Young v. Bryan

• Decision Date: 22 February 1821
• Citation: 5 L.Ed. 228,19 U.S. 146,6 Wheat. 146
• Parties: YOUNG v. BRYAN et al
• Court: U.S. Supreme Court

19 U.S. 146

5 L.Ed. 228

6 Wheat. 146

YOUNG v. BRYAN et al.

February 22, 1821.

ERROR to the Circuit Court of Tennessee.

This was an action of assumpsit, brought in the Court below, by the defendants in error, citizens of Pennsylvania, against the plaintiff in error, a citizen of Tennessee, as the endorser of a promissory note drawn by another citizen of Tennessee, and endorsed to the plaintiff. The only questions in the cause were,

(1.) Whether the Court below had jurisdiction; and, (2.) whether notice of protest was necessary to charge the endorser in this case. Judgment having been rendered against the defendant below, the cause was brought by writ of error to this Court.

Mr. Eaton, for the plaintiff in error, (1.) argued, that under the 11th section of the judiciary act of 1789, c. 20, the Court below had not jurisdiction. The decision of this Court, in the cases of Montalet v. Murray, 4 Cranch 46, and Turner v. the Bank of North America, 4 Dall. 11, shows, that where jurisdiction does not attach between the drawer and drawee, assignment cannot give jurisdiction. The endorser can only transfer by the assignment, the rights and interest he possesses; as he had no right (he and the drawer being citizens of the same State) to sue in the Federal Court, he could not consequently create any such right by the assignment. It would amount to a creation of jurisdiction by consent, which the law does not warrant. The case of Slacum v. Pomery, 6 Cranch 221, went off on the ground of the want of notice. At any rate, that was a foreign bill, and perhaps within the operation of the 11th section of the judiciary act: it is, then, not authority in this case. In the language of the 11th section of the judiciary act this is a 'suit to recover the contents of a promissory note in favour of an assignee,' &c. The declaration contains but a single count, founded upon the assignment, non-payment, and consequent liability of the plaintiff in error. There is no count for money had and received; there is but a single count, and that is to recover the contents of the note, a chose in action, which is against the express provision of the act. There is no distinct substantive contract, between the endorser and holder of the note; and, if there were any, it is not declared on. (2.) No notice of protest was given. This was necessary to charge the endorser: French v. Bank of Columbia, 4 Cranch. 141; Donaldson v. Means, 4 Dall. 109; and the declaration should contain an averment of notice of protest. Slacum v. Pomery, 6 Cranch 221.

Mr. Sergeant, contra, (1.) admitted, that where by the judiciary act, jurisdiction does not attach between the drawer and the payee of a note, assignment cannot give jurisdiction. Such, and no more, is the amount of the decisions referred to. If the payee of the note could not maintain a suit in the Federal Courts against the drawer, neither can the endorsee maintain a suit in the Federal Courts against the drawer. But the jurisdiction of the Federal Courts extends to the case of a suit brought by the endorsee against the endorser, being citizens of different States, whether a suit could have been there brought against the drawers or not. By the words of the act, a general jurisdiction is given, in terms embracing all cases where citizens of different States are parties. Being in conformity with the provisions of the Constitution, and intended to secure to the suitor an impartial tribunal, it ought to be libereally construed. Out of this general grant, there is a particular exception, which ought not to be extended beyond its natural construction, but rather to be strictly taken, being against constitutional right; and if there be doubt, that interpretation should be given which is most favourable to the jurisdiction. The words are, 'Nor shall any District, or Circuit Court, have cognizance of any suit to recover the contents of any promissory note, or other chose in action, in favour of an assignee, unless a suit might have been prosecuted in such Court to recover the said contents, if no assignment had been made, except in case of foreign bills of exchange.' These words necessarily import a...