Robertson v. Frank Bros Co

Decision Date28 October 1889
Citation10 S.Ct. 5,132 U.S. 17,33 L.Ed. 236
PartiesROBERTSON, Collector, v. FRANK BROS. CO
CourtU.S. Supreme Court

Sol. Gen. Chapman, for plaintiff in error.

H. E. Tremain, M. W. Tyler, and W. B. Coughtey, for defendants in error.

BRADLEY, J.

This is an action to recover for an alleged overcharge of duties on imports. The goods imported were bananas brought from Aspinwall. The duty was 10 per cent. ad valorem. The plaintiffs offered evidence tending to show the market value of the bananas at the port of shipment, which was claimed to be only 50 cents apiece for the large bunches, and 25 cents apiece for the small bunches. The invoices received with the cargo exhibited this as the true market value. and added certain charges for labor and consul fees. The appraisers required the plaintiffs to add 50 per cent. of these amounts as transportation charges for bringing the bananas into Aspin wall, and also certain shipping charges and commissions. The plaintiffs protested against this as an unjust addition; but whenever it was omitted the charge was added by the appraiser, and a penalty of 20 per cent. of the whole duty was imposed and exacted; and the officers declared that this would be done whenever the addition should be omitted. To avoid this penalty, and to get immediate possession of their goods, (which are of a perishable nature,) the plaintiffs made the addition required, and paid the increased duties that resulted, but always under protest, as before stated. The form of the entries and invoices, with the additions, was as follows, the additions being in italies:

Entry.

'Merchandise imported by Frank Brothers Company in the steam-ship Alsa, whereof Seymour is master, from Aspinwall to New York, Feb. 23, 1882. Marks, F. B.'

'Two bins of bananas, containing 4,132 large bunches, at sixty cents,' 'pesos, 2,479.20,' '3,463 small bunches at thirty cents,' '1,038.90 pesos.'

'Charges, two hundred and thirty-nine pesos.'

'Shipping charges added, as required by the appraiser, to make five cents Colombian currency per bunch, 140.38 pesos.'

'Transportation charges added, as required by appraiser, on 4,132 large bunches at 25 cents, $1,033, and 3,463 small bunches at 12 1/2 cents, $432.87.'

Invoice.

'Invoice of merchandise shipped by the Frank Bros. Co. on board the Alsa, Sansome, master, bound for New York, and consigned to Frank Bros. Co.; Colon, Feb. 11, 1882, 2 bins, containing:

"4,202 bunches bananas at 60. 2,521 20 pesos.

"3,564 bunches bananas at 30. 1,069 20 "

"Charges for labor............ 239 37 "

"Consul fee...................... 3 "

----------------

3,832 77 "

"The Frank Bros. Company.

"4,132 large bunches at 60.. 3,479 20 "

"3,463 small bunches at 30.. 1,038 90 "

"Charges...................... 239 37 "

"Shipping charges added, as

required by the appraiser,

to make 5 cents Colombia

currency per bunch........... 140 38 "

---------------

3,897 85 "

---------------

"Reduced to U.S. currency.......... $3,207 93

"Transportation charges added,

as required by the appraiser,

on 4,132 large bunches at 25

cents................................ 1,033

"3,463 small bunches at 12 1/2 cents. 432 87

---------

$4,673 80

"Commission, 2 1/2 per cent.......... 116 84

---------

$4,790 64"

The appraiser's return indorsed thereon was as follows: 'Value correct, with importer's additions.'

It was contended by the counsel for the government at the trial, and is contended here, that the payment of the duties complained of was a voluntary payment, inasmuch as the plaintiffs themselves made the additions to the entries and invoices, and that therefore they cannot recover back any part of the money so paid; and they requested the court below to instruct the jury to render a verdict for the defendant. This the court refused to do, and left it to the jury to decide, upon the evidence, whether the making of the additions was a voluntary act on the part of the plaintiffs, or done under constraint, in view of the penalty sure to be imposed in case it was not done. On this point the judge, in his charge to the jury, speaking of the entry and the additions made by the plaintiffs or their agent, said: 'He says he put them on there because he was compelled to. If that is so, he ought not to be estopped from recovering, and here is a question for you on that subject, and you will decide it in this way: If those statements and figures were put on there because he thought that was the best way, on the whole; if, exercising his own judgment freely, he thought that it was the best way to get along with this to put it on there are let it go,—he can't take it back; * * * he can't recover anything back. The verdict will have to be for the defendant anyway, if that is so, because it was his own act in putting it on there. The collector assessed the duty just as he made it, and he can't complain. 'But * * * if he was required to do it, or given to understand by some officer in the collector's department that it would be the worse for him, seriously, if he didn't,—as for instance, if the appraiser told him, if he didn't put those on there, the collector's office would, that the appraiser would, and that he would be exposed to a penalty that would be assessed against him; if he was given to understand by the collector's department, or some officer of it, that, if he didn't put these figures on there, they should, and make it the worse for him because he didn't, and he would thereby be exposed to a penalty of a larger duty which he would have to pay for not doing it, and he was in that way, for the sake of saving himself from the penalty which they would put upon him beyond what would otherwise be chargeable, induced to put them on, then he is not bound by it. * * * If you find he did not do it freely, then you can look further, and see if there was anything put on there that ought not to be. If he was compelled to do it, it ought not to go on; and if he was, the plaintiffs are entitled to recover. And, if you decide he is bound by putting that on, that will end the case; you must give a verdict for the defendant. If not, you may look and see if he was compelled to pay more than he ought,—if he was compelled to pay transportation charges more than he ought to,—and, if so, find a verdict for the right amount. If they were compelled to pay labor charges more than they ought to pay, find the verdict for the plaintiffs for the right amount of that. If they didn't pay any more than they ought to, transportation or labor charges,—then the verdict is for the defendant.'

Under this charge, of course, the jury, in finding for the plaintiffs, must have found that they acted under constraint—under moral duress—in making the additions for transportation and labor. We do not see how the verdict can be set aside for error in the charge on this point, unless the law be that virtual or moral duress is insufficient to prevent a payment made under its influence from being voluntary. This point was discussed in Maxwell v. Griswold, 10 How. 242, 256, and in Swift Co. v. U. S., 111 U. S. 22, 28, 4 Sup. Ct. Rep. 244. In Maxwell v. Griswold an appraisement was erroneously made as to the point of time of the valuation, and the importer paid the consequent excess of duties. The government contended that this was voluntary. But this court said: 'This addition and consequent payment of the higher duties were so far from voluntary in him that he accompanied them with remonstrances against being thus coerced to do the act in order to escape a greater evil, and accompanied the payment with a protest against the legality of the course pursued towards him. Now, it can hardly be meant, in this class of cases, that, to make a payment involuntary, it should be by actual violence or any physical duress. It suffices if the payment is caused, on the one part, by an illegal demand, and made, on the other part, reluctantly, and in consequence of that illegality, and without being able to regain possession of his property except by submitting to the payment. All these requisites existed here. We have already decided that the demand for such an increased appraisal was illegal. The appraisement itself as made was illegal. The raising of the invoice was thus caused by these illegalities in order to escape a greater burden in the penalty. The payment of the increased duties thus caused was wrongfully imposed on the importer, and was submitted to merely as a choice of evils. He was unwilling to pay either the excess of duties or the penalty, and must be considered, therefore, as forced into one or the other by the collector colore officii through the invalid and illegal course pursued in having the...

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