ENGLISH AND AMERICAN LAW
[To the Editor of the SPECTATOR.] SIR,—At page 365 of the Spectator for February 27th, 1926, Under the title "Letters to the Editor—English and American Law," appears the following :— "Your issue of February 13th contains an extract from a letter' in which a Manchester exporter asserts that certain contracts he had with members of the United States were cancelled, and that on going to his lawyer he at once told him 'You can do nothing against a U.S.- subject., Their law enables them to cancel when they like.'" The writer of the letter (Lord Buckniaster) from which I have quoted goes on to say : "I know of no country governed by such a law. . . . In every country contracts to buy or sell goods can be repudiated, but the repudiation instantly gives the injured party the right to an action for damages." This, of course, is the law of the United States and of the individual States, including the State of New York.
What the difficulty was which induced the legal advice referred to is not made clear. Of course there is such a thing as an illegal contract which could not be enforced at law or in equity, and there are goods which it would be illegal to buy or sell. But a bona fide contract, .to buy or sell goods, made between a British subject and a United States citizen can be enforced and the injured party has his remedy in the Federal or State courts of the United States.
The Constitution of the United States (Art. 3, Sec. 2) provides that "The judicial power shall extend to all cases' in law and equity . . . between a State or -the citizens thereof and foreign States, citizens or subjects." This jurisdiction is, however, limited in the Federal courts by Section 24 of the Judicial Code, which provides ,
" The District Courts (United States) shall have original juris- diction as follows :—
" First. Of all suits of a civil nature, at common law or in equity, brought by the United' States, or by any officer thereof authorized by law to sue, or between citizens of the same State
claiming lands Under grants- fromdifferent 'States; or, where the Matter in cerarobergy• exceeds, exclusive of interest and costs, "the -sic* or value of three thousand dollars, _and (a) arises under the Con., stitution or laws of the United States, or treaties made, or which Shall be made, Under their authority, or (b) is between citizens of diffeinnt States, or (c) is between citizens of a State and foreign
States, citizens, or' subjeckt. . _ .
• "-No District- Court shall- have cognizance of any suit (except . upon foreign bills of exchange) to recover Upon any promissory note -of Other Chase in actloh 10 favour of any assignee, or of any subsequent holder if 'such instrumentbe payable to bearer and be not-made- by any corporation; imless such suit might have been prosecuted in.such &art to- recover upon said note or other chose in action if no assignment had been made : Provided, however, that- the. foregoing provision as- to the stun or \alit) of the matter in controversy shall not be construed to apply o ani- of the Oases mentioned in the succeeding paragraphs of this section."
The "succeeding paragraphs" mentioned in the proviso last above are twenty-five in number, but do not in any way affect the matter under consideration.
The New York State law is quite explicit—Section 64 of the Civil Practice Act (State of New York), based on Article 6, Section 1, of the New York State -Constitution, provides as follows :— -
'See. 64.—The general jurisdiction in law and equity which the Supreme Court of the State possesses under the provisions of the Constitution includes all the jurisdiction which was possessed and exercised by the Supreme Court of the Colony of New York at any time, and by the Court of Chancery in England on the fourth day of July, 1770; with the exceptions, additions and limitations created and imposed by the Constitution and laws of the State. Subject to those exceptions and limitations the Supreme Court of the State has all the powers and authority of each of those courts and exercises the -same in Me Manner."
_ It would seem unnecessary to pursue the subject farther. The books are full of cases between aliens and citizens and it would be a work of supererogation to cite any.—I am, - Sir, &c., DONALD BAIN. 619 Bramson Building, Buffalo, N.Y.
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