McKechney v. Weir
McKechney v. Weir
Opinion of the Court
having stated the case thus, delivered the opinion of the court.
Prior to May 14, 1901, the federal circuit court had full jurisdiction of the subject-matter of, and parties to, the original bill. An order had then been entered restraining the defendants from selling or in any way disposing of the assets of the firm. A motion for the appointment of a receiver was pending. That court, therefore, had absolute control of the whole matter, free from the interference of any other court. Farmers’ Loan & Trust Co. v. Lake St. El. R. Co., 177 U. S. 51, 20 Sup. Ct. 564, 44 L. Ed. 667. And the sole question is whether the contract and stipulation of May, 1901, deprived that court of the rightful power to act as it did upon appellee’s supplemental bill and motion. Counsel for appellants are entirely right in saying that á suit is under the control of the parties, and that a court has no jurisdiction to be upheld, from imagined considerations of dignity or other motive, against a binding stipulation, and the case is to be scanned exclusively from that point of view.
What was the situation of the Messrs. McKechney on May 14, 1901 ? They were defendants to the original bill,—under a restraining order. A motion was pending to have the assets of the firm collected and distributed by a receiver. The parties were willing to avoid that expense if possible. So they agreed,—to what? “The assets of the firm shall be collected and distributed in a manner to be hereafter agreed upon.” And “proceedings upon the bill shall be stayed until the supreme court of Illinois shall have rendered judgment in the case of Weir, McKechney & Co. against the city of Chicago, therein pending, and until the method of collecting and distributing the assets shall be agreed upon.” With respect to the control and disposition of the assets, a matter then pending in the court below, the parties agreed to agree; that is, they agreed to nothing. But they thereby expressed their desire and intention to endeavor to reach an adjustment later. So they entered into an armistice. They agreed to suspend hostilities until the supreme court of Illinois should dispose of their case and until they should unite upon a method of distributing the proceeds. In determining the scope of this time limit, it must not be forgotten that the evident purpose of the parties was to see if they could not reach a complete settlement. The only remaining asset was the judgment against Chicago. But that fact would not prevent the appointment of a receiver immediately. There might well be pressing
The court below was of the opinion, in which we concur, that the proceedings in the state court were collusive. On the basis that Mrs.. McKechney allowed herself to be used as a cloak to mask the purposes of her husband and son, her appeal falls with theirs.
But, collusion aside, Mrs. McKechney has no standing. Mr. Weir did not give her an unconditional obligation to pay $75,000. He assigned her an interest in the subject-matter of a pending suit, with reference to the handling of which the very instrument that gave her her interest made certain provisions. She could not count on these provisions otherwise than as Mr. Weir made them. To have-prevented him from taking up and pressing the motion for a receiver which was pending in the federal circuit court when she bought into-the suit, it was incumbent upon her to show that he had bound himself not to do so, and that such agreement was in force. There was no-direct engagement with her on the subject. She could not take the
There is no basis for the claim that Mrs. McKechney, on account of her citizenship in Illinois, could not apply to the federal court for protection of her dependent interests and was compelled to resort to the state court. Ex parte Tyler, 149 U. S. 164, 13 Sup. Ct. 785, 37 L. Ed. 689.
The contention that Mr. Weir could avail himáelf of the facts exhibited in his supplemental bill only as a defense to the proceedings in the state court is without merit. The federal circuit court had the right to decide for itself whether its original jurisdiction had been lost.
The intervening creditors have been permitted to file briefs in support of their position that, after their petitions had been filed, the 'original parties could not dismiss the suit without their consent. In view of the' conclusions already reached, it is needless to decide that question.
The order appealed from is affirmed.
Reference
- Full Case Name
- McKECHNEY v. WEIR
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- Published