HARRIS v. BALK
United States Supreme Court 1905
198 U.S. 215
Facts: Case involves two debts. Harris (petitioner) owed Balk (respondent) $180. In addition to this Balk owed a third party named Epstein a sum exceeding $300. Both Harris and Balk are North Carolina citizens but Epstein is a Maryland citizen. While traveling in Maryland Harris was served notice that Epstein was attaching his debt to what Balk owed to Epstein. Harris did not contest this. Harris paid the $180 to Epstein. Balk sued Harris for $180 claiming the Maryland case did not apply to the debt he was owed in North Carolina.
Procedure: Trial court rules in favor of Balk. North Carolina Supreme Court affirms. Case now comes before the United States Supreme Court.
Issue: Does the location of a debt follow the debtor regardless of what jurisdiction they travel to?
Held: Yes
Analysis: Supreme Court rules that quasi in rem action could be brought upon Harris by Epstein while he was in the state of Maryland. Property, which is identified as money, in this case is “owned†by the debtor in whatever state he is in. Court cites Chicago R.I & P.I. Co. v. Sturm, 174 U.S. 710, 43 L. ed. 1144, 19 Sup. Ct. Rep. 79 and 2 Parsons, Contracts, 8th Ed. 702 9th Ed. 739.
Debt clings to the garnishee (debtor).
Court argues that the decisions made by the Maryland court must receive full faith and credit in North Carolina.
Court cites Cahoon v. Morgan, 38 Vt. 236 and National F. Ins. Co. v. Chambers, 53 N.J. Eq. 468, 483, 32 Atl. 663 as cases that allow a debt owed to a debtor who is in turn in debt to someone else to be consolidated by the person who is owed. In other words if A owes B, and B owes C, C can go after A to have his own debt paid for.
Court reverses the decision of the North Carolina Supreme Court and remands the case.
United States Supreme Court 1905
198 U.S. 215
Facts: Case involves two debts. Harris (petitioner) owed Balk (respondent) $180. In addition to this Balk owed a third party named Epstein a sum exceeding $300. Both Harris and Balk are North Carolina citizens but Epstein is a Maryland citizen. While traveling in Maryland Harris was served notice that Epstein was attaching his debt to what Balk owed to Epstein. Harris did not contest this. Harris paid the $180 to Epstein. Balk sued Harris for $180 claiming the Maryland case did not apply to the debt he was owed in North Carolina.
Procedure: Trial court rules in favor of Balk. North Carolina Supreme Court affirms. Case now comes before the United States Supreme Court.
Issue: Does the location of a debt follow the debtor regardless of what jurisdiction they travel to?
Held: Yes
Analysis: Supreme Court rules that quasi in rem action could be brought upon Harris by Epstein while he was in the state of Maryland. Property, which is identified as money, in this case is “owned†by the debtor in whatever state he is in. Court cites Chicago R.I & P.I. Co. v. Sturm, 174 U.S. 710, 43 L. ed. 1144, 19 Sup. Ct. Rep. 79 and 2 Parsons, Contracts, 8th Ed. 702 9th Ed. 739.
Debt clings to the garnishee (debtor).
Court argues that the decisions made by the Maryland court must receive full faith and credit in North Carolina.
Court cites Cahoon v. Morgan, 38 Vt. 236 and National F. Ins. Co. v. Chambers, 53 N.J. Eq. 468, 483, 32 Atl. 663 as cases that allow a debt owed to a debtor who is in turn in debt to someone else to be consolidated by the person who is owed. In other words if A owes B, and B owes C, C can go after A to have his own debt paid for.
Court reverses the decision of the North Carolina Supreme Court and remands the case.