495

WHITNEY v. WENMAN.

198 U. S. 539-553

forcing delivery of goods to him; Brumby v. Jones, 141 Fed. 322, 72 C. C. A. 466, property of bankrupt not in possession of his trustee. cannot be declared in trust by district courts in plenary suit.

Jurisdiction of bankruptcy court is ousted by receiver's surrender of property without authority of court.

Approved in Hebert v. Crawford, 228 U. S. 208, 57 L. Ed. 803, 33 Sup. Ct. 484, where bankrupt is in possession of rice crop at time of filing of petition, and later trustee appointed by State court delivers it to warehouse, bankruptcy court has jurisdiction to determine claims; Babbitt v. Dutcher, 216 U. S. 105, 17 Ann. Cas. 969, 54 L. Ed. 403, 30 Sup. Ct. 372, bankruptcy court may compel delivery of corporate records and stock-books of corporation by summary proceeding; Coder v. Arts, 213 U. S. 232, 16 Ann. Cas. 1008, 53 L. Ed. 776, 29 Sup. Ct. 436, where claimant asserts lien against bankrupt's estate which would be defeated by trustee's construction, of Bankruptcy Act, and lien is allowed, appeal lies to Circuit Court of Appeals, and to Supreme Court as amount exceeds two thousand dollars; Murphy v. John Hofman Co., 211 U. S. 569, 53 L. Ed. 330, 29 Sup. Ct. 154, goods in possession of receiver in bankruptcy cannot be seized on writ of replevin from State court; Re Wood, 210 U. S. 255, 52 L. Ed. 1050, 28 Sup. Ct. 621, bankruptcy court has jurisdiction to re-examine on petition of trustee, validity of payment to attorney, and to direct repayment of excess, and notice of hearing may be served without district on nonresident attorney; In re Wegman Piano Co., 228 Fed. 64, referring petition of trustee in bankruptcy for order to show cause requiring credit company to establish rights to money, books, and accounts in his possession, to special master to determine questions relating to evidence of possession and ownership; In re Fitzhugh Hall Amusement Co., 228 Fed. 171, vendor of property under conditional sale contract reserving title, by obtaining judgment and levying execution waives title, and where levy was within four months of bankruptcy trustee may sell property for benefit of general creditors; Gibbons v. Goldsmith, 222 Fed. 830, 138 C. C. A. 252, under provisions of Bankruptcy Act and section 5918 of Washington Code, giving husband control of community property, and decision of State court that debts of husband are prima facie community debts, bankruptcy court has jurisdiction to determine disposition. of funds in hands of trustee from sale of community property; Blair v. Brailey, 221 Fed. 4, 136 C. C. A. 524, holding jurisdiction of court. appointing receivers is not affected by bankruptcy proceedings instituted six months later in another jurisdiction, and denying trustee's petition to secure possession of property in hands of receiver; Wright v. Harris, 221 Fed. 745, bankruptcy court in possession of property denies petition of State receiver, cancels fraudulent foreclosure sale to creditor, and enjoins creditor from interfering with possession of trustee; Pugh v. Loisel, 219 Fed. 421, 135 C. C. A. 221, State court cannot, after filing of petition in bankruptcy, make order of foreclosure

of mortgage in part of property; Galbraith v. Robson-Hilliard Grocery Co., 216 Fed. 844, 845, 846, 133 C. C. A. 46, bankruptcy court has jurisdiction to determine validity of mortgage on bankrupt's property in another State, where trustee has possession; In re Breyer Printing Co., 216 Fed. 882, 133 C. C. A. 82, where adverse claimant in possession of chattels turns them over to trustee subject to his rights, controversy is between trustee and adverse claimant same as if latter had retained possession, and decree is not reviewable under Bankruptcy Act, section 24b; In re O'Brien, 215 Fed. 130, under New Jersey statute making unrecorded conditional sale contracts void against judgment creditors of purchasers, and Bankruptcy Act of 1910, vesting in trustee rights of judgment creditors, property in possession of bankrupt under unrecorded conditional sale contract passes to trustee; In re Tygarts River Coal Co., 203 Fed. 179, receiver appointed pending election of trustee in bankruptcy has no such interest as to warrant instituting ancillary proceeding in another district to secure custody of property; In re Lipman, 201 Fed. 172, provision of Bankruptcy Act limiting jurisdiction of bankruptcy court over controversies relating to collector of bankrupt's estate relates only to suits brought by trustees, and does not restrict right of receiver to defend possession of goods seized as those of bankrupt; In re Franklin Suit & Skirt Co., 197 Fed. 601, affirming order of referee made before adjudication of bankruptcy to compel third persons to turn over property of bankrupt to trustee; In re Logan, 196 Fed. 686, affirming order of referee requiring conveyance of farm and personal property to trustee in bankruptcy, where actual possession was in bankrupt and legal title had been conveyed to third person to defraud creditors; Johnston v. Spencer, 195 Fed. 218, 219, 115 C. C. A. 167, where stockholder sells his stock to another stockholder for cash and automobile of corporation, and bankrupt corporation delivers bill of sale to third person who executes notes payable to corporation which are discounted at bank and proceeds used to pay for stock, bankruptcy court has no jurisdiction to litigate rights of stockholder to money; Mitchell Storebuilding Co. v. Carroll, 193 Fed. 618, 620, 113 C. C. A. 484, bankruptcy court having possession of property may enjoin prosecution of claim in State court; In re Alexander, 193 Fed. 753, receiver may maintain summary proceedings to set aside sale of bankrupt's assets to his attorney; In re Canfield, 193 Fed. 936, 113 C. C. A. 562, where receiver assented to proceedings by bankrupt's creditor to reclaim proceeds of accounts assigned to him by bankrupt, appellate court will not inquire into jurisdiction of bankruptcy court; Clay v. Waters, 178 Fed. 390, 393, 399, 21 Ann. Cas. 897, 101 C. C. A. 645, taking and concealing of property in bankrupt's possession at time of adjudication by third person having no lien or adverse claim, is punishable as contempt; Plaut v. Gorham Mfg. Co., 174 Fed. 855, 856, where tenant's lease is terminated four days before filing of petition in bankruptcy, Federal court has no jurisdiction of action by trustee

497

NOTES ON U. S. REPORTS.

198 U. S. 554-578

to establish lease as asset of bankrupt's estate; Berman v. Smith, 171 Fed. 741, 742, trustee in bankruptcy is entitled to injunction to restrain prosecution of suits for conversion for taking of property in his official capacity, but not to restrain action for damages for alleged abuse of authority; In re Rose Shoe Mfg. Co., 168 Fed. 41, 93 C. C. A. 461, where property of bankrupt is taken from possession of trustee by adverse claimant, referee may order return of property or proceeds of sale; Plaut v. Gorham Mfg. Co., 159 Fed. 755, bankruptcy court has jurisdiction of suit by receiver to recover possession of property under lease held by bankrupt, where receiver was dispossessed by illegal warrant; In re Alton Mfg. Co., 158 Fed. 369, levy on goods under writ of replevin served after order of bankruptcy court appointing receiver, is void; Hurley v. Devlin, 151 Fed. 924, where bankrupt dies pending proceeding, bankruptcy court has exclusive jurisdiction to determine widow's dower right to lands in various States; T. E. Hill Co. v. United States Fidelity etc. Co., 250 Ill. 248, 95 N. E. 152, under Bankruptcy Act of 1898 requiring bond for payment of costs in case petition is dismissed, damages may be recovered upon dismissal of petition without showing of malice and probable cause.

Distinguished in In re Interocean Transp. Co., 232 Fed. 410, bankruptcy court cannot stay action in State court for money had and received against stakeholder having possession of fund claimed by trustee in bankruptcy; In re Rathman, 183 Fed. 922, 926, 106 C. C. A. 253, bankruptcy court has no jurisdiction to take possession of property from receiver of State court appointed to enforce claim of mortgage lien and adjudicate claim to lien in summary proceeding; Skewis v. Barthell, 152 Fed. 536, bankruptcy court has no jurisdiction of suit by trustee to recover real estate conveyed in fraud of creditors more than four months before filing of petition in bankruptcy.

What amounts to adverse holding of property acquired from bankrupt. Note, 8 L. R. A. (N. S.) 1234.

Miscellaneous. Cited in De Watteville v. Sims, 44 Okl. 718, 146 Pac. 228, adjudication by referee in bankruptcy that plaintiff's claim was void for usury is res adjudicata in action on note and to foreclose mortgage.

198 U. S. 554-560, 49 L. Ed. 1161, 25 Sup. Ct. 775, VAN REED V. PEOPLE'S NAT. BANK.

Not cited.

198 U. S. 561-578, 49 L. Ed. 1163, 25 Sup. Ct. 770, GREAT WESTERN MIN. & MFG. CO. v. HARRIS.

Receiver of corporation with no title to assets except that derived from his appointment in suit to enforce claims of creditors, cannot sue in foreign jurisdiction to recover property of debtor.

XIX-32

Approved in Keatley v. Furey, 226 U. S. 403, 57 L. Ed. 275, 33 Sup. Ct. 121, whether title to assets outside State passed to receiver of corporation under order of State of organization depends upon State law, and decision of Federal court in State having custody of assets that no title passed and dismissing petition of receiver to intervenc does not warrant direct appeal to Supreme Court; Fairview Fluor Spar & Lead Co. v. Ulrich, 192 Fed. 897, 113 C. C. A. 372, reversing order of Circuit Court appointing ancillary receiver; McGraw v. Mott, 179 Fed. 654, 103 C. C. A. 204, where Federal court of equity in New Jersey acting under State Corporation Act appoints receiver for insolvent corporation, complainant may institute suit for appointment of ancillary receiver in another Federal district in which corporation has property, and while stockholder may intervene in such suit, he cannot question jurisdiction of court in principal suit, nor obtain review of decree; Horn v. Pere Marquette R. Co., 151 Fed. 631, suit by creditor of railroad to have property situated in different Federal districts of same State administered for benefit of all creditors may be brought in either district, and appointment of receiver is equitable attachment of all property of railroad in State; Coal & Iron Ry. Co. v. Reherd, 204 Fed. 882, 123 C. C. A. 155, receiver of railroad contractors appointed in Virginia had no authority to bring action against railroad in Federal court for Northern District of West Virginia, but order ratifying his appointment was made in ancillary proceeding in State court of West Virginia, and proceedings, though irregular, authorized him to continue suit in Federal court; In re Tygarts River Coal Co., 203 Fed. 179, receiver appointed in bankruptcy pending election of trustee has not such interest as entitles him to institute ancillary proceeding in this court to secure custody of property in this district; Covell v. Fowler, 144 Fed. 539, bank's receiver appointed in suit to liquidate its affairs cannot sue in foreign jurisdiction to enforce stockholder's liability; Fowler v. Osgood, 141 Fed. 23, 4 L. R. A. (N. S.) 824, 72 C. C. A. 270, receiver in chancery of insolvent corporation appointed by Federal court in Iowa, could not, even by leave of court appointing him, sue in Federal court in Colorado, for recovery of fund from resident of latter State, alleged to be held in trust for benefit of creditors of estate; In re Benedict, 140 Fed. 57, bankruptcy court cannot confer upon receiver power to act outside jurisdiction of that court; McCague v. Dodge. 50 Colo. 209, 114 Pac. 649, receiver of Colorado corporation, removing property to Nebraska and accepting laws of that State, appointed by Nebraska court in creditor's suit, cannot sue in Colorado court to recover unpaid stock subscription; Shloss v. Metropolitan Surety Co., 149 Iowa, 387, 128 N. W. 385, claim of foreign receiver of foreign corporation to funds in Iowa will not be recognized where result relegates Iowa creditors to foreign jurisdiction for relief; Hughes v. Hall, 118 Md. 676, 85 Atl. 947, where corporation goes into hands of ordinary chancery receiver, decree of dissolution, and appointment

499 GREAT WESTERN M. & M. CO. v. HARRIS. 198 U. S. 561-578

of receiver thereunder is prerequisite to recovery of illegal preference; McAllister v. American Hospital Assn., 62 Or. 536, 125 Pac. 288, subscribers for stock at less than par value are liable for indebtedness of corporation to full value of stock subscribed and unpaid; Childs v. Blethen, 40 Wash. 348, 351, 82 Pac. 408, 409, holding insolvent creditors, together with receiver directed to collect judgment, authorized to sue on judgment in Washington courts only and not in foreign jurisdiction.

Distinguished in Bernheimer v. Converse, 206 U. S. 534, 51 L. Ed. 1176, 27 Sup. Ct. 755, and Converse v. Hamilton, 224 U. S. 257, 260, Ann. Cas. 1913D, 1292, 56 L. Ed. 754, 755, 32 Sup. Ct. 415, both holding under Minnesota laws of 1899, receiver of corporation whose stockholders are subject to double liability, is quasi-assignee and may enforce rights of creditors in other jurisdictions than that of court appointing him; Irvine v. Elliott, 203 Fed. 106, receiver appointed by Ohio court to enforce statutory double liability of stockholders of insolvent Ohio railroad, and authorized by statute to recover assessments within and without State, may sue resident of Delaware in courts of that State to recover assessment levied on him; McBride v. Oriental Bank of New York, 200 Fed. 896, receiver for corporation recovering judgment in his own State may maintain action on judgment in another State as judgment creditor, and his description of himself as receiver may be treated as surplusage; Bluefields S. S. Co. v. Steele, 184 Fed. 586, 106 C. C. A. 564, reversing appointment of ancillary receiver in stockholder's suit in Pennsylvania for purpose of bringing action for treble damages under Féderal anti-trust law against party not citizen nor resident of Pennsylvania where bill does not allege that general receiver in Louisiana was appointed to bring such suit; Bay State Gas Co. v. Rogers, 147 Fed. 559, holding, though receiver's powers are interlocutory, he has authority to sue in Massachusetts to recover profits for which defendant has not accounted; Lyon v. Russell, 41 App. D. C. 559, holding court of district will recognize title of receiver appointed by foreign court to property within this jurisdiction, where property was voluntarily surrendered to him by corporation; Jenkins v. Purcell, 29 App. D. C. 214, 9 L. R. A. (N. S.) 1074, right of foreign receiver taking personal property into his possession in jurisdiction of his appointment and selling it in this district is superior to right of domestic creditor of owner who attaches proceeds of sale in hands of purchaser from receiver; Shipman v. Treadwell, 208 N. Y. 411, 102 N. E. 637, suit by Ohio receiver of insolvent corporation to enforce statutory liability of stockholders is suit by quasi-assignee under Ohio statutes and may be maintained in this court.

Receiver's power to sue out of jurisdiction of appointment. Note, 4 L. R. A. (N. S.) 824, 828.

Right of corporation itself to deny adequacy of property taken for stock in absence of actual fraud. Note, 19 L. R. A. (N. S.) 116.