Case Name: STANLEY v. SCHWALBY
Court: Supreme Court of the United States
Jurisdiction: United States
Decision Date: 1893-02-06
Citations: 147 U.S. 508
Docket Number: No. 1092
Parties: STANLEY v. SCHWALBY.
Judges: 
Reporter: United States Reports
Volume: 147
Pages: 508–524

Head Matter:
STANLEY v. SCHWALBY.
ERROR TO THE SUPREME COURT OF THE STATE OF TEXAS.
No. 1092.
Submitted January 6,1893.
Decided February 6,1893.
For purposes of jurisdiction there is no distinction between suits against the government directly, and suits against its property.
Where property of the United States is involved in a litigation to which they are not technically parties under authority of an act of Congress, the attorney for the United States may intervene by way of suggestion, and in such case the court will either stay the suit or adjust its judgment according to the rights disclosed on the part of the government.
United States v. Lee, 106 U. S. 196, distinguished from this case.
When the United States become a party defendant to an action brought by a, citizen the bar of the statute of limitations is a valid defence, if set up and maintained.
The defence of adverse possession may be set up by the United' States in an action to try title to real estate, and, if supported by the proof, is a valid defence.
When an officer of the United • States, in possession under their authority of real estate claimed by them, is sued in a state court in trespass to try title to the real estate, and sets up that claim and that authority as a defence in the action, an adverse judgment in the highest court of the State draws in question the validity of an authority exercised under the United States, and gives this court jurisdiction to review that decision ■ on writ of error.
This was an action of trespass to try title, brought Eebruary.28, 1889, in the District Court of Bexar County, Texas, against David S. Stanley and three other defendants, by Mary U. Schwalby, whose husband, J. A. Schwalby, was afterwards made a party plaintiff, to recover a certain parcel or lot of ■ land in;the city of San Antonio. Mrs. Schwalby claimed title to one-third of the lot, as one of the three heirs of her father, Duncan B. McMillan, deceased; and subsequently one Joseph Spence, Jr., intervened and asserted title to one-third of the lot through a conveyance made to him by Duncan W. McMillan, another of said heirs. Judgment of possession of the whole lot was prayed, upon an averment that defendants entered without right or title.
The land in question was part • of a military reservation of the United States, and was used and occupied as a military post, and David S. Stanley and his codefendants were officers of the army of the United States, holding and occupying the land under authority of the United States. They pleaded not guilty, and specially that they held lawful possession of the property as officers and agents of the United States, which had had title and right of possession, under conveyance duly recorded, since the year 1875, as innocent purchasers for value without notice; and also the three-year, the five-year, and the ten-year statutes of limitation of Texas, and a claim for allowance for permanent and valuable improvements.
The United States District Attorney appeared for the United States, acting, as he alleged, “by and through instructions from the Attorney General of the United States,” and joined on behalf of the United States in.the pleas of the other defendants.
The District Court being of opinion that the United States could not set up the statute of limitations, whether for three, five, or ten years, or otherwise, the pleas of the United States to that effect were ordered to be stricken out.
On the trial evidence was adduced on both sides bearing upon the title and the purchase of the property by the.United States and the value of the improvements. It appeared that one Dignowity was the common source of title, and had- executed a .statutory warranty deed of the lot in controversy to Duncan B. McMillan, dated and acknowledged May 9, 1860, but not recorded until September 30, 1889; that McMillan, then a widower, died February 5, 1865, leaving three children him surviving, of whom plaintiff, Mary IT., was born September 11, 1848, and married J. II. Schwalby, January 18, 1871; afid Duncan W.,'was feorn November 2, 1850, and conveyed to Joseph Spence, Jr., the intervenor, March 26, 1889, by deed acknowledged that day and filed for record March 29, 1889.
-- • Dignowity died, in April, 1875, testate, and by the terms of bds will, which was duly probated that month, his property passed to his widow, who, on May 1, 1875, in her own right, and as independent executrix of her husband’s will, released and quitclaimed to the city of San Antonio all her.right, title and interest in the lot in question, “ known as the McMillan lot,”with covenant of warranty against any person claiming by, under or through Dignowity or his estate. The city of San Antonio conveyed this and three other lots by warranty deed, dated June 16, 1875, and recorded October 21, 1875, to the United States for military purposes.
General Stanley testified that he was a brigadier general of the United States army, that his codefendants were officers of the same, and that they took and held possession as such officers.
It was contended that the evidence tended to show that the city and the United States took with notice of a previous sale to McMillan; that McMillan had never paid the purchase price in full; that the unrecorded deed was never delivered to McMillan, but held in escrow; and that Dignowity paid the taxes on the lot from 1860 to 1875.
The District Court gave judgment in favor of the plaintiffs Schwalby and Spence, that each had title to one-third of the lot and for the possession of the whole, and • also in favor of the United States for $1521 for the improvements, that being the difference between the value thereof and the amount found due from the United States for the use and occupation of the premises. Both parties excepted to the judgment and perfected an appeal therefrom. The Supreme Court of Texas reversed the judgment, and rendered judgment dismissing the action as to the United States; that plaintiffs recover from the defendants, Stanley and- others, possession of the lot in question, and the sum of two hundred dollars, being the value of the use and occupation of said land, together with costs; to review which judgment this writ of error was sued out. The opinion is reported, in advance of' the official series, in 19. S. W. Rep. 261.
Mr. Assistant Attorney General Mawry for plaintiffs in error.
Mr. A. H. Garland for defendants in error.
Supposing the United States properly in the case, for the present, it could plead no limitation under the Texas law as especially no tribunal was open for these parties to get relief as against it, and, therefore, it was quite right that its pleas of limitation were struck out. United States v. Insley, 130 U. S. 263; United States v. Nashville, Chattanooga &c. Railway, 118 U. S. 120; United States v. Thompson, 98 U. S. 486 ; Dow v. Johnson, 100 U. S. 158; Lindsey v. Miller, 6 Pet. 666.
This ^immunity from suit, enjoyed by the United States, does not protect its officers who commit trespass, and withhold illegally the possession of lands from rightful owners. United States v. Lee, 106 U. S. 196.
Although the Lee Case was hotly and stubbornly contested on every inch of the ground, and was decided at last by a bare majority, yet it has received since, then the' succor of several indorsements, if any were requisite. Cunningham v. Macon & Brunswick Railroad, 109 U. S. 446, 452; Hans v. Louisiana, 134 U. S. 1; In re Ayers, 123 U. S. 443, 501; Pennoyer v. McConnaughy, 140 U. S. 1.
And, following as a necessary consequence, the’ state Supreme .Court properly held that the United States could not be made a party in this suit in the absence of an act of Congress authorizing it — not even if the district attorney had instructions to make it a party which instructions do not appear in the record. Carr v. United States, 98 U. S. 433. See also •cases above cited. The latter case was not interfered with as to this point in the Lee Case.
It is probable the instructions were to defend for these parties, who claimed to hold the land as t United States officers in its name, and .not to make the United' States a party;, but as held by the court, such instructions to make it a party, if given, would have been of no force. ' Therefore, the dismissal of the United States from the case was certainly correct. ”

Opinion:
Mr. Chief Justice Fuller
delivered the opinion of the court.
In The Siren, 7 Wall. 152, 154, Mr. Justice Field, who spoke for the court,' in adverting to the familiar rule, of the common law that the sovereign cannot be sued in his own courts without his consent, and the ground upon which the rule rested, said: " This doctrine of the common law is equally applicable to the supreme authority of the nation, the United States. They cannot be subjected to legal proceedings at law or in equity without their consent; and whoever institutes such proceedings must bring his case within the authority of some act of Congress. Such is the language of this court in United States v. Clarke, 8 Pet. 436, 444. The same exemption from judicial process extends to the property of the United States, and for the same reasons. As justly observed by the learned judge who tried this case, there is no distinction between suits against the government directly, and suits against its property."
If then this suit had been directly against the United States or the property of the United* Státes, it could not have been maintained, and it is only upon the proposition that it was brought, not against the United States, but against the officers of the United'States as individuals, although holding possession of the property under their authority and as belonging to them, that it proceeded to judgment. The District Attorney of the United States acting, as he alleged, " by and through instructions from the Attorney .General of the United States," filed certain pleas on behalf of the United States, among others, of limitation, and for allowance for valuable improvements. No question seems, to have arisen in the state District Court as to the authority of the district attorney to do this. The court ruled that the United States could not plead the statutes of limitation, and therefore struck those pleas out, but sustained the plea claiming an allowance for improvements, and rendered judgment in favor of the United States for-the value thereof. The Supreme Court of Texas held that as the instructions of the Attorney General were not found in the record and no act of Congress empowering him to make the United States a party, either plaintiff or defendant, to an action in a state court was referred to, the United States could not'be. regarded as a party and therefore reversed the judgment below and rendered judgment dismissing the United States from the case. The error assigned to this action of the Supreme Court has not been pressed by counsel for the government and we are not called upon to express any opinion upon it. We should remark, however, that from a very early period it has been held that even where the United States is not made, technically a party under the authority of an act of Congress, yet where the property of the government is concerned it is proper for the attorney for the United States to intervene by way of suggestion, and in such case if the suit be not stayed altogether, the court will adjust its judgment according to the rights disclosed on the part of .the government thus intervening. Such wTas the leading case' of The Exchange, Y Cranch, 116, 14Y, where the public armed vessel of a foreign sovereign having been libelled in a court of admiralty by citizens of the United States to whom she had belonged and from whom she had been forcibly taken in a foreign port, by his order, the District Attorney filed a suggestion stating the facts, and the Circuit Court having entered a decree for the libellants, disregarding the suggestion, this court, upon an appeal- taken by the attorney of the United States, reversed the decree and dismissed the libel, and Mr. Chief Justice Marshall, in deliveringi the opinion of- the court, said : " There seems to be a necessity for admitting that the fact might be disclosed to the court by the suggestion.of the attorney for the United States."
Probably the instructions here were that the District Attorney should make defence for General Stanley and his fellow officers, and in addition he thought it wise to bring the rights of the-Únited States to the attention of the court by application-in their name.
The argument for the plaintiffs in error is confined to the disposition of the pleas setting up the statutes of limitation, in respect of which the decision did not turn upon the question whether on the facts the bar was or wasmot complete, but upon the view that, although, as between'individuals a perfect defence might have been made out, it- could not be availed of by or under the United States.
By the Texas statute relied on it was provided that every suit to recover real estate ", as against any person in peaceable and adverse possession thereof under title or color of title, shall be instituted within three years next after the cause of action shall have accrued, and not afterwards." Title was defined to mean a regular, chain of transfer from or under the sovereignty .of the soil; and color of title to mean a consecutive chain of such transfer down to the person in possession, without being regular, as if one or more of the muniments were not registered or not duly registered. "Peaceable possession" was described as "such as is continuous, and not interrupted by adverse suit to recover the estate," and " adverse possession " was defined as "an actual and visible appropriation of the land, commenced and continued under a claim of right inconsistent with and hostile to the claim of another." The statute also provided that five years' peaceable and adverse possession of real estate, "cultivating, using or enjoying the same and paying taxes thereon, if any, and claiming under a deed or deeds duly registered," should be a bar; and that ten years' like peaceable and adverse possession, with cultivation, use or enjoyment, should have a like result; and also that whenever in any case the action of a person for the recovery of real estate Avas barred, the person having such peaceable and adverse possession should " be held to have full title, precluding all claims." 2 Sayles' Tex. Civ. Stats. 109, Tit.- 62, c. 1.
The Supreme Court of Texas Avas of opinion that the bar of the statute could not be interposed by or under the United States, because the United States are not bound by such- statutes, as well as because no action could be brought against the United States.
The rule that the United States are not bound and the reason for it are thus given in United States v. Nashville, Chattanooga &c. Railway, 118 U. S. 120, 125: " lit is settled beyond doubt or controversy — upon the foundation of the great principle of public policy, applicable to all governments alike,' which forbids that the public interests should be prejudiced by the negligence of the officers or agents to Avhose care they are confided—that the United States, asserting rights vested in them as a sovereign government, are not bound by any statute of limitations, unless Congress has clearly manifested its intention that they should be so bound." And this doctrine was declared by the court in United States v. Insley, 130 U. S. 263, 266, to be " applicable with equal force, not only to the question of the statute of limitations in a suit at law, but also to the question of lachés in a suit in equity."
To the same effect, Mr. Justice Story, in United States v. Hoar, 2 Mason, 311, 313, 314, said: "The true reason, indeed, why the law has determined that there can be no negligence or laches imputed to the crown, and, therefore, no delay should bar its right, (though sometimes asserted to be, because the king is always busied for the public good, and, therefore, has not leisure to assert his right within the times limited to subjects, 1 Bl. Com. 247,) is to be found in the great public policy of preserving the public rights, revenues and property from injury and loss, by the negligence of public officers. And though this is sometimes called a prerogative right, it is in fact nothing more than, a reservation or exception, introduced for the public benefit, and equally applicable to all governments. . . . But, independently of any doctrine founded on the notion of prerogative, the same construction of statutes of this sort ought to prevail, founded upon the legislative intention. Where the government is not expressly or by necessary implication included, it ought to.be clear from the nature of the mischiefs to be redressed, or the language used, that the government itself was in contemplation of the legislature, before a court of law would be authorized to put such an interpretation upon any statute. In general, acts of the legislature are meant to regulate and direct the acts and rights of citizens;, and in most cases, the reasoning applicable to them applies with very different, and often contrary force to the government itself."
But, as observed by Mr. • Justice Strong, delivering the opinion of the court in Dollar Savings Bank v. United States, 19 Wall. 227, 239, while the king is not bound by any act of Parliament unless he be named therein by special and particular words, he may take the benefit of any particular act though not named.. And, he adds, that the rule thus settled as to the British crown is equally applicable to this government; and that so much of the royal prerogative as belonged to the king in his capacity of parens patrio» or universal trustee, enters as much into our political state as it does into the principles of the British constitution.
The general rule is stated in Chitty on the Law of the Prerogatives of the Crown, 382, clearly to be' " that though the king may avail himself of the provisions of any acts of Parliament, he is not bound by such as do not particularly and expressly mention him." "For it is agreed in all our books that the King shall take benefit of any act, although he be not named." Calvin's Case, 7 Rep. 32a; Magdalen College Case, 11 Rep. 67, 68 ; The Queen & Buckberd's Case, 1 Leonard, 150; 1 Bl. Com. 262.
We think there is nothing to the contrary in Rustomjee v. The Queen, 1 Q. B. D. 487, where, by. a tlreaty between the Queen of England .and the Emperor of China, the Emperor had paid to the British government a sum of money on account of debts due to British subjects from certain Chinese merchants, who had become insolvent, and it was held that a petition of right would not lie by one of the British merchants to obtain payment of a sum of money alleged to be due to him from one of the Chinese merchants, and that the statute of limitations did not apply to a petition of right. The political trust with which Her Majesty was charged in respect of her own subjects afforded no basis for the prosecution in a court of a claim as against a debtor or trustee, and, of course, limitation had no application. Indeed, the form of proceeding .by petition of right, even as simplified and regulated by 23 and 24 Yict. c. 34, is so far variant from proceedings between subject' and subject, as to give adjudications thereunder but slight, if any, bearing upon the question under discussion. Tobin v. The Queen, 14 C. B. (N. S.) 505.
It was in view of the ancient rule and its derivation that the Supreme Court of Wisconsin in Baxter v. State, 10 Wisconsin, 454, held that while the statute cannot be set up a,s a defence to an action by the government, this rule being founded upon the public good and the protection and preservation of the public interest, instead of furnishing any support for the position that as a defendant the State could not have the benefit of the statute, would fully sustain the opposite conclusion.
And so, in People v. Gilbert, 18 Johns. 227, it was pointed out by way of illustration that the same rule of construction applied to the statute concerning costs, which the State may recover, though not obliged to pay them because not included in the general terms of the statute.
' It is obvious that the ground of the exemption of governments from statutory bars or the consequences of laches has no existence in the instance, of individuals, and we think the proposition cannot be maintained that because a government is. not bound by statutes of limitation therefore the citizen cannot be bound as between himself and the government.
Of course, the United States were not bound by the laws of the State, yet the word " person " in the statute would include them as a body politic and corporate. Sayles, Art. 3140; Martin v. State, 24 Texas, 61, 68.
This brings us to consider the objection that the United States cannot obtain or be protected in title through adverse-possession, unless an action would lie against them for the recovery of the property. It by no means follows that because an action could not be brought in a court of justice, therefore possession might not be regarded as adverse so as to ripen into title. In the case of a government, protest against the occupancy and application for redress in the proper quarter would seem to be quite as potential in destroying the presumption of the right to possession, or of the abandonment of his claim by another, when an action cannot be brought, as the action itself when it can.
In Comegys v. Vasse, 1 Pet. 193, 216, quoted from and applied by Mr. Justice Lamar in Williams v. Heard, 140 U. S. 529, 543, it was remarked by Mr. Justice Story: "It is not universally, though it may ordinarily be one test of right, that it may be enforced in a court of justice. Claims and debts due. from a sovereign are not ordinarily capable of being so enforced. Neither the King of Great Britain, nor the govern ment of the United States, is suable in the ordinary courts of justice for debts--due by either. Yet, who will doubt, that such debts, are rights?" However, the very institution of this suit shows, as the fact is, that these claimants could have brought such an action as this at any time between the date when the United States took possession and the filing 'pf this petition.
As stated by Mr. Justice Miller, in Cunningham v. Macon & Brunswick Railroad, U. S. 446, 451, it may be accepted as unquestioned that neither the United States nor a State can be sued as defendant in any court in this country without their consent, except in the limited class of cases in which a State may be made a party in this court by virtue of the original jurisdiction conferred by the Constitution. Accordingly, whenever it can be clearly seen that a State is an indispensable party to enable a court, according to the rules which govern its procedure, to grant the relief sought, it will refuse to take jurisdiction. But in the desire to do that justice, which in many case's the courts can see will be defeated by- an extreme extension of this principle, they have in some instances gone a long way in holding the State not to be a necessary party, though its interests may be more or less affected by. the decision. Among.these cases are those where an individual is' sued in tort for some act injurious to another in regard to person or property, in which his defence is that he has acted under the orders of the government'.
In these cases he is not sued as an officer of the government, but as an individual, and the court is not ousted of jurisdiction because he asserts the authority of such officer. To make out that defence he must show that his authority was sufficient in law to protect him. In this class is included United States v. Lee, 106 U. S. 196, where the action of ejectment was held .to be in its essential character an action of trespass, with the power in the court to restore the possession to the plaintiff as part.of the judgment, and the defendants Strong and Kaufman, being sued individually as trespassers, set up their authority as officers of the United States, which this court held to be unlawful, and therefore insufficiént as a defence. .
In such a case the validity of an authority exercised under the' United States is drawn in question, and where the final judgment or decree in the highest court of a State in which a decision could be had is against its validity, jurisdiction exists in this court to review that decision on writ of error.
The case before us is an action of trespass. to- try title, brought against officers of the United States, exercising an authority under the United States, in holding possession of the property in controversy. Laying, out of view the intervention by the District Attorney of the United States in the direction of making the United States a party, and considering the case in its relation to the defences interposed by General Stanley and his fellow officers, we are unable to perceive why the statutory bar, if complete, could not bé availed of. Although not bound by statutes of limitation, the United States as Ave have seen Avere entitled to take the benefit of them, and inasmuch as an action could have been brought at any time after adverse possession was taken, against the- agents of the government through Avhom that was done and by Avhom it was retained, the objection cannot be raised against them that the statute could not run because of inability to sue. The alleged trespass was committed by the defendants, as the servants of the United States -and by their command, yet if they showed the requisite possession in themselves as individuals, though, in fact for the United States, under whose authority they were acting, the defence rvas made out. Agents when treated as principals may rely upon the protection of the statute. Ware v. Galveston City Company, 111 U. S. 170.
In any view, they Avere not mere trespassers, and if subject to suit during the statutory period of peaceable and adverse possession, they could not, after its expiration, be found guilty of an unlawful withholding from the original owner. The tort which must be the gist of the action in order to render it maintainable against the officers of the United States as individuals, could not be predicated of them under such circumstances.
We refrain from any consideration-of thé case upon its merits, but, for the reasons indicated, .reverse the judgment, and remand the cause for further proceedings not inconsistent-with this opinion.
Judgment reversed.'