Page images
PDF
EPUB

Western Ry. Co., 3 Ct. Sess. Cas. (4th series) 215. In America it has been followed in the courts of some States, but it has often been departed from, and upon the whole the view taken has been decidedly adverse to it. The latest case that I am aware of in that country is Little v. Hacket, 9 Davis (Sup. Ct. U. S.), 366. That was a decision of the Supreme Court of the United States, whose decisions, on account of its high character for learning and ability, are always to be regarded with respect. Field, J., in delivering judgment, examined all the English and American cases, and the conclusion adopted was the same as that at which your lordships have arrived. I have only this observation to add: The case of Waite v. North-Eastern Ry. Co., E. B. & E. 710, was much relied on in the argument for the appellants, but the very learned counsel who argued that case for the defendants, and all the judges who took part in the decision were of opinion that it was clearly distinguishable from Thorogood v. Bryan, and did not involve a review of that case. I think they were right. As regards the other questions argued before your lordships, I have only to say that I think they were properly dealt with by the court below. I am requested by my noble and learned friend, Lord Bramwell, who was unable to remain to read the opinion which he had prepared, to state that he concurs in the motion which I am about to make. I move your lordships that the judgment of the Court of Appeal be affirmed, and the appeal dismissed, with costs.

question with the driver or owner of the other omnibus which ran over him and was the immediate cause of his death. Coltman and Cresswell, JJ., express themselves in terms, which if literally understood, would lead to the conclusion that he would also have been responsible for damage solely attributable to the fault of the driver. Coltman, J., said: "Having trusted the party by selecting the particular conveyance the plaintiff has so far identified himself with the owner and her servants, that if any injury results from their negligence he must be considered a party to it." Maule, J., was careful to limit his observations to the case before him. "I incline to think," said the learned judge, "that for this purpose (i. e., recovering damages from the defendant) the deceased must be considered as identified with the owner of the omuibus in which he voluntarily became a passenger, and that the negligence of the driver was the negligence of the deceased." I do not think the very eminent judges who decided Thorogood v. Bryan intended to affirm that the deceased, by taking his seat in the omnibus, incurred the same responsibility for the negligent acts of the driver as if the latter had been his servant. If they did mean to do so their conclusion might be perfectly logical, but their premises would be directly at variance with the principles laid down in Quarman v. Burnett, 6 M. & W. 489, which I have always regarded, and still regard, as a sound and authoritative precedent. If they did not, then they have affirmed that a passenger, travelling by a public conveyance, may be so unconnected with the driver as to be exempt from liability for his negligence, and yet be so identified with him as to lose all right of action against wrongdoers whose negligence, in combination with that of the driver, has occasioned personal injury to himself. This is a proposition which it is very difficult to understand. It must be a singular kind of relationship, and created by very exceptional circumstances, which results in the superior being affected by his inferior's negligence, in a question with wrong-doers, and not in a question with persons who are themselves free from blame. It humbly appears to me that the identification upon which the decision in Thorogood v. Bryan is based has no foundation in fact. I am of opinion that there is no relation constituted between the driver of an omnibus and its ordinary passengers which can justify the inference that they are identified to any extent whatever with his negligence. He is the servant of the owner, not their servant; he does not look to them for orders, and they have no right to interfere with his conduct of the vehicle, except perhaps the right of remonstrance when he is doing, or threatens to do, something that is wrong and inconsistent with their safety. Practically they have no greater measure of control over his actions than the passenger in a railway train has over the conduct of the engine driver. I am therefore unable to assent to the principle upon which the case of Thorogood v. Bryan rests. In my opinion an ordinary passenger by an omnibus, or by a ship, is not affected, either in a question with contributory wrong-doers or with Innocent third parties, by the negligence in the one case of the driver and in the other of the master and crew by whom the ship is navigated, unless he actually assumes control over their actions, and thereby occasions mischief. In that case he must of course be responsible for the consequences of his interference. Counsel for the appellants endeavored to support Thorogood v. Bryan upon a totally different principle from that assigned by the learned judges who decided the case. They argued alternately that the maxim respondeat superior does not apply, and that passengers are affected by the wrongful acts of the drivernot because he is in any sense their servant, or subject to their control, but by reason of their being for the

Lord WATSON. My Lords: The appellants conceded in argument that unless it can be shown that Thorogood v. Bryan, 8 C. B. 115, is a valid precedent, they cannot succeed in this appeal. Although nearly forty years have elapsed since that case was decided, I think the rule which it established must still be dealt with upon its own merits. The decision has not met with general acceptance, and it cannot be represented as an authority upon which a course of practice has followed, or upon which persons guilty, or intending to be guilty, of contributory negligence are entitled to rely. When the combined negligence of two or more individuals, who are not acting in concert, results in personal lujury to one of them, he cannot recover compensation from the others for the obvious reason that but for his own neglect he would have sustained uo harm. Upon the same principle, individuals who are injured without being personally negligent are nevertheless disabled from recovering damages if at the time they stood in such a relation to any one of the actual wrong-doers as to imply their responsibility for his act or default. That constructive fault, which implies the liability of those to whom it is imputable to make reparation to an innocent sufferer, must also have the effect of barring all claims at their instance against others who are in pari delicto, is a proposition at once intelligible and reasonable. If they are within the incidence of the maxim, qui facit per alium facit per se, there can be no reason why it should apply in questions between them and the outside public, and not in questions between them and their fellow wrongdoers. But the facts which were before the court in Thorogood v. Bryan do not appear to me to bring the case within that principle. My noble and learned friend, Lord Bramwell, who is so conversant with the intricacies of English pleading, suggested in the course of the argument a technical ground upon which the decision in Thorogood v. Bryan might be justified. In that view the case would not be an authority for the appellants, who accordingly supported the reason assigned for the judgment, which was simply this, that the deceased passenger, by taking the seat on the omnibus, became so far identified with its driver that the negligence of its driver was imputable to him in any

time under his dominion. Waite v. North-Eastern Ry. Co., E. B. & E. 719, was the authority relied on in support of this branch of the argument. But there is no analogy between the position of au infant incapable of taking care of itself and that of a passenger sui juris; and the theory that an adult passenger places himself under the guardianship of the driver, so as to be affected by his negligence, appears to me to be absolutely without foundation, either in fact or law. I therefore concur in the judgment which has been moved.

Lord MACNAGHTEN. My Lords: I concur in the motion which has been proposed and in the reasons upon which it has been founded.

Order appealed from affirmed, and appeal dismissed with costs.

NEW YORK COURT OF APPEALS ABSTRACT.

ASSOCIATIONS-STOCK EXCHANGES-FORFEITURE OF SEAT-DISTRIBUTION OF PROCEEDS.-Where the constitution of a stock exchange, under which each member binds himself in respect to the manner of his transaction of business, and of his right to continue in membership, provides that when one has lost his membership or seat, the proceeds of the sale of such seat may, by force of constitutional provision, be appropriated to his creditors in the exchange, or to any of the corporate objects of the association, a member, who by offending against the laws of the exchange, may have forfeited his seat, has no further interest or title in it or its proceeds; and the privilege of membership having only been conferred upon him ou condition that all the rights should revert to the exchange on the happening of certain events, he having assented to the rules of the association, cannot be heard to complain of them as being against public policy, nor can his assignee. When membership and the rights belonging to that status were conferred upon him, the gift was accompanied by a condition that the rights, of whatever nature, should revert to the association upon the happening of certain events; and he cannot be heard to complain, nor can third persons claiming to derive under him. He should be held to his contract, which was reasonable, and when entered into, prejudiced no rights of others, or conflicted with no statutory or common-law right. A person acquires by his admission to membership only such rights as the constitution and by-laws of the association give him, and upon ceasing to be a member, by the competent judgment of the governing committee, he ceases to have any further concern or interest in the association, except it is given by its laws. The New York Stock Exchange, by the accumulation of a great fund from a large membership, by the wise and successful management of the members, and by the acquisition of valuable facilities for the transaction of business, has given to membership an important pecuniary value. It is fair to presume that this prosperity and success were in an important degree due to the regulations adopted looking to the conduct by a member of his business, and the restraints imposed upon reckless or dishonest methods. Membership may be property, but it is not property in every sense. If it is property, it is incumbered with conditions, when purchased, without which it could not be obtained. Hyde v. Woods, 94 U. S. 523. By the constitution of this association the powers of government are vested in a governing committee, whose decision, after the trial of a member for offenses under its laws, is final. Standing committees are appointed by them, and that on insolvencies is charged with the duty of immediately investigating every case of insolvency, and to report whether the

same was occasioned by reckless dealing, or by doing business for improper parties. Should the governing committee, upon this report, determine that a member's failure was caused by doing business in a reckless and unbusiness-like manner, he may be declared ineligible for readmission by a majority vote of the entire governing committee. As we have before seen, the rules of the association were an incident to the rights acquired by a person upon admission; and one of those rules was that for conviction of an offense against or under the laws of the exchange, a suspended member might be deprived of right to readmission to membership. When expelled, he ceases to have any interest in the association. His privilege to transact his business at that place has been lost. The association may fill the vacancy caused by his expulson or not, as they please. They cannot be compelled to do so; but if they elect to admit a new member, and can derive from SO doing any profit that is their unquestionable right with the exercise of which others are not concerned. They may do with their own as they like. The right is given to a member in good standing to propose for admission in his stead some one acceptable to the committee on admissions, and any profit he derives from his negotiations with the candidate is his. So if a member becomes honestly insolvent, and fails to qualify under the rules for readmission, or if he dies after the claims of the association are discharged, the proceeds may be paid to him or his legal representatives, as the case may be. But in the case of a member, who by misconduct cognizable by the laws of the association, forfeits his right to continue to remain a member, there is reserved by the constitution the right to dispose of his membership. These rules are reasonable, and do not contravene any rule of public policy, and having been consented to by the plaintiff's assignor, deprived him of any interest or rights in the association, of which he has ceased to be a member. June 5, 1888. Belton v. Hatch. Opinion by Gray, J.

[ocr errors]

BANKS-DRAFTS-BILLS OF LADING.- Defendants authorized plaintiff, a foreign bank, to allow a foreign firm to draw for defendants' account against a certain number of bales of Manilla hemp, to be purchased and shipped by a certain vessel, advice to be given plaintiff, accompanied by a bill of lading, with abstract of invoice indorsed thereon for the property shipped. Plaintiff accepted, and cashed drafts against "bales of hemp." An abstract of invoice for bales of Manilla hemp" was indorsed on each bill by the consignor after it had been signed hy the captain, but without his knowledge. A letter of advice described the shipment as "bales of hemp." The foreign firm failed and absconded, and most of the shipment proved to be matting only, the rest being Manilla hemp. Held, that plaintiff cannot recover of defendauts the amount paid on the drafts accepted against the matting. Letters of credit are governed by the same general legal principles as are all contracts. In Orr v. Bank, 1 Macq. H. L. Cas. 513, Lord Brougham said of them: "I am inclined to think that there is no very great novelty or peculiarity in letters of credit to take them out of the general law applicable to mandates. I am not aware that there is any thing in the mercantile law, or the custom of merchants, to distinguish letters of credit from any other authority to pay money." In this case the peculiarity of the credit extended by the plaintiff to Vogel & Co., at the defendants' request, is that besides being special, in that it was addressed to a particular banking agency, was confined to it, and gave no other party a right to act upon it, it restricted the drafts drawn under it to a particular purpose, which should be vouched for in a certain manner to authorize acceptance and payment.

Under the agreements effected between the plaintiff and the defendants for the extension of the credit to Vogel & Co., the defendants only became liable to plaintiff to provide for drafts accepted by its London agents within the precise terms upon which the credit was opened. The credit was authorized upon certain conditions prescribed by the parties to be ultimately bound, which they not only had the right to make, but which were assented to by the plaintiff. It is difficult to see how parties could more particularly define the terms of their engagements than was done in this case. By the proper construction of the agreement between them, the plaintiff was not bound to accept any drafts unless they were against Manilla hemp shipped by Vogel & Co. to defendants by the ship Robinson, vouched for as to each of those facts, and the stipulated costs, etc., by documents consisting of a letter of advice and a bill of lading; and the defendants were not bound to provide for or to take up any other kind of drafts. Each party was held to either accept or to provide for drafts, as the case might be, if they were accompanied by those mercantile documents evidencing the consignment of Manilla hemp in the particular manner, aud at the rates of cost and freight specified. In making their arrangements with the plaintiff, the defendants had the right to surround themselves as to their advances through the plaintiff's agency, with all the safeguards which the nature of the case admitted. The effect of their stipulating in respect of acceptances by plaintiff of Vogel & Co.'s drafts was to protect themselves, as far as was possible, against any unauthorized acts of Vogel & Co. Every lawful provision or condition in the contract of parties should control, and should not be disregarded in the determination of their rights, if it can be deemed to have entered into the contract with any definite or perceptible purpose. In interpreting their agreements, and in determining their respective obligations based upon their writings, courts should look at the surrounding circumstances, the situation and relations of the parties, and the subject-matter of their negotiations. In that way the intention, where there is any uncertainty, is better given effect, and their undertaking is more certain to receive a reasonable and fair interpretation. But when the agreement is determined into which the parties have entered, it is but just and fair that they should be held strictly to it, and all their stipulations we should assume to have been made, for a purpose, and to have been considered important by them, and therefore cannot be dispensed with. Hill v. Blake, 97 N. Y. 216. In Bank v. Taaks, 101 N. Y. 442, Andrews, J., speaking of the effect of a letter of the defendants, undertaking to accept the drafts of certain parties, said (page 449): "Assuming that it was a general letter of credit, * * * it nevertheless amounted simply to a contract on the part of Taaks & Lichtenstein to pay advances made in conformity therewith. They had a right to stand upon the very terms of their contract, and they were not bound unless the condition upon which their obligation depended was fulfilled." In Bank v. Griswold, 72 N. Y. 472, Church, C. J., said (page 479): "It is doubtless true that when the right to draw is limited in amount, or is dependent upou the condition of the performance of some act, or that certain facts exist, it must appear that the draft was within the limit, or that the act constituting the condition has been performed, or the facts exist." The principle is urged by the appellants that all commercial instruments are to be liberally interpreted, so as to protect persons who give credit on the faith of them. Lawrence v. McCalmont, 2 How. 449; Gates v. McKee, 13 N. Y. 235; Bank v. Myles, 73 id. 341. But that principle only applies where the provision of an agreement are ambiguous, loose, or susceptible of

more than one fair interpretation, and we do not think that is the case here. We do not see the force in the argument that no other bill of lading could be demanded than was given here. The master of a ship is the general agent of the owners to perform all things relating to the usual employment of his ship, and among other things, to sign bills of lading for goods put on board, and acknowledge the nature, quality and condition of the goods. 1 Pars. Cont. (5th ed.) 45. That was possible to be done in this case; for a bale of Manilla hemp is not covered, as the trial court found on the evidence, and the shipper might have procured a bill of lading which would have indicated the kind of hemp put on board the ship. But whether the master could be compelled or not to identify in the bill of lading the merchandise shipped as Manilla hemp, that fact cannot control the disposition of this case. The agreement of the parties called for a particular statement in the bill of lading to accompany the drafts; and that statement, or the existence of facts which would have authorized it, is a condition precedent to defendants' responsibility to respond to plaintiff's demand. June 5, 1888. Bank of Montreal v. Recknagel. Opinion by Gray, J.

CORPORATIONS-STOCK -SUBSCRIPTION CONTRACT TO PURCHASE-FRAUD.-Where a company issues a prospectus reciting that certain of the principal stockholders have deposited a number of shares of stock with a trustee, the proceeds of which, except $50,000, were to be used as working capital, and that a portion of said shares have been ordered to be sold for that purpose and to pay a prior lien, and the subscription paper attached stipulates that the subscriptions for said stock shall not be binding until the whole number of shares are "reliably subscribed," an agreement by some of said principal stockholders that if plaintiff will subscribe for said stock they will, if he wishes, buy it from him after a year at the cost price, is no fraud on the co-subscribers. The cases mainly relied upon to support the claim that the contract was illegal and fraudulent are of two classes; cases of stock subscriptions to the stock of corporations, accompanied by a secret agreement between the company and the subscriber that the latter should not be bound by his subscription, or changing, in some other respect, its ostensible terms; and cases of composition between a debtor and his creditors, where a creditor, joining in the composition by a secret arrangement with the debtor, secures an advantage over other creditors, in violation of the understanding implied in all cases of compositions that the settlement with the creditors joining in the composition proceeds exclusively upon the terms of the common agreement. In both classes of cases mentioned, the collateral agreement is held to be void. In the first, the courts hold the subscriber to the ostensible contract, and permit it to be enforced in an action by the company, as the only means of preventing the consummation of the fraudulent scheme, and protecting the other subscriber. Railroad Co. v. Eastman, 34 N. H. 124. In the other class the court refuses to enforce the secret bargain, and confines the creditor, who is a party to the fraud, to a remedy to recover the sum which, by the terms of the composition, he agreed to accept. White v. Kuntz, 107 N. Y. 518. The case of Railroad Co. v. Eastman, supra, is a leading case, illustrating the class of cases first mentioned. The doctrine that an agreement between one subscriber to the stock of a corporation and the company, made concurrently with the making of the subscription, which purports to annul its obligation, or materially limit and change the liability of the subscriber, to the detriment of the company, is invalid and void, is founded upon the construction that a subscription to the stock of a corporation whose stock is open for general subscription is

66

not only an undertaking between each subscriber and the company, but between him and all other subscribers to the common enterprise, and that each subscriber has the right to suppose that the subscription of every other subscriber is a bona fide undertaking according to its terms. "Their respective subscriptions," say the court in the case of Railroad Co. v. Eastman, are contributions or advances for a common object. The action of each in his subscription may be supposed to be influenced by that of the others, and every subscription to be based on the ground that the others are what upon their face they purport to be." See also Graff v. Railroad Co., 31 Penn. St. 489; Miller v. Railroad Co., 87 id. 95; Melvin v. Insurance Co., 80 Ill. 446. The illegality of secret agreements in case of composition between debtor and creditor has been established by a uniform course of decision, upon the plainest principles of morality and justice. A composition agreement, still more than a stock subscription, is an agreement as well between the creditors themselves as between the debtor and his creditors. Secret agreements in fraud of the composition are usually extorted by the creditor as a consideration of his entering into the composition. They are a direct fraud upon the other creditors. They contradict the representation which the composition imports, that the compromise is accepted by each creditor in full satisfaction of his debt. Moreover where the composition provides for giving credit to the debtor for the amount to be paid on the composition, such secret agreements take or may take from him the very means to meet the composition engagements. It is unnecessary to cite authorities to sustain a doctrine so well settled. We refer to some cases showing that the courts in these transactions exact the most scrupulous good faith from all parties. Russell v. Rogers, 10 Wend. 474; Solinger v. Earle, 82 N. Y. 393; Knight v. Hunt, 5 Bing. 432; Leicester v. Rose, 4 East, 372. The present case is not, we think, within the principle of the stock subscription cases and the cases of composition to which reference has been made. The main object of the company in offering the stock for sale was to secure "working capital," as is shown by the prospectus. This object was known to the subscribers. If the subscription of the plaintiff was a pretense merely, or if the subscription had been accompanied by a secret agreement between the plaintiff and the company that he should be relieved from the subscription, or by which the terms of the purchase were materially changed to the disadvantage of the company, and for the advantage of the plaintiff, there might be ground for applying the rule declared in the subscription cases, and declaring the transaction to be a fraud on the other subscribers. By the terms of the subscription the subscribers were not to be bound unless the whole 6,000 shares were liably subscribed;" and a subscription not available to the company by reason of a secret agreement accompanying it, would not be a reliable subscription within the meaning of the condition. But there was no agreement between the company and the plaintiff, secret or otherwise, direct or indirect, except the agreement contained on the face of his subscription. The plaintiff by his subscription became bound to the company to take the shares subscribed for, and this agreement has never been discharged or in any way impaired. The plaintiff remained bound by his subscription, notwithstanding the agreement with the defendants, as fully and completely as though the agreement with the defendants had never been made. Nothing has occurred to change, qualify or limit his obligation to the company. The company sold the shares to secure working "capital." The subscription of the plaintiff, entered with the other subscriptions, secured the accomplishment of the object. The condition of the subscriptions, that the whole 6,000 shares

re

had been "reliably subscribed," was fulfilled. It was so conceded on the trial. The defendants were interested in setting the company afoot. They were the principal holders of the stock. Presumably they had confidence in the value of the new process for manufacturing iron and steel, covered by their invention. They sought out the plaintiff. On his declining at first to subscribe to the stock of the company, they offered him the inducement that they would take the stock off his hauds within a year, at cost price, if he desired it. It appears that the same inducemet was offered to other subscribers, but not to all. We think there was nothing illegal in this arrangement. There was no community of action between the subscribers. Each subscribed for such reasons as satisfied him. It is supposable that some subscribers may have been in fluenced by the fact that other persons known to them, in whose business judgment they had confidence, had also subscribed. But we think it would too greatly interfere with the freedom of contract to hold, that for this reason a subscriber could not enter into an agreement with third persons, at the time of the subscription, to the effect that the latter should assume the risk of the enterprise; there being no actual fraud, and the relations between the subscriber and the company remaining unchanged. Adams v. Outhouse, 45 N. Y. 318. June 5, 1888. Meyer v. Blair. Opinion by Andrews, J.

CRIMINAL LAW-FORMER JEOPARDY-NEW TRIAL AFTER REVERSAL.-Under the New York Penal Code, $ 30, providing that one acquitted or convicted of a crime consisting of different degrees cannot thereafter be indicted or tried for the same crime in any other degree; and sections 464 and 544, providing that the granting of a new trial places the parties in the same position as if no trial had been had, and that the trial shall proceed on that basis-on who has been indicted for assault in the first degree, and convicted of assault in the third degree, and on appeal has obtained a reversal for errors in the trial, is triable again for assault in the first degree, since his former conviction does not amount to an acquittal as to that degree, and by bis appeal from it he waived his right to plead it in bar to the new trial for which he asked. These provisions of the statute are clear and explicit, in nowise contravene the letter or the spirit of the fundamental law, and their meaning should not be perverted. It would be a grievous miscarriage of justice, and the intent of the law would be thwarted, if it should be held that a reversal, upon a previous appeal, for errors of law upon his trial, had the effect of putting it out of the power of the people to further try him under the indictment when his guilt might be competently established. We do not think such is the result. The effect of the defendant's appeal is merely to continue the trial under the indictment in the appellate court, and if reversal of the judgment of conviction follows, that judgment, as well as the record of the former trial, have been annulled and expunged by the judgment of the appellate court, and they are as though they never had been; while the indictment is left to stand as to the crime of which the prisoner had been charged and convicted as though there had been no trial. Only where the result of the former trial was in effect an acquittal of another crime charged in the indictment may he plead that result in bar of further prosecution for that crime. If the defendant takes an appeal from the judgment of conviction, he must be deemed to ask for a correction of errors made upon his trial, and to waive his constitutional protection. Of necessity he must be deemed to ask for a new trial. By taking the appeal to the Supreme Court power is conferred upon that court to continue and review the prisoner's trial, and upon a reversal to pronounce such judgment as it deems just within the terms of the statute. It may

affirm the proceedings below, or reverse, and either order a new trial or discharge the prisoner. That no constitutional right of the party is invaded must be a self-evident proposition, or it is a privilege which is granted, of which he may, but not must, avail himself. I think that the sounder doctrine which recognizes a distinction between jeopardy incurred with the consent of the prisoner and jeopardy incurred without that consent. We hold that the jurisdiction of the Oyer and Terminer to try the defendant again under his indictment is not affected. The offense charged was within its jurisdiction, and the judgment of the trial court having been reversed for errors committed on the trial, the case stands as though there had been no trial. The verdict is expunged, and there is no determination in regard to the matter but the judgment of the appellate court. The defendant must go back and stand his trial under the indictment, as thought he had never been tried; for he himself has renounced the bar which was effective to prevent his further trial for the offense charged. June 5, 1888. People v. Palmer. Opinion by Gray, J.

MASTER AND SERVANT-NEGLIGENCE OF FELLOWSERVANT.-Plaintiff was injured while in defendant's employ, the accident being due to the dullness of a circular saw and the need of its being reset. The employers had provided sharp saws to replace dull ones, and a co-servant, whose duty it was to sharpen and reset saws when dull, had failed to do so on this occasion, though requested by plaintiff. Held, that defendant was not liable. June 5, 1888. Webber v. Piper. Opinion by Finch, J.

MUNICIPAL CORPORATIONS--PUBLIC IMPROVEMENTS -ESTIMATES-COLLUSION-REMEDY.-Under the New York act of 1873, chap. 335, § 91, all contracts for work to be done in New York city involving an expenditure of more than $1,000 must be let to the lowest bidder, in a manner fixed by ordinance of the common council; and it was established by ordinance that in all such cases the commissioner of public works should issue proposals, and advertise for bids, and when necessary cause a survey of the work to be made by a competent engineer, and that the advertisement should state as near as possible the quantity and quality of work done. Held, that an estimate which was only a random guess, and placed the amount of stone excavation at more than double, and earth excavation at less than one-half the actual amount, did not form a basis for a valid contract. Such estimates, taken in connection with a bid of over five times the actual worth for earth-work, and less than 1% percent of the actual cost of stone-work, thus showing on its face as the lowest, but really nearly the highest, raises a just inference that the contract was the result of fraud and collusion. In such a case, under the Laws of New York of 1880, chap. 550, § 12, which provides that no court shall have power to vacate or reduce an assessment for any local improvement in New York city, except to reduce an assessment to the extent the same may have been increased by reason of fraud or substantial error, a property-owner may have his assessment reduced the full amount which it exceeds the actual cost of the improvement. It is not needful for us to find that there was actual fraud, but it is sufficient that all the facts of the case were such as justified an inference of fraud in the court below. The case of Protestant Episcopal Public School, 75 N. Y. 324, is not an authority for the city in this case. do not hold that every unbalanced bid is per se fraudulent, or evidence of substantial error. An unbalanced bid that does not materially enhance the aggregate cost of the work cannot be complained of. If there is no deception or mistake as to the quantities and if the ordinances have fairly been complied with, and the quantity and quality of the work has been es

We

timated as nearly as practicable, there is no ground for alleging substantial error merely because of an unbalanced bid under which the contract was let, and if the cost of the work has not thereby been enhanced there is no ground for alleging fraud. In the case cited it had been determined that the contract was free from fraud. The case of Brady v. Mayor, 20 N. Y. 312, is not a precise authority for the petitioner, but the grounds of the decision are sufficient to sustain this contention. The petitioner has a strong equity for the reduction of this assessment. He has no benefit whatever from the excessive amount paid to the contractor, and there is no reason why that amount should fall upon him or his lots. The city, in making street improvements, the expense of which is to be charged to the owners of the property in the vicinity of the improvements, acts in some sense as the agent of such owners in making the improvements (Lake v. Trustees, 4 Denio, 520), and it should in the discharge of its assumed agency be required to exercise reasonable care and diligence in connection with the work. If by gross negligence on the part of the city or the fraud of its officers, the expense of the work has been largely and unnecessarily increased, it is certainly unjust that the eonsequences of the wrong should be visited wholly upon the owners of the property in the vicinity of the improvement. It is just in a case like this, that the excessive and unnecessary expense should be borne by the whole body of tax payers of the city instead of being cast upon a few lot-owners. June 5, 1888. In re Anderson. Opinion by Earl, J. Ruger, C. J., Andrews and Gray, JJ., dissent.

OF

TAXATION-ERRONEOUS ASSESSMENT-BURDEN PROOF.-Under the laws of New York of 1880, chap. 269, which authorizes a review on certiorari of assessments in respect to illegality, over-valuation, and inequality of valuation, at the instance of any person or corporation aggrieved by an assessment in any of the respects mentioned, in order to be entitled to a reduction on the ground of inequality, it does not suffice that the claimant show, that in a particular instance property on the same roll, and in immediate proximity to his, is assessed at a lower valuation; he must prove that he is subjected to the payment of more than his just proportion of the aggregate tax. June 5, 1888. People, ex rel. Warren, v. Carter. Opinion by Andrews, J.

UNITED STATES SUPREME COURT AB-
STRACT.

INSURANCE -ACCIDENT-SUICIDE- PRESUMPTION. -A policy of accident insurance provided that it should not extend to any case of death or personal injury, unless it was established by direct and positive evidence that such death or personal injury was caused by external violence and accidental means. The insured was found dead with a pistol bullet through his heart. Held, (1) that the court did not err in instructing the jury that the law would presume that the death was not caused by suicide, but would, on the contrary, presume that it was unintentional on the part of the insured, within the meaning of the policy; and that plaintiff, in the absence of rebutting evidence, was entitled to the benefit of such presumptions. The policy provided that uo claim should be made under it, where the death of the insured was caused by "intentional injuries inflicted by the insured or any other person.' Held, (2) that the court erred in instructing the jury that if the insured was murdered, the means used were "accidental" as to him, and plaintiff would be entitled to recover. (1) There is no escape from the conclusion that under the issue presented by the general denial in the answer, it was incumbent upon the plaintiff to show, from all the

« PreviousContinue »