Joseph McKenna

“ A motion is made to dismiss the writ of error, on the grounds (1) that the assignment of errors in the supreme court of the state lacked certainty of specification, as it only stated that the refusal by the trial court to give proper and full credit to the judgment of the circuit court 'thereby denied to the defendant [the Chemical Company] a right arising under the authority of the United States.' This, it is contended, is not sufficient to raise a Federal right, and the following cases are cited: Chicago & N. W. R. Co. ”

“ Testimony in regard to it was excluded upon the objection of the Chemical Company, and there is support for the contention that the company is estopped to urge that a defense which was excluded upon its objection was involved in the action and concluded by the judgment.
It is, however, contended by the Chemical Company that whether new matter constitutes a defense or counterclaim under §§ 170 and 171 of the Code of Procedure of South Carolina (inserted in the margin [1] ) , it must be set up by a defendant in his answer, and cannot be, if not set up, used as an independent cause of action. ”

“ But this court has pointed out a distinction between such defenses and those which, though arising out of the transaction constituting plaintiff's claim, may cut it down or give rise to an antagonistic demand. Of such defenses we said, speaking through Mr. Justice Holmes in Merchants' Heat & Light Co. ”