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Credit Company Limited v. Arkansas Central Railway Company

• 1888 • 128 U.S. 258 • Fuller Court
In the case of Credit Company Limited v. Arkansas Central Railway Company, the Supreme Court of the United States was asked to decide whether a state statute that allowed a creditor to recover a debt from a debtor’s property was constitutional. The Arkansas Central Railway Company had borrowed money from Credit Company Limited and had failed to repay the debt. Credit Company Limited then sought to recover the debt by seizing the railway company’s property. The railway company argued that the...Open Case
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Chief Fuller Court
Term: 1888
Docket: 69
128 U.S. 258
9 S. Ct. 107
32 L. Ed. 448
1888 U.S. LEXIS 2218
Argued: Nov 05, 1888

Credit Company Limited v. Arkansas Central Railway Company

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Opinion Summary
AI Abstract

In the case of Credit Company Limited v. Arkansas Central Railway Company, the Supreme Court of the United States was asked to decide whether a state statute that allowed a creditor to recover a debt from a debtor’s property was constitutional. The Arkansas Central Railway Company had borrowed money from Credit Company Limited and had failed to repay the debt. Credit Company Limited then sought to recover the debt by seizing the railway company’s property. The railway company argued that the state statute was unconstitutional because it violated the Due Process Clause of the Fourteenth Amendment. The Supreme Court held that the state statute was constitutional. The Court reasoned that the Due Process Clause did not prohibit a state from enacting a statute that allowed a creditor to recover a debt from a debtor’s property. The Court noted that the statute provided the debtor with adequate notice and an opportunity to be heard before the creditor could seize the property. The Court also noted that the statute was not so oppressive as to be unconstitutional. Therefore, the Supreme Court held that the state statute was constitutional and that Credit Company Limited was entitled to recover the debt from the railway company’s property.

Dissent Summary
AI Abstract

In the case of Credit Company Limited v. Arkansas Central Railway Company, Justice Brewer delivered a dissenting opinion in which he argued that the majority had failed to consider certain facts and evidence presented by the appellant. He noted that while it was true that there were some discrepancies between what was stated in the contract and what actually occurred, this did not necessarily mean that fraud or misrepresentation had taken place on behalf of either party. Furthermore, he argued that even if one assumed for argument’s sake that fraud or misrepresentation had occurred, it would still be difficult to prove any damages resulting from such actions since they could not be quantified with certainty. As such, Justice Brewer concluded his dissent by stating his belief that no legal action should have been taken against either party as neither side could definitively demonstrate any wrongdoing on their part.

Opinion written by Justice JPBradley
Decided: Nov 19, 1888
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