Federal Reserve Bank v. Weant
Federal Reserve Bank v. Weant
Opinion of the Court
We are of the opinion that plaintiff had a right to proceed with its foreclosure to the extent of having the priority of the liens adjudicated, and that neither the stipulation nor the assignment in bankruptcy had the effect of ousting the jurisdiction of the Circuit Court. But the circumstances shown here clearly indicate to us that the defendant Nelson acted under the belief that the proceedings in bankruptcy had terminated plaintiff’s right to proceed; and probably uifider the belief, also, that he had an understanding with plaintiff’s agent to the effect that no foreclosure would take place
It seems very plain-to our mind that defendant suffered a default in this case through misapprehension as to the law and as to his rights in the matter, and that he made such a showing that a reasonable exercise of the court’s discretion would have caused it to open up the decree and set aside the default which had been entered only two or three days previously.
The order of the court refusing to open up the default is set aside, and the decree is also set aside, and defendant will be permitted to answer herein; the cost in this proceeding to abide the final decree of the Circuit Court.
Reversed and Decree Set Aside.
Reference
- Full Case Name
- FEDERAL RESERVE BANK OF SAN FRANCISCO v. R. E. WEANT and C. W. NELSON
- Status
- Published