Jackson v. Dwight

No. 532
Decided Circuit Court of Appeals, Fifth Circuit
Disposition
affirmed
full scope · unanimous
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Court
Circuit Court of the United States for the Western District of Texas
Decided
Judge
PER CURIAM
Posture
Judgment rendered for defendants in error after trial without jury
Defendants in error / Plaintiffs in errors (2)
Jackson, Cramer & March
S. R. Fisher, J. O. Townes
v.
Plaintiffs in error / Defendants in errors (2)
Dwight, Skinner & Co.
W. W. King, Oscar Bergstrom

Overview

The judgment of the circuit court is affirmed.

Case summary

This case involves a dispute between wool factors in Texas (Jackson, Cramer & March) and Connecticut (Dwight, Skinner & Co.) regarding wool shipments in 1893. The Texas factors shipped wool to the Connecticut factors, who advanced money against it. When wool sales proceeds were insufficient to cover advances and expenses, the Connecticut factors sued for the deficiency. The Texas factors defended on three grounds: (1) the wool was purchased rather than consigned, (2) prices were guaranteed, and (3) the transaction was illegal under common law and Texas statute prohibiting factors from purchasing consigned goods without written authority. The trial court, sitting without a jury, found for the Connecticut factors on all issues and entered judgment for $2,812.64. On appeal, the Circuit Court affirmed, holding the findings supported the judgment and the in pari delicto doctrine did not apply.

Abstract

Texas wool factors shipped wool to Connecticut factors, who advanced money against it but sued for the deficiency when sales proceeds fell short. The Texas factors defended by claiming the wool was purchased rather than consigned, prices were guaranteed, and the transaction was illegal under prohibitions on factors buying consigned goods without written authority. The courts rejected these defenses, found in favor of the Connecticut factors, and affirmed the judgment, holding the in pari delicto doctrine inapplicable.

Opinion of the court

Majority
opinion
PER CURIAMjoined by PARDEE, McGORMIOK, NEWMAN
  • Findings of fact fully support judgment
  • No room for application of in pari delicto doctrine
  • Judgment affirmed

Jurisdiction

not challenged
Subject matter
Writ of error from Circuit Court of the United States for the Western District of Texas
Jurisdictional facts
  • Suit brought in circuit court for Western District of Texas at Austin
  • Record brought on writ of error for revision of judgment

Procedural posture

Posture at trial
Judgment rendered for defendants in error after trial without jury
Posture on appeal
Direct appeal via writ of error
Preserved issues
  • Whether facts found by court warrant judgment rendered
  • Application of in pari delicto doctrine

Legal categories

Business

Case record

Full case name
JACKSON et al. v. DWIGHT et al.
Docket number
No. 532
Court
Circuit Court of Appeals, Fifth Circuit
Trial court
Circuit Court of the United States for the Western District of Texas
Decided
Opinion author
PER CURIAM
Opinion type
per curiam
Precedential status
precedential
Judges on panel
PARDEEMcGORMIOKNEWMAN

Issues & holdings

2
Issues raised
2
affirmed
2
Holdings
Standard of review

Not explicitly stated but implied de novo review of legal conclusions from facts

Disposition rationale

Findings fully support the judgment

Preservation

Issue preserved for review

Standard of review

Not explicitly stated but implied de novo review of legal doctrine application

Disposition rationale

No room for application of the doctrine under the facts found

Preservation

Issue preserved for review

Holdings of the court

Sufficiency of facts to support judgment
The findings of fact fully support the judgment rendered
Careful examination of pleadings and findings shows judgment was warranted
unanimousbinding precedent
Application of in pari delicto doctrine
The doctrine does not apply to bar recovery in this case
No room for application under the facts as found; plaintiffs were entitled to judgment despite defendants' claims of illegality
unanimousbinding precedent

Error analysis

  • Trial court erred in finding facts do not warrant judgment — procedural · no error foundNot applicable as no error found
  • Trial court erred in not applying in pari delicto doctrine — legal · no error foundNot applicable as no error found

Statutory interpretation

1
Statute
Texas Revised Statutes 1895, article 2432
Question
Whether violation of statute prohibiting factors from purchasing consigned goods without written authority bars recovery on unrelated drafts
Court's reading
Violation does not bar recovery on drafts where cause of action does not require aid from illegal transaction
Canons applied
Plain meaningRemoteness of connection

Burden of proof

Prosecution burden
Preponderance of evidence (civil case)
Burden met
true

Standards of review

  • Whether facts found warrant judgment — de novo Implied review of legal conclusions from found facts
  • Application of in pari delicto doctrine — de novo Implied review of legal doctrine application to found facts

Timeline

6
Events
1,167
Days, incident to ruling
—
Span
factual eventcited in opinion

H.C. Dwight visits San Angelo, Texas and negotiates with J.N.P. Cramer regarding wool shipments

Initial agreement reached for wool shipments and advances

Nature of transaction (purchase vs. consignment)Illegality of transaction
H.C. Dwight · J.N.P. Cramer San Angelo, Texas
1893-05-20 to 1893-07-20factual eventcited in opinion

Plaintiffs ship wool to defendants and draw 12 drafts against it totaling $45,409.40

Creates the debt that forms basis of lawsuit

Enforceability of draftsIllegality defense
Jackson, Cramer & March · Dwight, Skinner & Co.
1893-06 to 1893-07factual eventcited in opinion

Defendants pay wool owners full market price for wool approximately 30 days after agreement

Shows defendants fulfilled obligations to original consignors

Illegality defenseIn pari delicto doctrine
Jackson, Cramer & March · Wool owners
filingcited in opinion

Defendants in error bring suit in circuit court for Western District of Texas

Initiates the legal proceedings

Dwight, Skinner & Co. · Jackson, Cramer & March Austin, Texas trial court
trial eventcited in opinion

Trial by court without jury, judgment rendered for defendants in error

Outcome: Judgment for $2,812.64 for defendants in error

Trial court decision appealed from

All issues on appeal
Circuit Court Judge trial court
rulingcited in opinion

Judge files conclusions of fact and law finding against plaintiffs on all issues

Outcome: Formal findings supporting judgment

Provides basis for appellate review

All issues on appeal
Circuit Court Judge trial court

Facts & evidence

Incident

Date
1893-1895
Location
San Angelo, Texas and Hartford, Connecticut

Key facts

7 facts
  1. Plaintiffs in error were wool factors in San Angelo, Texas
  2. Defendants in error were wool factors in Hartford, Connecticut
  3. In May 1893, H.C. Dwight visited San Angelo and negotiated with J.N.P. Cramer regarding wool shipments
  4. Plaintiffs shipped wool to defendants and drew drafts against it totaling $45,409.40
  5. Proceeds from wool sales were less than advances and expenses, resulting in $2,812.64 deficiency
  6. Defendants paid full market price to wool owners about 30 days after agreement
  7. No written authority existed for some wool purchases from consignors

Disputed questions

  • Whether wool was purchased by defendants or consigned for sale
  • Whether defendants guaranteed prices for wool
  • Whether transaction was illegal under common law and Texas statute

Procedural history

4 steps
  1. November 18, 1895: Defendants in error brought suit in circuit court
  2. July 10, 1896: Trial by court without jury
  3. July 11, 1896: Judgment rendered for defendants in error for $2,812.64
  4. Appeal filed via writ of error

Evidence in the record

Testimonial
  • Testimony regarding negotiations between Dwight and Cramer
  • Testimony regarding authority to consign or purchase wool
Documentary
  • 12 drafts drawn by plaintiffs against defendants
  • Exhibit A to defendants' amended answer
  • Tabulated statement in defendants' answer
Challenged
  • Evidence type: Testimony and documents regarding wool transactions · Challenge basis: Illegality under common law and Texas statute · Trial court ruling: admitted · Reasoning: Facts found showed no defense to suit on drafts · Challenged on appeal: true · Appellate outcome: affirmed

Jury

Jury selection issues
Jury waived by stipulation in writing
Voir dire process
Not applicable - bench trial
Jury instructions given
  • Not applicable - bench trial

Sentencing

Sentence imposed
Judgment for $2,812.64 and costs
Sentence type
discretionary
Sentencing date
1896-07-10

Objects of relevance

Wool shipments from Texas to ConnecticutDrafts drawn against wool shipments

Authorities

Cited authorities (5)

Kaufmann v. Beasley, 54 Tex. 563
citedprecedent
Cited by appellants for common law rule that factor has no authority to purchase consigned goods
Rev. St. 1895, art. 2432
appliedquotedstatute
Texas statute prohibiting factors from purchasing consigned goods without written authority
Irwin v. Williar, 110 U.S. 510
citedprecedent
Cited by appellants for principle that party privy to unlawful design cannot recover
Floyd v. Patterson, 72 Tex. 202
citedprecedent
Cited by appellees for test whether demand connected with illegal act can be enforced
Brooks v. Martin, 2 Wall. 70
citedprecedent
Cited by appellees for principle that illegality of original contract cannot defeat recovery on independent transaction

Statutes

  • Texas Revised Statutes 1895, article 2432 (prohibiting factors from purchasing consigned goods without written authority)

Standards & doctrines

  • In pari delicto doctrine
  • Factor's common law duties
  • Remoteness doctrine for illegality defenses

Legal principles applied

  • Courts will not enforce contracts in violation of law
  • Test for illegality defense: whether plaintiff requires aid from illegal transaction
  • Remoteness doctrine in illegality defenses
Index terms84
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Various actors
Legal concepts
Legal outcomes
Legal issues
Legal procedures
Legal remedies
Legal evidence
Legal arguments
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Judges
Attorneys
Procedural terms
Substantive offenses
Entities and documentation
Legal actions
Action type
affirmed
Target
trial court judgment
Appealed from
Circuit Court of the United States for the Western District of Texas
Context
The judgment of the circuit court is affirmed after finding that the facts fully support the judgment and there is no room for application of the in pari delicto doctrine
Scope
full
Disposition vote
unanimous
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