the duty of persons diverting a highway under statutory powers to take proper pi'ecaution by fencing, or otherwise, to protect passengers at the point of diversion; Hunt v. Taylor, 14 Q. B. D. 918, 54 L. J. Q. B. 310. We have already seen (ante, p. 167) that if a highway is dedicated to the public with a dangerous obstruction on it, or excavation in it or near it, no action can be maintained against the person dedicating for an injury caused thereby.] 2. The burthen of repair may be cast on a particular person by prescrip- tion; this prescription, if alleged against a corporation, may be general (see B. V. Birmingham and Gloucester Baihoay Co., 3 Q. B. 223, where the question was discussed whether an indictment for non-repair would lie against a cor- poration, and held that it would; and see B. v. Great Northern Bailway Co., 9 Q. B. 315) ; but, if alleged against an individual, some consideration for it must be shown, ex (jr., the having lands holden by such service, 1 Hawk. P. C. c. 76, s. 8. See B. v. Kerrison, 1 M. & S. 435; 13 Rep. 33; Bac. Abr. High- way, F. ; B. v. St. Giles, 5 M. & S. 260 ; and Priestley v. Foulds, 2 M. & G. 175. And when lands holden by such charge are conveyed to several, the charge is not apportioned among them, but each is liable to the whole repairs, and must have contribution from the others, Begina v. Duchess of Bncklngh, 1 Salk. 358; A', v. Buckeridge, 4 Mod. 48; 3 Vin. Abr. Apportionment, 5, pi. 9. [So if there can be a prescriptive liability of one parish to repair highways in another parish, which is doubtful, it can not arise except on sufficient con- sideration, Reg. V. Ashhy Folville, L. R. 1 Q. B. 213. As to exemption by immemorial custom, see Reg. v. Rollett, L. R. 10 Q. B. 469.] Whetiier the obligation to repair a highway ratione temtrce must of neces- sity be immemorial, has been doubted. But see R. v.. Haynian, Moo. & M. 402 ; and per Taunton, J., R. v. Middlesex, 3 B. & Ad. 210. See the able argu- ment of Mr. Cresswell on this subject, in R. v. Scarisbrick, 6 A. & E. 513, where he contends that the true rule is that a highway is prima facie pre- sumed to be immemorial ; and therefore the origin of obligation must usually be so too. But that where the origin of the road can be shown, so may that of the obligation ; and he refers to Mayor of Lyme Regis v. Henley [3 B. & Ad. 77, 1 Bing. N. B. 222], to show that such an obligation is capable of a modern origin. The obligation to repair ratione tenures seems to be enforceable in the first instance against the occupier, who is the only person known to the public, and who has his remedy over against the owner. Baker v. Greenhill, 3 Q. B. 148 ; and qncere, whether the owner of lands bound to repair ratione temtroi is liable to be indicted as such though he be not in occupation, and the lands be occupied by another; see R. v. Sntton, 3 A. & E. 597, where lands so charged with repairs were occupied by the guardian in socage of an infant eleven years old, who had inherited them : it was licld : 1. that the infant was not indictable as oAvner : 2. that the guardian was. Tiio liability to repair, whether arising ratione teniira;, or otherwise, is at 1406 DOV ASTON V. J'AVNK. an end wlien the road has been totally destroyed by the act of f Jod ; as, for instance, when it has been washed away by the action of the sea, lieg. v. Bamber, 5 Q. B. 279; Iie(j. v. Hornsea, 23 L. J. M. C. 59; Dearsley C. C. K. 291, S. C. ; [but see liey. v. Greenhuw, 1 Q. B. 1). 703, as to what amounts to the act of God.] If a road had been widened, the mode of doinir wliidi is now provided l)y 5 & fi W. 4, c. 50, s. 82, the parisli must at common hiw have repaired the new part thereof, li. v. West Ridimj of Yorksfiiit', 2 Kast, 353; st. 4, G. 4, c. 95, s. G8. But now, wlien a road is widened, diverted, or turned, tlie parish must repair the wliole : and means are provided for enforcing a rateable con- tribution from the persons previously liable to the reparation, 5 & G \V. 4, c. 50, s. 93. And see 4 G. 4, c. 95, and li. v. Inhahitants of Burton, 11 A. & K. 343. By sect. 02 of the said act, a mode is chalked out of converting a hi<;hway, repairable by a corporation, or individual, into a i)arish highway, and llxing the compensation to be paid l)y tlic party to Ije relieved from the onus of repairing. 3. The inhabitants of a particular township witliin a parish, may, lnj ms- tom, be bound to repair the highways lying williin its own Ijoundary, A', v. Ecclcsfielil, 1 B. & A. 348; altliough it is not proved alUrmatively tliat there are, or have been, ancient highways in the township, li. v. Bdrnoldsirirf,; 4 Q. B. 499; Rrtj. v. AnUh'y, 3 Q. B. D. 255. In like manner, a parish may, by immemorial custom, be charged with the repair of a briilgc instead of the county. B. v. IIemlon,\ B. & Ad. G28 ; but [prol«ibly] not witii the repairs of a highway out of its own boundary, R. v. *SV. Giles, 5 M. & S. 2C0; 7?. v. Machynlleth, 2 B. & C. IGG; [/.V7. v. Ashhy Folnlle, L. R. 1 Q. B. 213.] By such a custom the township is placed on the same footing as a parish, with i-espect to the highways within it, whether new or old, R. v. Hatfield, 4 B. & A. 75; R. v. Eastrinyton, 5 A. & E. 7G5 ; A", v. I/eayc, 2 Q. B. 132; Rey. V. Ardsley, 3 Q. B. 1). 255; so a particular tything may be liable by custom to repair the roads within it, Rey. v. East Mark, 11 Q. B. 877. See 5 & G W. 4, cap. 50, sect. 5. See further, as to highways, and particularly as to pleadings relating to them, the notes to R. v. Stouyhtun, 2 Wms. Saund. 462: and as to bridges, see stats. 22 II. 8, cap. 5; 43 G. 3, cap. 59, .sect. 5; and 5 & 6 VV. 4, cap. 50, sects. 21 & 22. [Bey. v. Upper Half Hundred of Chart, L. R. 1 C C R. 237; 38 & 39 Vict. c. 55, s. 147; 41 & 42 Vict. c. 77, ss. 21, 22; Bey. v. Somerset- shire, 38 L. T. 452.] The above observations havp, to avoid confusion, been confined to high- ways over land. But it is clear that the channels of public navigable rivers were always highways. See Mayor of Colchester v. Brooke, 7 Q. B. 339, to which case the reader is referred, as containing much useful information upon the extent of the rights of the public iu navigable tidal rivers. [See also Atty.-Gen. v. Lonsdale, L. R. 7 Eq. 377, 38 L. J. Ch. 335; Same v. Terry, L. R. 9 Ch. 423; Oriyinal Hartlepool Collieries Co. v. Gihh, 5 Ch. D. 713,46 L. J. Ch. 311. If a permanent obstruction be placed in a navigable river, the persons entitled to use the river as a highway may remove it, Eastern Counties Railway Co. v. Dorliny, 5 C. B. N. S. 821.] Up to the point reached by the flow of the tide the soil was presumably in the crown ; above that point, whether the soil at common law was in the crown or in the owners of adjacent lands, was a point perhaps not free from doubt; there was at least a jurisdiction in the crown to reform and punish DOVASTON V. PAYNE. 1407 nuisances therein. It was therefore at common law illegal to erect weirs, &c., so as to obstruct the channel. Those prior to Edward the First's reign are, however, legalised by the construction of 25 Edw. 3, c. 4, which pro- vided for the destruction of those levied subsequently, Williams v. Wilcox, 8 A. & E. 3U. [RdUc v. IVhi/te, L. R. 3 Q. B. 286, 37 L. J. Q. B. 105; Leconfield V. Lonsdale, L. K. 5 C. P. (557, 39 L. J. C. P. 305.] What is a highway ? — A public highway is one under the control of, and kept up by, the public, and must either be estab- lished in a regular proceeding for that purpose, or generally used by the public for twenty years, or dedicated hy the owner of the soil and accepted by the proper authorities. See Kennedy V. Williams, 87 N. C. 6. "The primary and fundamental object of all public highways is to furnish a passage-way for travellers in vehicles or on foot, through the country ; " Kuger, C. J. in People V. Squire, 107 N. Y. 593. Highways how created. — First, a highway may be created by the voluntary act of the owner of the soil, provided such dedi- cation of land by its owner is accepted by the public, acting through its proper representatives. To establish a public way by act of the owner, two circumstances must unite. In the first place, that owner must clearly dedicate the land to the use of the wiiole people ; in the second place, that people must accept the land so dedicated to them; Cook v. Harris, 61 N. Y. 448; Rozell V. Andrews, 103 N. Y. 150 ; Booraem v. North Hudson County Railway Company, 39 N. J. Eq. 465 ; In re Alley, 104 Pa. St. 622; Bell v. City of Burlington, 68 Iowa 296; Shell- house V. State, 110 Ind. 509 ; Kennedy v. Williams, 87 N. C. 6 ; Morse v. Zeize, 34 Minn. 35 ; Hayward v. Manzer, 70 Cal. 476 ; Mayberry v. Standish, 56 Me. 342 ; Parsons v. Trustees, 44Ga. 529; Scott v. Cheatham, 12 Heiskell 713; Folsom v. Town of Underbill, 36 Vt. 580 ; McCain v. State, 62 Ala. 139. What is an act of dedication ? — It is ordinarily a question of fact whether the act of the land-owner constituted a dedication. The thing to be sought after is whether he disclosed an appar- ent intention to devote his land to the public use. What his secret intention may have been is not so much to be considered as the intention he disclosed to all the world ; City of Indianap- olis V. Kingsbury, 101 Ind. 200. It will be difficult, therefore, if not impossible, to lay down any one rule applicable to all cases. Each individual case will have to be decided by itself. 1408 DOVASTON V. TAYNi:. taking into coiisidcnition all tlie attendant circumstances, the condition of the respective parties, and liic ads, declarations, and intentions of the hmd-owner as nianifcslfd l)y his conduct. For it is largely on the ground of an esto])pel in pais tliat the principle of dedication rests. See Vanatta v. Jones, 13 X'rooni 501; Cook V. Harris, ()1 N. Y. 44H ; State v. Otoe County,*) Nehraska 120; City of Indianapolis v. Kingsbury, 101 Ind. 200. But no particular formality is necessary in order to show dedi- cation ; Morgan v. Chicago cS: Alton H. R. Co., O(') U. S. 710. It may be by parol ; Cook v. Harris, Gl N. Y. 448; Harding v. Jasper, 14 Cal. (J42 ; Raker v. Pratt, 15 111. 508; Dover v. Fox, 9 H. Monroe 200 ; Carter v. Portland, 4 Oregon 330. In fact, an// act or conduct of the land-owner showing an intention to dedicate will be sullieient ; Chica<;o r. \Vri7 ; Livermorc r. Maquo- keta, 35 Iowa 358; Mansur r. Ihiugliey, 00 Ind. 304; Case v. Favier, 12 Minn. 80; Pencpiitc r. Lawrence, 11 Ohio St. 274. Yet certain acts of a land-owner have been held to constitute a strong, if not conclusive, presumption of an intention to dedi- cate. Perhaps the most common case is that of one selling lots of land or house on a map, a plat with a road running by them, and designated as a street. It is held that this is the strongest evidence of dedication. See Matthicssen & Ilegeler Zinc Co. v. City of La Salle, 117 111.411; Rathmau v. Norenberg, 21 Nebraska 467; Eastland v. Fogo, 66 Wisconsin 133; Fulton v. Town of Dover, 6 Central Reporter 848 (Court of (lianceiy of Delaware); City of Iiulianapolis v. Kingsbury, 101 Ind. 200; III re Opening of Pearl St., Ill Pa. St. 565; Hawley v. Balti- more, 33 Md. 270 ; Clark v. City of Providence, 10 R. 1. 437 ; Briel v. City of Natchez, 48 Miss. 423 ; Tinges v. Mayor, 51 Md. 600; Bissell v. N. Y. C. R. R. Co., 23 N. Y. 61. But see Cent. Land Co. v. City of Providence, 1 New England Rep. 873. So a dedication of land can be made subject to a right to des- ignate a portion thereof for use for railroad purposes, and when such portion has been devoted to railroad purposes the public use will be suspended as long as that portion is used for railroad purposes ; Ayres v. Penn. Ry. Co., 19 Vroom 44. And wherever dedication on a condition, the condition must be fulfilled before DOVASTON V. I'AYXE. 1409 the dedication becomes operative; Creamer c. McCuiie, 7 Mo. Ap. 91 ; St. Louis v. Meier, 77 Mo. 13 ; Brougliner v. Clarks- burg, 15 W. Va. 394. But merely opening a space or taking down a fence will not be a dedication ; Rozell v. Andrews, 103 N. Y. 150; Bowers v. Suffolk Man. Co., 4 Cush. 332; People V. Jones, 6 Mich. 192 ; Barker v. Clark, 4 N. H. 383 ; Saulet v. City, 10 La. Ann. 81 ; Cyr v. Madore, 73 Me. 53. And see, also, Gowen v. Philadelphia Exc. Co., 5 W. & S. 141 ; Valentine v. Boston, 22 Pick. 75; Smith v. State, 3 Zab. 130; White v. Bradley, 66 Me. 254. A dedication may be revoked before acceptance ; Cook v. Harris, 61 N. Y. 448. But when accepted it is irrevocable ; Shanklin v. City of Evansville, 55 Ind. 240 ; City V. Canavan, 42 Cal. 541. Who may dedicate and what can be dedicated. — Having con- sidered what will effect a dedication, it will now be necessary to consider who may make such dedication and what property can be so dedicated. Only the owner of the soil can dedicate it to the public ; Kennedy v. Williams, 87 N. C. 6 ; Bangan v. Mann, 59 111. 492; Harding v. Town of Hale, 83 111. 501; City of Hannibal v. Draper, 36 Mo. 332 ; McBeth v. Trabue, 69 Mo. 642. Hence an executor could not make a dedication ; Paret V. Bayonne, 11 Vroom 333. But if the will authorized him to he might ; Kaime v. Harty, 73 Mo. 316. Nor could a mortgagor unless the mortgagee assented; Hoole v. Attorney General, 22 Ala. 190. A corporation may make a dedication ; Williams v. N. Y. & N. H. R. Pt. Co., 39 Conn. 509 ; Story v. N. Y. E. Co. R. R., 90 N. Y. at p. 145. But a mere occupier of government lands cannot ; Smith v. Smith, 34 Kan. 293 ; Gentleman v. Soule, 32 111, 271. Nor a person under a disability; State v. O'Laughlin, 19 Kansas 504. A trustee may dedicate in accord- ance with the trust ; Prudden v. Lindsley, 29 N. J. Eq. 615. The fact" that the way is not open at both ends will not pre- vent it from being capable of dedication. A cul de sac may become a highway ; People v. Kingman, 24 N. Y. 559 (over- ruling Holdane v. Cold Spring, 23 Barbour 103) ; People v. Jack- son, 7 Mich. 451; Sheaff v. People, 87 111. 189; Yandemark v. Porter, 40 Hun 397 ; Bartlett v. Bangor, 67 Me. 460 ; State v. Bishop, 39 N.J. 226; Schatz v. Pfeil, 56 Wis. 429. Land may be dedicated for public squares ; Abbott v. Cottage City, 143 jMass. 521 ; Methodist Episcopal Church v. Hoboken, 4 Vroom 13 ; Rowan v. Portland, 8 B. Mon. 232 ; Princeville v. 1410 DO V ASTON V. I'AVXK. Aiiteii, 77 III. 325 ; Mowry v. City of Providence, 10 R. I. 52. A dedication must be to all the public ; Mowry v. City of Prov- idence, 10 R. I. 52; Tupper v. Hudson, 4G Wis. G40 ; Trerice V. Barteau, 54 Wis. 99. What is acceptance by the public? — In considering the other branch of the question, it will again a[)pear that it is mainly a question of fact whether the dedication by the land-owner was followed by that acceptance on the part of the public wliich it has been seen is necessary to constitute the land a highway. Here, too, each case must be determined by its own circum- stances. As land need not be dedicated ])y its owner in any particular manner, so the acceptance need not be proved by any one act. Still, it is somewhat easier to specify what will be an acceptance than what a dedication. There are certain acts so clear and unequivocal as to leave no doubt of an acceptance, — the expenditure of money on a road, paving it, repairing it, and all such acts, the proper municipal authorities indicating that they have assumed control of the land, are unmistakable evi- dence of acceptance by the public ; State v. Kisele, 3-3 N.. W. Reporter, 785 ; People v. Loehfelm, 102 N. Y. 1 ; Ross v. Thomp- son, 78 Ind. 90; Parsons v. Trustees, 44 Ga. 529, It is from the very fact that this liability of a town to repair the highways attaches that clear evidence of acceptance is necessary ; Bowers V. Suffolk Man. Co., 4 Cush. 333 ; Hyde v. Jamaica, 27 Vt. 443. So, too, a long continued use of the road by the public will be sufficient evidence of acceptance ; indeed, this long continued use with the knowledge of the land-owner would be strong evidence of the dedication as well as the acceptance ; Ely v. Parsons, 55 Conn. 83 ; Veale v. City of Boston, 135 Mass. 187 ; Brakken v. Minneapolis Ry. Co., 29 Minn. 41 ; People v. Blake, 60 Cal. 497 ; People v. Loehfelm, 102 N. Y. 1 ; Carr v. Kolb, 99 Ind. 53 ; Cora, of Pa. v. Moorehead, 10 Central Rep. Oil ; Kinnare v. Gregory, 55 Miss. 612; City v. Canavan, 42 Cal. 541 ; Buchanan v. Curtis, 25 Wis. 99; Ross v. Thompson, 78 Ind. 90. But see Peyton v. Shaw, 15 111. Appeals 192, where twenty-years user was held not conclusive evidence of dedication. Abandonment of highways. — A public highway may be given up and lost by discontinuance. To decide whether there has been an abandonment, we must consider all the facts and all the action of the public. The public may, of course, release their easement to travel over another's land and in such case the DO V ASTON Y. PAYNE. 1411 land will revert to the abuttino- owner unless he claims throuQ-h one wlio has clearly reserved the ownership of the fee in him- self. Adopting one road to travel on and ceasing for a long time to use another may operate as a discontinuance; Shelby V. State, 10 Hump. 165 ; Grube v. Nichols, 36 111. 92 ; Railroad. V. O'Conner, 37 Ind. 95 ; Webber v. Chapman, 42 N. H. 326. But until the road is actually needed for use, non-user will not show a discontinuance ; State v. Leaver, 62 Wis. 387 ; Reilly V. City of Racine, 51 Wis. 526. So if the road has been fenced up and improved by the owner of the land for over twenty years, it will be evidence of abandonment ; Holt v. Sargent, 15 Gray 97. But the city cannot abandon a part of a street for twenty years, allow the adjoining owner to use it for that time, then provide it shall revert to the city ; Glasgow v. City of St. Louis, 87 Mo. 678. As a result of the doctrine that the high- way belongs to the abutting owners, subject to the public use of it for the ordinary purposes of a highway, comes the other rule of law established in a larger part of the states that a con- veyance of land having as one of its bounds " to a street," " to the highway," or some equivalent term, will convey the fee to the centre of the street, unless the language of the de- scription is so qualified as to show clearly that the soil of the highway is reserved from the grant by the grantor ; Mat- thiessen & Hegeler Zinc Co. v. City of La Salle, 117 111. 411; City of Indianapolis ik Kingsbury, 101 Ind. 200; Bliss V. Ball, 99 Mass. 597; Palmer v. Dougherty, 33 Me. 507; Peck V. Denniston, 121 Mass. 17 ; Kings County Fire Insur- ance Co. V. Stevens, 87 N. Y. 287, when Andrews, C. J., says, "It is generally conceded that a grantor of land abut- ting on a highway may reserve the highway from his grant. But the presumption in every case is that the grantor did not intend to retain the highway, and such reservation will not be adjudged, except when it clearly appears from the language of the conveyance that such reservation was in- tended;" Hamlin y. Pairpoint Mass. Co., 141 Mass. 51; He- gar V. Chicago & N. W. R. R., 26 Wis. 624 ; Paul v. Carver, 26 Pa. St. 223 ; Spackman v. Steidel, 88 Pa. St. 453 ; Nich- ols V. Suncook Man. Co., 34 N. H. 345; Witter v. Harvey, 1 McCord, 67 ; Chatham v. Brainerd, 11 Conn. 69 ; Champlin V. Pendleton, 13 Conn. 23; Johnson v. Anderson, 18 Me. 76; Adams v. Saratoga & Washington Railroad Co., 11 Barbour 1412 DOVASTON V. pavkp:. 414 ; Florida Southern Ky. Co. v. Brown, 1 Southern Reporter, 512; Rich f. City of Minneapolis, 35 N. W. Rep. 2. Yet the grantor can reserve the soil of the highway to himself by using clear language. What will amount to such a reservation is a (jucstion of some dilliculty and there is a diversity in the decis- ions of the different states. In Massachusetts and in New York the presumption of title extending to the centre of the street seems to be one more easily iel>utte(l than in the other states. By legislation the fee of the soil in almost all the streets in New York city is vested in the city. In Knglish v. Brennan, GO N. Y. 000, it is stated that the presumption that the grantor intended to convey his intiMi'st in the street is much less strong in large cities. In Munn v. Worrall, 5^1 N. Y. 44, an exception "saving and excepting from the prenuses hereby conveyed all and so much and such part and parts thereof as has or have been lawfully taken for a public road or roads" was held sulhcient to rebut the presumjition of a con- veyance of the fee. In Kings Co. Fire Ins. Co. v. Stevens, S7 N. Y. 2S7, where tlu' description was beginning at a jioint on the southerly side of road running thence southerly, thence westerly, thence northerly to the road, thence along said road to the point or place of beginning, it was held thai the grant was bounded by the southerly side (»f the road and did not extend to the centre of the highway. Yet in Vail v. Long Island R. R. Co., 100 N. Y. 283, where land was conveyed to a town with the usual covenants of warranty "to be used as a highway, with all the jjrivileges thereto belonging, for such purpose only, with the appurtenances and all the estate, title, and interest of the said parties of the first part therein," it was held that the deed conveyed the fee of the land and not the easement merely. In Hamlin v. Fairpoint Man. Co., 141 Mass. 51, a description " to the land of Howland street and thence easterly in line with said street " was held not to convey to the centre of the street. In Sibley v. Ilolden, 10 Bickering 240, a description beginning at a stake on the southerly side of a road, thence to said road, thence by said road easterly, was held to exclude the highway. In Smith v. Slocomb, Gray 30, a similar description was held to exclude the high- way. For other cases where the description was held to rebut the presumption of an intent to carry title to the centre of the highway, see Baltimore & Ohio R. R. Co. v. Gould, 7 Central DOVASTON^ V. PAYNE. 1413 Reporter 379 (Court of Appeals of Maryland); Jackson v. Hathaway, 15 Johns. 447 ; Wetmore v. Law, 34 Barber 621 ; Sunderland v. Jackson, 32 Me. 83 ; White's Bank of Buffalo v. Nichols, 64 N. Y. 65 ; City of Chicago v. Rumsey, 87 111. 348 ; Hughes V. Providence & Worcester R. R., 2 R. I. 508 ; Higbee V. C. & A. R. R., 19 N. J. Eq. 276 ; Wellman v. Dickey, 1 New Eng. Rep. 342 (Supreme Court of Maine). Ownership of soil of highway. — Oidinaril}^ the soil of the highway belongs to the abutting property. The interest which the public has in the highway is a right of way on land of another for public travel while the abutting property owner still retains his proprietorship of the soil, subject, hoAvever, to the right of the public to its undisturbed use in such manner as public streets are usually used. For authorities holding that the ownership of the fee of the soil in a highway remains in the owner of the land, see Town of Winchester v. Capron, 63 N. H. 605; Robert v. Sadler, 104 N. Y. 229; Pittsburgh Railway Co. v. Commonwealth, 104 Pa. St. 583 ; Webber v. Eastern Railway Co., 2 Metcalf 147 ; Tucker v. Eldred, 6 R. I. 404 ; Woodruff v. Neal, 28 Conn. 165 ; Town of Old Town v. Dooley, 81 111. 255 (where the right to get water from springs flowing along the highway was denied). It would, of course, be competent for the municipal authori- ties to take the fee of the land, as well as an easement over it if they so elected. But in order to rebut the presumption that an easement merely was taken, strong and conclusive evidence would be required. In New York city in almost all the streets the city does own the fee, but the act authorizing them to take such fee expressly provides that they shall hold the same in trust to keep the streets open as streets. The interest the public has in a highway. — Highways are designed to facilitate travel to and fro, and communication between different points. For this purpose, and for this pur- pose only, are they constructed and operated. It has been seen that the ownership of the soil is, except in special cases, in the abutting owner. Hence, subject to this easement of the public, the land in the highway is his. The late decision of the Court of Appeals, of New York, in Robert v. Sadler, 104 N. Y. 229, brings out clearly this right of ownership of the abutting owner and is valuable in reviewing the authorities. It was a case where pits were dug in the sidewalk to obtain gravel to fill up 1414 DOVASTON V. I'AVNK. the roadway. In other words, gravel of the owner was taken, to be replaeed by poorer and eheajjcr gravel. The eonrt held this a trespass and vigorously upheld the right of the adjoining owner. Horse railroads and steam railroads. — With the introduction of horse railroads a new and important question came before the state courts. Were the publii: authorities justified in grant- ing to privat(! corporations the right to use the streets for their railroad? The land-owner whose property had been taken in invitum for the purposes of a highway iiad been duly (•oMi[)en- sated. But did such eonipensation havi; in contemplation such a new and novel use of the highways as this? With general unanimity it has been decided that a horse railroad is but a legitimate use of the highway; Ilinchman /'. Paterson Horse R. R. Co., 17 N. J. Eq. 75; Elliot v. Fair Haven .^ Westville li. Iv. Co., 32 Conn. 570; Attorney-General /•. Metropolitan R. R., 125 Mass. 515; Market St. R. R. Co. i-. Central Railway, 51 Cal. 583; Ohio Street Railway v. CumminsviUe, 14 (). St. 523 ; Briggs v. Lewiston ik, Auburn Horse R. R. Co., 4 New England Reporter 546 (Supreme Court of Maiiu-) in which case the fact that the cars were to be run l)y electric motor was held to make no difterence. A New Yoik ease lays down a contrary ruling; Craig v. Rochester City & Brighton R. R. Co., 3*.> X. Y. 404. The court say, "The use of a railroad no matter how operated, whether by horse or steam power, necessarily includes to a certain extent an exclusive occupation of a portion of the highway and a permanent occupation of the soil." Vet the same court soon afterwards held in Kellinger v. Forty -second Street & Grand St. Ferry R. R. Co., 50 N. Y. 206, that where the city owned the fee of the soil the abutting property owner was not damaged. See, also, Mahady v. Bushwick R. R., 91 N. Y. 148 ; and People v. Kerr, 27 N. Y. 188. A steam railroad is generally regarded as a use of tlie high- way not within the contemplation of the parties when the land was taken, and so not a legitimate use of the highway. The New York courts have uniformly laid down the doctrine that to permit a railroad operated by steam to use the highway is to impose on the land a new and additional burden to the ease- ment of the public, and entitles the land-owner to additional compensation ; Williams v. N. Y. Cent. R. R., 16 N. Y. 97 ; Henderson v. N. Y". Cent. R. R., 78 N. Y. 423 ; Uline v. N. Y^ C. DOVASTON V. PAYXE. 1415 & H. R. R. Co., 101 X. Y. 98; where Earl, J., says: "If the railroad be built upon or over a highway the public right or license must be obtained not only, but so far as individuals' own private lights or interests in the highway or the soil ^hereof, they must also be lawfully acquired ; ... as to them and their rights the railroad is unlawful, a continuing nuisance which they can cause to be abated." In his dissenting opinion in Pierce v. Drew, 136 Mass. 75, Mr. Justice C. Allen says that in Massachusetts it is an open question whether a railroad could be laid on the highway without indemnifying the owner of the fee. In accord with the New York decisions are Grand Rapids & Indiana R. R. Co. v. Heisel, 38 Mich. 62 ; Stanley v. City of Davenport, 6 N. W. Rep. 706 ; Hegar v. Chicago & N. W. R. R., 26 Wis. 624 ; I. B. & W. R. R. Co. v. Hartley, 67 111. 439 ; Kaiser v. St. Paul, S. & T. Falls R. R. Co., 22 Minn. 149 ; Kuche- man v. C. C. & D. R'y- Co., 46 Iowa 366, a case containing a valuable review of the authorities. C. G. & B. R. R. Co. v. Renfroe, 58 Mo. 265. Opposed to the New York cases are Brainard v. The Missisquoi R. R. Co., 48 Yt. 107 ; Colorado Cent. R. R. Co. v. Mollandin, 4 Colorado 154. See, also, the elaborate opinion of E. Rediield, C. J., in Hatch v. Vermont Cent. R. R. Co., 25 Vt. 59. And for a general collection of the authorities, see Pierce on Railroads, pp. 232 to 242. Elevated railroads, underground roads, telegraph poles, gas pipes. — We are confined to the jurisprudence of one state for all our law on the subject of elevated railroads ; but the decisions in New York were so cautiously and carefuU}- considered that the}' will doubtless obtain in other jurisdictions when similar roads are constructed there. By Story v. N. Y^. Elevated Rail- road Company, 90 N. Y. 122, it was established that the erection of an elevated railroad fifteen feet above the surface of the street, supported upon columns placed along the outer edge of the sidewalks, was destructive of the use of the street as such, and would violate the state constitution, unless compensation was made to plaintiff for his property thus taken. See opinion of Danforth, J., at p. 161 : " The public purpose of a street re- quires of the soil the surface only. Very ancient usage permits the introduction under it of sewers and water pipes, and upon it posts for lamps. Of these things an abutting OAvner could not complain, but he is not required to hold his peace in the 1410 UOVASTON V. I'AYNK. presence oi siu-h an iTL-clioii as is tlueateiicd \>y tlu- defeudaiit." The case of Lahr v. The Metiopolitaii Elevated Uaihvay Com- pany, 104 N. V. 208, while lealliiininy^ the principle of law laid down by the majority of the court in the Story case, also settles definitely that it does not affect the right of the abutting owner to recover daniao-es that he owns oidy an easement in the street, not the fee. As to whether abutting owners on streets, not opened under the Act of 1813, where the city owns the fee, can similarly recover damages or maintain an action for an injunc- tion, there can be little doubt, if the point is ever seriously urged as a defence by the elevated railroad companies, that the principle laid down in the two ciuses cited will be followed, and all abutting pro})erty owners })e allowed a remedy provided they can show any injury to their property. lint it must still be regarded as an open question whether an abutting owner ean recover for injury to his {)roperty due to noise. Two courts of etjual standing have reaehed oftposite conclusions on this point, and, until settled 1)\ the eonil of last resort, tlie matti-r nnist remain a mooted one. See Peyser v. Metropolitan I'.levated Railway Co., 13 Daly 12:^, where noise was held to be but an ordinary use of the street ; Taylor v. Metropolitan Elevated Ry. Co., 55 N. Y. Su[)erior 555, allows a recovery. The New York Court of Appeals has very recently rendered a decision l)y which it would appear that the construction of an luiderground railway may be a violation of the rights of an abutting pro})erty-owner in the Matter of N. Y. District Ry. Co., 107 N. Y. 42. Telephone poles. — There is great diversity in the few decis- ions on the (piestion whether a telephone company can be given the right to use the highway for the erection of its poles without compensating the adjoining property owners. In Pierce V. Drew, 136 Mass. 75, the matter is elaborately discussed, and the majority of the court say that this would not be the imposi- tion of a new burden on the land already taken for the use of the public. Two judges dissent in a strong and carefully consid- ered opinion. In accord with Pierce v. Drew are the cases, Julia Building Association v. Bell Telephone Company, 13 Mo. App. 477; and in Dusenbury v. Mutual Telegraph Co., 11 Abb. N, C. 440 ; and Tiffany v. The U. S. Illuminating Co., 67 How. Pr. 73, special term decisions of two New York courts have denied this right, and this is more noticeable because in one, at least, of the DOVASTON V. PAYNE. 1417 cases the abutting property owner did not own the fee of the street. Board of Trade Telegraph Co. v. Barnett, 107 111. 507, decides that the abutting property owner must be compensated where he owns the fee of the street. The municipal authorities have the right to authorize gas com- panies to lay their pipes in the soil of the highway, and to lay water pipes and to build sewers ; Commonwealth v. Lowell Gas Light Co., 12 Allen 75, where Bigelow, C. J., says: "The right Avhich the defendants have is only to use land, the whole bene- fit of which has been previously taken from the owner and appropriated for a public use, in such manner that no nuisance shall be committed, no disturbance be created in the easement of the public, and no injury done to abutting owners of private property." See, also, Traphagen v. Mayor, etc., of Jersey City, 29 N. J. Eq. 206 ; Cone v. City of Hartford, 28 Conn. 363 ; Mil- hau V. Sharp, 15 Barbour, remarks of Edward, P. J., at p. 210 : " No one has ever seriously questioned the right of the city to authorize their use for such purpose ; " yet in Bloomfield Gas Light Co. V. Calkins, 62 N. Y. 386, it has been decided that in a country town tliere would be a right of compensation. Various other obstructions to the highway. — The use of the highway, by both the public and abutting property owners, must be a reasonable use with due regard to the rights of all parties. As highways are established for public travel and convenience, the public enjoyment of them is strictly limited to their legiti- mate purpose. On the other hand, the owner of property on the highway owes correlative duties to the public. As he is entitled to be protected against obstructions on the highway by the public, and against the public appropriating to itself any part of the highway, so the public, too, is to be protected in a reasonable use of tlie highway devoted to them. What is an obstruction to the highway must largely depend on the circum- stances of each individual case arising, on the question whether considering the localit}- and the public need the use is a fair and legitimate use by the public of their easement, or whether the use of his property by the adjoining owners has a due regard for the rights of the public. In Callanan v. Gilman, 107 N. Y. 360, a tradesman was in the habit of using a bridge to convey goods from his store to the street, and the sidewalk would be obstructed from four to five hours of each business day. It was held that this was an unrea- 1418 DOVASTON V. rAYNE, sonable use of the sidewulk uiul eoustituted ;i iiuisaiiee. In Elias V. Sutlierlanil, 18 Abl). X. ('. 126, it was lield an unreason- able use of their premises for the "Seven Sntlieiland Sisters" to use the bay window of their store on a busy, bustling street in New York City, foi- eonibing their long hair in full view so as to collect great crowds in front of their premises and interfere with travel on the higliway. In Bianaliaii v. Hotel Co., 30 Ohio St. 333, it was held that the defendant luid no liglit to use the street fronting on plaintiff's premises l)y keeping coaches there so as to interfere with his house. See, also, McCaffiey r. Smith, 41 Hun 117, and Turner r. Iloltzman, 54 Md. 14 Conn. 113. Any perniaiient obstruction cannot be erected in the highway. — W'hat is such an obsti lutinu is a ([UcstidU of fact. A woik of art maybe erected in a highway if it docs not obstruct travel; Tompkins v. Hodgson, 2 Hun 14i» ; a watch-house cannot, Town of Wincliester v. Ca[)ron, ('•-) N. H. <>()">; nor caii weigh scales, Huddleston r. Ivillbueh, 7 Athmtic Reporter, 210 (Supreme Court of Pa.). A scaffold may be temporarily erected for the repair of a building; Hexamer r. Webb, 101 N. Y. 377 ; State v. Holman, 21> Ark. 58. And see on kindred points, Chamberlain v. Enfield, 43 N. H. 350 ; and Mallory v. Griffey, 85 Pa. St. 275. A liberty pole is lawful ; City of Allegheny v. Zimmerman, 95 Pa. St. 287. See, also. Graves v. Shattuck, 35 N. H. 257. For a case of moving a building through the highway ; Welsh v. Wilson, 101 N. Y. 254. For a case of use of skid to bring goods to one's store, and for a later skid case, see Jochera v. Robinson, 06 Wis. 638. Rivers. — The law as to rivers both above and below the flow of the tide is the same as that of a highway, so far as the ease- ment of passing of the public is concerned ; Chalker v. Dickin- son, 1 Conn. 382 ; so far as relates to the ownership of the soil is concerned, other principles come in. In rivers where the tide ebbs and flows, the adjoining owaier can claim only to low Avater mark, all beyond that belongs to the public ; Hart v. Hill, 1 Whart. 124; Ball v. Slack, 2 Id. 508; Dillingham v. DOY ASTON V. PAYNE. 1419 Roberts, 75 Me. 469; Home v. Richards, 4 Coll. 441; Mead V. Ilayiies, 3 Raiid. 33 ; Arnold v. Mundy, 1 Halst. 1 ; Ashby v. Eastern R. R. Co., 5 Met. 3G8 ; Jones v. Janney, 8 W. & S. 436 ; Bickel V. Polk, 5 Harr. 325; Musser v. Hersliey, 42 la. 356. As to the ownership beyond low water mark, see State v. Pacific Guano Co., 22 S. C. 50 ; State v. Pinckney, 22 Id. 484 ; Goodwin v. Thompson, 15 Lea 209 ; Naglee v. Ingersoil, 7 Pa. St. 185 ; Chapman v. Kimball, 9 Conn. 38. In California high water mark is made the dividing line, leaving the land between high and low water mark in the public ; Long Beach Land & Water Co. v. Richardson, 70 Cal. 206. In Iowa the same rule seems to hold ; Houghton v. C. D. & M. R. R. Co., 47 la. 370. In Missouri the ownership extends only to the water's edge ; Meyers v. City of St. Louis, 8 Mo. Ap. 266. Low water mark is strictly the dividhig line in the other states ; McCuUock v. Aten, 2 Hamm. 308 ; Garner's Case, 3 Graft. 655 ; Handly v. Anthony, 5 Wheat. 375 ; Litchfield v. Scituate, 136 Mass. 39. See Gough v. Bell, 1 Zab. 156 ; 2 Zab. 441. If the owner extend his structure beyond this mark he is guilty of a purpresture which may be abated as a nuisance ; East Haven v. Hemingway, 7 Conn. 186. See Union Depot Street R. R. Co. V. Brunswick, 31 Minn. 297 ; and Sisson v. Cummings, 35 Hun 22 ; Gifford v. McArthur, 55 Mich. 535 ; Larson v. Furlong, 63 Wis. 323. The owner can prevent any obstruction being placed between his land and the navigable way ; Shirley v. Bishop, 67 Cal. 543 ; Hamlin v. Pairpoint Mfg. Co., 141 Mass. 51. Above the flow of the tide different rules apply, tlie public still has the right of passage, but no right to fish, nor to claim the soil that Ijelongs up to the middle of the stream to the abut- ting owners ; People V. Piatt, 17 Johns. 195; Hooker v. Cum- mings, 20 Id. 90 ; Browne v. Kennedy, 5 Harr. & J. 195 ; Comm. Canal Fund v. Kempshall, 26 Wend. 404 ; Munson v. Hunger- ford, 6 Barb. 265 ; Gavit v. Chambers, 3 Hamm. 496 ; Mariner V. Schulte, 13 Wis. 692 ; Canal Trustees v. Haven, 5 Gilm. 548 ; Morgan v. Reading, 3 Sm. & M. 366. As to right of passage, see Adams v. Pease, 2 Conn. 481 ; Berry v. Carle, 3 Greenl. 269 ; McCullough v. Wall, 4 Rich. 69 ; Moor v. Veazie, 31 Me. 361; Warren v. Thomaston, 75 Id. 329. The law as to pur- presture is the same as in tide water rivers; Kean v. Stetson, 5 Pick. 492 ; Ux parte Jennings, 6 Cow. 578 ; People v. Canal Appraisers, 13 Wend. 355. Islands follow the same law as 1420 DOVASTOX V. PAYNE. though the water covered them, they belong to the public or the abutting owner according to whether they are tide washed or not ; Middletown v. Sage, 8 Conn. 222 ; Claremont v. Carleton, 2 N. H. 369 ; Greenleaf v. Kilton, 11 Id. 531 ; Lunt v. Holland, 14 Mass. 149 ; Ingraham v. Wilkinson, 4 Pick. 268, See appar- ently contra, Penn. Coal Co. v. AVinchester, 109 Pa. St. 572 ; The middle of the stream is exactly half way across without respect to depth ; McCuUough ?'. Wall, 4 Rich. 84. An ordinary grant accordingly passes the title to the middle of the stream ; Morrison v. Keen, 3 Greenl. 474 ; Sleeper v. Laconia, 60 N. H. 201 ; Lincoln v. Wilder, 29 Me. 169 ; King v. King, 7 Mass. 496; Jackson v. Louw, 12 Johns. 252; Noble v. Cunningham, 1 McMull. Eq. 289; Norcross v. Griffiths, 65 AVls. 599. This of course may be restricted by apt words ; Dunlap V. Stetson, 4 Mas. 349 ; Jackson v. Halstead, 5 Cow. 216 ; Hayes V. Bowman, 1 Rand. 417. This restriction is implied where the public transfers land bordering on tlie stream ; R. R. Co. v. Schurmeir, 7 Wall. 282 ; Yates v. Milwaukee, 10 Id. 504 ; Serrin V. Grefe, 67 Iowa 196 ; Wood v. Fowler, 26 Ka. 682. Usually apt words are needed to create the restriction ; it must be ex- press ; McCullough V. Wall, 4 Rich 84; Arnold v. Elmore, 16 Wis. 509 ; Hegar v. C. & N. R. R. Co., 26 Id. 624 ; Wash. Ice Co. V. Shortall, 101 111. 46 ; Piper v. Connelly, 108 Id. 646 ; Muller V. Landa, 31 Tex. 265 ; Attorney-General v, Evart Booming Co., 34 Mich. 462 ; Fletcher v. Thunder Bay River Boom Co., 51 Id. 277 ; June v. Purcell, 36 Ohio St. 396 ; Day V. P. Y. & C. R. R. Co., 44 Id. 406 ; Luce v. Carley, 24 Wend. 451. Although some cases hold that the intention is to be sought from the whole deed ; Hatch v. Dwight, 17 Mass. 289 ; Litchfield v. Fergusbn, 141 Id. 97 ; Sanders v. McCracken, Hard. 258; Hall v. Whitehall Water Power Co., 103 N. Y. 129. What shall be taken to be apt words of exclusion is a ques- tion still open for discussion. In Child v. Starr, 4 Hill 369, the words " to the Genesee River thence along the shore of said river," &c., were held to be words of exclusion, as also are the words "to the bank of the creek" in Halsey v. McCormick, 3 Kern. 297. See to same effect, Lincoln v. Wilder, 29 Me. 169. "• To the river or any part of the river on which the island doth abut " conveyed onl}^ to high water mark ; New York v. Hart, 95 N. Y. 443. On the other hand, the words " up to the river " were held not to exclude in Greenleaf v. Kilton, 11 DOVASTON V. PAYNE. 1421 X. H. 531. See Carter v. Ch. & O. R. R., 26 W. Va. 644. " High -water mark " does not fluctuate with the advancing or receding shore line ; Nixon v. Walter, 41 N. J. Eq. 103. The line runs at right angles to the stream from the extremities of the I'and to the middle of the stream; Knight v. Wilder, 2 Cush. 200. See, also, Turner v. Parker, 14 Or. 340. See Morris V. Beardsley, 54 Conn. 338, for the rule as to seashore. The law as to ponds and lakes not connected with the salt water is the same as in the case of tide waters, the ownership goes only to the water's edge ; State v. Gilmanton, 9 N. H. 461 ; Wood V. Kelley, 30 Me. 47; Bradley v. Rice, 13 Id. 198; Stevens v. King, 76 Id. 197 ; Wheeler v. Spinola, 54 N. Y. 377 ; Canal Comms. v. People, 5 Wend. 446 ; Charaplain & St. L. R. R. Co. V. Valentine, 19 Barb. 484. See Hodges v. Williams, 95 N. C. 331, which says an isolated lake, although large, is not navigable, and a riparian owner is not entitled to land made by a withdrawal of the water. In the states of Alabama, Iowa, Michigan, Mississippi, North Carolina, Pennsylvania, West Vir- ginia, and some other states the navigable rivers are treated as tide waters ; Bullock v. Wilson, 2 Port. 436 ; Moore i'. San- borne, 2 Mich. 520 ; Stover v. Jack, 60 Pa. St. 339 ; Shrunk v. Schuylkill Nav. Co., 14 S. & R. 71 ; Ravenswood v. Flemings, 22 W. Va. 52 ; Wood v. Chicago R. I. & P. R. Co., 60 Iowa 456 ; Carson v. Blazer, 2 Binn. 475 ; Comm. v. Fisher, 1 P. & W. 462 ; Wilson v. Forbes, 2 Dev. 30 ; Comm. \k Withers, 29 :\Iiss. 39; see Wilson v. Welch, 12 Or. 353. This applies only to navigable rivers ; Ingram v. Threadgill, 3 Dev. 59 ; Coovert v. O'Conner, 8 Watts 470. In tide waters the ownership of the soil is to low water mark, but this is not absolute. The owner must not create a purpres- ture there, for the easement of the public extends to high water mark; he may, however, do anything which will not interfere with this easement; Stover v. Jack, 60 Pa. St. 338; Wain- wright V. McCullough, 63 Id. QQ ; Zug v. Commonwealth, 70 Id. 138 ; Charlestown & S. R. R. Co. v. Johnson, 73 Ga. 306. The public may enter, from a boat, the unenclosed flats be- tween high and low water marks, and from them fish in the sea; Packard v. Ryder, 144 Mass. 440 ; see Bedlow v. N. Y. Floating Dry Dock Co., 44 Hun 378. ^ For the definition of the word navigable it is necessary to go to the cases. In The ^lontello, 20 Wall. 430, the court said, 1422 DOVASTON V. PAYNE. " Rivers are navigable, in fact, when they are used, or are sus- ceptible of being used, in their ordinary condition, as highways for commerce, over which trade and travel are or may be con- ducted in the customary modes of trade and travel on water. And a river is navigable when it forms by itself or ita connec- tions with other waters a continuous higln\'ay, over which ct»ni- merce may be carried on." A stream which will float logs to market is navigable ; Olson V. Merrill, 42 Wis. 203 ; Shaw v. Oswego Iron Co., 10 Or. 371. But if only at high water it is not ; Lewis v. Coffee County, 77 Ala. 190 ; contra^ Smith v. Fonda, 64 Miss. 551. The common law test of navigability, viz., tide water, has never been adopted in Pennsylvania ; Stover v. Jack, (JO Pa. St. 338. It need not be navigable continuously at all seasons of the year; Walker v. Allen, 72 Ala. 456. The Niagara is a navigable river in spite of the falls ; Re State Res-Comms., 37 Hun 537. The natural formation of sand bars and accumulation of timber will not render it not navigable if it once was navigable ; Goodwill v. Bossier, 38 La. An. 752 ; see Burroughs v. Whitwam, 59 Mich. 279. ELWES V. MAWE. MICH.— 43 G. 3, K. B. [reported 3 EAST, 38.] A tenant in agriculture, wlio erected, at his oivn expense, and for the mere necessary and convenient occupation of his farm, a beast-house, carpe7iter s shop, fuel-house, cart-house, pump-house, and fold-yard ivall, which buildings were of brick and mortar, and tiled, and let into the groimd, cannot remove the same, though during his term, and though he thereby left the premises in the same state as ivhen he entered. There appears to be a distinction between annexatioris to the freehold of that nature for the purposes of trade, and those made for the purposes of agriculture and better e^ijoying the immediate profits of the land, in favour of tlie tenant'' s right to remove the former; that is, where the superincumbent building is erected as a mere acces- sory to a personal chattel, as an engine ; but tvhere it is acces- sory to the realty, it can in no case be removed. The declaration stated, that the plaintiff was seised in fee of a certain messuage, with the out-houses, &c., and certain land, &c., in the parish of Bigby, in the county of Lincoln, which premises were in the tenure and occupation of the defendant as tenant thereof to the plaintiff, at a certain yearly rent, the reversion belonging to the plaintiff; and that the defendant wrongfully, &c., intending to injure the plaintiff in his heredi- tary estate in the premises, whilst the defendant was possessed thereof wrongfully and injuriously, and without the licence and against the will of the plaintiff, pulled down divers build- ings, parcels of the said premises, in his the defendant's tenure 142P. 1424 ELWKS V. MANVE. and occupation, viz., a hfust-housi', a furpf titer's shop, a tvuifi/an' house, a futl-house, and a pii/eon-Itoime, and a f>rirk uall inclosing the fold-yard, and took ami canicd away the niaterials, wliirh were the pro})erty of the jdaintiff, as landlonl, and i-onverted them to his the defendant's own use; hy reason whereof the reversionary estate of the plaintiiT in the premises was greatly injured, »S:e. The defendant pleaded the general issue. Ami at the trial at the last Lineoln assizes a verdiet was found for the plaintiff, with i'Sl. damages, subject to the oi)inion of the court on the follow'ing ease : — The defendant occupied a farm, consisting of a messuage, cottages, barn, stables, out-houses, and lands, at Bigby, in the county of Lincoln, under a lease from the plaintiff for twenty- one years, commencing i)n the 12th day of May, 1770; which lease contained a covenant on the part of the tenant to keep and deliver up in repair the said yni'Hsuaije, harn, tttahlen, and out- houses, and other buildings Indonging to the said iifiuinetl prem- ises. Al)out lifteeii vears bcfdic tlu' exj)iration of the lease the defendant erected upon the same farm at his own expense a substantial hetist-hmise, a ettrpenters x/iop, a t'uel-huuse, a rart- house, and pump-houxe, an«l fold-yard. The buildings were of brick and mortar, and tiled, and the foundations of them were about one foot and a half deep in the ground. The carpenter's shop was closed in, and the other buildings were open to the front, and supported by bi ick pillars. The fold-yard wall was of brick and mortar, and its foundatitm was in the ground. The defendant, previous to the ex{)iiation of his lease, [)ulled down the erections, dug up the foundati(Uis, and carried away the materials, leaving the })reniises in the same state as when he entered u[)on them. These erections were ueeexnitrif ami con- venient for the occupation of the farm, which could not be well managed without them. The question for the opinion of the court was. Whether the defendant had a right to take away these erections. If he had, then a verdict to be entered for the defendant ; if not, the verdict for the plaintiff to stand. This case was first argued in Easter Term last by Torkington for the plaintiff, and Clarke for the defendant ; and again in this term by Vaii(jhan, Serjeant, for the plaintiff, and Bahjuij for the defendant. For the plaintiff it was argued that the removing the build- ings in question w^as waste at common law, and that this case ELWES V. MA WE. 1425 did not fall within any of the exceptions, which had been intro- duced solely for the benefit of trade in relaxation of the old rule. That rule was, that whatever was once annexed to the freehold could never be severed again without the consent of the owner of the inheritance. Accordingly, glass windows, Avainscot, benches, doors, furnaces, &c., though annexed by tenant for years for his own accommodation, could not be removed by him again, Co. Litt. 53 a. The principle on which this was founded was the injury which would thereby arise to the inher- itance from disfiguring the walls of the mansion ; though some of these things were in their nature personal chattels, supplying the place of mere moveable utensils and furniture. But it never was questioned but that buildings let into the soil became part of the freehold, from the very nature of the thing. This was decided so long ago as Hil. 17 Ed. 2, 518, in a writ of waste against a lessee, who had built a house and pulled it down during his term. And Co. Litt. 53 a, which is to the same pur- pose, goes further and says, that even the building of such new house by the tenant is waste ; but that is denied in Lord Darcy V. Ashwith (a) ; though that also agrees that the letting down of such new house built by the tenant himself would be waste. So taking down ^ stone wall, or a partition between two cham- bers, is waste. 10 Hen. 7, 2, pi. 3. It does not, indeed, appear by that book, whether those erections had been before made by the tenant himself : but they were so taken to be by Mead, J., in Cooke v. Humphrey (5). All this is confirmed by Lord Coke at the end of HerlakenderCs Case (c), where it is said to have been adjudged in C. B. that glass fastened to the windows, or wainscot to the house, by the lessee, cannot be removed by him : and that it makes no difference in law whether the fastening of the latter be by great or little nails, screws or iron put through the posts or walls (as had been .then of late invented), or in whatever other manner it was fastened to the posts or walls of the house. In all these cases the rule as between landlord and tenant seems to have followed that between heir and executor, founded upon the reason first mentioned: and no innovation upon the strict rule seems ever to have been admitted, except in the case before Lord C. B. Corny ns (d) at Nisi Prius, of the (a) Hob. 234. (d) Cited in Lawton v. Lawton, 3 (b) Moor, 177. Atk. 13, 16. (c) 4 Rep. 63, 4. 1426 ELWES V. MAWK. cider-mill, which lie held sliould go to the cxccuLor, iiiul not to the heir ; but upon what particular grounds does not appear: and the case of Cullint/ v. Tufnell (a), before Lord Ch. .1. Treby^ at Hereford, in 1694, where a barn erected by a tenant upon pattens and blocks of timber, lying on but not let into the ground, was holden to l)e removable by the tenant: but even there he relied on the cuxtoin of the count rij in lavi>nr of the ten- ant, with reference to which it might be presumeil tliat he and his landlord liad contracted (/<). The only established excep- tion (which the plaintiff's counsel admitted was as ohl as the rule itself) is in favour of trade, with respect to articles an- nexed to the freehold for the purpose of carrying on trade and manufactures. In 20 Hen. 7, fo. 13, jd. 24, an heir ])rought trespass against executors for taking away a furnace fixed to the freehold with mortar, and the taking was holden tortious. But it was there said "that if a lessee for years set up sueli a furnace for his own advantage, or a dyer his vats and vessels to carry on his l)usiness (^^^ during the W\\\\ he may remove them: but if he suffer them to be fixed to the land afti-r the end of the term, then they belong to the lessor; and so of a baker." Then follows, "It is no waste to remove such things within the term by any." But this is said to have been against the ojjinions before mentioned, and to have been doubted in the 42 PM. 3, p. 6, pi. 19, whether it were waste or not. It is clear, therefore, from the whole of the passage, that the only generally admitted exception was in favour of traders, which is shown by the ex- amples of the dyer and baker afiixing vessels pur occupier son occupation: and that at least it was doubtful whether the same privilege extended to others affixing to the freehold similar articles. And the exception is the more remarkable because at that early period agriculture must have been of much greater importance to the state than trade. This distinction was con- tinued in later times. In Poole s Case (d), M. 2 Ann., in an action on the case by a lessee against the sheriff of Middlesex, who had taken in execution the vats, coppers, tables, partitions, and pavement, &c., of an under lessee, a soap-boiler, which he had put up as fixtures for the convenience of his trade. Lord C. J. Rolt held that during the term the soap-boiler might well re- (ffl) Bull. N. P. 34. (c) The words in the original are (6) See Wigglesworth v. Dallison, '' pur occnpier son occupation." ante, vol. i. et notas. (d) Salk. 368. ELWES V. MA WE. 1427 move the vats set up in relation to trade, by common law ; but that there was a difference between what he did to cany on his trade, and what he did to complete the house ; as hearths and chimney-pieces ; which he held not removable. The next case was Cave v. Cave (a), in 1705, where the Lord Keeper held that not only wainscot, but pictures and glasses put up in the place of wainscot, should go to the heir and not to the executor, to prevent the house being disfigured. Then followed Laivton v. Laivton (J), where it was decreed by Lord Hardiviche, C, that a fire-engnie erected for the benefit of a colliery by the tenant for life should be considered as personal estate, and go to liis ex- ecutor, and not to the remainderman, in favour of creditors. But there it was proved to be customary to move such an engine ; that in building the shed for its security lioles were left for the ends of the timber to make it more commodious for re- moval ; and that it was very capable of being removed. The evidence relied on by the other side was, that it could not be removed without tearing up the soil and destroying the hrick- loorh. But Lord Hardivicke considered the brickwork there as a mere accessory to the engine, which in its own nature was a mere personal moveable chattel. One reason, he said, which weighed with him was, that it was a mixed case, between enjoy- ing the profits of the land and carrying on a species of trade ; and considering it in that light, it came near the instances of furnaces and coppers in brewhouses. That decision was in 1743. In Ex parte Quincey (c), in 1750, where the principal question was whether the utensils of a brewhouse passed by a mortgage of the brewhouse with the appurtenances ; it is said that a tenant may, during the term, take away chimney-pieces and even ivainscot ; but the latter is observed to be a very strono- case. The same was before said in Laivton v. Lawton, with this difference, that it was there said of wainscot, fixed only by screws and of marble chimney-pieces. This opinion may have proceeded, as it did in Beck v. Eebow (d), upon the con- sideration that matters of this sort were merely ornamental fur- niture, and not necessary to the enjoyment of the freehold. The case of Lord Dudley v. Lord Ward (e), in 1750, was like that of Lawton v. Lawton, on the authority of which it was de- (a) 2 Vera. 508. (f?) 1 P- Wms. 94. (6) 3 Atk. 13. (e) Ambl. 113, and Bull. N. P. 34. (c) 1 Atk. 477. 1428 ELWES V. MA WE. cided. There Lord ILtrdwicke recognised the general rule, with the single exception, as between landhnd and tenant, that fixtures annexed by the latter for the sake of trade might Ik- re- moved. There, too, the fire-engine was eoJisidered as the prin- cipal, and the building erected over to preserve it ;us the mere accessory : and the colliery itself as in part the carrying on of a trade. In Lawton v. Salmon, E. 22 Geo. 3, B. R. (^a), salt pans were holden to go to the heir and not to the executor: and though Lord Mansfield said that the rule had been relaxeil as between landlord and tenant, tenant for life and remainderman, in respect of things put \\\) by the tenant in jmssession ; still he conlined the relaxation to things so jilVixcd for the benefit of trade. And he there alluded to the case of the cider-mill (doubtingly) as standing alone, and not piinted at large. Then the case of Dean v. Allalle// (/*), sittings after Kaster, 3l> (ieo. 3, was a ease where two sheds called Dutch hamx, wliii li liad been erected by the tenant during iiis term were removed by him: and being sued on his covenant, by which he undertook to leave all buildings which then were, or should he erected on the premises during the term in repair. Lord Kent/on, at Nisi Prius, held that buildings of that description were not included; and said that the law would make the most favourable construc- tion for the tenant where he had made necessary and useful erec- tions/'or the benefit of his trade or vianvfacture. Of what precise description the buildings there were does not a[)pear ; possibly not affixed to the ground (f), at least not such parts as w<'re removed. If not, the case amounts to not more than that of Penton v. Rohart ((/), where a varnish-house of wood, which had been erected on a brick foundation by the tenant/or the purpose of carryiiig on his trade was removed by him. But it did not appear there that the foundation was removed, but only the superstructure of tvood, which had been brought by the tenant from another place, where he had before carried on his business. Lord Kenyon, indeed, there laid stress on the instances of gar- deners and nurserymen in the neighbourhood of the metropolis erecting green-houses, &c., which he considered that they would («) Cited in a note to Fitzherbert v. (c) Vide post, what account was Shaw, 1 H. Blac. 259. Tlie principal given of this case in the arguments case turned on a particular agree- of the defendant's counsel, ment. (d) 2 East, 88. (b) 3 Espiu. Ni. Pri. Cas. 11. ELWES V. MAWE. 1429 be at liberty to remove. Whether that be done under particu- lar aoreements or not does not appear : but supposing the law would imply an exception in favour of tenants of that descrip- tion, it would only be upon the ground of considering them as carrying on a species of trade ; the very nature of their occupa- tion and of the letting, being to enable them to disannex even trees from the land (a). But none of the cases have gone the length now contended for : and the very grounds on which ex- ceptions have been made from the general rule preclude the present case. Erections of this sort are not in their nature tem- porary or moveable, but are calculated solely for the enjoyment of the land : the expense of erecting them is great, and their value is great on the spot, but of trifling consideration when re- moved : the injury of their removal, therefore, is much greater to the landlord than the benefit of the materials when removed is to the tenant. If the exception were extended to buildings erected for the purposes of agriculture, it would be as extensive as the rule itself, and would therefore destroy it. The sole ob- ject of such erections is for the purpose of enjoying the produce of the land ; the land therefore is the principal, and the build- ing the accessory to the land. This distinguishes it essentially from buildings erected for engines or machinery used in trade, where the personal chattel is the principal. No other line than this can be drawn without overthrowing all the authorities. For the defendant it was contended that the old rule of law had been gradually relaxed between landlord and tenant, though not so much between tenant for life and remainder- man, or between heir and executor. The object has been to encourage tenants to lay out their money in the improvement of the premises, and in making their industry as productive as possible, which is for the benefit of the state as well as the individuals, and applies at least as strongly to tenants in husbandry as in trade. Agriculture, in the improved state in which it is now carried on, is in itself a trade ; it requires a much larger capital than formerly, and the use of more expensive implements and machinery. Without the aid of (rt) Lawrence, J., on the first argu- &c., as is usual in sucii cases. But ment intimated, that if ground were he expressed a wish to be informed let expressly for nursery ground it of the usual terms of the leases might be considered as implied in the under which such grounds were terms of the contract, that it was to holden in the neighbourhood of the be used for taking up young trees, metropolis. 14;J0 ELWKS V. MAWK. luodcin iinpjovL'incnts, the land caniiot Ix* made so productive as it otlierwise may be, uov the produce so well prenerved and brousrlit to market. lUil uidess the tenant is entitled to take away with him at the end of his term, or have a cnmiKMisation in value tor buildings like these in (question, erected in such a niaiiMcr as to \hi capable of l)eing removed at pleiwure niid set up (Jii any other farm, he will not Ik* at the expense of erecting them at all ; and thcreforj? though he, and through him the jiiiltlif, will .siilTtT, \vi tin- landlord will not In* tiio better tor the ri>,'ht which he now claims. This is nt) ({Uestion whether permanent additions or improvements made by a tenant to an old dwellini^-house or out-i>uildin^, or even new ones of that sort erected by him for his personal accr>mmodation, are to be nnnoved at the end of the term; for not even pei-sons renting i)remises for the purpose of carry injf on trades have any such i)rivilej^e: but whether building .so ere<'te«l for the .sole purpose and convenienct' of i-arryint; on the farnu that is, of turnint,' to the best account the capital and industrv of the faiiuer in his trade oi business, may not U- removed bv him. Tile mateiials of which tin* buildinj^s ar«' comjtoscd cannot vary the law, but the objects and interests of the persons concerneil. II ill the ca.se Dean v. Allallei/ (a), the tenant wjus entitled to remove the buildiiiL^s called Dntfh fmniH, the same ruh' will api)ly to the buildini,^ in (luestit)n, which are sus mu(d» calcu- lated tor removal. For in that case (as appears from the .MS. note of one of the coun.sel in the cau.se), the sheds erected "had a foundation of brick in the ground, and uprights fixed in and rising from the brickwork, and supporting tin- roof, which "vvas composed of tiles, and the sidi-s oj)en," as iti the present case. If the exception be conlined to erections fur the InMiefit of trade, Lord Ketu/on in that case considered the JJntrh barns as coming within that description. This is consonant to the opinion delivered by the same learned judge in Penton v. Rohart (b). It is true that was the case of a varninh-hoi{sp ; but it is clear that his lordship's opinion way founded on the extension of the exception in the case of landlord and tenant generally; for in the instances put by him in illustration of his opinion, are cases of gardeners and nurserymen, whose profits are derived out of the immediate produce of the land : and the buildings now in question are no more annexed to the soil than (rt) 3 Espin. Ni. Pri. Cas. 11. and MS. (6) 2 East, 88. ELWES V. MAWE. 1431 the varnish-house there was, which was on a foundation of brick, or than the hothouses and greenliouses of the persons alluded to. But the argument does not rest alone on very modern cases, but is strongly supported by the decisions of Lord Hardu'icke in the cases of Laivton v. Lawtoji (a) and Lord Dudley v. Lord Ward (J). There, even as between tenants for life or in tail and the remaindermen, the executors of the former were holden entitled to the fire-engines of collieries ; buildings which must in their very nature be annexed to the soil, and without which the profits of the land, viz., the coal, could not be taken. Those were, indeed, said to be mixed cases between taking the profit of land and carrying on a trade ; but wherefore mixed does not so plainly appear. So the case of the cider-mill is directly in point : that is as essential to the enjoyment of the land in that particular species of produce out of which the cider is to be made, as barns and other buildings are to the enjoyment of arable, or beast-liouses of pasture-land. That case was much stronger than what is now contended for ; the question arising there between the heir and executor, where it may be admitted that the old rule has pre- vailed much stricter. All the cases therefore in the books between persons standing in that relation may well be laid out of the question, as they turn upon the presumed intention of the ancestor or testator in favour of the heir, that the inheri- tance should descend to him entire and undefaced. But the case of Culling v. Tufnell (e drawn from all the books wjis, that whatever buildinjjs wt-re erected by a tenant (i)e the materials what they may, nr however placed in or upon the ground), for tlu; imme nhop, a fuel-honxt., a carf-housi\ a pum/i-houxc and fold-yard. The buildings were of brick and mortar, and tiled, and the fountlatKinx of them were about a foot and a half deep in the ground. The rarpentrrft shop was closed in, and the other Iniildings were open to the howt ?i\\(i supported hif hrirk \)\\\ay6. The fohl-i/anl tvall wuh of brick and mortar, atid its foumlatiou was in the i/round. The de- fendant, previous to the expiration of his lease, pulled down the erections, dug up the foundations, and carried away the mate- rials; leaving/ the premises in the same xtate ax when he entered upon them. The case further stated that these erections were necessari/ and convenient for the occupation of the farm, whii-h could not be well managed without them. And the (piestion for the opinion of the court was, Whether the defendant had a right to take away these erections ? Upon a full consideration BLWES V. MAWE. 1433 of all the cases cited upon this and the former argument, which are indeed nearly all that the books afford materially relative to the subject, we are all of the opinion that the defendant had not a right to take away these erections. Questions respecting the right to what are ordinarily called fixtures, principally arise between three classes of persons. 1st. Between different descriptions of representatives of the same owner of the inheritance ; viz.^ between his heir and executor. In this first case, i.e., as between heir and executor, the rule ob- tains with the most rigour in favour of the inheritance, and against the right to cUsannex therefrom, and to consider as a j^ersonal chattel, anything which has been affixed thereto. 2ndly, Between the executors of tenant for life or in tail., and the remainder7nan or reversioner ; in which case the right to fixtures is considered more favourably for executors than in the preced- ing case between heir and executor. The third case, and that in which the greatest latitude and indulgence has always been allowed in favour of the claim to having any particular articles considered as personal chattels as against the claimant in re- spect of freehold or inheritance, is the case between landlord and tenant. But the general rule on this subject is that which obtains in the first mentioned case, i.e.., between heir and executor ; and that rule (as found in the Year-book, 17 E. 2, p. 518, and laid down at the close of lierlakenden s Case., 4 Co. 64, in Co. Litt. 53 ; in Cooke v. Humphrey., Moore, 177, and in Lord Darcy v. Asquith, Hob. 234, in the part cited by mj^ brother Vaughan, and in other cases), is, that where a lessee, having annexed any- thing to the freehold during his term, afterwards takes it away, it is waste. But this rule at a very early period had several exceptions attempted to be engrafted upon it, and which were at last effectually engrafted upon it, in favour of trade and of those vessels and utensils which are immediately subservient to the purposes of trade. In the Year-book, 42 Edw. 3, 6, the right of the tenant to remove a furnace erected b}^ him during his term is doubted and adjourned. In the Year-book of the 20 Hen. 7, 13 a & b, which was the case of trespass against execu- tors for removing a furnace fixed with mortar by their testator, and annexed to the freehold, and which was holden to be wrongfully done, it is laid down, that '• if a lessee for years make a furnace for his advantage, or a dyer make his vats or 14li4 Kl.WKS \. MAWK. vessels to occupy his ocnifuition, diirin;/ hi» term hi* limy remove tlu'iii : but if he suffer them to be fixed to the earth utter the tertn^ then they beloneeame fully estal>- lished : and ai^eordin^dy we fnul Lord JLdt, in Poole\ Cane^ Sulk. )i«>H, lavinij down (in the instance of a HoaiHlH>iler, an untlt r-lt'iiaiit, whose vats, coppers, «S:c., fixed, hatl Ihh'U taken in execution, and «»n which account the lirst lessci' ijal removable. The indul«;ence in fav»)ur of the tenant fnr years duriuLT the term, has l>een since carried still further, and he has been idlowed t»» carry away matters of ornament, as ornamental marble chimney-pieces, pier-j;fhiM.seH, hauij^inos, wainscot lixed only by screws, and the like. Berk v. Rebow, 1 1*. Wms. m ; Ex Parte i^hiineey, 1 Atk. 477; and Lau'fon v. Lawton, 3 Atk. 18. liut no adjudt^ed case has yet gone the length of establishing that buildings subservient to purposes of agriculture, as distinguished from those of trade, have been removable by an executor of tenant for life, nor by the tenant himself who built them, during his term. In deciding whether a particular fixed instrument, machine, or even building, should be considered as removable by the executor, as between him and the heir, the Court, in the three principal cases on this subject (viz., Lawton v. Lawton, 3 Atk. 13, which was a case of a fire-enyine to work a colliery erected hy tenant for life: Lord Dudley v. Lord Ward, Ambler, 113, which was also the case of a fire-enyine to ivork a colliery erected hy ELWES V. MAWE. 1435 tenant for life (these two cases before Lord Hanhvicke') ; and Lawton^ executor, v. /Salmon, E. 22 G. 3, 1 H. Black. 259, w 7iotis, before Lord Mansfield ; which was the case of salt pans, and which came on in the shape of an action of trover brought for the salt pans by the executor against the tenant of the heir at law), may be considered as having decided mainly on this ground, that where the fixed instrument, engine, or utensil (and the building covering the same falls within the same principle), was an accessory to a matter of a personal nature, that it should be itself considered as personalty. The fire- eiigine in the cases in 3 Atk. and Ambler, was an accessory to the carrying on the trade of getting and vending coals ; a matter of a personal nature. Lord Hardivicke says, in the case in Ambler, " A colliery is not only an enjoyment of the estate, hut in part carrying on a traded And in the case in 3 Atk. he says, " One reason that weighs with me is its being a mixed case, between enjoying the profits of the lands, and carrying on a species of trade : and considering it in this light, it conies very near the instances in hrew-houses, ^c, of furnaces and coppers.'''* Upon the same principle. Lord C. B. Comyns may be considered as having decided the case of the cider-mill, i.e., as a mixed case between enjoying the profits of the land and carrying on a species of trade ; and as considering the cider-mill as properly an accessory to the trade of making cider. In the case of the salt pans, Lord Mansfield does not seem to have considered them as accessory to the carrying on a trade ; but as merely the means of enjoying the benefit of the inheri- tance. He says, " the salt spring is a valuable inheritance, but no profit arises from it unless there be a salt work ; which consists of a building, &c., for the purpose of containing the pans, &c., which are fixed to the ground. The inheritance cannot he enjoyed without them. They are accessories necessary to the enjoyment of the principal. The oivner erected them for the benefit of the inheritance.'^ Upon this principle he con- sidered them as belonging to the heir, as parcel of the inheri- tance, for the enjoyment of which they were made, and not as belonging to the executor, as the means or instrument of carrying on a trade. If, however, he had even considered them as belonging to the executor, as utensils of trade, or as being removable by the tenant, on the ground of their being such utensils of trade ; still it would not have affected the 14;)G KI.WKS v. MAWK. question now before the Court, whiili is tlie rij,'ht of » truant for mere aifriniltural purposes to remove buiUliii^ !ixe(l to the freehold, which were constructed hy him for the ordinary pur- poses of husi>iin(hy, and connecteunil, hut not fixed in or /" the iirinin>l, mi<;ht l>y the custom of tiie country tak«' them aw.iy at the end of his term. To l)e sure \\v mii,'ht, and tiiat without any custom; for the terms of tlu- stati'mcnt exchide them from being considerctl as fij-tarex : "they were not fired in or to the (/rouHil.^' In the case of Fitzherhert v. Shaw, I II. lUack. 2">8, we have only the opinion of a very learned Judge indeed, Mr. Justice Gould, of what would have heen the right of the teiumt^ as to the taking away a aheil built on brick-work, and some po»t» and rails which he had erected, if the tenant had done .so during the term : but, as the term was put an end to by a new ciuitract, the (luestion what the tenant could have done in virtue »)f his right under the old term, if it had continued, could never have come judirially i>efore him at Nisi I'rius: and, when that (piestion was otfered to Ik.^ argueil in the Court above, the counsel were stopped, as the (piestion w;us excluded by the new agreement. As to the case of Penton v. Robart, 2 East, 88, it was the case of a varnish-houae, witii a brick foun- dation let into the ground, of which the woodwork had been removed from another j)lace, where the defendant lja^i ^^^^^^ recogyiised as a known allowed exception from the general rule which obtains as to other buildings ; and the circumstance of its being so treated and considered establishes the existence of the general rule to Avhich it is considered as an exception. To hold other- wise, and to extend the rule in favour of tenants to the lati- tude contended for by the defendant, would be, as appears to me, to introduce a dangerous innovation into the relative state of rights and interests holden to subsist between landlords and tenants. But its danger or probable mischief is not so properly a consideration • for a court of law, as whether the adoption of such a doctrine would be an innovation at all: and, being of opinion that it would be so, and contrary to the uniform current of legal authorities on the subject, we feel ourselves, in conformity to and in support of those authorities, 1438 i.Lui:> \. MAWi;. obli<,'e(l to proMouce tli.il tin- (Uti'ntlaiit lia«l no rij^ht to uku awiiy the cifctioiis staU-tl aiul .1. >. i il».-t| in ihi.s cnim'. J'uttea to the plaintiff. Till", won! hjrfiin , it lias hvv» rpmarknl ■•> u u-.irnni author, U u^««i ■■» illf- fi'iTiit writers to t'XpiVH.sUlrt\T»'iit iin-ntiliiUH {Hw Shfen v. /.'(ViiV.S M- 4 W. 17'j, wluri- it was licltl timt n/tT rrr>li<-t It mljjlu oven \k' iiMiuiiKtl that thrjr were artlrlt-s for wlilili troviT woiilil III- , *vv Itnlhnt x M'httlrnt, ;i «j. II 1»»;|. Ill llnllin V. Uitndrr, I ( '. M. &. I{. '-'7«".. wImti' \\wtv wa>» an a«-tloii for ll\tiirt'« l)tir;;aiMc(l and sold, and sold nnd dcllvcn-il. tlu' court . TiJO. aiitl /'iNNoy v. ^'>■((v, 11) Ch. I). i:(J), nor (lid a sale of them trnntferany Intereit lu lanUa within the iiieanin^ of the fourth section of the Statute of Frauds. It seems dllllcult. however, to ii.se the tenu " llxtiiriHt " Invarlahly In the above sense without priHiucliii; some confusion; for If mich Im' tlie unlveptnl meanlii;; of the wonl, the sjiiiie thlnus would In* jtjiurr*. its iH'twtt'n iionie persons, and not fixtures as iM'tween i»lhep» It tweiu* In-tler. therffun*. for the purposes of this note, to use the word "jtjtHn" In tiwt which ap|N*iin« to he Us natural and most ohvlons sense, riz., nuffthing HHHrsnl tn thr frrf huia. Hy the expression unnffil ti> fhr frrrh<>lil. Is niennt fnstenetl to, or con- nected with It : mere Juxtn-po>itlon, or the laylni; of nn oliject. however heavy, on the freehold, iloes not amount to itnnrjn. Thus In the ca.s« clteil In the text from Huller's Nhl I'rlus. ;U, of I'ltUimj v. Tu/nrH, when* a tenant hud erected a Imrn <>n jttitlena ninl hhtrka «»/ timltrr lyimj uh thr ijnuiHil, but Hilt Jixid in, or tu thr (jrtiuml. It was heltl that he niUlit take thein away at the end of his term. This was .said In Iliiller to have Imvij hy the custom of the country; but the Lord ('. J. remarks In the text, •• To Ih> sure hi> mli;ht, and that witliout any custom; /<»r thf tmnit «»/ (A** utalrmmt rxrhnU thftn fttnn lii'iiKj coiisiilriiil Its rixttiri'M. Thftj irrrf not jtj-rtl in, nr in, Ihf ijnmmt." See Anthony v. Ilanrys and Ilanlintj, H Hln>{. IHIJ; Ilnrn v. H»tkrr,'si Fast, 215; Di,l'nt, is c^. 11. 1). Hi, where the last- mentioned case was followed, and ('Imllfij v. I1V.W Ilum, :52 L. T. 4m(;. was explained upon the facts] See, however. /{<>', inunn v. Lrtinn/il, 7 M. Jt ^V. 48, where the value of steam power communicated from an adjacmt engine by a shaft revolving on the prendses was excluded in assessing tlieir tloublc value, under st. 4 G. 2, cap. 28. Setting these cases of constnwtive annexation, which are comparatively unimportant, and on which few practical cpiestions arise, ctunpletely out of view; the general rule is, that, to constitute an article aHxtur)\ ir., part of the realty, it must be actually aruu-xed thereto; and f mnrt-rsn, whatever Is so annexed becomes part of the realty, and the person who wa.s the owner of it, when a chattel, loses his projjcrty In it, which immediately vests In the owner of the soil. Quii-(iHiil iihintntnr solit si>h> r,;lit. See Co. Litt. .'»:» a; Deardi'ii v. Entjis. ."> M. & VV. 11 ; and the judgment of Tarke, H., in .\tinnhiiU V. Lloyd, 2 M. & W. 450. This Is the general rule, but there are ca.ses In which things annexed to the freehold may be disannexed and carried away by some person claindng a property in them as against the owner of the freehold. It is as a leading authority on questions of this sort that the case reported in the text is chietly celebrated. Lord Elleuborough, as will have been seen, divides these questions into three classes. 1. Between heir and executor. 2. Between executor and remainderman, or reversioner. 3. Between landlord and tenant. We will consider these, and one or two others not noticed in the text, beginning with the most extensive class, viz., that of questions arising between landlord and tenant. 1. The general rule governing tliis subject is, that the tenant, if lie have affixed anything to the frceliold during his term, cannot again remove it without the consent of his landlord. See Co. Litt. 53 a, [and the judgment of Kindersle}', V.-C, in Gibson v. The Hammersmith liailirai/ Co., :i2 L. .1. Chan. 337]. But, inasmuch as a tenant for years was not punishable for waste, before the statute of Gloucester, neither the rule nor its exceptions could have been of much consequence previous to that period. After the passing of that Act, questions between landlord and tenant occasionally arose in actions of waste, and an opinion was soon expressed by the court, that a lessee engaged in trade and who had set up fixtures for the purpose of carrying that trade on advantageously, had, in some cases, a right to remove them at the expiration of his term. ELWES V. MAWE. 1441 This seems to have been mooted in Year-book, 42 E. 3, fo. 6, pi. 19 ; but is flrst expressly laid dowa in 20 H. 7, fo. 13, pi. 24, as follows : " Si le lessee pur ansfait ascun furneis pur sun avantage, on dier fait des fats et vaissels pur occupier son occupation, durant le terme il pent remuer eux. Mes s'il souffert eux etre fixes al terre apres le fin del' terme, donq ils appent aV lessor. Et sic d'un baker. Et n'est ascun Waste ne remuer tids choses deins le terme." In this case not only was the exception in favour of traders' fixtures pointed out, but also, as will have been seen, the limitation in point of time which still prevails, and which obliges a tenant who has a right to remove fixtures, to do so during his term. Mr. Amos, in his valuable work, contends with much ingenuity, that this case establishes an exception in favour of other fixtures set up by lessees for years, besides trading fixtures, and he argues that the words si le lessee a fait ascun fiirneis pur son avantage, must be taken to mean, if the lessee have set up any furnace for his pleasure : and he cites a book entitled " Un abridgement de touts h's ans da Roy Henri le Sept," where the words ''pur son plesure" are substituted for "p?pni v. JJurlcr, 4 Tyrwh. (;•>:{. To whatever extent the right to remove trade fixtures nniy be carried, common sense and justice seem to re(|uire that it should be bounded by the rule laid down by Lord Ilardwicke in LamUm v. LaiPtnn, viz., that the prin- cipal tiling " shall not be destroyed by the accessory." It may perhaps l>o deduced from this, that, if a trading llxture couhl not be removed without the destruction or great and serious injury of some important l)uilding, it wouhl be irremoval)le. lint when the building is but an ac<-essory to the (Ixtnre, such as an engine-house, and built to cover it, there we have the authority of the text for saying that one as well as the other is removal)le. Where a lease contained a c(»venant to repair, and yield uj» in repair, the furnaces, lire-engines, iron-works, dwelling-houses, anuijh made of imn ; ami that in such removal he might «listurb such brickwork as was necessary, and was not bound to re.-;tore it to a perfect state, as if the article it was intended to support or cover was still there; Foley V. AddPiihrooh-p, Vi M. & \V. 174, to which case the reader is referred for the description of a great number of articles to which the above rule wa.s held applicable. [Where a lease cires set up for trading purposes, does not [at common law] extend to those set up for agricultural ones. Some very sensible observations on this point are to be found in the work of Mr. Amos, who argues with great force that the opinion expressed by Lord EUenborough in the text, viz., that the doctrine sought to be established by the defendant " was contrary to the uniform current of legal authorities," can hanlly be maintained ; and that the rule laid down by his lordship is liable to this further objection, that it has a teiulency to contine the privilege of the tenant within narrower limits than are desig- nated by the policy to which it owes its existence ; and there seems no good reason for conferring it on trade to the exclusion of husbandry, a pursuit equally advantageous to the community, and which is now, like manufactures, often carried on by the aid of valuable machinery. Even if the privilege be confined to trade, still many of the occupations of the agriculturist are trades, using that word in its extended sense, not in the narrow and technical one Avhich it expresses in the Bankrupt Act. ELWES V. MAWE. 1443 The opinion that trade onglit, with reference to tlie subject now under discussion, to bear this more extended sense, is countenanced by Lawton v. Lawton, 3 Atk. 13: Dmlley v. Warde, Amb. 113, in wliich Lord Hardwicke appears to have considered tlie privilege in question as belonging to fixtures by means of wliich the owner carried on a species of trade by which he rendered the produce of his own land availal)le to liis own profit. Of a somewhat similar description are tlie cases of nurserymen and gai'- deners, who may remove trees, slirubs, and otlier produce of tlieir ground, planted by them with a view to sale (see Penton v. Robart, 2 East, 91; 7 Taunt. 191; 4 Taunt. 316; see also Wansborough v. Matun, 4 A. & E. 884; i?. V. Oth'ij, 1 B. & Ad. 161), which ordinary tenants cannot do, Empson v. Soden, 4 B. & Ad. 656; 1 N. & M. 720. In Penton v. Robart, this privilege was considered to extend to greenliouses and otlier similar erections. " Shall it be said," asked Lord Kenyon, C. J., " tliat the great gardeners and nursery- men in the neiglibourliood of tliis metropolis, wlio expend thousands of pounds iu the erection of greenhouses and hotliouses, &c., are obliged to leave all these things upon the premises, when it is notorious tliat they are even permitted to remove trees or such as are likely to become such, by the thousand, in the necessary course of their trade? If it were otherwise, the very object of their holding would be defeated." 2 East, 90. Lord Ellen- borough, however, in the principal case, disapproved, as will have been seen, of such an extension. See, too, BucMand v. Butterfield, 2 B. & B. 58, per Dallas, C. J. Upon the wdiole, the extent of tlie tenant's right with respect to agricul- tural fixtures, does not seem, even as yet, quite defined. It is clear that it does not go beyond, and, unless the opinion expressed by Lord Ellenborougli in the principal case be modified, it falls considerably short of his rights with respect to trading fixtures. A modern statute, liowever, has extended the right to remove agricultural and trading fixtures. By the 14 & 15 Vic. c. 25, s. 3, it is provided that if any tenant of a farm or land shall after the passing of that Act (24 July, 1851), with the consent in writing of the land- lord for the time being, at his own cost and expense, erect any farm building, either detached or otherwise, or put up any otlier building, engine, or machin- ery, eitlier for agricultural purposes or for the purposes of trade and agricul- ture (which shall not have been erected or put up in pursuance of some obligation in that behalf), all such buildings, &c., shall be the property of such tenant, and removable by him, notwithstanding the same may consist of separate buildings, or the same or any part thereof may be built in or permanently affixed to the soil ; so as the tenant making any such removal do not in any wise injure the land or buildings belonging to the landlord, or otherwise do put the same in like or as good plight and condition as the same were in before the erection of the things so removed. Before removal, how- ever, every tenant must give to the landlord, or his agent, a month's notice in writing of his intention, and the landlord may thereupon elect to purchase the things so proposed to be removed, whereupon the right to remove shall cease : the value is to be ascertained by two referees (one chosen by each party) or their umpire, and is to be paid or allowed In account by the land- lord. [And by the 46 & 47 Vic. c. 61, which repeals the Agricultural Hold- ings Act of 1875, and applies only to holdings wholly agricultural or wholly pastoral, or in part agricultural and as to the residue pastoral, or in whole or in part cultivated as a market garden, or to any holding let to a tenant during ]444 KLNVKS V. MA WE. his (!(>ntiniinnce in any olllcc, appointment, or i-Miployniriit, lnl«l und.r lin- lanillonl, it. is fnitliiT eniicteil l)y s. :?4 : '• Wiuro after tlie coninu'iiceinent of tiiis Act a ti-iiaMl alllxes t<» lii"* iioUlini; anv eiii^iiic, uiatliiiiery,/rM(/;(y, or other (Ixtiire, i>r t-reits any huiUliiuj, fur wliicli lie is not under this Act or otherwise entitled to coiiipenMillon, and wliicli is not so allixed ur ouctfd in pursuanee of some ol)lii;atioii In that belialf, or instead of some fixture l)elon';iiiy to tlie landlord, then sueli llxture or Indldiny shall be the property of and be removable by the tenant. hif»ri- or within a rras«nabl>' tinn' aftt-r the terminntion of the tenancij. rrovUled as follows : — 1. Before tlx- n-niovul of any llxture «»;• f,itilr huiliUnij comprised in tlie notice of removal, and any llxture nr hitililimj thus elecleil to be purchased shall Ik> left by the tenant, and shall be<-onie the prop«Tty of the lauillord, who shall pay the tenant the fair value thereof to an Incomiui; tenant of the hoklinn; and any tlill'erence as to the value shall be settleil by a reference under this Act, as iu case <»f compensation (.but without appeal). The above section dillVrs from the corropondinir section (r>;J) of the for- mer enactment mdy by tin- addition of the words in italics, and by the onds- siou of the provisicms as to st*'am-en;;lnes.] With respect to llxtures put up f(»r purposes of i)ri»itt>ii-nl or rnnrfnirnre. Lord Ilolt had, in Pofih'n f'dsf, 1 Salk. 'MiS, expressly denied the rl^ht of the tenant to remove them; autl a sinnlar iloctrine had been laid «lown lonj; before in IL rld/o'inlrn'x Cnsr, 4 t'o. (!4. thonirh denied in S'/nifr v. Mnyrr, 2 Freem. 249. Hut whether the opinion of Lord Holt expn-ssetl in Pnnle'a Case, was or was not warranted l>y the old authorities, it is now settled that there are many ornamental llxtures which the tenant is entitled to remove. Such are hanjrin^s and lookin'r-i;lasses, p'r rurimn, in liirk v. /irlmir. 1 r. Wms. 94; tapestry and iron backs to chimneys, for the executor is entitled to these as against the heir, Hanri/ v. Ilarvei/, Str. 1141, and the tenant's privileges against the landlord are more extensive; (see, too, per (rihlts, C. J., In Lee v. Jiisdon, 7 Taunt. 191) : wainscot fixed hij screws, and marble chimney-pieces, per Lord llardwicke in Lairtnn v. Lawton, 3 Atk. 15, and I'j- p. Qniinf>>/, 1 Atk. 477, and per Lord Manstield, 1 H. Bl. 260, in nntis; stoves and grates fixed into the chimneys with brick-work, and cupboards supported by holdfasts, per Bayley, J., />'. v. (S'^. Dnnstan, 4 B. & C. (!8fJ ; and see L"r v. liimlon, 7 Taunt. 191; see further, Colcgrare v. Dins Snutas, 1 B. & C. 77; Winn v. Ingleby, 5 B. ..t A. G2o : A', v. Londonthnrpe, C, T. K. 379. In Crriimes v. Boicercn, C Bing. 437, the tenant was permitted to remove a ELWES V. MAWE. 1445 pump Avhich was attached to a stout perpendicular plank resting on the ground at one end, at the other fastened to tlie wall by an iron pin wliich liad a head at one end, and a screw at tlie other, and went completely through the wall: "The article," said Tindal, C. J., "was one of doinestk convenience, was slightly fixed, erected by the tenant, and might be removed entire." But in BurJ.-land v. Butterfield, 2 B. & B. 54 : 4 J. B. M. 440, the court refused to extend the privilege of ornamental fixtures to a conservatory erected on a brick foundation fifteen inches deep, attached to the wall of the dwelling- house by cantilivers let nine inches into the wall, connected with the parlour- chimney by a flue, and having two windows in common Avith the dwelling- house, and to a pinery erected in the garden on a brick wall four feet high. The court said that it was " clear on the one hand that many things of an ornamental nature may be in a degree aftixed, and yet during the term may be removed ; and, on the other hand, equallj' clear that there maj' be that sort of fixing or annexation which, though the thing annexed may have been merely for ornament, will yet make the removal of it waste ; that every case of this sort must depend upon its peculiar circumstances ; and that no case had extended the privilege so far as to include the case then under consideration." See West v. Blaketoay, 2 M. & Gr. 729, [and Wilde v. Waters, IG C. B. 637, in which case it was held that trover would not lie for a ladder, a crane, and a bench, whicli had been left upon the premises by an outgoing tenant, and had been fastened to the floor, joists, and walls with nails and sci'ews in the usual way]. Mr. Amos remarks that Buckland v. Butterfield may be considered as the leading case upon the subject of ornamental fixtui'es. Whether wainscot fixed without screws can be removed, may, perhaps, be questionable. Lord HaMwicke thought it could, but said it was a very strong case, and many of the older authorities are the other v/ay. See the subject discussed, Amos, [3rd ed., 12o-G], where four circumstances are pointed out as mainly essential to be regarded wherever the question is whether a fixture of an ornamental nature be removable. 1. The mode in which and the extent to which it is united with the premises. 2. Its nature and construction ; as whether it appear to have been intended as a tempo- rary or as a permanent improvement. 3. Whether its removal is likely to occasion any, or any considerable, damage to the freehold. Lastlj', Avhether there is any custom or prevalent usage applicable to the case in question. [In Bishop v. Elliott, 10 Exch. 496, S. C. in error, 11 Exch. 113, where a question arose as to the construction of a covenant to deliver up prelnises, with all fixtures and articles in the nature affixtures belonging thereto, some important observations wei'e made in the judgment of the Exchequer Cham- ber with I'eference to the principle upon Avhich the right of a tenant to remove ornamental fixtures depends. After referring to the conflicting opinions of Lord Holt and Lord Hardwicke, which are mentioned above, and to the judgment of Lord Mansfield in Lawton v. Salmon; 1 H. Bl. 260, the court proceeded as follows: — "It does not appear to lis at all difficult to reconcile the difference which maj' appear in these authorities, nor to extract the principle which is to be gathered from them. Considering that the law has been regularly and gradually relaxing its rule as to the removability by tenants of fixtures erected by them, the difference between Lord Holt and Lord Hardwicke is explained by the difference of time. Lord Holt was speaking of the rule unrelaxed ; and when Lord Hardwicke spoke of chim- ney-pieces being removable generally, without any qualification as to their 1440 ELWICS V. MAWi:. material or ornamentation, it cannot bo snpijnseil tliat ho Intendi'd to lay down the rule more broadly tlian he did in a later case (L'tirton v. Lmrtun, 3 Atlc. 13), when he spolce in more qualified terms of mari)le chininey-ph'Cfs, or than Lord MansHeld, when he used the same qualillfd terms still later (In LawUm v. Salmon, 1 II. Bl. 2G0). Nor. on tlie other hand, w«»ulmnry(ftir v. JliimKfH, 2 H. & C. 777; and The Duke of Bomtfort v. BntPK, 31 L. J. Chan. 481.] It has been already observed, that in the very first case which established the tenant's right to remove fixtures under any circumstances, a limitati t.:f:f ^{ e tuected from the several cases decided on this subject seems to be this . t^Tt^. right to remove fixtures conUni.s during ^ j^X^^^; and during such further period of possession by him as he holds the p^enuses ur^der a right stm to consider h^^s^e^^^itr ^^^^^^^^^^ ^^^^ fin Leader v. Homewoud, 5 C. B. ^. &• o*o d, demised premises for some days after the expiration of hi. te m. He then f f ;?^-:^';:;;:r;;^ir rtJ ^^^^^^^ r't MS term, and so become a tenant at snffenvnce, n. -'-"" f^'-^ durlno the time he continues In possession as such tenant But the .ule, r;;.: its e.act meaum, ma, - 's .Jainiy inconsis^nt ^^^^^ ■^lecera;. to consi.ev the import of the tu.e wi«, ve.ei-ence^^^^^^ the .-.gh of a tenant at sufferance during the continuance ot such tenancj , becau e he ialorC. in the present case, had re-entered -•«-*.;.'>';- ! " '° 'itir^r2::^r^r:::zr'^M:h^::i:::^^^^^^ S?B^'frr-::;M:^h:-r:^-=^^^^ ./ones, ^ a. .^ ^ +, „ T p T of the C P , in ^farston v. Rowe, 8 A. the principles explained by the L. C. J. ot tne ^. r., & E. 59. 1448 ELWES V. MAWH. Neither has it ever l)eeii (Iffitlod upon solemn ftrgnmcnt whether a tenant wliose iiiteri'st is uncertain in point of (iiiration may not linve Koiile period after tlie expiration (n.it [SlauihUl v. TUf Maijnr <>f /'nrlimunith, i C. B. N. S. 120, and ^/oils v. ./itme.'<, ;W L. T. N. S. 595. Where, hy the terms of the demise, the tenant Is entitled to remove tenant's fixtures, and the landlord gives notice of his intention to re-t-nter for a forfeiture, the tenant has a trasonahli' time fnmi the receipt of the notice for their removal, Suiniier v. /irfiniihnr, M L. J. Q. B. i;U)]. But whatever may he the precise lindtation where the parties arc silent. It is clear tluit they liavc a right to fix one for themselves hy special agreement; sec Xaijlor v. ChIUikjc, 1 Taunt. 10; J'niri/ v. Ununt, •> Stark. 4o;{ ; ffinKlirr v. East Liimlon Wntcrxrorks Cu., 2 B. & C OOS ; A'dr/ o/ Mnn.\fielil v. Ulurkhitrne, C Bing. N. C. 42(5; U'pst v. lilnkcwnij, 2 M. & Gr. 755; F»lry v. A1.'}. AntI It may he iiuestlonable whether such a stipulation might not i)e created l)y Implication from the custom of a particular district; sec W'iijfih'Kicnrth v. DalUson, autf, vol 1, et uotas. In Fairhurn v. Fastfond, (', M. ,>;: W. CTO, the lease contained a covenant that the fixtures shoukl he valued to the landlord at tlie end of the temincy. Tlie tenant having become l)anl;•> to the executor or admiidstrator," and this will be found consonant with the <»ther tmrirnt authorities. See Wentw. Exors. (*.2 ; Com. Dif;. lliiiiK, B. ; 3 Bac. .\br. r.3 ; 11 Vin. .Vbr. \M. Hut modern authorities seem to have somewhat relaxed tin- striitni-ss of this rule, so far as fixtures partly or wholly essential to trade are eoneernetl. Tluis, in a case l)efore C. H. Comyns, ami mentioned in Laieton v. Loirtnn, 3 Atk. 14, the executor recovered from the heir a cider-njiU, let Into the uround and affixed to the freehold ; ami .Mr. .1. Hullcr considers the «'ider-mill as on a footing in this respect with otiier trading llxtures of the sanie sort, as " brewing- vessels, coppers, and tire-eiigines." H. N. 1*. 34. Yet in Lawton v. Sulmnu, 1 II. HI. 2(;o n ; 3 Atk. 15 n.; Lord Mansfield refused to extend the privilege to salt-pans, though the freehold would not liave been injured l)y their removal, saying, that the inheritance, as hail been l)roved, could not Ijc enjoyed without them; and he spoke doubtinirly of the autliority of the case of tlie cider-mill. See, too, the expressions of Lord Ilardwicke, in Dudlri/ v. Warile, and in Kx. p. (luiureij, 3 Atk. 477 ; and H. X. V. 34, where the existence of any privilege as against the heir in respect of trading fixtures, seems to be denied. See, too. Lord Ellenborough's expres- sions in the principal case; Fisher v. Dixon, 12 CI. and Fin. 312, Dom. Proc, a Scotch case, Init decided upon the principles of English law, where it wa.s held that colliery machinery, erected on tlie lands for their better enjoyment by the aljsolute owner, passed to the heir, whether obtaining the heritage by descent or purchase, as part of the realty, although portions thereof were capable of being detached without injury to the freehold; [Buin v. Brniid, I App. Cas. 762, where the decision was similar in tlie case of a lease which is heritable in Scotland; and the judgment of Wood, V.-C, in Mather v. Fraser, 2 Kay & J. .')3G.] With respect to ornamental fixtures, it has been already stated that tlie cases of Sqnier v. Mayer, 2 Freem. 249, and Ilarrey v. Unri-eij, 2 Str. 1141, were between heir and executor. In the former, hangings nailed to the walls, ELWES V. MAWE. 1451 and a furnace lixed to the freehold and purchased with the house, were given to the executor, and the authority of Herlakenden's Case to the contrary denied In the latter, hangings, tapestry, and iron backs to chimneys, were recovered by the executor in trover; it would, however, be difficult to sup- port the case on any ground, except that the articles recovered were looked upon as mere chattels, for Colegrave v. Dlas Santos, 2 B. & C. 76, is an authority that Ijxturcs cannot be recovered in an action of trover. See, too, Minshall V. Lloyd, 2 M. & W. 450; MacJdntosh v. Trotter, 3 M. & W. 184. IWilde V. Waters, 16 C B. G37, and the judgment in Dumergue v. Bumsey, 2 II. & C. 777.] ^ ^ In Berk v Eeboio, 1 P. Wnis. 94, A. B. had covenanted to convey a house and an things affixed to the freehold thereof: this was held not to include hangings and looking-glasses fixed to the walls with nails and screws, and w/iiSt were as tminscot, there being no wainscot underneath. A contrary opinion had been expressed the year before in Cave v. Cave, 2 Vern. 508 ; 3 Bac Abr 63, with respect to jnrtures put np instead of icainscot ; the Lord Keeper thought that they belonged to the heir, for that the house ought not to come to him maimed or disfigured, [and see D'Eyncourt v. Gregory, L. R. 3 Eq. 382] There is, therefore, some contradiction among the authorities on this subject: and, besides, Herlakendcn's Case and Cave v. Cave, dicta will be found in very modern cases which militate against such an extension of the executor's rights as Beck v. Rebow would appear to warrant. See the judg- ment in the principal case, and in Lawton v. Salmon, 1 H. Bl. 260 n. ; Winn v. Ingleby,5 B. & A. 625; Colegrave v. Bias Santos, 2 B. & C. 76; and li. v. Inhabs. of St. Dunstan, 4 B. & C. 686. The rule laid down by Mr. Justice Blackstone is, " Whatever is strongly affixed to the freehold, or inheritance, and cannot be severed thence without violence or damage, quod ex iedibus non facile revellitur, is become a member of the inheritance, and shall therefore pass to the heir." See also the judg- ments in llellawell v. Eastwood, 6 Exch. 295; iMather v. Eraser, 2 Iv. & J. 536; and Wahnsle>i'y. Milne, 7 C B. N. S. 115.] 4 There is another class of cases in which questions have arisen as to the ri-ht to fixtures; those, viz., arising between vendor and vendee, mortgagor and mortgaqee. There appears to be no doubt, that upon the sale of the free- hold fixtures attached to it will pass in the absence of any express provision to the contrary. Per Parke. B., in Hitchman v. Walton, 4 M. & AV. 409. See Ruall V nolle, 1 Atk. 175; Steward v. Lombe, 1 B. & B. 507; rhresher v. E. London Waterrvorks Co., 2 B. & C. 609. And in Colegrave v. Bias Santos, 2 B & C. 76, the court appears to have considered the rule between vendor and vendee to be the same as that between heir and executor. " In the case of an heir selling a house which descends to him, in the absence of any express stipulation, he would be taken to sell it as it came to him, and the fixtures would pass " Per Baylev, J., ibid. If, however, there be an express term in the ao-reement relating to the fixtures, that is of course to be abided by. The words " nxtures to he taken at a valuation " are sometimes used ; and a learned author is of opinion, that these include such fixtures as would be deemed per- sonal assets between heir and executor. (See Hitchman v. Walton, 4 M. & W. 409 ) Where a house is demised together with the fixtures, the tenant's interest in them is similar to that which he enjoys in respect of trees ; and if he sever them the right of possession immediately revests in the landlord, who may brin- trover. Earrant v. Thompson, 5 B. & A. 826. However, the tenant's 1452 ELWKS V. MAWK. interest is sufilcient to ctialjle him or his assignee to maintain trover against a wrong-doer wJkj tortioiisly severs tliem. HUihmnn v. Wntton, 4 M. i \V. 409; Buydell v. M'Michad, 1 C. M. & 11. 177. As to MorUjayes, there seems no good reason for saying, that a nmrtgage of land can be construed to pass any ditlerent riglits with respect to llxtnreM than a conveyance. (Hco Ilitchiiinn v. Waltun, 4 M. &\V. 400; Lanyittaffe v. Meaffoe, 2 B. & Adol. 1G7 ; Tnippes v. Ilarttn-, 3 Tyrwli. (50:$ ; [and WitlmHley v. Milup, 7 C. B. N. S. 11'),] as to the construction of such niortgages). The contrary, indeed, was sui)posed to liave been laid down in AV />. (ininrey, 1 Atk. 477; but, as Mr. Amos has shown, without any very sulllcifnt reason. The continuing possession of n.xtures by a mortgagor, after a mortgage of the land to which they are annexed, cannot lie tn-ated as a l)adg<' of frnml. See Stewart v. Lombe, 1 B. & B. .lOG; liyult v. liollf, 1 Atk. IC.^. ; Min:ill v. Lloyd, 2 M. & W. 450. [In Waterfall v. renistone, (J E. & B. 806 (api)roved by Malins V.-C, In Beybie v. Femcick, L. K. 8 Ch. 1079 («), it was lu-hl that maciiinery annexed to an estate after a mortgage did not pass to the mortgagee its parcel of tlio freehold, the instrument of mortgage showing tliat the parties did not so In- tend. But in a later case in wliieli a mortgai^or who was the owner i)f the inheritance had annexed, after tlie date of tiie mortgage, tlxtures to the free- hold for a permanent purpose, and for the better enjoynu-nt «>f the estate, It was held by the Court of Common I'li-as that tliese fixtures had l)ecome a part of the mortgaged estate, there being no evidence of a contrary Intention, and that they could not be claimed by the assignee in Imnkruptcy of the mortgagor, although they ndgiit be trade fixtures, whicli in the ca.se of an ordinary tenancy would have i)een reniovablt- l)y the tenant. Waliiinley v. Milne, 7 C. B. N. S. 11"). .Vud the like rule applies in mortgages of lease- holds, both as to tlxtures annexed at tlie time of and snl)se(|nently to the mortgage, and whicii in the onlinary course the mortgagor, had he not exe- cuted the mortgage, would have been entitled to remove, Mnu v. Jariths. \., R. 7 H. L. 481. In Wahnxley v. Milnr, the court explained and distinguished Trappes v. Harter, and Waterfall v. Peiiistone, and stated tlmt the decisions which establish that where a tenant for years has put up trade tlxtures, he may remove them before his tenancy expires, have no application to cases between mortgagor and mortgagee, in which the relation of landlord and tenant does not exist. The same rule was recently followed in CuUirk v. Swindell, L. R. 3 Eq. 249; and Climie v. Wood, L. R. :5 Ex. 2.-)7 ; 4 Ex. .•528; and so as to trade fixtures annexed in a " 7Ha.11 permanent manner," Aon//- bottom V. Berry, L. R. 5 Q. B. 12:$, approved in the ('. A. in Shejjield, &c., Buildiny Society v. Harrison, 15 Q. B. I). 358, 54 L. J. C^. B. 15. See also Mather v. Fraser, 2 Kay & J. 53G ; Fx parte Ashhnry, in re Ficharda, L. R. 4 Ch. 630 ; Holland v. Hodyson, L. R. 7 C. P. 328 ; Tottenham v. Swanitea Zinc Ore Co., 52 L. T. 738. In another modern case a lessee mortgaged tenant's fixtures and afterwards surrendered his lease, and took from his landlord a fresh term; it was held, under these circumstances, that the mortgagee had a right to enter and sever the fixtures, as it was not competent to the tenant to defeat his grant by a subsequent voluntary surrender. The London Loan and Discount Co. v. Drake, 6 C. B. N. S. 798; Saint v. Pilley, L. R. 7 Ex. 137. And although the mortgagor has " for the purpose of better securing the interest," attorned tenant to the mortgagee, the latter is entitled to the trade fixtures against the trustee of the bankrupt mortgagor, though affixed after the execution of the mortgage, Ex parte Punnett, 16 Ch. D. 226, 50 L. J. ELWES V. MAWE. 1453 Ch. 212. But where mortgagor in possession tias let the premises after tlie mortgage, trade fixtures brought on by the tenant may be removed by him as by any other tenant, /Sandeis v. Davis, 15 Q. B. D. 218, 54 L. J. Q. B. 576. The question, wliat are fixtures? was frequently discussed with reference to the operation of the Bills of Sale Act, 17 & 18 Vict. c. 36 (now repealed ))y 41 & 42 Vict. c. 31), as to the registration of mortgages embracing fixtures, Boijd V. Shorrock, L. R. 5 Eq. 72 ; Ilawtrey v. Butlin, L. R. 8 Q. B. 290 ; Ex parte Dalglish, L. R. 8 Ch. 1072; Meux v. Allen, 22 W. R. 609 (decided appar- ently under a mistake of fact, see Meux v. Jacobs, ubi sup.) ; and the rule established under the earlier act would seem to have been that the terms of the deed itself nmst be looked at, in order to determine whether the parties themselves intended to constitute the fixtures a distinct security, in which case onl}' would the deed require registration. Ex 'parte Barclay, re Joice, L. R. 9 Ch. 576. The test in these cases has been Avhether there was or ^vas not a power to sever and sell the fixtures; and see Re Eslick, ex parte Alex- ander, 4 Ch. D. 503 ; Re Trethovjan, Ex parte Tweedy, 5 Ch. D. 559. Questions of this kind are now concluded by the Bills of Sale Act, 1878, 41 & 42 Vict. c. 31. By s. 4 of that statute, fixtures (when separately assigned or charged) are constituted " personal chattels" for tlie purposes of the act, but fixtures other than trade machinery as tlierein defined are excepted from the defini- tion, when thej^ are assigned together with a freehold or leasehold interest in any land or building to whicli they are aftixed. In the definition of " trade machinery," s. 5, the fixed motive powers, and the fixed machinery for trans- mitting the action of the motive powers, and pipes for steam, gas, and water, are excluded, and with these exceptions the machinery used in or attaclied to any factory or woi'kshop is constituted personal chattels, and any disposition tliereof wliicli would be a bill of sale as to any other personal chattels shall be deemed to be a bill of sale within the act. By s. 7, " No fixtures or gi-ow- ing crops shall be deemed, under this act, to be separatel}^ assigned or charged bj^ reason only that they are assigned by separate words, or that power is given to sever them from tlie land or building to which they are attixed, or from the lands on wliicli tlie}' grow, Avithout otherwise taking pos- session of or dealing with such land or building, or land, if by the same in- strument any freehold or leasehold interest in the laud or building to ^^•hich such fixtures are affixed, or in the land on which such crops grow, is also conveyed or assigned to the same persons or person. " The same rule of construction shall be applied to all deeds or instru- ments, including fixtures or growing crops, executed before the commence- ment of this act and then subsistiug and in force, in all questions arising under any bankruptcy, liquidation, assignment for the benefit of creditors, or execution of any process of anj' coui-f which shall take place or be issued after the commencement of this act." Putting aside therefore trade fixtures in the limited sense of the definition, which are for all purposes of the act to be treated as mere personal chattels like furniture, the legislature would seem to have enacted the law as laid down in Mather v. Eraser, and Holland v. Hodgson, viz., that where an in- strument which conveys an interest in land, conveys also fixtures, it does not require registration ; and it proceeds to get rid of some of the qualifications engrafted upon this rule by cases such as Re Eslick, supra, by providing that some of the tests therein referred to are not to be regarded as conclusive proof that the fixtures were intended to constitute a separate and distinct 1454 ELWES V. MAWK, security; see the sections considered in Ex parte Moore, Ac, Banking Co., 14 Ch. 1). 371). In tliat case Bacon, V.-C, appart-ntly refjnrded a tramway a.s not a trade fixture within tiic (Iclliiitlon, and lirld tiiat It, a.s well as a steatu «rune, cramped on to iarjie stones fixed in a bed of mortar, pa^sL-d to iliu nmrt^aKeu of the land without rc-};istratlon.] Questions respecting the riglit to fixtures have also arisen hfttrt-rn the assignees of bankrujits and other parties, (u-nerally speaking, the assignecH of a bankrupt tenant would be entitled to whatever Interest in the llxtureH the bankrupt Inmself possessed. See Trappea v. Jlarter, li Tyrwli. C,o:\; but 6 G. 4, cap. 16, sec. 72, [now repealed, but In substance re-enactetl by the 4G & 47 Vict. c. 52, s. 44,] entitled them to goods and chattels wlddi he had at the time of bankruptcy in his possession, ordering, or disposition, by the consent and permission of the true owner, and of whicli he was reputed owner; and it lias sometimes been conteiiiled, that this enactment [might J have the efl'ect of entitling them to llxlures. The chief decision on thl.s subject is J/orti v. liakfr. '.» I-ast, 21."», which is frecpiently cited, and so partf Foster, 47 L. J. Bkcy. 101) ; Ex parte Glegg, 19 Ch. D. 7. .Il L. J. Ch. 3(17; but the law has been altered by the Bankruptcy Act, 1S83, s. 55, which makes the disclaimer operate from tlie date thereof, and the court in giving leave to disclaim will direct that the landlord shall either take tlie fixtures at a valua- tion, or allow the trustee a reasonable time to remove them. In re Moser, 13 Q. B. D. 738.] Where the assignees of a bankrupt lessee severed and sold fixtures which had been assigned to the plaintiff, it was held, in an action of trespass against them, that the proper measure of damages was the value of the fixtures annexed to the premises, inasmuch as they might have sold them with the lease of the house, and so have realized that value for them. Thompson v. -Pettil, 10 Q. B. 101. [See also as to when fixtures passed to assignees in ELWES V. ]MAWE. 1455 bankruptcy, Waterfall v. Penistone, 6 E. & B. 876, and Walmsley v. Milne, 7 C. B. N. S. 115.] G. As between Heir and Devisee it is held that if tenant for life or in tail devise fixtures, his devise is void, he having no power to devise the realty to which they are incident, Shep. Touchst. 469, 470; 4 Co. 62; unless indeed they be such things as would pass to his executor. [See as to what will pass by such a devise as against the remainderman, D'Eyncourt v. Grerjory, L. B. 3 Eq. 382.] On the other hand, the rights of the devisee of lands against the executor of the devisor would seem, on principle, to be the same as those of the heir in whose place the devisee stands. The term fixtures, in its proper sense, is confined to personal chattels, which, though they have been annexed to the freehold, are removable at the will of the person who annexed them ; Chitty on Contracts (11th Am. Ed.) 489. The character of the property, Avhether personal or real, in respect to fixtures, is governed very much by the intention of the owner, and the purpose to which the erection is to be applied ; 2 Kent 13th Ed. 343. Whatever v/as fixed to the freehold perpeteui usiis was deemed a part of the res immohiles of the civil law. Id. 347, and this perpetuity in the use of the chattel, m connection with the freehold, furnishes an important consideration in determining the question as to whether the chattel, in any given case, is, or is not, a failure. Whether the fixture in any given case is removable depends largely upon the relation of the parties to property and to each other. " It is impossible," says Chief Justice Morton, in the case of Hubbell V. East Cambridge Savings Bank, 132 Mass. 447, "to lay down any precise test by which to determine whether machinery or other articles attached to, or used in a building, become part of the realty. It depends upon the relation of the parties, the character of the articles, their adaptation to, and the manner in which they are annexed to, or used in the building, and generally upon the circumstances of each case as indicating the intention of the parties." See 81 N. Y. 38 ; 42 Mich. 314 ; 46 Tex. 551 ; 40 Mich. 693. In view of this statement of the law, it need surprise no one to find irreconcileable conflict in the many decisions of the numerous courts of this country on this branch of the law of property. The right of a tenant to sever chattels which he has annexed to the realty is not incon- sistent with the doctrine that until severed the chattels are a part of the realty. The contrary view has been a source of 1456 KL\vi:s \. MAWi:. confusions in decisions ii[)i)u this subject. In every caae the relation of the parties to tlic property and to eiieh other inusl be carefully observed. In the numerous ciuses found in Anieriian Reports, controversies respecting fixtures have arisen between vendors and vendees, inorti^a^'ors and niorti,M^'ees, landlords and tenants, executors and heirs or devisees, executors and re- maindermen or reversioners, niortj^agees of the realty and mortgagees of the personalty, and between attaeiiing ereditois or claimants under mechanics' lien laws and others. The rases upon this l)ranch of the law are very numerous, and no attempt has been made to cite ihein all in this note ; l>ut referenee^* have been made in sutlicient nund)er, it is i)elieveil, to show the state of the law in all parts of the country where decisions on this subject have been rendered. ( itations, with few exceptions, are limited to decisions of the courts of linal resort in each jurisdiction. The object or purpose of the annexation — ita influence in the determination of the question as to whether the chattel has become a fixture. — Wall c. ilimls, 4 (»ray -Ot)--Tl ; iJliss v. Wliiliicy, 1> Allen 114 ; Parsons v. Copelund, :38 Me. '^38 ; Capeii V. Peckiiam, 35 Conn. 88; TeatY r. Hewitt, 1 Ohio St. 511 ; I'ti- kins V. Swawk, 43 Miss. 348; Ottumwa Woolen Mill Co. i'. llawley, 44 Iowa 57; Chapman r. I'nion Life Insurance Co., 4 Bradw. (111.) '2\) ; Taylor r. Collins, 51 Wis. 1:23; Strickland r. Parker, 54 Me. 2(U'k Whether a chattel, detaciiable from the realty, without injury, has become an immovable lixture, may depend upon agreement or special relation of the parties ; Warner v. Kenning, 25 Minn. 173. An article by severance and the understanding of parties may become a chattel per.sonal, which would otherwise be a lixture ; Sampson v. Graham, DG Pa. St. 405. The relation of the party to the freehold making the annexation. — J^apham r. >i'ortoii, 71 Me. 83; Towne c. Fiske, 127 Ma.ss. 125; Northern Central R. Co. v. Canton Co., 30 Md. 347; Hill V. Sewald, 53 Pa. St. 271 ; Strickland v. Parker, 54 Me-. 263 ; Wall v. Hinds, uhi supra. A., the owner of a lot of land, entered into a written con- tract to sell the same to C, with the further agreement that C. was to build a house thereon. A small wooden house was, in pursuance of the agreement, built on the lot and rested on wooden blocks. The builder subsequently, without A.'s consent. ELWES Y. MAWE. 1457 removed the house from the lot. Held, that while the house stood upon the lot it was part of the realty and belonged to A., and that after it was moved off it became a personal chattel, but yet remained A.'s property ; Central Br. R. Co. v. Fritz, 20 Kan. 430. See 11 Cush. 11 ; 7 Gray 26. The adaptability of the chattel annexed to permanent use on the land or in the building to which it is annexed. — The Railway Sav. Inst. V. The Irving St. Bap. Ch., 36 N. J. Eq. 61 ; Allen v. Mooney, 180 Mass. 155: Corcoran v. AVebster, 50 Wis. 125; Town v. Firth, uhi supra ; Ferris v. Quimby, 41 Mich. 202. In Allen v. Mooney, uhi supra, it was held to be a question of fact or mixed question of fact and law whether a portable furnace, set on a brick foundation, with the pipes and registers connected there- with, is so placed in a house upon mortgaged land as to become a part of the realty, — the furnace having been placed in the house by the owner and adapted for use therein. The manner of annexation, though an important fact to be consid- ered, yet it does not supply a conclusive test by which to determine whether the given article is or is not a removable fixture. — Van NesS V. Pacard, 2 Pet. 137 ; Holmes v. Tremper, 20 Johns. 29 ; Dame V. Dame, 38 N. H. 429 ; Curtiss v. Hoyt, 19 Conn. 165 ; Barnes V. Barnes, 6 Vt. 388 ; Smith v. Benson, 1 Hill 176 ; Kimball v. Grand Lodge of Masons, 131 Mass. 59 ; Leonard v. Stickney, 131 Mass. 541. In Goddard v. Chase, 7 Mass. 432, it was held that iron stoves fixed to the brick work of the chimneys of the house become a part of the realty and pass with it under a levy of an execution. This case has been doubted, and the facts are too imperfectly reported to make the decision one of much value as an authority. Ferry-boat with chains and buoys held not to be fixtures; Cowart v. Cowart, 3 Lea (Tenn.) 57. It is rather the permanent and habitual use, and not the manner of annexation, that determines the character of the articles annexed. — Cook V. Champlain Trans. Co., 1 Den. 91 ; Brennan v. Whit- aker, 15 Ohio 446; Walker v. Sherman, 20 Wend. 636; Blethen v. Towle, 40 Me. 310 ; Ward v. Kilpatrick, 85 N. Y. 413. In this case mirror frames designed by the owner of the building to which they were attached, for permanent use, were held to be a part of the realty. See, also. Harmony Building Association v. Berger, 99 Pa. St. 320. Temporary severance not intended to be permanent does not divest the article of its characteristic as a fixture ; Williamson v. New Jersey Southern 1458 EL WES V. MA WE. K. U. Co., 29 N. J. Eq. 311 ; Patton v. Moore, 1'". W. \':i. ilH (see 63 Ga. 490). Engines, ears and rolling stoek of a railroad treated as fixtures; MeMillen v. Fish, 1«) W. Va. 010. So ma- chinery in a woollen faetory ; T^yle v. Palmer, 42 Mieh. 314. To constitute an article a fixture, it need not necessarily be actually fastened to the freehold. — Alvord Carriage Co. v. (ik-asoii, 3t> Cttnn. S<) ; Cajji'ii r. Peckham, nfn xnpni ; State v. Northern Central R. Co., 18 Md. 193; Minnesota Co. v. St. Paul Co., 2 Wall. G45, note ; Farrar v. Staekpole, Greeid. 157 ; Snedeker v. Warring, 2 Kern. 170 ; Kowand i'. Anderson, 33 Kan. 264 ; Ilackett v. Amsden, 57 Vt. 432 ; Voorhis v. Freeman, 2 Watts & S. 116; Pyle v. Pennock, Id. 390. This class of cases is sometimes spoken of as eases of constructive annexation ; Morris's Appeal, 8S Pa. 368. Hails and hrit^ks do not U'eome fixtures until actually or constructively annexed to tlic free- hold; Tlnveat r. Stamps, 67 Ala. 96. Hoards used as a perma- nent floor in a corn barn, and stone posts on a farm to be usi-d for fences are fixtures; Ilackett v. Amsden, .")7 \'t. 432 A: 641 ; see Rowand v. Andcison, 33 Kan. 2iil. As between landlord and tenant the law regards with peculiar favor the right of the tenant to remove articles annexed by him to the freehold during his tenancy. — Wall r. Hinds, 4 Gray 270; Galliehl v. Ilapgood, 17 Pick. 34; Miller v. Baker, 1 Met. 27; Winslow V. Merchants' Ins. Co., 4 Met. 306 ; Pellenz v. Buller- dieck, 13 La. Ann. 274 ; 18 La. Ann. 614 ; Finney v. Watkins, 13 Mo. 291. In Aml3s v. Hill, 10 Mo. App. 108, the court lield a fixture is removal)le when the premises will be in as good con- dition after removal as before, and these questions are in all cases for the jury. In Deane v. Hutchinson, 40 N. .1. K^\. S3, it was held that a building erected by a tenant on leased land was not removable as a trade fixture, liis lease containing no provision for such removal. This seems to be a limitation of the tenant's right of removal, which will not be found in the decisions of courts generally. A building may as well be a trade fixture as a piece of machinery placed within it. Li the case of King v. Johnson, 7 Gray 239, Bigelow, J., states succinctly the general rule of the common law to be, "that things affixed to the realty become part thereof, and belong to the owner of the soil." He also gives '• the reasrm why a tenant is allowed to remove structures erected for pur- poses of trade or convenience, aflixed by him to the realty ELWES V. MAWE. 1-*^^ during his tenancy; it is because havmg paid as rent a full equivalent for the use of the premises as demised, it .vmild be inequitable to compel Mm to forfeit articles at the end of the term which he had procured for his own use, and at his own expense " But in that case the court decided that a person occupyino- land under an agreement with the owner to pur- chase pa'yino- no rent, has not a tenant's right to remove a fixtui'e he\as placed on the land. See McLaughlin .. Nash, 14 All 1 Qr* The fixtures which a tenant may remove are (1) those put up for ornament or the more convenient use of the demised premises, and (2) trade fixtures; such as cisterns, sinks, and gas nipes- Wall V. Hinds, uhi supra; a padlock for securing a corn-barn and movable boards fitted and used for corn-bms ; Whiting .. Brastow, 4 Pick. 310. Trees and shrubs on land demisel and used as a nursery garden ; Miller . Baker 1 Met. 273 Platform scales; Bliss v. Whitney, 9 Allen 114. A wooden ice-house; Antoni .. Belknap, 102 Mass. 193. Bowling alleys with their usual appurtenances; Id. 201. A glass ease case of drawers, a mirror and gas fixtures procured by a tenant for an eating-saloon ; Guthrie v. Jones, 108 Mass. 191. Counter, shafting, pulleys, hangers and belts, a Portable fur- nace, and steam pipes; Holbrook v. Chamberlm, 116 Mass. 155. See Talbot v. Whipple, 14 Allen 177 ; Kimball «. Grand Lodge of Masons, 131 Mass. 69. A pump placed in a well by a tenant, he n^ay remove ; MeCracken .. Hall, 7 Ind. 30^ A new bo.Ier, back stand, and valve put in a mill; Mason .. Fenn, 13 11. 5-5 A ball-room erected by the lessee of an inn ; Omburyt.. Jones, 19 N J 284. A still set up on land of the lessor by the lessee ; Pillow 'v. Love, 5 Hayw. (Tenn.) 109. Buildings erected by lessees upon vacant lots under "ground leases are by a cus- tom in the city of Milwaukee removable as fixtures; Keogh .. Daniell 12 Wis. 163. Fixtures of a saw-mill ; Stokoe v. Upton, 40 Mich. 681. See McAuliffe ». Mann, 37 Mich. 639. A steam engine, machinery, and fixtures attached to the soil by a lessee, for the purpose of hoisting coal from mmes situ- ated thereon, including all boxes and other necessary WP^"^ connected therewith, become fixtures ; Dobschuetz .. Holliday, 82 111. 871, 876 ; Ege .. KiUe, 84 Pa. St. 333. Mirrors set m the wall of a building by making recesses therein, which re- cesses would be left rough if the mirrors were removed, will be 14(10 KLWKS V. MAWK. considered as part of tlio Ireeholil ; .M;itki»' /•. Smith, '» La. Ann, TIT. Tliis case arose under the ('<»du (»f La. Arts, 4.'>'.>, ItlO. Tlic rule as to the rii^dit of tenants to niiiove, as jjfiierally adoi)ted in the courts of this country, is stated hy Story, .L, in giving the opinion of the court in Van Ness r. i'aeani, 2 IVt. 140: " The (question whether reniovahh' or not «h)es not tle|>end upon tljo form or size of the huihhng, whi-tlier it has ii hrick foun(hition or not, or is one or two stories high, or lias a hrick or otlier chimney. The soh; question is, whether it is designed for [)urposes of trade or not. The foHowing eases ilhistmte \ annus aspci-ts of the rights of Lindlord and ten;ints as to fixtures: MiUer r. IMumh, ♦» Cowcn 60') ; Kittredge v. Woods, " N. 1 1. oOo : I)esj)iitch Line v. Hcllamy ^[fg. Co., 12 N. IL 20'); Powell r. Monst.ii Mfg. Co., 3 Mason 4r)(); F;irrar r. Staekpole, ♦> Greeiil. l.')4; Voorhis v. Freeman, 3 Watts »!t S. lit); Swift r. Thompson, !> Conn. «'•:? ; Itohinson r. Wright, 2 MacArthur 04 (1). ('.). A lessee who accepts a new lease of tlu; demised prcmi.scs before the expiration of the first term, the new term to com- iiimce at the close of the first, lo.ses his right to remove, at the end of the first term, fixtures he had placed on the premises before the execution of the new lease, if there Wi no reservation in tlie new lea.se of his right of removal ; Watris.s r. National r>aiik of Cambridge, 124 Mass. oTl. Hut in Kerr r. Kingsbury, o'.» Mich. 150, it was held that the tenant's right of removal eon- tiuucd under the new lea.se. See Marks v. Ryan, 03 Cal. 1<»T. One deriving title to demised premises, while the tenancy ex- ists, under a mortgage given by the lessor subsequent to the lease, has no other or greater rights as agjiinst the tenant than the lessor had : Globe Marble Mills v. Quinn, T'"* N. V. '2-\. The law of fixtures as between mortgagor and mortgagee. — Machinery which may be easily disconneete(l from the fri'eli(dd and used in any other building does not pass to the mortgagee of the freehold, absolutely : Gale v. Ward, 14 Mass. 3')2 ; Taylor V. Townsend, 8 Mass. 411. Machines adapted for use in any building in which they can be put, secured in position by bolts, &;c., and capable of being removed without injury to themselves or to the building, do not necessarily, as matter of law, pass under a mortgage of the building and land on which it stands ; Maguire v. Park, 140 ^Nlass. 21 ; Carpenter r. Walker, Id. 410. A chattel mortgage on machinery in a building was given in ELWES V. MAWE. 14G1 contemplation of the same being annexed to the realty. After it was annexed, a mort.c^age of the land and bnilding was given. Held, that the second mortgagee conld hold the machniery against the first mortgagee ; Pierce v. George, 108 Mass. 78. See Adams v. Beadle, 47 Towa 439. See Ridgeway Stove Co. V Way, 141 Mass. 557. Machinery so attached to mortgaged premise's as to be a part of the freehold as between mortgagor and mortgagee, cannot, by any agreement between the mortga- gor and a subsequent lessee, be converted into personalty, so as to affect the rights of the mortgagee ; Thompson v. Vinton, 121 Mass. 139. See Robertson v. Corsett, 39 Mich. 777. A mortgage of a building covers fixtures intended to perma- nently increase the value of the building for occupation, but not machines incidental merely to the business carried on in the building at the date of the mortgage ; McConnell v. Blood, 123 Mass. 47. Whether a portable furnace is so placed in a house as to be covered by a mortgage of the land is a mixed ques- tion of law and fact ; Allen v. Mooney, 130 Mass. 155. Iron rails so placed on the road-bed of a railway company as to be part of the realty, yet by agreement between the vendor of the rails and the company they may, when so placed, retani their character as personal property ; but such agreement can- not affect the rights of a prior mortgagee of the railroad ; Hunt V. Bay State Iron Co., 97 Mass. 279. See 130 Mass. 547 ; 127 Mass. 542; 132 Mass. 447; Cooper v. Davis, 15 Conn. 556; Burnside v. Twitchell, 43 N. H. 390. Fixtures placed in a building by the mortgagor, after the exe- cution of the mortgage, become part of the realty and cannot be removed by him as against the mortgagee ; Wood v. Whelan, 93 111. 153 ; Winslow v. Merchants' Ins. Co., 4 Met. 306 ; Cole "v. Stewart, 11 Cush. 181 ; Wight v. Gray, 73 Me. 297 ; Clore v. Lambert, 78 Ky. 224; Smith Paper Co. v. Servin, 130 Mass. 511 ; Hamilton t'. Huntley, 78 Ind. 521 ; Jones v. Detroit Chair Co.,' 38 Mich. 92. See Richardson v. Copeland, 6 Gray 536; Lynde v. Rowe, 12 Allen 100. Gas chandeliers and pendant gas burners, capable of being detached without injury to the pipe or building, not covered by a mortgage of the realty ; ISIontague v. Dent, 10 Richardson (S. C.) 135; Vaughen v. Haldeman, 33 Pa. St. 522; Chapman V. Union Life Ins. Co., 4 Bradw. (111.) 29; Early v. Burtis, 40 N. J. Eq. 501. 1462 ELWKS V. MA\VK. A mortgage of an entire line of a railroad, with all tlie tolls and revenues thereof, covers not only the line of the road, but all the rolling stock and fixtures, wliether movable or immova- ble, essential to the production of tolls and revenues ; State v. Northern Central R. Co., 18 Md. 104. See Arnohl r. Crowder, 81 111. 56. If a tenant at will of the mortgagor adds lixtures to the mortgaged premises, his right of removal, after the mort- gfigee has taken possession, is governed by the rule as In-tween mortgagor and mortgagee, and not as between landlortl and ten- ant; Lynde i'. Ilowe, 12 Allen 100. A planing machine put into a mill after the execution of a mortgage of the latter, and rest- ing by its own weight on the floor and connected with tlio machinery by a running belt, hidd to be pei-sonal property and not covered by the mortgage of the realty; Wells v. Maph*s. 15 Hun 90. See Hart /•. Sheldon, *U Hun IW ; Booraem v. Wood, 27 N. J. E: ninfrn in I'lMinsylvania, Smith r. Johnson, 1 1'. & W. 471 ; Kt'isel v. Karncst, 21 I'a. St. W. Si-f I'ickrns v. Keed, 1 Swan (Tenn.) HO. Maiiurt! made in tin* <-♦;; : «'i Greenl. 222; Gallagher v. Sliiplcy, 24 Md. 4lS; I'lumrr v. riumer, 30 N. H. ooS. See Ruckman v. Ontwater, 2S N. .1. I.. 5H1. An oroan placed in a n-ri'ss tittt-d for it in a thnrrh lield to 1)(! a lixtnre as between vendor and vendee; Kofjei-s v. Crow, 40 Mo. 01 : Strickland v. Parker, ;")4 Me. 2<;3 ; Thomas v. Davis, 70 Mo. 72. riMiI)cr trees, ent down and lyini,' at fnll leii<,'th on the ground where they i^rew, will pa.ss hy a deed of the kind; Hraekett v. (ioddard, i'A Me. 309. So growint,' crops :ind niannre lyiJiGf n[)on the laml, feneintj materials on a farm, tliouo-h temporarily detaclied hnt with no intent of «liv»'rtinjj them from iheir nse ; ({oodrieh r. Jones, 2 Hill 142. So hop poles used in eidtivatincr hops; Bishop v. Bishop, 1 Kenan 123 (N. C). What is in its nature, otherwise pei-sonal prop«'rty, will when actually or constructively attached to the .soil, hy its use or intended use, become a j>art of, and pass by a deed of the realty; Jenkins v. McCiirdy, 4S Wis. ♦»2S. Cotton-ijin and press when removable without injury to the freehold are not fixtures as between vendor and vendee; McJunkin f. Dupree, 44 Tex. 500. See Connor r. S(|uiers, .')0 Vt. <'>S0 : Ci.leman v. Stearns' M'f'g Co., 38 Mich. 30. As to the time within which the tenant can exercise his right of removal of fixtures. — The general rule is that it nnist be done during or at the end of the term; Hinckley v. Black, 70 Me. 473 ; Rines v. Bachelder, 62 ]\Ie. Oo ; Towne v. Fiske, 127 Miiss. 125; Torrey v. Burnett, 38 N. J. L. 457; Fratt v. Whittier, 58 Cal. 126; Jenkins v. Mctkirdy, 4S Wis. 628; Overton r. Willis- ton, 31 Pa. 155. See 20 Kan. 430 ; Josslyn v. McCabe, 46 Wis. 501 ; Darrah v. Baird, 101 Pa. St. 205 ; 31 Pa. 155. A tenant whose lease in terms gives the right to remove, at the end of the tenn, buildings which he has erected on the demised premises, may exercise that right within a reasonable term after the ex- piration of the term ; Smith v. Park, 31 Minn. 70 ; Griffin v. Ransdell, 71 Md. 440 ; Youngblood v. Eubank, 68 Ga. If ten- ant fails to exercise his right of removal witliin the period of EL WES V. MA WE. 1465 his term, the presumption is that he relinquishes his claim to his lessor, but this presumption may be rebutted ; Railroad v. Deal, 90 N. C. 113. The tenant may remove at the end or dur- ing the continuance of his term, trade fixtures which he has annexed to the freehold, but not after he has surrendered pos- session ; First Sudbury Parish v. Jones, 8 Cush. 184 ; Burk v. Mollis, 98 Mass. 55 ; Haiiick v. Stober, 11 Ohio 482 ; Davis v. Moss, 38 Pa. 346; Preston v. Briggs, 16 Vt. 124; Moody v. Aiken, 50 Texas 65. See Smith v. Park, 31 Minn. 70. His right of removal once lost, is not renewed by his taking a subsequent lease ; Shej)ard v. Spaulding, 4 Met. 416 ; Mclver v. Estabrook, 134 Mass. 550. See Devin v. Doughert}^ 27 How. Pr. 455. When the term is uncertain or depends upon a contingency, as where a party is tenant for life, or at will, he may remove fix- tures within a reasonable time after the tenancy is determined ; Watriss v. National Bank, ubi supra; Folsom v. Moore, 19 Me. 252 ; Mclver v. Estabrook, 134 Mass. 550. In this last case a tenant at will of a lessee erected a building on the land with knowledge and consent of the original lessor, Avith the under- standing that the tenant at Avill could remove the house as a trade fijcture. After the expiration of both terms, the build- ing not being removed, the lessor resumed possession of the land and then rented the same with other land to the former tenant at will. Helcl^ that the tenant at will could not then remove the building. There is a class of cases important to be ruled, wliich point out the cUstinction between chattels, which have been so attached to the freehold as to become fixtures, and so for the time being part of the realty, and chattels so placed upon the land of another as to remain only chattels personal, as, when a son built a house on the land of his father under an expectation that the father would devise the land to him, it was held that the house did not become a fixture, but remained the personal property of the son ; Wells v. Banister, 4 Mass. 513. See Dame v. Dame, 38 N. H. 429 ; Barnes v. Barnes, 6 Vt. 388 ; Bewick v. Fletcher, 41 Mich. 625. Shelving and drawers, placed in and connected with a build- ing under a license from the owner of the building — the relation of landlord and tenant not existing between the parties — Avere held to remain the personal property of the persons putting- them in the building, and they did not become fixtures ; Stout 14G6 ELWKS V. MAWK. V. Stoppel, 30 Minn. 5G ; Sluipira v. Barney, Id. r>9; Brown v. Lillie, G Nev. 244; Hill v. Sewuld, .',3 Pa. St. 271; Kiism-H i'. liicluirds, 1 Faiif. (Me.) 429; Pullun v. Bell, 40 Me. 'MA; Cresson v. Stout, 17 Johns. 110; Kuyniond r. W'liitr, 7 (Dwcn 319 ; Tobias v. Francis, 3 Vt. 425. An iron boiler placed in a buildini^ by a tenant at will, up»in a foundation, llie ed^a's ot" tlie brick work being cemented before the Ixjiler was placed thereon so as to keep it in ])la(e, and an iron tank similarly placed, held not to \>c fixtures, but that they remained personal property of the tenant ; Cooper v. Jolmson, 143 Mass. lOS; Wolford r. Itaxter, 33 .Minn. 12; McKeage v. Hanover Fire Ins. Co., 10 Hun 239. See s, c. Si N. Y. 38; Sisson v. Hibbard, 7') N. Y. 042; Early v. Burtis, 40 N. J. Eq. 501. This distinction between challels, which do or do not become chattels real as distinguished from chattels pei*sonal, seems not always to be carefully olwerved. See Northern Central K. K. Co. V. Canton Co. of Baltimore, 30 Md. 354 ; Holmes v. Trem- per, 20 Johns. 29; Wcthcrbee v. Foster, 5 Vt. 142. As between administrator ami heir it was held, that a heavy stove, placed by the intestate in a chimney, having no hreplace and set on brick work so that it was doubtful whether it could be removed without disturbing the brick work, was part of the realty; Tuttle v. Robinson, 33 N. H. 119. HORN V. BAKER. HILARY, 48 GEO. Z.—IN THE KING'S BENCH. [reported 9 EAST, 215.] A.^ B. and C, partners and distillers, occupied certain premises leased to A. and another, and used in common in the trade, the stills, vats, and utensils necessary for carrying it on, the prop- erty of ivhich stills, S^c, afterwards appeared to be in A. On the dissolution of the partnership, ivhich was a losing concern, it was agreed that C. and one J. should carry on the business on the premises ; and by deed between the two last and A. it was covenanted and agreed that A. should withdraw from the business, and permit C. and J. to use, occupy, and enjoy the distil-house and premises, paying the reserved rent, ^c, atid the several stills, vats, and utensils of trade specified and Slum- bered in a schedule annexed, in consideration of an annuity to be paid by C. and J. to A. and his wife and the survivor ; with liberty for C. and J. on the decease of A. and his wife to pur- chase the distil-house and premises for the remainder of A.'s term, and the stills, vats, ^c, mentioned in the schedule ; and C. and J. covenanted to keep the stills, vats, and utensils in repair, and deliver them up at the time, if not purchased ; and there was a proviso for re-entry if the annuity were two months in arrear. Under this, C. and J. took possession of the prem- ises, with the stills, vats, and utensils, and carried on the busi- ness as before; and made payments of the annuity, which after- wards fell in arrear more than two months ; but A.^s widow and executrix who survived him did not enter, but brought an action for the arrears, which was stopped by the bankruptcy of C and J., ivho continued in possession of the stills, vats, and utensils on the premises. 1467 14G8 hoi:n v. iiAKtiu. On a question, Whether such iitillif, vatg, and uttngil», go continu- in;/ in pontsession of C. and J. the new partnert, and u«ed by them in their trade in the name manner an they had been by the former partners, of whom A. the owner watt one^ passed under the stat. 21 Jac. 1, r. ll>, sx. 10 }f- 11, to the assiynees of C. and J. as beiny in the possession, onltT, and «»siti()n, of the bankrupts at the time of their bankruptry as if|uiteil own- ers? and nothiny appearimj to the world to rebut the presum/>- tion of true ownership in the bankrupts arisiny out of their possession and reputed ownership Of which reputed ownership the jury are to judye from the circumstances) ; held, 1, That the stills which were Jiued to the freehold did not pass to the assiynees under the words ^'ooiLs and chuttcLs in the statute. ■2. That the vats, .fv., which were not so fixed did pass to the assiynecx, as beiny left by the true owner in the possession, order, and disposition (as it appeared to the eye of the world) of the bankrupts, as reputed owners. 8. That the case wouhl hare admitted of a different consideration if there had been a usaye in the trade for the utensils of it to be let out to the traders ; as that iniyht hare rebutted the presump- tion of ownership arisiny from the possession and apparent order and disposition of them. This was an action to recover in durinsf her life ; and that, l)eint^ so entitled, and the defendaiii.^ well knowing- the same, they wrongfully and injuriously broke and destroyed part, and sold and disposed of the rest. Tiie second count ^vas in trover for the same goods ; to which the defendants pleaded not guilty ; and upon the trial iK'fore Lord Ellenborouyh, C. J., at the Middlesex sittings after the last Term, a verdict was found for the plaintiff for 1000/,, subject to the following case. The plaintiff is the widow and executrix of her deceased husband John Horn, who, before, and at the time of making the indenture on the 20tli of March, 1801, after mentioned, was a distiller in Southwark. The defendants are the assignees of Wm. Horn and R. HORN V. BAKEK. 1469 Jackson, who succeeded John Horn in the business of a dis- tiller, and carried on the same until they became bankrupts, as after mentioned. At the time of making the said indenture John Horn held the principal part of the messuages, buildings, and lands whereon he had carried on the business of a distiller in partnership with Robert Horn and William Hoin, and whereon there had been erected a rectifying distil-house, under a lease granted to him and R. Jackson (since dead) for a term which expired on the 30th of December, 1804 ; and he held other parts of the premises under another lease granted to him and the said Richard Jackson, since deceased, for a term which expired on the 24th of June, 1805 : and he and the said Richard Jackson, now deceased, had before held other parts of the prem- ises under a lease for a term which expired on the 25th of December, 1799. The above-mentioned partnership, which was a losing concern, expired before the making of the inden- ture hereinafter mentioned ; and William Horn, at the time of makino- that indenture, and at the death of John Horn, was and now is indebted to the estate of John Horn in 500^. in respect of their partnership. By indenture dated 20th of March, 1801, between John Horn of the one part, and William Horn and Rd. Jackson (the bankrupts) of the other; after reciting the said several leases, and that at the time of making the last lease, the said Rd. Jackson (deceased) was in partner- ship with John Horn ; and that John Horn had lately entered into partnership with Wm. and Robert Horn for a term then expired; and that since the expiration of the last-mentioned lease the premises therein comprised had been used and occupied by John, Robert, and Wm. Horn, as yearly tenants ; and that the partnership between John, Robert, and Wm. Horn had before the execution of that deed been dissolved by mutual consent; and that it had been agreed between John Horn of the one part, and Wm. Horn and Rd. Jackson of the other part, that John Horn should withdraw from the business as from the 1st of March then instant, in favour of Wm. Horn and Rd. Jackson, and permit them to use, occupy, and enjoy the said distil-house, and other the premises mentioned in the indentures of lease, and the several vats, stills, and utensils of trade therein or thereon, and which vats, stills, and utensils were specified in the first schedule written under that inden- ture, in consideration of an annuity of 600Z. to be paid to John 1470 »i«)i:N V. iiAKi:u. 11(1111, his executors, &f., (liiiiii«,' lia- lift- of liimself and VAinv- beLh his wile (the now plaintilY) ami the life o( the Murvivor subject to terms ixnd comlitions hereinafter expressed; uml rfcilim,' larliier, that it had l)een a^Meetl that the debti* duo t«> John, linlnil, and \\ 111. Horn, a.s late it^partners, and uUo all the horses, earls, tliays, and casks, of tin- late eo-piirlnunihip (exrcpt the i'cttn, xtillx, tiinl ut» hmHh mentioned in tiie saitl lii-jit schedule), should be vahuMl and purihased by Wm. Horn and Kd. Jackson; and that a valuation had U-en made ae.ordin^dy ; by which it ait[)eared thai smh r the lives of hiiii-^clf and his wife (the plaintitT), and the survivor; he, John Horn, in |)ursnanee of the a^Meement, and in eoiiMidera- lion of Ihf two bonds and the covenants and aifreementw after contained on behalf of Wm. H«>rn and IM. .buks«>n, for him- self, his lu'iis, executors, «\:e., eoveuiinted and aj^reed with Wm. Horn and IM. Jackson, their executoi-s, administrators, and assigns, that they, "til ami trulif pai/iivf the rtnt't n'nerrfil by the several recited leases, and performitui all and ifint/ular thf covenants and aift'cfnifntu therein contained on the lessees' iind assi<]fnees' parts, and also dii/// and reijularlif paifinij the xaid annniti/ so seemed as aforesaid, shoidd and lawfully might peaceablif and ijidetli/ hare, hn/d, use, oceujnf, pintnenn, and enjoj/ the xaid nieaxuai/e, tenement, distil-house, and premises thereby (leiuised and mentioned in a certain deed-poll indorseay the rent reserved by the leases, and to perform the covenants. There was also a proviso in that indenture, that, in case the annuity should he in arrear for two calendar months, John Horn, his executors, iff., mif/ht re- enter the disfil-house and premises, and the same with all and everif the stills, vats, a7id thinr/s mentioned in the said schedule have again, 7'eposses8t and enjoy as in his former eftate, &c. HORN V. BAKER. 1471 There was also a covenant, that upon the decease of the sur- vivor of John and Elizabeth Horn, Wm. Horn and Rd. Jack- son should be at liberty to purchase the distil-house and prem- ises for the remainder of the term in the leases, and the stills, vats, and things mentioned in the said schedule. And another covenant that Wm. Horn and Rd. Jackson should keep the said stills, vats, and utensils in repair ; and in case they should not purchase the same, tliat they should at the end of the agreement deliver them up to John Horn, his executors, &c., in good condition, reasonable use and wear excepted. (Then followed the schedule referred to of the different stills and vats, numbered in order, and describing the quantity in gallons which each would contain.) The case further stated, that Wm. Horn and Rd. Jackson took possession of the premises immedi- ately on the execution of the indenture of agreement, and carried on the trade of distillers, and from time to time paid the interest on the bond and the annuity to John Horn, who died about four years ago, and who by his will gave all his property to his wife, the plaintiff, and appointed her sole execu- trix. Since (a) the death of John Horn neither the annuity nor the interest of the bond for 1815Z. have been regularly paid ; but the plaintiff, as she from time to time was in want of money, and notwithstanding the annuity and interest might not then be due, apj^lied to Wm. Horn and Rd. Jackson, who paid her different sums on account of such annuity and interest ; and also by her order occasionally paid sums to vari- ous persons for her use, and supplied her with liquors and spirits as she from time to time ordered any, so that there was a running account between them and the plaintiff. The fol- lowing memorandum was signed by John Horn, and indorsed on that part of the deed in the possession of Wm. Horn and Rd. Jackson : viz. " I the within-named John Horn do hereby undertake and agree to accept and take 500Z. by equal quar- terly payments instead of 600Z. for the first year's annuity within referred to." To this memorandum there was no date, nor did it appear when it was made. The following indorse- ment or receipt w^as also written on the said deed, and signed by the plaintiff as executor of John Horn : viz. " March 1st, 1802. Received of the wdthin-named Wm. Horn and Rd. {n) AVhat follows down to the let- consent to the case after the first ter a on the next page was added by argument. 1472 HOKN \. r.AKKi:. Jackson 500/. lu-iiiy: one yt'iu's ammity din- fmin tlieiu tlii.s oscs speciticd herein." 'I'he lirst meino ran(hun a]>{)cared to he in the liandwriting of the st)licitor wlio drew the (K-cd: the two hist receipts were in the liantlwriting of ltd. Jackson. For many montlis previons to the hankrnj>tey of W'ni. Horn and IM. .lackson the jjlaintiff found gicat ditli- enlty in ohtaiiiiii^' money fiom them; and slie permittrd the annuity and interest to run in arrt-ar ; an«l notnuth»tiin>liini the name were more than two monfhx in arreur, the phiintitT did not make any chiim to re-enter the j)remi.ses, as hy tlie dee><••'>, hrouglit an action in tliin court asrainst Wm. Horn and Ud. Jackson to recover the arrears of the annuity, as also to ohtain payment of the Ixmd for lHl;'>/. and interest; to which action tliey ph'ach'd eight several pleas, ui)on seven of which issue was joine*j»»-jt«iVM, onfii; tnul >/inpoKitton, any j,n>ods or t liattels whereof tliey shall he tu'piift'if f>//'«f/*y, and ttike upon them the *le, tho true ohji'ct was to d«'prive partieidar creditors of tlwir sjMM-itio licM on ^oods, wlii» h having U'cn the property of the Uinkrupt, had i)een secretly conveyed hy him to .su«h creilitoi-s, who suf- fered him still to continu«' in possession and apjH'ar to t'.ie world as the owner, 'i'hat provision was made in the case of hankrupts in order to avoid the douht whirli had arisen upon the stat. l^i KHz. c. o (u) atjainst fraudidt'Ut conveyaiu'i's t«) tie- feat and delay cre(litors in i^eneral (and which doid)t still exists on the statute of l^li/.ahetli )• wlietlii-i- it werr Hot coulimMJ, as at couinion law it certainly was, to avoid tlu' convt-yance as aujainst those only who were creditoi-s of the party at the tinu*. Wherefore the statute of James extended tlu- provision to all the creditors, as well those who hecame su( h afterwards ais those who were such at the time of the conveyance. Hut still construing the two statutes tocrether, as made in pari materitt^ many great lawyers have considen-d that the preamhle in the 10th sect, of the stat. 21 Jac. 1, c 10, controlled the enactment in the lltli sect, and contined the operation of the statute to cases where the property conveycil to ;i particular creditor wa.s before that time the property of the hankrupt himself. Of this opinion was Lord C. J. Holt, and the Court of K. I». in L'Apostre v. Le Plaistrie (7)), and Lord C. B. Parker, and Lord Hardtvicke in RyaJl v. RoUe (^') : though the contrary has since {n^ S.ee Twyne's Case, ante, \6\.. \. (r) i Atk. 175, 182; and 1 Ves. p. \, et notas. 365, 371. (ft) Mich. 1708, cited 1 P. Wras. 318. HORN V. BxUvER. 1475 been held in Mace v. Cadell («). Still, however, the court will not go further than the latter case ; nor say that the statute shall attach in every instance where a trader is in possession of another man's goods at the time of his bankruptcy, if he were not held out to the world as the ostensible owner by the real proprietor, as in that case the bankrupt had been ; the true owner having there held out the bankrupt as her husband, and having obtained a licence for the public-house where they lived in his name. But taking the preamble not to control the operation of the enacting clause, still, in order to bring the case within that clause, the bankrupts must not onl}^ have such goods in their possession, order, and disposition at the time, hi/ the consent and p>ermissio7i of the true owner, according to the first part of the clause, but they must also have taken upon them the sale, alteration, and disposition of them, as owners, by the same consent and permission ; for these words run through both parts of the sentence : and it must appear either by the terms of the contract between the bankrupts and the true owner, or by evidence dehors of the nature of the property, or of the place or circumstances of the possession, and that the owner trusted the bankrupts with the poiver of selling, altering or disposing of the goods as oivners ; or that having the posses- sion, order, and disposition of the goods under such circum- stances as might induce the world to believe that they had such a power, the bankrupts did aetuallg sell, alter or dispose of them as otvners. In Walker and others, assignees of Bean v. Burnell (J), household goods and furniture, which were left by the assignees under the first commission so long as seven years in the bankrupt's possession ; yet having been so left for a special bond fide purpose, in order to assist the bankrupt in settling his affairs, and getting in his effects for the creditors; and the bankrupt not having the disposition of the goods so as to sell them ; were decided not to be within the statute of James. It was admitted even in 3Iace v. Cadell, that every instance of a possession of goods of another b}^ a bankrupt at the time of his bankruptcy was not within the statute ; but it was said that the cases of factors, executors, trustees, &c. were excepted cases : but the words of the 11th clause, if not restrained by the pre- amble, are general, and would include those which are called (a) Cowp. 232. (6) Dougl. 317. 147C H()i:n v, hakkk. exceptetl ciises, us wtll us iiu\ ullicis : llu*y iii<- mn, iinnion-, exut'ptt'd 1)V tliL' stilt iitf itst'lt" in tfinis, l)Ut only hy conhtruc- tittii lis not fulling' within the reason of it: the statute only at- taehiiif on the possession of j(ootls hy the Umkrupt when siieh possession is fraudulent ; where the true owner has the kmk- rupt with tile power of selling;, altering or disposing of tlio goods, as owner. And thou<^h, perhaps, the l)are faet of tho possession of chattels may Ix* prumi facie evidenee that thu possessor is the true owner, and has the power of sale, &c., tsA owner, yet the eontrary may Ik; sliown, and that the |M)sse.«wion of the Itankrupt was /muii Jilf, an- pearani'e to the world that the possessor has the .sale, altenition, or disposition of the gooseI:N v. liAKKl:. pose that a dyer nii<,'lii Ik- in pussusHion of a i»lant wiiln.ul he'iug the iv|>utiMl owium. And lu- also supimited the decismu in Collins v. Forhen (f the true owntr, homt fih; for a special purpose, beyond whi«h lie had not the rii^dit «>f alteration or disposition, it is not within the statute. The ejise of D(trhi/ v. Smith (e) was considered as an alwolute sale of the j^'oods hy the trustees of the wife and children to the hushaml, whom they suflered to continue in possession till the day iK'foie his haukruptcy with- out his paying' the stipulated instalments. It woidd have l)eon useless to have diseusstMl any of these cast's if the hare act «)f possession of the goods of another hy a Iw-ukrupt at the time of his bankruptcy were suflicient to bring a ease within the statute. Now here, by the ti-rms (»f the d«'ed, the bankrupts had no power over the vats, stills, and utensils in their pos^sej*- sion, except the use and repair of them as lessees: they had not the general, but only a special onlrr ami ilinpimition of them by the consent of the true owner: and they had no power of $itle, alteration, or di^pogition of them at all a» owners. But if the consent or permission of the true owner mentioned in the first part of the 11th rhiuse Iw not carried to the '"*mand must Ik? on the land, and not to the repossession of j;o(hIs for non-payment of an annuity for whi( h tiiey were a security, in which case the demand may l)e made anywhere. However, if a previotw demand of tlu; [jrecise sum wi-re necessary, tl»e diflicully «>f aseertaininj^ it, oecasioned hy the act of the annuitant hei-self, would he no reason why as Utween these parties she sliould be excused for not haviii;^ made it. If siie were entitle<| to possession under the deed in the event whit h hap|H'ned, and by taking the necessary measures, whatever they nught U?, would have been in possessi«)n, tlu' suljsecjuent |M>sses,sion of the bankrupt Wivs against the stipulations of tlie deed: and tiu8 brings the ease within Ditrhj/ v. Smith () that it was within the statute. It is the reputeil ou)itr.s/iip of the goods in the possession of the bankrupt which brings the case within the express words of the statute, the avowed object of which was to defeat those secret conveyances, by which personal ])roperty is secured to particular creditors, while to the eye of the world it is left in the possession, order, and disposition of the bankrupt, who by (a) 8 Term Kep. 82. (6) 1 Atk. 165. ■ HORN V. BAKER. 1481 means of it obtains a false credit. It is now fully settled since the case of Mace v. Caclell (^ci) that the preamble does not con- trol the enacting words of the 11th clause of the act. But it is argued, that the bankrupt must not only have the |j»os- sessioti, order, and disposition of the goods, with the consent of the true owner, but also the power of sale, alteration, and disposition, by the same consent. Certainly the bankrupt need not have actually sold and delivered ; for then the question would never arise, as was observed by Eyre, C. J., in Lingliam v. Biyijs (li) ; for the act only gives the assignees of the bankrupt power to appropriate goods in his possession. But the same learned Judge says, that "if a man be reputed owner of the goods, and appear to have the 07'der and disposition of them, he must be understood to have taken upon himself the scde, alteration, and disposition within the meaning of the statute." Neither could it be the mean- ing of the statute that the bankrupt should be the true owner of the goods, because, as Lord Hardwicke said, in Rijidl V. Rolle (c), the Legislature has explained its sense by putting the words true owner in opposition. to the reputed owner. Nor could it mean that the bankrupt should have the power of sale, ^c.,hy i\\e, consent of tlie true oivner : for then his selling or otherwise disposing of them would be no breach of the private contract between them. In every case where any question can arise, the reputed ownership of the bankrupt must be limited, as between him and the true owner, by some secret stipulation abridging the general right of disposition : and it was the very object of the act to prevent the operation of such secret en- gagements, which enabled traders to obtain a false credit by means of the apparent or reputed ownership which their visible possession of the goods of others gave them. It is no question, therefore, in these cases what is the real contract in the deed ; for that could not be known at the time to third persons who were dealing with the trader. The only question which can be made, consistently with the words and objects of the statute, is, whether the trader in possession at the time of his bankruptcy had the apparent order and disposition of the goods ? If to the eye of the world he appeared to be the owner of them, or was, as the statute calls him, the reputed owner, the case is within the statute : though in truth there was a secret conveyance or (a) Cowp. 232. (6) 1 Bos. & Pull. 87. (c) 1 Atk. 183. 1482 lUniS V. l;Alvl.l:. agreement by whith the property wus made over or Hceurcil to aiiotlier. This, iis was siiid hy linller, J., in Wulhr v. Jiur- nell {(i), uwisl iiUviiys \k' more a <[Ufstit»n of fart tliaii of hiw. When the fact of tlit- n-pnted ownei-ship is chsirly iMcertaiiieil, the hiw follows of course. Kvery nuin, says Ayrf, C. .1., in Liu;//uim V. Iii:/,'/« (/')' ^^'"* '■*^" ^' ■"**''"' ^"* ***' ^''^* rfjuittU oirner^ has incidentally the onlrr ami ilispositittn of ^'ooeing imposed U|M)n hy sussej»- sion, order, and dispt»siiion of the goods hy consent «>f the owner: and the heing in possession under suih circumstances, from whence the onUr and disposition of the gcMuls may be reasonably inferred, makes the reputed ownership. Now here every circumstance of notoriety tended to show that the Lmk- rupts were the true owners of the good.s, whether eonsiclering the possession ln'fore the imlenture of the 80th of March, the time and cinumstances under which the bankrupts took jiosse.s- sion under that dvvd, the avowed purpose for whiih it was made, or the cniitiMUcd possession and the ajiparent ownei'ship of the baidcrupts after the transfer in the sanu* manner as l>e- fore, Williani llnrn. one of the banki U|>ts, ha- peared to continue in possession of the premises, and of tlu' vats, stills, and utensils for carrying on the business, together Aviili Rd. Jackson, and to exercise the same acts of ownership as he had done before when in partnership with John Horn. But in fact John Horn had secretly conveyed this property to (a) Doujrl. Ml, and rnde this noticed by J-^ijre. C. J., in iJnrihnvx v. Biggs, 1 Bos. & Pull. 89. (6) 1 Bos. & Pull. 87. HOKX V. BAKER. 1483 Wm. Horn and Rd. Jackson, saddled with the annuity to him- self and his wife, which was likely to ruin the trade more rap- idly than before. But there was no notice of the change to other persons dealing with the partnership ; the deed was kept secret from them ; the object of all the parties being, that the trade might be carried on by the existing partners with the same ap- parent capital as the old firm, and that the credit of the new partnership might not be lessened by the general knowledge of the fact, that the goods in question were not their property. The secrecy of the transfer was as much foi- the benefit of John Horn as of the continuing partners ; for if their credit were shaken, they would be less able to pay the stipulated annuity. In fact, the bankrupts did gain a false credit b}- the possession of the goods in (question. There is no fact of notoriety to resist the conclusion that these were the goods of the bankrupts ; and the only fact relied on to show that the property was not theirs, is the secret indenture of the 20th of March, 1801, by which a prior claim on the goods was secured to John Horn ; but such a secret transfer is of the very species of fraud which the stat- ute meant to guard against. The case of Bryson v. Wylie (a) cannot be distinguished from this in principle. The bankrupt there had the possession of the dyer's plant, but he had not paid for it : he therefore agreed to assign it to the creditor, and to take it again on lease from him. There was no mala fides or fraud in the transaction between those two ; and if the interests of no other person had been concerned, it was only just and reasonable that the creditor should have had his secarity ; yet that was avoided by the operation of the statute, as fraudulent in law against the creditors in general. The case of Darby v. Smith (J) is strong to the same point. The case of Walker v. Burnell (c) turned as it seems on the notoriety of the goods which were left in the bankrupt's possession continuing the property of the assignees under the first commission : but that is a very doubtful case. The honesty of the intent of the true owner cannot be sufficient to protect the goods ; for according to the report of Copeman v. Gallant in 7 Vin. Abr. 89, Lord Cowper said, " If possession and disposition be given to a person who becomes bankrupt ^/io?^//A no intent of fraud appear; yet, if it give a false credit, there is the same inconvenience as if (a) Hil. 24 Geo. 3 B. R. cited in 1 (h) 8 Term Rep. 82. Bos. & Pull. 83. (c) Dougl. 317. 1484 li<>i:\ v. i!AKi:i:. fniiid were iutendetl, ^v. ; aad it lu.iLleJh not whutliei il were by hand, or only by Ufgluct, or out of u hmnour." And lhu» was adniitteil in Burknnll v. Itoifntun (a) in the ciuse of a Uink- riiptcy. In tbt' course" »»1 ilic .iiL;'iiiiiiii, tiiu.t,, .1., .i.-«ki'd wnutner lin i< was any usat^c in tlu^ trade for distillers to hire or lea.se vats, stills, »&e., with tluir premises? To wliirli it was answered by the defenilanl's counsel that no such usa^'e appeared; and un- less it were expressly found by the ease, the presumption woidtl be, that thinj^ necessary to carry on the traile were provided by the traders themselves; and that tlie possession of su«h thinj^s, which were of ^Mcat value, must naturally jjive nmre credit to the distillers than the mt?re view of the spirits cUh- tilleeinp//«0(/« nnl rhatttlt. And upon askini; Tfie Attornt'if-Genrrul whether he meant to insist upon the rii,dit of the assij^nees to such of tiie articles a8 were atlixed to the freehold and referrini^ him to liifall v. /^>//t^ and l)einj^ answered in the nei,Mlive, his Lordship said, that if the rest of the court ai^reed with him in opinion as to the rij^dit of the assignees to such of the articles as properly fell under the denomination of goods and chattels, it would l)e better to leave it to a refi ii-e to ascertain out of court the difference of the valu'^ for which the verdict should Ix; entered. Lord Ellenboroui/h, C. J., then proceeded. — The true object of the statute 21 Jae. 1, c. 19, ss. 10 and 11, Wius to make the reputed ownership of goods and chattels in the possession of bankrupts, at the time of their bankruptcy, the real ownership of such goods and chattels, and to subject them to all the debts of the bankrupt; considering that such repute to casus where the iKinknipt was the ori<,Miial owner of tin* I»««>|>- eity coiiveyeil liy him to the |>aitieuhir «Te(lilor ; but the eiia«*t- iuson at a rent: under which agreement Simpson continued in pos.session of it up to the time of his bankruptcy. Mr. Justice liiiUer there distin[(uislied the case from that of a banker or faet<»r who by the course of tratlc nuist have the gt>ods of other people in bin possession ; and thcrcfori' it ilid not hold out a false er«'dit to the world, lie meant therefore to say, that where the pos.ses- sion did hohl out a false credit to the w(uld, there the statute would follow it, and attach upon the goods. And the eases of Mucr. V. CiuhlL and Lini/hnm v. Bii/i/x, are authorities to the same [)urpose. The princii)le to Ik- deduced from all <»f tiieni is, that where the n-putcd ownei*ship of tlie goods in the trailer is permitted to be held out to the world, it shall, with respt-ct to the world, be considered as the real owiwrship. I dt) not enter into the ([uestion whether the bankrupt's possession were consistent with the deed: becausi- that would only apply to the time after which the plaintitY might have re-entered for non- payment of the annuity. Her not doing so might, perhaps, l)e argued as more distinctly showing her intention to exhibit the ap[)arent ownership of the l)ankruj)ts to the world: but I lay no stress on it: for, in my view of the ease, however consistent their possession might have been with tiie deed, it would only have shown that the deed itself was the fraud which the statute meant to guard against. The principle is. that in all ca.ses where, by the consent and permission of the true owner of HORN V. BAKER. 148T goods, a trader in possession has the apparent ownership, and incidental to that the order and dis])Osition of them ; and no other circumstance appears to control such apparent ownership, and show that the trader was not the real owner ; the true owner permitting the trader to exhibit this appearance does it at his peril. Grrose, J. — The case of Mace v. Cadell has put a construc- tion upon the statute, which has ever since settled that where the real owner of goods suffers a trader to have the reputed ownership, so as to have the apparent order and disposition of them, and the trader becomes bankrupt, the statute gives the property to the assignees for the benefit of the creditors. I only doubted whether the stills which were fixed to the free- hold would pass under this statute ; but it is now agreed that they do not. But with respect to the other articles, it is im- possible to distinguish this case in principle from the current of those which have been decided, which have gone upon the ground, that where the real owner enables a trader to acquire credit by having possession, and apparent order and disposition of goods with respect to the world, he does in effect permit such trader to take upon himself, and he has with respect to the world, the apparent sale, alteration, and disposition of the goods, wi'thin the meaning of the statute. Laivrence, J. — The question in these cases, as was observed by Mr. Justice Buller in Walker v. Bm-nell, is rather a question of fact than of law. And therefore it seems more proper in such cases to leave it to the jury to say whether, under the cir- cumstances, the bankrupt had the reputed ownership of the goods at the time ; for if the true owner suffer a trader to have the reputed ownership of goods left in his possession, and be- come bankrupt, the statute says that the property shall go to his assignees. In this case, therefore, we are rather called upon to consider, as upon a motion for a new trial, what conclusion a jury should have drawn from this evidence, than to consider a dry question of law. The facts stated are, that one partner, upon retiring from business, leases to others who continue it (one of whom had been in partnership with him before), cer- tain stills, vats, and utensils proper for carrying on the busi- ness, and which had been used by the former partners. The new partners become, in consequence, to the world the ap- parent owners of the property. It may happen, from the coursa 1488 H(»i:n v. iiaki;i:. of certain trades, that masses of mai-hinery are let out by the owners to the nu'chiinics imij^m^'imI in tht-ni, and the notoriety of such a usage in the trade nuiy rebut the [)resuin[»lion of owner- ship which woukl otherwise arise from the jHissession ; l>nl in general the possession of utensils of trade must Ik- taken to Ije by the owners of them. And 1 agree, tliat nothing turns upon the question whether or not the possession of the bankrupt-s in this ease were consistent with the deed under wiiich they claimed from John Horn: for the very object of the statute was to prevent the true owner from enabling another to hold himself out to the world as sucli, and thereby gjiin a false credit ; and this being a secret deed, the world could know nothing of its contents. It was pressed in the course of the lirst argument, that the reputed ownership mentioned in the statute nitisl l)e understood where there was a power «>f sale confided to the bankrupt by the true owner ; and reference was made to the words of Lord Manxfuhl in Mace v. Cadfll, that the statute di Iw used hy the leii.int dnrint; his term, the property renialnin^ In the landlonl. w•»( v. Ihiktr, antl since that case, as far as my experi- ence goes, I never knew that any distinction was made between such tlxtnres as would be removable between lamllord and tenant, and such as would not." In linijdU V. M' Mirhml, 1 C. .M. & H. 177, the .same iloetrlne was again atlinned and acted upon by the Court of Kxche<|ner. In that <-ase, a ten- ant for years, who had taken the fixtures at a valuation from his landlord, mortgaged the term and fixtures, and afterwanls became bankrupt; they were held not to pass to his assignees. •• The real nature of the tenant's interest," said Parke, B., " In this case Is, that he hatl a right to remove the fixtures during the term : that interest has l)een held sufilcient to enable the sheritt'to seize them under a. fi. fn.; but IIi>ru v. Baker decides that they arc not ' goods and chattels' within the meaning of the clause as to the order and disposition of the bankrupt. The nason uf thin is, that fith rei/anl to real propcrtij the jwssession is considered as nothing, hut the title nnhj is Imtked to." In Hallen v. liunder, 1 C. M. & R. 2(56, cited in the beginning of the last note, the court thought that fixtures could not properly be denominated f/onds in an indebitatus count, though their value might be recovered in a count for fixtures bargained and sold, [and see Lee v. (Jaskell, 1 Q. B. D. 700]. .Vnd In Minshnll v. Llo>id, 2 M. & W. 4.^0, Parke, B., said. " I assent to the doctrine laid down in Coombrs v. Beamnont. and Boi/dell v. .y'Mirhail. that sucli fix- tures are not goods aud chattels withiu the muauiug of the bankrupt law, HORN V. BAKEK. 1491 though they are goods and chattels when made such by the tenant's severance, or for the benefit of execution creditors." In Trappes v. Barter, 3 Tyrwh. 603, 2 C. & M. 183 (which is said by Parke, B., in Minshall v. Lloyd, 2 M. & W. -iSO, to have been doubted), trading fix- tures were held to pass to the assignees of certain bankrupts, as part of their propertj', and the assignees having severed and removed tliein, it was held that a mortgagee of the premises (the mortgage deed having been de- cided by the court not to convey these fixtures) could not maintain case against them for injury to his reversion. This decision, it will be seen, is not at all at variance with Horn v. Baker. Undoubtedly if the fixtures did not pass by the mortgage deed, the assignees [or, now the trustee] would take them ; and whether as personal estate or not seems immaterial. See the note at the end of the report of Trappes v. Uarter, 2 C. & M. 183; [the obser- vations on this case in the judgment in Walmsley v. Milne, 7 C. B. N. S. 133] ; Pirn V. Grazebrook, 3 M. & G. 863; and Thompson v. Pettitt, 10 Q. B. 101. It is conceived that a personal chattel fixed to the freehold in order to the more convenient use of the chattel as such, as was the case with the machine in Hellawell v. Eastioood, 6 Exch. 295, M'ould not be within the above-mentioned exception of fixtures from " goods " in the reputed ownership section of the Bankrupt Act. [In Ex parte Tweedy, 5 Ch. D. 559, a liquidating debtor Avho was assignee of a lease deposited with certain ])ankers by way of equitable mortgage the instrument whereby the lease had been assigned to him, which also contained an assignment by distinct words of certain machinery and trade fixtures for a separate consideration. The mortgagees had suflered the bankrupt to remain in possession of the fixtures. The point actually decided was, that without a memorandum duly registered as a bill of sale, the deposit was invalid against the trustee qua the fixtures; but Bacon, C. J., expressed an opinion that had the objection based upon the Bills of Sale Act failed, the fixtures and machinery would have passed to the trustee as being in the order and disposition of the debtor, with the consent of the true owner. Where a portable steam-engine was mortgaged by the owner, but left by the mortgagee in the possession of the mortgagor, who lent it on hire to a third person, and became bankrupt, it was held that the engine passed to the mortgagor's assignees, under the reputed ownership clause of the 12 & 13 Vict. c. 106, although the chattel was not at the time of the bankruptcy in the actual possession of the bankrupt, but was by his permission in the actual possession of the person to whom he had lent it. Hornsby v. Miller, I E. & E. 192; see also Fresliney v. Carrick, 1 H. & N. 653. The question whether goods are in the order and disposition of a bankrupt by the consent of the true owner is a question of fact, not of law : Acraman V. Bates, 2 E. & E. 456; Ex parte Emerson, 41 L. J. Bey. 20; and is to be determined by taking all the circumstances into consideration, such, for instance, as the custom of a particular trade; but the knowledge or igno- rance of an individual creditor, as to the ownership of goods, is not material : Ex parte Watkins, re Couston, L. K. 8 Ch. 520; Ex parte Vaux, L. E. 9 Ch. 602; see also Ex parte Lovering, L. R. 9 Ch. 621. But the custom must be such that the ordinary creditors of a debtor must be pi-esumed to have known it: Ex parte Powell, 1 Ch. D. 501, C. A. As to what evidence of custom is sufficient, see ibid. ; Ex parte Hattersley, 8 Ch. D. 601. As to the custom of hiring furniture by hotel keepers and others, see Craiocour v. Salter, 18 Ch. D. 30, 51 L. J. Ch. 495 ; Ex parte Brooks, re Fowler, 23 Ch. D, 261 ; Ex parte 1492 HOllN V. llAlvl.K. Turquand, re Parker, 14 Q. B. D. Oao, 54 L. J. Q. B. 242. Wlu-ro the true owners liavc done all in their powiT to obtain posaes!*ion of their property, the presumption of their consent is therehy rebutted : A'r jKirt" X. H'. Bank. L. 11. 15 Eq. Ot); Kx parte Ward, L. K. 8 C'h. 144; and see AV /»art«; Montayue, 1 Ch. D. .">54, C. A.; Ex parte I'hillips, re EsUck, 4 I'h. 1>. 4'Jt;.] The case of Ilnni v. linker is a iiscfnl one on account <»f tin- llyht thrown by the discussion in it on the construction of the reputi-d owiit-r^hlp clausi- In tlie Bankrupt .Vet. At the time of the ilecisioii in tin- prlm-ipal cast-, that suljject was K'>verned by 21 .lac. 1, c. I'J, ss. 10 and 11. which wrre at first so little acted upon, that no case occurretl In whirh their opi-ration wa.H «lls- cussed for upwarils of a century. The former of these two sections Is a more recital made liy a misprint into a separate section, and yave rl.ne to sonic doubt, in consei|Ucnce of its Ijcini; narrower than the enactment, so that it ai)parently a])plied only to property which had once i*een the bank- rupt's; and it wjus for some time thou<;ht that such property only was included in the eleventh section, an itlea whicli the analogy to the statutes rcspectiui; fraudulent conveyances appeared to countenance. These doubts, however, were removed l)y Mace v. Cadill, ("owp. 2:i2 ; and the ubnoxloUM recital, winch was onntted in G Geo. 4, c. I'J. s. 72, and succeedlnc statutes, [is also omitted in 4(J & 47 Vict. c. 52 (The Bankruptcy Act. 1KH;{), h. 44, by which the subject is now ;;overnetl. That section like the corresponding; .sec- tions of former enactnu-nts. is with some dltferences to be noted hereafter, substantially identical in form with the enactment <>f .lames, the decisions upon which are consc<|Uently f«u- the most part autiiorltles on the construc- tion of tlie present law. Clinses in mtion, however, other than trade debts an* expressly excludetl from the operation of the present as from the late enactment, '.Vl &. '.V.\ Vict. c. 71, s. 15. .^Iiares in a company were lield not to be rhnsis in action within this exception: Ex parte Union Hank of Manchester, re Jackson, L. U. 12 Kq. 354; a decision which was followed by the Court of Appeal, Fry, L. J., dis- sentinjr, in Colonial Bank v. Whinneij, decided under the Act of 1H,S,3. 30 Ch. I). 2til ; 55 L. .T. Ch. 585. On appeal, however, tlie House of Lords reversed this decision, and held that such shares were " thinirs in action," 11 App. Ca. 42fi. See al.so Ex parte Harry, L. K. 17 Eq. 113. A debenture of a company is a chose in action, Ex parte liensbenj, 4 Ch. I). 085; so is a |»ollcy of insurance. Ex parte Ihhetson, 8 Ch. 1). 519. As to what were debts due witliin the section, see Ex parte Kemp, re Eastnedi/c, L. U. It Ch. 383. Moreover, now as under the late Act (ss. 15, 17), property In the reputed ownership of the bankrupt vests in the trustee upon his appointment (see s. 54), without an order of the Court, which was necessary before the statute of 1S69], see Ileslop v. Baker, 6 Exch. 740. [The property dealt with by the reputed ownership clause of the present enactment is thus described: — "All goods" (which by s. 108 includes "all chattels personal") " being at the commcucenient of the bankruptcy in the possession, order, or disposition of the bankrupt, in his trade or husiness, by the consent and permission of the true owner under such circumstancts that he is the reputed OAvner thereof ; provided that things in action other than debts due or groicing due to the bankrupt in the course of his trade or busi- ness, shall not be deemed goods Avithiu the meaning of this section " The words in italics are new. The words " in his trade or business," which are substituted for the words " being a trader," of the late act, limit the operation of the clause, see Ez HORN V. BAKER. 1493 parte Lovering, 24 Ch. D. 31; 52 L. J. Ch. 951; Ex parte Nottingham, dx., Bank, re Jenkinson, 15 Q. B. D. 441 ; 54 L. J. Q. B. 601 ; Colonial Bank v. Whinney, supra, though the introduction of tlie words " or business " extends it to a class of persons who not being traders were not covered by the former enactment; see as to what is a trade or business, In re Wallis, ex parte Sully, 14 Q. B. D. 950. The words of the former section " of which he lias taken upon himself tlie sale or disposition as owner " are omitted. Goods left with tlie bankrupt on sale or return, Avere held not to come under the former clause until he had exercised his option of keeping them: Ex parte Wingfield, in re Florence, 10 Ch. D. 591. So of goods consigned by a manufacturer to an agent for sale at an advance to be fixed by the agent and retained hy him, he guaranteeing the accounts, were held not to be in the reputed ownership of the agent : Ex parte Bright, re Smith, 10 Ch. D. 566.] Although fixtures, as we have seen, [were] not within the meaning of the reputed ownership clause, all personal chattels [fell] within it. Ships, Stephens v. Sole, 1 Ves. 352; Atkinson v. Maling, 2 T. li. 462; Hay v. Fair- bairn, 2 B. & A. 193; Monkhouse v. Hay, 2 B. & B. 120; unless, in the case of transfers by way of mortgage, such transfers [had] been registered before an act of bankruptcy, 17 & 18 Vict. c. 104, ss. 66-75 ; [Choses in action, which are now expressly excepted;] Furniture, Lingham v. Biggs, 1 B. & P. 82 ; Utensils of trade, Lingard v. Messiter, 1 B. & C. 308 (except, perhaps, when, as hinted in the principal case, there [was] a usage to demise them to the trader), [were] all of them, if in the possession, ordering, or disposition of the bankrupt, as reputed owner, with the consent of the true owner, at the time of his bankruptcy, [held to] pass to his assignees, by virtue of the 12 & 13 '*ict. c. 106, s. 125. [A dormant partner's share of partnership goods was held to be within that section, Reynolds v. Boicley, L. R. 2 Q. B. 41, 474; but a share in a part- nership being a chose in action would be excluded from the operation of the present Bankruptcy Act : Ex parte Fletcher, 8 Ch. D. 218.] In Gibson v. Overhury, 7 M. & W. 555, a distinction was drawn between the actual paper, or other material on which a contract is written, and the benefit of the contract itself, and in that case a pledge was holden sufficient to pass the paper on which a policy of insurance was written, although, for want of notice to the office, the right to the money insured remained in the assignees of the bankrupt. See also Belcher v. Campbell, 8 Q. B. 1 ; [Green v. Ingham, L. R. 2 C. P. 525, where Gibson v. Overbury was distinguished] and as to whether goods mortgaged by a trader before his bankruptcy, but in the hands of the sheriff under an execution against the bankrupt, can be considered to be in his order and disposition with the consent of the true owner, see Fletcher v. Manning, 12 M. & W. 571. [The doctrine of reputed ownership applies only to goods in the sole pos- session of the bankrupt as sole reputed owner, Ex parte Barman, L. R. 8 Ch. 51 ; Ex parte Fletcher, 3 Ch. D. 518 ; but goods may be in the order and dis- position of one partner " in his trade or business," although his business is that of the partnership, and the goods are assets of the firm, Colonial Bank V. Whinney, 30 Ch. D. 261; 55 L. J. Ch. 585; where shares bought for part- nership purposes and with partnership funds were held to be in the order and disposition of the partner in whose name they were registered. The judg- ment of the C. A. on this point does not appear to be afiected by the subse- l-i'.t4 Ilnl;N v. I'.AKKi:. qiu'iit reversal of their (U'clsloii upon otluT t;r<>iin(l.s by the IIouho of I^rtU, 11 .\\>l>. e Hills of Sale Act, 1H7H (41 i VJ Vict. c. :Jl), also Includes tlxtures, hut in u limited sense, as detlned by the act, under the desijrnation pcrHonnl eliat- tels, and contains provisions dealln;; with *lil11<-tdties which arosr in reference to this (piestlon under tin- forim-r enactment. (See the notes to KlfeM v. Mcvpi', ante.) It also, by s. 'JO, excluded from the operation of the reptittMl ownership clauses of till- Hankruptcy Act, jjocmIs comprised in a bill of sole, tluly reKi.n- tered in compliance with Its provisions, thereby altering the law as laid down in Iliihjir V. Sfi'ii", 2 E. & E. 472, ami otln-r cases decided under the fitnm-r statute, but tliat section has been repealed as to all bills of sale eXreutetl after the Isl Novemlier. 1SH2, by the Dills of Sale Act, 1«M2, and the law In thus restored to its former footlni;; see A"r parlf hunl, re ('hupiiU, 23 Cli. 1). 40'.», .-,2 L. J. Ch. M02; Stri/l v. Ihmiftl, 24 fh I) 2l0. .Vl L, .1 Ch. 341. As to the ditlerence between reputetl ownership and •■ apparent po.H.He.sslon " under the Bills of Sale Acts, see Ex parte Satiunal, Jkc, Asturance Co., rt Frnncia, 10 Ch. D. 40a.] WAIN V. WARLTERS. EASTEE. — U GEO. 3. [reported 5 EAST, 10] (a). No person can., hy the Statute of Frauds, he charged upon any promise to pay the debt of another, unless the agreement upon tvhich the action is brought, or some note or memorandum thereof he in writing; hy which word agreement must he understood the consideration for the promise, as ivell as the promise itself. And therefore ivhere one promised in writing to pay the deht of a third person, without stating on what consideration ; it ivas holden that parol evidence of the consideration ivas inadmissihle hy the Statute of Frauds ; and consequently, such p>romise appearing to be without consideration upon the face of the written engagement, it was nudum pactum, and gave no cause of action. The plaintiffs declared that at the time of making the promise after mentioned they were the indorsees and holders of a bill of exchange, dated the 14th of February, 1803, drawn by one W. Gore upon and accepted by one J. Hall, whereby Gore requested Hall, seventy daj^s after date, to pay to his. Gore's order, 56/, IGs. Qd.\ which bill of exchange Gore had before then indorsed to the plaintiffs, and which sum in the bill men- tioned was at the time of making the promise by the defendant due and unpaid. And thereupon the plaintiffs, before and at the time of making the said promise by the defendant, had (o) [Now by s. 3 of the Mercantile guarantee need not appear upon the Law Amendment Act, 1856 (19 & 20 face of the written engagement. See Vict. c. 97), the consideration of a jwst in nota.~\ 1495 14'J0 WAIS- v. WAICLTKUS. retained one A. as their attorney to sue (iore and Hall resjK'c- tively for the recovery «>f the said sum so due, A:e., \vl»ereof tlio defen(hint, at the time of his promise, &c., liad notieu. And thereupon, on the iiOth of April, 180:^, at, &c., in t'oni$iileration of the j>n'>iiisis and that the jttttinfiff'H, at the instance of the (U'fendant, iroii/t/ f'i>rf>ear to j)n)ceed for tlie recovery of the said ;")»;/. lii.v. •;y half-past four o'clock «)n that day, T)!)/. iind the ejpenxex which had then heen inrurml hy iIhmu <'/i the xdiil hill. riie plaintifl's then averrefcndant's promis«>, stay all pro- ceedings for the recovery of the said deht, and have iiitherto forfinrne to proceed for the recovery thereof; and that the expenses hy them incurred on the said hill at the time of making the [)romise hy the /. and the said ex})enses incurred, *.^c. There was another special count, charging that the reiusonahle expenses incurred on the hill were so iiiiich. which the defendant had refuscnrt inn at common hiw: so it is ni>t made good l»y the statute without a consideration in hiw for entering into suj-h an agieement; wliieli ui/rii-tiimt, i.e., the whide agreement or soine memorandum or note of tlie whole, specifying the cuntrucling parties, the consideration, and tlie promise, must lie made in writing. The eonsideiation is an essential part i»f every oxeeu- tory agreement; and this was altogether executory, on the part at least of the defendant. If the agn-ement had U'en declared on as in writing, the mere production of the note c»>uld not have })i()ved the consideration of ft»rlM*arance laid in the declaration; and such consideration could not havi- U-en supplied hy |«irol evidence. In Prcxton v. J/» /•««•(/ » («i ), where the plaintifl had agreed in writing with the defendant's testator to let him certain premises at a certain rent; par«)l evidence tendere^, ihv vcrhal declaration of an auctiom-er, at the time of a sale, that there was a charge on the estate, was dci'mi'd inaor<>io/h, ('. .1. There it was dri'innl .suHieient proof t)f sueh a<,'reement so as to change the party si^Miin^' it. lie wius est(»p[)ed hy his signature fn»m proteeting himsidf under llic statute. Hut there the consideration appeared in writing.) They tlnii ol»s( rved, that thiuigh the ohjeetion uwist have t)ften before oecurred in actions of this sort, wiiiih were in eoinmon priu;tie»', the word tif/ni-nunf haf, I am always inclined to give to them their natural ordinary signification. The ilause in (piestion in the Statute ot Frauils has the word ii), one of the great- est judges who ever sat in Westminster Hall, who wiis as com- (a) Seton v. Slade, 7 Ves. jnn. 2t','>. liaps tli.iii by Lord Halp's havinir left (6) Lord, Mans^tield expressed a some loose notes heliind him, wliirh doubt of this in Wi/ndhain v. Chet- were afterwards unskilfully digested, icynd, 1 Burr. ilS, any otherwise per- 1 lilac. D'J. \yAlN v. WAKLTEES. 1501 petent to express as he was able to conceive the provisions best calculated for carrying into effect the purposes of that law. The person to be charged for the debt of another is to be charged, in the form of the proceeding against him, upon his special promise ; but without a legal consideration to sustain it, that promise would be nudum pactum as to him. The statute never meant to enforce any promise which was before invalid, merely because it was put in writing. The obligatoiy part is indeed the promise, which will account for the word promise being used in the first part of the clause, but still in order to charge the part}- making it the statute proceeds to require that tlie agreement^ by which must be understood the agreement in respect of tvhich the promise ivas made must be reduced into writ- ing. And indeed it seems necessary for effectuating the object of the statute that the consideration should be set down in writing as well as the promise ; for otherwise the consideration might be illegal, or the promise might have been made upon a condition precedent, which the party charged may not after- wards be able to prove, the omission of which would materially vary the promise, by turning that into an absolute promise which was only a conditional one : and then it would rest altogether on the conscience of the witness to assign another consideration in the one case, or to ch'op the condition in the other, and thus to introduce the very frauds and perjuries which it was the object of the act to exclude, by requiring that the agreement should be reduced into writing, by which the consideration as well as the promise would be rendered certain. Tlie authorities referred to by Comyns, Plowd. 5 a. 6 a. 9, to which may be added Dyer, 38«j. b., all show that the word agreement is not satistied unless there be a consideration, which consideration forming part of the agreement ought therefore to have been shown; and the promise is not binding by the statute unless the consideration which forms part of the agreement be also stated in writing. Without this, we shall leave the witness whose memory or conscience is to be refreshed to supply a con- sideration more easy of proof, or more capable of sustaining the ])romise declared on. Finding therefore the word agreement in the statute, which appears to be the most apt and proper to express that which the policy of the law seems to require, and finding no case in which the proper meaning of it has been 1502 WAIN V. WAItLTElCS, relaxed, the best construction which we can make of the chmne is to give its proper and Iv^id nu'aninoth partirn are to l)c bound; and thin is re«|uired to Ijc in wrifini/. If it were oidy necessary to sh(»w what one of them wiis to do, it would be sutlicient to state tlie promise made by the defendant who w;is to be charged upon it. liut if we were to a04 WAIN v. WAKLTKKS. It will b«' rfcollccnil tliiit, lucnriliriy to tlif stutiit«', tin- a;;ri>fiiifiit. or Hoiiif iiM'iiinnuHluin or iiotf tlnTeof. Is to !»»• In wrltliii;. niijnfd Ay thr ^Htrlthfr pfmon therrunto t»j him lutrfulty nuthnritrd. On thest' \vt)rils It Ims sometlint's be»-n made question, what ran Ik* ileeimtl a siittlcicut sli^nutiirc to nu-t-t tlirse uonls. It Is <-U-ar that tlie Hlj;nntiin- neud not be placed in any particular part of the Instrument or memorandum See Saundersnn v. Jnck»nn. 2 H. & 1'. 2:»M ; Schnridtr v. Snrri*. 2 M. A S. 2f*mliui; wfu'ils in the 17th section. [In DurMl v. Kmns, 1 II. & C. 174. in Cam. S«acc. (reverslnj; the deelsloii in the court below, t; II. v<: X. •;«;o), tin- name of tin- person to l>e charKetl ^lh^• buyer) was written at the top of a note of tin- r who con- ducted the sale. The court was of opinion that there was evidence for tin- jury that the factor was the a^rent of both parties f«)r the purpose of dra\\ in;; up a record of the contract biudini; on them, and that If he was, the wrlttni; of the name of the buyer at the head of the memornndiim was a sultlclent HlRnature within the 17tli sect. ••Noakes" (the factor), snlil Mr. Justice Crompton, " drew out a note of the contract with the nameN of lM>th buyer and seller upon it, but It coutaluetl notldnt; which coulil onllnarlly Im- calUnl a signature, for the tlefentlant's (the buyer's) name was written at tlie liead of the document; and if this had bcrn the first casi- on the subject I ^hoidtl have doubtcil wht>ther the placing a name at the top of a docinuent could fairly be callrd a >ii.'n»ture, but that Is now past discussion, for tlie ca.ses have decided that it does not slt;ulfy where the name Is placecu- ment." See also Simmnnds v. Ilumhle, l.'l C. B. N. S. 2.'>H. It must, hi»wever, be so introduced as to govern or authenticate every material and tiperatlve part of the instrument. For a ciusf where the name of the party to Iw char;xcd was iiitrndu">;$. the following note, written by the defendant, was held sutllcicntly signed to satisfy the 17th .section of the statute : — "Lffdf, 19 October, lf<36. " Sold John Dodijunn (the defendant) 27 pockets Playated, 1836, Siumejr, at 103s. The hulk ti> ansirer the sample. " i pockets SelDie, lierklei/s, at OUa. Samples and invoice to be sent by Rock- ingham coach. Paipnent in /{'inkers at 2 months. •• Signed for Johnson Johnson <£ Co. (the plaintiffs). • D. }/»r!>^" "The Statute of Frauds," said Lord Abinfjcr, C. B., • refpiires that there should be a note or memorandum of the contract in writiiii; signed lnj the party to be charged. And the cases have decided that, altIioui;h the si>;iuiture be in the beijinnins; or middle of the instrument, it is as bindiuir as if at the foot of it, the ijui'titiun being ahcays open to the jury whether the party, not hav- ing .^ig}ied it regularly at the foot, meant to be bound by it as it then stood, or rchether he left it so unsigned because he refused to complete it." [In Sari v. Bourdillon, I C. B. N. S. 188, the sellers of goods entered a list WAIN V. WAELTERS. 1505 of the goods which had been purchased in an order book, on the fly-leaf at the beginning of which the names of the sellers were written; the buyer wrote his name and address in this book, at the foot of the entry which re- ferred to the goods. It was held, that under these circumstances there was a sufficient signature of the contract by the party to be charged, and that the names of the sellers appeared on it sufficiently to satisfy the Statute of Frauds.] But it would seem from the case of Hubert v. Treherne, 3 M. & G. 755, that, if it appear upon the face of the instrument itself that the parties contemplated a further signature in order to complete it, the insufficiency of the signature is matter of law ; thus an agreement containing the names of the parties, and concluding with the words "as witness our hands" without any other signature, was held not to be sufflcientlj"^ signed within the 4tli section of the statute, and Mr. Justice Maule observes — '• In cases of this description two questions may occur : first, whether the agreement contains that which the Statute of Frauds requires, which is a question of law; secondly, whether the agreement has been signed by the party to be charged therewith, or by a person authorized by such party so to do, which is a question of fact. 1 think this rule (to enter a nonsuit) should be made absolute on the first point." [Where alterations made in a written memorandum after it had been signed by the defendant were subsequently assented to by him, the contract was held binding, and parol evidence was admitted to show that he had assented to the alterations, Stewart v. Eddowes, L. R. 9 C V. 311; Sanderson v. Graves, L. R. 10 Ex. 234; Leather Cloth Co. v. Hieronimus, L. R. 10 Q. B. 140; Stevens v. Bowserj, 1 C. P. D. 220.] In Coles V. Trecothick, 9 Ves. 951, Lord Eldon said that " where a party prin- cipal, or person to be bound, signs as what he cannot be, a witness, he cannot be understood to sign otherwise than as principal." But in Gosbell v. Archer, 2 A. & E. 500, where the purchaser affixed his signature to an agreement for the sale of land, and underneath was written, " Witness, Joseph Nevnnan," in the usual place for a witness's signature, Joseph Newman being the clerk of the auctioneer employed to sell the premises, it was urged that Xewman must be taken to have signed as agent for the vendor, and it was attempted to show a ratification of his agency. But the court was of opinion, that he signed simply as a witness; and Lord Denman, C. J., said that " he thought the above remark of Lord Eldon open to much observation ; that no such decision had been actually made; and that, if it had, he should pause, unless he found it sanctioned by the vei'y highest authority, before he held that a party attesting was bound by the instrument." And see the judgment of Baron Tarke in Doe d. Spilshury v. Burdett, 9 A. & E. 971; S. C. in Dom. Proc. 6 M. & Gr. 386. See, however, the observations of Sir Edward Sugden upon the judgment of Lord Denman in this case, in which he vindicates the remarks made by Lord Eldon in Coles v. Trecothick, 1 Vend, and P., 14th edition, 143. [Although it has been settled ever since the case of Simon v. Metivier, 1 Bl. 599, that the auctioneer is the agent of both the buyer and seller, and that a memorandum made by him of the bargain is a sufficient compliance with the terms of the statute (see Beer v. London and Paris Hotel Co., L. R. 20 Eq. 412), the agency of the auctioneer exists only at the time of the sale, and he cannot, at a subsequent day, bind the parties by his signature : Mews v. Carr, 1 H. & N. 484. On a sale of land subject to conditions, the entry in 150G WAIN V. WAULTKKH. tin- auctioneer's book must refer to the rondltlonM of sale »o t» to Ulrntlfy them, Jiishton v. W'hntmorf. M Cli. D. 4«;7. A.i to n fil^imtun* by an aurtlou- eer's clerk, ^ee yvmv v. Corf, I.. K "J l^. B. 210. Miie of ih»? partle* to lhi» contract cannot siyn the name of the other, sti as to bhul him: .VAurmun v. IlrniuU, L. K. t> (^. I{. 7l'<». In Mnrphij v. JlneHf. I.. I{. 10 Kx. l-'tJ, the plalntltTf* traveller, on takiti^ an order from the tiefemlant. w rote down in his pn-^ence the ilefenilant'<« name, and the description and price of the i;. 77H. In Sinilh V. Wihstt-r, '.\ Ch. 1). 41), the following l.'tter sii;ned by the dc- fendiiiifs Holicitnr, and adtlressfd to the plalntltrs .solicitor, was h«dd not to be sutlliieiit to Itind the defendant: " W. (the defentlaut) has ln-en with us to-day and stated that In- had arranm-ui» v. Virtnrin (ir>triii,i f)<,>k, 'j i^. \\. D ;n4 ] Whether the initinls of the party to \h> chari;e«l are a suHlclent .sitrnatnre wltliin this statute seems clear, although not very clearly ilecUleil. It [was] stiiti'il iu .Mr. Uoscoe's work upon Kvidence, i:th edition, p. 'J<'>.'>, that a Mli;na- ture by initials is nnl sullleient within the meanlni; of the statute, ami Jamh V. Kirk. '1 M. & Rob. 'i'.M, and Sir,,-t v. Lr, , W M &. i', 4.M», [w«Te] cltisl as authorities fnr that position, whilst Sir Kdwanl Sujjden cites those two cases in support of the statement, that *• It Is sunh-lent. It seems. If the Ini- tials (»f the name are set down;" I Vend. & V., 14th e«lltlon, 144 : the cases themselves th and 'Jth seclli>ns «>f the stat- ute, that no ini|uiry on>.'ht to Ix- allowed as to whi-thi-r the party maklntr the niiirk could write: linkfr v. Dfitiiuj, s .\. a K. 1)4; antl If. as was In elfect decided in that case, a mark made by a person who can write be a sullleient siiinature, it appears stranije that It should rease to be so when the mark assumes the shape of the maker's Initials. [It has now been deelde r, resp., i:i C. R. X. S. 30; .'12 I>. J. C. P. 00; where a notice of objection to the name of a voter was held to be snflicient, althoii<;h the siiriiaun' of the objector (bein«r his usual mode of sisninjr) was wholly illeirihle. so that an ordinary person unaciiuainted with the sii^nature couUl not, by perusing it with ordinary skill and diligence, llud out what name it was intended to designate. In Bmnett v. Brumjit, L. K. 3 C. P. 28, a notice impi'cssed with a stamped /ac-.sj»jj7<» of the objector's sijna- ture was held to be sufficiently signed, but see In the gonrUof Jenkiim*, infra. The Wills Act, I Vict. c. 26, s. 9, requires that two witnesses " shall attest and shall subscribe the will in the presence of the testator." In the case of Harrison v. Elwin, 3 Q. B. 117, the name of one witness, who could not write, was traced by the other witness holdincc his hand, and £ruidin;r the pen. It was contended that, assnmini; a mark to be sufficient, this was not even the mark of the witness, but the court held that it was the sifiny a witness imiler the Wills Art that one of tlie witnesses sliould aclinowledixe his pn-x ionsly written >i'^iiatnre In the presence of the other, even altiionfjh he, at the same time, e<»rreel.s an error in it, and adds the date: J/imlnnir.ih v. Chnrltnn, H 11. of L. Ca-ses, liU). Two points of much general importance with reference t«) eoniractn w itidn tlie operation of tlie Statutt" of Frauds must !»«• here shortly mentioned. First, althi>ugh a document may be sunieieutly >i//i(»(/ within the meaning of the statute, the dcMMiment itself will not be snllleient, either Uiuler the 4lh or the 17th section, unl«'>s both the contracting parties appear on it. either by name or ity snllleient «lescription. A guarantee consetpieiitly which do«-s not contain the name of tlie person to whom it is intended to Ih- given, cannot be enforced, although duly signed by the party to be charged : Wilti'ttiig v. /.akr, 2 E. & E. 34'J; .SVi/*- v. I.amhnt. L. U. 1« E.|. 1 ; I'otOr v. Dufflrld. L. I{. IH K«| 4; see also Champion v. Phnnmer, 1 New U. 2.'»2 ; Cnmmina v. Srittt, L. It. 2o E(|. II; riwmfts v. linnrn, 1 Q. B. I). 714; llnnsili-r^w Millrr, 6 Ch. I). «4>*. ;{ .Vpp. Ca. 1 ILM ; C'lt/hnj v. Kiiiij, 5 Ch. I). r.C.O ; ]\illiiiiin> v. Jortliin, C Ch. 1). r»17, and Vnndi iihi-njfi v. Spnnner, L. U. 1 Exch. 'MC. Ill that case, Sptiinitr was the buyer and Vitinl>n>>i nih tin* seller, and the docnineut relied upon to take the ca.se out of the statute was in this form : " D. SjMjiiHcr ayrfts to huy tho trhole of thf lot» of marhlr purrha»rd Inj Mi . Vdndiithirijh notn Ujimj iit thi- I.ijun' Cohh ttt In. per foot (sign«'«l) /'. Spoourr." it was held that the document was not snllleient, as the seller's name, ag nrllrr, was not mentioned in it, but occurred only as part of the description of the gtjods : sed qiuvrc, and see Xrirell v. liddford, L. U. '.i C. P. .'»2; .SVir/ v. liotir- dillon, supra. Secondly, the written note or memorandum re(|nired by the 17th section, if properly signe l>e that tl»r written oflVr ciiniiot In; vii-wt'd in the li^ht of u nienturunduni, since there h;i.s l)een no previous verUtl eontnict ; nor, in tlie absence of all inutiuilitVi can it Ik* considered to Ixj the con- tract itself. See the lan^uai^c of Uraniwdl, 11., in Watts r. Ainsworth, 'i\ L. J. Kx. 448, and of Wilde, B. in the same case reported in 1 11. «& (\ 83. See, also, Munday r. Asprey, 18 ("h. 1). 8.'^;'). And in two recent Massachusetts decisions the court has refused to extend this principle t«» the case of a written authority to an aj^eiit to make an offer; flastiuf^ v. Wei)er, 142 Ma.ss. '2'.V2 (188»;): Doherty r. Hill, 144 .M;iss. 4r,r> (1887). ('omi)are Williams v. Byrnes, 8 L. T. N. S. •;•.». Hut see Lee f. ('herry, 8/) 'IVnn. 707 (1HM7). uftiihlr, mntrn. Parol evidence is competent to show that memorandum differs from verbal agreement. — In furlln*r illustration of the j^enend priucijiie thill the memorandum presuppos»'s a pre-existing verbal agreement, parol evidence may l)e introduced to show that it is insunicient to take the promise out of the operation of the statute because it differs in some essential feature from tliiil at^reement. Such evi«lence would of course, on common- law j)rinciples, be inadmissible, if the memorandum constituted a wiitteii contract ; Sievuwrij^ht r. ArchiUild, Hupni : I'arton r. Crofts, 83 L. .1. ('. 1'. \H\K per Krle, J.; Archer r. Haynes, ;"> Ex. 625; (iibson v. Holland, L. IJ. 1 C V.. fur Willes, J.; Davis V. Shields, 2<) Wend. 341; ( oddini^ion v. (loddard, !♦» (iray 436, ^<'/- Bijj^elow, V. .1 ; Lcrned v. Wannemacher, '.> .Mien 412; (lardner J'. Hazilton, 121 Miss. 494; Williams i-. Kobinson, 73 Me. 186 (1SS2). Letter •written to a third person or in repudiation of the con- tract. — Moreover, a letter written to the defendant's own a^ent, or to a third person, which never comes to the notice of the plaintiff, is held to constitute U good memorandum of a pre- vious verbal agreement; Gibson v. Holland, L. K. 1 C. I*. 1; Peabody v. Speyers, 56 N. Y. 230 ; Kleeman i'. Collins, 9 Hush (Ky.) 460; Moore v. Mountcastle, 61 Mo. 424 ; Wood r. Davis. 82 III. 311 ; Moss v. Atkinson, 44 Cal. 3. In Warfield v. Wis- consin Cranberry Co., 63 la. 312 (1884), there seems to have been an erroneous application of this doctrine. In this case the defendant undertook, by a letter written to a third person, to accept the written offer of the plaintiff. The court held that this was a good memorandum under the statute. As was WAIN V. WARLTEES. 1511 pointed out in the dissenting opinion by Adams, J., it would seem that there was no valid contract between the parties, apart from the statute, since there was no aggregatio mentiiim. It was not a question of a sufficient memorandum, but of a valid written contract at common law. Compare Banks v. Harris Mfg. Co., 20 Fed. Rep. 667 (1884) ; Lincoln v. Erie Preserving Co., 132 Mass. 129 (1882). Whether a letter wiitten by an agent to his principal is a good memorandum, quccre. Gibson v. Holland, supra, and Banks v. Harris Manfg. Co., 20 Fed. Rep. 667 (1884) seem to hold that it is not. A letter written by the defendant to the plaintiff, admitting" its terms, but repudiating the contract upon some other ground than the Statute of Frauds, is held to be a sufhcient memo- randum under the statute ; Bailey v. Sweeting, 9 C. B. N. S. 843 ; M'Lean v. Nicoll, 7 Jur. N. S. 999 ; Buxton v. Rust, L. R. 7 Ex. 1, 279 ; Wilkinson v. Evans, L. R. 1 C. P. 407. In the last case. Cooper v. Smith, 15 East 103, Richards v. Porter, 6 B. & C. 437, and Smith v. Surman, 9 B. & C. 561, are dis- tinguished on the ground that in these cases the terms of the verbal agreement were incorrectly stated in the writing signed by the defendant. Delivery of memorandum unnecessary. — So if the writing neve]' be delivered to any one, but remain in the possession of the defendant, such as an entry in his books, it is held that the requirements of the statute are answered ; Johnson v. Dodgson, 2 M. & W. 653 ; Gibson v. Holland, supra ; Argus Co. v^ Albany, 55 N. Y. 495 ; Townsend v. Hargraves, 118 Mass. 325, 335, per Colt, J. ; Tufts v. Plymouth Co., 14 Allen 407 ; Jenkina V. Harrison, 66 Ala. 345 (1880) ; Drury v. Young, 58 Md. 546 (1882). Plaintiff must declare on verbal contract. — So the plaintiff must declare in his pleadings upon the original verbal contract ; and, unless it be expressly alleged in his declaration that the agreement sued on was verbal, there is no legal cause for demur- rer ; but the statute must be properly pleaded by the defendant ; Babcock v. Bryant, 12 Pick. 133 ; Quin v. Hanford, 1 Hill 82 ; Elder V. Warfield, 7 Harr. & J. (Md.) 391 ; Price v. Weaver, 13 Gray 272 ; Ecker v. Bohn, 45 Md. 278 ; Walker v, Richards, 39 N. H. 259 ; Elting v. Vanderlyn, 4 Johns. 237 ; Cranston v. Smith, 6 R. I. 231 ; Petrick v. Ashcroft, 20 N. J. Eq. 198 ; 1")12 WAIN \. w Ai:i/n:i:s. Adiiuis V. l*;itri(k, 3<) \'i. .'>ltJ ; Liiwruncc v. Chiwc, ;>! Ale. I'.m; ; I'.ost.tii r. Nirliols, 47 111. ;{'>:5. Memorandum must be executed before suit brought. — 'Ilieif are iiuiny dicta in the reported esises t«» the effeet tliat tliu iiifiii- oranduni must he exeiutt'(l U'fore tlie e(»mineiueineiil of tlie artion; Bill /•. IJaiiieiit, 9 M. W. 3»'., p,r I'arke H. ; TisdaU* r. Harris, 'JO Pick. 1>: Towiiseiid r. Mar^nave.s, llH Miis.H. 32o, ^.V-W), jx-r CiM, .].; liird r. Muiiroe, ♦'•»» Mc. .UT, per Peters, .1. Hut it is l)elii'ViMl that it has never \hh'U necessary t<» de«'ide the point, and it is hard to sec, if the nienioranduni is not the cnii- tract itself, hut only evidence of it, why a verhal ai^'reenient is not saved from the operation of tli«' st;itiit>' h\ ;i writim^r |.\,.- euted at any time Ijcfore trial. II. Form of memorandum. No special form required. — Any Hole or writiiiL,' may U* a j^ood memorandum un«lir the statute, liowever informal, and however awkwar«lly or inartitieially ex- pressed, providt tl oidy it U' intelliijii»le without the introilue- tion of j)arol evid»'nce to explain it ; Tindal, ('. .1., in Acehal V. Levy, 4 iM. iV Scott 220. See, al.so. Watt r. ('ranln-rry Co., r;:^ Ia.7:iO (1S84); Fry r. I'latt, :i2 Kan. frj (18H4); North v. ^Iiiidcl, 78 (Ja. 400 (1H84). Parol eviS Md. o40 (1882). It is no ohjeclion to the memorandum that it is written in pen- oil, and a printed pa[)er is equally hindinj; with a written one; Saunderson v. Jack.son, 2 B. .S: P. 28S ; Pitts v. Beckett, 18 M. cV \V. 748: Merritt r. Clason, 12 Johns. 102; Clas(m r. Bailey, 14Jolms. 484: McDonel r. ChamlxM-s, 1 Strobh. (S. C.) Kq. 347. It would seem that a paper sij^ned by the defendant will bind him, although formally so worded as to bind the plaintiff only. Such was the case in Pennimaii v. Hartshorn, 13 Ma.ss. 87, and the defendant was lield liable on the memorandum. So a bill of parcels, signed by the seller, is held to be a valid memoran- dum, although such bills are so worded as to bind the buyer: Saunderson v. Jackson, supra; Hawkins v. Chace, 19 Pick. 502. See, also, Butler v. Thompson, 02 U. S. 412. Different kinds of writings as memorcinda. — Any kind of ■writing, duly signed, and sufficient in other respects, will con- WAIN V. WARLTERS. 1513 stitute a valid memorandum. Thus a letter, Peck v. Vande- mark, 99 N. Y. 29 (1885) ; Hollis v. Burgess, 37 Kans. 487 1887) ; the return of an officer upon a sale of execution, Reni- inton V. Linthicum, 14 Pet. 92 ; Hanson v. Barnes, 3 Gill 6 Johns. 359; Sanborn v. Chamberlin, 101 Mass. 409, 41 (J ; a vote of a corporation, or a city ordinance, duly entered on the records ; Tufts v. Plymouth Gold Mining Co., 14 Allen 407 ; Johnson v. Trinity Church, 11 Allen 123 ; Chase v. Lowell, 7 Gray 33 ; Grimes v. Hamilton County, 37 la. 290 ; Argus Co. V. Albany, 55 N. Y. 495 ; District of Columbia v. Johnson, 1 Mackey (D. C.) 51 (1884), are valid memoranda under the statute. So are telegrams, if intelligible ; Godwin v. Francis, L. R. 5 C. P. 295 ; Hazard v. Day, 14 Allen 487 ; Tuvan v. Wood, 36 N. Y. 307 ; Duble v. Batts, 38 Tex. 312; Whaley v. Hinch- man, 22 Mo. App. 483 (1886). So a receipt of part payment, or a bond for title, given by the vendor of real estate, if it contain all the stipulations of the contract and a sufficient description of the subject-matter, is a good memorandvun of a contract for the sale of land ; Barry v. Coombe, 1 Pet. 640 ; Williams v. Morris, 95 U. S. 444 ; Smith v. Freeman, 75 Ala. 285 (1885) ; Thornbury v. Masten, 88 N. C. 293 (1883) ; Ellis V. Bray, 79 Mo. 227 (1883) ; Humbert v. Brisbane, 25 S. C. 506 (1886); Wright v. Mischo, 52 Super. Ct. (N. Y.) 241 (1885). So a defective deed of conveyance is a good memorandum ; Reeves v. Pye, 1 Cranch (C. C.) 219 ; Argenbright v. Campbell, 3 H. & M. (Va.) 144 ; Henry v. Root, 33 N. Y. 526 ; Welsh v. Coley, 82 Ala. 363 (1886). So it has been held that a deed of conveyance, drawn up and executed with the knowledge of both parties, with a view to the consummation of the contract of sale, constitutes a valid memorandum, though ineffectual to pass title for want of delivery; Jenkins v. Harrison, 66 Ala. 345 (1880). See, also, Bowles v. Woodson, 6 Gratt 78 ; Black- nail V. Parish, 6 Jones' Eq. (N. C.) 70 ; Thayer v. Luce, 22 Ohio St. 62; Work v. Corhick, 81 111. 317. But see Cannon v. Can- non, 26 N. J. Eq. 316 ; Overman v. Kerr, 17 la. 485 ; Parker v. Parker, 1 Gray 409; Sanborn v. Sanborn, 7 Gray 142; San- born V. Chamberlin, 101 Mass. 409, per Gray, C. J., contra. So it has been held that a deed delivered to a third party as an escrow, may, on the performance of the condition, be enforced by the grantee as a memorandum of a contract for the sale of land; Campbell v. Thomas, 42 Wis. 437 (1887) ; Popp v. Swanke, 1514 WAIN V. WAKLTEUS. «;8 Wis. 304 (1887); Cannon v. Handley, 72 (\il. 133 (1887). But see Cu^'j^'er r. Lansin*,', 43 N. V. o^O, reversing the decision in 57 Barb. 421, contra. As to entrie.s by auctioneers and brokers in their sak's-ljooks and bont^dit and sohl notfs, see infra. Incorporation of unsigned writings by reference. — It is Well settled, both in this country and in Knj,dand, that (he nienio- randuiu niav consist of more than one writing. It is also well settliMl that if the ditlerenl parts are each si^Mied by the de- fendant, no express reference to each other is necessary. Parol evidence is coni{)etent to apply to the contract each part which is duly sit,Mie(l, just :us in the case of a sin«;le writing' parol evidence is admissible for the same purpose. See Jenkins v. Harrison, 00 Ala. 345 (1880), and csuses cited infra. But when one paper is signed and the othei-s unsigned, all U-ing necessary to constitute a sullicieiit memorandum, it is uot enough that the (litTerent pai)ers can Ihj shown by parol to refer to tiie same contract, but there must Ik^ .some reference in the signed l)ai)er to th(»se which are unsigned. Thus in the celebrated case of liovdell v. Drummond, 11 Kast 142, it wius held, where the defendant sigiu-cl his mime in a Iniok entitled "Shake- speare Subscribers — thi'ir Sigmitures," that since there was nt) refcr(!nce in the book to a i)rospect\is issued by the plaintiff, the two could not be read together so as to establish a suthcient memorandum under the statute. See Saunderson v. Jackson, 2 B. *fc 1*. 238; Allen r. Bennet, 3 Taunt. 101»; Jackson v. Lowe, 1 liing. '.*; Johnsou v. Dodgson. 2 M. »fc W. 658; Jacob V. Kirk, 2 Mood. c\: R. 221 ; I'.uxtoii r. Rust. L \{ 7 Kx. 1,271>; First Baptist Church v. Bigelow, 10 Wend. 2S ; O'DonneU v. Leeman, 43 Me. 158; Jefts r. York, 10 (^ish. 3<>2; Khoades v. Castner, 12 Allen 130; Sanborn v. Noekin, 20 Min. 178; Ridg- way V. Ingram, 30 Ind. 145; Thayer v. Luce, 22 Ohio St. 02; Wiley V. Roberts, 27 Mo. 388 ; Shafer v. Farmers' and Mechanics' Bank, 59 Pa. St. 144; Jolmson v. Buck, 35 X. J. L. 338; Frank V. Miller, 38 Md. 401; Fisher v. Kuhn, 54 Mi.ss. 480: Lee t'. Mahoney, 9 la. 344. So in order that the conditions of an auction sale may form a part of the auctioneer's memorandum they must be expressly referred to therein; Morton v. Dean, 13 Met. 385; Hinde v. Whitehouse, 7 East 558; Kenworthy v. Schofield, 2 B. & C. 945 ; Rishton v. Whatmore, 8 Ch. D. 467 ; Riley v. Farnsworth, 116 Mass. 223. Two well-known cases in this country would seem to have been decided in violation of WAIN V. WARLTERS. 1515 the well-recognized principle of law now under consideration. The first is Salmon Falls Mfg. Co. v. Goddard, 14 How. 44(3, in which a bill of parcels was allowed to be read in connection with a memorandum signed by the defendant which contained no reference to it. In fact the bill of parcels was not in existence when the memorandum signed by the defendant was drawn up. In the other case, Lerned v. Wannemacher, 9 Allen 412, it was held that the two parts of a contract drawn up in duplicate could be read together in order to establish a suffi- cient memorandum, although neither contained any internal reference to the other. Both of these cases have been much criticised, and it is indeed difficult to reconcile them with principle or authority. See the dissenting opinion of Mr. Justice Curtis in Salmon Falls Manf. Co. v. Goddard, supra. See, also, the language of Doe, C. J., in Brown v. Whipple, 58 N. H. 229 (1877). The most difficult question on this branch of the subject, namely, how specific the reference to the unsigned paper must ])e, and how far parol evidence is admissible to explain and limit a general reference, has received much attention in the last few years from the courts both of England and of this country. As a result of the most recent decisions, it w^ould seem that, provided it appear in the signed writing that some other paper is referred to, parol evidence is admissible to apply the genei-al reference to the particular paper. Thus in the recent case of Beckwith v. Talbot, 95 U. S. 289 (1877), the unsigned paper was referred to as " the agreement," and this was held to be a sufficient reference. Mr. Justice Bradley, in his opinion, saj-s : " It is undoubtedly a general rule that collateral papers, adduced to supply the defect of signature of a written agreement under the Statute of Frauds, should on their face sufficiently demon- strate their reference to such agreement without the aid of parol proof. But the rule is not absolute. There may be cases in which it would be a violation of reason and common sense to ignore a reference which derives its significance from such proof." So in Smith v. Colby, 136 Mass. 562 (1884), the words in a letter " We will undertake the croquet job upon the terms agreed upon when at your place," were held to contain a suf- ficiently specific reference to a written agreement signed by the plaintiff, but not signed by the defendant. But see the opinion of Doe, C. J., in Brown v. Whipple, 58 N. H. 229, in 1516 WAIN V. WAllLTKliS. wliicli till' laiif,Mia^e of Mr. Justice Bnulk'y, »upra, is cntni^td. In u late Kii^^lish ease, Loiij,' c. Millar, 4 C. 1'. D. 450. The.si;;er, L. .)., would seem to have stjuaiely ueeeptetl im law the propoKJ- tioii that where it apjjears hy the sii^Mjed writing' thatsonu- othtr writing is referred to, parol evial cvidt-ncr. " The other late ICnglish leases would seem to Ik; in accord; Uidgway r Wharton, G II. L. ('as. "JOS: Baumann v. James, :> (h. App. 508; Pierce v. Ci)rf, L. II. '.• (J. !'.. JIO; Kishton r. Whatiuore, 8 Ch. I). 4M7; Shardlow r. Coiterell, JO Ch. I). !H) (lH8l); Kroidieim i>. Johnson, 7 Ch. D. <;<> ; Cave <•. Hastings, 7 C^. B. 1). 1J5; Craig v. Klliott, 1.'. 1.. U. Ir. l':.7 (1884); Studds v. Watson, 28 Ch. I). 305 (l^^"*)' Wyl.son r. Dunn, ;U Ch. I). 5»)9 (1887). For the latest American law on the suhje (188f)); Oliver v. Ala. Gold Life Insu. Co.. /-/., 417; Pr.k r. Vandemark, 09 N. V. 2!> (lss5); North r. .Mm. 1.1. 7:'. (ia. 400 (1884); Bo.sckeln r. Mc(iowan, \'2 .M... .\pp. 5o7 (ISS'J); Tiee v. Freeman, 30 Min. 389 (1883); Smith i-. Jone.s, 00 (la. 338 (1881). Papers physically connected at the time of signing may In- read together , and it is immaterial that they suhse(|uently become severed; Kcnwoithy v. Schotield, - !>. \- ( '. 1H5. fur Holroyd, J.; Tallman r. Franklin, 14 N. V. 5,s4. The signature. — The statute not only requires a writing, hut requires also that the writing should be aii/ntil by the party to be charged, or his agent thereunto lawfully authorized. The courts have interpreted the word " signed " as employed in the statute in contradistinction to the word "subscribed." " If this were the first case on the Statute of Frauds, I should have doubted whether, if the vendee put his name at the top of the document, this would have been a signing within the statutes. But it has been decided that it does not signify where the name is put, if it be put somewhere on the document by the parties WAIN V. WARLTERS. 1517 themselves who are to be bound by the signature, or by the per- son having authority from them to make a contract on their behalf." Crompton, J., in Durrell v. Evans, 31 L. J. Ex. 337, clscided in the Exchequer Chamber in 18G2. The law is well settled, accordingly, both in England and in this country, that the signature may be at the top or in the mid- dle of the writing, as well as at the end. So the signature may be by initials ; Thillimore v. Barry, 1 Camp. 513 ; Sanborn v. Flag- ler, 9 Allen 474. And a printed signature will satisfy the stat- ute ; Schneider v. Norris, 2 M. & S. 286; Drury v. Young, 58 Md. 546 (1882). The written or printed name, however, wherever it is placed in the document, must be intended to authenticate it. It is always a question for the jury, whether the defendant adopted the printed signature pro hac vice and whether he intended to be bound by the writing as it stood, or whether it was left unsigned at the foot because he refused to complete it. Tlius in Johnson v. Dodgson, 2 M. & W. 653, the memorandum was drawn up by the defendant in his own hand- writing, " Sold John Dodgson, etc.," and signed at the foot by the plaintiff only, but remained in the possession of the defend- ant. It was held by the court, that under these circumstances, it was plain that the defendant intended to be bound by his signature at the top of the memorandum. So in Schneider v. Norris, 2 M. & S. 286, where the seller tilled up the blank in a printed bill of parcels, with the name of the purchaser, and afterwards delivered it to him, it Avas held that this was a suf- ficient adoption of the seller's name printed at the top. So m a recent Mayland decision, Drury v. Young, 58 Md. 546 (1882), an instructive case upon this branch of the subject, the only signature was the following letter-head, ''Office of Drury, Ijams & Rankin, wholesale and retail grocers, etc.," and the court were inclined to hold that this would be a sufficient signa- ture if brought home to the defendant, although the writing remained in his possession and was not signed by the plaintiff. But in Boardman v. Spooner, 13 Allen 353, where the pur- chaser stamped his name and a date on the bill of parcels, with- out delivering it to the seller, in the absence of evidence to show that he had adopted such a stamp as a signature, and had affixed it to the instrument with the intent to bind himself thereby, it was held that there was no memorandum properly signed under the statute. See, also, in general, Saunderson v. lol8 WAIN V. \vai:lti:u8. Jackson, J l'». .V I'. 2:JH ; Siul r. liounlilloii. -J*; L. .!.('. P. 78; Kntiihuiin <'. .loliiison, 7 C\i. I). HO; ( 'iilun v. ("iiton, L. R. -J 11. L. 127; JoiJL's r. Victoria (Jnivin^' Dtuk Co., 2 C^. li. 1). oli: Bennett r. Brunilitt, L. li. :i C 1*. 2M; lluwkeswoith r. CluifT. y, r)4 I.. .1. Cli. 72 (1«8()); Clasou r. IJailey, 14 Johns. 4H4 ; Penniniiin c Hartshorn, l^J Mass. H7 ; IMen »•. Kiltrucl|,'e, 7 Mass. 2:;;'.; Ilodykins r. Bond, 1 N. II. 2S7 ; Hawkins v. Chiiee, lU I'iik. r)05; Sanborn r. S;inhorn, 7 (iray 11-; I la/.ar«l r. I)ay» 14 Allen 1S7. Tnder the New York statute, whieli reijuires the nienioran- duni to be subscribed, it is lield tliat actual suljscription is necessary: Davis /•. Shields, 2t; W.nd. :'- 11 : Medivern r. Fleui- niinrr, \2 Daly ( N. V.) 28i> (l«s4). Ill Sclby V. Selby, 3 Meriv. 2, it w;is held by Sir William (irant, that a letter sijj^ned "your affectionate mother," con- tained no sufhcient sijjnaturt' within the intent of the statute; and see Skcllon r. ('(de, 1 De (J. iV J. r>s7. These eases have been somewhat severely criticised as jmttinj,' too narrow a con- struction upon tin- statute, and, as has U'eii said, it is hard to distinguish between initials and any otlu-r description of his identity which may be adopted by the signer of a paper. Authority to affix signature. — l^xce[>ting in those states, like New llam[)shire, where the authi>rity of the agent is expressly required to be in writing, a parol authority is suflieient ; and a subsequent ratification is eipiivalent to ;i prior authority; Soames v. Spencer, 1 Dowl. «.S: \i. 1^2; MeI.ean v. Dunn, 4 Ming. 722 ; Davis r. Shields, 24 Wend. 324 ; Kggleston v. Wagner, 4i; Mich. »;10 (18S1): Hawkins v. Baker, 4>> X. V. (^HU\. An agent authori/x'd to make in behalf of his princijtal a con- tract within the Statute of Frautls, has also an authority by implicaticMi to bind him by a note or memorandum : and even after the termination of the agency, it seems that the agent may still make and deliver to the other contracting jnirty a mem- orandum binding on his principal, unless his authority so to do has been expressly revoked ; Williams v. Bacon, 2 Gray 387, per Merrick, J.; Elliot v. Barrett, 144 Mass. 256 (1887). But see Smith v. Arnold, 5 Mas. (C. C.) 414. See infra as to auc- tioneers. It is of course unnecessary that the agent's name should appear in the memorandum ; Hunter v. Giddings, 07 Mass. 41. See i7ifra as to the necessity of the principal's name appearing. WAIN V. WARLTERS. 1619 An agent cannot delegate his authority to make a memoran- dum, unless so empowered by his principal ; Townsend v. Drake- ford, 1 C. & K. 20 ; Henderson v. Barnewall, 1 Y. & J. 387. Bat see infra as to auctioneers' clerks. It is well established that neither of the contracting parties can be the agent of the other for the purpose of making and signing a valid memorandum within the Statute of Frauds ; Wright V. Dannah, 2 Camp. 203 ; Bird v. Boulter, 4 B. & Ad. 443 ; Farebrother v. Simmons, 5 B. & Aid. 383 ; Sharman v. Brandt, L. R. 6 Q. B. 720 ; Murphy v. Boise, L. R. 10 Ex. 126 ; Robinson v. Garth, 6 Ala. 204. But see Ennis v. Walker, 3 Blackf. 472 ; Johnson v. Buck, 35 N. J. L. 338. But the agent of one party may, if expressly so authorized, sign the memo- randum in belialf of the other party ; Graham v. Muson, 5 Bing. N. C. 603 ; Graham v. Fretwell, 3 M. & G. 368 ; Simmons v. Humble, 13 C. B. N. S. 258. And see Bamber v. Savage, 52 Wis. 110 (1881). Entries by auctioneers. — A common application of this prin- ciple is the authority of an auctioneer, who is, strictly speaking, the agent of the seller, to bind the purchaser as well as the seller by entries in his books or by other writings ; Hinde • v. Whitehouse, 7 East 558 ; Morton v. Dean, 13 Met. 385 ; Gill V. Bicknell, 2 Gush. 355, ])er Shaw, C. J. ; Springer v. Klein- sorge, 83 Mo. 152 (1884). On the principle laid down supra^ the auctioneer cannot himself sue on a contract within the statute evidenced by a memorandum made by himself ; Fare- brother V. Simmons, supra ; Rayner v. Linthorne, 2 C. & P. 124; Smith V. Arnold, 5 Mas. (C. C.) 417 ; Bent v. Cobb, 9 Gray 397 ; Brent v. Green, 6 Leigh 16 ; and see cases cited supra. Auctioneers differ from other agents in that their memoranda must be made at the time of the sale, at least in order to bind the puroliaser; Buckmaster v. Harrop, 13 Ves. 456; Mews v. Can, 1 H. & N. 484; Smith v. Arnold, supra; Horton v. McCarty, 53 Me. 394 ; Williams v. Bacon, 2 Gray 387 ; Bam- ber V. Savage, 52 Wis. Ill (1881); Hewes v. Taylor, 70 Penn. St. 387. In a recent Massachusetts case, Marcus v. Boston, 136 Mass. 350 (1884), it was held that a bill in equity could not be maintained which was brought by a per- son claiming to be the highest bidder at an auction sale of land, against the auctioneer and the person to whom the land was struck off, and the memorandum of sale executed. ir)20 WAIN V. \VAltLTKIt8 to compel the iiuctioneer to si^'ii a luemoruiulum of sale declar- ing,' the phiiutilf to \>v the ])iiich;user. There is ^'iiMt iliversity amoiij^ the reported ciuscs ius l») whether ;iu iiuctioneer eun dele^Mte his authority to sij;n a ineiii- oraiidiiiii to his tl.-rk, hut it would seem hy the weight of authoritv that he can so deh-j^'ate it; Coles r, Treetithiek, U Ves. •2-'A; Bird r. Boulter, 4 B. iN: Ad. 44:i; Henderson r. Harnewidl, 1 Y. & J. 387: (iill »•• Bieknell, '2 Cush. :'.:.:.; Fro>t ,-. Hill, 3 Wend. 38«;; Doty r. Wilder, lo 111. 4UT ; Alna r. Plummer, 4 (ireenl. 2')8 ; Hart v. Wi>ods, 7 Blaekf. o»I8. But see I'ierce V. Corf, L. K. '.» C^. B. Jlo; Mtjulows v. Mea (iray 43«» ; Mer- ritt V. Clason, 12 Johns. 102; Springer v. Klein.sorge, 83 Mo. 152 (1884). But see Uafferty v. Lougee, G3 X. IL '. t ( lss4) contra. Brokers' entries, bought and sold notes. — .\ hroker, like an auctioneer, is the agent of lK)th i)arties, an«l Ijotii are Imund hy his memorandum. In this country it is well estahlished law that the entries in a hrokei's hooks constitute a good memoran- dum within the statute, and in England the better opinion would now seem to he to the same etTeet, although in the past there has been among the Lnglish judges a great diversity of views upon the subject; Maclean v. Dunn, 4 Bing. 722; Thointon v. Charles, 1> M. »S: W. S02 ; Thonijison r. (iardiner, 1 C. P. D. 777; Merritt v. Clason, 12 Johns. 102; Davis v. Shields, 26 Wend. 341; Boardman r. Spooner, 13 Allen 353; Coddington v. Goddard, 10 Gray 436. In England the law seems to be that the broker's entry must Iw signed by him, and that his own name must appear; (irant c. Fletcher, 5 B. & C. 436; Gorm v. Afialo, 6 B. & C. 117; Henderson v. Barnewall, 1 Y. & J. 387; while in tliis country it seems to be assumed that the same principle applies as in the case of auctioneers' entries. See cases cited supra. WAIN V. WAKLTERS. 1521 The bought and sold notes of a broker, if they correspond with one another, are hekl to be a sulticient memorandum within the statute ; Hawes v. Foster, 1 M. & R. 368 ; Parton v. Crofts, 33 L. J. C. P. 189 ; Suydam v. Ckxrk, 2 Sandf. 133 ; Heffron v. Armsby, 61 Mich. 505 (1886) ; Greeley-Burnham Co. V. Capen, 23 Mo. App. 301 (1886) ; and in LangdelFs Cases on Sales (Index, pp. 1035, 1036) the author argues with much force of reasoning that even a disagreement in the notes should not prevent a recovery, provided the note sued on contains all the stipulations of the verbal agreement. See Thompson v. Gardiner, supra; Newberry v. Wall, 84 N. Y. 576; Butler v. Thompson, 92 U. S. 412. It has been decided in England that if the bought and sold notes disagree, resort may be had to the broker's entry as containing the true stipulations of the con- tract; Sieve Wright v. Archibald, 17 Q. B. 103. But the im- portant question as to which is to be considered the memoran- dum, the broker's entry or the bought and sold notes, when the latter agree with each other but disagree with the entry, seems to be still undecided. See Langdell's Cases on Sales, cited supra. III. Contents of memorandum. In general. — A memorandum within the statute, of whatever description, and whether con- tained in one writing or in many, must correspond with the previous verbal agreement. If stipulations are added in the writing which were not contained in the verbal agreement, or if any essential stipulations of the original contract are omitted, the memorandum is defective. " Unless the essential terms of the sale can be ascertained from the writing itself, or by reference in it to something else, the writing is not a com- pliance with the statute ; and if the agreement be thus defec- tive it cannot be supplied by parol proof, for that would at once introduce all the mischiefs which the statute was intended to prevent." Mr. Justice Clifford, in Williams v. Morris, 95 U. S. 444. Thus in Seaman v. Drake, 97 N. Y. 230 (1884), a memorandum of a contract of employment for more than a year was held to be insufficient because no mention was made therein of the nature of the employment. So in Webster v. Clark, 60 N. H. 36 (1880), a memorandum of a contract for a lease of real estate, " buildings to be erected by the lessor," was held defective, because the writing did not specify the kind of buildino-s. So the memorandum of such a contract must Ifj'J'J WAIN V. \v.\i:i;ii:i:s. specify the exact duy wlieii the term is to Ix-^'in ; M.ii>hiill i*. BenulK't', !■» Cli- I>- -•»'^ ^ -^^'^y *'• 'I'1"»'»I»-^ -"^ ^'''- ^^ "'*'♦ (1«S2); riuhiii /•• Tedcastle, 1.") L. K. Ir. 1»;'.>; Whit. -. McMahon, IS L. l:. Ir. 400. So in May i'. Wiiid, 134 Mass. 127 (1S8I5), where iiii esseiitiiil eh'ineiit of tlie eontruet was left to he aj,Meeil upon at some time in the future, tlie writ- in^r was hehl insullieient. So in Asheroft r. Iluttcrworlli, l:3<; Mass. 511 (1884), wliere the memoramhim was, " NVc will «iil»l»ly yoii ^vith Kii"K^' kI'^"*"* '^^ ^''^' ^'''"*' '■''^'' ^^•^' ■'*'M4'L^' •''^•' " '^ was hehl that this was not explicit enoui,'h to satisfy the statute. See mfni as to the price. St) if ^oods are .sold "snhject to the buyer's approval," that condition must appear in the memoran- dum ; Boardman v. Spooner, 13 .Vllen 3o3. See, also, in jren- eral, M'LeiiM r. NiroU, 7 .hu. N. S. Wi) ; Uishlon r. Whatmore, 8 Ch. 1). 4ti7 ; X'inceiit r. Vincent, .V) L. .1. Ch. I). 181 (188(;); (irace r. Deunison, 114 Mass. If,; |mIz r. Toney, 118 Miiss. 100; fJardiier r. lla/.ilt(.n, \ -\ Mass. 4l>4 ; Kemick i'. Sandford, lis Muss. lo2: Ncwhcrry r. Wall, «'.."> N. V. 4S4; Ullman r. Meyer, 10 Ahh. (N.Y.) N. ('. 281 (1882); M.WiU liams V. Lawless, 15 Neh. 1:',1 (18S3); Hppich v. Clifford, G Col. 41)3; UatTerty r. Lou^a-e, «;3 N. II. 54 (1884). Parties. — Bv an almost unl>roken current of ilecisions it is held that the nan\es of the contracting; parties must appear in the nicnioranduni ; Champion '•. IMummer, 1 N. \l. 2.")2 ; Klinitz /'. Surry, 5 Ksp. 2»>7 ; Williiims r. Byrnes, 'J .Jur. N. S. 3(;3; An(U'r.s(.n r. Harold, lO Ohio 31M>: Calkins v. Falk. 38 How. I'l. il.<;2; McElroy r. Leery, Ol Md. 397 (1883); H;iw- kiusou r. Harmon, f)^ Wis. 551 (188«)) ; Lincoln v. Va'w Tre- servin<,K'o., 132 Mass. 129 (1882). So it has l)een held that a memoranilum of a contract of ji^uaranty must contain tlie name of the creditor; Williams r. Lake, 2 El. & E. 349. It would seem that a memorandum of a contract of sale must show who is the buyer and who is the seller ; Bailey v. Og^den, 3 Johns. 399. See the di.ssenting opinion of Mr. Justice Curtis, in Salmon Falls Manf. Co. v. Goddard, 14 How. 440 ; but the courts have generally been disinclined to reject parol evidence introduced for the purpose of explaining the relationship of the parties ; Newell v. Radford, L. R. 3 C. P. 52 ; Salmon Falls Manf. Co. V. Goddard, supra ; Coddington v. Goddard, 16 Gray 436 ; Sanborn v. Flagler, 9 Allen 474. It would seem that the parties to the contract must be re- WAIN V. WARLTERS. 1523 ferred to in the memorandum qua contracting parties. Thus in Yanderbergh v. Spooner, L. R. 1 Ex. 316, the following mem- orandum was held defective : " D. Spooner agrees to buy the whole of the lots of marble purchased by jVIr. Vanderbergh, etc." So by a recent decision in the U. S. Supreme Court it was determined in the case of an auctioneer's memorandum that a reference to the seller, not as seller, but as a person of whom information about the property could be obtained, was faulty; Grafton v. Cummings, 99 U. S. 100 (1878). In Sale v. Lambert, L. R. 18 Eq. 1, it was held that a descrip- tion of the seller as " the proprietor " was a suihcient reference, although the seller's name was not mentioned. See, also, Com- mins V. Scott, L. R. 20 Eq. 11. But a reference to him as "the vendor," is held insufficient ; Potter v. Duffield, L. R. 18 Eq. 4. See, also, Rossiter v. Miller, 3 App. Cas. 1121 ; Jarrett v. Hunter, 34 Ch. D. 182 (1886) ; Re Hudson, 54 L. J. Ch. 811 (1885). Compare Jones v. Dow, 142 Mass. 130 (1886). The decisions are uniformly to the effect that in a memoran- dum signed by an agent, the principal's name need not appear ; Kenworthy v. Scofield, 2 B. & C. 945 ; Williams v. Bacon, 2 Gray 387 ; McWilliams v. Lawless, 15 Neb. 131 (1883) ; Cona- Avay V. Sweeney, 24 W. Va. 643 (1884) ; Neaves v. Mining Co., 90 N. C. 412. This doctrine, somewhat questionable on prin- ciple, the courts have refused to extend to the case of an auctioneer's memorandum. It is held, accordingly, that his signature will not supply the place of a reference to the name of even the seller; Potter v. Duffield, supra; Sherburne v. Shaw, 1 N. H. 157 ; Grafton v. Cummings, swpra. Price. — In a contract of sale it is held that the price, if agreed upon by the parties, is one of the essential terms of the contract, and must be contained in the memorandum ; and the same rule prevails even in those jurisdictions where it is pro- vided by statute that the consideration need not be expressed in the memorandum ; Aeebal v. Levy, 10 Bing. 376 ; Elmore V. Kingscote, 5 B. ^ C. 583 ; Smith v. Arnold, 5 Mas. (C. C.) 416 ; Soles v. Hickman, 20 Penn. St. 180 ; O'Neill v. Crane, 67 Mo. 250 ; Williams v. Morris, 95 U. S. 444 ; Ascroft v. Butter- worth, 136 Mass. 511 (1884) ; Phelps v. Stillings, 60 N. H. 505 (1881). So in a receipt for part payment of the price of real estate it would seem that the full price agreed upon must be stated; Phillips v. Adams, 70 Ala. 373 (1881); Wright v. 1524 WAIN V. \N AULTKUS. Mischo, .V2 N. V. SuiJtT. C't. -41 (1^H.'»). Hut see Thonibury V. Musteii, 8H N. C. 203 (18«8): Kllis v. limy, 7l» Mo. 227 (1883), rontnt. U M(» pricf Im* jij^reed ujmuj l»y the purtifM, none, of course, netil be stated in the nienioninihun ; Iloudly V. McLiiue, 10 n\u^. 482; Ashtroft r. Morrin, 4 M. vV (J. 450; Ar^ais Co. r. AllKiny, o.") X. Y. 40o ; Norton v. (i»le, l>5 111. r>38. But st'f Jiinu's V. Muir, 33 .Mieh, 224. Credit. — If ii s;il»' is niiule on citMlit the teiins of the credit must he stiitt'd iu thf nieiuoninduni ; Wii^iit v. Week**, 2o N. Y. ir,8; Norris r. lUair, 31» Ind. '.•<>; WiUi.ims »•. Kohinson, 73 Me. 18H; Schroede r. TaiiU', 11 .Mo. App. 2»»7 (iHMl); (Jiiult o. Storniont, 51 Mi( h. r»3<5 (1883). It wouhl seenj that if nothinf;^ is said as to the time of payment, the memorandum may Iw silent on the subject, since it will Ik; presumed to \tv a eiwh tnmsactiou ; Hawkins r. Chaee, 10 Pick. 502. Hut see the laii^ua^M- lit" Ml. .Instil (• ( urtis in Salmon Falls .Manf. Co. v. (ioddard, 1 1 How. 44*;. ^Warranty. — It was decided in an early New York case that if ^oods are sold with an cxpre.s.s warranty it must U' ho stated in the nicmoianduni ; I'clticr »•. Collins, 3 Wmd. 45!>. Hut it would sccni thill this must ilepend uj)on wluther tin* warranty is intended by the parties as a condition of the sale or lus an indi'pt'udent iii^rcement. Time and place of delivery. — A memorandum of ]l contract for the saU' of ^ooniii(liiin, iiiid u iiiaiiifust violutioii of tliu Htatiitv. 'riiu-> tlu' words "a pitM-e of laiul," without inoii', is a loo inileti- nitr , 1 Pet. (140: (iowen r. Kh.u.s, lol .Mass. 441» ; Bishop r. Fletcher, 48 Mi. h. 555 (18H2); Thornhury r. Masten, 88 N. ('. 293 (1888); I'ul.e r. Miller, Hi Ind. 1 '.'<); Fisher v. Kuhn, 54 .Miss. 4Ml. In Claik r. ( 'hand»erlin, 112 .Mass. ll>, it was hehl that a de.Hcrii>- tioii of ccitain lots Ity numUr. without n-ference to any plan, was insuflicient. But si-e Springer »•. Klcirsorjje, 83 .M^. 152 (18H4) onfni. In lCiiL,daiid the law would scciu to 1m' even more lil)eral than in this couiitry in allowini^ external t-viileiuH' to In* intro(luced for the i)Urposi' of identifyini; th»' sulijrel-matt«'r. 'i'hc follow- inir have hi-en held a sutlitit-nt description: "my iiouse," Cow- ley V. Watts, 17 .lur. \~-: "the property in C'jil>le Street," Bleakley v. Smith, 11 Sim. 150; "the house in Newjiort," 3 M. & K. 353; "the intended new [>ul)lie house at Putney," Wood V. Scarth, 2 K. & J. 33; "the premises," ihi,{. ; "the .lolly Sailors' otlices," Naylor v. (Joodall. 47 L. .1. ( h. 53; ♦•this place," Waldron v. Jacob, 5 Jr. K. Va\. 1^J1 ; " juoperty j)ur- chased at Sun Inn, Pinxton, on 21Hli March." Shardlow v. Cot- terell, 20 C'li. I). 90. See, also, .M'Murray r. Spicer, L. K. 5 Fq. 527; Ex parte Nat. Prov. Bank., 4 Ch. I). 241: Nene Valley Drainuoe Connnissioners v. Dunkley, 4 Ch. I). 1. The consideration. — In Wain v. Warlters, principal case, it was decided that in the memorandum of contracts within the fourth section of the statute the consideration must be ex- WAIN V. ^yARLTERS. 1527 pressed. This decision was followed in Saunders v. Wakefield, 4 B. & Aid. 595. In Egerton v. Mathews, 6 East 307, the court distinguished between the word "agreement" in the fourth section and the words " contract " an d "bargain" em- ployed in the seventeenth section of the statute, expressing the opinion that under the latter section the consideration of the contract need not be expressed in the memorandum. But see supra as to the price. In the year 1856 it was enacted by par- liament that the consideration of a contract of guaranty need not be expressed in the memorandum. In this country the whole subject is largely regulated by acts of the legislatures of the several states; in many cases these acts being simply declar- atory of the law as laid down by the court of last resort, and in other cases changing the law. See Packard v. Richardson, 17 Mass. 112 ; Kerr v. Shaw, 13 Johns. 236 ; Patchin v. Swift, 21 Vt. 292 ; Gillighan v. Boardman, 29 Me. 79 ; Reed v. Evans, 17 Ohio 128 ; Hutton v. Patchin, 26 Md. 228 ; Goodnow v. Bond, 59 N. H. 150 (1879) ; Sanders v. Barlow, 21 Fed. Rep. 836 (1884). In the state of New York at the present time the law on this subject seems to be in a state of great uncertainty. It w^as early decided by the courts of that state that the consideration must be denoted in the writing. A declaratory statute was afterwards passed, and in 1863 this statute was repealed. The effect of the repeal of this statute seems to be still undecided. In Castle v. Beardsley, 10 Hun 343, and Spej'crs v. Lambert, 16 Abb. Pr. N. S. 309, opposite views are adopted. For an elaborate discussion of the present New York law see Drake v. Seaman, 97 N. Y. 230 (1884). See, also, Evansville Nat. Bank V. Kaufman, 93 N. Y. 273. Both in England and in this country it has always been held that a general reference to the consideration is sufficient and that it may be inferred by implication ; Stadt v. Sill, 9 East 348; Ryde v. Curtis, 8 D. & R. 62 ; Pace v. Marsh, 1 Bing. 216 ; Haigh v. Brooks, 10 Ad. & E. 309 ; Leonard v. Vreden- burgh, 8 Johns. 40 ; Church v. Brown, 21 N. Y. 315 ; Williams V. Ketchum, 19 Wis. 231 ; Miller v. Cook, 23 N. Y. 495. IV. Alteration of contracts within the statute by parol. — It is well established law that those written contracts to which the Statute of Frauds has no application may be subsequently, at any time before breach, altered or varied in their terms, l')*28 NVAIN V. WAKLTKICS. or iiljsulutt'ly icscindetl, by ii verluil iij^rffiiunl Ui«..ii inr piirti* s ; (i li. iV A«l. »»'>, y^^r Di'iiiiiaii, C\ J. It' thf contract is witliiii the Mtutute it would hcciii that all modititatioiis of such a written contract must thcnistdvcs U* in writing. There is considcrahlc conflict, ho\vcv»'r, among the earlier Knglish cjiHes on the subject, and the law «»f Knglaml and of Massachusetts is entirely at Viiriancc. On one ]>oint, however, there is no disagreement, namely, that the plaintiff must declare upon the written agreement, and not U{H>n the writing and the parol moditication together; (iosM r. Lord Nugent, xiipni ; Stead v. Dauln'r, 10 Ad. tV' Kl. .')7 ; Whittier r. Dana, 10 Allen -VI^'k This would seem to have Ix'cn the true ground of decision in Marshall >•. Lynn, ♦> M A W 10i». See Hickniaii r. Ilaynes, L. U. lo (' j'. r>i»S. iJul in ( ummings v. Arnold, :; Met. 4S»;, and Stearns r. Hall, J» ("ush. M, it was held that a written contract within the Htatute might be modi- fied by parol, and that a readiness to perform the sulistituted contract woidd avail either the plaintiff or the defendant to excuse the non-performanc«' of the original agreenient. In England, on the other hand, it is held that an actuiil i>erform- ance of the sulistituted contract and acceptance thereof in necessary, which will operate by way «»f accord anai/)nent /*// a third parti/. (Hut sit Dalfiji v. India .j- London Life Insurance Co., net out, infra, />. li'.'T, contra.) 'I'liis was ail action of (k'l)t on a policy of insiirance niade the 29tli of Nov. ISO:?, nn«lcr seal of the dcfcnd.ints, as three of the (liivctors of the I'elicun Life Insurance Companion hehalf of the eompany; whieii reeited that the plaintiffs, coach- makers in Lonj]^ Aere, being interested in the life of the l{i<_dit lion. William Pitt, and desirous of makini,'an insurance thereon for seven years, had suljserihed and deliveied into the oHiee of the company the usual declaration setting forth his liealth and age, &c., and having paid the premium of IT)/, lox. as a considera- tion for the assurance of 500/. for one year from tlie 28t]i of Nov. 1808, it was agreed that in case Mr. Pitt should hai)pen to die at anv time within one year, &:c., the funds of the company should be liable to pai/ a)id wake i/ood to the plaintiffs, their executors, &c., within three months after his demise should have l)een duly certified to the trustees, &c., the sum of 500/. And further that that policy might be continued in force from year to year 1.580 GODSALL V. BOLDERO. 1531 until the expiration of the term of seven years, provided the annual premium should be duly paid on or before the 28th of Nov. in each year. The plaintiffs then averred, that at the time of making the said assurance, and from thence until the death of Mr. Pitt, they were interested in his life to the amount of the sum insured ; and that they duly paid the annual pre- mium of lol. 15s. before the 28th of Nov. 1804, and the further sum of 15?. 15.S-. before the 28th of Nov. 1805; and that after that day, and while the assurance ivas in force, and before exhib- iting the bill of the plaintiffs, viz., on the 23rd of Jan. 1806, Mr. Pitt died ; that his demise was afterwards duly certified to the trustees, &c. ; since when more than three months have elapsed before the commencement of this suit, &c. ; but that the 500?. has not been paid or made good to the plaintiffs. There were also counts for so much money had and received by the defend- ants to the plaintiff's use, and upon an account stated. To this the defendant pleaded, 1st, nil debent. 2ndly, that the plaintiffs, at the time of making the assurance, and from thence until the death of Mr. Pitt, were not interested in his life in manner and form as they have complained, &c. 3rdly. As to the first count, that the interest of the plaintiffs in the policy, and thereby intended to be covered, was a certain debt of 500?. at the time of making the policy due from Mr. Pitt to the plaintiffs, and no other ; and that the said debt afterwards, and after the death of Mr. Pitt, and before the exhibiting of the plain- tiff's bill, to wit, on the 6th of March, 1806, was fulhj paid to the plaintiffs by the Earl of Chatham and the Lord Bishop of Lincoln, executors of the will of Mr. Pitt. Issues were taken on the first two pleas : and as to the last, the plaintiffs, pro- testing that their interest in the policy thereby intended to be covered was not the said debt mentioned in that plea to be due to them from Mr. Pitt, and no other, rephed, that the said debt was not afterwards, and after the death of :\Ir. Pitt, and before the exhibiting of their bill, fully paid to them by the Earl of Chatham and Lord Bishop of Lincoln, executors of Mr. Pitt, in manner and form as alleged, &c.: on which also issue was joined. The defendants paid 31?. («) into court upon the first count ; (a) There was some discussion in in respect of tlie premiums received ; the course of the artjument as to the the grounds of computing which did sufficiency of the sura paid into court, not distinctly appear. The defend- ^,'):',-2 coDSAi.i. V. u<>i,i)Ki:o. ;iii(l oil the lliill nl' the rilUSf iK'foiu Lord Ellenf>oroui/h, ('. .1.. at (iiiildlmll, it Wiis ji«rit'tMl that a veiditt shouhl Ik- i-iitt'ivd on tlif suveial issues, aci'ordin^ to tlie dirt'ttion of (h«- • ..mi. ..n the followiuj^ ease reserved. The poliey ineiiticiiied in the deehiration was duly uxuL-uitd, an, the exeeutoi-s of Mi. I'itt paid to the [)laintilYs, out of the money fjranted liy I'aili.iment for the payment of Mr. I'itt's del)ts, 1,101»/. lU. «'»./., as in full for the delit due to them from Mr. I'itt. 'I'he case was aii^MU'd in the last term I)y f)'Hiipirr, for tlu- plaintitTs. who contended that tlu-y were entitled to recover upon this policy notwithstandin*^ the piu- nieiit of the tleht to them hy .Mi. I'itt's executors out of the money ^nanteil l>y Parliament for that purpose. It is clear that a creditor has an insurable interest in the life of his debtor, and the amount of the debt is the measure <»f that interest; aijd so far the existence and lej^ality of the debt(f/) is neces- sary to the validity of the insurance in point of interest under the stat. 14 Geo. 3, c. 48 : but it is not the tirhf (pia deht, which is insured, but the life of the debtor: it is only nece.s.sary that the interest should exist at the time of the instirance made, ami continue up to the time of the death of the debtor, as it did in this case: and the sum insured having then l)eeonie due, and the debtor's estate insolvent, the fact of payment of tlie debt afterwards by the third party cannot be material ; such payment being gratuitous. The validity of the insurance dc})ends upon its agreement with the stat. 14 Geo. 3, c. 48, which was made to prevent " insurances on lives or other ants' counsel, however, denied the (n) Dinjer v. Edie, London sittinsrs necessity of paying anything into after Ilil. 1788. Park on Insnr. sth court, the risk having once com- ed. 914; and 2 Marsh, on Insur. 3rd menced; and ultimately no opinion ed. 779. was given by the court on this point. GODSALL V. BOLDERO. 1533 events wherein the assured shall have no interest;" and for this purpose it enacts (s. 1) " that no insurance shall be made by any persons on the life of any person, &c., wherein the per- sons for whose use, benefit, or on whose account such policy shall be made, shall have no interest, or by way of gaming or wagering ; " and it avoids every assurance made contrary to the true intent and meaning thereof. The 2nd section pro- hibits the making any policy on the life of any person without inserting in it the person's name interested therein. And the 3rd section provides that in all cases where the insured hath interest in such life, &c., no greater sum shall be recovered from the insurers than the amount or value of the interest of the insured in such life, &c. Now here it cannot be disputed but that all the requisites of the act have been complied with. The only question which can be made is upon the third section, as to the necessity of the interest continuing beyond the time of the event happening on which the insurance is stipulated to be paid, and to the commencement of the action. But the interest need only continue up to the happening of the event insured, when the cause of action arises ; and that is the usual averment in actions of this sort : and the defendants by their third plea admit that it continued beyond that time ; for they allege that the debt was paid after Mr. Pitt's death, though before the action commenced. But if it had been necessary that the interest should endure up to the time of the action brought, that should have been averred : which has not been usual ; and for want of which the judgments in former cases might have been arrested. The hazard was run for which the premium was received, during Mr. Pitt's life ; and as he died insolvent, there was then as it were a total loss : then the underwriters' liability cannot be adeemed by the voluntary payment of a third party, though through the hands of the debtor's executors. The very payment of the premium gave the plaintiffs an interest in the policy : and it could not liave been in the contemplation of the Legislature, when they granted the money for the payment of Mr. Pitt's debts, to adeem the risk of underwriters. In the case of insurances against lire, it never was conceived that the insurers could avail themselves pro tanto of charitable donations collected for tlie benefit of the sufferers. In the case of a life insurance, the premium is not calculated upon the risk of the insolvency of the person whose 1534 (iODSALI. V. ItnLDKKu. life is insured, but solely on the probability of the duration of tlie life. But, if the defendant's objection Ije well founded, every case of this sort will be resolved into an examination of the assets: of whicii the insurers will avail themselves pro tanto^ after havinj^ had the i)enelit of the whole premium; and tliis too, at any distance of time when assets may be forthcom- \\\\f after till- pavmcMt of the loss. IJiit, secondly, by the pay- ment of money into court the defendants admit a continuani'u of the plaintiff's interest in the policy beyond the amount of the bare debt; for it was paid in after the liijuidation of the (h'l)t, and after the action connnenced. And tiierefore the plaintiffs would be entitled to recover somethinj^^. Ami it does not appear how the premiums received have U'en rednced to the anioiiiit piiid into ((nut. 3Iarri/(if, i-ontru, siud that he shonld not now (h>pule the jirop- osition, that a creditor mit^ht insure the life of his dibior since the statute ; tii(HiL;h it mii^ht have l)ecn (l(iid)tc(i, at tirst, wlicther such an interest as that in the life of another were within the contemplation of the LcL;i>latMre. 'I'here was an inception of the ri>k on the policy; and therefore the premium was j)roperly paid ; and lu) i:i:<). enabled to make the payment. The money was paid hy them, and n'ceived by the [)laintiffs, as for the .'}8 l)Al.l:V V. INDIA AM) l.<»Nl)(iN lAl'V. ASSI' I: ANCK CO. tioii ill tliii whole, or in piut, iiuist openite upon the iiulemiiity in tliL' s;iine dt'^ifu. 1 1 is a conliiuliction in terms, t'j hrin^' un iietion for indeinniti/^ where, upon the whole event, no damaye has been sustained." Upon this j^'round, therefore, tliat the ]>laintifYs had in this ease no sulwistinj^ cause of aetion in pt)int of law, in respect of tlicir contract, rci^Mrding it as a contract of im/tniniti/, at the linu! of the action hroui,dit, we are of opinion that a vcr- di(.'t must he entered for the defendant on the lirst and tliird ])leas, notwithstandint,' the tindiiiLT '" favour of the plainlitls on the second plea. (Aftci" having In'en treated as law, not only in this coi'.ntrv, hut in the United States, for a great nunUter of years, during whicli it w^is freipiently referred to hy Judges of eminenee without disapprobation, the ease «»f Godxall v. linhiero has been overruled by the unanimous decision of six Judges sit- ting in the Exchequer Chamber, in the case of Dalisv v. Till; India and L(»nd<»n Likk Assurance Company. [nr.i'oitiKi) i."> C-. n. 3G5.] The Judgment was dclivcrciother CreifHiveU at Nisi I'lins. We learn that on the trial he reserved the important point which arose in it for the consideration of the Court of Com- mon Pleas; that when it came on for discussion it was thought right to put it on the record in the shape of a bill of exce{> tions, that it may be carried, if it should be thought pioper, to the highest tribunal, and we have now, after a very able argument on both sides to dispose of it in this court of error. It is an action on what is usually termed a policy of life assur- ance, brought by the plaintiff, as a trustee for the Anchor Assurance Company, upon a policy for 1000/. on the life of his late Ro3-al Highness the Duke of Cambridge. The Anchor Life Assurance Company had insured the duke's life in four separate policies — two for 1000/. and two for 500/. each — DALBY V. INDIA AND LONDON LIFE ASSURANCE CO. 1539 granted by that company to a Mr. Wright. In consequence of a resolution of their directors, they determined to limit their insurances to 2000^. on one life ; and this insurance exceeding it, they effected a policy with the defendants for lOOOL by way of counter-insurance. At the time the policy was subscribed by the defendants, the Anchor Company had unquestionably an insurable interest to the full amount. Afterwards an ar- rangement was made between the office and Mr. Wright, for the former to grant an annuity to Mr. Wright and his wife, in consideration of a sum of money, and of the delivering up the four policies to be cancelled, which was done ; but one of the directors kept the present policy on foot by the payment of the premiums till the duke's death. It may be conceded for the pui-pose of the present argument, that these transac- tions between Mr. Wright and the office totally put an end to that interest which the Anchor Company had when the policy was effected, and in respect of which it was effected, and that at the time of the duke's death, and up to the com- mencement of the suit, the plaintiff had no interest whatever. This raises the very important question, whether, under these circumstances, the assurance was void, and nothing could be recovered thereon. If the Court had thought some interest at the time of the duke's death was necessary to make the policy valid, the facts attending the keeping up of the policy would have undergone further discussion. There is the usual averment in the declaration, that at the time of the making of the policy, and thence until the death of the duke, the Anchor Assurance Company w\as interested in the life of the duke ; and a plea that they were not interested ' modo et forma,' which traverse makes it unnecessary to prove more than the interest at the time of making the policy, if that interest was suffi- cient to make it valid in point of law. {Lush v. Russell., 5 Exch. 203.) We are all of opinion that it was sufficient, and but for the case of Grodsall v. Boldero, 9 East, 72, should have felt no doubt upon the question. The contract com- monlif called ''life assurance^'' when jyroperly considered., is a mere contract to pay a certain sum of money on the death of a person., in consideration of the due payment of a certain annuity for his life., the amount of the annuity being calculated in the first instance according to the probable duration of the life ; atid tvhen once fixed it is constant and invariable. The 1540 DALBV V. IN1»1A AND L(»Nl>itN Lll i: ASSlKANt K (<». 8ti[)ul;itt'ntraets of indemnity, the insurer engaging to make go<»d, within certain limited amounts, the losses sustained by the insured in their buildings, siiips, and effects. Policies on maritime risks were afterwanls used impi-operly, and made mere wagers on the happening of thosi' perils. This prai-tice was limited by the ll> ( i. li, c. :',7, and put an end to in all except a few eases; l)ut at conuuon law, Ix-'fore this statute with respect to maritime risks, and the 14 CJ. 3, c. 48, lus to insurances on lives, it is perfectly clear that all contracts for wager i)olicies ami wagers which were not contrary to the i)olicy of the law were legal contracts; and so it is stated by the court in i'ouxinx v. Xnntcx (3 Taunt. 31.')), to have been solenudy determined in the case of Lucena v. Vrau- fimJ (2 P.os. i^ I*. 3-J4, '1 X. \{. 'liW^), without even a difference of o[)inion among all the judges. To the like effect was the decision of the court of error in Ireland, l)efore all the judges except three, in The British Inxuntfur Co. v. Matfcc (1 Cooke A: Ale. iSii), that the assurance was legal at common law. Their contract, therefore, in this case to pa}- a tixcd sum of lOOO/. on the death of the late Duke of C'andiridgc wtiuld have bei-n un- questionably legal at common law, if the plaintitY had had an interest thereon or not; and the sole «iuestion is, whether this policy was rendered illegal and void by the provisions of the stat. 14 G. 3, e. 48. This depends upon its true constructit)n. The statute recites that the making insurances on lives and other events, wherein the insured shall have no interest, hath introduced a mischievous kind of gaming, and for the remedy thereof it enacts '* that no insurance shal/ /»• mmle by any one on the life or lives of any person or persons, or on any other events whatsoever, wherein the person or persons for whose use and benetit or on whose account such policy shall be made itJiall have no interest, or by way of gaming and wagering ; and that every assurance made contrary to the true intent and meaning thereof, shall be null and void, to all intents and purposes whatsoever." As the Anchor Assurance Company had unques- tionablv an interest in the continuance of the life of the Duke DALBY V. INDIA AND LONDON LIFE ASSURANCE CO. 1541 of Cambridge, and that to the amount of 1000/., because they had bound themselves to pa}^ a sum of 1000/. to Mr. Wright on that event, the policy effected by them with the defendants was certainly legal and valid, and the plaintiff, without the slightest doubt, could have recovered the full amount if there were no other provision in the act. The contract is good at common law, and certainly not avoided by the 1st section of the 14 G. 3, c. 48. This section, it is to be observed, does not provide for any particular amount of interest. According to it, if there was any interest, however small, the policy would not be avoided. The question arises on the 3rd clause ; it is as follows : — " And be it further enacted, that in all cases where the insured hath interest in such life or lives, event or events, no greater sum shall be recovered or received from the insurer or insurers than the amount or value of the interest of the assured in such life or lives, or other event or events." Now, what is the meaning of this provision? On the part of the plaintiff it is said it means only that in all cases in which the party insuring has an interest when he effects the policy, his right to recover and receive is to be limited to that amount ; otherwise, under colour of a small interest, a wagering policy might be made to a large amount, as it might if the 1st clause stood alone. The right to recover, therefore, is limited to the amount of the interest at the time of effecting the policy ; upon that value the assured must have the amount of premium cal- culated ; if he states it truly, no difficulty can occur ; he pays, in the annuity for life, the fair value of the sum payable at death. If he misrepresents by overrating the value of the in- terests, it is his own fault in paying more in the way of annuity than he ought, and he can recover only the true value of the interest in respect of which he effected the policy, but that value he can recover. Thus the liability of the assurer be- comes constant and uniform, to pay an unvarying sum on the death of the cestui que vie, in consideration of an unvarying and uniform premium paid by the assured. The bargain is fixed as to amount on both sides. This construction is effected by read- ing the word ' hath ' as referring to the time of effecting the policy. By the 1st section the assured is prohibited from effect- ing an insurance on a life, or on an event wherein he ' shall have ' no interest — that is, at the time of assuring ; and then the 3rd section requires that he shall recover only the interest l'>42 DALBY V. INDIA AND LONDON LIIK ASSUl:ANiniM (1 Moo. & li. 02), ill wliich the cixse of GoJsall v. BoiUrn waa inci- dentally Jioticed as proving it to l)e necessary that the interest slionld continue till the deatli of the cestui que vie. It was j)roved in that case to he tlje practice of the j)articular ollice in which that assurance was made, to pay the sums assured with- out iiKiuiry as in the existenee of an insurahle interest; and on that account it was held that the policy, thougii in that disc the interest had ceased, was a valual)lc policy, and the plaintiff could not recover on the ground that the defendant, the vendor of it, was guilty of fraudulent concealment in not ilisclosing that the interest had ceased. This was the [)oint of the case ; and though there was a dictum of Lord Tcntenlen that the pay- ment of the sum insured could not he enforced, it was not at all necessary to the decision of the ease. The other cases cited on the argument in this case were cases in equity, where the propriety of the decision of Goihall v. liohlero did not come in question. 'I'lu^ (jucstions arose as to the right of the creditor and dchtor inter xe^ where the olVices have paid the value of a policy, in Humphreii v. Arahin, 2 Lloy«l Jt Goold, ^^^X : I[ennon V. Bhtrhwell 4 Hare, 4:U, ccr. Sir J. \vigram, V. ('.; Phi/lips V. Eastivooil, 1 Lloyd and (Joold ((';is. temp. Sugd.), 281 — - where the point decided was, that a life policy, as a security for a deht, passed under a will becpieathing dehta, the Lord Chan- cellor stating that the offices found it not for their benefit to act on the rigid rule of Godxall v. Bolih-m. \\\ these cases the different judges concerned in them do not dispute, some indeed appear to ajjprove of, the case of Gmisall v. Bohlera ; hut it was not material in any to controvert it, anLI>KK(). Jnstcad tlierc;)f of tho coiisi^'iior, ofdislgnoo, or of tin- iMr>*<)ii wlio nnivcd or j trny of )/i,i)i:i:(). " that tltc statute did not apply, except in the ca»e ichere the teager atsumed the xhapc of a pulicij of insurance." It must, however, be observed on Murtjan v. J'ehrer, that It does not seem to have been neceimary in tiiat case to decide tlie point, whether a wa^er on a future event, not conceived in the usual shape of a policy, be within the nieauiug of the act or not. For it did not sulllciently appear from the n'cord that the parties were not intertnted in the event. On the contrary, it ratlu-r appeared that they were so: for. thon;;h tliey were not possessed of the Spanisli Stplied to trriltt-n cnntrnits. Now there was no averment in any part of tin- record in Munjiiii v. I'lfntr. that any part of the contract there was in irritimj. Wiieliier l.oril Kenyon's ilirtum on that sub- ject nuiy be hereafter actpiiesced in. is anotiier <|Uestion. Certainly it woidd be stranjje if a tjaviinij polinj, prohibited from beiiif; made in writing;, coidd be fjood if made by parol : and the effect of that clau.se In the statute which directs that the name of the party Interested shall be Inserted, may perhaps be, not to render a policy ijood if verbal, which would be bad if written, but to render a writinj; necessary in every case. [It should be observeil tliat under tlie Stam|) Acts it is necessary that policies should be In wrltln;:, see 3.'} Geo. 3, c. (;:5, now repealed: .'5(i Vict. c. '.'3, s. 7; 33 & 34 Vict. c. '.»". ss. 117, 118.] Notwitlistaniiini; the stroni; ex|»ressions used l)y the court in Munjan v. Pebrer, which, accurdinj^ to the well-known rule, must be referretl to the case then before them, it is extremely ditlicult to suppose, that If, in any of those transactions on which policies are usual a iraminsf policy were worded like a common waj»er, it would be held to be thus exempteil from the operation of tlie 14 G. 3. To such cases the expressions of Lord Manslleld in l'r v. 'Jhurkiry, cited l)y Huller. .L. in (ianil v. lilliolt, [3 T. K. i'>'X\] would forcibly apply. " What," said his lordship, " is a policy? It is derive«l from a French word which means a pi-omise. Is a particular form necessary? Must it beirin, 'In the name of God, Amen'? or refer to Lombaril Street? A inercantih' policy we all know, but a yarning policy is a mere wajjer. If the form were essential under the act, it may be evaded immediately: for it may beN('ntlon of tlip Hth Miction. Tlif court, however, ri'fusi'«l a rulf to show miiHr, >m-Iiij» clearly of opinion that It was not a wa^cr within the iiieniiliiu of tiie act. Lu'int v. Ihnrhrr, t ('. It. »7>H. [See, al.Ho, a.4 ; lliijgiHBun \. Simftton, t C. I'. I). 7(i.] A foot-race han Iwen hehl to he a " lawful jcame " within the provlM) at the enil of sect, in, llnUn v. Murrintt, 5 C. B. M|H; [hut when* the tranHacth>n l.s In Mul)stauce a wauer. the proviso thw-s not protect It; therefore, in Dil(l«> tlie event of a walkini; match itetween them, it was competent for one of them to revoke the stakehoUler's authority to pay «)ver tlie money, ami to recover It hack hy action; Trimhlr v. //«//, 5 App. Ca. 342.] A kintl of };amiiii; having spruii:; up by the o|M'nlnu of places eall<*tl UetthiK Houses, the owners of whii-h recelve«l money tm tiie promise to pay so much upon llie events of horse-races or the like, the statute l»» St 17 Vict, c lIU. ■was passed, hy which [every] such house [oltlce, nxim, or place (F.nnttruiitl V. Milhr, L. U. U 1^. H. 440; Ihnra v. Ftninrk, L. I{. 1» C. V. SM ; t;,illii>f.ty v. Mari>i>, H y. n. I). 27.*.; :.l I.. J. M. C .'>:«; Smne v. Hill. 14 t^. 11. I). :.mm ; 54 L. .1. .M. (V 9a,)] are declareil to l>o common uamtnt; houses within the niean- Inj; of the H & 'J Vict. c. 109, s. 2; hy s. 4, persons receiviny money In any such liouse are made liable to a |H>iialty, aud the money so paid can l>c recov- ered back under s. 5, as paid to the use of the party makluK the tleimslt. [This act has In-en amended by :<7 Vict. c. l.l. as to the sco|k' of which a<*t, see C»x v. Amlrnn,, 12 (^. 11. I). 12»',: :,:\ I.. .1. M. <\ .14 J^ee also Ul.lh'tm v. ftamg'l'-n, 44 L. .1. C. 1*. 'Mrj; .hnkn v. Turi'in, \'A ^ »• l> •'»<•'»; .V» L. J. M. V. U!l ; the :ta i :»»■. Vict. c. y4, s. 17; anil f«>r an instance of irandnj; under this latter statute, Itrw v. Jiamlon, a t^. B. I). 4.'i4. The H jL y ^'ict. c. 1011, did not extend to India ( where however, it has since been followed), ami therefore l)y the common law of Kn^land (which was In force In India In lH4rt), an action was maintainable on a watfer made there, aUlioui;h the parties had no previous Interest In the subject-matter, If the wn^er was not airaliist piil)llc polh-y, or against the Interest or fecllnjfs c»f third parties, aud diil not lead to any lnde<'ent eviden«"e. See llnmloll Thack- oitrs'iiiltt^.t V. Sinijiinutitll /thntnlmull, 4 Moo IihI. .Vpp. f. '.VM ] Witli respect to the nntiirf of the intrri-M wldch the 14 (ieo. W, c. 4M, re- quires, Lonl Tenlerden, in I/ulJhnl v. Kijintr, 10 B. & ('. 72.'», expres.seil a stronj; opinion that It must be 'i pininitDy our. A policy effected l>y a father, in his own name, on the life of his son, was, in tliat case, held void. '• It Is enacted," says Bayley, J.,*" that no jjreater sum shall Im* recovenMl than the ann'iiiU of thf riilup of the Interest. Now what was the ammint nf the mine of the interest in this case? Certainly not one farthing. If a father, wl.shlni^ to liive his son some property to dispose of, make an insurance on his .son's life, in his (the son's) name, not for his (the father's) own benefit, i)ut for tlie benefit of the son, there is no law to prevent his doinj; .so; but that is a transaction tuiite ditferent from the present." [See also IlrMon v. West, 3 B. & S. .')70. In WnrHnnijtOH v. Curtis, 1 Ch. D. 4rJ; 4:> L. J. Ch. 250. a father had efl'ected a policy for his own benefit on the life of and In the name of his son, and on his son's death had taken ont administration, and received the sum insured. In a crcditi>r's suit it was held tliat.as the office had not chosen to resist the claim, the maxim potior est conditio possidentis applied, and the father was entitled to retain tlie money as against the creditors.] DALBY V. INDIA AND LONDON LIFE ASSURANCE CO. 1553 A creditor (as is well known) has an insurable interest in the life of his debtor, Anderson v. Edie, Park. Ins. 8th ed. 915 ; unless, indeed, the debt be an illegal one, Dwyer v. Edie, lb. 914; [see Hehdon v. West, just cited, where it was held that a clerk in a bank had an insurable interest in the life of the managing partner by reason of an engagement by the manager to employ the clerk at a certain salary for seven years, to the extent of so much of the seven years as remained unexpired at the time of the effecting of the policy. And in the same case the court held that the clerk had no insurable interest by reason of a promise to him from the manager that he would not, during his life, enforce payment of a debt due from the clerk to the bank. One of two joint obligors of a bond has an insurable interest in the life of the other, Branford v. Saunders, 25 W. R. Ex. 650. Upon the analogous question what constitutes an insurable interest in cases of marine insurance which, as we have seen, are excluded from the operation of this statute, see judgment in Seagrnve v. The Union Marine Insurance Co., L. R. 1 C. P. 305 ; Wilson v. Jones, L. R. I Ex. 193, 2 Ex. 139; Ebs^corth v. Alliance Marine Insurance Co., L. R. 8 C. P. 596; Inglis v. Stock, 10 App. Ca. 263; 54 L. J. Q. B. 582.] A trustee may insure in respect of the interest of which he is trustee, Tidsioell v. Angerstein, Peake, 151. Lord Kenyon held, at Nisi Prius, that a wife who had insured her husband's life, need not prove that she was inter- ested in it, for it mast be presumed. Bead v. Royal Exchange Insurance Co., Peake, Ad. Ca. 70. It has been always considered clear that a man may insure his own life; but, as has been already observed [p. 307], the Court of Exchequer has expressed an opinion in Wainirright v. Bland, that a man can- not, in order to evade the statute, legally insure his own life with the money and for the benefit of another. Indeed, there would be another objection to such a proceeding, arising from sect. 2 of the statute, which requires the insertion of the name of the person on whose account the policy was under- written. [See Evans v. Bignold, L. R. 4 Q. B. 622, and Shilling v. The Acci- dental Death Insurance Co., 2 H. & N. 42, in which case an action was brought by the executrix of J. S. upon a policy of insurance on his life, and a plea alleging that the policy had been made by T. S. in the name of J. S., but for the use and benefit of T. S., and not for the use or on account of J. S., and that T. S. had not any interest in the life of J. S. was held to be a good plea.] Qucere, if an allegation in a declaration upon a policy that A. and B. were interested, is satisfied by proof that A. was mortgagor, and B. mortga- gee. See Pirn v. Keid, 6 M. & Gr. I. [We have already seen that sect. 3 of the 14 Geo. 3, c. 48, provides that in all cases in which the assured had an interest in the life or event in respect of which the policy is eftected, no greater sum shall be recovered or received from the insurer or insurers than the value of that interest at the date of the policy. The Court of Queen's Bench put upon these words in Ilebdon v. West, supra, the construction, that where there are several policies effected with difl'erent offices, the assured can recover no more from the insurers, whether on one policy or many, than the amount of his insurable interest. " Look- ing," said the court, in that case, " to the declared object of the legislature, we are of opinion that though, upon a life policy, the insurable interest at the time of the making the policy, and not the interest at the time of the death, is to be considered, it was intended by the 3rd section of the act that the insured should in no case recover or receive from the insurers (whether 15r>4 (JOlXSALL V. Iinl.DKKO. upon out* policy or many) more than tin- InHurahU- intort'iit whli-li tlir {htiuio iiitikiiit; the In.siirHncc Iwul ut ttu> tlm«r lii> hiMiiriMi tlif llf<*. If fur i;rt*at«r HiTiirliy Ik- tlilnkn tit to InNurc with nimiy p«-rson>i niul l>y dliriTi-nt conlnietM of insiiniiiif, ami io pay the prcniliini** upon cMth policy, h«* U at lilM-rty tu do ?«o, hut hf CUM only rrcovrr or rt-cvlve upon the \\ho|i> tin* nnmunt ut hln lnsural)lc intcn-st ; and If lit- hn.H ri-rclvc«l tin* whole amount from nni* In- surer, he is precluded by the terms of Ihe ;lril section «»f the otnlute fr«>m recoveriu!; any more from the others. Any aruument ari^lnt; from the nU|>- poseil hardship of allow inu the liitiirers In such a case to receUe and rulalo the prendums without heln;; ol)||<;ed to pay the consideration for whicli such prendums wen* pahl, would Im' i><|ually applicable to the case of marine Insuranres, upon which, however nniny policies there n»ay Ik-, the under- writers are only liable to the extent of the value Insured."] The priiu'lpal case of UixUnU v. linlih ri» did not Indeed turn on the statute of 14 (ieo. :i, but on the common-law doctrine, that Insurance Is a contm«'t of liKli'iindty, the act applyin;: to cases where there never was an lnte*fst to Insure; uml nit it is mnr ilrriilnl Ih'it it nnilruft nf lifr iimuninrr in nnl <»«»• nf iiiiU'innitij, so It is nl>>o held that the elTec-t of tlie statute is only to re<|Ulre an Interest In the life Insured at the date of the c«intract, /< ■" - ^ /'■- /•■-'■■ • ' LiiuihtH Ash. Co., iintr, p. 2t»7. Althoii;;!! the doctrine establlsheil l)y ''.i; Ihnsnn v. liliii-kir-rll, 4 Hare's Kep. 4;»4; Unihi-r v. Morris, I M JL K. *>2, It ha»l been decided that the converse of (linlsitU v. liiilibro iliti not hoUl t;o«Kl; .•»o that where an owner of stacks malii-iously set on lire, had bi-en paid the amount of his Iohs by an Insurance olllcc, he was allowed, notw ithstaiidini;, to recover against the hundred, under the ;> < , 1. <•. •.':', Chirk- v. Ithjthimj, '2 B. & C. 2.'.4 ; S. 1*. Mntnn v. Sttinsliiirij, 'J Marshall on Insurance, .'Ird ed., l'M\; Yntrs v. White, 4 HInjj. N. ('. 27'.'. [And In a recent case, it was hehl that In an action for personal Injuries sustained throuijh the defendant's nejill^rence a sum received by the pl:iiiititr upon an accidental iusiiran<-e policy could not be taken into account in reduction of danui;;es. Jiniurn v. tirntt Wrstrrn Hail. <'»., I,. \{. |() Kx.h. 1 ; cf. .hl.srn v. A', it 11'. /;,.//.i l)„rk r,,.. \.. |{. 10 C. 1». :MX).] In the ca.sc I/iilhiml v. Smith, Ci Ksp. 11, honl KllenlHirouyh «^renn-d to be of opinion that If A. insured the life of 15. his debtor, nml afterwards the d«'bt was paid off. B. mijiht, by contluului; to pay the premiums, ki-ep the policy alive for his own l)cncllt. (.\s to the circumstances under which a stranger to the policy will) pays preiniums to keep it up, uniy acquire a lieu for the amount .so paiti, see III re Lrslie, 2:1 Ch. 1). .".2: .".2 L. J. Ch. 7<;2.J That the statute only applied to the ori;;inal parth-s to the contract, and not to their nssiuiu-es, we have already seen In the «-ase of Ashlfij v. Afhlftj, ante, p. 307 ; the etlect therefore of the decision in l>iilt»i v. Ihe Imliu nud Lomhtti Ass. Cd., scem.s to be to put the original party etlectiny the policy in the same position as an assi<;nec confessetlly was in. anil to make the con- tract itself what in its terms it purports to be. not one of Indemnity, but an enjiairoment to pay a certain sum on the happeninir of a certain event, in consideration of the payment of the premiums in the meanwhile. But marine insurances and insurances aijainst Hre still remain, as they purport in terms to be, contracts of indemnit;/ ; thus, in Potrles v. Innes, 11 M. & W. 10, it was held that a person who assigns away his interest in a ship or ^oods after attectin<; a policy of insurance upon them, and l)efore the loss, cannot sue upon the policy : except as a trustee for the assignee in u case where the DALBY V. INDIA AND LONDON LIFE ASSUKANCE CO. 1555 policy is lianded over to him upon the assignment, or there is an agreement that it shall be kept alive for his benefit. [On the other hand the insurable interest of the assured is not determined by his parting after the loss with the property insured, for he may sue as trustee for the person to whom he has assigned it, together with his interest in the policy, SparJces v. Marshall, 2 Bing. N. C. 761. As to where a trustee may sue and what he may recover, see Ellsworth v. Alliance Marine Insurance Co., L. R. 8 C. P. 596 ; Collinriridcje V. Royal Exchange Assurance Corporation, 3 Q. B. D. 173. Where a contract of sale of property insured contained no reference to the insurance it was held (James, L. J., dissenting), that the vendor who on the destruction of the propertj^ by fire before payment of the purchase-money recovered the amount insured did not receive it as trustee for the purchaser and could not be compelled to hand it over to him, Rayner v. Preston, 18 Ch. D. 1, 50 L. J. Ch. 472. By 31 & 32 Vict. c. 86, the assignee of the policy is empowered to sue in his own name where any policy on ship, goods, or freight has been assigned, " so as to pass the beneficial interest in such policy to any person entitled to the property thereby insured." In Lloyd v. Fleming, L. R. 7 Q. B. 299, it was held that the assignee of a policy " duly assigned," after loss, might under the above provision properly maintain an action in his own name on the policy; and see North of England, &c., Co. v. Archangel, &c., Co., L. R. 10 Q. B. 249. The Judicature Act, 1873, 36 & 37 Vict. c. 66, also contains wide provisions for transferring to the assignees of legal choses in action all legal rights and remedies in res^ject of the same, see s. 52, sub-s. 6. Though where property insured lias been destroyed by fire after a contract of sale, the unpaid vendor, while retaining his right to compel payment of tlie purchase-money, can nevertheless before it has been paid enforce his claim against the insurers, Collingridge v. Royal Ass. Co., supra, the latter who have so i^aid will l)e entitled to recover back from him after payment by his purchaser an amount equal to the sum recovered b}^ him under the insur- ance. For the contract of fire insurance being one of indemnity the insurers are not merely subrogated to all rights of action of the assured whereby his loss may be diminished, but are also entitled to the benefit of anything which the assured has received in reduction of the loss, provided it was due to him as of right and was not merelj' bestowed as a gift, see Castellain v. Preston, II Q. B. D. 380, 52 L. J. Q. B. 366; distinguishing Brirnand v. Rodocanachi, 7 App. Cas. 333, 51 L. J. Q. B. 548. See also Darrell v. Tibbitts, 5 Q. B. D. 560; 50 L. J. Q. B. 33; Marine Insurance Co. v. China Transpacific Steamship Co., 11 App. Ca. 573. Another eff"ect of the I'ule that insurance other than life insurance is a con- tract of indemnity is that] if there be two insurers of the same subject- matter, and one of them pays the loss, the other is discharged, Morgan v. Price, 4 Exch. 615. The rule, however, is [when applicable] subject to a qualification which applies to all cases of valued policies, namely, that the parties may agree upon a merely arbitrary estimate of the value of the subject insiired, by way of liquidated damages ; and this estimate will, in the absence of fraud, be the measure of the liability of the insurer. See Irving v. Maim- ing, 6 C. B. 391 ; ^Barker v. Janson, L. R. 3 C. P. 303. The effect of this rule as to the valuation in a policj', combined with the other as to insiirances being a contract of indemnity is, that where an assured has been reimbursed, either by payment of another policy or otherwise, the amount received goes in reduction 2^i'o tanto of his claim, and if it amounts 1556 GODSALL V. UOLDKICO. to the vnliidtion in tlu- policy, it cxtiiiKiiiHlu'ii tlu* ilulin. On tiiiM principle was based the decision in] Irriiuj v. Uir/mrdson, 1 M. i. Hoh. I5.t. [Then*] tlie defendant had insured Tor 170th jHilirirs at ;!IMX)/. : he received botli sums, the Alliance not l)ein;j, wlien lliev paid, awaro of the former insurance. 'I'he Alliance afterwards brought an action to recover l)acli 70<>/., belny the excess ttf the amount paid ab«(Ve the value declared, anil Lord Tenterden helil them entitled to recover, the defendant beins; l)ound by tlie valuation in the policy, though the vessel was really worth ^700/. [It Is true that] In Iiuu»jirUl v. linrnrg, 4 Camp. 22H, where the valueH declared were CAHM. in one policy, and M<»00/. In another; the Insuretl was liermitted to recover GOO/, upon the fonner policy. thou:;h he had already recovered (JiXHj/. on the latter, the real value Ik-Iuk s.Vn*/. [It is however submitted that Itnusjlftil v. Ilnrum, which was d(>ubted In Irrhnj v. lUrhnnl- »<>H, must be con>iiden'd as overruh-*! by llniri- v. Ji>ne», I H. A ('. '{\'i. W'l L..I. Kx. i;{2. In that «a.se the action was bron;;ht on a policy of Insurance f<)r 24(K)/. eflecled on a ship valued at \\'1K*M. The ship was Insun'd by other policies, in one of which the value was llxetl at 5U0l)/. On these other policies the |)lalntit1'had received 312(>/. \'^». M., and he wom held entltleil to riH'ovcr oidy the ilitt'erence between that sum ami 32(H)/., the value In the policy sueil upon. In \i>rth nf lluiil'iml /nsurniirf .{ms. v. AnnMtnnnj, L. U. .'» (j H. 244, a ship which liad been insured in a valued policy for (;s\ired In respect to the In- terest insured; where therefore a policy was ellecteil on :tt',o bales of cotton, lost or not Ii>k(. at and from Bombay to London, it was lu-ld the assured miyht recover fi>r dama;ie to the j;oods fnun perils of the sea during; the voya;ie, although such damaije had been snstaiiietl l»efore the purchase of the jjoods by the assured, it not appearing that the ijootls had been purchased an dam- aged goods, Sutherland v. Pratt, 11 M. & W. 296. [It must be observed that the 10 Cieo. 2, c. 37, does not apply to fon-ign ships. They were onutted from its provisions. It Is said, owing to the dilll- culty of bringing witnesses from abroad to prove interest. Insurances on foreign ships are therefore valid, even though there is no interest, provided the policy appears on the face of it to be a wager policy; see 'JJtfllKXifnn v. Fletcher, 1 Dougl. 3I.">; Cranfiird v. Hunter, S T. R. 13; Lucena V. Craufurd, 3 B. i P. 101; and Cousins v. Xanles. 3 Taunt. 512.] The principal case settled the English law, as to the nature of life insurance, and distinctly held that a policy of life insurance is not a contract of indemnity merely, and that if the insurer DALBY Y. INDIA AND LONDON LIFE ASSURANCE CO. 1557 te an interest in the insured at the time the contact .™le he can recover in the event of a loss; Godsal v Boldeio 9 tst 72, was overruled by the pnucipal case, only m respec to tLl. rule concerning the insurance of lives, and is neveit leless osotn Witt the' aw both in England and America, relating to fii^ and marine insurance, in so far that the decisions, with a ft exceptions, uniformly maintained the F^»f 7' /^ there must be an interest in the insurer, both at the time of the inception of the contract and at the time of the loss. Ilthouch wager policies seem to have been recognized as vahd n Englaifd before the 19 G. II. c. 37, they never have Zeno recognized in the United States, except m the state of New Jersey, and in a few early cases in the state of New Yoik. I. As to Marine and Fire Inmratiee. (a^-) wager policies. -In Howard .. Albany Insurance Co., 3 Den 8M, the court defines a wager policy as follows : " When he i^surei has no interest at stake, the policy is a mere wag^i where one party stakes the sum insured, and the othei the e i: pall. I the happening or not ^^^VV^;;^^^^^^ event " Wager policies were sometimes reluctantly ^"PPO^t''^ ' rjihel ... Church. 2 Johns. Cas. 333, where it is held tha a su™ having insured the profits to be made on --goj^jj was to be brought by a certain ship, when in fact the ship C!ht no carlo at 111, could not recover the premium w^nch he td paid, Kent. J., said. "I consider this a wager pol c , t J a nier; betting on the return of th. ship, ^^ if she lad not returned, in consequence of any P-''! -^^^f ^^ '^ policy the plaintiff would, on its production, have been en poiicj, iiic 1 „,;*liniit raovino- any interest or titled to the sum insured, . . . '"™°.'^* P'°™= ",/„ p ■ ,4,. coods on board." See. also. Clendin.ng v. Church, 3 Cai. 1« , lulil .. Ocean Ins. Co.. 6 Cow. 318; See, however, fcr X^ Z l^!iLor.y is .aias. wage, policies - With the exception of the cases above cited, *>- ^'ee-ons are rnu- formlv a-ainst the maintaining of an action on a wage. S In Pritchet .. Ins. Co., 3 Yeates 458, apparently S t Le in this country where a wager policy -^^^^ court says "At the common law, a person might have insuie vXriny interest. The system of 'f -^^ ° "f ;;7j dictated the act of 19 Geo. II. c. 37, has been adopted by oui 1558 DALHY V. INDIA AM» LONIM>N LIFK ASSl'ltANrK rO. courts." In Atnoiy «'. (liliiuiii, J M.is«.. 1, tin* j.i.umiit •ii- (It'UVortMl tn show that thr iiolit y was a wa^criiij; |H»liry, and that, as sucli, it was valid; thu cimrt, while holding timl thu policy was a policy of interest and not a waj^erin^' |M)li(V, t«Mik occasion to say, " It wt>nl«l seem a disgraceful (Mcujalion of the courts, to sit in judgment In-tween two jramblent, to decide which was the l)etter calculator of chances, or whi«di tiie more cunning' of the two." Ami 1)V Sidi,'wick, .1., *• This [as to a waj^er policy] im a very important (|instion, ant>en produectl, and I Iwlicvo none can he producecl. We must, therefore, deiide this on gen- eral principles of justice and good policy. The very fonihlo reasons set forth in the preand)le of the ID (Jeo. II. e. !}?, to which I have hcfore referred, apply ecjually t«> this and every other civili/c(l and well-goveruiMl commercial I'ountry. Whether that statute extended to this country or not, is a (luestion not necessary now lo he determined. I»ut if it were, and we should iind no precedents in our own courts to overrule us, I should Ik- [)ri'i)aieil to say that, lus wager policies are injurious to the morals of tile citizens, tend to enct)urage an extravagant and |>i?culiar, hazardous speught ni^t to receive the «()untenan«'e of this court." See Adams r. I'cnn. Ins. Co., 1 Kawl. '.'7: Wilson r. Hill, 3 Met. t'.t'); Howard r. Alhany Ins. Co., :5 Den. 'M)\ ; Sawyer v. Mayl.ew, ol Me. :^08 ; IValxuly i-. Wash. Ins. Co., :20 Harl). 1330; Freeman r. l-'ulton Ins. Co., 38 Barh. 217; Tallman v. Atlantic Ins. Co., 'Id How. Vv. 71: Murdock r. CluMiango Ins. Co., 2 Comst. 210 ; Hone r. Mut. Ins. Co., 1 Sandf. 137 ; Kagle Ins. Co. V. La Fayette Co., 9 Ind. 443 ; III. Mut. Fire Ins. Co. v. Marseilles Mauf. Co., 1 Gil. 230; Gilbert v. N. Am. Ins. Co.,*23 Wend. 43; ^Etna Ins. Co. v. Kittles, 81 Ind. 96; Sweeny v. Franklin Ins. Co., 20 Pa. St. 337 ; 3 Kent's Com. 371. And even where two tenants in common were jointly insured against fire, but one of them had assigned his interest in the premises to the other, it DALBY V. INDIA AND LONDON LIFE ASSURANCE CO. 1559 was held that they could not maintain a joint action on the policy ; Murdock v. Chenango Co., 2 Comstock 210 ; while it is necessary that the insurer in order to recover upon his policy, must show an interest in the subject of the insurance, the mere fact that the policy exceeds in amount the actual loss sus- tained, would not necessarily cause the policy to be construed as a wager ; Franklin Fire Ins. Co. v. Vaughan, 92 U. S. 516 ; De Longuemere v. The Phcenix Ins. Co., 10 Johns. 127. And where there is a disparity between the estimated value of the property insured, and its actual value, in the absence of fraud, the plaintiff may recover the full amount of his policy ; 1 Sumn. 451 ; Clark v. The Ocean Ins. Co., 16 Pick. 289. In the latter case the court lays down the general rule, that if the insured has some interest, and the valuation is fair, and made with a view to an indemnity and not for a wager, the court will not open it, noi* set it aside on account of an over estimate of the interest at risk. In Coolidge v. Gloucester Marine Ins. Co., 15 Mass. 341, where the value of the subject of the insurance was uncertain, it was held that the valuation should not be set aside, although it greatly exceeded the actual value ; and when the valuation is made by the insurer, he is, in the absence of fraud, esto})ped from disputing it, and is liable for the value fixed, although the real value of the loss is less than the value insured ; Clark v. The Ocean Ins. Co., 16 Pick. 289 ; Atlantic Ins. Co. V. Lunar, 1 Sandf. Ch. N. Y. 91 ; Forbes v. The Manfg. Ins. Co., 1 Gray 371 ; Akin v. Ins. Co., 16 Martin (La.) 661 ; Lover- ing V. Merc. Ins. Co., 12 Pick. 348 ; AVhitney v. Amer. Ins. Co., 3 Cow. 210 ; Davy v. Hallett, 3 Cai. 16 ; Fuller v. Boston, &c., Ins. Co., 4 Met. 206 ; Pritchet v. Ins. Co., 3 Yeates 458 ; Gardner v. Col. Ins. Co., 2 Cr. C. C. (U. S.) 473 ; Alsop v. Com. Ins. Co., 1 Sumner 451 ; Carson v. Mar. Ins. Co., 2 Wash. C. C. (U. S.) 468 ; Marine Ins. Co. v. Hodgson, 6 Cr. (U. S.) 206 ; Patapsco Ins. Co. V. Coulter, 3 Pet. (U. S.) 222 ; Griswold v. Union, &c., Ins. Co., 3 Blatch. (U. S.) C. C. 231 ; Rowland v. Ins. Co., 2 Cr. C. C. (U. S.) 474. See Wolcott v. Eagle Ins. Co., 4 Pick. 429. (6) Insurable interest. — The interest need not be that of a legal title, but may be such only that the insured is pecuniarily inter- ested in the preservation of the subject of insurance. In Car- ter V. The Humboldt Ins. Co., 12 la. 287, the plaintiff was held entitled to recover on a policy which he had effected to protect his mechanic's lien on a hotel and the court in that case says: 1!JG0 I»ALl:V V. IMUA AND l.(»Nli<»N I, III! ASSIMtANrK CO. "The priiicijnil cjiu'stion is, wlinlui .i in'i ii.iini > mn i«. an insiuiiblt' iiitcii'st. Insuiaiuf is a (MHitniit (»f iii(li'iiiiiity with it j)ers()n who has an inlfirst in thf prustTvatioii of j)io|)erty, or a limitfd (|U.ilili(y its immediate and dirrrt idTi-ct a |MM-uniary h»ss." See Franklin Ins. Co, r, Coiites, 14 Mil. l*H'» ; Proteetion Ins. Co. r. Hall, 1.") 15. Mon. (Ky.) 411 ; Kohrkuh r. (M>rnianiii P'ire Ins. Co., i\2 N. V. 47; Sansom r. Hall, 4 Dall. 4;V.»; Ins. Co. v. liaiini,', l!0 Wall. l.')t»; Fenn r. New Orleans .Mnt. Ins. Co., 58 (Ja. oTS; Kohrhaich r. .Klna Iiis. Co.. 1 T. \ C. ( N. V.) 'Mi\K A eommission nu-rchant has an insurable interest in the Ljoods ("onsi^ned t<» him; or any pei'son having |M)ssessi«»n under a contract that may afl'iud him profit; KoliinsAn r. N. \. Ins. Co., - Cai. 3 ')7 ; Kon^duii-st r. Star Ins. Co., l'.» la. .'5«»4. So with warehousemen, carriers, and Ixiilees of pM>ds where a Umm would pecuniarily aft'eet them ; Savage r. Corn Ins. Co., 4 Hikhw. 1 ; atVnnicd :'.•! X. V. T..').'), \'2 Harh. ;V.>.') ; Putnam v. Mere. M. Ins. Co., .") Met, :is»;; French v. Hope Ins. Co., ir. Pick. Hl»7. So with a shi'iitT in j^oods he seizes; White v. .Madison, 2t> N. ^. 117: Warren r. Fire Insurance Co., Ul la. 4«J4. .\n e(|Mitai)lc intcii'st is an insurahle interest; Swift r. N't. .Mut. I'irc Ins. Co.. Is \'i. 'M)'t; where it was held that a |K)liey, i.ssued t(t one who had po.s.st'.ssii>n of real estate under a defective duetl, hut who was so situated that he could com|Md in e<|uity a valid eunvi-yance from the holder of the lejjal title, was valiil. See Curry v. Com. Ins. Co., \i> Pick. ').S/». Kven a tres|)asser, it seems, has an insurahle interest, which cannot \n; disputed hv the insurance company; Mayor, &e. v. Brooklyn Ins. Co., 41 liarh. 'I'M. A nmrtga^ee may insure his nmrt^'a^e interest, thouj^h prohahly not U-yond it ; Davis v. (^uiney Mut. Fire Ins. Co., 10 Allen il:{; H.dhn.ok v. Amer. Ins. Co., 1 Curtis C. C. 103; Fox c. Phienix Ins. Co.. ."i'J .Me. 333. A inortgaj^or may insure his property to its full value, whether the mortgage was made Ind'ore or after the poliiy ; French »•. Kogei-s, 1»> N. H. 177; see Carpenter r. Prov. Ins. Co., 1») Pet. VX'*; and even if his equity of redemption has l^een seized on execution ; Strong r. Manf. Ins. Co., 10 Pick. 40 ; and .so long as an equity re- mains in luni. even after foreclosure until tlie title passes. DALBY V. INDIA AND LONDON LIKE ASSURANCE OO. 1561 Stevens v. III. Iiis. Co., 43 111. 327. A mortgagor and mortgagee may each insure the same building, and their [)articular interest in the property insured need not be described ; Traders' Ins. Co. IK Robert, 9 Wend. 405; Strong v. Manf. Ins. Co., supra; Curry v. Com. Ins. Co., supra; Allen v. Franklin Ins. Co., 9 How. Pr. 501. Conveyances in the nature of a mortgage leave an interest in the grantor sufficient to support a policy of in- surance ; Holbrook v. Amer. Ins. Co., 1 Curtis C. C. 193 ; Rus- sell V. Southard, 12 How. 139 ; Tittemore v. Vt. Mut. Fire Ins. Co., 20 Vt. 546; Higginson v. Dall, 13 Mass. 96; Gilbert v. No. Am. Ins. Co., 23 Wend. 43 ; Bartlett v. Walter, 13 Mass. 267 ; Lazarus v. Com. Ins. Co., 5 Pick. 76. A vendee in posses- sion under an executoiy contract to purchase has an insurable interest ; Shotwell v. Jefferson Ins. Co., 5 Bosw. 447 ; Draper V. Com. Ins. Co., 21 N. Y. 378 ; Col. Insurance Co. v. Lawrence, 2 Pet. 25; vEtna Ins. Co. v. Miers, 5 Sneed (Tenn.) 139; Ayres V. Hart. Ins. Co., 17 la. 176 ; McGivney v. Pluenix Ins. Co., 1 Wend. 85. A person liable as indorser or as a bondman for safe keeping of property has an insurable interest to the extent of his liability ; Insurance Co. v. Chase, 5 Wall. 509 ; Russell V. Union Ins. Co., 4 Dall. 421 ; Fireman's Insurance Co. v. Powell, 13 P>. Mon. (Ivy.) 311 ; Strong v. Man. Ins. Co., 10 Pick. 40; Williams v. Roger Williams ins. Co., lOT Mass. 377. Also, tliosc generally liable by statute, or by common law, or by contract, for the safe keeping of })ro|)erty of another, may })rotect themselves by insurance ; as railroad companies ; Eastern R. R. Co. v. Relief Insurance Co., 105 Mass. 570 ; Monadnock R. R. Co. v. Manf. Ins. Co., 113 Mass. 77 ; com- mon carriers; Chase v. Wash. Ins. Co., 12 Barb. 595; bailees having the goods of another for repairs or manufacture ; Getchell v. yEtna Ins. Co., 14 Allen 325. A mechanic's lien constitutes an insurable interest. See 12 la. 371, supra ; Frank- lin, &c., Ins. Co. V. Coates, 14 Md. 285 ; Protection Ins. Co. v. Hall, 15 B. Mon. (Ky.) 411 ; Merchants' Insurance Co. v. Maz- ange, 22 Ala. 168. (c) Rule of damage and adjustment of loss. — 111 the absence of agreement as to value of interest, the value will be limited to simple compensation for actual loss ; lirinley v. Nat. Ins. Co., 11 Met. 195; and after the compensation is received, no matter from what source it comes, further action against the Ifiti-J DALIIV V. INIiI.V AM» l.nSImS l.Ui: ASS U It A NT K TO. iiisuivr is piL'tlutleil ; C'laij,' r. Muig;iti«)y«l, i ^ •ai.-, Inl. >i-e Wood on Kile liisiiiunci', tliiip. xv. (; La/arus /•. Cuiii. Ins, Co., ."> I'iek. 7»» ; Stronjj r. Insuranee Co., 10 I'i.k. 40; .la.k.son v. .Mass. .M. F. Ins. Co., 2:5 I'iek. 41>^; lloojur r. Hudson Kiv«'r Ins. Co., 1") I5arl». 41:5; s. e. atVirmefl IT N. ^ . 124. Hut see the eiuse of Coekerill i'. Cineinnati Ins. ( .... It; (). 14s. II. .Ix to Lift- InHumnrf. (rt) Interest In the Insured Is necessary. — It is well settled that the insurer in a life poliiv niu.st h.ive some interest in the in- sured. In Sini,deton v. St. Louis .Mut. Ins. Co., GtJ .Mo. 63, where a ui'phew insured the life of his unele, it wa.H held that the plaintiff had not an insurahh- interest in the life and eouUl not reeover ; Ivusr r. Mut., vVc, Hrnetit .V.ssn., 2:5 N. V. /iltl. See (Juardian Ins. Co. v. H«>i,Mn, SO 111. :5') ; iJenefit Assn. r. Hoyt, 4(; Mieh. 47:5. Sim- Clark v. Alh-n. 11 K. I. 4:5H; Trenton, .Ve., Ins. Co. V. .Johnson. 4 /al»r. ')7ti. (A) As to the nature and extent of the interest. — • The law seems well setth-d that in eases of tire and marine insuranee the interest of the insurer in the sidijeet of insuranee must Ije such that it can be estimated in dollars and cents ; in other words, that in these cases the policy is a contract of indemnity; but in cases of life insurance, while it seems that the interest of the insurer, or of him who seeks to enforce the contract, must be, in a certain sense, a pecuniary interest, the measure and interpretation of the pecuniary interest is of a much wider DALBY V. INDIA AND LONDON LIFE ASSURANCE CO. 1563 scope ; in other words, a policy of life insurance is a valued policy, and if the relationship between the parties is such as would support a gift or grant at common law, so that the im- putation of a wagering intention is not prima facie raised, the contract can be enforced ; Lord v. Dall, 12 Mass. 115 ; Loomis V. Eagle, &c., Ins. Co., 6 Gray 396 ; ^tna Life Ins. Co. v. France, 94 U. S. (4 Otto) 561 ; Grattan v. Nat. Life Ins. Co., 15 Hun 74; Hoyt v. N. Y. Life Ins. Co., 3 Bosw. 440; McKee v. Phoenix Ins. Co., 28 Mo. 383 ; Eq. Life Assurance Soc. v. Pat- erson, 41 Ga. 338 ; St. John v. Amer., &c., Ins. Co., 2 Duer 419. See Stevens v. Warren, 101 Mass. 564. A creditor has an in- surable interest in the life of his debtor to the amount of the debt ; Morrell v. Trenton Mut. Life & Fire Ins. Co., 10 Cush. 282; Rawls v. Am. Life Ins. Co., 36 Barb. 357, 27 N. Y. 282. So the debtor may insure his own life to an amount beyond the debt for the benefit of his creditor, the balance over the debt enuring to such parties as the debtor may designate ; Am. Life, &c., Ins. Co. V. Robertshaw, 26 Pa. St. 189; and it has been held in New York that one member of a firm, who furnished the capital in the business, could insure the life of his partner on the ground that the death of that partner would imperil the capital invested ; Valton v. Nat., &c.. Assurance Soc, 22 Barb. 9 ; affirmed, 20 N. Y. 32. It seems to be well settled that where one has an expectation of pecuniary profit through the execu- tion of a contract which the death of one of the parties would defeat, he has an insurable interest in such party's life. And I'j seems to be immaterial, so long as the profits anticipated are necessarily uncertain in amount, what amount is insured. Such a policy is, to this extent, a valued policy, the amount of the jjolicy being an agreed statement of the amount at risk, which cannot afterwards be denied by the company; Bevin v. Conn. Mutual Life Ins. Co., 23 Conn. 244; Morrell v. Trenton, &c., Ins. Co., 10 Cush. 282, supra ; Hoyt v. N. Y. Life Ins. Co., 3 Bosw. 440 ; Miller v. Eagle, &c., Ins. Co., 2 E. D. S. (N. Y.) C. C. P. 268. See Forbes v. Amer. Mut. Life Ins. Co., 15 Gray 249. (c) Continuity of the interest. — The principal case settled the law in England, that if an insurable interest existed in the in- sured at the inception of the contract, the provisions of the statute, 14 Geo. III. c. 48, have been complied with, and it will not defeat his risrht of recoverv if that interest is lost 1504 I».M.l:V V. INDIA AND LmNDmN LIKK A»»IUAN<'K CO. Itcfoiv the (It'iitli iiisiind ;i;^Minsi occurj*. Wh»'tlu*r this rule ol> liiiiis in tliL' I'liitrtl Slates lias la-en (louhtt'tl ; Miit. Lite In?*. Co. t'. Wager, 27 IJaib. .■}.')4 ; Kennedy t'. N- Y. Life In.surunce Co., 10 La. An. H()'.>; hut wliile it lias not Ix-en distinclly luljudieated that the insurahle interest need exist only iit the ineeption of the contract, there are dicta which whow the favor with which this view that a continuing interest in a life policy is not neces- sary, is regarde limi 14, Hupra ; X'alton r. Nat. Loan l-'tiiid Lif«« .\.«wn. Co., -Ill Hari>. (N.Y.)U; St. .John r. Am. .Mut. Ins. Co., l:i N. Y. .')! ; Conn. Ins. Co. v. Siharfer. '.>4 C S. 4'»T. .\n) 1 A.tk. 228. 1565 1. ',(;»; l:(»SK V. HAUT. ()l»sfivr(l, thiit th«' i)iin \i. ioii>, iii.i>iiiutlj us it wml to destroy the hiw of lien. Gibbn, ('. .1.— Yoii are aware «if the ea.s«* of (Sreen v. Far- mer {a^, wliich, hy-the-l>y, I may say has Ijeeii frenueiitly din- re|,'ar(hMl. In a case in which I had the brief, and in which case Lord Ashfmrfon was, a s|H'cial custom for dyen* to Imve their 1,'cncral lien was proved; and notwithstantlin^ Grren v. Fiirnur, that custom was acted upon in that ciise, and has U*en many times since recoj^nised. The case Ar pnrtf lieezf is cer- tainly contradictory to the case Kr pnrtf O.-k'-mhu (ft), sulwe- (piently decided. The (juestion is of the utmost importance, and we are quite «)pen to hear it di.sciis.scd. Take your rule. Kule nini granted. In the f(»llowinp Trinity term cau.He was shown by I.ttiK, Serjt.. who conten»led that Lord Utirdtrickf, in Ex parte Or/cfiiilen, rcco^Miised by Mittmjitlii, ('. .L, in itrfen v. Farmer, had much narrowed the extensive construction whi M. & S. 180. Co. B. L. 53(), 7th ed. ROSE V. HART. 1567 Hodson (a), and both by Gibbs, J., in his statement of his opinion at the trial in Oh've v. Smith (^), and subsequently, by the whole court, in their final decision), is most strong for the defendant ; but if the case Ux parte Oekeiiden, in which no judgment was given, is to be upheld against the case JEx p>cirt^ Deeza^ confirmed over and over agam by subsequent decisions, then it is admitted, that the defendant cannot succeed. It is true, that this is an action of trover, and no case of this precise nature has been decided; but the plaintiffs, by their choice of action, can never prevent the defendant from having the benefit of his statutable lien. In Jennings v. Cundall (c), the plaintiff shaped his case in tort, in order to deprive the defendant of the benefit of his infancy ; but the defendant pleaded his infancy, and it was holden a good plea. In Ex parte Deeze, Lord ITardwicke says, " It is very hard to say that mutual credit should be confined to pecuniary demands, and that if a man has goods in his hands belonging to a debtor of his, which cannot be got from him without an action at law or bill in equity, it should not be considered a mutual credit." " There have been many cases which the clause of the Act has been extended to, when an action of account would not lie, nor could this court, upon a bill, decree an account." These strong expressions acquire double strength when the judgment of Mansfield, C. J., in Olive v. Smith, is referred to. " I should have thought that the words of the statute meant only money transactions; but if the extension of mutual credit be, as it has been contended, a mistaken doctrine, the mistake is so deeply rooted that it would be rash to overturn it ; and there is a great deal of justice in the determination at which, not only the Court of King's Bench, but the Court of Chancery, have arrived on this point." This is hardly saying less, than that the statute extends to cases of trover, and the whole judg- ment lays down the rule of extension on the broadest ground ; a rule resting as much on sound law as it does on justice. (^Burrough, J. Is it the true meaning of the Act, to extend the doctrine of mutual credit to cases where the goods are not ultimately to be turned into money ? — Dallas, J. Where the goods are specifically to remain as goods?) Lord Rardwiche, in Ex parte Beeze, expressly goes on that ground. {Burroiigh, J. In Lanesborough v. Jones (d), which was a decision on stat. 4 (a)4T. R. 211. (c)8T. R. 335. (h) 5 Taunt. 58. {d) 1 Peere Wms. 325. l')68 iiosK V. HAiJT. Anne, c. 17, s. 11, the juil^Mnt-nt of Lord Chantellor Cowper Wi-nt on the ground thiit then; WiLs ii phiin nuitiuil credit.) In Fi'iwh V. Fen/i, if trover h;id \h'vu hrou^lil, it nm.Ht have U-eii brou«^ht on the same grounil on whicli it iiuxy Ixj brought here. { litin'oui/h^ J. No. In French v. Ffnn, the |Harl.s were heiit out on an express contract to Ixj sold, and tliou^h the saih* wsis after the bankrupt* y, tlie contract wiw before the Umkruptcy. ) In Smith V. //'*vhi«h it received from the eii.se fJr partf Orkemlen : and i4>ply>ng tlie diK'triiie to the case iK-fore them, they teeted fioni the claim of ('ox's assiijnees l»y the ilau.se o( unitual credits. Fniu'fi V. Finn h;us U-i-n followed hy a string of eaiLse.s, run- ning throuj;h a periotl (»f more than thirty years, all professing; to depeml upon it, some of them eonUiining t)ie fullest approUi- tion of Ex parte Ihfze from tin? Itencli. Whatever I mi<;ht think of tiie origimil decLsion, I could not persuatle myself t») hreak in upon a clas.s of eases so lonj^ estab- lished ; aneak- \\v^ for myself, I should U* ready to follow it, rather tiian over- turn all that lias Ix^-eu .settled Upon this subject for such a leni,fth of time. I5ut it is tirst to be considered whether these ciises nuiy not be supported by a construction of tlie statute wliieh will not go to that extent, and will leave the opinion of Lord Hardwicke in the case of Kx part*' Uikfrnhn untouched. liy the iSth .section of ;'> (J. '1, e. 'M), it is enacten, at any tinu' liefore such |>ei*son Ijecanie bankrupt, the .said commissioners, or the maj«>r |»art <»f them, or the assignees of such bankrupt's estiite, shall state tlu' account l>etween them, and one debt may Ih) .set against another; and what shall ai)[)ear to be due on either side, on the iKilanee of such account, and on setting such dehtx against one another, and no more, shall be claimed on either side respectively. " Something more is certainly meant here by mutual rn-ihtK than the words mutual (h-bfn import; and yet, up(»n the linal settlement, it is enacted merely that one tlcht shall Ix? set against another. We think this shows that the legislature meant such rnilifs onlv as must in their nature terminate in ROSE V. HART. 1571 debts ; as where a debt is due from one party, and credit given by him on tlie other hand for a sum of money payable at a future day, and which will then become a debt ; or where there is a debt on one side, and a delivery of property with directions to turn it into money on the other : in such case the credit given by the delivery of the property must in its nature terminate in a debt the balance will be taken on the two debts, and the words of the statute will in all respects be complied with; but where there is a mere deposit of property, without any authority to turn it into money, no debt can ever arise out of it, and there- fore it is not a credit within the meaning of the statute. This principle will support all the cases from French v. Fenn to Olive. V. Smithy which is the last that has occurred. In French v. Fenn there was a debt due from Cox to Fenn, and Cox entrusted Fenn with his share in the pearls for sale^ which when sold would constitute a cross debt for the produce from Fenn to Cox. In Smith V. Hodson (a), the defendant had entrusted the bankrupts with his acceptance, which he was liable to pay, and which when paid would create a debt from the bankrupts to him for the amount. In Parker v. Carter^ Co. Bankrupt Laws, 548, and Olive v. Smith, the bankrupts were indebted to the defendants, and the bankrupts delivered policies of insurance to the defendants to collect losses under them, which, when collected, would make the defendants their debtors for the amount. So, in all the other cases which have occurred upon this subject, it will be found, that that which has been allowed as a mutual credit has always been of such a nature as must terminate in a cross debt. To this extent we think the statute may be carried, but no further; and we follow the final opinion of Lord Hardivicke, in determining that the delivery of these cloths to the defendant, for the purpose of being dressed, does not form an article of mutual credit in his favour within the fair construction of the clause relied on. The fostea must therefore be delivered to the plaintiffs (5). (a) 4 T. R. 211. son v. Burton, 2 B. & B. 89, particu- (6) Dallas, J., was absent from ill- larly the judgment of Burroughs J. ; ness, but concurred in this judgment, and, in p. 96 of that report, for ex relatione Gibbs, C. J. See Samp- " 1818" read " 1817." l'>72 llOSK V. llAltT. This Is the Ifading casi- on tin* suf»J«'<'t "f f»m/m/i/ rroiUt. Thr prior drcl«- ItiiiH \vi'r«-, as will Imvf tn-i-ti seen In tin- t«>xt, at varlam-)* with oiir anothrr; mill ihi- ruh' e^Hluhllshi-tl In /»'«»*»• v. litrt liaM fver »lin'«" U-rii r ikiiImiI and actcil upon. It wa.s ilftt-nnlnod after niiieh conHtderatlon, for Hiirroiiich, J.. states in Sainpnon v. HurtoH, 'i It. &. B. Ml), that the judi;(>M luul iirveral incei- in:;s upon it. Till- ilnrtrlne of s«-t-j, 'i Veni. 117; [and the note to the (iitruftt linlil Mininij, dr., Co. v. Sutton. Wi \.. J. y H. 4'.> ) The piillry of allowint; n Hrt-olT hetwern moneys diif to and from tin* Itanknipt's rMtate, U prrelsely tiie same as that In which the law relative to »l>>i'iuigf in tniHsitu originated. It Is to prevent one man's debts from iMdntc l**hl with another man's money, which would take plaee If a man, lM>lnK at once the debtor and creditor of tlif linnkrupt. wm- foree«l to /xiy the whole of hiM drbl t«> the estate, and to rt-rriir only a dl\idcnd. The enactment In the statutt' of .\nne wa^ fo||owe«l by a similar one In tin- temporary act of 5 (i. 1, c. II : then with improvements by ."> (i 'i, e. :io, h. 2m N'oiit* of these acts, however, went further than to allow a set-ofT u|>on the a<'«"ounts existinj; itt ihf limr of thr tu^nkrui^rif. The 4«» (i ;i. e. l."l»». it 3, went further, and exteiuh-tl the rlirht of lU't-oir to cases where the erwllt was jflven within two months of the date of the ritnimlsnUtn, pnivldetl the (MrriMMi icIvInK It had not notice of a prior act of Imnkniptey, or tliat the lianknipt wa* In- solvent, or had stoppeil payment. It was fouml. however, that, even with this extension, cases of ureal linrdshlp o«'curretl. S«*c KintUr v. Iiutt'rtr<>rlh, r> M. vt ('. 42. [.Vfterwurd-* came the •'. (Jeo. 4, i-. l«, s. M, but the enactment wliirli continued to tfovern this Itranch of the law until the paMsIni; of the Hiuikruptcy .Vet, lst;'.», wa.s contained in I*.' A. i:» Vict. c. KX;, s 171, which provlih'd ] — " That where there has bfrn mutual rrrdit given by the luinkrupt and any other person, or where there are mutual debts l)ctweon the banknipt and any other persons, the court shall state the account iK-twcen them, anti «me debt or demand n>ay Ik* set a:;ninst another, nntirithjit'ttnlinij ;/ mnh Imnkruftt b«'fore the cre«llt ;;iven to, or the pear illil imt know timt the bill wuh in H.'s iiaiuls. After Lord lIurilwickL' hud, in AV pnrtf Frfurott, pointed out tlie dlntinclloii between mutual debts anil mutual crfdits, the latter tenn wan fre<|uently relied on, and there wax a struf^fjle to bring within its nieanint; many deniandn which could not possibly have raiiffed within the former term it has In-en seen from the discussion In the text, that in AV y»/r^• l>>'fZf. 1 Alk. 2?m, these words received a very large construction; which was narrowed by l-.x jmrtf Ockftidfu, 1 Atk. 2:U ; and that these cases were followed by a string of de- cisions, beginning with Friiuh v. Ffun, Co. IJ. L., 7th ed. .VU"., a.i». 17>:i, and extending over a period of more than thirty years, during whhh Fr'-mh v. Fenn was the leading case upon this subject. At last, In 1818, Jionf V. Hart was decided, and the rule established which [has ever since prevailed], namely, " that mittiial creditx, within the meaning; of the bankrupt laws, are rreditu irhirh must in thfir nature tmninnt'- in di'fds." And this it is subndtted means, not, as has been contended in some cases, credits which must, t-r necfssitatf rei, terminate in «lebts, l)ut credits which have a natural tendency to terminate In «lebts, not in claims ditTering in nature from a ilcbt. 'I'luis it was settletl in Smith v. Ilodsnn, \ Y . U. 211, that an accommodation acc»'ptance is a rrt-dit. given by the acceptor to the party ac- commodated ; and yet It Is not ri-rtnin to end in a ilebt. for the party accom- modated ought to provide for the bill at maturity, and. if he do, tliere will l>c no tlebt; [ Yalrs v. Ilopjte. t> ('. B. .-)4l ]. The cases between Fr>nrh v. Frnn and Itusf v. Ilnrt were all recognlMiHl by the latter ca.se. and stated by the Lord Chief Justice to Im* reconclleable with, and suj)ported by, his «leclslon. It will [therefore) be necessary to review them bi'fore proceetling U^ the cases subseipient to llnsr v. Hart. The case of French v. Finn itself is well abridged by the LonI Chief .lusth-e In the text, and is well epitomised by the same learned judge, while at the l»ar. In Ills argument in Smith v. Uodaon, ante, p. l;W, so that It Is unnecessary to repeat the facts here at full length. It Is a very remarkable case, and was long the leading decision on this subject; and, excepting the overrule«l cn.se of Fx parte Deeze, anti the later «leclslon of Kasum v. f'atn, post, goes |>er- haps further than any case upon this branch of the bankrupt laws. Smith v. Hodson, 4 T. K 211, is reported at length In this volume. Ix-ing the loadiuf^ ca.se upon another e(|ually important jjolut. .\s far as It bears on the present subject, it was expressly ap|)roved of l)y the court in Ilulinf v. Mut/ijhstnn, 'S M. & \V. ;;(». In Atkinson v. Flliott, I T. It. ;57H, the defenilant sold the bankrupt a parcel of tars for 430/. at six months' credit, for which the banknipt accepted a bill, and afterwards bought another parcel for 230/. on the same tenns. On the first bill becoming due, he gave the defendant two bills on third parties, making together (iOO/., and the defendant undertook on their l)elng paid, to return 170/., it not being Intended to ilo more than take up the bill ac<-epted for tlio price of the first jiarcel. In an action for the 170/.. the defendant was allowed to set ofThis demand for the second parcel of gootls. In Fx parte Boyle, re Shepherd, l.i Aug., 1803, Co. Bank. L.. 8th ed.. .'>71, Lord Cork, to accommodate Shepherd, who was his solicitor, drew four notes, two payable to Nlbbs or order, and two to Shepherd or order, making, in the whole, 981/. Os. Sd. Lord Cork, having been forced to take up one of them before the bankruptcy, and two afterwards, the (piestlon was. whether these payments could be set off against a debt ilue from his lordship to Shep- ROSE Y. HART. 1575 herd's estate. The Lord Chancellor at first thought that the account must be taken as it stood at the time of the bankruptcy, and that the debt could not be set ofl" against the mere liability on which no payment was made till after the bankruptcy : but afterwards his lordship said he had considered the case, and was of opinion, that the petitioner was entitled to set off the debt against the payments after the bankruptcy- That an accommodation acceptance, not paid till after the bankruptcy by the acceptor, could be set off against the estate of the party accommodated, was also decided in Ex parte Wagstaff, 13 Ves. Qb ; and these cases were cited with approbation by Parke, B., in Hulme v. Muygleston, 3 M. & W. 30. In Sheldon v. nothschild, 8 Taunt. 156 ; 2 Moore, 43 ; Otte drew a bill on B. & Co., for iOOl., which they accepted without value. They afterwards owed Otte 236Z. lis. 3d., and drew on him for 163Z. 8s. dd., the balance. This bill they sold to the defendant, and afterwards became bankrupts, the 400?. bill remaining in Otte's hands unpaid. Otte accepted without notice of the bankruptcy, and paid the UV31. 8s. 9d. to the defendant, on which, the assign- ees of B. & Co. brought an action as for money had and received ; but the court held that there was a mutual credit i)etween the bankrupt and Otte, and that, inasmuch as he could have set off his demand on the estate in any action brought against him, the defendant, whom he had iudemnifled, and who stood in his place, might do so also. The next decision is the principal one of Rose v. Hart, which is reported in the same volume with Sheldon v. Rothschild, the Lord C. J. Gibbs, Avho had argued, when at the bar, in Smith v. Hodson, delivering the judgment, which was one of the last pronounced l)y that distinguished judge. This case settled the law upon the subject ; the subsequent decisions turning all of them on the applicability of the rule, promulgated in Rose v. Hart, to partic- ular states of fact. A very remarkable case on this part of the bankrupt law in Easum v. Cato, 5 B. & A. 861, in which the doctrine of mutual credit was perhaps carried further than in anj'' case subsequent to Rose v. Hart. In Easum v. Cato, J. S., being desirous of making a sliipment at his own risk, but not in his own name, represented to the merchants through whom the shipment was to be made, that the goods were A.'s; and procured A. to write to them to insure, and make advances on the goods, which was done. J. S. having become a bankrupt, it was held, that A. might recover the proceeds of the goods, and set off a debt due to himself from J. S. in an action for them by the assign- ees ; vide tamen Young v. Bank of Bengal, 1 Deacon, 622 ; Moore's Priv. C. Ca. 150, a case the decision of which it is perhaps not easy to reconcile with Easum v. Cato. In that case P. & Co. obtained advances from the Bank of Bengal, deposit- ing negotiable securities and giving promissory notes, with an authority to the Bank to sell the securities at the end of three months for their reiml)urse- ment rendering back any surplus to P. & Co., who undertook to make up the deficiency, if an}\ P. & Co. became bankrupts, and the Bank having sold the securities and realised a surplus, the question arose whether under clauses precisely similar to those of the English Bankrupt Act there could be a set- ofi' between it and another independent debt due from P. & Co. to the Bank. The Supreme Court of Bengal (dissentiente the Chief Justice) held that there might; but the decision was reversed in the Privy Council, and the judgment does not purport to be founded on the special promise to repay the surplus, but on the uncertainty at the time of the bankruptcy whether there would IhH) KOSK V. IIAUT. ever be u (Ifl)t capubli- of b»'iiiji si-t olf urisiuj; from the lude uf ''•■• '•- curitlfH. Youufj V. Jidtt/c of Hfnijdl wiis inucli comiiu'iitcU on In Alaager v. l urri> . i_' M. & W. ".">1. In that c-ust; liaron I'arki- plai-os tin* tU-cUion on two f^ruundtt : 1st, tliat thcrt- was no mutual crinlit, as the M'rurlti«-< Iwul l>«<«>n «li*|Hiiilt<*(l with till' bank f'nr a ixirtinihtr /iKrpnue. 2nd, that It was tin- duty of the ussi<;ni't's to rtMlfi-m the paper Immoliatcly, ami if tlu-y IkkI dom' so, no di-bt would liavf iK'cn dm- in rispt-ct of tin* loan. [In Xiiomji V. Chitrtfrfil Hank of India, L. H. ;i ('. 1". 444. tin- ptaintilTs who wt-rr in tin* habit of ilrnw-in<; bills on partit-s in Imiin, and whose pntrticc it was to t'ntrust thi's»' bills to the defendants for the purpose of eolleetion, had executed a doetl of inspe«-torship uniU-r the Hankruptey Art. ]xC,\. At the date of the deed, the plaintitl's were indet)ted to the defendant.s in a Huin of H:(:t.'>/. In an action bmu^iit >iy tiie plidntltts to recover a sum of money, th«' proceeds of l)llls entrusted to tlie defemiants for collecticm, of which a small portion only liad l)cen received by them itefore the K, an ajfreement to pay the banknipt for goods sold prompt two months, or by acceptance, was held a claim against which a debt due j'rotn the bankrupt niiiflit be set otV. The nature and extent of the ndc laid down in Hosf v. Hart are well illus- trated by the two cases of Hose v. Sim.i, 1 H. & .\d. .I'il, and (iihson v. Hell, 1 Biiii;. N. C. 74.S ; in tlie fonner of whi«'h it was held, that an a;;reement to indorse a liill of exchantre did not create such a cre!iMkruptcy oidy as lu'twciu the [truHtec] of the baukiiipt and the th-htor to tin- cstjitc It cannot l>c made avatlahle in an action broniriit l)y tiic i)ankrnpt as tnistrc for a person to wliom lie Iuih assigned Ids (Mjintat)ic intcn-st Itcfurc tlic t>ankru|itcy, lioijil v. .Miimjlrn, n; M. & W. 337. [The provisions, however, of tiie Judicature Act, 187:1 (.'{«; & '-17 Vict. c. GG), and Judicature Act, lrt75 (38 & 39 Vict. c. 77), <). XIX. r. 3. ns to the rljrht of set-(jfl'havc had the otl'ect of rendering set-off In actUms mmh wider than It was fonncrly in bankruptcy. See O. XIX. r. 3] It Is also necessary that the mutual credit should exist at (hf timr of thr hdnkruptrij, [Dirk'nun v. KnntK, (! T. U. .'»7, ] /<«»'/'/ v. .Munijli-it, iihi nnp. [anil see per Martin, H., linUnj v. Ji>hintf)n, L. K. t". Kx. I'si; siiltject however to an exception in the case of secret acts of bankruptcy, for though the section of the present act, like that of the fonner, does not dellne the time for taking the account, it may at all events be taki'U up to the time when the party claiming the benefit of the clause ha.s noth-e of an act of lmnkrupt<-y, EllioU V. '/'nniiitind, 7 .\pp. ('as. 7'.i, 'il L. J. V. C. 1. On the other hand, except in the ca.se of a secret act of bankruptcy, the line as to set-oil* nnisl be drawn at the commencement of the bankruptcy: and, therefore, a cn-illtor of the bankruiit cannot set off his liability on a bill accepted by him w Ith notice of the bankruptcy against his own claiuj on the bankrupt's estate : /« re (tilhupie. Ex i>'irfr liriil, 14 {I \\. I). ;m;3, '2\ \.. .1. t^. H. 'M2. See al.so In rf .1/i7 Ch. 1). .'),s7, '>3 L. .1. Ch. liMts. It was fonnerly held that) no set-off by way of niutmil credit [c. 423; and Lff v. linllen, 8 E. & B. 693, note.] It must be borne In mind, that any demand proveable under the flat might, by the express words of the [G Geo. 4, c. IG. s. ,')i)], be set off. On the otlier hand, a dcmanil could not be set off that would not have been proveable un- der the flat. See Ahh„n v. //»V)ls, .-) Hing. N. C. .•.79. A. If. & C. dissolved partnership, the tlrm owing II. .".1.S91/. I2.<., and .V. owing the Ann G.S17/. 9.i. 8(?.. it was agreed that \. should pay B. & C. the G.817/. 9.«». S trustee could not set off tlie estliuatetl value wlileh had boeu put upon the policy. In h'x part*- Ihirnrii, in re I-tret-sf, U. H. 9 fh. 21*3, which was decided upon the late act, Lord ScllHinie C, fcuartlH hlmMvlf from (■xprcssluj; an opinion upon the etTect of the additional wonU In that cajtr, Harnett & Co. had had business transactions with a trader who iMM-nuie bank* rupt, and nt the time of the bankruptcy the bankrupt oweil Harnett & Co. :'>.i>10/.. and Harnett <& Co. owed th<- bankrupt s.s/., In respect of which sum he had a lien u|>on i;oo*l. set nff against their claim, so as to free the kimhIh from the lien, ami to pn>vt< for the bal- ance ai^alnst the bankrupt's estate. llowevir, In h.r purff JlnHnttil, rt- M'iiitrr, H Ch. I). 225. 47 I. .1 Hkcy .'>2. HaciMi. C .F., put a siunewhat narrower construction on the act. In that ca.He, a contractor failed to carry out his contract. any a contractor «luly substltutoti under the contract. The balance renuilnini; unuseil was sold by aun-ement, and the .sum realised was claimed by the trustees. The employers siumht to Hct off the dama;;es sustained by them throiitfh the breach of contract, contending that thi-rc had been mutual dealini;s between them and the delttor. In respect of which they wen- entitled to the set-otf. This contention the learned judjje overruled, lielni; of opiidon that Inasmuch as the employers aci|ulrt*4l no property I'l the plant, but only a rluht to use It in a certain event, there had not under the circumstances been a dealin;: in respect of the sum realised. In /'tilt V. ./otif-M, H 1^. H. 1). 147. ."il I.. .1. li H. 12H, the Court of Appeal followetl Jinnih v. I/nlchin^im In holdlni; the clause applicable to a claim for uidl<|Uidated ilamaires, and held that such a claim inluht Ix* set ofl* In a coni- luou law action l)roui;ht by a tnistee In ll<|Ul. Iia; .*>l L. .1. g. H. 4t'.:t, It was held that a claim for fraudulent misrepresentation on the sale «>f a chatt«d by a banknipt may be .set off against a claim l»y the tnistee for the price. The s«'t-otr under the .s«'cilon Is not optional but i-onipidsory. and It would seem that the existence of security do«-s not atfect Its operation. AV /utrlr JiiirnPtt, supra; ami see .VcA7;ih»»» v. Arm.strnuij, 2 .\pp. Cas. .'>.11. Sect. 10 of the Judicature .Vet. l«7r>. Imports the nde of set-otf. with the other rules in force for the time beinc under the law of hankniptcy as to debts and liabilities proveable. into the a*lminlstratlon by the court of the assets of persons whose estatt- is iusutliclent for the payment of their debt.s, and into the winiliui; up of companies. See Mt-rseij Steel, Jtc. <.'o. v. Saylor, ;> .\pp. Ca. 4:u.] The history of this head of tlie bankrui»t laws [y extractiu}; it. " The principle," said his lordship. •• which the banknipt laws seem to h.ive had in view, from the earliest times to the last provisie settled between HOSE V. HART. 1581 them, and the balance only payable on either side. That this was the practice of the commissioners of bankrupt, long before any statutory provision on the subject, appears clear from the two earliest decided cases, Anonymous, 1 Mod. 215, before Lord Chief Justice North, and Chapman v. Derby, 2 Vern. 117. The first statute which made any express provision on the subject was the expired statute 4 & 5 Anne, c. 17. By that statute it was enacted in the eleventh section, 'that whei'e there had been mutual credit given between the bankrupt and any debtor, and the accounts are open and unbalanced, it shall be lawful for the commissioners, or assignees, to adjust the account; and the debtor shall not be compelled to pay more than shall appear to be due on such balance.' This provision of the expired statute of Anne is re-enacted in the twenty-eighth section of 5 G. 2, c. 30, with some variation in the expression, that section enacting, that ' the commissioners, or assignees, shall state the account between them, and one debt may be set against another, and Avhat shall happen to be due on either side, on the balance of such accounts, and on setting such debts against one another, and no more, shall be claimed or paid on either side respectively.' This statute continued in force until the 46th G. 3, c. 135, -s. 3, which provides, that where thei'e hath been mutual credit given, or mutual debts between the bankrupt and any other person, ' one debt or demand may be set against the other, notwith- standing any secret act of bankruptcy before committed.' The same language is continued in the last statute, 6 G. 4, c. 16. So that from the earliest prac- tice to the latest provision by statute, the object seems to have been, that the account should be stated, as between merchant and merchant; and that whatever would be in ordinary practice a pecuniary item in such account, should be the subject of set-off." Set-off is the setting up a demand by the defendant to coun- ter-balance that of the plaintiff in whole or in part ; 2 Bouv. Diet. 615 ; Avery v. Brown, 31 Conn. 398, 401 ; Kingman v. Draper, 14 Bradw. 577. It is often called a cross-action rather than a defence ; Mitchell v. McLean, 7 Fla. 329 ; Everson v. Fry, 72 Penn. St. 326 ; Curran v. Curran, 40 Ind. 473 ; Lewis v. Denton, 13 Iowa 441. According- to the common law " mutual debts were cUstinct and inextinguishable except by actual payment or release ; " Commonwealth v. Clarkson, 1 Rawle 291. Although it is stated that at common law " the right of set-off is limited to cases of mutual connected debts, and does not extend to debts, which are unconnected with each other;" Hurlbert v. Pacific Ins. Co., 2 Sumn. 471, 477. The first statute authorizing set-off in England was that of 2 Geo. 2 Ch. 22, made perpetual by that of 8 Geo. 2 Ch. 4. Similar statutes have been j^assed in all or nearly all of the states of the Union. The decisions of the courts cannot be always harmonized, as their purpose is frequently to interpret the statutes. There are main points, however, upon which 158 J UOSK V. IIAKT. there is little or no disa'^ruement. An «*iuly New Jersey statute on set-off is referred to in The C. H. Sanford, '2'2 Fed. Kep. 863. How far the claim must exist. — • It must Ih' due and payahK' at the time of the eomnu luement of the phiintifTs aetion ; IslKTg V. Howden, S Kxeh. Hoii ; Martin v. Kun/.mnlhr, 37 N. Y. 3W ; Henry r. Buth-r, -Vl Conn. 140 ; Robinson v. S.itTord, ')7 Me. 1»I3. An unmatured (h-ht cannot he set off; Whitaker r. Turnbull, 18 N. J. Law 172. Sif Iluusti.n v. FeUows, '21 Vt. O.'U ; Tessier v. Kn<,dehart, 18 .Nrh. l»;7 ; (innnis v. ( lutT. Ill I'.nn. St. r>\-2: M1 ; Fllis r. ( mhran, 117 111. loM; Wood r. Hrush, 12 ("al. lil'l ; Patterson r. Wri^dit, ()4 Wis. 2s\\. The same rule applies to a eounter-idaim; Kramer r. Fleetrie Lii,'ht Co., !»"> N. C. -77. And to a demaml in exility; Keppy r. Keppy, 4»J .Mo.^.')71. It luus been held that a present claim apiinst an insolvent estate may Ihj set off when ihf debt ajjainst which the set-off is claimed matured after tleceased in.solvent's death; Skiles v. Ibiuston, 110 Penn. St. 204. But see " Demands aj,minst executoi-sand administratoi-s," infra, (ienerally, in the alwenee of statute, the claim which is tlu' subject «>f set-oiT nuist i^row out of the transaction. See Hnliock r. Horn, 44 Ohio St.4'J0; Heecher r. Baldwin, />/i Conn. 4l!t: l-Mi.l '. i'.urchard, 1:J0 .Ma.ss. 424. Torts and replevin. — Damai^es from torts cannot l>e set f)ff at law or in etpiity ; Shelly r. Vanarsdoll, 2*} Ind. 043; Har- ris r. Uivers, 53 Id. 21t); Hall's Appeal, 40 IVnn. St. 409; Matthews r. Lindsay, 20 Fla. J)02, 1)77 ; Vancleave v. Beach, 110 Ind. 201>. ( )ne trespass cannot Ih,* set off in bar of another ; Ilari^reavcs r. Kind)erly, 20 W. \'a. 787, 8o0 ; Shelly v. Vanars- doll, siii>ri:. Damajifes sustained by annoying suits, malicious ])roseculions, slander of title, injury to one's credit occasioned b}' such procccdiiiL,'s, thoui^h lelatin^ to the subject-matter of plaintiff's suit cannot be set off; Matthews r. Lindsay, «*//>n/. A demand arising from tort, cannot be set off against one aris- ing out of contract ; Indianai)olis R. R. Co. v. Ballard, 22 Ind. 448. See Hall v. Penny, 13 Fla. G21 ; Hudson v. Nute, 4.') \'t. 66 ; Street v. Br^an, 65 No. Car. 619. But damages may be set off in certain cases where the statutes so provide or the set- off is, perhaps, claimed as a remedy after the nature of recoui>- ment; Campbells. Fox, 11 Iowa 318; Bulkeley v. Welch, 31 Conn. 839 ; Roethke v. Philip Best Brewing Co., 33 Mich. 340 ; Thompson v. Congdou, 43 Vt. 396 ; Nordeu v. Jones, 33 Wis. 600. KOSE V. HART. 1583 In replevin, a set-off is not allowable ; Fairman v. Fluck, 5 Watts 516 ; Blue Valley Bank v. Bane, 20 Neb. 294 ; Ward v. Anderberg, 36 Minn. 300 ; McDonald v. McDonald, 55 Mich. 155 ; Wright v. Quirk, 105 Mass. 44 ; Stow v. Yarwood, 14 111. 424. But in cases controlled by statutes, or where special cir- cumstances apply, set-off is allowable ; Bonte v. Hall, 2 Cin. Ohio 33 ; Home Sewing Machine Co. v. Zachary, 2 Tenn. Ch. 478; Murray v. Pennington, 3 Gratt. 91. Unliquidated demands. — It is a general rule that these are not the subject of set-off, either at law or in equity ; Tracey v. Grant, 137 Mass. 181 ; Bonaud v. Sorrel, 21 Ga. 108 ; Montague V. Boston Iron Works, 97 Mass. 502 ; Casper v. Thigpen, 48 Miss. 635 ; Hall v. Glidden, 39 Me. 445 ; The Zouave, 29 Fed. Rep. 296; Gelshenen v. Harris, 26 Id. 680 ; Hopkins v. Stockdale, 117 Penn. St. 365 ; West v. Hayes, 104 Ind. 251. Unliquidated damages are when they are not ascertained, or when there are no facts from which the amount may be ascertained by calcula- tion ; Robison v. Hibbs, 48 111. 408. See Smith v. Eddy, 1 R. I. 476 ; Corey v. Janes, 15 Gray 543 ; Stevens v. Blen, 39 Me. 420; Bell V. Ward, 10 R. I. 503; Drew v. Towle, 27 N. H. 412; Smith V. Warner, 14 Mich. 152. But in some states unliqui- dated damages growing out of contracts are made the subject of set-off by statute. See Gardner v. Risher, 35 Kans. 93 ; St. Louis R. R. Co. V. Chenault, 36 Id. 51 ; The Tangier, 32 Fed. Rep. 230 ; Sheldon v. Martin, 65 Tex. 409 ; Knott v. Burwell, 96 N. C. 272 ; Speers v. Sterrett, 29 Penn. St. 192 ; Robinson v. L'Engle, 13 Fla. 482 ; Keyes v. Western Vermont Slate Co., 34 Vt. 81 ; Eads v. Murphy, 52 Ala. 520 ; Sledge v. Swift, 53 Id. 110. Law and equity. — The power of allowing an equitable off-set "should be ver}^ cautiously exerted, and only in a case where the equity involved is entirely clear and certain. It is never justi- fied, save where other remedies are impossible, and where the demand allowed is put beyond reasonable doubt; " Armstrong V. McKelvey, 104 N. Y. 179, 185. See Merriam v. Childs, 93 Mo. 131. There is a long discussion of the subject of equitable set-off in Nuzum v. Morris, 25 W. Va. 559. See Payne v. Webb, 29 W. Va. 627. Except under particular circumstances, joint and separate debts, or debts accruing in different rights, will not, for the want of mutuality in the cross demands, be set off in equity against each other ; Glover v. Hembree, 82 Ala. 324, '327. Equity is frequently resorted to in case of insolvency. 1."»K4 knsi: v. iiai:t. Sec (iimplKll V. Connui, TH Ala. 211; FarriM v. IIouHlon, 78 Ala. '2'i(); (liik'iui Kailroiul Co. v. Kiinor, 11»> 111. 0.> ; Fourth Nut. Bank r. City Bank, G8 1(1,31)8; Littletieia r. Albany Bank, 1)7 N. Y. r)Hl. See SpanMin^' r. Backu.s, liiJ Muss, rtu'.i; Sulig- mann v. II«lK'r Clothinj^ Co., ♦•l* Wis. 410. It is said that a set- off may l>c' ;illo\vt'(l in tMjiiity in the same eases a.s at law. First Nat. Biink r. Burnuni Iron Works, 58 Mieh. 1*J4. See Scain- nion r. Kinih;ill, [)'2 V. S. M'2. See " In case of insolvency," in/ni. For a case in a I'niteil States court wliirh held that a plea of set-off whiih (ontains a purely e<|uitahlo defence to an action on a promissory note, cannot be admitted, alth«»ui^li such defence would Ik* allowed in the state where the note was made. See Snyder r. Pharo, 2o Fed. Uep. 398. In some stutes, an 0(juital)lc claim may be set off in a suit at law; .Vlwater v. Schenck, 9 Wis. V\0; Chandler r. Drew, 6 N. II. ICIK In a lat9. Many (»f the cases — especially old ones — draw elalntrate distinctions l>etween law aiul ecpiity in relation to off-set. hut the principles are largely treated under the subject «)f '* mutuality," in/nt. How far claim must be legal. — Deuiands must U? Ic^'al : Payne V. L..u(loM,:{ r.ihl. ( Ky.)ii.'»0; Caldwdl »•. Caldwell, 2 Bush (Ky.) 44ti : ( hicago Dock Co. v. Duidap, 32 111. 2<)7. See Hall r. Kim- mer, 01 Mich. 2»J9. Services to the plaintiff which ar-- a fraud Uj)on a third person cannot l>e set off; I'.vcrnghim v. ICnsworth, 7 Wiiid. 32G; Callehan r. Stafford, Is La. Ann. ;'>;')«>. The part of a divisible demand which is legal may Ix) set off: Rice t: Welling, .") Wend. o'Jo ; .McCraney v. Alden, 46 Barb. 272. Mutuality. — '^ The claim asserted as a .setniff must Ix* held by the i)arty who asserts it, ami not by him and another jointly," and so of setting off a several debt against a joint ; Proctor v. Cole, 104 Ind. 373, 370; Hush v. Thompson, 112 Id. 158, 1»)2; Griffin v. Cox, 30 Id. 242; Booe v. Watson, 13 Id. 387; Carter V. Berkshire, 8 Blackf. 103; Richardson v. St. Joseph Iron Co., 5 Id. 14«); Ingols v. Plimpton, 10 Col. 535; Ryan i-. Barger, 16 111.28; Dmbon i-. Kelley, 22 Ind. 1S3; Brown v. Warren, 43 N. II. 430; Coates v. Preston. 105 III. 470; Clark v. Taylor, KOSE V. HAKT. 1585 68 Ala. 453. A debt accruing to a person in las individual cai3acity cannot be set off against a debt due from him as trustee ; First National Bank v. Barnum Works, 58 Mich. 124. See Lynde v. Davenport, 57 Vt. 597 ; Vason v. Beall, 58 Ga. 500 ; Jones v. Brevard, 59 Ala. 499 ; Collins v. Greene, 67 Id. 211 ; Robertson v. Garshwiler, 81 Ind. 463. The principle ap- plies in the case of all mutual accounts ; Peine v. Lewis, 64 Miss. 96; Re Cleveland Ins. Co., 22 F. R. 200; Penniman v. Loney, 40 Md. 471. See Perry v. Chesley, 77 Me. 393. But it has been held that a judgment in favor of A. and against B. and C. may be pleaded as an offset to an action by B. against A ; Moody V. Willis, 41 Miss. 347 ; Peyton v. Planters' Compress Co., 63 Id. 410. The converse of the first proposition is gen- erally true, that a separate debt cannot be set off against a joint one ; Howe v. Sheppard, 2 Sum. 409 ; McDowell v. Tyson, 14 S. & R. 300 ; Bridgham v. Tileston, 5 Allen 371 ; Wilson v. Keedy, 8 Gill 195. The same rule applies in equity, although subject -to exception; Home v. Sheppard, supra; Brewer v. Norcross, 17 N. J. Eq. 219; Story's Eq. Jur. § 1457. And the rule is at law sometimes qualified by agreement of parties ; Per- kins V. Hawkins, 9 Gratt. 649; Smith v. Myler, 22 Penn. St. 36, 40. And in cases of insolvency ; Phelps v. Reeder, 39 111. 172. In Pennsylvania it has been held that one of two or more defendants may set off his individual claim against the plain- tiff's joint claim ; Miller v. Bomberger, 76 Penn. St. 78. See Kent V. Rogers, 24 Mo. 306 ; Dunn v. West, 5 B. Monr. 376. And such set-offs are allowed in many cases by liberal statutes ; Threlkeld v. Dobbins, 45 Ga. 144 ; Redman v. Malvin, 23 Iowa 296 ; Sledge v. Swift, 53 Ala. 110. Partnership. — The debt of one partner cannot be set off ao-ainst that of a partnership, and vice versa ; Collier v. Dyer, 27 Ark. 478 ; Harlow v. Rosser, 28 Ga. 219 ; Ward v. Newell, 37 Tex. 261 ; Meeker v. Thompson, 43 Conn. 77 ; Ross v. Pear- son, 21 Ala. 473 ; Watts v. Sayre, 76 Ala. 397 ; Reed v. Whit- ney, 7 Gray 533; McKay v. Overton, 65 Tex. 82; Gardiner v. Fargo, 58 Mich. 72 ; Wilson v. Runkel, 38 Wis. 526 ; Singerly V. Fox, 75 Penn. St. 112; Coleman v. Elmore, 31 F. R. 391. Where a partner wrongfully uses partnership property to pay his own debts, there is relief in equity ; Cornells v. Stanhope, 14 R. I. 97. See Weaver v. Rogers, 44 N. H. 112. In an action for debt due from defendant to plaintiff, the former cannot set l.'.sr. l:ii-,F. V. MAUT. oil .1 «lcljt tluu from llio hitter t<> a firm in which l>oth are [>art- iiers ; II. ('iinii)lx.'ll, ;50 Id. 7-JH; Sjun[)le v. Grillith, 5 Iowa 370. An u«^ree«l ImUuicu clue from one partner to another upon a partnershij) .settlenuMit Is it j^jood set-off; Dana r. Barrett, ;> .1. .1. .M.ir.sli. (5. In a suit hy a .surviving partner fi>r u debt diif fioiii tin- tirni, lh«' defi-ndant may set off a deht due to him fioin tilt' surviving,' partner ah>ne: Ilolhrook r. Lackey, 13 Met. l:'.ii; i;nsh c. ("lark, 127 Miuss. Ill, 111'; .Miller r.' Franklin liank, 1 Pai^^e 444. So in most actions hy and a;^ainst snrviv* in^' partners there seem to he liU'ral ri;,'hts of set-«»ff; Masterson f. (loiMllc'tt, 40 Te.x. 402; Newlierry «». 'rrowhrid;^e, 13 Mich. 203; Wain r. llewes, /i S. ».V K. 408. So there may be set-off ill the case of sju'cial agreements «)r particular Ixiok charges; Hood r. Uiley, lo N. J. Law 127; Land. r. Brolaski, 3H Mo. ol. See Cillcy r. \'an Patten, oM Miiji. 404. It is htld that co- partnci-s trusteed may set off a (lain) due from the defendant to »>iit' of tin- partners; Ilohiiison r. Furhush, 34 Me. .'>0!». • Husband and wife. — 1 he .same general principle applies wliere a set-off is claimed in ease of demands relating to husband and wife. In most ciuses there can l>e no set-off; .Morris r Booth, S Ala. «.>07 ; (Ua/ebrook v. Itigland, H (iratt. 332; Smith v. Johnson, 5 Harr. 40; Jamison r. Brady, S. & K. 400; Pierce r. Dustin, 21 N. 11. 417; Xaglee r. Ingersoll, 7 Pcnn. St. 1S.">; Bent/, i: Bent/., l»o Peiin. St. 210; Doyle v. Orr, ol Mi.ss. 233; Hendricks c. Toole, 2I> .Mi.-h. 340; Mu.ssel- man r. (Jalligher, •■)2 Iowa 3S3 ; Challiss r. Wylie, So Kans. r.OO; Sloteman r. Thomas Mfg. Co., ♦>«) Wis. 41»9. Where the obligees of a bond sued for the use «»f a femt- j)laintitT and husband, an account was set off of medical services to the wife before marriage ; Oary v. Johnson, 72 \. C. 08. See Johnson V. King, 20 Ala. 270. A promissory n«)te executed by husband and wife, the latter as surety, is available as a set-4^)ff against a note executed to the husband; .\J)shire v. Corey, 113 Ind. 484. Principal and agent. — The debt of an agent cannot be offset against one iluc the principal; Wilson r. Codman, 3 Cr. 103. Where a broker sells goods without any possession of the same, and the purchaser knows it, receiving the same from the prin- cipal, the purchaser cannot set off against the seller a debt due to him from the broker ; Dunn v. Wright, 51 Barb. 244. See New Orleans v. Finnerty, 27 La. Ann. 681, 21 Am. Rep. 569; ROSE V. HART. 1587 Carman v. Garrison, 13 Penn. St. 158 ; Forney v. Shipp, 4 Jones' (N. C.) Law 527. But the purchaser may treat the agent as owner, and in an action brought by the principal for the price may set off a claim he has against the agent, provided the purchaser supposed the agent was owner and there were no circumstances to put him on inquiry ; Frame v. William Penn Co., 97 Penn. St. 309; Huntington v. Knox, 7 Cush. 371; Nichols V. Martin, 35 Hun 168, 170 ; Wright v. Cabot, 89 N. Y. 670 ; McLachlin v. Brett, 105 N. Y. 391 ; Hurlbert v. Pacific Ins. Co., 2 Sum. 471. See Granger v. Hathaway, 17 Mich. 500 ; Noble V. Leary, 37 Ind. 186 ; White v. Jaudon, 9 Bosw. (N. Y.) 415. Principal and surety. — The question of mutuality in case of demands of principal and surety is largely one of statute, and often involves equitable principles ; Knour v. Dick, 14 Ind. 20 ; Davis V. Milburn, 3 Iowa 163, 167 ; Newell v. Salmons, 22 Barb. 647 ; Crist v. Brindle, 2 Rawle 121. " The principal debtor is the real debtor, and the surety but security for the payment of the principal's separate debt ; and offsetting a demand in favor of the principal debtor alone, when sued with his surety, is setting off against each other what may be regarded as essen- tially mutual debts;" Himrod v. Baugh, 85 111. 435, 438; Mahurin v. Pearson, 8 N. H. 539 ; Concord v. Pillsbury, 33 Id. 310. The note of a principal and surety may be set off against a note of such principal alone ; Andrews v. Varrell, 46 Id. 17. See Newell v. Salmons, supra ; Myers v. State, 45 Ind. 160. But it has been held that there can be no set-off unless by con- sent of the principal; Lynch v. Bragg, 13 Ala. 773 ; Woodruff v. State, 7 Ark. 333 ; Dart v. Sherwood, 7 Wis. 523. But set-off is generally allowed in Indiana "when the action is upon a note or other contract against several defendants, any one of whom is principal and the others sureties therein ; " Sefton v. Hargett, 113 Ind. 592, 594. But set-off is often denied where circumstances are exceptional ; Gentry v. Jones, 6 J. J. Marsh. 148 ; Holden v. Gilbert, 7 Paige 208 ; Cox v. Cooper, 3 Ala. 256 ; State V. Modrell, 15 Mo. 421 ; Peine v. Lewis, 64 Miss. 96. And a suret}^ when sued alone cannot, " without the assent of the principal, set off a debt due the principal from the plaintiff in the suit, to discharge him, the surety, from his liability;" Graff V. Kalin, 18 Bradw. 485, 487. In case of assignment. — A set-off, not due to the defendant 1'j8H K08K V. MAKT. but iissignt'd to Imii, must Uaw Ik-i-u ni;uh', t»> i»c v.ilnl, Ix'fore tliu conuueuit'iiuMit nf ilu- suit; Miirtiu r. W'illuinis, IT JoIiiih. 330. See Wjilker c. McKay, 2 M«t. (Ky.) lilM ; Th..in|..sc)n r. Mc- C'lelliind, 2'> IViiii. St. 475; Spceis r. Stenvtt, Id. ll»-J; F(.llett t'. Buytr, 4 Ohio St. .'iM; Olnisteinl v. Stutt, 5o Conn. l'2o. Ah to proniis.soiy note.s, see Wliitaker v. 'rurnbuU, IH N. J. Laiw 172; Joluison r. Conistock, ♦> Hill 10. A.s to a ImjucI, hco liackus /•. SpauMinjr. 12'» .Mass. •_»:54 ; H .b.hns. l')2; Itu.ssell v. l.illit^'ow, 1 hay {S.i'.) 4:57; Kiddick r. Moore, ♦;."> X. C. 3«2. Tlif lioMi'i- l»y delivery of a non-nej^otiiible note eannot set off the sanu! in an action against hitn by tlu« niakrr; Ayre.H v. MeConnel, 1') 111. 230. See Ilickerson r. .MeFaddin, 1 Swan (Tenn.) 2iiH. C'luwes in aciiun assijjned eonditionally cannot beset ofT; Shryock v. Hasehore, H'2 iVnn. St. l')9; .MeDade v. Mead, IM Ala. 214; McDonald r. Ilarriscm, 12 Mo. 447. An u.ssi^'n(!e of a eontract for the payment of money liolils it free from any oflfsets in favor of tlie debtor apiinst the UMsi^nor, created after notice to the debtor of the assignment. See Mar- tine r. Willis, 2 K. I). Smilii ( .\. V.) 524; .Solonu.n c Holt, 3 Id. 131); Robinson r. Swijjart, 13 Ark. 71. Stime statutes pro- vide that assiirnmcnt shall not In-ar sct-
    , 224; Morrow r. Hri.i;ht, 20 Mo. 298; Ray- mond r. Green, 12 Neb. 215, 220 ; Marks v. Barker, 1 Wa^ih. C. C. 178; Jones v. Robinson, 2B Harb. 310. But debts pur- cbased with knowledge of tlie debtor ; insolvency or insolvent condition and nt)tice to the debtor of the purchase cannot l)e set off in an action by the assignee upon a debt due from tlie purcliaser to the debtor: Smith r. Hill. 8 (Jray 572: Long v. HOSE V. HART. 1589 Penn. Ins. Co., 6 Penn. St. 421. Old cases in whicli no set-off was allowed are Henriques v. Hone, 2 Edw. Ch. (N. Y.) 120 ; Boinod v. Pelosi, 2 Dall. (Penn.) 43 ; Bateman v. Connor, 6 N. J. Law 104 ; Johnson v. Bloodgood, 1 Johns. Cas. 51. It has been held in an action by the assignee of a debtor for the benefit of creditors, against a creditor for the conversion of notes of the debtor held as collateral, that the defendant cannot set off the debtor's general indebtedness ; Lane v. Bailey, 47 Barb. 395. And in an action by an assignee on a debt due after the volun- tary assignment, the defendant may set off a debt due from the assignor at the time of the assignment. A bank made an as- signment hokUng the defendant's note not due and was indebted to the defendant for deposits exceeding the note. In an action on the note after maturity the defendant was allowed to offset the indebtedness to him; Jordan v. Sharlock, 84 Penn. St. 866; s. c. 24 Am. Rep. 198. See Matter of Fulton's Estate, 51 Penn. St. 204 ; Rubey v. Watson, 22 Mo. App. 428 ; Skiles v. Houston, 110 Penn. St. 254. A similar rule seems to have been adopted in New York; New Amsterdam Bank v. Tartter, 4 Abb. New Cas. 215 ; s. c. 54 How. 385 ; Fort v. McCully, 59 Barb. 87. See, also, Finnell ik Nesbit, 16 B. Mon. 351. But in Connecticut a depositor upon the insolvency of a savings bank cannot set off his deposit against a debt due from him to the bank, unless the deposit w^as made to be applied in payment of the indebtedness to that amount with the knowledge of the officers ; Osborn v. Byrne, 43 Conn. 155 ; s. c. 21 Am. Rep. 641. A bank indebted to an insolvent depositor cannot purchase a claim against the in- solvent estate and offset it ; Union Bank v. Hicks, 67 Wis. 189. See Re Cleveland Ins. Co., 22 F. R. 200 ; Fourth Nat. Bank v. City Nat. Bank, 68 111. 398 ; Smith v. Felton, 43 N. Y. 419 ; Case V. Cannon, 23 La. Ann. 112. This principle of set-off is extended to the assignees or receivers of insurance companies, and the latter's customers. These have been allowed to set off the amount due for losses, although not definitely ascertained in a suit for premiums by the assignees or receivers; Holbrook v. Receivers, 6 Paige 220. But where at the time of the receiver's appointment the com- pany had claims against the defendant, who held two of the company's endowment policies not yet due, in which it was to pay the sum insured to his wife upon his death prior to a certain date, and if he was living, then to him, it was held in l.V.)U KOSK V. HAKT. an action on the claims that the defendant couUl not Ket off tho reserve value of the policies; Ne\viond> v. Alniy, IM> N. Y. 308. See R*' Clevthuul Ins. ('.)., '22 V K. Jecitiod should Im* dismissed ; Gat/mer u. rinlailelphia Railway Co., 31> N. J. Kip 'W.i. The following ca.ses are important in their treatment of the sid>ject as applicahlo to the estates of deceased in.sol vents. "In the settlemi'iit of the estates of deceaseankrupt systems of Kng- land and the I'nittMl States; that is, without regard to any special connection In'tween the claims sought to Ihj set off, to sink the sum due to the insolvent hy the amount of tho sum actually \. It wjuh acconlingly stated in Clarke v. Hawkins that the analogy should applv to the wind- ing up of insolvent corporations as in N»'w York and New Jei-sey ; McLaren r. IVnnington, 1 Paige 1 1 J : Miller v. Receivers, Id. 444 ; !{»• Receivers, Id, oM'). ju Aldrich v. CamphcU, 4 (iray 2S4, it is .said, "This case is not to l)e determined upon the technical rules of setH»tT, hut upon the {trinciplcs regulating the .settlement of insolvent estates, whether of persons living or decea.sed. Tlie settlements with such estates are tinal, and all nuitual demancLs are to Ije balanced. Claims not li«piidated, and dehts absolutely due, though payable in the future, are to Ix? included. The halance found u[)on such adjustment is the only debt remaining. In the case of an insolvent estate of one deeea.sed all claims exist- ing at the time of the death are to be set off; in the ca.se of an insolvent estate of a person living, all claims existing at the time of the first publication (»f the notice of the issuing of the warrant." See Dcmmon v. Boylston Bank. •') Cush. 104 ; Bige- ROSE V. HART. 1591 low V. Folger, 2 Met. 255 ; Plielps v. Rice, 10 Id. 128 ; Bemis V. Smith, 10 Id. 194. But the rules relating to the settlement of insolvent estates of persons living or deceased, or to actions brought b}^ assignees under an assignment for the benefit of creditors, are declared to have no application to the claim of an assignee of a chose in action ; Smith v. Felton, 43 N. Y. 419, 422, 423 ; Commonwealth v. Shoe and Leather Ins. Co., 112 Mass. 131 ; Spaulding v. Backus, 122 Id. 553, 555. It has been held that where a bank has a lien on its own stock, given by usage and by-laws of directors, for advances to a stockholder, the assignees in insolvenc}^ of the latter cannot compel the transfer of the stock without paying the amount due to the bank ; Morgan v. Bank of North America, 8 S. & R. 73, 88. In Receivers v. Paterson Gas Light Co., 23 N. J. Law 283, it was held that a debtor of an insolvent bank, whether his indebted- ness has accrued or not at the time of the insolvency, may set off against the same either a deposit in the bank or the bills thereof received by him in good faith before the company's failure. And it was further stated, that the claim against the insolvent corporation did not constitute a legal set-off under the statute of set-off, as against the receivers ; but that, in an action at law by the receivers, the defendant would be per- mitted, under the statute to prevent frauds by incorporated companies, to avail himself of the defence. This case contains extensive references to the jurisdiction of equity over set-offs in cases arising under bankrupt and insolvent laws. It shows that the jurisdiction was exercised by the courts long before the introduction of the provision into the statutes. After stating that the fact that '' all well-considered bankrupt laws do contain so broad a provision in favor of set-offs is in itself the strongest authorit}' in support of the natural equity and justice of the provision." It is said that " the general right of set-off was first introduced in the bankrupt law in the year 1708, by the statute 4 Anne, cap. 17 ; but the course of adjust- ing the balance was adopted in practice as early as 1675. Thus, in 28 Car. 2 (1675), Lord North said. If there are accounts between two merchants, and one of them becomes bankrupt, the course is not to make the other to pay the whole that was originally intrusted to him, and to put him, for the recovery of what the bankrupt owes him, into the same condi- tion with the rest of the creditors, but to make him pay that 1592 KosK V. ii.vi:t. only which appears t»> In- diu- i<> tlie hanknijtt on tin- luoi i>{ the accdiuit. Mod. liir)." It lias already been stated that iiniiiaturfd claims cannot l>e setotY; and it is said that no claim ori^^Muatin^' or acijuired after bankruptcy or the death of an insolvent can Ix.- s«*t ofT against the executors or jussignees of the insolvent or the assignees of the bankrupt because the assets are tlicn held in trust for all the credit(us; Northampton Bank r. Halliet, H \V. A: S. .'UT, 318 ; Irons V. Irons, 5 K. I. 2»;4, 2»;7 ; Clarke i: Hawkins, Id. 219. In Smith r. Hill, H (Jray 572, previously quote«l, it was held that a debt purchased with knowledge of the (hd)tor's insolvency, and reason to Ixdieve that he is about to go or Ik« driven into insolvency, and notice to the drbtor of the purchase, cannot 1)6 set off in an action by tlu- assignee in insolvency upon a (hd»t rii, tlu* court saying that "to allow this set-off wouhl not Ik* consonant with e(|uity or justice to the parties interested ; would directly tend to defeat an ecuiitable distribution of the jissets among the creditors gen- erally ; ani,fiii/A'(l priiiciides of the subject. St-t* IV'rcy v. Chiry, 32 iM(l. lM;") ; rciuson v. Darrington, 32 Ahi. 227 ; Burke v. Stilhvell, 23 Ark. 21*4; Wilson v. Kdmonds, 24 N. II. 517; Cialloiiey's App., IViin. St. 37; Strong r. Bass, 35 M. 333. See, also, Boyd r. Townes, 7'.> \'a. \\H\ Titus v. Iloagland, 39 N. J. E(j. 294. It is a general ride that a legatee owing the tes- tator is entitled to only the excess of the legacy over his debt; Armour v. Kcmlall, 15 \i. I. 19:5. Sec Ilowze v. Davis, 70 Ala. 381. Demands against executors and administratora. — If an executor or adniinistrutoi- brings suit upon a tlcbt created against the de- fendant, (U- upon wliith the cause of action arose after the testator or intestate's death, it is a general rule that tiie defendant cannot set off a debt existing and suable against the testator or intes- tate in his life-time : iJoot r. Taylor, 20 .Johns. 137; Dale v. Cooke, 4 .b»lins. ( li. l:'). See Shaw r. (Jookin, 7 N. II. 10; Cook i\ Lovell, 11 Iowa Sl ; \Volfersi)erger r. Bueher, lO S. & K. 10; Jordan v. Nat. Shoe Bank, 12 Ilun ( N. V.) 512; Patterson V. Patterson, 59 X. Y. 574 ; Biz/ell r. Stone, 12 Ark. 37H ; Ilarte V. Ilouchin, 50 Ind. 327 ; DayhutY /•. Day huff, 27 Id. 15M ; Wake- man V. Everett, 41 Hun 278. See, also. Steel v. Steel, 12 Penn. St. 64; McDonald v. Black, 20 Ohio 185; McLaughlin v. Win- ner, 03 Wis. 120; Stuart v. Commonwealth, 8 Watts (Penn.) 74. A claim due fiom an executor in his imlividual capacity cannot be set off against a demanrti,Mi;t' ; lUakely r. Twining, ♦)!) Wis. 2^>H. Claims by or against banks. — "Tlie general rule is that a hank has a rigiit of set-off as against a (K-posit, only when tlu' indi- vidual who is hoth depositor and dehtor stands, in hoth these characters alike, in i)reeisely the same relation, and on pretti.scly the same footing towards the hank, and hence an individual deposit cannot he set off against a partnership deht;" Interna- tional Bank r. .loues, 119 III. 4oT. 41<». Hills of a l)ank accpiired after its insolvency cannot l)e set off against «lel»ts due it at the time of insolvency ; Diven /'. l*helj>s, .'U Harh. 2-4; ICxeliange Bank V. Knox, 19 (iratt. 7:59; (Jee v. Bacon, I» Ala. ♦;99. See Clarke ('. Hawkins, ."» U. I. ■_']'.•. it is immaterial if a pait of the hills were held l>y the defendant when tlie hank failed an Har. cV .1. 4S1>. The notes of a state Iwink, after it has organized as a natiomd hank, cannot l>e set off against a judgment recovered hy the latter; Thorpe r. Wege- farth, .")•» I'cnn. St. 82. I)ei>osits made with hankers after witli- drawal of a partner, hy the maker of a note to them l)efore with- drawal, cannot he set off against the note; Dawson v. Wils«)n, 55 Ind. 21tt. For a case where it was held that a divi«lend that would be coming to one as stockholder U[)on winding up, was not available as a set-off, see Iluckersville Bank v. Hemphill, 7 Ga. 396. For a case where it was held that there were no mutual creditors, see Stetson v. Exchange Bank, 7 (iray 425. See further on this subject, Bank v. Macalester, 9 Penn. St. 475 ; Andrews v. Artisans' Bank, 26 N. Y. 298 ; Re Van Allen, 37 Barb. 225 ; American Bank v. Wall, 56 Me. 167 ; Colt v. Brown, 12 Gray 233. Public officers and the government. — Generally, set-off is not allowed in cases of demands by or against public officers; Rus- ROSE V. HART. 1597 sell V. First Presbyterian Church, 65 Peun. St. 9 ; Wilson v. Lewistown, 1 Watts & Serg. 428 ; Harper v. Howard, 3 Ala. 284. See United States v. Ringgold, 8 Pet. 150. It cannot be applied to the salary of the Attorney-General, 80 Va. 485. See Water- bury V. Lawlor, 51 Conn. 171. The state being sovereign can be sued only by its own con- sent, hence, in actions by the state, the right of set-off does not exist, unless given by statute ; White v. Governor, 18 Ala. 767 ; Chevallier v. State, 10 Tex. 315. A tax not being a debt is not liable to a set-off ; Gatling v. Commissioners, 92 N. C. 536. See Newport Bridge Co. v. Douglass, 12 Bush (Ky.) 673 ; Cobb V. Elizabeth City, 75 No. Car. 1 ; Finnegan v. City of Fernandina, 15 Fla, 379 ; City of New Orleans v. David- son, 30 La. Ann. 541, 554 ; Hibbard v. Clark, 56 N. H. 155. Where the Commonwealth undertakes to litigate wdth a citizen or corporation, the latter may, by set-off or counter-claim, defeat the recovery of the state, but, in the absence of some sj)ecial legislative authority, the defendant cannot have judgment over against the Commonwealth ; Commonwealth v. Owensboro R. R. Co., 81 Ken. 572. The law of set-off in case of United States government will be found at the conclusion of the notes on "counter-claim." Various points. — The following points are of a general nature, and are nearly all taken from late cases. Instead of pleading a set-off or counter-claim, a defendant may make it the subject of an independent action ; Blackwell Co. v. McElwee, 94 N. C. 425. Generally the plaintiff cannot dis- continue or be non-suited; Holcomb v. Holcomb, 23 Fed. Rep. 781; Whedbee v. Leggett, 92 N. C. 469; O'Malley v. Judy, 16 Mo. Api^. 553. A set-off may be pleaded as a defence to an action brought in the United States courts in any state where that plea is permissible by the laws of the state ; Frick v. Clements, 31 Fed. Rep. 542 ; Partridge v. Ins. Co., 15 Wall. 573. For cases where the risrht of set-off was held to be superior to an attorney's lien, or to the rights under an assign- ment of an overdue debt ; Fairbanks v. Devereaux, 58 Vt. 359 ; McDonald v. Smith, 57 Id. 502. Where the amount claimed by way of set-off exceeds the jurisdiction of the state court from which the cause is removed to the United States court, the United States court has no jurisdiction ; Hummel v. Moore, 25 Fed. Rep. 380. As to abatement by death under a statute, see 1'>\)H ROSE V. HART. FiiiniU r. Shell, ♦)!) Wis. "jt;]. If ;i co-plaintiff is julmittetl hy uiiU'iidmL'iit, in lhsc ot" a verdict aj^ainst tlnni. the recovery upon the countcr-claini will he at^'ainst hoth ; Mack r. Slotcniaii, 21 Fed. Itcp. 1<>!>. When payment and .set-otY are pleadeS. .\.s to (picstiniis of /vx iiilJuiUntta, Krapp v. Kldridjj^e, 33 Kan. li>»I; Hank ik Ketchum, tJO Wis. 4:is. A stockholder who is a creditor of the corporation cannot olYset his unpaid sulxscri|>- tiou as against the general indehtedness (»f the corporation; Thompson v. Lake, 10 Nev. 103. I5nt in a proceeding under the statute, against a holder of unpaid shares hy a creditor of the corporation, the shaiclnthler may offset a matured indehted- ness of the corporation to him: Wei)lH;r v. Leighton, H Mo. App. ")02. It has heen held that a hank cannot set i»ff the amount due upon a promi.ssory note against a certitieate of deposit; Shutt; v. Pacific Nat. Bank, 13»J Msiss. 487. \\u\ inti-rest received hy a national hank upon a note, greater than the rate alloweil by the Ktato law whert^ the note wsus made, in violation of U. S. Kev. Sts. i^ 0107, cannot Ikj .set off in an action hy the hank iipon the note against tin* amount due thereon; First Nat. Hank r. Childs, 133 Mass. 24S: 130 Id. .■)10. Statnte of Limitations is not a defence to set off if cross demand was a legal subsisting claim when plaintiff's right of action accrued; Patrick v. Petty, M3 ^Vla. 420. ( )ne having a note and account against another may sue upon the not*- and re[)ly the account iis a set-off against an e([ual ainonnt pleaded as a set-off by the defendant; lUount v. Kick, 1<»7 Ind. 238. Judgments. — "While there is no ex[)ress statute authority for setting oft judgments where the creditor in one action is the debtor in another, except in a limited number of cases" given by statute, "'yet this power has Ix^en frequently exercised by courts of law, and rests upon their jurisdiction over suitoi-s in them and their general superintendence of proceedings before them;" Ames v. Bates, 110 Mass. 307; Hadlam v. Springsteen, 41 Ilun lt>0 ; Sneed v. Sneed, 14 Tenn. 13 ; Frazicr v. IIen(ben, 80 Va. 265 ; Hosworth v. Tallman, 66 Wis. 533. And it is said that the " practice of setting off one judgment against another, betAveen the same parties, and due in the same rights, is ancient and well established;" Holmes v. Robinson, 4 Ohio 90; ROSE V. HART. 1599 Temple v. Scott, 3 Minn. 419. In the absence of statute, the direction of the court controls. " A court can only order one judgment to be set off against another when equity and good conscience require that such a set-off shall be made;" Beard v. Puett, 105 Ind. 68, 70. See Junker v. Hustes, 113 Id. 524; Butner v. Bowser, 104 Id. 255 ; Chipman v. Fowle, 130 Mass. 352 ; Herman v. Miller, 17 Kans. 328. A debt not in judgment cannot be set off against a judgment ; Thorpe v. Wegefarth, 56 Penn. St. 82. See Zogbaum v. Parker, 55 N. Y. 120 ; Duff v. Wells, 7 Heisk. 17. It has been held that the court will set off judgments of the same or of different courts ; Hill v. Brinkley, 10 Ind. 102 ; Brooks V. Harris, 41 Id. 390. But they must be mutual ; Rix V. Nevins, 26 Vt. 384. See Ledyard v. Phillips, 58 Mich. 204. Upon judgment, all the original peculiar features of a claim are lost sight of, and the demand ranks equally among all other judgments ; Temple v. Scott, supra. The subject of assign- ment presents many interesting points: "It is not just that one should be encouraged instead of his paying his own deljt to seek out claims against his creditor, in order thus to change the posi- tion of parties jt?ewcZe/i^e lite^ and this reason is equally applicable to judgments which may afterwards be obtained upon such claims;" Ames v. Bates, 119 Mass. 397, 399. See Desearn v. Babers, 62 Miss. 421. Often where the equitable rights of third parties would be aff'ected by an off-set, it is not to be made to the injury of intervening rights honestly acquired ; Id. 399 ; Zogbaum v. Parker, 55 N. X. 120 ; Gay v. Gay, 10 Paige 369. See Perry v. Chester, 53 N. Y. 240 ; Wright v. Treadwell, 14 Tex. 255. The set-off of mutual judgments before the issue of executions is an equitable power incidental to the jurisdiction of courts over their suitors and officers, and is independent of any statute of set-off; Chase v. Woodward, 61 N. H. 79. Although if there has been an assignment to a third person before appli- cation for a set-off is made, such third person is the real party in interest, and no set-off can ordinarily be allowed. See Hovey V. Morrill, Id. 9, 13 ; Goodwin v. Richardson, 44 Id. 125. But see Mason v. Knowlson. 1 Hill 218 ; Turner v. Satterlee, 7 Cow. 480 ; Ault v. Zehering, 38 Ind. 429. A party may be subrogated to the rights of another, so as to be entitled to off- set a judgment against one held against him. Gillette v. Hill, 102 Ind. 531. A judgment against A. and B. in their individual IGOO ROSE V. lIAltT. capacities, caniiDt he set otl aj^ainst them :i> .uliiiiiii-^t i iturs; McC'hesney v. Koj^ers, 8 N. J. Law 272. Statutes do not always reciuiie the mutual lUlii.^ i«i \ni thie to and from tlie same number of persons. See Hallinger v. Tar- bell, 1<> Iowa 4'.>1 ; Spurr v. Snyder, JJ.') Conn. 172. Hut it is hild in Alabama that at law, a judjjment apiinst one |mrtner individually cannot be set otT, in whole or in part, against a judgment in favor of the partnership ; and in ccjuity, «)ne judg- ment cannot 1)6 set off against the olht-r to the extent of the individual partner's interest in the ju;'». In order to justify an othcer in refusing to nisike the set-ofl of executions of the res{)ective parties in his hands, it must appear by his return, or otherwise, that the execution tii-st deliverctl to him was assigned before the creditor in the second became entitled to the sum due thrn'on. See Diinklee v. Locke, 13 Mass. .")2') ; I'rimm /•. Ransom. !<• .Mo. 444 ; Lrathcrs c. (^irr, •J4 Mf. 351 ; New Haven Copper Co. v. Brown, 4«; Id. 4lH. In New Jersey, the court has a broad eipiitable jurisdiction in ordering one judgment to be set <»1T against another. It was held that a decree in admiralty for a libellant, on a liUd for damages in a federal court, may be set oft' against a judgment recovered in the supreme court against the libellant, the parties in the suits being the same ; Schautz v. Kearney, 47 N. J. Law 56. See Blackburn v. Kcilly, 48 Id. 82. Where a federal court of ecpiity is asked to set aside the sat- isfaction of a state' judgment at law or to determine eciuitable defences to that judgment, as preliminary to a decree of set-off against a judgmetit of the federal court itself, the parties will be sent to a competent state court to settle the controversy, the federal judgment being stayed ; Lauderdale Co. v. Foster, 23 Fed. Rep. ;",!(;. Counter-claim. — A counter-claim is the creature of statute or code. The term varies in meaning, but the general features of the counter-claim are the same in all states which have adopted it. It usually embraces both recoupment and set-off, and secures to a defendant all the relief given at law, or in equity, or by cross-suit, and includes liquidated or unliquidated damages ; Clinton V. Eddy, 1 Lans. (N. Y.) 61 ; s. c. 54 Barb. 54 : Boston MiUs V. EuU, 6 Abb. (N. S.) 319 : Waddell v. Darling, 51 N. Y. ROSE V. HART. 1601 327 ; Jarvis v. Peck, 19 Wis. 74 ; Dietricli v. Koch, 35 Wis. 618 ; Hay V. Short, 49 Mo. 139 ; Belleau v. Thompson, 33 Cal. 495 ; Wiswell V. First Cong. Church, 14 Ohio St. 31 ; Slone v. Slone, 2 Met. (Ky.) 339 ; Campbell v. Routt, 42 Inch 410 ; Wilson v. Hughes, 94 N. C. 182 ; Hurst v. Everett, 91 N. C. 399; Parsons V. Sutton, m N. Y. 92 ; Grange v. Gilbert, 44 Hun 9. In other states, it is employed for a similar purpose ; Russell v. Miller, 54 Penn. St, 154; Griffin v. Jorgenson, 22 Minn. 92; Bloom v. Lehman, 27 Ark. 489. It must have existed for the defendant against the plaintiff at the beginning of the action ; Orton v. Noonan, 29 Wis. 541 ; Rickard v. Kohl, 22 Id. 506. In some states the provisions are so broad as to allow in an action on contract any other cause of action or contract, existing at the beginning of the suit, to be set off as a counter-claim ; Wheelock V. Pacific Gas Co., 51 Cal. 223 ; Griffin v. Moore, 52 Ind. 295 ; Empire Co. v. Boggiano, 52 Mo. 294 ; Home v. Hoyle, 28 Fed. Rep. 743 ; Church v. Speigelburg, 31 Id. 601. See Green v. Willard Co., 1 Mo. App. 202. In other states any claim spring- ing from the transaction named in the complaint may be set up as a counter-claim, whether in test or contract ; Bitting v. Thax- ton, 72 N. C. 541. See Eversole v. Moore, 3 Bush. 49 ; Norden V. Jones, 33 Wis. 600 ; Hunt v. Chapman, 51 N. Y. 555 ; Allen V. Maddox, 40 Iowa 124 ; Grange v. Gilbert, 44 Hun 9 ; Met. Trust Co. V. Tonawanda, 43 Id. 521. In an action for rent the lessee may set up, as a counter-claim, damages from breaches of covenant in the lease ; Cook v. Soule, 56 N. Y. 420. See Mor- gan V. Smith, 70 Id. 537 ; Orton v. Noonan, 30 Wis. 611 ; Hay V. Short, 49 Mo. 139. But not wrongful acts, independent of his obligation under the contract ; Edgerton v. Page, 20 N. Y. 281. Great latitude is allowed where the course of action set up as a counter-claim is connected with the subject of the ac- tion set forth in the complaint; Glen Manf. Co. v. Hall, 61 N. Y. 226. See Stoddard v. Tread well, 26 Cal. 294 ; Kisler v. Tinder, 29 Ind. 270 ; Starbird v. Barrons, 43 N. Y. 200 ; Isham V. Davidson, 52 Id. 237 ; McDougall v. Walling, 48 Barb. 364 ; Curtis V. Barnes, 30 Barb. 225; Hicksville R. R. Co. v. Long Island R. R. Co., 48 Id. 355 ; Woodruff v. Garner, 27 Ind. 4. It is held in Oregon that in an action upon a contract for money expended by a tenant in repairing a hotel, the owner may show that the building was burned by the tenant's care- lessness ; Zigler v. McClellan, 15 Or. 499. In a late case in 1602 ROSE V. HART. California it is said that in an action on contract the defendant may set up as counter-chiini a cause of action in his favor against tlie plaintiff for a balance on an open, mutual, and current account, although a prior ai;tion by him against the plaintiff on certain items of the account is still pending. The defendant need not dismiss the prior action, or elect between it and the counter-claini ; Lindsay v. Stewart, 72 Cal. 540. See Inslee v. Hampton, 8 Hun 230 ; Gillespie v. Torrance, 25 N. Y. 306, 308 ; Lowry v. Hurd, 7 .Minn. 356, 363. It is a general rule, as in set-off, that the demand must be against the plaintiff in the caj^acity in which he sues, and some of the codes require that the demand must exist in favor of the defendant, and against a plaintiff between whom a several judgment might be had in the action. See Patterson v. Patter- son, 59 N. Y. 574; McConihe v. Hollister, 19 Wis. 269 : Linn v. Rugg, 19 Minn. 181 ; Thompson v. Sickles, 46 L;irb. 4i»: Home V. Hoyle, 28 VM. Rep. 743; Paine v. Hunt, 40 H;ub. 75; Hill V. Golden, 16 U. ^b>n. 551; Pendcrgast r. Greeniield, 4(» Hiin 494; Rcsch V. Senn, 31 Wis. I.'.S; Hiiin r. Newton, 30 id. 640; Quinn v. Smith, 49 Cal. 163; Burrage v. Bonanza (iohl Mining Co., 12 Or. 169. But where one indebted to an estate in the hands of receiver, executor, or trustee, is employed to render services beneficial to the estate, the value thereof is a proper counter-claim in an action to i-ecover the debt ; Davis v. Stover, 58 N. Y. 473. It has been held that usury cannot be set up as :i counter- claim; Prouty V. Eaton, 41 Barl). 409. See Geenia r. Keah, ^)6 Id. 245, 249; McDonald v. Smith, 57 Vt. 502. If that which is set up as a counter-claim on a contract, independent of the contract declared U[)on, although closely connected therewith, it is not available ; Loomis v. Eagle Bank, 10 Ohio St. 327 ; Newkirk v. Neild, 19 Ind. 194. It has been held that an equi- table defence, admissible in a state court, cannot be interposed to an action at law in an action at law in the United States Courts ; Church v. Spiegelburg, 31 Fed. Rep. 601. For cases where it was held that a counter-claim was not admissible, but that the remedy should be against executors or administrators personally, see Gelshenen v. Harris, 26 Fed. Rep. 680 ; West- fall V. Dungan, 14 Ohio St. 276. The late cases enforce the rule referred to, that which is offered as a counter-claim must have existed at the commencement of the suit; Mayo v. Davidge, ROSE V. HART. 1603 44 Hun 342. See Drexler v. Smith, 30 Feci. Rep. 754. In Texas if the suit is founded on a certain demand, the defendant cannot set off unliquidated damages founded on the plaintiff's tort or breach of contract; Riddle v. McKinney, 67 Tex. 29. In Wisconsin, in an action for trespass upon land, a counter-claim for taxes is not available paid by defendent while in possession, believing that he was owner ; Davidson v. Rountree, 69 Wis. 655. It is a general rule that a counter-claim must be set up in the j^leadings ; Bates v. Rosekrans, 37 N. Y. 409 ; Steinhart v. Pitcher, 20 Minn. 102 ; Wythe v. Myers, 3 Saw. 595 ; Stov/ell V. Eldred, 39 Wis. 614 ; Quinn v. Smith, 49 Cal. 163. But see Gilpin V. Wilson, 53 Ind. 443 ; McMannus v. Smith, Id. 211. For a case which held that the answer did not make out a counter-claim within the code, but a set-off, see Delahaye v. Heitkemper, 16 Neb. 475, 480. Many of the codes provided that if the counter-claim, as established, exceeds the plaintiff's demand, the defendant must have judgment for the excess. See Fettretch v. McKay, 47 N. Y. 426 ; Hay v. Short, 49 Mo. 139; Moore v. Caruthers, 17 B. Mon. 669 ; Brainard y. Lane, 26 Ohio St. 632. By § 1059, cl. second, U. S. Rev. Sts., and by act of March 3, 1887, c. 359, 24 st. 505, § 1, cl. second, the U. S. court of claims has jurisdiction to hear and determine " all set-offs, counter- claims, claims for damages, whether liquidated or unliquidated, or other demands whatsoever on the part of the government of the United States against any claimant against the government in said court." The provisions of this section have been held to be very broad ; Allen v. United States, 17 Wall. 207, 5 C. of Cl. 339 ; Macauley v. United States, 11 Id. 693 ; Bonnafon v. United States, 14 Id. 493. As to " counter-claim," see further ; Neitzey v. United States, 17 C. of Cl. 125 ; Brown v. District, Id. 420 ; Betts v. District, 20 Id. 448 ; United States v. O'Grady, 22 Wall. 641, 8 C. of Cl. 451. Recoupment. — The doctrine of recoupment " does not rest on the nature of the right which a plaintiff has in the contract which he seeks to enforce, nor on the fact that his interest in it is the same at the time of suit brought as when it was originally entered into. The essential elements on which its application depends are two only. The first is, that the damages which the defendant seeks to set off shall have arisen from the same subject-matter, or sprung out of the same contract or transac- tion as that on which the plaintiff relies to maintain his action ; 1004 ROSK V. HAKT. the other is, that the ehiiiii for (lamages shall he apjainst the plaintilT; so that tlieir allowauee hy way of set-off or defeiiee to the coiitraet declared on shall operate to avoid circuity (»f action, and as a suhstitute for a distinct action against the plaintiff to recover the same damages as there relied on to defeat the action." It was held that the case under consideration came within the rule, as the claim of the defen«lant for damages arose out of the note in suit, inasmuch as it rested on tiie in- validity of the consideration for which it was given and the fraud of the plaintift" in obtaining it ; Sawyer v. Wiswell, '.> Allen 8i>. See Harrington v. Stratton, 22 Pick. 510; Stacy v. Kemp, 97 Mass. 10*; ; Davis v. Bean, 114 1(1.358; Grand Lodge v. Knox, 20 Mo. 438; Lufl.urrow <•. Henderson, 30 (Ja. 4H2 ; Fowlrr V. Payne, 41* Miss. ;')2; Weaver r. Penny. 17 liiadw. 028; Hush r. Finucane, S Col. P.>2 ; James r. Duke, 7 Id. 2Sii ; Prouty r. Five Thou.sand Staves, 21 Fed. Rep. 51X), 23 Id. loO; ('. Aullniaii iS: Co. v. Ca.se, 68 Wis. 012; (iilwon v. Carlin, 13 Tenn. 447; Davis r. Wait, 12 Or. 425; McAlester v. Landei-s, 70 Cal. 7lt : City Pank r. Smi.sson, 73 (Ja. 422. It has been held that damages must be speeilically alleged so that the |)laintifY may not be expo.sed to surprise at the trial; Holt i'. Friederick, 50 Mich. 20; Whitworth r. Thoma.s, 83 Ala. 308. See McKleroy v. Sewell, 73 (ia. 057. The want of nnituality is fatal to the allow\ance of damages ; City Council r. Montgomery Water Works, 70 Ala. 233. See Glover v. Ciore, 74 (ia. 080; Savannah Pank v. Hartridge, 73 Id. 223. Preach of warranty or fraud in the sale of personal property may be given in evidence when specially set up in the defendant's answer by way of re- coupment; Wentworth v. Dows, 117 Mass. 14. See Bradley v. Rea, 14 Allen 20; Carey r. (niillow, 1(»5 Mass. 18; Owens v. Sturges, 07 111. 306; Murray v. Carlin. Id. 280. That fraud is an important element when the cf»nsideration consists of real estate conveyed b)' deed with covenants of title, see Powley v. Ilolway, 124 Id. 395. For cases where the causes of action were independent and did not arise out of the same contract or cause of action, so that recoupment was not permitted, see Bartlett v. Farrington, 120 Id. 284; De Witt v. Pierson, 112 Id. 8 ; Brighton Savings Bank v. Sawyer, 132 Id. 185 ; Home Sav- ings Bank v. Boston, 131 Id. 277; Smith v. O.sborn, 143 Id. 185 ; Keyes v. Western Slate Co., 34 Vt. 81 ; Samp.son v. Warner. 48 Id. 247. A claim cannot be enforced by way of recoupment which the defendants could not enforce by direct ROSE V. HART. 1605 suit; McCarthy V. Henderson, 138 Mass. 310. "Recoupment is contra-distinguished from set-off in these three essential particulars : 1, in being confined to matters arising out of, and connected with, the transaction or contract upon which the suit is brought ; 2, in having no regard to whether or not such matter be liquidated or unliquidated ; and 3, that the judgment is not the subject of statutory regulation, but controlled by the rules of the common law ; " Myers v. Estell, 47 Miss. 4. In Sterling Organ Co. v. House, 25 W. Va. 64, 83, which, like Myers v. Estell, gives a history of the subject, another difference is stated, that "if the defendant's claim exceeds the plaintiff's, he cannot in that action recover the balance which was due to him." See Kingman v. Draper, 14 Bradw. 577 ; Fowler v. Payne, 52 Miss. 210 ; Batterman v. Pierce, 3 Hill 171. But see Spring- dale Asso. V. Smith, 32 111. 252 ; Overton v. Phelan, 2 Head (Tenn.) 445. There is a distinction between " recoupment " and " counter-claim " dependent largely upon the definition of " counter-claim " in codes or statutes ; Hurst v. Everett, 91 N. C. 399. See Thompson v. Mitchell, 74 Ga. 797. See " counter-claim," supra. Formerly, it was said that it was necessary that fraud should be imputed to the plaintiff, but it is now settled that the doc- trine is applicable where the defendant only complains of breach of contract. See Myers v. Estell, 47 Miss. 4, 23 ; Batterman v. Pierce, 3 Hill 171 ; Ives v. Van Epps, 22 Wend. 155. Recoup- ment is favored rather than a separate action ; Martin v. Hill, 42 Ala. 275 ; Peck v. Brewer, 48 111. 54. Recoupment has been allowed in assumpsit for breach of agreement to the effect that the plaintiff has violated the same agreement; Fowler v. Payne, 49 Miss. 32 ; Andrews v. Eastman, 41 Vt. 134 ; Rogers v. Hum- phrey, 39 Me. 382. So, too, for damages to the defendant by rea- son of failure of plaintiff to keep his contract ; Eddy v. Clement, 38 Vt. 486. So, also, for damages to employer by want of skill of one claiming to be a skilled laborer ; De Witt v. CuUings, 32 Wis. 298. Government duties may be deducted from the price of goods which were to be delivered free of charge ; Fitch v. Archibald, 29 N. J. Law 160. See Cassidy v. LeFevre, 45 N. Y. 562 ; Estep v. Fenton, 66 111. 467. The claims need not be of the same character ; one in con- trast may be set off against one in tort, and conversely, if they arise out of the same subject-matter; Streeter v. Streeter, 48 111. 155 ; Waterman v. Clark, 76 Id. 428 ; Heck v. Shener, 4 160G KOSE V. HAKT. S. & R. 249; Hopping v. Quin, 12 Wend. olT. See Carey v. Guillow, 105 Mass. IH ; Hastings v. McGee, 06 Penn. St. 384. And it is a general rule that damages may be recouped for any breach of contract or failure on the part of the plaintiff to carry out his agreement ; Gordon v. Bruner, 40 Mo. oTO ; Hill V. Southwick, 9 R. I. 299; Lee r. Clements, 4H Ga, 128; Finney V. Cadwallader, 5') Id. 7") ; Harralson v. Stein, 50 Ala. 347 ; Pepper v. Rowley, 7:} 111. 2f)2: Scott v. Kcntoii, HI Id. 90; Belden v. Perkins, 78 Id. 449 ; Williams r. Sihniidt, 54 111.205; Mell V. Moony, 30 Ga. 413. Recoupment is often resorted to in an action for services to show the plaintiff's negligence or no beneficial service; Dodge v. Tilcston, 12 Pick. 328; Phelps v. Paris, 39 Vt. 511; Sterrett v. Houston, 14 Tex. 153; Still v. Hall, 20 Wend. 51. And in case of i-harter parties and in suits by carriers for fieight; Hearse v. Ropes, 1 Spr. 331 ; Id. 301. If the vendee fails in his contract, he cannot recoup for a default of the vendor caused by such failure; Chapman v. Dease, 34 Mich. 375. There is no recoupment where the dam- ages are too remote : Turner v. Gibhs, 50 .Mo. 550. See Peck V.Jones, 70 I\'nn. St. s;-) ; Johiisnn v. LIotTman, 53 .Mo. 504. Damages to a lessee by tiespasses or tortious Ix'havior of the lessor cannot be set oft" against the rent. See Hartlett v. Far- rington, 120 Mass. 284; Cram v. Dresser, 2 Sandf. 120; Elliott V. Aiken, 45 N. H. 30. Generally, as observed above, the claim for damages must be against the j)laintiff, so that their allowance shall operate to avoid circuity of action. See Cummings v. Mor- ris, 25 N. Y. 625; Waterman v. Clark, 70 III. 428; Taylor r. Hardin, 38 Ga. 577 ; Brown v. Crowley, 39 Id. 376 ; Stilwell v. Chappell, 30 Ind. 72 ; Fessenden v. Forest Paper Co., 03 Me. 175. A party generally has his election to recoup or bring a separate action ; Batterman v. Pierce, 3 Hill 171 ; Cook v. !Moseley, 13 Wend. 277. And w'here one endeavors to recoup and also rely upon a separate cause of action, he must usually elect; Fabbricotti v. Launitz, 3 Sandf. 743. It is an almost uni- versal rule that the right to recoup must be specially set up in the defendant's answer; Hodgkins v. Moulton, 100 Mass. 309; Birdsall v. Perego, 5 Blatchf. 251 ; People v. Niagara Common Pleas, 12 Wend. 246. But see Springers. Dwyer, 50 N. Y. 19; Babcock v. Trice, 18 111. 420. As a counter-claim, damages from breaches of covenant in the lease ; Cook v. Soule, 56 N. Y. 420. See Morgan v. Smith, 70 Id. 537 ; Orton v. Noonan, 30 Wis. Oil ; Hay V. Short, 49 Mo. 139. c/1 y CO > -3 o q DC O (J) UJ -I O > CO QQ Co CD Co S CD :^ Co CS Co t 'A o > CO (/) LU C/) < o o < LU .2 g be r^ o n — -^ r. . A 'j\ 0^ - r: ^ s_> *< . uT C -J* ''^ ;2 8 X = :? ^ O ^ ■-' x. ± . - U '-• v. ji K JL - '- fiS Z . 'f: ^ X X U X ^. a: X as ~ . .< 1^ < r; 'O i:^ I 32 72 ^ hr ^ t •^ r :^ :/; S3 > J; ::: :S a: 5 «1 r- w -*: ^ W r ii 5 -4. 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