Breckons v. Snyder
Breckons v. Snyder
Opinion of the Court
Opinion by
A petition in bankruptcy was filed by the creditors of W. D. Chimelewsky on March 14, 1902, and was so proceeded with that he was adjudged a bankrupt on April 29, 1902. This action was brought by the trustee of his estate to 'recover of’the defendant f>5,000 transferred to him by the bankrupt on February 17, 1902. The declaration contained two counts.' In the first it was alleged that the money had béen given to the defendant without any consideration and with the intent to defraud the bankrupt’s creditors and for this purpose it was received and retained by the defendant;'in the second it was alleged that the money was paid after insolvency and within four months of the filing of the petition in bankruptcy for the purpose of giving the defendant a preference over other creditors. The second count was withdrawn at the trial, and the case went to the. jury on the issue raised by the first, the .'plaintiff’s contention being that the money had been placed by the bankrupt in the defendant’s hands for concealment, and the defendant’s that he had', received it in discharge of a debt due him by the bankrupt. These contentions were submitted to the jury with instruction that if the transaction was the payment of a debt due the defendant, their verdict should be for
In support of a number of assignments of error which raise the question in different forms it is argued that it was incumbent on the plaintiff to show that there were unsatisfied creditors at the time of the transfer, at the time the suit was brought, and at the time of the trial, for the reason that if there were no creditors when the transfer was made, there was no one to be defrauded by it, and if there were none afterwards there was no one in whose interest the trustee could maintain the action. The first ground of objection would not be without merit if a recovery had been sought because of a preferential transfer within the time prohibited by law.. But the second count was withdrawn and the only issue at the trial was whether a debt had existed and had been paid. No other right to retain the money was set up. If it had not been given to the defendant in discharge of a debt, it was the bankrupt’s money in the defendant’s hands, which the trustee could recover for creditors. The adjudication was evidence of the bankrupt’s insolvency at its date, and.it was not necessary to prove insolvency at the trial.
The remaining assignments do not require discussion. The court had jurisdiction because it was the court that would have had jurisdiction if bankruptcy had not intervened: Bardes v. First National Bank of Hawarden, 178 U. S. 524.
The judgment is affirmed.
Also reported 20 Sup. Ct. Repr. 1000, Reporter.
Reference
- Cited By
- 10 cases
- Status
- Published
- Syllabus
- Bankruptcy—Suit by trustee—Evidence. In an action by the trustee of a bankrupt to recover money alleged to have been paid by the bankrupt, prior to the bankruptcy of the defendant, in satisfaction of a debt, where the question at issue is not whether there was a preferential transfer within the time prohibited by law, but whether a debt had existed and had been paid, it is not necessary for the plaintiff to show that there were unsatisfied creditors at the time of the transfer, at the time suit was brought, and at the time of the trial. Bankruptcy—Jurisdiction—Common pleas. The court of common pleas has jurisdiction to entertain a suit by a trustee in bankruptcy against a person holding and claiming as his own money alleged to have been paid to him by the bankrupt in fraud of creditors. Bankruptcy—Suit by trustee—Trustee’s bond—Extension of time for filing bond—Presumption. In an action by a trustee in bankruptcy to recover property of the bankrupt, the defendant' cannot object to the qualification of the.trustee because the record did not show that the trustee had obtained an extension of time for the filing of his bond two days after the expiration of the ten days provided by the act of Congress. In such a case the presumption is iñ ' favor of the regularity of all proceedings before thé referee, and that the trustee complied with all the requirements of the law, and was qualified to act. Bankruptcy—Suit by trustee—Evidence. In an action by a trustee in bankruptcy against a person who is alleged to have money of the bankrupt in his hands, the notes of the testimony of the bankrupt taken at a preliminary proceeding before the referee to ascertain the bankrupt’s assets and liabilities, are inadmissible in evidence.. The issue is not between the same parties, nor does it involve the same subject-matter.