In re San Gabriel Sanatorium Co.

U.S. Court of Appeals for the Ninth Circuit
In re San Gabriel Sanatorium Co., 111 F. 892 (9th Cir. 1901)
50 C.C.A. 56; 1901 U.S. App. LEXIS 4444

In re San Gabriel Sanatorium Co.

Opinion of the Court

PER CURIAM.

In this case the district court for the Southern district of California granted leave to a mortgagee to make a trustee in bankruptcy a party defendant to foreclosure proceedings in the state court. The court also denied the petition of the trustee for an injunction to restrain the foreclosure proceedings in the state court. On a petition to this court for a review of the proceedings in the district court, the orders were reversed'. In re San Gabriel Sanatorium Co., 42 C. C. A. 369, 102 Fed. 310. Before further proceedings were taken in the district court the supreme court of the United States decided the case of Bardes v. Bank, 178 U. S. 524, 20 Sup. Ct. 1000, 44 L. Ed. 1175. A rehearing was thereupon granted in this case. *893Under the construction placed upon the bankrupt act by the supreme court, the district court was right in granting leave to the mortgagee to make the trustee in bankruptcy a party defendant to_ the foreclosure proceedings in the state court. It was also right in denying the petition of the trustee for an injunction to restrain the foreclosure proceedings in the state court.

The orders of the district court are therefore affirmed.

Reference

Full Case Name
In re SAN GABRIEL SANATORIUM CO.
Cited By
11 cases
Status
Published
Syllabus
Bankruptcy—Jurisdiction of District Court—Suits by or against Trustee. The bankrupt act does not confer upon .a district court of the United States, as a court of bankruptcy, jurisdiction of a controversy between a trustee and a mortgagee of the bankrupt to determine the validity of the mortgage, unless with the consent of such mortgagee.