BIRGE-FORBES COMPANY
v.
HEYE
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Heye, a cotton broker in Bremen, sued Birge-Forbes Company, a Texas cotton exporter, to recover payments Heye had made to satisfy arbitration awards against cotton sold on Birge-Forbes's behalf that allegedly failed to meet contractual specifications. The Supreme Court affirmed judgment for Heye, holding that a prior judgment regarding the same arbitration awards was conclusive as to their validity, and that Heye's status as an alien enemy following the declaration of war against Germany did not bar recovery so long as the judgment proceeds were paid to the Alien Property Custodian.
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Mr. Justice Homes delivered the opinion of the court.
This is a suit by Heye, a cotton broker in Bremen, against the petitioner, a cotton exporter in Texas, to recover sums that Heye had to pay on its account. The payments were made upon cotton sold by Heye as the petitioner’s agent, to different buyers, for alleged failure of the cotton to correspond to the description upon which the price was based. In pursuance of the contracts and the rules of the Bremen Cotton Exchange the claims of the buyers were submitted to arbitration, which resulted in awards against the plaintiff for a total of 312,749.30 German marks, alleged to be equal to about $74,820.52. Before the present suit was brought another one had been carried to judgment in the same district, in which that amount was claimed. At that time Heye had paid only $36,610.96 of the awards. The judge directed a verdict for the sum that the plaintiff had paid and another item not now in issue. Heye now has paid the whole and brings this suit to recover the amount of the later payment not embraced in the former judgment. He prevailed in the District Court, and the judgment was affirmed with a modification as to payment by the Circuit Court of Appeals. 248 Fed. Rep. 636. 160 C.
C. A.
536. The main question on the merits is whether , the former judgment was conclusive as to the validity of the awards, but that upon which the certiorari was granted was a preliminary one, as . is shown by the fact that certiorari was denied in the former suit, 234 U. S.
759. After the case had been taken to the. Circuit Court of Appeals a motion was made to dismiss or suspend the suit on the ground that Heye had become an alien enemy by reason of the declaration of war between Germany and the United States. The Circuit Court of Appeals, however, affirmed the judgment with the modification that it should be paid to the clerk of the trial court and by him turned over to the Alien Property Custodian,, with further details not material here.
Upon the last-mentioned question, although it seemed proper that it should be set at rest, we can feel no doubt. The plaintiff had got his judgment before war was declared, and the defendant, the petitioner, had delayed the collection of it by taking the case up. Such a case was disr posed of without discussion by Chief Justice Marshall speaking for the Court in Owens v. Hannay, 9 Cranch, 180. Kershaw v. Kelsey, 100 Massachusetts, 561, 564. There is nothing “mysteriously noxious” (Coolidge v. Inglee, 13 Massachusetts, 26, 37) in a judgment for an alien enemy. Objection to it in these days goes only so far as it would give aid and comfort to the other side. Hanger v. Abbott, 6 Wall. 532, 536. M’Connell v. Hector, 3 B. & P. 113, 114. Such aid and comfort were prevented by the provision that the sum recovered should be paid over to the Alien Property Custodian, and the judgment in this respect was correct. When the alien enemy is defendant justice to him may require the suspension of the case. Watts, Watts & Co. v. Unione Austriaca di Navigazione, 248 U. S. 9, 22.
On the merits the first question is whether the former judgment was conclusive as to the validity of the awards, assuming them to have been identified as the same that were sued upon in the former case. Taking merely the former declaration and judgment it could not be said with certainty that some of the awards might not have been held invalid and that the defendant had not satisfied the. whole obligation found to exist. But wé have before us the fact that the Court directed a verdict and the charge. From the latter, as also from the answer, apart from a general denial, it appears that the awards were dealt with as a whole and that the objections to them were general. The objections were overruled, and the Court assumed that the awards were obligatory, but cut down the amount to be recovered to the sum that had been paid. The case went to the Circuit Court of Appeals and the same things appear in the report of the case there. 212 Fed. Rep. 112. 128 C.
C. A. 628. (Certiorari denied. 234 U. S. 759.) In the present case both parties moved the Court to . direct a verdict. Beuttell v. Magone, 157 U. S. 154, 157. Empire State Cattle Co. v. Atchison, Topeka & Santa Fe Ry. Co., 210 U. S. 1, 8. Taking that and the fact that the same judge seems to have presided in both suits into account we should be slow to disturb his decision that the issue was determined in the former one if we felt more doubt than we do. But we are satisfied the decision of the two Courts below was right.
We shall deal summarily with two or three highly technical arguments urged against the affirmation of the judgment. One is that the depositions of Heye and a witness were not returned as required by the Texas statute providing for taking them, with a suggestion that, as Heye was a party, his depositioii could not be taken at all. As to the latter point it is to be noticed that it did not,present an attempt -to fish for information from the opposite party and that an agreement was made that “time, notice and copy aré hereby waived,” and that the “officer may proceed to take and return the depositions of the witness on the original direct and cross interrogatories, but commission is not waived.” Whatever may be the general rulej (as to which see Blood v. Morrin, 140 Fed. Rep. 918,) we think that this objection is not fairly open. As to the mode of return not having followed strictly the Texas statute, because the officer to whom the commission was directed did not put the depositions into the mail and certify on the envelopes that he had done so, a sufficient answer is that that course was impossible owing to the war, and that the officer did transmit the depositions in the only practicable way. He gave them to an American consul and had them transmitted to the Department of State and then through the mail to the clerk. The integrity of the depositions is not questioned, the statute was complied with in substance, and justice is not to be defeated now by a matter of the barest form.
We see no error in the finding that § 477 of the German Civil Code did not bar the claim. Assuming the question to be open the Court was warranted in finding that a six months’ limitation to claims for defect of quality did not apply where the claims had been submitted to arbitration and passed upon. The same is true with regard to the taking the value of the German mark at par in. the absence of evidence that it had depreciated at the time of the plaintiff’s payments. On the whole case our conclusion is that the judgment should be affirmed.
Judgment affirmed.
Cases With Similar Vibessemantic neighbors from the corpus
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Hicks v. Guinness, 269 U.S. 71 (U.S. 1925)
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Ex parte Kumezo Kawato, 317 U.S. 69 (U.S. 1942)…Even if petitioner were a non-resident enemy alien, it might be more appropriate to release the amount of his claim to the [*75] Alien Property Custodian rather than to the claimants; and this is precisely what was done in Birge-Forbes Co. v. Heye, 251 U. S. 317, 323, in which this Court said that the sole objection to giving judgment for an alien enemy “goes only so far as it would give aid and comfort to the other side.” The ancient rule against suits by resident alien enemies has survived only so far as…
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Sutherland v. Mayer, 271 U.S. 272 (U.S. 1926)…568-574, where the question is elaborately reviewed in an opinion by Mr. Justice Gray which has several times received the approval of this court; Briggs v. United States, supra, p. 353; Williams v. Paine, 169 U. S. 55, 72; Birge-Forbes Co. v. Heye, 251 U. S. 317, 323. Thus, where a contract has been performed before the advent of war and nothing remains but the payment of money, the right to-collect is not destroyed, but only the remedy suspended until the termination of the war. Hanger v. Abbott, 6 Wall.…
Previewing 3 of 10 citing cases — full citator treatment, depth of discussion, and citing context are member features.
Join FLexlaw to unlock all legal intelligenceAuthorities Cited (11 total)
- Union Pac. Ry. Co. v. Botsford, 141 U.S. 250 (U.S. 1891)
- Russell v. Place, 94 U.S. 606 (U.S. 1876)
- Beuttell v. Magone, 157 U.S. 154 (U.S. 1895)
- Empire State Cattle Co. v. Atchison, 210 U.S. 1 (U.S. 1908)
- Watts v. Unione Austriaca di Navigazione C., 248 U.S. 9 (U.S. 1918)
- Consol. Rendering Co. v. The State of Vt., 207 U.S. 541 (U.S. 1908)
- Hanks Dental Ass'n v. Int'l Tooth Crown Co., 194 U.S. 303 (U.S. 1904)
- Hanger v. Abbott, 6 Wall. 532 (U.S. 1867)
- Smiley v. Kansas, 196 U.S. 447 (U.S. 1905)
- Lumber Co. v. Buchtel, 101 U.S. 638 (U.S. 1879)