PACIFIC RAILROAD
v.
UNITED STATES
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The Pacific Railroad Company sought interest on a judgment it had obtained against the United States, claiming it was entitled to interest under a federal statute when a judgment in its favor was affirmed on appeal. The Supreme Court held that by accepting payment of the principal judgment amount from the government in full satisfaction, the railroad had extinguished its claim to interest as an incident to the principal debt, and therefore could not subsequently recover interest. The Court established that when a claimant accepts payment of the principal amount "in full," it constitutes an acquittance barring further demands for incidental damages like interest.
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Mr. Justice Shiras delivered the opinion of the court.
As taking them out of the general rule excluding creditors of the government from recovering interest, the claimants point to section 1090 of the Revised Statutes, which reads as follows: “Incases where the judgment appealed from is in favor of the claimant, and the same is affirmed by the .Supreme Court, interest thereon at the rate of five per centum shall be allowed from the date of its presentation to the Secretary of the Treasury for payment as aforesaid, but no interest shall be allowed subsequent to the affirmance unless presented for payment to the Secretary of the Treasury as aforesaid.”
As the claimants themselves appealed from the first judgment of the Court of Claims, and did not appeal from the second judgment, it is plain that they are not within the express terms of the statute they rely on. The first judgment was not affirmed,' and the second judgment was not appealed from.
The contention that, inasmuch as the claimants brought the judgment of the court below into the Supreme Court for correction and there prevailed, they are within the fair meaning of the statute, is not without force; but we are relieved from its consideration by! the conduct of the claimants in accepting payment of their judgment under the act of February 1, 1888, c. 4, 25 Stat. 4, 24, the terms of which were as follows: “ To pay the judgment of the Court of Claims in favor of the Pacific Railroad eighty-five thousand three hundred and ninety-six dollars and twenty-four cents, being in addition to the sum of forty-four thousand eight hundred dollars and seventy-four cents, appropriated by the act approved August fourth, eighteen hundred and eighty-six, to pay a judgment in favor of' said Pacific Railroad, which two sums shall he in full satisfaction of the judgment in favor of the Pacific Railroad reported to Congress in the House Executive Document number twenty-nine, Fiftieth Congress, first session.”
In Stewart v. Barnes, 153 U. S. 456, this court held that when a person from whom an internal revenue tax had been illegally. exacted, accepted from the government the precise amount of the sum thus illegally exacted, he thereby gave up his right to sue for interest as incidental damages; and the case of Moore v. Fuller, 2 Jones, (Law,) 205, was cited, wherein the Supreme Court of North Carolina, said: “ The general principle is that when the principal subject of. a claim is extinguished by the act of the plaintiff, or of the parties, all its incidents go with it.
Thus, in an action of ejectment, if the plaintiff, pending the suit, takes possession of the premises, upon th,e plea of the defendant or upon its being shown, the plaintiff will be nonsuited. So, in an action pf detinue, if the plaintiff takes possession of the property claimed, he can recover no damages, for they are consequential upon the recovery of the thing sued for. ’ This is an action of debt on a' bond to recover the interest, the principal having been paid by the defendant before the bringing of the action: by that payment, the bond was discharged, and by analogy to the cases referred to, the plaintiff cannot recover the interest, which n's but an incident to the principal — the bond.”
To the same effect is the case of Tillotson v. Preston, 3 Johns. 229, which was an áction of assumpsit for money had and received. In addition to the general issue, there was a plea of payment of the sums mentioned in the declaration. To this plea of payment the plaintiff demurred specially, alleging for one ground of demurrer that the plea did not allege that the defendant had paid to the plaintiff the interest. The court said : “ The demurrer is not well taken. If the plaintiff has accepted the principal, he cannot afterwards bring an action for the interest.”
See, likewise, the case of De Arnaud v. United States, 151 U. S. 483, where it was held that the receipt by a claimant against the United States for a sum less than he had claimed, paid him by the disbursing agent of a department, “ in full for the above account,” is, in the absence of allegation and proof that it was given in ignorance of its purport, or in circumstances constituting duress, an acquittance in bar. of any further demand — citing Baker v. Nachtrieb, 19 How. 126, and United States v. Childs, 12 Wall. 232.
The judgment of the court below, dismissing the plaintiff’s petition, is
Affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
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ST. Louis v. United States, 268 U.S. 169 (U.S. 1925)…154 U. S. 564; United States v. Morgan, 154 U. S. 565. Baird v. United States, 96 U. S. 430; Murphy v. United States, 104 U. S. 464. Savage v. United States, 92 U. S. 382, 388. Stewart v. Barnes, 153 U. S. 456; Pacific Railroad v. United States, 158 U. S. 118. Baird v. United States, 96 U. S. 430, 432. Eastern R. R. Co. v. United States, 129 U. S. 391; Chicago, Milwaukee & St. Paul Ry. v. United States, 198 U. S. 385; Atchison, Topeka & Santa Fe Ry. Co. v. United States, 225 U. S. 640, 650; Delaware, L…
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United States v. Steinberg, 100 F.2d 124 (2d Cir. 1938)…and we proceed to the merits. The general rule is that payment of principal forfeits interest, unless the obligor has expressly promised to pay it. Stewart v. Barnes, 153 U.S. 456, 14 S.Ct. 849, 38 L.Ed. 781; Pacific Railroad Co. v. United States, 158 U.S. 118, 15 S.Ct. 766, 39 L.Ed. 918; Rice v. Eisner, 2 Cir., 16 F. 2d 358, 361. Did it make any difference that the bond was payable serially and that all the payments were made at times when several installments were past due? So far as the obligor’s inten…
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P. W. Brooks & Co., Inc. v. N.C. Pub. Serv. Co., 37 F.2d 220 (4th Cir. 1930)…not to be paid out unless the bonds, with all rights thereunder, were surrendered for cancellation. Having accepted money deposited for such purpose, plaintiff will not be heard to assert rights inconsistent therewith. See Pacific Railroad v. U. S., 158 U. S. 118, 15 S. Ct. 766, 39 L. Ed. 918; White Oak Coal Co. v. United States (C. C. A. 4th) 15 F.(2d) 474, 477, 479. And the effort on the part of plaintiff to preserve rights under the bonds, by protesting its right of conversion while demanding and receivin…1 / 2
Authorities Cited
- De Arnaud v. United States, 151 U.S. 483 (U.S. 1894)
- Stewart v. Barnes, 153 U.S. 456 (U.S. 1894)
- United States v. Child & Co., 12 Wall. 232 (U.S. 1870)
- Romelius L. Baker and Jacob Henrici v. Nachtrieb, 19 How. 126 (U.S. 1856)