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FEDERAL CIRCUIT COURT.
ON F:u v the *5 b uli. it* tbc iedtral circuit
court, he I - tu he city cl Cbarltfton, tbc important
caul* of William Higginfon, fuiviving co-parncr
of Greenwood and Higgmfon, of Loudoo, mer
chatrs; and William Giseuweod, fuiviving co
partner of Lcgcr and Greenwood of Charlcftoo an’
George Crofts aod Co. of Georgetown—Wib agaui
argued, and at length determined by a jury.
Tb:« fait was originally infti'ued by a bill in
equity, agaioft the (urviving Co-par:n«r, and the
executors of the deccafcd co-partpers, for the per*
forraanre of contra&a and a * difeovery of aflett.
A oemurrer to the bill, and a plea to the jurifeiidi
on of the court, was argued at Oftober frrm,
1791; the plea and demutrer were over-ruled,
and tbc'partica ordered to anfwcr over. A writ
of error from thi* order w*s tendered at Ofiober
term, 179a. and the question of appeal fully ar
gued. The judge* were of opinion that no appeal
lay to the supreme court, but ftora final judgment*
and decrees ; and this being only an interlocutory
order, the fame should be eadorfed on the writ of
error. Upon this, the defendants fcvcrally filed
anfwcr* to the bill in equity, and at last May term
. the coonfel for the defendant* applied to the court
at Colombia to have this caufc referred to a jury,
to find a quantum of debt due ; fuggefling, that ai
the objetf of he bill ia eaquity was anfwcred,
(viz. a difeovery aftets) therefore plain, adequate
and complete remedy could be now had at law.
Judg« Paitcrfon waa for retaining the cause to be
determined in equity: judge Bee for fending it to
a jury to affrfs the balance then due. The court
being divided, the motion fell to the ground ; and
tb» caufc in equity wai then fully argued on the
merits, which were ai'follow :
It appeared, by the pleadings and the evidence,
that in 1771 the detendan a wrote to the complain
ants to supply them with goods, and agreed to
allow the usual com million on the purchafcs,
and five per -cent, interest ; that the accounts of
the complainants (hould be fettled and balanced
every year, and interest charged 00 the fcvcral
invoices after a certain period from their refpedive
dates; and if not paid at the cod of each year,
ftnuid be added to the principal, and draw interest
also at five per cent.
This appeared to be according to the custom of
me chants engaged m that trade at the fame time.
The dealings between the parties were continued
for fevcral years, and the accounts of the complain
ants were Hated according to agreement, and sent
over to vbe defendants, until the 31st of December,
3777, which they acknowledged to have received,
and to be just.
Mr. William Greenwood, one of the defend
ants, and the only surviving co-partner of both the
companies in America, was put on the confifcation
lift in South Carolina, aud his property ftquefiered
for the use of the state in i;Bz. He afterwards
went to England, and the complainaut there ap
plied to him to acknowledge a stated accouat a
gainst Lcgcr and Greenwood, which was made up
to the 31st of December, 1783," to the amount of 3-
bout 34,000!. in which compound interest was
charged tor the whole time. He desired this
might be signed and acknowledged, for the purpose
of recovering it of the commitliocers of confifcaced
property in South-Carohna, which the defendant
figued accordingly ; but, in bis anfwcr to the bill,
he avers that he was under a durtfs, and figued
without examination. There was some evidence
to this point. >
The caufc was argued with great ability, learn
ing and eloquence on both Tides. The complain
ants contended that they were entitled, by virtue
of the contract aud the custom of the trade, to the
principal and interest on their debt during the whole
time, aud i tereft on the accumulation each year.
Many cases from the law were produced in sup
port of their claim, and the treaty of peace was
particularly infilled on.
The defendant contended, that no compound
interest ought to be allowed after the mutual deal
ings of the parties had rsafed ; and that no interest
at all ought to be paid dutiug the war. Aa all com
munication wa* prohibited by the sovereign power
of each nation, it w 1 unlawful, and indeed irapof
fiblc, to make remittances ; that the complainant
being aa alien enemy, had no power tc Tut, and
bad no demand during the war ; that his claim
was forfeited by the laws of nations; and that the
treaty of peace only renored him to tre right he
had at the commencement of tbc war: That the
word debts in the treaty did not include interest
of courie; and that, in treaties where interest is
intended to be included, it is always mentioned:
[fcvcral extrads from treaties were read in proof
of this.] That the aAof a sovereign of 4 state, is
the aft of every individual who compofe* it ; and
tbit the complainant did, id faft, hinder the de
fendant fiom making payment, and therefore he
•liould not have interest, which is damages for dc
taining tbe debt j bciides, that in a great national
calamity, wbeic the defendants could receive no
profits, no interest ought in equity to accrue. This
appeared to have been the law in Ireland, and ought
to be io here, &c.
Ihe judges delivered their separate opinions with
great cicarncfs and precision.
judge Bee was of opinion, that the complainants
ihould recover interest, according to tbe contract,
till 1777, on both debts; that the interest should
then cease till November, 1782, the time of sign
ing the proviiional articles of the treaty of peace,
and ihould then commence according to tbe eon*
traft, and continue till paid.
judge Paterson was cf opinion, that the Com
pound interest should be paid on both debts, du
ring the time the parties had mutual dealing*, to
wit: On the i6,coo T . till 1777, due from George
Crofts and Co. and then to draw fimpie interest at
5 per cent, till paid, that being the time the deal
ings ceased, and that the 34,000!. draw com
pound interest till December, 1783, the' time the
dialings with Lcgerand Greenwood ceased, from
which time it ihould draw fimpie interest at 5 per
cent, till paid. He was of opioioo, that the trea
ty of peace restored the complainants to all the
rights they would have had if no war bad been; and
that the imereft was a neceftary confcqutace of the
debt, and was intended by the treaty of peace.
The court being divided, no final decree was
made.
The motion for leading the cause to a jury, being
renewed at this term, the matter was fully argued
by tbe counsel on each fide. The court were of
opinion,, that as the judges were divided on both
points at May term last, the caufc should be coo
firferfid as in the fame fituatioa now that it was
theni and on the merits of the motion, were of
opinion for directing an ifiuc to a jury, to fix the
quantum of debt now -Jus from the defendants to
the complainants; which ifTuc being accordingly
made up ; the cause came on for argument, oa
Tuefday the 20. h u!c. before a special jury, fum
moued and impsuaciled, by consent of parties,
agreeably to the mode praftizsd in the ftatc courts
of South-Carolina, coufiftiug of the following gen
tlemen :
David Alexander, Joshua Hargreaves, Robert
Henry, Robert Harvey, John Black, James Bulgin,*
Daniel Defaotfure, Edward Darrell, Edward N <rth,
James M*Call, William Somerfaii, Jofepb Vefey
—the fix firft being B itifh, fettled here since the
peace ; the latter Americans.
The fame ground* of argument that were infilled
on at Columbia, in May last, were gone over again,
with great clearnsi* aud precision, udd many new
ones adduced by the counsel on both sides, who
excer'ed tkCmftlves, if poflible, beyond their usu
al endeavors, in favor of their rcipcciivc clients.
The couit aud jury attended with gteat latirfadicn
to thclt argument!, which were continued for two
days, from morning till fun set.
In charging the jury—judge Cuihing was clearly
of opinion, that this transaction being on a written
contract, in the stature of a covenant, in which
interest was cxprcfsly fiipulatcd, the fame ihould
not be considered in the nature of, damages, but
that the one was as much due as the other, and
of corrfe, tnat the 4th article cf the treaty of peace
applied iuily to the case as a bttia f.te debt here
tofore contracted ; that the feverai cases produced
from the law of nations, cuftcm of merchan a and
other treaties, did not apply in this laftancc : he
therefore directed the jury to find the full sum
demanded, both principal and interest.
Judge Bsc differed ; he was of opinion that the
contrail originally was entered into for the mutual
benefit of tbe parties; that the defendants being pre
vented from performing their part by the fovcrcign
power of both nations ; abd it appearing particular
ly, that property /hipped by the dettuoants in a
circuitous voyage, to remit money to the plaintiffs
had been esptuted and condemned in England, the
mutual advantages of course ceased when faoftilitics
commenced, as aifo mutual dealings; aud hence the
determination in the caie of Sterling aud Drum
mond, in the house of lords iu Englaud, that no
compound interest ihould be allowed. The 4th
claufc of the treaty of peace had ever appeared to
him as chicfiy intended to prevent the payment of
debts in depreciated paper, or any other than Ster
ling money ; that interest not being cxprcfsly men
tioned in the treaty, the allowance or not wag open
to difeuffiou, as it is laid down to be in the nature
of damages for the detention of a debt, and not as
part of the debt itfclf; that the law laid down in. lit
Bfown, 526, determined aifo in the heufe of lords
iu England, viz. where the product of funds ceafe*
during a great naticnal calamity, rh<i: interest,
although cxprcfsly stipulated for, Ihvuld cease,
ought aifo to apply in this case ; shat ih* decision cf
this cause might cftablifii a piecedeut for America,
and if fettled on principles recognized in Englano,
whole iawa the plaintiffs were fubjett to, no rea
tenable ground for complaint could remain. He
thsretore was of opinioa that tbe juiy, io cociider*.
ing all these circumftaoces, might allow such inter
est or not, as they ihould think just. The jury re
tired at sun-set, and at half after one agreed upon
their verdicts, which were seated up aud delivered
into court the next morning, in the following
words;
William Higgiufoo, survivor of Greenwood and
H.gginfoc, vtr/uf William Greenwood, survi
vor of Legcr aud Greenwood.
We nod for the plaintiff, Eighty-fcvcn thousand
nine hundred and'eighteen dollars, and fixty.fix
cents.
D. DESAUSSURE, Foreman.
William Greenwood, survivor of Greenwood and
Higgiufoo, versus William Greenwood, survi
vor of George Crofta and Co.
We find for the plaintiff, Fifty-three thousand
nine hundred and two dollars, and forty-eight
cents.
D. DESAUSSURE, Foreman.
The jury, at the time of delivering in the above
verdifts, informed the court, that they had disal
lowed htereft during the'war, on the debits and
credits, and allowed fimpie interest of five per cent,
since the peace.
Li/l of Dtjaulten itrCohml Alexander * Regiment*
Wilkes county.
Capt■ CambalPs Dijlnfi. William Deane,
John Forrifter William Sfcutley,
Thomas Luckett, John Traaf,
Be jamin Riley, Peter Edwards,
Barton Archerfon, Joseph Emberton,
Thomas Braifield* Henry Davies,
Pierre James Davies,
Chapel Heath, Samuel Storjf,
Thomas Hill, Elizabeth 6tory,
Joseph Williams* William Phare*;
Richard Butler, Henry WiUett,
Thomas Mace. William johnfton,
Capt. ‘ Turned** Diftritit* Louisa M'Clendon,
J bihum Panton, Thomas Peacock,
Thomas Johnston, Benjamin Chapman,
Darnel Williams, William Englilh,
Spsacer Thomas, William Avera,
>hu Hammock, Ruth Powell,
Daniel Clark, Elizabeth Starnes,
John Stephens, James E lrod,
J fepfa Forrester, Joseph Marsh,
jofeph Pollard, Caldwell Eaftes,
Jofiab Moncrief, Briantt M‘Cleodoq,
B zil M -cann, Capt. Neel's DifiriS.
J u * a Jackion, Elizabeth Davies,
Stephen Flint, Henry Caftleberry,
George Deane, Abraham Sanders,
B-cjamin Hubbert, Samuel Pietfon,
Abfolom Humphreys, Micajah jobnften, ,
Elijah Kelley, John English.
Gnffi. Morn., Capt. MMtO,. Djgrjct.
, C a pt. Smiths DiJlriEl . Alexander Thomson,
Benjamin Springer, Obediab Edwards,
P.erce Noland, Henry Candler,
Samuel Crofts, John M‘Murrin,
Andrew Burns, Zcphaniah Mott,
John Saxon, Henry Downs,
William ;iles, joihua Ayres,
John Dixon, Tabner Wells,
Cap. Thornton's Dijiria. Peter Williams,
Francis Panefon, Nathan Silvey,
George Tuggle, Jesse Lott,
Robert Tuggle, John Manning,
Joseph Jackson, William Buckles.
pf* c Capt. B unci ay’s Diftrit £
Ehftia Towns, J. Harris M‘Fariand,
Hiram Rowland, Benjamin Cowler,
William Greer, Eliiha Allen,
William Harris, George Hathorn,
Eiksnab Denoon, James Simmons,
Moses Herring, William Dukes,
Edward Denfon, Jacob Danfby,
Joseph Cook, Jacob Denfon,
John Watkins, john Sanford.
A rtl n. Capt. Hutbtrgj Dijlritl.
Capt. Matter's Dtftna. jofeph Martin,
William blatter, Vmfoa Johnston,
Copt. New/om's Dijlrict. William Nobles,
Thomas Goza, Robert Johnston,
Shadrach Potts, Abel James,
Abraham Hart, Richard Heath.
L. FRUITT, R. T. R. A. R.
November 16, 1793.
11 " ' ■«*
WILL BE SOLD,
ON the firft Tuefday in December next, a?
Browniborough, the land and plantation
whereon James Scruggs lately lived, bounded by
Capt. Blair, Sherwood Bugg and Prudence Story,
containing sixty acres; taken by Attachment as the
property of said Scruggs. Terms 'CASH.
THOMAS RICHARDSON. C