Majority — Bradley J.
Syllabus
APPEAL PROM THE CIRCUIT COURT OE THE UNITED STATES FOE THE EASTERN DISTRICT OF LOUISIANA.after stating the case as above reported, delivered the opinion of the court.
The complainant’s claim in this suit is that the city of New Orleans, as unlawful possessor and vendor of the property, is primarily responsible in the same manner and to the same extent as it would have been if it had never sold any part of it, but had remained in possession of the whole from the time of
Another principle invoked and applied is,.that, inasmuch as the city of New Orleans claimed the property under the sale of Eelf and Chew, although claiming it through the medium of Evariste Blanc, it was a possessor in bad faith, and, as such, accountable, not only for the rents and revenues actually' received, but for all that might have been received by the most provident management of the property.
The manner in which these assumed principles of law have been applied by the court below in the disposition of the case will be considered hereafter.
As already stated, the amount of the decree pronounced against the city was $1,925,607.83, of which $1,348,959.91 were for rents and revenues of unimproved property. The remainder, $576,707.92, was for rents and revenues of improved and unimproved property found due from the defendants in the suits of Gaines v. Monsseaux et al. and Gaines v. Agnelly et al., before referred to; the amount being somewhat increased by additional interest. The parties in those cases relied on the city to protect them, and appear to have let things take pretty much their own course.
As the complainant was allowed, in her first suit against the city of New Orleans, before referred to, to recover all rents and revenues received by the city from each portion of the Blanc tract, derived from Clark’s estate whilst it was in possession thereof, the complainant, in her claim before the master in the present case, waived all rents and revenues arising from the tract prior to March 10, 1837, the time when the auction sale was made as before mentioned; but claimed that there had been no adjudication or recovery against the city for any such rents and revenues after that date, except for the five squares inferred to in that former suit; and hence she
The master, therefore, in talcing his account, assumed that no account of rents and revenues had ever been rendered by the city after the said 10th day of March, 1S37, except as aforesaid, and proceeded to charge it with the entire rents and revenues of all the land in the whole tract, (except as aforesaid,) from the said date to the time of making the report, without regard to the question whether the city or its grantees were in actual possession or not. The rents and revenues thus charged against the city for unimproved land were not rents and revenues actually received, but fictitious rents and ■ revenues, assessed at the rate of five per cent per annum on 70 per cent of the amount of the inflated sales of 1837, with interest thereon to the time of making the report, that being what the master deemed a fair equivalent of what the property ought to have produced. We shall see hereafter that the court added to this estimate interest on the other 30 per .cent of the amount of said sales.
From the reports of the master we are led to understand that the amounts found due from the defendants in the other suits, aggregating, with interest, $576,707.92, as above stated, were estimated and made up on the same principles which were followed with regard to the unimproved property; not by taking merely the actual rents and revenues received, but adding thereto fictitious amounts which it was supposed might have been received by provident management, and by interest on hypothetical values in the absence of other evidence of income.
Now, in relation to the principles before referred to, on which the complainant contends that her case may be rested, and which the court seems to have adopted, we have the following observations to make. The first proposition is that the city of New Orleans is primarily liable for all the rents and revenues of the entire tract derived from the Clark estate and purchased from Evariste Blanc, for the entire period since
The common laAv, certainly, does not recognize any such rule as that contended for. The person Avho receives the rents and profits is the only person Avho is to respond for them. It Avas ■even made a question in Doe v. Harlow, 12 Ad. & El. 40, and in Doe v. Challis, 17 Q. B. 166, whether the landlord of a tenant in possession Avas liable for mesne profits. After argument it Avas decided that he Avas. But the reason of this is obvious : the tenant’s possession is the possession of his landlord. It is true that, by the ancient laAv, Avhere there was an entire disseisin, the estate was deemed out of the disseisee for the time being, and no intrusion upon the land was a trespass against him; and, therefore, a grantee of the disseisor, or a second disseisoi', was not responsible to the true OAATier at all, who had to look to his immediate disseisor for damages in an assize. Ilobart, 98. But the modern action for mesne profits only lies against the tenant in possession who is cast in an action of ejectment; and where no ejectment has been brought, the actual trespasser on the land is the person amenable to an action of trespass quare clausum fregit, or assumpsit for use and occupation, Avhere the trespass is waived.
The present case, however, is not to be decided by the rules of the common law. The counsel for the complainant relies on the French or civil law to sustain his position. But no case is cited to show that the rule contended for has ever been
The only plausible ground on which the city can be made responsible for rents and revenues received by its grantees is that of subrogation, by which the real owner whose title has been judicially established, after pursuing the. grantee in possession, and reducing his or her demand against such possessor into judgment, may take the place of such grantee and possessor in suing the grantor, who is under obligation to protect and indemnify such grantee. Can 'this be done in the present case? The grantees have been sued; judgment has been obtained against them; the city was sufficiently notified of the prosecution to be bound by the result as guarantor; indeed, the city practically conducted the defences. The complainant in her bill alleges, and it is proved, that the defendants in those suits have demanded of the city that it pay or settle the said
Under these circumstances, the grantees who have lost their property, and who have thus been made liable in judgments for the rents and revenues, might themselves, before satisfying such judgments, have maintained a suit in equity against their guarantor, the city of New Orleans, to protect them from the adjudged liability to pay. An action at law would not lie until actual payment; but equity would regard it the duty of the guarantor to protect the grantee from the extreme hardship of having to pay that which the guarantor himself ought to pay, it being the law of Louisiana that a person evicted from property conveyed to him with warranty may recover from his warrantor not only the price, but the amount of rents and revenues, which he is bound to respond for to the true owner.
As between the city and its grantee, the former, by reason oj: its guaranty of title, is really the principal debtor, and bound to protect the grantee as a principal is bound to protect his surety. Therefore the grantee is entitled to such remedies as a surety hath; and when fixed by judgment, if not before, may file a bill against his guarantor to protect him. Lord Redesdale says: ■“ A court of equity will also prevent injury in some cases by interposing before any actual injury has been suffered, by a bill which has been sometimes called a bill quia timet, in analogy to proceedings at the common law, where in some cases a writ may be maintained before any molestation, distress, or impleading. Thus a surety may file a bill to compel the debtor on a bond in which he has joined to pay the debt when due, whether the surety has been actually sued for it or not; and upon a covenant to save harmless, a bill may be filed to relieve the covenantee under similar circumstances.”' Redesdale’s Treatise, 148, 4th ed.; and see Ranelaugh v. Hayes, 1 Vernon, 189, 190; Lee v. Rook, Mosely, 318; Wooldridge v. Norris, L. R. 6 Eq. 410; Marsh v. Pike, 10 Paige, 595, 597; Taylor v. Heriot, 4 Desaussure, 227; Fell on Guaranties, 247; De Colyar on Guaranties, 308, c. 5, Amer. ed. In Lee v. Rook, the Master of the Rolls said: “ If I borrow money on a
Then, if the grantees, who have been ousted, and who are condemned in judgment to pay to Mrs. Gaines the rents and revenues due to her, might have maintained a suit in equity against the city to compel it to indemnify them, why may not Mrs. Gaines be subrogated to the grantees’ right and equally maintain a suit against the city % The claim is an equitable one. It is in proof that all the acts of sale of the city contained express agreements of guaranty, with right of subrogation; and an act of sale in Louisiana imports a guaranty whether it is expressed or not.
But if the suit could not be maintained on purely equitable grounds alone, there is a principle of the civil law obtaining in Louisiana, by the aid of which there can be no doubt of its being maintainable. The Code Napóléon had an article (Art. 1166) expressly declaring that creditors may exercise all the rights and actions of their debtor, with the exception of those that are exclusively attached to the person. ■ It is true that the Louisiana Code has no such article; but it is laid down by writers of authority that this principle prevails in French jurisprudence without the aid of any positive law. 43 Dallo2, 239, etc., title Vente, Arts. 932-935. The decisions to the contrary seem to be greatly outweighed by other decisions and by sound doctrine. The right thus claimed for the creditor (the word creditor being used in its large sense, as in the Givil law) may very properly be pursued in a suit in equity, since it could not be pursued in an action at law- in the courts of the United States; and all existing rights in any State of the Union ought to be suable in some form in those courts.
We think, therefore, that this part of the deeree, amounting to the sum of $576,707.92, with accruing interest, being for the amount of the judgments obtained in the other suits, ought to be allowed, unless subject to reduction for the cause hereafter referred to.
As to the remainder of the decree, amounting to $1,348,-959.91, being for rents and revenues and “value for use,”
Notwithstanding this evidence, and a great deal more to the same purport, the master reasoned that, because some
Another error made by the master, and by the court, is, as to the extent to which the rule is to be carried, that a possessor in bad faith is bound to respond for all that the property possessed can be made to produce. We do not understand that this rule requires a possessor to change the state of the property. Suppose, for example, a large tract of land is wild, mostly forest, and might be made to produce immense yields of grain and produce if it were cleared of timber and broken Up and cultivated. Is the possessor in bad faith — only technically such perhaps — bound to respond to the true owner, on recovery, for the thousands of bushels of wheat and corn and other produce that might have been raised on the land ? Is it the duty of a possessor, even a possessor in bad. faith, to change the state of the land from wild land to cultivated, farming land, for example, or to open and work mines of iron or copper or gold, so as to make as much out of the land as can be made out of it, and hand it over to the true owner? Does any such principle as this prevail in the law ? We think not. The estimation of such undeveloped revenues is alto
The truth is, that there are degrees of bad faith. There are some possessors who, without any title at all, pertinaciously keep the true and known owner out of possession. They may be properly called knavish possessors. There are others who take a conveyance and go into possession in entire ignorance of any defect in their title, though they are technically possessors in bad faith, because by proper inquiry they might have discovered the defect. Such possessors, certainly,' cannot be placed on the same level with the knavish and fraudulent possessors of whom we have just spoken. In. the case of Donaldson et al. v. Hull, 7 Martin (N. S.) 112, 113, Judge Martin, delivering the opinion of the court in a case of mere technical possession in bad faith, said: “ The case appears peculiarly a hard one, as the defendant bought in moral good faith, with the knowledge of the only one of the plaintiffs who was of age, and from the aunts ,of all of them, who had been selected by their mother to protect their interests after her death, and as the plaintiff who was of age received from him her part of the price. It is to be lamented that the law imposes on courts of justice the obligation of decreeing the restoration of the value of the services of slaves against a possessor who has fairly paid a full price for them, while it authorizes them to do no more in the case of a dishonest holder, who has taken them in possession without paying anything for them. But on assessing the value of the services which a defendant is to be decreed to restore, we think the same rule ought not to prevail. In assessing damages for their detention, the good faith or dishonest conduct of a defendant should influence us; and if justice demands vindictive damages in the latter case, it prescribes a just moderation in the former. The plaintiff must not receive more than he would if he'had been in possession.”
Then the evidence to sustain the claims of Mrs. Gaines was. so full of obscurities and improbabilities that a possessor of land purchased from the representatives of Daniel Clark could not be blamed for not giving it credence, and for resisting her suits to the utmost! We have given an outline of the history of her litigation for the purpose of showing how great reason the parties attacked in their possessions had to defend themselves with vigor. A full report of the evidence would have shown it still more strongly. We cannot blame them, for making resistance. Although bound by the decisions that-have been made by this court in the matter, we cannot say, and no one can say, that there was not much evidence of a very strong character in favor of a contrary conclusion.
In our judgment, there was no sufficient evidence that any rents or revenues were derived from the unimproved lands, either by the city of New Orleans, or by its* grantees; and that part of the decree which is based on such supposed rents and revenues, amounting to $1,318,959.91, must be disallowed, and the bill must be dismissed with regard thereto.
The result is that the decree of the Circuit Court must be
Reversed and the cause remanded, with instructions to enter a decree in conformity with this opinion.
The Chief Justice and Me. Justice Lamar were not members of the court when this case was argued, and took no part in its decision.
New Orleans v. United States ex rel.: Gaines’s Administrators; New Orleans v. United States ex rel.: Gaines’s Administrators. Appeals from and in error to the Circuit Court of the United States for the Eastern District of Louisiana. Nos. 2, 3. Argued October 13, 14, 1887. Decided May 13,1889. Me. Justice Beadley delivered the opinion of the court. The decision just made in the case of The City of New Orleans v. Myra Clark Gaines renders it necessary that the- judgment or decree in this casé should be reversed, and
Reversed.
Mr. Henry C. Miller and Mr. J. R. Beckwith for appellant. Mr. John A. Campbell, Mr. Thomas J. Semmes and Mr. Alfred Goldthwaite for appellees.
Cases cited
- Ex parte Whitney 13 Pet. 404 p. 198
- Gaines v. Relf 15 Pet. 9 p. 198
- Patterson v. Gaines 6 How. 550 p. 198, p. 199
- Gaines v. Chew 2 How. 619 p. 198, p. 199, p. 208
- Gaines v. Hennen 24 How. 553 p. 201
- Gaines v. New Orleans 6 Wall. 642 p. 201, p. 202
- New Orleans v. Gaines 15 Wall. 624 at 13 p. 202, p. 203, p. 207, p. 208, p. 209, p. 210, p. 212, p. 219, p. 220
- Gaines v. Fuentes 92 U. S. 10 p. 203
- Hipp v. Babin 19 How. 271 p. 203
- Root v. Railway Co. 105 U. S. 189 p. 203
- Ellis v. Davis 109 U. S. 485 p. 203
- Gaines v. Miller 111 U. S. 395 p. 203, p. 221
- Van Weel v. Winston 115 U. S. 228 p. 203
- Buzard v. Houston 119 U. S. 347 p. 203
- Parkersburg v. Brown 106 U. S. 487 p. 203
- Ambler v. Choteau 107 U. S. 586 p. 203
- Litchfield v. Ballou 114 U. S. 190 p. 203
- Insurance Co. v. Bailey 13 Wall. 616 p. 204
- Grand Chute v. Winegar 15 Wall. 355 p. 204
- Lewis v. Cocks 23 Wall. 466 p. 204
- Killian v. Ebbinghaus 110 U. S. 568 p. 204
- New York Guaranty Co. v. Memphis Water Co. 107 U. S. 205 p. 204
- Francis v. Flinn 118 U. S. 385 p. 204
- United States v. Wilson 118 U. S. 86 p. 204
- Fussell v. Gregg 113 U. S. 550 p. 204
- Brown v. Swann 10 Pet. 497 p. 205
- Huntington v. Saunders 120 U. S. 78 p. 205
- 6 Wall. 592 6 Wall. 592 p. 205
- Hopkins v. Lee 6 Wheat. 109 p. 205
- President of the Bank of the United States v. Beverly 1 How. 134 p. 205
- Chapman ex rel. Leavitt v. Smith 16 How. 114 p. 205, p. 206
- Thompson v. Roberts 24 How. 233 p. 205
- Campbell v. Rankin 99 U. S. 261 p. 205, p. 207, p. 221
- Baird v. United States 96 U. S. 430 p. 205
- Aurora City v. West 7 Wall. 82 p. 205
- The Apollon 9 Wheat. 362 p. 205
- Durant v. Essex Co. 7 Wall. 107 p. 205
- Nashville, Chattanooga & St. Louis Railway Co. v. United States 113 U. S. 261 p. 205
- Heirs v. Dunlop & Co. 1 Wheat. 179 p. 205
- Ballance v. Forsyth 24 How. 183 p. 205
- Beloit v. Morgan 7 Wall. 619 p. 205
- Gould v. Evansville & Crawfordsville R.R. 91 U. S. 526 p. 205
- Whiteside v. Haselton 110 U. S. 296 p. 205
- Corcoran v. Chesapeake & Ohio Canal Co. 94 U. S. 741 p. 205
- Bryan v. Kennett 113 U. S. 179 p. 205
- United Statess v. Parker 120 U. S. 89 p. 205, p. 207
- Coffey v. United States 116 U. S. 436 p. 205
- Davis v. Gaines 104 U. S. 386 p. 207