French v. Hay

Citations

• 89 U.S. 231
• 22 L. Ed. 799
• 22 Wall. 231
• 1874 U.S. LEXIS 1265

Syllabus

<p>In 1859 A. lent to B„, who was largely interested in an embarrassed railroad, $5000 to buy certain judgments against the road, and B. having bought, in 1859 and the early part of 1860, judgments to the amount of $31,000, assigned the whole of them to A., absolutely. Subsequently, that is to say in August, 1860, A. made a transfer (so called) of them to B., “uuon B.’s payment of $5000, with interest from this date;” and gave to B. a power of attorney of the same date, authorizing him “ for me and in'my name” to dispose of them as he might see proper. Held,</p> <p>1st. That the so-called transfer was executory, amounting, only to an offer that if B. would pay the $5000, B. should become owner of the judgments; and that B. having, in May, 1861, gone South and joined the rebels there, and not come back till 1865, could not in 1868 file a bill, and on an allegation that A. had collected the judgments, claim the proceeds, less the $5000 and interest.</p> <p>2d. That a bill making such an allegation and such a claim was demurrabie; the bill not being one of discovery, and the complainant having complete remedy at law.</p> <p>3d. That the road having been sold under a mortgage existing prior to the judgments and bought by A., who, under the laws of the State where it was, organized a new company, issued new stock, and having got, as an allotment to him, a quantity of such stock which he sold for more than enough to pay the judgments — on which satisfaction was then entered — such satisfaction was not in any sense a collection of the judgments.</p> <p>4th. That if it could be so considered, yet that the sale to A. having been judicially declared void, and set aside, and the old company thus brought again into existence, and B. so reinstated in his old ownership of his stock in it, unimpaired by the sale, he could claim no proceeds of the judgments from A., because, if they were ever his (B.’s) by virtue of the transfer and power of attorney, they remained his still, since