MARSHALL KFP 85 .B76 1914 KfP dome U iOatu l^rljmil ICthrary iUataljaU lErptttg CCollcrtion (gift of IE. 31. MaratjaU. £-^- $• 1B94 CORNELL UNIVERSITY LIBRARY 924 084 250 210 Cornell University Library The original of this book is in the Cornell University Library. There are no known copyright restrictions in the United States on the use of the text. http://www.archive.org/details/cu31924084250210 Equity in Pennsylvania FROM THE Historical Point of View JAMES I. BROWNSON PUBLISHED BY THE WASHINGTON BAR ASSOCIATION WASHINGTON, PENNSYLVANIA L317SL The following paper was prepared, not for publica- tion, but to be read at a meeting of the Bar Association of Washington County, Pennsylvania. It was so read on January 10, 1914. The association requested the author to permit the paper to be printed, and he then presented to it the manuscript, together with the right of publica- tion. Equity in Pennsylvania From the Historical Point of View The English word Equity is used in four principal senses. The first of these, which is pointed to by its etymo- logical derivation, is that of equal and impartial, exact and complete justice, the antithesis of what we designate by the term "iniquity." It is in this general sense that it is employed in our translations of the Bible. When the Psalmist, speaking of the divine government, exclaims: "With righteousness shall he judge the world, and the people with equity," what he means is, that God will judge fairly and justly, without respect of persons, and giving in «ach case the judgment which exactly fits the circum- stances. Upon this meaning of the term are based, and •out of it have grown, the other meanings. The second sense in which this word is employed is that which is indicated in the celebrated definition of Grotius, which probably first became familiar to most of us when we read il (in translation) in Blackstone's Com- mentaries. Grotius describes equity as "correctrix ejus in quo lex, propter unwerxaliiatem, deficit" — the cor- rector of that wherein the law, by reason of it univer- sality, is defective. This statement, however, did not originate with Grotius; it is said to be practically a trans- lation into Latin from the Greek of a remark of Aristotle. The law, necessarily, must lay down general rules, -and in so doing it is impossible that it shall be expressed 6 in such a way as lo provide explicitly lor all possible com- binations of circumstances. Exceptional cases will from time to time arise, either not foreseen when the law was formulated, or else of such complexity that it is imprac- ticable in such formulation to provide expressly for all of them. Hence it will often happen that to apply the legal rule to a case that is within its words would work iniquity, producing results that manifestly were not intended. The purpose and aim of the h>w arc presumed to have been to work justice, and when it is found that, literally inter- preted and carried out, it will work grievous injustice, it is the part of equity, in the sense we are now speaking of, to determine whether it was the intention of the law- maker that such a case should be treated as within the scope and purview of the law. Here we mean by equity, as Blackstone remarks, (Book HI, 431,) nothing but the sound interpretation of the law; and he adds: "But there is not a single rule of interpreting laws, whether equitably or strictly, that is not equally used by the judges in the courts both of law and equity: the construction must in both be the same; or, if they differ, it is only as one court of law may also happen to differ from another. Each endeavors to fix and adopt the true sense of the law in question; neither can enlarge, diminish or alter that sense in a single tittle." When a court, construing a statute in the light of such considerations of justice as have been alluded to, declares the case before it, although within the words of the law, to be an exception to its uni- versality, it is not dispensing with or setting the statute aside — a thing which it has no authority to do. It reaches its judgment, in the words of Grotius which immediately follow the definition above quoted, 1 "non tollendo legis obligationem, sed declarando legem in certo casu non 1 De Aequilate, sec. 12. obligare" — not by destroying the obligation of the law, but by declaring that the law does not bind in the particular case. That is to say, it is determining that such a case was not intended by the legislature to be covered by the general language of the act; or, in other words, it is mere- ly declaring what is the true intent and meaning of the enactment. Moreover, it is doing no more than the courts of all civilized countries have been accustomed to do. Equity in this sense is not peculiar to English-speaking countries. It is a part of general jurisprudence. But in England there grew up, by reason of circum- stances peculiar to that country, a special system or code of rules, administered by a separate court, 2 and co-exist- ing with a different set of rules on the same subjects, ad- ministered by other courts. This system is what is des- ignated by the third sense of the term equity. And it created certain rights, not recognized at law, but consti- tuting the specific grounds upon which applications for equitable relief are based. These rights are known as equitable rights or "equities," and the fourth sense in which the word is used is that which it bears when em- ployed to designate such a concrete equitable right. It is with equity in this third sense, as a separate sys- tem of jurisprudence, and incidentally with these equit- able rights, that we are particularly concerned in this 2 The English court of chancery was the original equity court, but did not continue to be the only one within the realm. Such courts were set up in the counties palatine, and in the two universities: Bouvier, Law Diet., Court of Chancery. The court of requests was an inferior court of equity, which was virtually abolished by a decision, rendered in the reign of Elizabeth, that it had no contentious jurisdiction, and was formally abolished by stat. 16 Car. I, c. 10: Campbell's "Lord Chancellors," Chap. XLVIII. The court of exchequer exercised to some extent jurisdiction in equity, principally in cases of tithes, in addition to its jurisdiction as a court of law, having a law side and an equity side: Bisph. Princ. Eq., note to sec. 4. The lord mayor's court of the city of London had equity jurisdiction: Bouvier, Law Diet., ubi supra. 8 paper. BuL I have stated and distinguished all of these significations of the term, because, when used in its third sense, it may be said to include all the others. The con- crete equitable rights that are connoted by it as employed in the fourth sense mentioned, are obviously included in the third sense, as being the creations of the body of doc- trines which constitute equity jurisprudence. The idea of equal and exact justice is included in it, for the dis- pensation of such justice is its aim and end — its very raison d'etre. The making of exceptions to the univer- sality of the law is included in its work, as essential to the attainment of the kind of justice at which it aims. But its work does not stop here; it goes very much further. Not only does it recognize unexpressed exceptions to some of the rules of law, but in the case of certain of these rules it absolutely contradicts and reverses them. For ex- ample, as I shall have occasion to mention later, the rule of the common law was that a chose in action is not as- signable; but equity declares that a chose in action is as- signable. The third signification of equity, then, while it includes each and all of the other three senses, is very much more than the sum of those meanings put together, for it embraces ideas not specifically covered by any of the others, and in its totality it signifies a highly devel- oped system of jurisprudence, made up of certain fixed and settled doctrines enforced by certain remediaL methods of its own (or, in later times, by adaptations of other methods), in contradistinction to that other vener- able system, the common law. Practically, equity in the second sense, and equity in the third sense, are so intermingled in the actual adminis- tration, that they are not usually distinguished from each other. But when we are investigating the origin and sources of the separate equity system, it is as well to dis- tinguish between them for the sake of clearness. To a man who, previously knowing nothing about the subject, would hear or read a description of these con- trasted systems of law and equity, as developed in Eng- land, the whole thing would seem deliciously absurd. "The entire object of both law and equity," he might say, "is to produce and enforce justice; why then have two codes, differing from each other in their rules for the de- termination of what is justice, and administered by sep- arate courts, so that the question of what the rights and obligations of the parties arising out of a particular trans- action shall be declared to be, depends upon which court is hearing the case?" To the modern mind it does ap- pear absurd, (although many wise and great men in the past have argued that this separation of law and equity is highly beneficial,) and we have, at least largely, cor- rected its absurdities. Even in England law and equity have been amalgamated, and the court of chancery has become a division of the high court of justice. It is hardly conceivable that if the founders of a state were creating an entirely new frame of government, they would delib- erately plan such a separation as developed in England. The explanation of it in that country is entirely a his- torical one. English law, in the form which it finally took, may be said to be of native growth. England did not, like the continental nations, adopt the Roman law out and out as the basis of her jurisprudence. Of course I am not to be understood as saying that in no particular did she adopt any of the principles or doctrines of the civil law. On the contrary, modern researches have shown that in its early development the common law was influenced by and im- bibed principles from the civil law to a very much larger extent than formerly was supposed. But at an early day the Roman law fell into disfavor and became an object of aversion, and thenceforth the common law developed 10 on lines of its own. We may therefore say that, broadly speaking, the common law, as a system, was indigenous to the soil. As compared with the civil law, it was, at least during the earlier English reigns, much less highly developed and relatively crude. Moreover, there pre- vailed in the English courts a spirit of narrowness, and a disposition to adhere servilely to precedents, instead of expanding legal principles and extending and adapting legal remedies to meet changing conditions; and as Eng- lish civilization became more complex and more highly developed, the common law did not keep pace therewith but settled down into rigidity. Hence cases would arise from time to time for which the law as declared and ad- ministered by the courts did not afford a remedy, or an adequate remedy, and the natural course would be an ap- plication for relief to the original fountain of justice, the king in council. As to the precise manner in which the chancellor came to be the channel through which such relief was obtained, somewhat different views have been advanced by writers on the subject. All agree that his jurisdiction is derived from that which remained in the king's council after the partition of the great court of justice by the set- ting up of the courts of exchequer, common pleas and king's bench, i. e. the residuum of judicial powers which had not been delegated to these courts. Without taking time to discuss the exact way in which this came about, let it suffice to say that not improbably, starting from the practice of presenting petitions to the king in council, and the reference of such petitions to the chancellor for in- vestigation and consideration, the chancellors came in course of time to be regarded as acting, independently of the council, as the special representatives of the king for the purpose of affording relief in cases for which a remedy could not be obtained in the ordinary law courts, 11 and eventually the conception that they constituted a court for this purpose arose. By gradual steps, including, as the historians affirm, successive usurpations on the part of the chancellors, the mighty fabric of chancery jurisdiction was built up. "The equity administered by the early English chan- cellors," says Professor Pomeroy, "and the jurisdiction of their court, were confessedly borrowed from the aequitas and judicial powers of the Roman magistrates:" Pom. Eq. Jur. sec. 2. He also says that "in the earliest periods the jurisdiction was ill defined, and was in some respects even much more extensive than it afterwards became when the relations between the equity and the common- law tribunals were finally adjusted. This was chiefly due to the troublous times, the disturbed condition of the country, while violence and oppression everywhere pre- vailed, and the ordinary courts could give but little pro- tection to the poor and weak; when the powerful land- owners were constantly invading the rights of their in- feriors and overawing the local magistrates": Id. sec. 36. In process of time equity developed into a scientific sys- tem of jurisprudence, with as well defined and settled limits and regulating principles as the common law itself. Given this situation — there being two co-existing and separately administered codes of rules, and courts of law administering one system, and chancellors administering another which professed to be intended to remedy defects in the former, the probable thing to expect would be the development of a spirit of antagonism between the law and equity courts; and this is exactly what occurred. It was greatly accentuated by the prevailing prejudice which had grown up against the Roman law, upon which the chancellors largely drew for their doctrines, and by the view, entertained by the law courts, that the jurisdic- tion in fact exercised by the chancellors consisted largely 12 of unwarranted usurpations. The principal point of col- lision was the extension by the chancellors of relief after and against the judgment of a court of law, by enjoining the party, on some equitable ground, from causing such judgment to be enforced or making any use of it. Over the right of the chancellor thus to interfere with judg- ments at law the courts engaged in a struggle which lasted for centuries. It culminated in a series of pitched battles occurring during the reigns of Elizabeth and James I. In their efforts to put an end to what they regarded as an unwarranted attempt to overturn the law of the land, the common law courts, stirred up by Sir Edward Coke, who was the chief champion on that side of the contro- versy, resorted to the weapon of indictments under the Statute of Praemunire, 27 Edw. Ill, against chancery lawyers who dared to move for injunctions against the enforcement of judgments at law. That statute had im- posed severe penalties upon all "which do sue in any other court to defeat or impeach the judgments given in the king's court." It was claimed by the champions of equity that this statute was aimed merely against foreign, that is the ecclesiastical courts, and had no reference to the king's court of chancery, but the common law courts held that suing in chancery came within its provisions. The most famous of these indictments was one that was preferred in 1588 against Serjeant John Heal, of the Inner Temple, for bringing on behalf of a client a suit in chan- cery for relief against a judgment. The Tudor and Stuart monarchs frequently meddled with proceedings in the law courts in a way that later ages would not have tolerated, and Elizabeth personally interposed in the case of Serjeant Heal, taking in this instance the side of chan- cery. She called the judges before her, and gave them a sharp lecture, intimating to them her royal pleasure that 13 the indictment be not sustained. In consequence the in- dictment was quashed, though this action was put by the court upon the ground of a mistake of a name in it, the judges not receding from the position that the Statute of Praemunire applied. Lord Ellesmere, who was the lord chancellor, was stoutly determined to uphold his juris- diction, and continued to sustain bills for relief against judgments. A few years later the celebrated case of Throckmorton v. Finch came up in his court. In the reign of Philip and Mary Thomas Throck- morton received from the crown a valuable lease of land which was the site of the former Priory of Raveston, the lease containing a condition that it should become void upon a failure to pay rent for forty days after it became due. An accidental default occurred during the reign of Elizabeth, Throckmorton's servant having been robbed while on his way with the money to pay the rent. Before the next pay-day the queen's receiver accepted the rent so in arrear and gave an acquittance for it, and for twenty-one years thereafter the rent was regularly and promptly paid, accepted and receipted for. Notwith- standing all this, the queen, having declared a forfeiture for the default that had occurred by delay in the one pay- ment of the rent, conveyed the land to another person who afterwards conveyed to Sir Moyle Finch. Finch then made a new lease, and his lessee brought ejectment in the exchequer against Throckmorton. That court held that by the failure to pay the defaulted instalment of rent within forty days after it fell due, the lease was for- feited and became ipso facto void; that the lapse of time before a forfeiture was asserted, and the subsequent pay- ment and acceptance of rent, did not affect the queen as would have been the case with a private person; and that the land was at her ample disposal and the conveyance made by her passed a good title. The plaintiff accord- 14 ingly recovered a judgment for it against Throckmorton, which was affirmed by the exchequer chamber. But Throckmorton was not yet willing to give up his claim to the leasehold, and he filed a bill in chancery to obtain re- lief from this forfeiture and the monstrously unjust judg- ment enforcing it, in which bill he averred, as the equit- able ground for such relief, that the non-payment of the rent was not wilful but the result of unavoidable accident, to-wit, the loss of the money, with which it was intended to be paid, by the robbery of his servant when actually on the way to make the payment. The defendant demurred to the bill, on the ground that equity had no right to in- terfere after a judgment at law. Lord Ellesmere was about to overrule the demurrer and order the defendant to answer the bill, when Elizabeth interfered, this time on the side of law as against chancery, ordering him to refer the demurrer to the consideration of the twelve judges. Ellesmere submitted, and the judges naturally decided that the demurrer must be sustained. 3 But the controversy between the courts was not ended thereby. Lord Ellesmere still continued to give relief against judgments at law, and there were more indict- ments under the Statute of Praemunire. In the year 1616, in the reign of James I, the controversy again came to a head, Ellesmere still being chancellor and Coke being the lord chief justice. In order that it might be finally set- tled, Sir Francis Bacon, then the attorney general, and Lord Ellesmere, induced the king to interpose. A com- mission of crown lawyers, headed by Bacon, was ap- pointed by the king to report on the question in dispute. They did so, stating as a ground for sustaining the chan- cery jurisdiction the ingenious quibble which has ever 3 The statements in the text regarding Throckmorton v. Finch are based upon the account of that case given in Judge Charles E. Phelps's. "Falstaff and Equity." 15 since been quoted in the books, that chancery "does not assume to undo the judgment, but only to restrain the cor- rupt conscience of the party." This is, undoubtedly, the form which the action of chancery would take; the in- junction against the enforcement of the judgment would not be addressed to the court which pronounced it, but to the party alone, restraining him only. But, looking be- neath the mere form to the substance and effect of the action, what practical and substantial difference is there between undoing the judgment and restraining the party from taking any benefit by it? So far as he is concerned, it is a case of "six of one and half a dozen of the other." On the commission's report the king decided in favor of the chancery jurisdiction, and by a prerogative order established the right of chancery to relieve against an in- equitable judgment at law. Coke submitted to this, and the active war between the courts terminated. The chief justice, however, remained unconvinced, and afterwards, in his Institutes, stoutly maintained that the jurisdiction exercised by the chancellor on this subject was contrary to the statute of 27 Edw. III. After his death the question ■was again mooted at intervals, and so late as 1695 Lord Chief Baron Atkyns published an elaborate treatise in support of Coke's doctrine, but this jurisdiction was there- after exercised by equity without controversy or interrup- tion. The results of the final establishment of the suprem- acy of the doctrines of equity over the rules of the com- mon law are to be seen at this day in the jurisprudence of our state. When Pennsylvania was settled by colonists from England, the settlers, according to established doctrine, brought with them the English law and jurisprudence so far as adapted for their situation in the new country. The 16 law so brought by them consisted not only of the princi- ples of the common law, and statutory modifications thereof, but also of the principles of equity jurispru- dence.* Some settlements had been made within the bounds of what is now Pennsylvania before William Penn be- came the proprietary, and these were a part of the terri- tory which Charles II in 1664 granted to the Duke of York, afterwards James II. They continued under the Duke of York's government until 1681. During that regime, as will be seen on consulting the volume containing the Duke of York's Book of Laws, and the charter and laws of the Province of Pennsylvania, which was published in 1879 under the direction of the Secretary of the Common- wealth in pursuance of the act of June 12, 1878, P. L. 203, provisions were made for the administration of equity by the courts. By a royal charter dated March 4, 1681, the same king, Charles II, granted the province of Pennsylvania to William Penn, who then gave it a new judicial organiza- tion, very simple at first, but gradually developed and remodeled. The government of the province, as finally organized, was carried on by a lieutenant governor, ap- pointed by the proprietary, assisted by a governor's coun- cil, and by an assembly or legislature. Laws passed by 4 I remark here, once lor all, that general statements, contained in this paper, to the effect that the principles of equity developed in Eng- land are in force in Pennsylvania, must be understood as subject to cer- tain exceptions and qualifications. For example, the doctrine of "tack- ing," in connection with mortgages, is not recognized here. See Dor- row v. Kelly, 1 Dall. 144; Anderson v. Neff, 11 S. & R. 208, 223. And the cy-pres doctrine was adopted only in a modified form and to a limited extent: Witman v. Lex, 17 S. & R. 88, 92-3; Philadelphia v. Girard's Heirs, 45 Pa. 9, 28; though afterwards somewhat extended by the acts of April 26, 1855, P. L. 328, sec. 10; May 26, 1876, P. L. 211, and May 9, 1889, P. L. 173. 17 the assembly were subject to abrogation by the king in council. Various attempts were made to establish in the pro- vince, by law, the chancery jurisdiction. In 1684, and again in 1690, bills were passed conferring equity juris- diction upon the courts, but these acts were repealed by William and Mary in 1693. In 1701 an act was passed for the establishment of courts of judicature in the province, which specially clothed judges of the county courts with equity powers, and also vested equity jurisdiction in the provincial court. This was repealed in England in 1705. In 1710 another statute for the establishing of courts of judicature was enacted, conferring equity powers on the county court judges, and making the supreme court a court of appeal in equity. This was repealed by the king in council in 1713. In 1715 a supreme or provincial court of law and equity was provided for, authorized to hold pleas in equity according to the rules, manner and form used in the courts of chancery and exchequer in Great Britain. This law shared the fate of its predecessors, being re- pealed in England in 1719. The fact, which at first sight appears very remark- able, that each of these laws was allowed to stand for sev- eral years before repeal, although some of them were to a considerable extent re-enactments of provisions pre- viously repealed, is explained by William Henry Rawle r in his lecture on Equity, by the statement that under the terms of their charter the colonists had five years within which to submit their laws to England for approval, and after their passage would delay their transmission as long as they decently could, in the meantime acting under them; and when, on their being sent to England, they would be repealed, other laws, as nearly similar as they 18 dared to pass, would be enacted, and acted under until these too got to the royal council and met with repeal. One more attempt to make provision for the exer- cise of chancery jurisdiction was made. Sir William Keith was the lieutenant governor of the province from 1717 to 1726. He had, by his course in siding with the people as against the proprietaries in several matters, acquired much popularity and influence in the province. He sent a message to the legislature in May, 1720, in which he "informed them that it having been represented to him that a court of chancery was very much wanted, he had consulted those learned in the law and others of good judgment, who all agreed that the office of chancellor could only be lawfully executed by him who, by virtue of the great seal, might be understood to act as the king's representative; but, he added, that upon this subject the opinion of the House should principally direct his con- duct. A resolution was the next day unanimously passed that, considering the present circumstances of the pro- vince, it was the opinion of the House that 'for the present the governor be desired to open and hold a court of equity for the province, with the assistance of such of his coun- cil as he shall think fit, except such as have heard the cause in any inferior court.' " (Rawle, Eq. 19, 20.) This resolution having been laid before his council, it was agreed that he should act under it, and that the court should be held by the governor as chancellor, with the as- sistance of members of the council, who might also be employed as masters in chancery. Accordingly in Aug- ust, 1720, the governor issued a proclamation announcing that the court would be opened on the 25th of that month. This was the only separate court of chancery that Pennsylvania ever had. It lasted for about sixteen years, when it was discontinued in consequence of another reso- lution of the assembly. During Governor Keith's time 19 the court did not- meet with much opposition or distrust, but when he was succeeded as governor by Patrick Gor- don, in whose disposition to care for the interests of the people there was not the same confidence, opposition be- gan to develop, originating in the feeling that it was un- safe to have the governor, who was the appointee of the proprietaries, at the head of an important court before which would be likely to come matters in which the pro- prietaries were personally interested. Objection was also made to the heavy fees charged, and to the requirement that persons from every part of the province should at- tend the court at Philadelphia. This opposition culmi- nated in a petition to the assembly, which led that body in 1735 to adopt a resolution declaring the court of chancery as then established to be "contrary to the charter of privi- leges granted to the freemen of this province." The reference here is not to the king's charter, but to a charter or grant of privileges made by William Penn on October 28, 1701, to the inhabitants of Pennsylvania, in which he provided, inter alia, that no person should be obliged to answer any complaint, etc., relating to property, "before the governor in council, or in anj r other place but in the ordinary courts of justice, unless appeals thereunto shall be hereafter by law appointed," and provided further that no law should be made, nor anything done, contrary to any part of this charter, without the consent of the gover- nor for the time being and six-sevenths of the assembly. As this court of chancery was to be held by the governor and members of his council, it was contended by the as- sembly that it was a direct violation of the charter of 1701. A statement of facts was drawn up and submitted to the attorney general and solicitor general of England, for the purpose of obtaining their opinion upon the legality of the action establishing this court. This statement and the opinions given upon it, are printed in an appendix to the 20 first volume of Dalias's Reports. Both of the officers agreed that the court was not in violation of the charter of 1701, because the resolution of the assembly asking the governor to establish it was a sufficient consent to a de- parture from the provisions of that charter; and the solici- tor general went even further, holding that "the proceed- ings in a court of equity may justly be called the ordinary course of justice," and therefore in no event could the court be an infringement of the charter. The assembly had contended, in the controversy between it and the gov- ernor which followed the resolution of 1735, that no mere vote of assent by the house could erect a court of equity: that this could be done only by a law of the province, and that only in a court so established could a suit be said to be "in the ordinary course of justice." Governor Gordon continued to act as chancellor until his death in August, 1736, but, notwithstanding the opin- ions of the attorney and solicitor general, no successor of his ever attempted to exercise the chancery powers. The records of this court, as found in the Registrar's Book, are printed by Mr. Rawle as an appendix to his lec- ture. Some of them are very interesting reading. Keith's court having died n natural death, and no pro- vision being made by the assembly for another court to take its place, (which is said to have been because the governor and the assembly could not agree as to who should exercise the office of chancellor,) it became neces- sary for the ordinary courts to deal with the situation thus created. Not only were the principles of equity recognized as in force m Pennsylvania, but it was also realized that, by reason of the fact that the common law had in previous ages developed in such a form, and had assumed such a shape, as to be inadequate, alone, for the government of modern civilization, these equity principles were abso- 21 luteiy needed to supplement it, and without them it was impossible to administer justice in a manner suited to the needs of the commonwealth. The view entertained was that the doctrines and principles of equity were just as much a part of the law of Pennsylvania as was the com- mon law, and therefore the regular courts, as courts estab- lished to administer justice, could decide cases regularly brought before them in accordance with these principles, but that, as they had not been invested with the chancery powers, (that is, with the right to use the special remedies and forms which appertained to proceedings in the Eng- lish chancery,) the only way in which they could deal with equity principles was by trea ting them as rules which had become incorporated in the law of Pennsylvania ; and hence, in order that the beneficent doctrines of equity might not be merely splendid abstractions — to be admired but not used — the courts should mold and adapt the com- mon law forms in such a way as to make it practicable to use them as the means of working out and applying the equivalents of the appropriate equitable remedies. And this the courts set themselves to do. I do not mean to suggest that the idea of using com- mon law forms for the administration of equity principles was first conceived and put in practice after the abolition of the chancery court. A remark of the chief justice in Swift v. Hawkins, 1 Dall. 17, hereafter to be more particu- larly referred to, indicates that, to some extent at least, equitable rights were allowed to be asserted in common law suits even during the operation of the separate court of chancery, and this must have been merely the continua- tion of a practice introduced before that court was set up. What I do say is, that after the chancery court was aban- doned the judges set themselves to the work of extending such practice, and systematically molding and adapting the forms of the common law so as to fit them for the en- 22 forcement of every principle of equity that was capable of so being administered. Time would fail me were I to attempt a complete treatise upon the system of remedies which the courts de- veloped, or even to go into a specification of all of these, and I shall have to confine myself to giving a few illustra- tions of the manner in which they dealt with the situation. 1. Equitable defenses. The case of Swift v. Haw- kins, 1 Dall. 17, (1768,) was an action of debt upon a bond. The defendant, under the plea of payment, offered to prove that he had received no consideration for the bond. The offer was objected to because "the consideration of a bond is not inquirable into, the passing of the bond being a gift in law of the money." This objection was unques- tionably good at common law. This defense was one which the law did not allow to be made in such an action. The common law rule was that the obligor's seal dis- pensed with the necessity of a consideration and rendered inquiry into it inadmissible because immaterial. If a man voluntarily put his seal to an obligation which was not in violation of any prohibition or policy of the law, he absolutely bound himself, and it may be said that, practically, no defense was open to him except pleading an acquittance or release. 5 Shylock speaks in strict ac- cord with the common law rule when, on the trial of the action brought by him in the court of the Duke of Venice 5 According to the ancient common law, even proof of actual pay- ment of the money would not, alone, have been a defense, because it was held that a bond could not be avoided by bare averment and parol proof, but only "by a sufficient writing or by some other thing of as high authority as the obligation is," and hence, if one indebted upon a sealed obligation paid the debt in full, but neglected to obtain release or a sur- render of the instrument, he might be compelled by suit to pay the money a second time: Doctor and Student, ch. xii., Pom. Eq. Jur., sec. 70. 23 upon the bond given by Antonio, he says, in reply to an impassioned speech of Gratiano : "Till thou canst rail the seal from off my bond, Thou but offend'st thy lungs to speak so loud." But equity looked at the matter in a different light. She did not attempt to disregard the legal rule that a seal dispenses with the necessity for a consideration, and therefore, mere want of consideration is not a defense to a sealed obligation; but she drew a distinction between want of consideration and failure of consideration: see Candor & Henderson's App., 27 Pa. 119; Sherk v. Endress, 3 W. & S. 255, 257; Snyder's Est., 7 Kulp 409; Anderson v. Best, 176 Pa. 498. When a man, without stipulating for any consideration, sealed and delivered his bond, equity left hirn to be governed by the rule of law; but if he had given the obligation upon the understanding and agreement that he was to receive a consideration for so doing, then equity regarded it as unjust, if he failed to re- ceive such consideration, to permit the obligation to be enforced against him. Accordingly, where there had been a failure of consideration, she would interfere by enjoining the obligee from enforcing the bond by means of an action upon it at law. In short, failure of considera- tion was an equitable defense, and in Swift v. Hawkins the defendant was setting up such a defense in a court of law. (Although the wording of the reporter's very con- densed statement of the facts might on its face mean that there was a want rather than a failure of consideration, the actual meaning must have been that the defendant had failed to receive a consideration that had been stipu- lated for.) The court held that, there being no court of chancery in the province, there was a necessity, in order to prevent a failure of justice, to let the defendant, under his plea of payment, make this defense, and Chief Justice Allen said that he had known this to be the constant prac 7 24 tice of the courts of justice in the province for the preced- ing thirty-nine years. In Mackey v. Brownfield, 13 S. & R. 239, (1825,) where, under the plea of payment with leave, the defendant in a scire facias sur mortgage was allowed to show that only a part of the sum for which the mortgage was given had actually been advanced to him, the remainder of the loan being still in the hands of the mortgagee, Mr. Justice Dun- can said of Swift v. Hawkins : "This case may be called the Magna Charta of this branch of equity, and has ever since been followed, and rules of court universally estab- lished requiring notice of the special matter, fraud, or failure of consideration, intended to be given in evi- dence." Thus a plea filed in an action at law became a sub- stitute for a bill in equity. 2. Equitable claims by plaintiffs. Similarly, a plain- tiff was allowed to maintain an action based upon an equitable right in himself, making the action a substitute for a bill in chancery. The sustaining of an action not grounded upon a legal right was, of course, a common law solecism; but this was done under the maxim that equity regards that as done which ought to be done; that is to say, for the purpose of sustaining the action the court would, according to the doctrine that in fictione juris semper subsisiit aequitas, presume that the defendant had done whatever was necessary to invest the plaintiff with the right to sue. A most interesting illustration of this practice is found in the case of Martzell v. Stauffer, 3 P. & W. 398, (1832). The father of the plaintiff had by his will created a trust for the benefit of the latter, who was a habitual drunkard. Under the will a certain fund was set aside, the income of which was to go for the benefit of the plaintiff, and the 25 executors were to appoint a trustee to handle that fund. The defendant was so appointed, and, having this fund in his hands, became insolvent and proved to be an unfaith- ful trustee. This action of indebitatus assumpsit was brought by the cestui que trust, with the express consent and approval of the surviving executor, for the purpose of getting the fund out of the hands of the defaulting trustee. The trial court charged that the plaintiff could not re- cover, but the supreme court reversed, Mr. Justice Rogers saying that if we had a court of chancery the remedy would be plain, it being a settled principle of that court that a trustee who mismanages, or by existing or impend- ing insolvency puts in jeopardy, the assets in his hands, should be prevented from further interfering with the estate, and it is a common practice to order him, in default of security, to bring the money into court, whereupon the court would appoint a receiver of it; that, for want of a court of chancery, the courts of Pennsylvania were ob- liged, from necessity and to prevent a failure of justice, to resort to a common law action, which, although a less direct and more clumsy mode, had been made effectual in many cases to accomplish equitable relief; and that the principle had been settled that equitable relief will in- variably be granted when it can be done consistently with the forms known to the common law. In this case, as is obvious, the plaintiff would have been a proper complainant in a court of chancery. As the cestui que trust for life of the fund held by the trustee, he Avould have had a standing to ask the chancellor to inter- vene and take the fund out of the defaulting trustee's, hands, and, treating this action as a substitute for such a bill in equity, the court held that it could be maintained with him as the plaintiff. But the action was in form a suit for the recovery of the money by the cestui que trust, and by the very terms of the trust he was not allowed to 26 handle the money. Justice Rogers, referring to this dif- ficulty, says that it can be obviated by the court's controll- ing the process of execution upon the judgment that may be recovered, so as to require that, when made, the money shall be brought into court by the sheriff, which can be accomplished either by entering a special judgment or by merely endorsing on the writ of execution an order giving directions to the sheriff; that such recovery of the fund would have the effect of terminating the defendant's trus- teeship, and it would then devolve upon the surviving executor to appoint a successor, who would be entitled to receive the fund under the orders of the court. Observe the ingenuity with which in this case a method was worked out of giving, under common law forms, the complete relief that a chancery court would have given in the case, had there been one. 6 Before leaving the present head I should add the re- mark that such a departure from common law rules as the allowing a suit to be brought in the name of a plaintiff having only an equitable right, was not carried further than necessity required. Therefore this was not permit- ted in a case where a party had, by the assignment of a non-negotiable chose in action, an equitable title thereto. At common law a chose in action was not assignable. Certain choses in action, such as bills of exchange and promissory notes, were in time made exceptions to this, t> In the same year in which this case was decided, the legislature by the act of March 29, 1832, P. L. 190, section 57, clause XIX, provided a writ by means of which the orphans court, in the case of a trust sub- ject to its jurisdiction, where the trustee is wasting or misapplying the trust property, or is about to abscond and carry it out of the jurisdic- tion, could accomplish, in a more direct and effectual manner, the very relief which this decision worked out, viz. the taking of the trust funds or effects into the custody of the sheriff, to the end that they may be brought within the control of the court and be further disposed of in accordance with its order. 27 being given the quality designated by the term negotiabil- ity. Our act of May 28, 1715, 1 Sm. L. 90, further altered the law by authorizing the assignment of bonds and other specialties by means of a writing under seal and attested by two witnesses, and empowering the assignee to bring suit thereon in his own name; by virtue of which act an assignment so made has the effect, it may be said, of pass- ing a legal title, though it is held that the assignee takes subject to pre-existing equities between the original parties: Wheeler v. Hughes, 1 Dall. 23. But as to choses in action that are neither negotiable nor within the pro- visions of the act of 1715, the rule has always been at law that they are not assignable, while in equity an assignment has been upheld, so that the. assignee would acquire an equitable title thereto, the legal title remaining in the assignor. An assignment of a bond or specialty not made in conformity with the act of 1715 by being under seal and attested by two witnesses, would have the same effect as an assignment of a chose to which the statute did not apply; i. e. it would pass simply an equitable title: Bunt- ing v. Railroad Co., 81 Pa. 254. In all cases of such equitable assignments equity re- garded the assignor as holding the legal title to the obliga- tion in trust for his assignee, and as under the duty of do- ing whatever was requisite to enable the assignee to enjoy the benefit of the transfer made to him. Accordingly it would compel him to permit the assignee to bring a suit on the instrument in his name. Hence all that was neces- sary for the Pennsylvania courts to do in cases of equitable assignments was to enforce the equity principle that the assignee had the right to use the assignor's name in bring- ing suit; and this was done. The action would be brought in the name of the obligee to the use of his assignee, who throughout the case would be treated as the real plaintiff, having absolute control of the action and being alone held 28 responsible for costs. This practice was finally regulated by the act of April 23, 1829, 10 Sm. L. 455, to some extent, the act also providing that the death of the assignor pend- ing the suit should not abate it, and that in certain cases the assignee might proceed in his own name. 3. Specific performance. The rules just referred to, "viz. that either an action at law, or a defense to such an action, could be grounded upon an equitable right, being established, the way was opened for the administration of the equitable remed}' of specific performance. The action that was commonly employed for this purpose in the case of contracts for the sale of land was ejectment, and by means of this action this relief might be given to either a plaintiff or a defendant. The ingenious method by which ejectment was rendered available for the purpose was by resorting to the plan of rendering conditional verdicts, an expedient which, after having been extensively employed in practice, was sustained by the supreme court: Cool- baugh v. Pierce, 8 S. & R. 418. In a case where, in pur- suance of the contract, possession had been taken by the vendee, but the purchase money had not been paid in full, the vendor might bring ejectment on his legal title, and in such a case the vendee was allowed to set up his equity as a defense, claim the opportunity of paying the balance of the purchase money, and ask that on his so doing the con- tract be specifically performed. In such circumstances relief would be given him by means of a conditional ver- dict, the jury rendering a verdict for the plaintiff for the land described in the writ, to be released upon the defend- ant's paying, within a time fixed by the jury, the balance owing, the amount of which the verdict would liquidate; and the making of a deed by the plaintiff could be pro- vided for by adding a further condition that he should not be entitled to receive the money until this should be done. 29 If the defendant failed to comply with the terms so fixed, the verdict would become absolute, and his equitable title would be gone; but if he did so comply, he would obtain the equivalent of a decree of specific performance by a chancellor. Suppose, however, that the vendee were not in posses- sion : he would then, for the purpose of obtaining specific performance, be allowed to base an action of ejectment against the vendor upon the equitable title which the con- tract vested in him. To allow ejectment to be maintained, against the holder of the legal title, by a plaintiff having a mere equitable right, was a legal anomaly, but, regarding the action as a substitute for a bill in equity, it ceased to be illogical. If the vendee had paid the purchase money in full, he would be entitled to a verdict absolute in the first instance. But if any of the purchase money still re- mained to be paid, the verdict in his favor would be a con- ditional one, specifying the amount to be paid by him and the time when or within which such payment should be made, and making such payment the condition of his right to enforce the verdict by obtaining possession of the land. The action of ejectment would not, however, serve to effect complete specific performance in all cases. Sup- pose the vendee to be in possession and to have paid all the purchase money, and that after receiving the purchase money the vendor has refused to give a deed. How could the vendor be forced in such a case to make the deed? By a conditional verdict for damages. The refusal or neglect to convey the legal title would be such a breach of contract on the vendor's part as would sustain an action for dam- ages. If the jury should give a verdict for substantial damages, with the condition that these should be released upon the vendor's conveying the title to the vendee, this would bring the vendor to time by making it decidedly to his interest to perform his contract obligation in order to 30 get rid of the damages. In his essay on Equity in Penn- sylvania, written in 1825 and reprinted in the First Annual Report of the Pennsylvania Bar Association (1895,) Mr. Laussatt says that it was the regular practice of the courts, whenever the plaintiff was in equity entitled to have a specific act performed by the defendant, to compel this by granting conditional damages, so large in amount that the defendant would find it to his advantage to yield to the plaintiff the equity which was the subject of the suit: page *48. A number of cases are found in the books in which, the plaintiff having filed a stipulation to release the dam- ages that might be awarded, when the defendant should perform the act in question, the court has advised the jury to give damages sufficient in amount to operate in bring- ing about such action by the defendant : see, for example, Clyde v. Clyde, 1 Y. 92; Walker v. Butz, 1 Y. 574; Anony- mous, 4 Dall. 147; and see also Decamp v. Feay, 5 S. & R. 323, 328, approving such a practice. 7 The action of replevin was used to enforce specific performance of contracts for the sale of personal prop- erty, in the exceptional cases in which equity would grant such relief, just as the action of ejectment was employed for real estate. 4. Trusts. The case of Martzell v. Stauffer, already cited, is an illustration of a method of protecting a trust estate by means of a common law action. It is obvious that the form of relief which the supreme court worked out in that case amounted to the equivalent of a chancery 7 The idea of using conditional damages as the means to compel the defendant to perform some act, was not first conceived in Pennsylvania. It is said that in the reign of Edward IV Fairfax counseled his col- leagues in the common law courts to resort to this device as a means of checking the progress of the clerical chancellors in drawing litiga- tion into their court. 31 decree removing an unfaithful trustee, settling an account against him, and ordering him to pay over the amount for which he is found accountable. To a very great extent, however, the common law forms were inadequate to enable the courts to supervise and control the execution of express trusts, and this fact led the legislature to pass laws, from time to time, pre- vious to the equity act of 1836, providing for the appoint- ment and discharge of trustees and for the regulation in divers particulars of their acts. 8 But in the large class of cases in which equity raises what are known as resulting and constructive trusts, com- mon law actions usually afforded the means of establish- ing and enforcing these very effectually. This could be done as to land in an action of ejectment; as to chattels in replevin or trover, and as to money in assumpsit. 5. Reformation. At common law a written agree- ment could not be controlled or varied by parol evidence. If by fraud, accident or mistake something were included therein to the inclusion of which the parties had not mutually agreed, or something which was agreed on and intended to be included were omitted, so that the contract as written did not express the true agreement of the parties, the one to whose prejudice this had occurred was forced to appeal to the court of chancery for relief ; for, if 8 Power to regulate the trusts created by deeds of voluntary assign- ment was conferred in 1818; and by acts passed in 1825, and 1828 pro- visions were made for the appointment, and for the discharge after settlement of their accounts, of trustees in other trusts. See also the Act of 1831, P. L. 192. On June 14, 1836, two days before the approval of the act conferring full chancery powers as to subject-matters therein mentioned, including trusts, an act went into effect giving extensive jurisdiction over trustees: P. L. 630. By the act of March 29, 1832, P. L. 190, jurisdiction over testamentary trustees, guardians, executors, etc., was conferred upon the orphans court. 32 the writing were brought before a court of law by an action upon it, that court would not listen to parol evi- dence the purpose of which was to vary its terms by show- ing that it did not correctly express the agreement in the making of which the minds of the contracting parties had actually met. But our courts established the practice of permitting the writing to be in effect reformed in the course of the trial of an action brought upon it. This is what Mr. Justice Paxson meant — as a subsequent passage in his opinion shows — when he remarked in Phillips v. Meily, 106 Pa. 536, that "the English rule that parol evi- dence is inadmissible to vary the terms of a written instru- ment does not exist in this state." The rules of equity on the subject of reformation have been followed with reference to such alteration of a writ- ing by parol evidence: quoad hoc, the judge sits as a chan- cellor, and it is for him to decide whether a sufficient case has been made out to justify reformation by a chancellor supposing the testimony offered for the purpose to be be- lieved; it is only in the event that he decides this question in the affirmative that he will then submit the case to the jury, with instructions that, if they find the allegations made to be true, they may treat the instrument as if it had been reformed. Thus the functions of the judge as a chancellor, and the functions of the jury, are not confused but kept distinct. 6. Opening confessed judgments. As Justice Mitchell suggests, in his little book on Motions and Rules, if Black- stone could attend a few of our Pennsylvania motion courts, he would be likely to think that the doctrine of his definition of final judgments as being "such as at once put an end to the action'' has been strangely perverted; for with us, in a large proportion of cases, the entry of a final judgment on a warrant is but the beginning of litigation. 33 The payee of a judgment nole takes it to the prothono- tary's office and has judgment entered upon it. Thereby the law solemnly adjudges his right to collect so much money from the maker of the note. But the defendant then comes into court with an application to have the judgment opened in order that he may be let into a de- fense; and thus a long continued and costly litigation is set on foot, in part falsifying Judge Duncan's remark in Swan v. Scott, 11 S. & R. 155, 163, that "the judgment of the law, like the hand of death, puts an end to all strife." Chief Justice Gibson, in Gallup v. Reynolds, 8 Watts 424> says that this practice of opening judgments entered on a warrant of attorney to let in a defense specially sworn to, is peculiar to our jurisprudence; that there are no traces of it in the English books, for, though the English courts would set aside the judgment, and order the war- rant to be delivered up, if it appeared that it had been pro- cured from an infant or feme covert, or for an illegal consideration, or the like, yet no instance could be found in the English courts of a judgment opened in our sense of the term. He goes on to state that in our practice the opening of a judgment is not setting it aside; it does not destroy the plaintiff's lien for whatever may ultimately be found to be owing, and it deprives the judgment "of no quality but its maturity for execution." In short, open- ing is simply extending to the defendant the opportunity of presenting a defense which he has not yet had a day in court to bring forward. This practice, will therefore be seen to be the equivalent of the application to the chan- cellor tor relief against a judgment at law, to which ref- erence has been made in connection with the history of equity in England, and our appellate courts have declared this to be its nature. In Kellogg v. Krauser, 14 S. & R. 137, where an application to open was made, Tilghman, C. J., says that on proof of a fraud practiced on the defendant 34 by the plaintiff, a court of chancery "might have enjoined him against proceeding on the judgment, and the court of common pleas, having ascertained the fact, may give relief in some manner equivalent to an injunction." The rule has been well settled that the application to open a judgment is essentially an equity proceeding, the relief applied for being in effect the decree of a chancellor; from which it follows that the applicant must make out such a case as would justify a chancellor in making such a decree : Knarr v. Elgren, 19 W. N. C. 531 ; English's App., 119 Pa. 533; Jenkintown Nat. Bank's App., 124 Pa. 337; Koch v. Biesecker, 7 Super. Ct. 37. The judge, acting as a chancellor, restrains the plaintiff from prosecuting ex- ecution process pending the investigation of the defense set up, and, after hearing the testimony in regard to it, determines whether the evidence as a whole presents a case sufficiently strong to justify the grant of relief by a chancellor in case the testimony for the defendant be believed; if it is, an order opening the judgment will be made, to the end that the defendant may have his testi- mony considered by a jury; otherwise the application will be refused. If the judgment be opened, and the jury find for the defendant, a judgment is then entered on their verdict which is the equivalent of a perpetual in- junction granted by a chancellor against the enforce- ment of the original judgment. This procedure is at the present time such a common and familiar practice — being a matter of every day ex- perience in our courts — that I have perhaps taken up too much time in speaking of it. I have done so because it seemed to be worth while to define its true nature, as be- ing an instance of the administration of equity under com- mon law forms, especially in view of the fact that for a time there existed some confusion of the principles in- volved, in the decisions of the supreme court, it having 35 been held in Wistar v. McManes, 54 Pa. 318, and in Ash- ton's Appeal, 73 Pa. 153, that after the court in which a judgment is entered has discharged a rule to open, the de- fendant may still, for the purpose of setting up an equita- ble defense to it, file a bill in equity — a ruling which over- looked the fact that his original petition to open was itself an equitable proceeding, and its dismissal was an adjudi- cation by a chancellor upon the equity set up. This error was corrected by the overruling of these cases in Frauen- thal's Appeal, 100 Pa. 290, following the doctrine of Gor- dinier's Appeal, 89 Pa. 528. I might go on and give other illustrations and in- stances of the way in which the courts managed to admin- ister equity without the machinery of a court of chancery; but those that have been given are sufficient in number and variety to illustrate their methods of dealing with the problem and the measure of success they attained. In the illustrative instances which I have given, and in all cases in which equity is administered in a common law trial, it must always be remembered that it is the judge, and not the jury, who acts as the chancellor. Although in the earlier cases, before the Revolution, there was some confusion on this subject, and too much was sometimes left to the jury, in time the courts arrived at, and settled down and adhered to, the correct conception of the mat- ter, which was thus stated in 1827 by Mr. Justice Duncan in Hawthorn v. Bronson, 16 S. & R. 269, 278 : "In Pennsylvania equity is law. Courts give the equitable principle to the jury, as they lay down the legal principles. The facts are for the decision of the jury, as all contested facts must be; but whether, on any state of facts found by the jury, the party is entitled to equity, and the mode, manner and extent of relief, is for the court." 36 And Mr. Justice Sharswood, in Church v. Ruland, 64 Pa. 432, says: "The judge in reality is the chancellor with the assist- ance of a jury. It is not like other ordinary trials at law, where any evidence reasonably tending to prove a fact must be submitted to be passed upon by that tribunal. The conscience of the judge as chancellor must be satis- fied, and what goes to the jury is to determine, the credibil- ity of the witnesses, and to weigh and decide upon the force and effect of conflicting testimony. What is this but the trial of a feigned issue out of chancery ?" The measure of proof required in such cases to sus- tain the equity set up being determinable by the rules of equity and not by those of the common law, it was accord- ingly held that in certain cases, as where it is sought to change a solemn written agreement into one of different purport, this must be done by evidence that is "clear, pre- cise and indubitable," and it is for the judge to refuse to submit the case to the. jury if the proofs do not measure up to this standard: Stine v. Sherk, 1 W. & S. 195. 9 The meaning of the phrase "clear, precise and indubitable" is explained in Spencer v. Colt, 89 Pa. 314; Ott v. Ctyer, 106 Pa. 6, and Boyertown Nat. Bank v. Hartman, 147 Pa. 558. The system thai was reared by the ingenuity and good sense of a long line of able judges, in their endeavors to get as near as possible to the attainment of complete jus- tice, was in truth a noble structure, and the degree of suc- cess which they reached in its practical use was wonder- ful. One result of the system was that Pennsylvania was 9 The act of May 28, 1913, P. L. 358, which aholishes the general rule that in equity a responsive answer must be overcome by the testimony of two witnesses, or by that of one witness and corroborating circum- stances equivalent to another, contains a proviso that nothing in it shall affect the required measure of proof in cases wherein it is at- tempted to reform or overthrow » written instrument. 37 a leader in the modern reform of bringing law and equity together, and causing the former to be permeated by the principles of the latter. Judge Simonton, in his presi- dential address, delivered in 1895 before the Pennsylvania Bar Association, on the subject of Pennsylvania Juris- prudence, (1 Ann. Rep. of Pa. Bar Assoc. 3,) referring to what Pomeroy says in sections 84 to 88 of his work on Equity Jurisprudence respecting the results accomplished in recent times by what the latter calls the "reformed pro- cedure," states that a study of the development of the jurisprudence of Pennsylvania will show that we antici- pated and exceeded the advances in other states of which Pomeroy makes so much. We reached in Pennsylvania by gradual evolution the situation which was brought about in England by the Judicature Act of 1873, providing that law and equity should be concurrently administered by the supreme court of judicature thereby established, and that in all matters not otherwise regulated in the statute, in which there is a conflict or variance between the rules of equity and the rules of the common law, the rules of equity should pre- vail : 36 & 37 Vict. ch. 66, sees. 24, 25. This is exactly what the courts of Pennsylvania had been doing for many years. Indeed, we may say that equity in Pennsylvania came to be practically very much the same thing as the Roman notion of aequiias as described by Pomeroy. This, he states, was composed of a body of moral principles adopted from the law of nature, which "penetrated the en- tire jurisprudence, displacing what of the ancient system was arbitrary and unjust, and bringing the whole into an accordance with the prevailing notions of morality:" Pom. Eq. Jur. sec. 8. Our Pennsylvania system seems to have been largely the product of conscious, deliberate planning. You have all read how Lord Mansfield built up and developed into a 38 well-ordered, systematic code of rules the commercial law, which before his day was a mass of confusion and inco- herence. You have read how Lord Nottingham and Lord Hardwicke, and others, systematized and reduced to an orderly science, as fixed and certain as the common law itself, the principles of equity, thereby removing all ground for Selden's famous criticism — which at one time had considerable foundation — that equity, unlike law, has no measure or standard to go by, but is "according to the conscience of him that is chancellor and according as that is larger or narrower so is equity," to which Selden added that this is just as if we were to take as the standard for our foot measure the length of the foot of the chancellor for the time being, so that our standard would be constant- ly changing and shifting. The work of our Pennsylvania judges in building up an orderly and coherent system for the administration of equity by the methods at their com- mand, was comparable with that done by the great Eng- lish judges whom I have named, in his eulogy of Chief Justice Tilghman, delivered in Philadelphia on October 13, 1827, and printed in an appendix to the 16th volume of Sergeant & Rawle's Reports, Horace Binney gives to that eminent man a large part of the credit for this work, par- ticularly in the matter of reducing the system to a scien- tific form by accurately drawing and establishing the lines separating between the functions of the judge sitting as a chancellor and those to be performed by the jury. Mr. Binney says that, acting upon a suggestion made to him by the distinguished predecessor to whom he owed his office ■ — referring, as I understand the passage, to Governor Thomas McKean, a former chief justice, who on February 25, 1806, appointed Mr. Tilghman as the head of the su- preme court,— Tilghman took up, and with the aid of his colleagues carried through, the work of establishing "the principles of methodised and scientific equity, in their just 39 sway, as a part of the common law of the land," and of showing "how to clothe a large body of equity principles in the drapery of the law." We must not, however, lose sight of the part played by Tilghman's predecessors and successors, as well as by his colleagues. This work was going steadily on during the century that intervened be- tween the abolition of Governor Keith's chancery court and the passage of the act of 1836. Tilghman built on the foundations laid by his predecessors, and his successors carried forward and completed his work. But, in spite of all that can be said in its praise, the system as developed was imperfect as an instrument for the administration of justice. In some instances it work- ed conveniently and efficiently; to others it was not so well adapted. Scattered through the Supreme Court Reports are numerous expressions of the judges to the effect that, as applied to certain cases, it was a clumsy method of en- forcing equitable rights. It was utterly inadequate in some cases. The legislature was therefore led from time to time to pass laws conferring chancery powers upon the courts, and finally to grant a broad equity jurisdiction. Judge Simonton, in his address already referred to, blames the judges for not going further than they did. After referring to the Statute of Westminster 2, which authorized the framing of new writs for the commence- ment of actions in the common law courts in cases where no precedent of a writ could be found, but which fell under the same right as another case in which there was a precedent of a writ and required the like remedy, which statute was reported as being in force in Pennsylvania: Roberts' Dig. 158; Report of Judges, 3 Binn. Appendix; and quoting Blackstone's remark (3 Com. 51) that this provision of the statute, "with a little accuracy in the clerks of the chancery, [who framed the writs by which suits were brought in the common law courts,] and a little 40 liberality in the judges, by extending rather than narrow- ing the remedial effects of the writ, might have effectually answered all the purposes of a court of equity, except that of obtaining a discovery by the oath of the defendant," Judge Simonton says that "it does not seem entirely easy to understand why the supreme court, instead of com- plaining of the want of power, and being in fear of 'doing violence to the forms of action,' did not act upon Black- stone's opinion by devising new forms or adopting those already in use in chancery under the power conferred upon them by this statute;" that if the court had proceed- ed uniformly on the principle of disregarding technical forms when they stood in the way of perfect and exact justice, "and especially if it had exercised the powers con- ferred upon it by the Statute of Westm. 2, it could have not only adopted entire equity principles, but could have devised and adopted forms and administered all equitable relief required; and there would have been no necessity for the frequent complaints made by the judges that while they recognized and applied equity principles, they did not possess chancery powers." He adds : "That they did not cast off entirely the shackles of form imposed by com- mon law procedure, shows only the force of education and custom; that they did so to such a great degree speaks well for their sense of right, and shows the grasp they had ob- tained upon the fundamental principles of equity." It is with diffidence, in view of Judge Simonton's eminence as a judge and his reputation, for learning and accuracy, that I venture to make the following remark. It seems to me that if we are to understand what he said about the court's being authorized by the Statute of Westm. 2 to adopt the forms "already in use in chancery" and use them so as to administer "all equitable relief re- quired," as intended to mean that the court could take over bodily the peculiar chancery forms of remedies, and 41 as intended to apply lo the courts alter the year 1776, then he was hardly giving sufficient consideration to the pro- visions of the fundamental law of Pennsylvania. Section 24 of chapter II of the constitution of 1776 provided : "'The supreme court and the several courts of common pleas of this commonwealth shall, besides the powers usually exercised by such courts, have the powers of a court of chancery so far as relates to the perpetuating testimony, obtaining evidence from places not within this state, and the care of the persons and estates of those who are non compotes mentis, 10 and such other powers as may be found necessary by future general assemblies, not in- consistent with this constitution." The constitution of 1790 left this matter in substan- tially the same situation, except that it added a grant to the legislature of the power to set up separate equity courts. Its language is : "The supreme court and the several courts of com- mon pleas shall, besides the powers heretofore usually exercised by them, have the power of a court of chancery so far as relates to the perpetuating of testimony, the ob- taining of evidence from places not within the state, and the care of the persons and estates of those who are non compotes mentis: And the legislature shall vest in the said courts such other powers to grant relief in equity as shall be found necessary; and may from time to time en- large or diminish those powers, or vest them in such other 10 In speaking of this provision, Mr. Lanssatt points out that it con- tains a historical inaccuracy so far as concerns the custody of lunatics as exercised in England, which is spoken of as being a part of the juris- diction of a court of chancery; that this was not vested in the court of chancery, but was usually delegated to the chancellor personally by commission from the king. This question of historical accuracy, how- ever, is now of little practical importance. 42 courts, as they shall judge proper for the due administra- tion of justice." These provisions continued in the constitution as amended in 1838. At the time of the adoption of the constitution of 1776 it was a settled doctrine that the principles of equity were a part of the law of Pennsylvania, and it was universally understood and agreed that neither that constitution nor the one adopted in 1790 was intended to affect this doc- trine. Assuming this, what reasonable construction can be put upon the language of the constitutional provisions with reference to the "powers of a court of chancery" ex- cept that the constitutions were intended to distinguish between the principles or doctrines of equity upon the one hand, and the powers of chancery (that is to say, the remedial forms and remedies devised and adopted by the English chancellors) upon the other; and to deny to the courts the right to adopt those chancery forms (save in the instances expressly mentioned in the constitutions them- selves) without the sanction of the legislature. If the courts were to be at liberty, acting under the Statute of Westm. 2, to adopt the chancery remedies, or even to devise, in place of them, new and equivalent forms of their own, instead of confining themselves to the use of common law forms for the purpose of working out and enforcing the equitable rights of parties., what would be- come of the constitutional provisions that future general assemblies shall determine with what chancery powers the courts shall be clothed? Suppose we assume that the Statute of Westm. 2 is broad enough in its provisions to have authorized the courts, anterior to the constitution of 1776, to adopt, out and out, the chancery remedies; would not the constitution circumscribe and limit their power in ihis respect? This is the view taken of it by the supreme ■court. 43 In Davis v. Gerhard, 5 Whart. 466, Huston, J., refer- ring to this constitutional provision, says : "This would seem to limit the powers of this and the other courts, in matters of chancery jurisdiction, to the cases which have been or may be specified by the legisla- ture. So this has been understood; and we do not believe that the consent of parties or counsel can justify us in go- ing out of the legislative provision. On any other con- struction of the constitution we might by consent assume the whole power of a court of chancery." The courts did make use of the Statute of Westm. 2 : it is mentioned by Mr. Justice Rogers in Martzell v. Stauf- f er, 3 P. & W. 398, as one of the sources of their power to mold and adapt the common law forms for the adminis- tration of equity; but they regarded the powers which it conferred as being so restrained and controlled by the constitution as to be confined to such molding and adapta- tion. In support of his views, Judge Simonton quotes from Loan Co. v. Elliott, 15 Pa. 224, in which Mr. Justice Gib- son makes the following remarks : "When this court first declared equity to be part of the law of Pennsylvania, it had one of two things to do in order to carry its declaration out — either to assume the powers of a court of chancery, or to strain relief through common law forms, disregarding technical congruity when found to stand in the way of justice. Unfortunate- ly, it attempted a middle course. By the help of fiction, the common law form of the record was measurably pre- served, though often at the expense of right. The relief sometimes stopped short of complete justice, while the record did not indicate that there had been any relief at all. It was impossible to tell from the verdict in an action of covenant by a vendor whether the jury had executed the contract or given damages for a breach of it. 44 "Equitable jurisdiction was gradually assumed, but not always in subordination to technical forms. A plain- tiff has been allowed to declare on a lost bond without a profert; a defendant has been allowed to plead matter of equitable defense specially; and many other departures from common law rule have been sanctioned. We have not yet gone so far as to disregard the form of the writ, count or judgment; but why should we not do so when justice cries out for it, and there is no other way to ap- pease her clamor? or why should we choose to give relief in handcuffs? From the moment the court departed in the least from technical form, there could be no stopping place short of perfect and entire justice." I agree entirely with the logic of what Judge Gibson says, but there are two remarks to be made respecting it. In the first place, the time at which it was settled that equity principles are a part of the law of Pennsylvania, and at which the courts had first to mark out the way in which they would deal with them, was while Pennsylvania was still a colony, long before the first state constitution was adopted. (It is true, the first reported decision in which the opinion states in so many words that equity is a part of the law, appears to be Pollard v. Shaffer, 1 Dall. 210, decided in 1787; but the case of Swift v. Hawkins, which I have already cited, and which was before the su- preme court at April term, 1768, while the court is not re- ported as using these precise words, decided in substance and effect this very proposition, and what is reported to have been said shows that this rule had been recognized and acted on for many years preA'iously.) If, at any time between the abolition of Keith's court and the Revolution, the courts had chosen to "assume the powers of a court of chancery," perhaps there would have been nothing in the way of their doing so; but it seems clear enough that they could not have done this after the constitution of 1776 45 without legislative authority (i. e., of course, beyond the powers which the constitution itself gave them.) And, secondly, what Judge Gibson was really complaining of was. that, having adopted the plan of using the common law forms to administer equity, the judges were too slow in getting away from regard for "technical congruity" when it stood in the way of justice. The decision which he actually made in the case, characterized by him as a step in advance, and to which he was leading up by these remarks, was the sustaining of an action against a surviv- ing promisor and the executors of a deceased co-promisor, jointly — a thing altogether incongruous at common law but imperatively required in this case for the purpose of giving equitable relief. It is very doubtful whether he had in mind, at least for the period subsequent to 1776, anything more, when he was finding fault with the judges, than their timidity and slowness in breaking away from the technicalities of mere form in the common law actions; and it may be that Judge Simonton means no more than this. So far we must all agree with both of them. But if we are to understand what they said as meaning that the courts, after 1776, could have taken over bodily, without legislative sanction, the equitable reme- dies, e. g. injunction, decrees directly ordering the doing of some specific act by the defendant and the enforcement thereof by imprisonment for contempt, decrees for the reformation of deeds, etc., before any litigation regarding their subject-matter has arisen, or other relief quia timet, and the like, then I must say that I cannot help thinking that for the courts to assume these powers, in the face of the constitutional provision that they should have certain chancery powers and such others as future general assem- blies might determine, would be a usurpation of the same kind as the successive usurpations by which some of these powers were originally acquired by the English chan- 46 cellors. If Hie early constitutions had been entirely silent regarding chancery powers, I think it very probable that the history of equity in Pennsylvania would have been very different from what it has been. I have referred to the fact that from time to time equity powers, additional to those mentioned in the con- stitution, were granted by the legislature to the courts. Prior to 1836 such legislation was limited in extent. "Equity jurisdiction," says Mr. Justice Sergeant in Gilder v. Merwin, 6 Whart. 522, "has been dealt out to us at dis- tant intervals and in limited portions." But in 1836 a new departure was made. Even then the legislature proceed- ed rather tentatively and gradually. It first conferred on the courts throughout the state the jurisdiction and powers of a court of chancery as to certain specifically enumer- ated subjects, and granted to the courts in Philadelphia county such powers as to certain additional subjects, and by subsequent acts the jurisdiction in that county was en- larged. Then from time to time the courts of certain other counties were given the same jurisdiction that had been conferred in Philadelphia county. And finally in 1857 the legislation as to Philadelphia county was extend- ed to all the other counties of the state. Some additions to the equity jurisdiction were made by later acts. Mr. Rawle in his lecture on Equity, which was written in 1868, thus sums up the results of all this legislation : "The acts which have given to our present courts equitable jurisdiction, have confined it to certain specifi- cally enumerated heads, and to these alone. These, how- ever, are sufficiently numerous to cover most of the cases in which equitable relief is needed. Thus we have the jurisdiction under the heads of partnership, corporations (other than those of a municipal character), trust, dis- 47 covery, interpleader, injunction, specific performance, fraud, accident, mistake, account, dower, partition, boundary, mortgages of corporations, obtaining evidence beyond the state, and the perpetuation of testimony. It is seldom that a case arises in which a party finds himself without a remedy, where he has a right which is properly cognizable in equity." A few additional powers have been granted since 1868. When the legislature started out to confer this equity jurisdiction in 1836 and following years, it would have had the right, as we have seen, under the constitution as it then was, to set up a separate chancery court. But the course it followed was that marked out by the constitution of 1776; i. e. it simply extended the chancery jurisdiction which that constitution had given to the existing courts. The result is that these courts, being courts of both law and equity, are organized on the general model of the English court of exchequer, in that they have a law side and an equity side. For some purposes the two sides of the court have, we may say, been treated practically as if they were different courts. Thus if a man filed a bill in equity to enforce a demand which ought to have been sued at law, an objec- tion to the bill on this ground has generally been classed as an objection to jurisdiction and therefore has been allowed to be raised at any stage of the case. In some in- stances bills in equity have been dismissed, after a long and expensive hearing on the merits, on the ground that there was an adequate remedy at law, and so far has this practice been carried that the supreme court has even dis- missed bills of its own motion for this reason : see Weaver v. Shenk, 154 Pa. 206; though this has been done only in cases where the want of jurisdiction in equity was regard- ed as very plain : Edgett v. Douglass, 144 Pa. 95; and where 48 there was room for doubt about it, an objection to the jur- isdiction, not made in the preliminary stages of the case but interposed for the first time after the parties had vol- untarily proceeded to a hearing on the merits, has not been allowed to prevail: Adams's Appeal, 113 Pa. 449; Fidelity Co. v. Weitzel, 152 Pa. 498; cases cited in Penna. R. R. Co. v. Bogert, 209 Pa. 589, at page 602. Where the jurisdiction over actions at law, and the jurisdiction in equity, are vested in separate courts, there is a solid and substantial reason for treating the point as raising a jurisdictional question; but the suggestion has often been made that where the same court would have jurisdiction, upon its law side, of the same demand, there is no reason, in justice and common sense, why, when such a question is raised, the suit should not be allowed to be turned into an action at law by amendment, and proceeded with as such, or why a failure to make this objection before going into the merits of the case should not be treated as a waiver oi it; and indeed some cases have laid down such a doctrine: Adams v. Beach, 1 Phila. 99; Sunbury, etc., R. R. Co. v. Cooper, 33 Pa. 278; Penna. R. R. Co. v. Bogert, supra. In line with this idea is a recent reform effected by the act of June 7, 1907, P. L. 440. This act requires that the question of jurisdiction in equity shall be raised, if at all, by the pleadings, and if this is not done the right of jury trial, is to be treated as waived, and the case shall be disposed of with the same effect (where it is of such a nature that the suit should have been at law) as a case tried without a jury under the act of 1874; and it requires also that, if this objection is made, the question shall be determined in limine, and makes provision, in case the objection is sustained, for the certification of the cause to the law side of the court: Miles Land Co. v. Coal Co., 231 Pa. 155; Musselman v. Myers, 240 Pa. 5; Nissley v. Drace, 242 Pa. 105. 49 After the legislation of 1836, a question arose as to what its effect was upon the equitable jurisdiction which had previously been exercised under common law forms, and it was held that the conferring of direct chancery powers upon the courts did not take away their power to, administer equity in the manner formerly in use: Aycinena v. Peries, 6 W. & S. 243; Biddle v. Moore, 3 Pa. 161. The consequence of this ruling has been that some of the methods pursued under common law forms as sub- stitutes for a bill in equity, which had been found extreme- ly convenient, such as the setting up of equitable defenses, the reformation of writings in the course of a trial, the opening of confessed judgments, etc., have been retained in common use; while those that had been found to be clumsy methods of attaining what can be more efficiently accomplished when done directly by a bill in equity, have generally fallen into disuse. We have, therefore, at the present time, a mixed system in Pennsylvania : part of our equity administration is under chancery forms, and part of it is, and doubtless will continue to be, under common law forms.. Mention should be made of a strange anomaly in this connection. Under our system of government we have in operation here, side by side, both state courts and courts of the United States. The latter have jurisdiction of suits between citizens of different states. If the plaintiff re- sides out of Pennsylvania, he may commence his suit in the federal court. If a citizen of this state should bring, in a state court, a suit against a citizen of another state, the defendant may of right demand that the action be re- moved to the United States court for trial. The contro- versy, in a case that gets into a court of the United States by reason of diversity of citizenship, may be entirely over rights arising, or alleged to arise, under the laws of the state, and in determining it the federal court may be ad- 50 ministering the state law. For example, in an ejectment the federal court may have to determine whether under the laws of Pennsylvania the plaintiff or the defendant has the better title. Partly in view of this situation, congress has provided for the adoption by the federal courts, in suits at law, of the procedure and practice of the states in which they sit. And yet these courts decline to follow our state courts in importing the principles of equity into common law actions. It has been said in numerous cases that the provision of the federal constitution which vests in the national courts jurisdiction in (1) cases at law, (2) cases in equity, and (3) admiralty and maritime cases, so distinguishes between law and equity as to require that legaJ and equitable remedies shall be separately pursued, and not amalgamated or blended into one system of remedies: Bates on Fed. Procedure, (Law,) sec. 831 et. seq. The federal courts are, like the courts of common pleas, courts of both law and equity, having their law side and their equity side, but equitable relief will not be granted in a case heard upon the law side, and the party seeking such relief must resort to a bill in equity to get it. Equitable defenses cannot be interposed in suits at law: Bates, Fed. Proc. sec. 847. If an action be brought upon a written contract, the defendant is not allowed, on the trial of it, to show that by accident or mistake the writing was made to say something different from what it was intended to say; he must proceed by bill in equity to have it reformed, and if he does not do so, and the case at law comes up for trial without a reformation having thus been procured, the contract will be, for the purposes of the trial, exactly what the writ- ing says. So, an equitable title cannot be interposed in the United States courts as a defense to an ejectment: Id. sec. 876, (though it is held that an equitable estoppel may be proved at law as a defense: Id. 881;) nor can eject- 51 ment be maintained in those courts on an equitable title in the plaintiff — he must have a legal title: Fenn v. Holme, 21 Howard 481. (They hold, however, that under the land system of Pennsylvania a warrant and survey, and the payment of the purchase money to the commonwealth, vest in the warrantee a legal estate and therefore they will sustain an ejectment notwithstanding a patent may not have been issued: Bates, Fed. Proc. sec 872.) One of the objects aimed at in this paper has been to impress upon the younger members of this association the importance and practical value of their familiarizing themselves with the origin and historical development of equity as a branch of our law. I have sought to do this, not by citing the abstract and general remarks of our legal writers as to the impossibility of perfectly or adequately comprehending the law as it is, without some knowledge of the historical process by which it came to be the law, and not merely by calling attention to the fact — which is shown by some of the cases I have referred to — that the courts, when seeking for the true ratio decidendi in de- termining questions brought before them, are constantly recurring to legal history, but mainly by giving some con- crete illustrations of the actual practical use and applica- tion of historical knowledge. It will be obvious that much of the history to which I have referred — e. g. the story of the struggle between the courts in England over their conflicting claims of jurisdic- tion — is of practical value as assisting the student or the lawyer to gain a clearer comprehension of the respective limits and functions of law and equity. And I think it will be equally plain that our mixed Pennsylvania system cannot be readily and adequately understood without a pretty good knowledge of the causes and course of its de- 52 velopment. But I want to go a little further, and refer to two or three matters which seem to me to have some im- portance in a practical aspect. In consequence of the particular course which Penn- sylvania's legal history has taken with respect to the ac- quisition by her courts of equity jurisdiction, there are certain proceedings in the courts which are essentially exercises of some branch of equity jurisdiction, but whose equitable character is obscured, or likely to be forgotten", by reason of the form and manner in which the jurisdic- tion has been granted by statute. Consider, for example, the subject of voluntary assignments for the benefit of creditors. In the uncertainty and confusion which followed in the wake of the decision, in Potts v. Smith Mfg. Co., 25 Super. Ct. 206, that the federal bankrupt law had the ef- fect of suspending the operation of our Insolvency and Assignment Act of 1901, lawyers were considerably at sea regarding the status of voluntary assignments. The act of 1901 undertook to combine in one enactment, and weld together, two things: (1) an insolvency law amounting to a state bankruptcy system, and (2) a system for the regu- lation of voluntary assignments; and it specifically repeal- ed all prior statutes on the subject of such assignments. A number of questions arose, some of which, it is to be re- gretted, have not yet been cleared up by a square decision of the supreme court. Did the federal bankrupt law cause the suspension of all the regulations contained in the act of 1901— not only the bankruptcy features thereof, but also the provisions which merely regulated the ad- ministration of assigned estates, because the two were so interwoven as to be inseparable? If so, what was the effect of the repealing clause? Was that to be regarded as suspended also in its operation, on the ground that the legislature did not intend to wipe out our existing system 53 of voluntary assignments without putting something else in its place; or, was the absolute declaration that all those acts "be and the same are hereby repealed" to be given effect to, on the ground that there is nothing in the federal constitution and laws to prevent a state from repealing any of its existing laws if it should see fit, and in this case an intent to effect a present repeal was expressly de- clared? Some lawyers, not fully acquainted with or having forgotten the history of assignments, observing that the procedure with reference to them had been regulated by statute, and perhaps misled to some extent by the opening words of the third section of the act of 1901, jumped to the conclusion that assignments themselves were the creatures of statute, and therefore, if all of our prior statute law on the subject were wiped out by the repealing section of the act of 1901, and all regulations on the subject made by that act itself were suspended and therefore presently inopera- tive, no valid deed of assignment could be made at all. This position was actually taken, and was insisted upon at the argument before the superior court, in the case of Mil- ler v. Jackson, 34 Super. Ct. 31. But assignments for the benefit of creditors were not introduced by statute, and when sec. 3 of the act of 1901 says that "any person . . . may make an assignment," etc., this is merely declaratory of the unwritten law. An assignment is an exercise of the owner's jus disponendi over his property. As its owner he has full power to devote it to the discharge of the debts due his creditors, and it is by virtue of his general do- minion over it that he has power to convey it to a trustee for their benefit. The trustee takes title independently of any statute, and (if there were no statute on the subject) a court of chancery, by virtue of its general jurisdiction over trusts, could take charge of and supervise the execu- tion of the trust created by such a deed, doing whatever 54 might be necessary to cause the trustee to fulfil and per- form the trusts therein specified. In 1818, although at that time unwilling to grant chancery powers generally, the legislature of Pennsylvania deemed it necessary, in view of the inadequacy of common law forms for deal- ing with such trusts for the benefit of creditors, to confer upon the courts powers required for this purpose, and did so by the act of March 24, 1818, 7 Sm. & R. 131, and other statutes which followed this. It also, in order to give to the procedure in relation to these trusts the simple form which it desired, prescribed, in the acts which it passed, just what this form should be. Hence it has come about that we have had in this state a statutory code of procedure in relation to assigned estates, instead of a form of procedure borrowed from the English court of chancery as doubtless would have been the case if our courts had all along been invested with jurisdiction to make use of all the chancery powers and remedies. But what the court of common pleas does in the way of en- forcing and controlling the execution of the trust created by a deed of assignment is essentially an exercise of a part of the equity jurisdiction over trusts, notwithstanding the fact that the form of procedure has been prescribed by statute. If every act of assembly specifically referring to assignments were wiped out of existence to-day, assign- ments would still be valid, and by virtue of its general equity jurisdiction over trusts and trustees the court of common pleas could oversee and control the administra- tion of the trusts created by such instruments. From the fact that trusts created by voluntary assign- ments are essentially subjects of equity jurisdiction, I would venture to draw a practical conclusion. You know that in almost every branch of the law you occasionally, in the course of your practice, will encounter a set of circum- stances in which you are unable to discover a prescribed 55 remedy exactly meeting the needs of the case. Some day, in connection with the administration of the estate of a voluntary assignor, you may find a situation for which no provision has been made in the statutes on the subject. In such a case I would advise that you turn to the books of equity jurisprudence and see if you cannot find authority for a chancellor's extending relief in an analogous case by virtue of his inherent equity jurisdiction; for while the courts, in the control and administration of these trusts, cannot, where a particular course of procedure is pre- scribed by statute, disregard it and act as if the statute had never been passed, I do not see why they may not, as courts of equity, draw from the fountain of chancery jurisprudence a fitting remedy to meet a case for which the statutory code of procedure may have made no pro- vision at all, in a matter which historically has always been within the scope of a chancellor's jurisdiction. A similar remark may be made with reference to the administration of the estates of lunatics. When, in a common law suit that involves no ques- tion of equitable right, it becomes necessary to procure the testimony of witnesses outside the state, the court in issuing a commission for the taking of their depositions is exercising a chancery power. The original method of ob- taining testimony for use in such cases was to apply to the chancellor for his aid. The right to act as a chancellor would have done in this matter was, as we have seen, one of the chancery powers which the constitution of 1776 vested in the courts. This being the source of the power, it is held that the court, whenever it issues such a commis- sion, is acting as a court of chancery, and therefore the testimony is to be taken in accordance with the chancery practice and the Equity Rules must be complied with: Hollister v. Hollister, 6 Pa. 449, 451; Patterson v. Green- land, 37 Pa. 510; Smith v. Cokefair, 1 Co. Ct. 48; though it 56 has also been held that an objection to a deposition, on the ground that the interrogatories do not comply with the Equity Rules, may be waived by failure to except formally thereto : Davis v. Shoe Co., 138 Pa. 73, 80-1. Reference has already been made to the fact that when an equitable, right is advanced, whether by way of claim or defense, the judge sits as a chancellor, and the equity must be established by the same kind and measure of proof as in a regular chancery suit. It is therefore im- portant that the lawyer should be prepared and able to recognize equity cases that are concealed under common law forms; and the way to become able to do this readily is to familiarize oneself with legal history of the kind that this address has been devoted to. For this purpose I would particularly recommend a study of the essay of Mr. Laussatt, and the later lecture by Mr. Rawle, to both of which I have previously referred, and which are mines of information on the subject of equity in Pennsylvania. In 1830 Stephen Girard, a merchant of Philadelphia, made his will, by which he devised and bequeathed a large estate to the city in trust for certain charitable pur- poses. In a suit in equity, brought in the United States circuit court for the eastern district of Pennsylvania, and appealed from it to the supreme court of the United States, the heirs of Mr. Girard attacked the validity of this trust, on the ground inter alia that the objects of the char- ity were too vague and indefinite. It was argued that the Statute of 43 Eliz. relating to charitable uses had been de- clared not to be in force in Pennsylvania, and hence there was no basis for sustaining and executing a trust for charitable uses so vague as those specified in this will. The plaintiffs' position was that as such a trust could not be carried out, therefore the property must go to the heirs at law. But, shortly before, the English Record Commis- sioners had gathered up, arranged and published certain 57 musty records, slored away in the tower of London, which showed that for a long period anterior to the Statute of 43 Eliz. the court of chancery had recognized, sustained and carried out trusts for charitable uses altogether as vague and indefinite as those of the Girard will. Mr. Bin- ney and Mr, Sergeant, for the defendants, made a power- ful use of these old records, and in deciding the case in their favor Mr. Justice Story said that these records had thrown a strong light upon the ma Iter, clearing up all the doubts as to the course and nature of the jurisdiction of equity over charitable trusts which had arisen out of the conflicting opinions of various eminent judges upon the question, and establishing in a most satisfactory and con- clusive manner a jurisdiction over such charities entirely independent of the Statute of Elizabeth, in the exercise of which it had been settled that trusts such as these should be sustained, and that chancery would do what was neces- sary to render their administration effectual; and hence, as the established equity principles were in force in Penn- sylvania, the Girard trust was valid: Vidal v. Girard's Executors, 2 How. 127 (1844). The practical results which followed in this case from delving into the ancient history of chancery need no com- ment. Some reference should be made to the orphans court as a court of equity. Among the statutes defining its jur- isdiction are some which make express mention of equity. The acts of February 24, 1834, P. L. 73, sections 15 and 16, and April 28, 1899, P. L. 157, in authorizing decrees for the specific enforcement of decedents' contracts of sale, pro- vide that such decrees may be made if the facts of the case "be sufficient in equity," and also contain legislative recognitions of the doctrine of equitable exceptions to the 58 Statute of Frauds; 31 the act of October 13, 1840, P. L. (1841) 1, authorizes the entertaining of petitions for the review of final decrees confirming accounts of executors, etc., and the granting thereon of "such relief as equity and justice may require;" the act of April 1, 1863, P. L. 205, confers on this court the "jurisdiction and powers of a court of chancery" as to the perpetuation of testimony in cases of lost or destroyed records of the court; and the act of May 19, 1874, P. L. 206, sec. 7, empowers it to prevent, by order in the nature of injunction, acts contrary to law or equity, prejudicial to property over which it has juris- diction. But many of the enactments by which its juris- diction is defined do not make any express reference to equity, and they prescribe the course of procedure to be pursued. Historically, however, a very large part of the jurisdiction thereby conferred on this court is a branch of that which belonged to the ancient chancellors, and ac- cordingly such enactments, even though not stating on their face an intent to give equity jurisdiction, and al- though prescribing a statutory code of procedure, are in their essence and effect a grant of a part of the jurisdic- tion of a chancellor. Our supreme court has often said that the orphans court, within the limits of its jurisdiction, is a court of equity : Com. v. Judges, 4 Pa. 301 ; Lewis v. Lewis, 13 Pa. 79; Shollenberger's Appeal, 21 Pa. 337, 341; Culbertson's Appeal 76 Pa. 145, 148; though, as its equity jurisdiction is circumscribed by and limited to the par- ticular sphere which has been assigned to it, it cannot fol- low the practice observed by general courts of equity un- der which, to make an end of the whole controversy, they will after obtaining jurisdiction of a cause on some equit- 11 Under these acts of 1834 and 1899, it has been held that the juris- diction for the specific enforcement of contracts of decedents for the sale of real estate is in the orphans court exclusively: Gable v. White- .side, 242 Pa. 188. 59 able ground go on and give relief as to a matter which by itself would not bring the case, within the jurisdiction nor be a subject for equitable remedy: Ake's Appeal, 74 Pa. 116; nor can it entertain a bill of discovery: Brinker v. Brinker, 7 Pa. 53; nor a bill praying for a declaratory de- cree 12 to settle all the rights of parties under a will : Willard's Appeal, 65 Pa. 265; nor has it power to appoint a trustee for a weak-minded person to represent him in a partition: Richards v. Rote, 68 Pa. 248. See further Snyder's Appeal, 36 Pa. 166; Weyand v. Weller, 39 Pa. 443; Dundas's Estate, 8 Phila. 598; Neill's Estate, 18 Phila. 163. Mr. Justice Sharswood's remark in Willard's Ap- peal, supra, that "when it is said, as it has often been said, that the orphans' court is a court of equity, all that is meant is that in the exercise of its limited jurisdiction, conferred entirely by statute, it applies the rules and prin- ciples of equity," seems to amount to no more than what has been stated above, viz. : that this court is not a general equity court, but is such only within a limited sphere; for a court whose function is to apply "the rules and prin- ciples of equity," is so far essentially a court of equity. 02 In Morton's Estate, 201 Pa. 269, which holds that the orphans court has no jurisdiction of a petition by a trustee asking for advice and instructions as to whether he shall recognize and treat certain per- sons as interested in the income of the trust estate, (there being no fund before the court at the time for distribution, nor any lis mota raised by a proceeding properly instituted by any party interested,) Justice Mitchell says that the advisory jurisdiction of chancery has never been adopted or conferred in Pennsylvania, even in the case of the general equity courts. See in this connection the recent case of Hess's Estate, 22 Dist. 1028, in which the orphans court of Philadelphia county held that, while not having jurisdiction to advise executors and trustees in the discharge of their duties, the court could, in exceptional cases, relieve them from the situation created by testamentary instructions which it was impossible to comply with, and accordingly, the will having directed that certain shares of stock should not be sold for less than a specified isum, which it proved impossible to obtain, an order was made permitting a sale to he made for a less price. 60 And we may characterize in the same way Justice Trun- key's statement in Miskimins' Appeal, 114 Pa. 530, that this court "is often, though not properly, named a court of equity," for he adds that it, "upon the principles of equity, may dispose of every question that arises in the determination of matters within its jurisdiction." In fact, the judges who have said that the orphans court is a court of equity, and those who have said that it is not properly so termed, seem to mean the same thing; they are using the phrase "court of equity" in somewhat differ- ent senses, the latter employing it in the sense of a court created, like the English chancery, for the purpose of ad- ministering equity as a system, while the former mean by it simply a court which is authorized to make use of and enforce the principles and rules of equity so far as appli- cable to the subject-matters within its jurisdiction, but acts in other respects as a court of law. Both mean that within the sphere of its jurisdiction this court (as Judge Arnold expresses it in Fidelity Ins. Co. v. Gazzam, 2 Dist. 569) "has the powers of a court of equity." "Our orphans court, a creature of the constitution," says Mr. Justice Woodward in Shollenberger's Appeal, 21 Pa. 337, at page 340, "is essentially a court of chancery. Its powers, originally small, have by gradual accretion grown into great magnitude and importance, and, that they may be clearly understood, they should be conform- ed to some model, and regulated by known and establish- ed principles. The chancery jurisdiction is the model, and contains the principles most congenial to this institu- tion, and the legislature have in very many instances sanc- tioned and enjoined the application of these principles to proceedings in the orphans court. The judicial mind in- clines in the same direction, and for my own part I think it would be well if the practice in this most important ibranch of our judiciary were, in all possible points, uni- 61 - \ formly fashioned after precedents in chancery, batin^i. only their unnecessary circumlocution and verboseness." From the doctrine that the orphans court is a court of equity practical conclusions have been drawn in some cases as to what it may do in certain circumstances; see, for example, Lewis v. Lewis, 13 Pa. 79; Briggs's Appeal, 5 Watts 91; Woodward's Appeal, 38 Pa. 322; Barklay's Estate, 10 Pa. 387, 390; Shollenberger's Appeal, 21 Pa. 337. 1 must close. In this sketch I have very imperfectly outlined the history of equity in England and Pennsyl- vania. I hope I have said enough lo suggest that a sys- tematic study of the historical sources and development of tne law, including equity, has more in it for the student and the lawyer than the mere gratification of antiquarian curiosity, and will yield a return of real and substantial practical benefits, And I hope also that I have incidental- ly shown that the courts of Pennsylvania, in the exercise of their functions, have ever been guided by the maxim to which Mr. Justice Sharswood gave expression in Diese v. Fackler, 58 Pa. 109, 112, that "the reason of the law is the life of the law, ,s and have been accustomed to keep in view the real end and aim of law and courts, which is the attainment of as perfect justice between man and man as it is possible for imperfect and erring human instrumen- talities to administer. INDEX Advisory jurisdiction of equity; not conferred in Pennsylvania, 59 n. Amalgamation of law and equity, 9, 36, 37. Assignments for benefit of creditors; statutory jurisdiction, 52; relation of to equity, 53-55. Assignments of choses in action, equitable, 27; rights of assignee, 27, 28. Assignability of chose in action, 26, 27. Assumpsit; enforcement of trust by means of, 25. Bacon, Sir Francis; head of commission on chancery jurisdiction, 14. Binney, Horace; eulogy by of C. J. Tilghman, 38. Chancellors; in England, 10, 41 n. ; in Pennsylvania, 32, 35, 36, 56. Chancery courts in England, 7 n., 10, 11 ; conflicts of with courts of law, 11-15; separate chancery court in Pennsylvania, 18-20. Chancery powers; limited by Pennsylvania constitutions, 41-43; legis- lation conferring, 31, 39, 46, 47. Charitable trusts; statute of Elizabeth concerning, 56; equity jurisdic- tion over, 56, 57. Chose in action; assignability of, 26, 27. Clear, precise and indubitable proof; when required, 36, 56. Coke, Sir Edward; controversy of with chancery courts, 12-15. Commissions to take testimony an exercise of chancery jurisdiction, 55. Common law forms; use of to administer equity, 21 et seq., 52. Constitutional provisions regarding equity jurisdiction, 41-43, 45, 46. Conditional damages as means of enforcing an equity, 29, 30. Conditional verdicts, 28-30. Courts of equity; in England, 7 n., 10, 11; in Pennsylvania, 17, 18. Courts of law and equity; conflicts between, 11-15. Cy-pres doctrine in Pennsylvania, 16 n. Damages, conditional; used to enforce equities, 29, 30. Depositions; obtaining of is a chancery power, 55. Ejectment; use of to enforce equities, 28, 29. Elizabeth, Queen; interference of with courts, 12-14; statute of on charitable uses, 56. Ellesmere, Lord Chancellor; controversies with law courts, 13-15. 63 Opening judgments, 32-35. Orphans court as a court of equity, 57-61; jurisdiction over trustees, 26 n. Penn, William; grant of Pennsylvania to, 16;. charter of privileges granted by, 19. English chancery court, 7 n., 10, 11; conflicts with courts of law, 11-15. Equitable assignments, 26, 27; suits by assignees, 27, 28. Equitable claims as basis of common-law actions, 24, 51. Equitable defenses in actions at law, 22, 50. Equity; different senses of the term, 5-8; origin of, 7, 9-11; scope of the system, 7, 8, 11; separation of from law, 7, 9-11; final amalga- mation with law in England and Pennsylvania, 9, 36, 37; part of the law in Pennsylvania, 35, 36, 42-44; history in England, 9-15; history in Pennsylvania, 16 et seq. ; how dealt with by Pennsyl- vania courts, 21 et seq., 35, 36, 39-46, 49, 52. Equity jurisdiction; legislation concerning, 31, 39, 46, 47, 54; jurisdic- tion as between law and equity sides of same court, 47, 48. Equity principles; distinguished from chancery powers, 42; in force in Pennsylvania, 16, 20, 21, 44; exceptions, 16 n.; administration of in Pennsylvania, 21 et seq. Failure of consideration an equitable defense, 23 ; distinguished from want of consideration, id. Federal courts; separation of law and equity in, 49-51. Girard, Stephen; trusts created by the will of, 56, 57. Gordon, Patrick; controversy with assembly over chancery court, 19, 20. Grotius; his definition of equity, 5. Heal, John; indictment of under statute of Praemunire, 12. History; legal value of, 51. Insolvency and Assignment Act of 1901, 52. Judge and jury; respective functions, 32, 35, 38, 56. Judgments; opening of in Pennsylvania, 32-35; relief against in equity, 12-15. Jurisdiction in equity; constitutional provisions, 41-43, 45, 46; legisla- tion granting, 31, 39, 46, 47, 54; jurisdiction as between law and equity sides of court, 47, 48. Keith's chancery court; history of, 18-20; records of, 20. Laussatt, Anthony, Jr.; essay of on Equity, 30, 41 n., 56. Lunatics; custody of by the chancellor, 41 n.; equitable administration of their estates, 41, 55. Measure of proof requisite to establish equitable rights, 36, 56. 64 Pennsylvania; charter of, 16; source of its law, 15, 16, provincial courts, 16, 17; provincial court laws, 17, 18; attempts to establish chan- cery jurisdiction, 17-20; equity a part of the law, 20, 21; equity principles in force in, 16, 20, 21, 42; exceptions to this, 16 n.; doctrine of tacking not recognized, id. ; cy-pres doctrine in, id. ; use of common-law forms to administer equity, 21 ; molding of equity system, 21, 37 et seq. ; imperfections of system as molded by the courts, 39; a leader in the amalgamation of law and equity, 36-39; mixed system of equity administration in use, 49, 52. Praemunire, statute of, 12, 14. Principles of equity in force in Pennsylvania, 16, 20, 21, 42; exceptions, 16 n.; equity principles and chancery powers distinguished, 42. Powers of chancery; limited by constitutions of Pennsylvania, 41-43. Rawle, William Henry; lecture on Equity, 17, 20, 56. Reformation of writings, 31, 36 n., 50. Remedies, chancery; constitutional provisions concerning, 41-43; 45, 46; administration under common-law forms, 21 et seq., 49, 52. Replevin; specific performance by means of, 30. Roman law, 9, 11. Seal supplies want of consideration, 22, 23. Simonton, John W. ; address on Pennsylvania Jurisprudence, 37, 39. Specific performance, 28-30, 57, 58 n. Tacking not recognized in Pennsylvania, 16 n. Throckmorton v. Finch, case of, 13, 14. Tilghman, William; work of in developing Pennsylvania equity juris- prudence, 38, 39. Trusts; administration of under common-law forms, 24-26, 30, 31; grants of chancery jurisdiction over, 26 n., 31 n., 46. United States courts; separation of law and equity in, 49-51. Voluntary assignments; statutory jurisdiction, 52; relation of to equity, 53-55. Westminster 2, statute of, 39, 40, 42, 43.