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NEW PROVIDENCE V. HALSEY, 117 U. S. 336 (1886)

U.S. Supreme Court

New Providence v. Halsey, 117 U.S. 336 (1886)

New Providence v. Halsey

Argued March 8, 1886

Decided March 22, 1886

117 U.S. 336


In an action at law in a circuit court of the United States against a township to recover on bonds issued by the township, the plaintiff is not entitled to recover on bonds transferred to him by citizens of the state in which the town is situated for the mere purpose of being sued in a court of the United States. Bernard Township v. Stebbins, 109 U. S. 341, affirmed and applied.

A municipal bond in the ordinary form is a promissory note negotiable by the law merchant within the meaning of that term in the Act of March 3, 1875.

Ackley School District v. Hall, 113 U. S. 135, affirmed and applied.

The issue of township bonds by commissioners under the Act of the Legislature of New Jersey of April 9, 1868, "to authorize certain towns in the counties of Somerset, Morris, Essex and Union to issue bonds and take stock in the Passaic Valley and Peapack Railroad Company" was conclusive as to the amount that could be put out under the statute and estopped the township from setting up against a bona fide holder that the issue was in excess of the amount authorized.

Page 117 U. S. 337

In order to avail to stop costs, an offer to submit to entry of judgment should be made in open court, and the court be asked to act thereon after due notice to the other party.

The case is stated in the opinion of the Court.

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