Peoples' Bank v. Alabama Great Southern Railroad

Citations

• 65 Miss. 365

Syllabus

<p>Privile&e License. Section 589, Code of 1880, considered. Case in judgment.</p> <p>W. delivered certain cotton to a railroad company for shipment, and then transferred the bill of lading to a bank. The creditors of W. sued out an attachment, and caused the cotton to be seized thereunder. The railroad company having failed to ship the cotton, the bank brought an action for' damages against the company to recover the value of the cotton. The latter pleaded that the bank at the time of the transfer ¡of the bill of lading was doing business without a sufficient privilege license, under “An Act in Relation to Public Revenue,” in the Code of 1880, and was, therefore, precluded from maintaining its action by Section 589, in that act, which provides that “ all contracts made with any person who shall violate this act, in reference to the business carried on in disregard of this law, shall be null and void so far only as such person may base any claim upon them; and no suit shall be maintainable in favor of such person on any such contract.” Held, that by the assignment of the bill of lading the bank acquired the title to the cotton; and the action being upon the contract made between W. and the defendant, and not upon the contract between itself and W., is maintainable (unaffected by the provision quoted), though the plaintiff derives title through a contract on which it could not have sued.</p>