Hale v. Christy
Hale v. Christy
Opinion of the Court
On tbe 20th day of April, 1886, the plaintiff caused to be made and entered in the district court of Otoe county
The cause was thereupon tried to the court below, which found that said Emil J. G. Christy recovered the judgment for the same at the time and under all the materiacircumstances alleged; that the judgment had become dormant; that the judgment creditor had duly assigned the same to the plaintiffs in this action, who are now the real owners and parties in interest; that no part of the judgment had been paid, but that the same is now due to these plaintiffs, and that no valid or legal l’eason exists why the
On these proceedings the defendant brings his cause to this court, on error, and among others assigns the following:
II. That the court erred in overruling the plaintiff’s demurrer to the defendant’s replication.
IY. In finding that said Christy, had duly assigned said judgment before the commencement of these proceedings, and that said Herbert R. and Alice M. Christy are the real owners thereof, and the real parties in interest.
Y. In finding that the whole amount of said judgment was still due and owing, and that no legal reason exists why the same should not be revived against the defendant.
On the trial, evidence was introduced by the defendant, and received, by which it was sufficiently proved that on March 12, 1873, in the district court of the United States for the district of Nebraska, in a proceeding pending in said court, and before the register in bankruptcy, within the true intent and meaning of an act of congress establishing an uniform system of bankruptcy throughout the United States, approved March 2, 1867, the said Emil J. G. Christy was found, adjudged, and declared a bankrupt; that George W. Coveil was appointed assignee of the estate, and that on April 1, 1874, said bankrupt was, by said court, discharged from all debts and claims due to creditors prior to February 27, 1873.
The main question presented by the record, and the only one deemed necessary to be considered is, whether at the date of the alleged assignment of the judgment against the defendant by Emil J. G. Christy to the plaintiffs he was the owner of the judgment, or whether that ownership had not passed to the assignee in bankruptcy; or rather whether, it being admitted, as it must be, that the judg
Section 5044 of the Eevised Statutes U. S., title Bankruptcy, provides that, “as soon as an assignee is appointed and qualified, the judge, or where there is no opposing interest, the register, shall, by an instrument under his hand, assign and convey to the assignee all the estate, real and personal, of the bankrupt, with all his deeds, books, and papers relating thereto, and such assignment shall relate back to the commencement of the proceedings in bankruptcy, and by operation of law shall vest the title to all such property and estate, both real and personal, in the assignee, although the same is then attached on mesne process as the property of the debtor, and shall dissolve any such attachment made within four months next preceding the commencement of the bankruptcy proceedings.”
' Section 5046 of the same title and chapter further provides that, “all property conveyed by the bankrupt in fraud of his creditors; all r*ights in equity, choses in action, patent rights, and copy rights; all debts due him, or any person for his use, and all liens and securities therefor; and all his rights of action for property or •estate, real or personal, and for any cause of action which he had against any person arising from contract, or from the unlawful taking or detention or injury to the property of the bankrupt; and all his rights of redeeming such property or estate; together with the like right, title, power, and authority to sell, manage, dispose of, sue for, and recover or defend the same, as the bankrupt might have had if no assignment had been made, shall, in virtue of the adjudication of bankruptcy and the appointment of his assignee, but subject to the exceptions stated in the preceding section, be at once vested in such assignee.”
While there is no direct evidence in the transcript of the record of the execution, either by the district judge of
The meaning and effect of these statutes have been construed by the supreme court of the United States in several cases, some of which, cited by counsel, will be referred to in support of the opinion, that “ a chose in action, good or bad, passes to the assignee in bankruptcy and cannot be sold, sued, or retained by the bankrupt.”
In the case of Erwin v. The United States, 97 U. S. Report, 396, the claimant, having been discharged in bankruptcy, came surreptitiously into the possession of his former claim for the loss of cotton seized by the military authority of the United States. His action for the proceeds, which had been paid into the treasury, was dismissed under a decision that “ a demand of a bankrupt, which is outlawed, must go to the assignee; for contingencies may arise in many ways which will give value to it.”
In the case of Glenny v. Langdon, 98 U. S. R., 20, it was held that, “ debts due to the bankrupt, as well as all his rights of action, vest in the assignee by virtue of the
This doctrine was re-affirmed in the case of Trimble v. Woodhead, 102 U. S. R., 647, and in Moyer v. Dewey, 103 U. S. R., 301.
It appearing from the record that the judgment against the plaintiff in error passed to the assignee in bankruptcy, who was thereby vested in the right of property to sue, collect, and appropriate the same to his creditors who proved their claims before the register, and that said Christy was thereby divested, and was so divested, at the date of the alleged assignment to the defendants in error, of all the rights of property in the judgment sought to be revived, the court below therefore erred in its findings and judgment as set forth, which are reversed, and the cause remanded for further proceedings according to law.
Eeversed and remanded.
Reference
- Full Case Name
- Andrew J. Hale, in error v. Herbert R. Christy, in error
- Status
- Published