p. 325known the facts, and would have furnished proof of it on this hearing.
I must, therefore, assume that the case is still pending, and may result in a judgment in favor of Schmidt, at the proper time. If it shall, the amount of damages which he will have sustained by the injunction, will be the same which was due to him at the commencement of his suit, together with the interest thereon, and the fees, charges, and expenses of the sheriff which have been paid by him in the action, and the expenses for the legal proceedings which have grown out of the issuing of the injunction.
And in that event the sheriff of Richmond will be entitled to his fees, poundage, and expenses.
If, however, judgment shall finally be rendered in favor of E. Schroeder & Co.,'and against Schmidt, it will then appear that the lien of his attachment was invalid, because he had no cause of action against his alleged debtors. And in that event his damages would be merely nominal, and the sheriff of Richmond county must look to him for his fees, poundage, &c., &c„ In reality, therefore, this ease is not ripe for decision. The amount of the damages to be awarded to the defendants must depend on a future and contingent event, viz., the decision and judgment in the suit of Schmidt a. E. Schroeder & Co.
Under such circumstances it is difficult to see how an absolute report can be made either way. Ho other course seems open, except to compute the amount of the damages which will have been sustained by the defendants in case Theodore Schmidt shall ultimately recover final judgment against E„ Schroeder <fc Co. in his suit against them, and to direct that on the happening of that event, the damages be assessed at the' sum named. But if, in that suit, Schroeder & Co. shall recover final judgment against Theodor Schmidt, then that such damages be, and they are hereby assessed at the sum of six cents.
The plaintiff excepted to this report, insisting that the levy of the attachment was invalid, and that the allowance of damages was improperly made.
Platt, Gerard & Buckley, for the plaintiff.
p. 326Fincke & Lapaugh, for the defendant.
I. The plaintiff failed in this action, and the complaint having been dismissed on the trial, and the court having finally decided that the plaintiff was not entitled to the injunction, this reference was ordered, under section 222 of the Code, to ascertain the damages sustained by the defendants by reason of the injunction, obtained without any grounds authorizing the same.The proof shows as well by the written admissions as the other evidence, and the referee’s report finds, that the property, 1,355 dry hides, was on the 5th day of June, 1858, taken from the defendants by virtue of the injunction obtained and served by the plaintiff herein, and as the value of those hides is stipulated to have been $6,200 on the 10th of April, 1858, on cash sale, that amount, with the interest thereon,—unless the referee finds on all the evidence a greater value—constitutes in respect to that property, the damages sustained by reason of the injunction in this action.II. The defendant, Loekman, sheriff of Eichmond county, was entitled to hold the property, as against the plaintiff, under the attachment levied by him upon it in the action of Theodor Schmidt against E. Schroder & Co.The receipt of Captain Eenhagen who was in possession of the property at the time, and thereupon became receiptor to the sheriff for the goods -attached, is sufficient evidence of the goods having been attached by Loekman the sheriff. The captain then represented and answered for the owners of the goods, and his act in law was the act of the owners.From that time the sheriff of Eichmond county, by himself and his deputies, had the custody and possession of the said property, and so continued to have the same until the 5th of June, 1858, when it was taken from him by the plaintiff under his injunction.III. The parties, Trovet, Schroeder & Co., from whom Taacks claims that he purchased, never had any possession of the property.IV. The plaintiff never was the owner of the goods in question, nor did he ever have the possession of the same.V. The goods in question did not arrive until the morning of the 10th of April, 1858, and^were thereupon immediately levied upon by the sheriff of Eichmond county within his
p. 327jurisdiction, and before the United States ever had, or claimed to have any lien, possession, or custody of the goods, or could have any, and the goods did not reach New York until after-wards, and then only in the actual custody of the sheriff of Richmond county. At the time the goods were attached by the sheriff of Richmond county, they were not in the possession of the United States either actually or constructively. The sheriff of Richmond, at any rate, first obtained possession of the prop-, erty under his process or attachment. (Taylor a. Carryl, 20 How. U. S. R., 583.)VI. The sheriff of the county of New York did not by his attaching the bills bf lading become the holder of the property in question, nor have any right to sell or dispose of the same, but if he attached at all, he was required safely to keep all the property of the defendants within his county, or so much thereof as might be sufficient to satisfy the plaintiff’s demands, together with costs and expenses (Code of Procedure, § 231), for selling or disposing of the said bills of lading or property.VII. The sheriff of New York could not, by attaching the bills of lading, hold or dispose of the property in question, which was not in his possession, either as against a prior attaching creditor or any other person having the actual possession thereof.VIII. The sheriff of New York did not, and could not, by a mere levy upon the said bills of lading become entitled to the property of the consignors, or their interest therein, while the property of the consignors was already in the possession and actually held by the sheriff of Richmond county.IX. If the sheriff for all attacliing-creditors becomes entitled to the property of the consignor and his interest therein, then before the delivery of the property to the consignee, the consignee cannot dispose of the property nor of any interest in it; and, hence, whichever sheriff in this case became so entitled, certainly the consignees, Tro vet, Schroeder & Co., did not have any interest or right in the property in question, nor any power or authority as consignees to sell it to Taacks or any body else.X. In this case there was no transfer, nor was there any endorsement of the said bill of lading, and if there had been, it would not have been equivalent to the actual delivery of the
p. 328goods. (Lickbarrow a. Mason, 1 Smith's Lead. Cas., 752, 759, 4 Am. ed.) Whatever may be the effect of a transfer of a bill of lading as between the immediate parties, it cannot prejudice the rights of third parties.XI. The consignees or any one else, even if holding the bills of lading as alleged agents of the sheriff of New York, were not from the 9th day of March, until the 10th day of April, or at any other time, in legal possession, or in any possession of the property in question; and their alleged assignee, the plaintiff, in this action, on that 10th day of April mentioned, did not become, and he is not entitled to the property. “ Nemo plus juris transf.'erre potest q%iam ipse habet."XII. The transitus of the goods was by their seizure under the attachment issued by the sheriff of Bichmond county, terminated before the goods in question reached any possession of the consignees or the sheriff of New York.XIII. The sheriff of Bichmond county, having by a valid attachment, and the first one delivered to him, attached the property, any subsequent attachment is subordinate to his levy so made. (2 Rev. Stat., 366 ; Peck a. Tiffany, 2 N. Y. (2 Comst.), 451. Prior tempore potior jure.XIV. The question of the United States having a right of lien or possession for duties _ until paid, is not a matter of consideration in this case, since the United States are no party to this proceeding, make no claim for any duties, nor do they claim any lien upon or possession of the goods, nor does any one set up lien, title, or claim under them.XV. In Patterson a. Perry (10 Abbotts' Pr., 82; and in S. C., 5 Bosw. N. Y. Superior Ct. R., 518), it was decided that bills of lading are not property attachable within the meaning of the Code; and that where one attachment is levied upon the bill of lading, and another one upon the goods mentioned in it, the attachment upon the goods, though later in point of time, holds the goods to the exclusion of the one levied upon the bill of lading.XVI. If the United States interposed or presented any claim, by way of lien for duties or otherwise, to the possession of the property, they should have been made parties to the suit by the plaintiff. But in the absence of their being parties to the same, and, also, in the absence of any claim of any kind
p. 329by them, a third party, a stranger to the United States cannot avail himself of any right or privilege which he supposes the United States possessed by way of lien for duties at some time while they might have been unpaid. The property itself is in no wise changed, in its title or ownership, by the circumstance of its being subject to a possible duty or lien in favor of the United States. Beyond this mere lien where it exists, the United States has no right; the duties once paid, all claim of the United States is discharged and ended. If the duties were not paid, and the property were sought to be withheld or retained on that account, the burden of proving that such was the-fact would rest upon the party asserting'the right so to withhold or retain the property.XVII. If there were existing duties in favor of the United States not paid nor discharged, the sheriff of Richmond county would be entitled to hold the property, subject only to the lien of the United States. The case of Harris a. Dennie (3 Peters' U. S. R, 292), upon which the plaintiff relies, presents a state of "‘facts very different from those in the case here under consideration. The counsel for the plaintiff appeará to have entirely misapprehended the principle in that case, and the rule or doctrine therein intended to be declared. There the contest was between the United States claiming a lien for the payment of duties on the goods on the one side, and an attaching-creditor on the other side, endeavoring to get the goodsjout of the possession of the United States in spite of the lien of the United States for those duties. Here, instead of our trying to take the goods out of the possession of the United States, we levied upon them before they came into the possession of the United States in any manner or to any extent, and afterwards we continued to hold possession with the U uited States so far as to submit to any lien of the United States for duties, or to any temporary right of possession which such lien might have given them until that lien was discharged. And after the lien was fully discharged, and the United States neither have nor claim to have any lien or demand upon the goods, we are sued, because we have the free and unqualified possession and right of possession of the same. When the lien of the United States was discharged, or out of the way, the sheriff was entitled to the unobstructed possession of the goods. The sense
p. 330and point in Harris a. Dennie is that no creditor can by process take the goods out of the custody of the United States before the duties are discharged. This was so held again in Conrad a. Pacific Ins. Co. (6 Peters' U. S. R., 262.) Stoey, J., in the latter case, referring to Harris a. Dennie, said, It decided no more, than that no creditor could, by any attachment or process, take the goods, upon their importation, out of the possession of the United States, until the lien of the United States for the duties accruing thereon was actually discharged, either by the payment of the duties or by giving security therefor,, according to the requirements of law on the part of the importer.”XVIII. This is an equity action, and there is nothing valid in the exception, that the report contains a clause in reference to damages, either in the alternative, or as conditional.XIX. Whether the judgment will be in-an alternative form or otherwise, cannot possibly be known until it is first entered. Hence, it' is now premature to consider as to that question. But even if the matter were now a judgment in the alternative at law, strictly so called, it would be merely an irregularity, but amendable. (Aldrich a. Thiel, 3 Code R., 91.)XX. The right of the sheriff and the attaching-creditor to hold the property by virtue of the attachment is now settled in their favor by the court. (Rinchey a. Stryker, 26 How. Pr., 75 ; Thayer a. Willet, 5 Bosw., 314 ; Kelly a. Breusing, 33 Barb., 123 ; Hill a. Stryker, also lately decided in the Court of Appeals, but. not yet reported.) The plaintiff having, by an ■action and injunction not maintainable, taken the property in 'question from the defendants, and deprived them of the same, and as this is so found by the report—as well as the other facts in favor of the defendants—and as there is no dispute or exception as to the facts found by the referee, the exceptions by the plaintiff to the report, must be overruled, with costs. . ■•>This was, a motion to confirm the report of a' referee, and exceptions to such report.
The defendant, Schmidt, was plaintiff in anaetion- commenced against the firm of Schroeder & Go., of Buenos Ayres, upon which an attachment had been issued to the defendant
p. 331Lockman, sheriff of Richmond county, who claimed to liave lawfully seized certain hides of Schroeder & Co., subject to the revenue duties.
This action was commenced by plaintiff claiming to be the owner of said hides, to restrain defendants from interfering therewith, in which an injunction was issuéd to that effect, whereby plaintiff obtained and sold said hides.
On trial, the complaint was dismissed, the injunction dissolved, and a reference ordered to ascertain the damages by reason of such injunction.
The referee reports that said hides were shipped by Schroeder & Co., from Buenos Ayres to their agents in blew York, to séll on account; that on February 27, 1858, said agents, having a small sum of money in hand, an attachment was issued against Schroeder & Co., and delivered to the sheriff of blew York, who served a notice on the said agents, attaching all funds and property in their hands; that Feburary 22d an attachment in favor of the defendant Schmidt against Schroeder & Co. was also issued and delivered to said sheriff; that on the 9th of March the bills of lading of said hides having arrived the day before said agents gave the sheriff of bfew York a certificate of the same, and agreed to hold said bills, or said hides to arrive, or the proceeds thereof, subject to said attachments; that March 3d another attachment in favor of said Theodore Schmidt against Schroeder & Co. was issued and delivered to the sheriff of Richmond county; that on -the 10th day of April, before noon, said agents sold said hides to arrive, to plaintiff Taacks; that in the áfternoon of same day the sheriff of Richmond county seized said hides in his bailwick before they had even been within the county of blew York, of course subject to the United States revenue laws; that he accompanied the same to bTew York, and kept the custody of the same as far as,:possible, subject to said revenue laws, until forced to surrender his claim by force of.said injunction.
As conclusions of law, the referee found that the sheriff* of Richmond had a valid- levy upon said hides, and a special property therein equivalent to any judgment recovered in the action in which such attachment issued;' and if final judgment should be obtained in said action, the amount of said judgment, the legal fees and charges of said sheriff, and the sum paid his
p. 332deputies for services and expenses, would be proper damages occasioned by said injunction; and, also, that the costs, fees, expenses, and disbursements in this action were also damages occasioned by said injunction.
The plaintiff interposes five exceptions to this report which I will first consider.
The first three involve the same question; whether or not the sheriff of Richmond had a valid levy upon the hides by virtue of the attachment:
The plaintiff insists the hides could not be attached by the sheriff of Richmond :
1st. Because they had been previously attached by the sheriff of ¡New York, and were consequently in the custody of the law.
2d. Because they were plaintiff’s property.
3d. Because the hides were in the legal custody of the United States for duties.
These points were satisfactorily answered by the referee in his opinion, and it will not be necessary for me to go over the same ground. I fully concur in his conclusions and in most of his reasoning.
The fourth exception is to the allowance for damages.
The referee allows as follows:
1st. The amount and interest of any judgment which may be recovered under the attachment.
2d. The legal-fees and charges of said sheriff of Richmond county upon the amount for which such judgment shall be recovered.
3d. The sum of $336 for services and expenses of deputies in seizing and watching said hides.
4th, The sum of $50 for referee’s fees on first hearing.
5th. The sum of $500 for the costs, fees, and disbursements of the attorney and counsel of defendant Schmidt in this action.
6th. The sum of $500 for the costs, fees, and disbursements of the defendant Lockman in this action; and
7th. The sum of $200 for the costs and expenses of the hearing before said referee.
I infer from the papers that no final judgment has been as yet entered in this case; that upon dismissing the complaint
p. 333this referee was ordered under section 222 of the Code, to ascertain what damages had been sustained by reason of the injunction, and that no judgment will be entered herein until the coming in and confirmation of the referee’s report.
In ascertaining the damages, the referee had nothing to do with the question of fees, costs, disbursements, or allowances, either in this action or the action under the attachment.
The final judgments recovered in these actions are proper damagesbut the fees, costs, and disbursements must be fixed and adjusted in each case as required by statute Code, §§ 243, 307, 308, 309, 311, 312 (2 Rev. Stat., 646).
The adjustment must in all cases be performed in part by the officer who issued the attachment (2 Rev. Stat., 646; Code, 243); the part being fixed by law must be adjusted by the clerk, and all extra allowances by the court.
It is a power that cannot be delegated to a referee, even under the cover of fixing damages sustained by an injunction.
Some of this extra labor under the attachment allowed by the referee was occasioned by the injunction.
If the plaintiff succeeded in the action in which the attach- ° ment issued, the injunction has probably deprived Schmidt of the means of satisfying such judgment out of the property of Schroeder & Co.; and, therefore, the plaintiff in the injunction- v. suit, and his sureties should be held to make Schmidt good; should pay his jhdgment. So in the injunction-suit the plain- ,-v tiff and sureties are liable for the judgment as damages; but the costs and disbursements which the law allows, arid such extra compensation as the court may think proper and right under the circumstances, are to be carried into and form, part of that judgment; and such costs should include the*costs and expenses of. the reference under the order to ascertain the damages. It may be otherwise when other damages than costs which are not to go into" a judgment are sought.
■ In this case all which the defendants can legally claim as damages, by reason of the injunction, is the judgment herein; > the costs and expenses of the referee, if not included in said judgment; and the judgment, if one shall be recovered by the plaintiff, in the action in which the attachment issued.
I confess there seems an inconsistency in proceeding to an assessment of damages before the damages can be known, and
p. 334the true course in this case would have been to have waited until the final determination of the attachment-suit. Still the party ought not to be deprived of what may prove a just claim, through haste of procedure, if his rights can be preserved in pursuance of law and without injustice to his opponent. I think that may be done in this case by suspending the confirmation of the referee’s report until the final determination of the action in which the attachment was issued.
The fifth exception was to the amount found as the value of the hides. It is agreed that there was an error, and that their value was $6,200, on the 4th day of June, 1858.
All of the exceptions to the report but the fourth and fifth are disallowed. The fifth is allowed, and the foprth is modified so as to fix the damages at the amount of any judgment which shall be finally determined for the defendants in this action, and the costs and expenses of the reference to ascertain the damages occasioned by the injunction, if the same shall not be included in the said judgment; and also any judgment which Theodor Schmidt may finally recover in the action against Schroeder & Co., in which the attachment was issued directed to the sheriff of Eichmond county.
That the confirmation of said report so altered and modified be suspended until the further order of the court, with leave to defendants to move on the usual notice, and on affidavit showing the action in which the said attachment issued determined, or a stipulation that defendants herein abandon all claim for damages in that action, by reason of the injunction issued in this.
Let an order be entered in conformity with this opinion.
Subsequently judgment was given in the case of Schmidt a. Schroeder & Co. in favor of the plaintiff, and the plaintiffs moved to insert the amount of the judgment in the judgment against Taacks in the injunction-suit. The plaintiff, Taacks, objected to two items taxed in the judgment against Schroeder.
—An order of reference was made in.this action to ascertain and report the damages sustained by the defendants, by reason of an injunction issued therein. The referee made his report, and the plaintiff filed exceptions to it. The
p. 335motion to confirm the report came on before Judge James, and the exceptions were argued before him; he made an-order whereby the report was so far modified as to fix the damages in this action at the amount of any judgment which should be finally determined for the defendants in this action and the costs and expenses of the reference to ascertain the damages occasioned by the injunction therein, if the same should not be included in the costs of such judgment, and of any judgment which Theodor Schmidt might recover in a certain action against E. Schroeder & Co. In other respects the report was confirmed, and the confirmation of the report so modified was suspended until the further order of the court, with leave to the defendants to move, on the usual notice and an affidavit showing the determination of said action of Schmidt
a. Schroeder
& Co.
The defendants now, on an affidavit that the case of Schmidt a. Schroeder & Co. is determined, move for a full confirmation of the said report as modified, and claim as part of their damages the amount of the judgment in the case of Schmidt a. Schoeder & Co. The plaintiff objects to the allowance of two of the items of costs contained in that judgment, to wit, the item of §848 allowed to the sheriff for his services on an attachment in that action, and $250 allowed to the plaintiff as an extra allowance in that action.
The order of Judge James disposes of the plaintiff’s objection. That order cannot be reviewed in this proceeding before me, either directly or indirectly. If erroneous, it must be corrected on appeal. If its language were ambiguous, then the proper construction to be given to it would necessarily arise on this motion. But it is not ambiguous. In clear direct terms, it fixes the amount of any judgment to be recovered in this action of Schmidt a. Schroeder & Co. as one of the items of damages.
I am also of opinion that the provisions of the Code authorize an allowance in this case, and that the case is a proper one to order an allowance in.
An allowance of $300 is given to the defendant Schmidt, and a like allowance to the sheriff.
The defendant’s attorney will present an order drawn in conformity with this opinion.