Tootle, Hosea & Co. v. P. S. Sheldon & Son
Tootle, Hosea & Co. v. P. S. Sheldon & Son
Opinion of the Court
. On the eighteenth day of March, 1878, the defendants in error instituted an action of replevin against J. S. Iloagland, sheriff' of Lancaster county, to recover the possession of certain goods mortgaged by Liddy brothers to the defendants in error. The plaintiffs in error on their own motion, were substituted as defendants in the action, and answered the petition of the plaintiff, alleging that on the twenty-first day of February 1878, they had commenced certain actions in the county court of Lancaster county against Liddy brothers, and had caused certain orders of attachment to be issued out of said court in said actions, which wore levied.upon the goods in question, and that on the third day of March, 1878, they recovered judgments in said actions in said court against the firm of Liddy brothers, one judgment being for the sum of $500 and costs, and the other for the sum of $169.94 and costs. To this answer the defendants in error, as a second defense, alleged in their reply in substance that on the eleventh day of March, 1878,
In the case of Donaldson, assignee, v. Farwell, 93 U. S., 634, it was held that “the assignment relates back to the commencement of the proceedings in bankruptcy, and vests by operation of law in the assignor the property of the bankrupt, with certain specified exceptions, although the same be then attached. It also dissolves any attachment made within four months next preceding the commencement of the proceedings.”
In Bracken v. Johnson, 4 Dillon, 518, it was hold by Justice Miller that a creditor who proceeds in a state court by attachment, on which he seizes the property of his debtor and realizes his judgment obtained in such suit by a sale of the property
This being the case, the goods in question were taken from the defendants in error by a paramount title — one that they could not successfully defend against — and a proceeding which, being instituted within four mouths from the time the attachments of the plaintiffs in error were levied, dissolved the same. The purpose of the statute seems to have been to dissolve all attachments levied within four months, whether merged in the judgment or not. No ease has been pointed out where an exception has been made in favor of a judgment creditor whose attachment had become merged in the judgment, and we think no such case can be found. The proceedings in bankruptcy, therefore, dissolved the attachments of the plaintiffs in error, and thereby divested their lien. Theoretically, at least, proceedings in bankruptcy were supposed to make an equal distribution, with certain.exceptions, of the proceeds of all the debt- or’s property among his creditors. All creditors could prove tlieir claims and share in the proceeds, and the plaintiffs in error had the right, and for aught that appears in the record may have shared in the assets of the estate. But even if they have not, upon what principle can they be permitted to recover in this action? The defendants in error have not ap
Judgment aketjrmed.
Reference
- Full Case Name
- Tootle, Hosea & Co. and S. Lockwood & Co., in error v. P. S. Sheldon & Son, in error
- Status
- Published