In re Ironclad Mfg. Co.

U.S. Court of Appeals for the Second Circuit
In re Ironclad Mfg. Co., 191 F. 831 (2d Cir. 1911)
112 C.C.A. 345

In re Ironclad Mfg. Co.

Opinion of the Court

PER CURIAM.

There is no necessity to go into the details of the case presented, since the matter was disposed of below on a question of jurisdiction. We think that petitioners were entitled to have the bankruptcy, court make a preliminary investigation summarily to determine whether or not the claim of adverse ownership is merely colorable. Under the authorities a bona fide claim of ownership by a third party raises a question which can be disposed of only by plenary suit; but a mere assertion of ownership, which is wholly unfounded, cannot conclude the court as to the disposition of the claim.

As we understand the situation here, the District Judge had some doubt as to his jurisdiction to decide this question of the bona fides of the claim summarily, and therefore did not pass upon it. We are satisfied that the decision of such a question was within his jurisdiction, and therefore reverse the order, and remand the case to the District Court for further action.

Reference

Full Case Name
In re IRONCLAD MFG. CO.
Cited By
6 cases
Status
Published
Syllabus
Bankruptcy (§ 288*) — Jurisdiction on Court — Adverse Claims to Property. A bona fide claim of a third person in possession to the ownership of property, also claimed as belonging to. the estate of a bankrupt, raises a question which can be determined only by a plenary suit; but a mere assertion of ownership, which is wholly unfounded, cannot conclude the bankruptcy court, and such court has jurisdiction to summarily determine whether or not the claim is merely colorable. [Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 288.*]