Impairing the Obligation of Contracts

law, contract, id, mass, laws, barb, constitution, pet, debt and insolvent

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5. In relation to marriage and divorce, upon which it is now settled that this clause may act. A legislature, it would seem, may pass a law for divorces, limiting its effect to marriages which shall take place after the law is enacted, or limiting its effect as to existing marriages to transactions which occur subsequent to its passage. 10 N. H. 380 ; 3 Johns. Cas. N. Y. 73. But any law creating new grounds or new facilities tor the divorce of parties married before the law was passed, would impair the obligation of the marriage contract, and therefore be void.

It is said, however, that divorce may be granted for what is absolutely a breach of the marriage contract; for when •the contract is broken no obligation remains to be im paired. 4 Wheat. 518. See 7 Dan. Ky. 184, where it is held that marriage is so much more than a mere contract as not to be within the scope of this clause of the constitution. 5 Barb. N. Y. 474 ; 2 N. II. 268.

6. In relation to bankruptcy and insol vency. The constitution, art. 1, 8, cl. 4, gives to congress the power of making a bankrupt law. But it seems to be settled that this power is not exclusive ; because the several states may also make distinct bankrupt laws, —though they have generally been called insolvency laws,—which will only be super seded when congress chooses to exercise its power by passing a bankruptcy law. 4 Wheat. 122; 12 sd. 213 ; 13 Mass. 1. See 3 Wash. C. C. 313.

Exemption from arrest affects only remedy; an exemption from attachment of the pro perty, or a subjection of it to a stay law or appraisement law, impairs the obligation of the contract. Such a statute can only be en forced as to contracts made subsequently to the law. 1 How. 311; 2 id. 608 ; 8 Wheat. 1, 75.

It is admitted that a state may make partial exemptions of property, as of furniture, food, apparel, or even a homestead. 1 Den. N. Y. 128 ; 3 id. 594 ; 1 N. Y. 129 ; 6 Barb. N. Y. 327 ; 2 Dougl. Mich. 38 ; 4 Watts & S. Penn. 218 ; 4 Miss. 50 ; 17 Miss. 310.

Nothing in the constitution prevents a state from passing a valid law to divest rights which have been vested by law in an indi vidual, because this was not a contract, 3 Dall. 386 ; 2 Pet. 412 ; 8 id. 89; 5 Barb. N. Y. 48 ; 9 Gill, Md. 299 ; 1 Md. Ch. Dec. 66, unless such law operates as a direct grant.

Insolvent laws are valid which are in the nature of a cessio bonorurn, leaving the debt still existing, or which provide for the discharge of the debt, but refer only to subsequent contracts, or which merely mo dify or affect the remedy, as by exempting the person from arrest, but still leave means of enforcing. But a law exempting the person from arrest and the goods from attachment on mesne process or execution would be void, as against the constitution of the United States. 6 Pet. 348 ; 6 How. 328 ; 16. Johns. N. Y. 233 ; 7 Johns. Ch. N. Y. 297 ; 6 Pick. Mass. 440 ; 9 Conn. 314 ; 1 Ohio, 236 ; 9 Barb. N. Y. 382 ; 4 Gilm. Va. 221 ; 13 B. Monr. Ky. 285. The state insolvent laws in practice operate in favor of the citizens of the particular state only, as to other citizens of the same state, and not against citizens of other states, un less they have assented to the relief or dis charge of the debtor expressly, or by some equivalent act, as by becoming a party to the process against him under the law, taking a dividend, and the like. 1 Gall. C. C. 371 ; 3

Mae. C. C. 88 ; 5 Mass. 509 ; 10 id. 337 ; 13 id. 18, 19 ; 2 Blackf. Ind. 366 ; 7 Cush. Mass. 15 ; 3 Pet. 41.

Some states refuse to aid a citizen of an other state in enforcing a debt against a citi zen of their own state, when the debt was discharged by their insolvent law. In such cases the creditor must resort to the court of the United States within the state. 1 Gall. C. C. 168 ; 8 Pick. Mass. 194 ; 2 Blackf. lnd. 394; 1 Baldw. C. C. 296 ; 9 N. H. 478. See INSOLVENT LAWS.

S. The law of place acts upon a contract, and governs its construction, validity, and obligation, but constitutes no part of it. The law explains the stipulations of parties, but never supersedes or varies them.

This is very different from supposing that every law applicable to the subject-matter, as statutes of limitation and insolvency, enters into and becomes a part of the contract. This can neither be drawn from the terms of the contract, nor presumed to be contemplated by the parties ex contractu.

There is a broad distinction taken as to the obligation of a contract and the remedy upon it. The abolition of all remedies by a law operating in prcesenti is, of course, an impair ing of the obligation of the contract. But it is admitted that the legislature may vary the nature and extent of remedies, as well as the times and modes in which these remedies may be pursued, and bar suits not brought within such times as may be prescribed. A reason able time within which rights are to be en forced must be given by laws which bar cer tain suits. 3 Pet. 290 : 1 How. 311; 2 id. 608 ; 2 Gall. C. C. 141 ; 8 Mass. 430 ; 1 Blackf. Ind. 36 ; 2 Me. 293 ; 14 id. 344 ; 7 Ga. 163 ; 21 Miss. 395 ; 1 Hill, So. C. 328 ; 7 B. Monr. Ky. 162 ; 9 Barb. N. Y. 489.

9. The meaning of obligation is important with regard to the distinction taken between the laws existing at the time the contract is entered into and those which are enacted afterwards. The former are said to have been in contemplation of the parties, and so far entered into their contract. The latter are said to impair, provided they affect the con tract at all. See cases supra.

The weight of authority is that this clause of the constitution, like that which relates to the regulation of commerce by the congress of the United States, does not limit the power of a state to enact general police regulations for the preservation of public health and mo rale. 8 How. 163 ; 1 Ohio St. 15 ; 12 Pick.

Mass.. 194 : 7 Cow. N. Y. 349, 585 ; 24 Am. Jur. 279, 280. See 8 Mo. 607, 697 ; 9 id. 389; 3 Harr. Del. 442 ; 4 id. 427 ; 5 How. 504; 7 id. 283 ; 11 Pet. 102. See, generally, Story, Const. N 1368-1391 ; Sergeant, Const. Law, 356 ; Rawle, Const. ; Dane, Abr. Index; 10 Am. Jur. 273-297 ; 8 Watts & S. Penn. 219 2 Penn. St. 22; 16 Miss. 9; 3 Rich. So.

C. 389 ; 8 Wheat. 1 ; 8 Ark. 150 ; 4 Fla. 23; 4 La. Ann. 94 ; 2 Dougl. Mich. 197 ; 10 N.

Y. 281 ; • 2 Gray, Mass. 43 • 3 id. 551 ; 3 Mart. La. 588 ; 4 id. 292 ; 26111e. 191 ; 2 Par sons,,Contr. 509.

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