Court Opinion

ID: 9418574
Source: CourtListenerOpinion
Date Created: 2023-08-02 22:32:29.629029+00
Date Added: 2024-06-11T17:22:06.224323
License: Public Domain

Mr. Justice Sutherland,
dissenting.
-It is. w,ellsettled, I. think, that,- where the cause of action" for a tort or breach of contract.to deliver goods /accrues in a foreign country and is sued on here, the time for fixing the value of foreign money in dollars is the date when the wrong was committed .or the breach occurred. This Court has recently applied the same rule to the case of a simple debt, payable in this -country, Hicks v. Guinness, 269 U. S. 71, and to the settlement of partnership accounts, where the partnership funds were partly here and partly abroad, Sutherland v. Mayer, 271 U. S. 272. The majority opinion rests upon the distinction that *521the debt upon which recovery here is sought was payable in Germany. The distinction, I think, is fallacious, and proceeds from a very narrow view of the principles applied in Hicks v. Guinness and Sutherland v. Mayer.
It is said that when the bank failed to pay on demand, its liability was fixed by German law at a certain number of German marks, and in marks only; that it continued to be a liability in marks only and was open to satisfaction by the payment of that number of marks at any time, however much the mark might have fallen in value as compared with other things; citing Société des Hôtels le Touquet Paris-Plage v. Cummings, [1922] 1 K. B. 451. And that, of course, is true if the payment be made in Germany, where marks remain legal tender at all times irrespective of their fluctuating value when measured by their purchasing power or by the money of other countries. And this is all that is held in Société des Hôtels, etc. v. Cummings, supra. See pp. 458, 461, 464. It, likewise, may be assumed that if suit had been brought in Germany, a judgment at any time for the number of marks called for by the obligation would have satisfied the requirements of German law, since there marks were not only the things to be delivered but the lawful money with which to satisfy a breach of an obligation to deliver them. But if suit be brought in a court of this country, where marks are not money but things only, the judgment must be in dollars and cannot be in marks any more than it could be in wheat if the broken contract related to that commodity.
The view that the judgment date should goverp puts undue emphasis upon the character of the thing to be delivered and ignores completely the all-important element of the time when the delivery should have been made. - In respect of that element, I see no good reason for making a distinction between marks and wheat. In either case, if suit be brought in Germany, the injured *522party is entitled to recover the amount of his loss in marks and in marks only. In the one case, the subject matter (wheat) must be translated into money; but not so in the other, for the subject matter is money already. In the case of wheat, therefore, the date of the breach must be considered because, presumably in Germany as here, it is the value of the wheat in marks at that time which fixes the amount of recovery. In the case of marks, however, the elemeñt of time is of no consequence since, in Germany, the value of a mark can be measured only by itself.
But in an action brought here to recover upon a failure to deliver marks in Germany, the question of time becomes material; for here' a mark is not money, but a commodity; and if plaintiff is to be compensated in dollars for his loss, we must inquire, When did the loss occur? just as we must make that inquiry in order to fix in dollars.the value of wheat in a suit to recover for the non-delivery of that commodity. To me it seems clear that, in the one case as in the other, the basis of recovery must be the value in dollars of the thing lost at the time of the loss. In this respect, a simple debt payable in marks and an obligation to deliver goods in Germany stand upon the same footing. In either case, the injured party is entitled to have in the money of this country the value of . what he would have obtained if the contract had been performed at the stipulated time. Lord Eldon, in Cash v. Kennion, 11 Ves. 314, 316, expressed the applicable principle when he said': “ I- cannot bring myself to doubt, that, where a man agrees to pay £100 in London upon the 1st of January, he ought to have that sum there upon that day. If he fails in that contract, wherever the creditor sues him, the law of that country ought to give him just as much as he would have had, if the contract had been performed.”
The date for conversion adopted by this Court after the Civil War in respect . of obligations payable in *523Confederate currency was the date, and not the maturity, of the obligation, upon the ground that such currency never had been lawful; but in a dictum by Mr. Justice Field in. Effinger v. Kenney, 115 U. S. 566, 575, it is clearly recognized that, if the foreign currency involved be lawful, the date for conversion is that of the maturity of the contract. In that case, “The damages recoverable for a breach of the contract are to be measured by the value of the currency at its maturity.”
To take the date of judgment for determining the value is to adopt for the measurement of a loss a test resting upon the fluctuating chances of a court calendar instead of upon an event already fixed, — that is, to put aside certainty for uncertainty. The date of the breach, whether of a contract to deliver goods or to pay money, marks the essential event which gives rise to the cause of action and bears a necessary relation to the' wrong sought to be redressed; while the date of the rendition of judgment bears no relation whatever to the wrong complained of and has nothing to do with the cause of action. The cases are not agreed; but an examination of them convinces me that the conclusion I have indicated by the foregoing is supported by the great weight of authority. See for example, Page v. Levenson, 281 Fed. 555, 558; Dante v. Miniggio, 298 Fed. 845; Wichita Mill & E. Co. v. Naamlooze, etc., Industrie, 3 F. (2d) 931; Hoppe v. Russo-Asiatic Bank, 235 N. Y. 37, 39, affirming 200 App. Div. 460, 465; Simonoff v. Granite City Nat. Bank, 279 Ill. 248, 254; Grunwald v. Freese, (Cal.) 34 Pac. 73, 76; Manners v. Pearson & Son, [1898] 1 Ch. 581, 587-588, 592-593; Société des Hôtels v. Cummings, [1921] 3 K. B. 459, 461 (reversed on another point, [1922] 1 K. B. 451, 455, 463, 465), Uliendahl v. Pankhurst Wright & Co., 39 Times L. R. 628; Peyrae v. Wilkinson, [1924] 2 K. B. 166; Barry v. Van den Hurk, [1920] 2 K. B. 709, 712; In *524re British American Continental Bank, [1922] 2 Ch. 589, 594-598.
The case last cited was a winding-up proceeding, and the question arose over the conversion into English money of the amount of a debt payable in Belgium in Belgian currency. The court adopted as the date for conversion into English money the date when the debt was payable in Belgium, saying (p. 595): “ . . . this mode of computation and thus converting the one currency into the other is based upon damages for the breach of contract to deliver the commodity bargained for (i. e., the foreign currency) at the appointed time and place; consequently the date for conversion is the date of breach and not the date of the judgment.” After reviewing the prior cases, including both decisions in Société des Hôtels v. Cummings, supra, the court concluded that “ the principle in no way depends either upon the nationality of the creditor or upon the fact that the place of payment is in the creditor’s own country as distinguished from some other country, but applies, if at all, to every case where an action is brought in England for the recovery of a debt payable in some other currency than English money.”
The same principle is announced in Lebeaupin v. Crispin, [1920] 2 K. B. 714, 723, in an action for breach of contract to deliver salmon. The court said: “If the damages are fixed at the date of breach where the contract is wholly to be performed in England, such also, I think, should be the result Where the breach is out of England. There should not be varying rules in such a case. If the damages are once crystallized at the date of breach, then a definite date is given for the ascertainment of exchange, and the amount found payable at the hearing is awarded without regard to the fluctuations of the possible date of trial.” '
*525I think it is extremely desirable that the rule established should be one capable of uniform application. To take the date of the judgment is to establish a rule which does not meet this requirement. The amount of the recovery will depend upon whether suit is promptly brought or promptly prosecuted; whether the defendant interposes dilatory measures; whether the call of the docket is largely in arrears or is up-to-date; and, perhaps, upon whether there is a successful appeal and a new trial with the consequent annulment of the old judgment and the rendition of a new one. Under these circumstances it may well happen that, in one case, where judgment is not delayed, the plaintiff will recover a substantial sum, while in a precisely similar case, where judgment is delayed until the foreign currency has greatly depreciated, the sum recovered by comparison may be altogether insignificant. See Page v. Levenson, supra, pp. 558-559; Lebeaupin v. Crispin, supra, p. 722-723.
I am of opinion, therefore, that the judgment below should be affirmed.
Mr. Justice McReynolds, Mr. Justice Butler and Mr. Justice Sanford concur in this opinion.