Courtney v. Shea
Courtney v. Shea
Opinion of the Court
(after stating the facts as above).
*362 “It seeiits not to be disputed, and we therefore find it to be true, that shortly after the marriage of the respondents early in 1906, the bankrupt arranged with his wife to put most of his earnings in her hands, she to pay all bills, expenses, etc., of the family, and if she,, by judicious and economical management, saved anything out of the money, the amount thus saved was to become her property.”
Mrs. Shea testified in substance that the agreement had ever since / been observed and carried out. The referee made no allusion to this agreement or the testimony supporting it, either in his opinion or certificate. Between April, 19.13, and the following November, though prior to the bankruptcy, it appears that the bankrupt gave to his wife $3,970.38, which was deposited to her credit in the First National Bank of Louisville, and within the same period she checked out of this account $3,285.91, leaving a balance to her credit of $684.47 at the time the proceeding in bankruptcy was begun. After the bankruptcy, and in November and December of that year, Mrs. Shea, according to her uncontradicted response, checked against this balance for necessary household and personal expenses to the amount of $449.93. This sum was withdrawn in part by checks running in favor, of third persons in payment of rent, supplies, etc., and the rest by checks for cash to herself, reducing the balance in bank to $234.54. This is the sum as to which the court affirmed the order of the referee. In other words, this was the only money found to bé in possession of the wife at the commencement of the present proceeding—January 2, 1914. We are not concerned with this -sum, for the reason, pointed out in the statement, that no steps have been taken to review the partial affirmance. The trustee claims, however, both in his petition and in argument, that the wife should be required to pay over the entire balance of $684.47. This ignores the fights of the persons who received Mrs. Shea's checks before the trustee began his summary proceeding. It is not suggested that those persons did not receive the checks, or the sums for which they were drawn.; and Mrs. Shea could no more be compelled by summary process to pay over money she had so disposed of than the rights, of the persons who were in possession of it could be adjudicated in their absence. And- as to the portion withdrawn by Mrs. Shea in her own favor for the purposes stated, she further says in her response that the money was used before she knew any part of it would be claimed by the trustee, and this is not disputed. True,..she made a deposit of money during this period; but it cannot be presumed to be the same money she had checked out.
The money paid to the building associations, it is true, was given to Mrs. Shea by the bankrupt; but as early as August 30, 1911, she purchased from one Hite a passbook, No. 2604, representing 20 shares of stock in the Avery Building Association, and paid therefor $162; she paid further sums to the association on account óf these shares in 1911 and 1912, amounting to $38. On February 17, 1912, Mrs. Shea purchased from one Ray a passbook, No. 1208, for 30 additional shares of the association before named, for $162, and subsequently during that year, and also between January 4 and November 1, 1913, she continued to make payments on account of such shares to the amount of $473, aggregating a total investment in the shares of that association
Reliance is placed upon the nature of a suit which was brought in the name of a taxpayer on behalf of Jefferson county, Ky., against the bankrupt, and which resulted in a judgment against him and in the voluntary proceeding in bankruptcy; also upon section 1907 of the Kentucky Statutes, which provides in substance that every gift made by a debtor “shall be void as to all of his then existing liabilities” ; but the enactment further provides that such gifts shall not be “void as to creditors whose debts or demands are thereafter contracted,” etc. It is enough to say of the contentions made in respect of these matters that they may be of weight in a plenary suit; but we hold that they cannot be employed in support of a summary proceeding such as this.
The orders as made by the District Judge in both proceedings are affirmed, and the appeals therein are dismissed, with costs.
Reference
- Full Case Name
- COURTNEY v. SHEA SAME v. WHALLEN
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- 13 cases
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- Syllabus
- 1. Bankruptcy Petitions by a trustee in bankruptcy, praying for a rule against the bankrupt and his wife, requiring them to pay money deposited in a bank in the wife’s name and stock in a building association issued in the wife’s name, and praying for a rule against a third person .individually and as executor, requiring him to show cause why he should not pay to the trustee a sum the bankrupt had paid for stock in a building association and had transferred to such third person, initiate proceedings summary in character, and decisions thereon are reviewablo under Bankr. Act July 1, 1898, c. 541, § 24b, 30 Stat. 553 (Comp. St. 1913, § 9808), and are not appealable under section 24a (section 9608) as a controversy arising in bankruptcy proceedings. For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 915; Dec. Dig. £=>440.] 2. Bankruptcy £=>440—Recovery of Property—Adverse Claim-Summary Proceedings—’Appeal—Petitions to Revise. The1 remedy to revise in a matter of law given by Bankr. Act, § 24b, and the remedy of appeal under section 24a, are mutually exclusive; and where the proper remedy is to revise, an appeal also taken will be dismissed. [lid. Note.—For other cases, see Bankruptcy, Cent. Dig. § 915; Dec. Dig. •:;. -> ¡ i). | 3. Bankruptcy £=>288—Recovery of Property—'Adverse Claims—Summary Proceedings. Where the adverse claim of a third person existing at the time of the filing of the petition in bankruptcy will sustain a judgment in favor of the third person if supported by unoontradicted testimony, the trustee must resort to a plenary suit to recover the property adversely claimed; but where the adverse claim, is merely frivolous, such as that of an agent or bailee holding in the interest of the bankrupt, the trustee may maintain summary proceeding for the recovery of the property. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 447; Dec. Dig. ©=>2[38.] 4. Bankruptcy £=>288—Recovery of Property—Adverse Claims—Summary Proceedings. Between April, 1913, and November following, the bankrupt gave to his wife 83,070.38, which she deposited to her own credit. She checked against the account, so that only $684.47 remained on November 10th. The husband was adjudged a bankrupt on November 11th. The wife therea fter withdrew for necessary household and personal expenses $449.93, and so reduced her credit to $234.54. Shortly after the marriage of the parties, in 1908, the bankrupt began to deliver most of his earnings to his wife, on the understanding that she should pay the family expenses, and the savings, if any, should belong to her. She invested the savings in building association stock in her own name. Held that the wife, as to the stock and the money deposited in the bank, except $234.54, had a bona fide adverse claim, which she was entitled to have tried in a plenary action as against the trustee in bankruptcy, notwithstanding Ky. St. 1909, § 1907, providing that every gift by a debtor shall be void as to existing creditors, which section can be relied on only in a plenary actión. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 447; Dec. Dig'. £=>288.] 5. Bankruptcy ©=>288—Recovery of Property—Adverse Claims—Summary Proceedings. Where one, over a year before he was adjudged a bankrupt, transferred stock in a building association in alleged fraud of his creditors, the trustee can only maintain a plenary action against the transferee for relief. [Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 447; Dec. Dig. £=>288.] ollii topic & KFY-NUMBEH in all Key-Numbered Digests & Indexes