The opinion of the Court was delivered by
This is an appeal from the Orphans’ Court; and the facts which we conceive to be established by the evidence, and which are material to the decision of the cause in this court, seem to be these: William Walker and George Coggill, merchants in England, consigned certain merchandise to their factor and agent, William Roberts, Jun., a subject of the king of Great Britain, at that time residing in the United States. The goods so consigned were put into the hands of the intestate, Samuel Merrick, a commission and general merchant of the city of Philadelphia. These goods were sold on account of Roberts to Lewis Allen for the sum of #3104.69. Samuel Merrick died; and, on thé 30th March 1813, administration was granted to Hannah Merrick and John Vaughan. The administrators being cited to settle their accounts, it appeared by a reference to an auditor, that there was in their hands the sum of #3661.72, the proceeds of sales of the goods deposited with Merrick in his lifetime, as factor, and received by his administrators. This fund was not mixed up with the general assets of the estate, but distinguishable therefrom.
After the sale of the goods to Allen, but before the proceeds had been received by Merrick’s administrators, Roberts returned to
Roberts brought an action of trespass and false imprisonment against the commissioners of bankrupt, reported in 3 Maule & Selw. 533, (Roberts v. Hardy, Walker et al.), in which the sole question was, whether there was a good petitioning creditor’s debt to found a commission of bankruptcy, against the plaintiff. Upon the evidence then submitted, there was judgment for the defendants. •
It appears that Roberts always contested the legality of the commission of bankruptcy, and never submitted to it; and that upon the hearing before the Lord Chancellor, his trial for his life, and his suit against Hardy and others, the facts now acknowledged to be true, in relation to George Coggill’s residence, carrying on trade, &c., were not proved, owing to the want of the necessary evidence.
The commission of bankruptcy has never been superseded, although an application has been made to the Lord Chancellor, by Mr Roberts, for that purpose.
George Coggill, one of the firm of Walker & Coggill, came to New York in March 1811, and, on the 24th March 1812, declared his intention of becoming a citizen of the United States. In May 1812, he returned to England, and, about the 11th July 1812,
It appears that this interest in these vessels and their cargoes was given to Coggill, who was perfectly aware of their real ownership, in consideration of his agency, and recommendation to the house of James Walker, of Wortley in Yorkshire, to whom the proceeds of such cargoes were remitted, for goods received in America by the said Robert Roberts.
In 1812, Coggill contemplated a trade in British licenses. In a letter to one of his correspondents in England, he says, “ I am now established here (New York), and have my liberty as free as the air I breathe, and can transact any business that other people, citizens of this country, can. You may therefore write to me by every cartel for this country, and you may just say anything to me you please, as letters coming in a cartel, or by way of Lisbon, are never molested, but come as regular as in times of peace; you may therefore send me the licenses, in a parcel, per first cartel for any part of the United States, for my address here.”
William Walker, who was the sole assignee under the commissions of bankruptcy against William Roberts, is dead, and it does not appear that any other assignees have been appointed in his stead.
On the 5th of February 1817, Walker & Coggill dissolved partnership, and George Coggill transferred all his claim to the outstanding debts and obligations due to the late firm, to William Walker, his former co-partner. After the transfer so made, William Walker became bankrupt, and his property was assigned under a commission of bankruptcy in England. William Walker is deceased, and letters of administration on his effects in Pennsylvania have been granted to Thomas F. Shewell. William Roberts is also deceased, and letters of administration have been taken out, in this State, on his estate.
From an attentive examination of the evidence, we have but little difficulty in arriving at the conclusion, that the funds in
The first question to which our attention has been directed, is, who is entitled to the fund in the hands of the administrators ? Does it belong to the representatives of Walker & Coggill, or to (he representatives of William Roberts, Jr? Out of this point, several others will arise, which it will be necessary to decide. In the argument of this case, in the Orphans’ Court and here, William Roberts rests his claim to the money on two grounds. 1. That the court had before adjudged the fund to belong to him; and 2dly, that, independent of this judicial decree, the facts and merits of the case establish him, and not his principals, to be the rightful owner of the funds. We agree with Mr Justice King, that there is nothing in the proceedings of 1824 which excludes Walker & Coggill from asserting a right to the money. The reasoning of the court, as reported in 2 Ashmead 509, is so conclusive, that we have nothing to add to this part of the case. We also concur with him, that, although it be alleged, yet no evidence has been shown, that payment in fact has been made by the factors to their principals, on account of the debt due from Allen. There is, however, another point in which we do not agree. The point arises out of the proceedings which resulted in the bankruptcy of Roberts.
It is admitted that William Roberts, a British subject residing in the United States, was the factor of Walker & Coggill, merchants of England. The latter consigned certain merchandise to the former, who employed the intestate, who sold the goods to Allen, which was paid to the administrators of Merrick, and is now in their hands, to be paid over to the person who may be legally entitled to receive it. Roberts returned to England in 1812, and, on his return, Walker & Coggill sued him, and held him to bail in £800. The case was referred to an arbitrator, who awarded the sum of £2105 10s. 9d. In this sum, the amount due from Allen was included, at the instance of Walker &• Coggill, and contrary to the representations and remonstrances of Roberts, who insisted that he was not chargeable with the debt, because the debt had not been paid by Allen. Roberts was arrested on the arbitration-bond for non-compliance with the award; was detained in jail for two months or more; and this being an act of bankruptcy, Walker & Coggill sued out a commission of bank
This is the case of a foreign factor, who sold the goods at his own risk, and, for aught that appears, without any knowledge on the part of the original debtor, or of the sub-agent, that the goods did not belong to the vendor, or that Walker & Coggill had any claim whatever to them. As a general rule, a principal is entitled to the same remedies against third persons, in respect to contracts, as if the contract was made with him personally; and this whether he is a factor acting under a del credere commission, or the principal, at the time of entering into the contract, is unknown or unsuspected, or the third person has dealt with the agent, supposing him to be the owner of the goods. But the principle does not apply, for on other facts disclosed there is no privity between the principal and the debtor, and therefore no suit could be sustained by them against Allen for the amount of the goods sold to him by Merrick. The case falls within the exception of foreign factors; where exclusive credit is given, to and by the agent, the principal cannot be treated as in any manner whatsoever a party to the contract, although he may have authorized it, or be entitled to the benefit of it. Thus, it is held that a foreign factor, buying or selling goods, is treated as between himself and the other party, as the sole contracting party, and the real principal cannot sue or be sued on the contract. This is said to be a general rule of commercial law, founded upon the known usage of trade; and it is strictly adhered to, for the convenience and safety of foreign commerce. Story on Agency 434, and the authorities there cited. The goods were' sold to Allen on account of Roberts. The latter, therefore, is the owner of the debt. The contract is made with him, and, consequently, there is no privity whatever between him and the foreign principals. No suit could be sustained by the latter, except through the former; his right to the money, at the most, being an equity arising from the ownership of the goods. Now, although I am willing to concede that a court of equity would, in a proper case, where the factor was insolvent, recognise this equitable right, and compel payment of the debt to the principal; yet the question is, whether, on the facts here disclosed, they are entitled, as against the legal claimant, to the equitable interposition of the court.
By the proceedings which resulted in the bankruptcy of Roberts, we incline to believe Walker & Coggill elected to consider Roberts their debtor for the amount of the goods sold to Allen. Of this they ought not to complain, as it was contrary to the earnest entreaties and remonstrance of Roberts, who insisted, before the
The award, so far as appears, is certain, final, mutual; and embraces all matters submitted to the arbitrator. There is no mistake in point of law or fact apparent on the face bf the award, or by any other authentic instrument. No irregularity by the arbitrator, in his proceedings in the examination of the parties or their witnesses, or any want of notice to the parties of the meetings, is shown. Above all, there is no corruption or misbehaviour of the arbitrator.' Nor was there any fraud of the party, or concealment. The principals have not only obtained the award, which, as an award at common law, is conclusive of the right, except corruption or misbehaviour of the arbitrator be shown, but they have obtained the fruits of it; for it was for refusal to comply with the award, that the factor was declared bankrupt; in consequence of which all his property passed into the hands of his assignee. It must be remarked, that we have no evidence of the amount of property which came to his hands. No dividend has been declared; nor do we know how much, if anything has been realized from the estate. Of this we expect some account, when the petitioning creditors, one of whom was assignee, are asking for the equitable interposition of the court. Under the circumstances disclosed, the award will have the same effect as a judgment ; for an award regularly made by an arbitrator, to whom matters in difference are referred, is conclusive, in an action at law, between the parties to the reference, upon all matters within the submission. . It is generally likened to the judgment of a Court of Judicature: as far as regards the effect of an award, upon suits for the same cause of action, they are similar. Thus, like the judgment of a court of concurrent jurisdiction, an award, as a plea in bar, or as evidence, is conclusive between the same parties, upon the same matters directly in question. Phillips on Ev. 381; Watson on Arbitr. 141, 146. In answer to this, it is said, that the award may be set aside; but the same is true of a judgment by default. It may be admitted, as has been contended, that neither personal or real property is transferred by the mere force of an award. But in Gascoigne v. Edwards et al., on the authority of Crofts v. Harris, (Carthew 187), it is ruled that an arbitrament, without performance, is a good plea, when the parties have mutual remedies. So a right to any species of property may be
Nay more; the case may be presented in a stronger point of view; for the facts assimilate it rather to a judgment executed, than to judgment simply, without more. For the effect of the award, and the proceedings on it, has been, that all the property of the factor passed, and is now, for aught that appears, in the hands of the representatives of the assignee; which representatives or assignees are claiming the right to be permitted to go against this fund. A commission of bankruptcy is considered by the court as a species of execution; and for this reason, the chancellor exercises the same discretionary power over it, to prevent the abuse of it as a process, as the other courts are in the habit of exercising over their respective writs and executions. Eden on Bankruptcy 431; 1 Rose 283. Now as to the effect of a judgment, it is very true, as is said by Chancellor Kent, (2 Kent’s Com. 388), that there are many conflicting decisions in the books, whether a
It remains then to be considered, what effect the proceedings in
But it is said that the bankrupted a foreign country is incapable of operating a legal transfer of “property in the United States. And from it is inferred that the committee of a bankrupt in England cannot sustain a suit to recover a debt due the bankrupt in this country. But we think it definitively settled that a foreign assignee in bankruptcy may sue in the courts of Pennsylvania, in the name of the bankrupt, for the assets of the estate, and recover them, unless as against the rights of an (American creditor. In England, the rule is well established that the property of a bankrupt passes to his assignees, wherever it may be situated, in the same manner as upon a voluntary assignment, modified by the law of the country in which the property may be situated. And this, we conceive, is shown by Judge King (2 Ash. 315) to be the law of this state. Bankruptcy in a foreign state does not operate as an absolute transfer of the bankrupt’s estate in this country; but, subject to the rights of creditors, it gives the assignee an equitable interest in his effects. A legal title to the choses in action, does not pass to his assignee; but, subject to the rights of American creditors, an equitable one does. In Abraham v. Plestoro, (3 Wend. 535), since recognised in Willink v. Renwick, and Johnson v. Hunt, !23 Wend. 65, 87), the Court of Errors in New York, in opposition to the opinion of the Chancellor, has taken a different view of the
From these premises it follows that the assignee of Roberts, viz., William Walker, was entitled to the money. But he is dead; and although he became bankrupt, yet, as trust estates do not pass by the assignment, but only such property as the bankrupt had an equitable, as well as a legal title in, and which is applicable to the payment of his debts, his assignees have no claim. Scott v. Surman, (Willes 402); Winch v. Keeley, (1 T. R. 619); Carpenter v. Marnell, (3 B. P. 40); Gladstone v. Hadwen, (1 Maule Selw. 526). Nor can it be pretended that it goes to his .personal representatives.
Since the death of William Walker, who was the sole assignee of Roberts, we have no evidence that any assignee has been appointed in his stead. There is, therefore, no person now appearing in this court, who has any title, legal or equitable, to receive this money from the administrators of Merrick.
This view of the case makes it obviously unnecessary to decide whether the Orphans’ Court have power to compel the payment of this fund. No objection seems to be interposed by the administrators ; and, unless there are creditors of Roberts, which does not appear, there is no person besides who has any interest in the question. When the proper party appears, they may elect whether they will proceed in this manner, or by an action at common law. Until then, we decline giving an opinion oh the question of jurisdiction. On the whole case, we are of opinion that the decree of the Orphans’ Court, ordering the money to be paid to the assignees of William Walker, be reversed. It is further ordered that the cause stand over for further hearing, when proper parties shall appear.