Majority — Thompson J.
Syllabus
The United States instituted an action of debt against the defendant, William Linn, and his sureties, to recover a sum-of money in the hands of Linn, he having been appointed á Receiver of Public Mon,eyS at the Land Office of the District of Vandalia, on the 12th of February, 1835. ■ The first count in the declaration stated,that the defendants had executed, on the 1st of August, 1836, a “ writing obligatory, sealed with their seals,” to' the United States, in the sum of one hundred thousand dollars, for the faithful performance of the duties of his office by Linn ; and that certain, sums of money had been into the hands of Linn, as Receiver, which he had failed to account for and pa^ over to the United States.- The second count stated the execution of “an instrument’of writing,” to the United States, by the defendants, signed by them, by which they promised to pay one hundred thousand dollars to the United States, which was to be void and of no effect in case Linn faithfully executed the duties of the office of Receiver of Public Moneys; and alleging that Linn had i received a large sum of money belonging to the United States, which he .had failed to’pay- over or account for -to the United States. The Judges of the Circuit Court of Illinois were divided- in opinion, and the division was certified to the Supreme Court, upon two questions, 1. Whether the obligation of the defendants, being without seal, is a bond within the act of Congress. 3. Whether such an instrument is good at' common law. Held,--1. That that the obligation, being without seal, is not a bond within the act of Congress.. 2. That such an instrument is good at common law.delivered the opinion of the Court.
•This case comes from the Circuit Court of the United States for the state of Illinois, on a certificate of division of opinion upon the following points:
1st. Whether the obligation Set out in the second and third counts in the declaration, being without seal, is a bond within' the act of Congress.
2d.-Whether such instrument is good at common law.
Upon the first point no doubt can exist. There being no seal to the instrument, it is not a bond. This point was" abandoned by tlje Attorney General, on the argument; and the question must of course be answered in the negative. And as the act of Congress directs the security to be taken by bond, this answer necessárily implies that the instrument now in question is not in form the instrument required by the act of Congress. And the second point presents the broad question whether the instrument is good and binding at common law, independent of the statute, as to the mere form of the security.
If this is a contract entered into by competent parties, and for a lawful purpose, not prohibited by law, and is founded upon á sufficient consideration, it is a valid contract, at common law. In the case of The United States v. Tingey, 5 Peters, 115, it was held by this Court, that the United States being a body politic have a capacity to enter into contracts, and take bonds or securities within the sphere of their constitutional powers, ’and appropriate to the just exercise of those powers, through the instrumentality of the proper department, to which those powers are intrusted, whenever such bonds or contracts are not prohited by law, although the making such contracts, or taking such bonds, may not have been prescribed by any pre-existing legislative act.
From this it follows, that a voluntary contract or security taken by the United States for a lawful purpose, and upon a good consideration, although not prescribed by any law, is not utterly void. That the instrument in question was taken for a lawful purpose cannot be questioned. It was taken to secure the faithful performance of duties imposed by law upen a Receiver of Public Money.
Although the question came up in the Circuit Court upon a
This instrument, as set out in the second and third counts in the declaration, bears date on the first day of April, in the year 1836, reciting that the President of the United States had, pursuant to law, appointed the said William Linn to be Receiver of Public Money, for the district of lands subject to sale at Vandalia, in the state of Illinois, for the term of four years from the 12th day of January, in the year 1835, by commission bearing date on the 12th of February, 1835. That the said defendants did then and there, in and by said instrument in writing, by the names, contractions, abbreviations, and descriptions, &c., (naming all the defendants,) • acknowledge themselves to be held, and firmly bound, unto the said plaintiff’ in the sum of, and promised to pay unto the said plaintiffs, one hundred, thousand dollars of money of the United States; to which payment well and truly to be made, they, the said defendants, bound themselves jointly and severally, their joint and several heirs, executors, and administrators, by the said instrument in writing; which said instrument in writing was, however, to be void and of none effect, in case, and upon the condition., that the said William Linn should faithfully execute and discharge the duties of his office of Receiver of Public Moneys as aforesaid; otherwise the said instrumént in writing should abide and remain in full force and virtue. And the question is, whethér this instrument is binding at common law, as a security for the faithful discharge of the duties of Receiver of Public Moneys, by William Linn. The argument urged to the Court against the validity of this instrument, has been presented under the following heads:
1. That the writing is without consideration.
2. - If not without consideration, it was a past and executed consideration.
3. That it is contrary to the policy of the act of Congress, and so void.
These emoluments were the considerations allowed him for the execution of the duties of his office; and his appointment and commission entitled him t!> receive this compensation, whether he gave' any security or not. ' His official rights and duties attached upon his appointment. This was so held by this Court in the case of The United States v. Bradley, 10 Peters, 364. The Court there say, it has been objected that Hall was not entitled to act as paymaster until he had given the bond requiréd by the act of 1816, in the form therein prescribed; and that not having given any such bond, he is not accountable as ' paymaster for any moneys received by him.. We are, say the Court, of a different opinion. Hall’s appointment as a paymaster was complete when his appointment was duly made by the President, and confirmed by the Senate. The giving the bond was a mere ministerial act, for the security of the government; and not a condition precedent to his authority to act as a paymaster. ■’ Having received the public moneys as paymaster, he must account for such money. According to this doctrine, which is undoubtedly sound, Ljnn was a receiver, de jure, as well as de facto, when the instrument in question was given. And although the law requiring security was directory to the officers entrusted'with taking such security, Linn was under a legal as iwell as a moral obligation to give the security required by law; and being entitled to the compensation and emoluments attached to'the office, which by his commission was .to continue for four ’
2. This was not a past and executed consideration. The mere appointment of Linn, as a Receiver of Public Money, was not the consideration of the contract, but the emoluments, and benefit resulting from the appointment formed the consideration. It was a continuing consideration, running with his continuance iu • office; and existed in full force at the time the instrument in question was signed. This appears from the recitals in the contract. The term of office Was four years from the 12th of January, 1835.
'; 3. But it has, been very strongly pressed upon the Court, that it is against the policy of the act of Congress, to allow security to be taken otherwise than by a bond. It may be well questioned whether this objection comes properly under consideration in the question certified to this Court; which is simply, whether this instrument is good at common law. This, in strictness, presents the question entirely independent of the statute, and as if no statute'had ever been passed on the subject. But we do not wish to confine ourselves to ibis narrow view of the question. The act of Congress, under which this.instrument was taken, ( 1 Story, 786 , sec. 6,) directs that a Receiver of Public Mbneys shall, be
The point now presented to this Court is a single and abstract question; whether this instrument is good at common law. It is argued that this instrument is absolutely void, on the ground that it is - .gainst the policy of the act to permit security to be taken in any other form than is prescribed by the act. In a certain. sense this may be true. It is the duty of all public officers intrusted with the execution of powers delegated.to them, to. pursue the directions of the law conferring the power. But to construe all such laws as a special delegation of authority, to be strictly and literally pursued; and to consider every departure from it, as done without authority, and absolutely void; would frequently be defeating the very object and purpose for which the law is made; and ought not to receive such a construction, unless the statute itself declares all such acts void. But if the mere omission to put seals to the instrument shall make it void, every other departure from a strict -and literal compliance with the direction of the act, would make void the -security.'
' This has not been the light in which this Court have viewed analogous cases. In the case of The United States v. Bradley, already referred to, the Court say, “it has been urged that the act. of 1816,ch. 69, does, by necessary implication, prohibit the taking of any .bonds from Paymasters other than those in the form prescribed by the 6th section of the act; and, therefore; that bonds taken in any other form, are utterly void. We do not think so. The act merely prescribes the form and purport of the bond to be taken of-Paymasters by the War Department, r It is in this respect directory to that department; and, doubtless, it would he illegal for that department to insist upon a bond containing other provisions and conditions, differing from those prescribed or required by law. But the act has nowhere declared that all other bonds, not taken in the prescribed’ form, shall be
The act under which the security, in that case, was taken, is substantially the same as the one under which the instrument now in question was taken. 3 Story, 1575 . It requires the Paymaster to give good and sufficient bond to the United States, fully to account for all moneys and public' property which he may receive, in such sums as the Secretary of War shall direct. All the reasons urged in favour of the validity of the bond in that case, apply with equal force to the one now before the Court. The only departure of the instrument from the directions of the act, is the want of a seal; and this, as is said in the case against Bradley, may have been omitted by'mntual mistake, or accident, and wholly without design. We think that the mere want of seals is not such a departure from the act as to warrant the Court, upon any supposed principles of public policy, to pronounce this instrument utterly void; it being good at common, law, and given in furtherance of the great object of the statute, and as security for the faithful discharge of the duties required of the office.
We are accordingly of opinion that the second question must be answered in the affirmative.
Mr'. Justice Story, Mr. Justice M‘Lean, and Mr. Justice-Baldwin, dissented.
This cause came on to be heard on the transcript of the record from the Circuit Court of the United States, for the District of
Cases cited
- Miller v. Stewart 9 Wheat. 680 p. 310
- Walton v. United States 9 Wheat. 651 p. 310