Brown v. Jackson

• Decision Date: 05 March 1822
• Citation: 5 L.Ed. 438,20 U.S. 218,7 Wheat. 218
• Parties: BROWN and Others v. JACKSON
• Court: U.S. Supreme Court

20 U.S. 218

5 L.Ed. 438

7 Wheat. 218

BROWN and Others v. JACKSON.

March 5, 1822

Appeal from the Circuit Court of New-York.

This suit was brought in consequence of the decision of this Court in the case of Brown v. Gilman and for the general history of the facts, reference was made to that case.

The bill charged, that on the 13th of January, 1795, the State of Georgia was seised in fee of a certain territory within the boundaries of said State, &c. estimated to contain 11,380,000 acres, and bounded, &c. that on the same day, by force of an act of the legislature of said State, passed on the 7th of January, 1795, George Matthews, the Governor, by letters patent, conveyed said territory to Nicholas Long and others, and their associates, called the Georgia Mississippi Company, reserving 620,000 acres for the use of the citizens of Georgia; that afterwards, on the 20th of January, 1796, certain articles of agreement were made between the defendant Amasa Jackson and William Williamson, authorized by said Company, to sell—and George Blake and sundry persons, who became the New-England Mississippi Land Company; that it was stipulated in the said articles, that on or before the 12th of February, then next, said Jackson and Williamson should fill up and complete to said B. and others, a deed of conveyance, (which had been executed by the G. M. Company in Georgia,) of all the right and title of the G. M. Company, derived from the State of Georgia; that said Blake and others agreed by the articles to deliver their notes for the payment of two cents for each acre of land by them subscribed for, previous to the first of May, then next; and for the further payment of one cent more for each acre, on or before the 1st of October, then next; and a further payment of two and a half cents per acre, within twelve months from said 1st of May; and a further payment of two and a half cents, &c. on the 1st of May, 1798; and a further payment of two cents more, on the 1st of May, 1799; in the whole, ten cents per acre, &c. And thereby it was agreed, that as soon as said deed should be prepared, &c. said deed should be delivered by said defendant, Jackson, to some person appointed by said parties, to be held as an escrow, on condition that if the notes or moneys due on the 1st of May, should not be paid, the deed should be re-delivered, and the associates should not be liable for the failure of each other; but if the notes were paid, the deed should be delivered to said Blake, &c. who were then to be severally liable for their own notes. That on the 11th of February, 1796, said Blake and others entered into articles of association, by the name of the N. E. M. L. Company, by which it was agreed that Leonard Jarvis, Henry Newman, and William Wetmore, should be a committee to receive a deed from the defendant Jackson, and William Williamson, of the said lands, belonging to the G. M. Company, for the use of the N. E. M. L. Company; and should execute to the several subscribers thereto, deeds of their respective proportions, to hold as tenants in common, and also, a deed of trust to trustees, &c. and a board of directors should be appointed; and it was agreed the trustees should give each proprietor a certificate in the form, &c. which should be complete evidence, &c. and transferrable by endorsement. And to carry such articles of agreement into effect, a deed of indenture, dated 13th of February, 1796, purporting to be made by said Long and others, of one part, and Wetmore, Jarvis, and Newman, of the other, was executed, whereby they conveyed said territory, (excepting said 620,000 acres,) to said W., J., and N., and the survivor, in fee; and was delivered to G. R. Minot, as an escrow, with an endorsement. The first payment to be made on the 1st of May, aforesaid, was duly made by every member, except, &c. and the defendant Jackson, and Williamson, personally delivered said deed to said grantees, and endorsed thereon, &c. 'free of conditions.' That prior to said absolute delivery, to wit, on the 10th of December, 1796, an agreement of two parts was entered into betwen the associates of the N. E. M. L. Company, and the defendant, Jackson, wherein it was agreed that certain proceedings of certain scrip-holders of the G. M. Company, being also members of the N. E. M. L. Company, so far, &c. should be void; and that the associates of the N. E. M. L. Company should have no control over papers of the G. M. Company; but would deliver to the defendant, Jackson, so many of their certificates or scrip, as amount to 103,480 acres, computing the whole at 11,380,000, as an equivalent to the G. M. Company, for a loss by failure of Seth Wetmore, &c. subscriber for 100,000, who had not paid—said defendant, Jackson, to be accountable to said associates for such portion of Wetmore's notes, if recovered, as was equivalent to the debt assumed to be paid, i. e. 10,348 dollars; and thereupon said defendant, Jackson, should deliver said deed of conveyance absolutely, and within, &c. procure from the G. M. Company a confirmation, and deliver the same to said associates; and the defendant, Jackson, covenanted not to negotiate the notes until the confirmation was procured. And on the 17th of February, 1797, said defendant, Jackson, delivered to Wetmore Jarvis, and Newman, a deed of confirmation from Long and others, reciting, &c. and ratifying said deed of conveyance of said tract of land, excepting said 620,000 acres. That on the 28th of February, 1797, an indenture of two parts, between Oliver Phelps and others, of the one part, and Jarvis, Newman, and Hull, of the other, was made, wherein reciting said conveyances, said associates conveyed to J., N., and H., and survivor, to hold said land in trust, &c. according to articles of agreement, constituting the N. E. M. L. Company. That William Wetmore, Jarvis, and Newman, still retained their shares of said purchase as subscribed, viz.: the said W. 900,000 acres, N. 2,000,000, and J. 500,000, who, to place their shares in the same condition, on the same 28th of February, 1797, by deed poll, released to John Peck, their several proportions, being 3/11, 400/330, 000/000 in trust, to convey the same to J., N., and H., and survivor, to be held by them in trust for same uses as expressed in deed of associates; and on same day, said Peck conveyed the same land to said J., N., and N., to be held accordingly; by which means J., N., and H., were seised of all said tract; and H. the survivor, continued so seised until his deed to the United States. Trustees delivered certificates to the members of the N. E. M. L. Company, expressing, &c. whereby each became entitled to an equitable interest in his share.

That on the 31st of March, 1814, the Congress of the United States passed an act for the indemnification of claimants of public land in the Mississippi Territory, &c. by which act, 1,550,000 were appropriated for persons claiming under the G. M. Company. That on the 25th of January, 1815, Congress made a supplementary act, appointing a board of Commissioners, instead of the first, to meet on the 4th Monday of January, &c. That on the 3d of March, 1815, Congress, passed another act, &c. providing that in certain cases, the Commissioners might allow further time, not over two months from the 3d Monday in March, and to adjust all such claims as should be, or might have been released, &c. within the time limited; and empowering the President to issue certificates for decided claims. That on the 18th of January, 1814, the Members of the N. E. M. L. Company authorized their directors to release to the United States the whole claim of said company, under the act of Georgia, and required the trustees to execute deed, &c. and certificates to be received therefor from the United States, should be held by the Treasurer, to be disposed of by order of the directors for the use of the claimants. And on the 24th of November, 1814, W. Hull, sole surviving trustee, made a deed poll to the U. S. releasing, &c. territory described, being the same conveyed by Georgia, as aforesaid, and on the 25th of January, took the oath. And that the directors on the 7th of December, 1814, made their deed poll, releasing all right of said company and the members thereof, to said land; also, all claim to money, &c. to the United States, in fee.

The said directors conformed in all things, &c. and became entitled to the whole indemnity, provided, &c. amounting to 1,550,000. Nevertheless, said Commissioners did decree that certain individuals holding scrip under the N. E. M. L. Company, to the amount of 2,795,017 acres in all, who personally applied to said Commissioners, among whom was said defendant, Jackson, who (said Jackson) held scrip to the amount of 691,677 acres, should receive their indemnity directly, without permitting the same to go through the hands of the directors, &c. and said individuals have received their several proportions accordingly, estimating the same at $13 62 cents per acre, deducting a certain sum for expenses. Whereas said Commissioners did not estimate said expenses correctly, by a sum exceeding 7000 dollars, and no provision was made to compel said individuals to contribute to future expenses, or any subsequent diminution of the remaining amount of indemnity, as hereafter stated, which reduces the amount to more than two cents per acre less than the amount received by said individuals. Commissioners did secondly decree that indemnity upon 957,600 acres, amounting, at the rate of $13 62 cents, to $130,425 12 cents, should be deducted from claims, by the N. E. M. L. Company, on account of certificates issued to its members, who appeared to be in default in payment of purchase money to the G. M. Company; and determined said certificates to be bad, and the parties claiming under them not entitled to indemnity; and allowed said sum of $130,425 12 cents, to be issued to the defendant, Jackson, for the benefit of himself and...