Attleborough Nat. Bank v. Northwestern Manuf'g & Car Co.
Attleborough Nat. Bank v. Northwestern Manuf'g & Car Co.
Opinion of the Court
The facts are briefly these: The Northwestern Manufacturing & Car Company, a corporation existing under the laws of the state of Minnesota, is in the hands of a receiver, under an order of the district court of Washington county, with a view of winding up the concern, and all its property is sequestrated. That court has possession, and is proceeding to ascertain the debts, and liquidate. The complainant, a citizen of Massachusetts, is a creditor of the car company, and has a judgment obtained in an action at law in the circuit court of the United States for the district of Minnesota, pending these proceedings. While a distribution of the property by the district court of the state is progressing, a bill in equity is filed, and this court is asked to set aside all the proceedings by which that court gained possession of the res. There is no com-, plaint that the state court refused to recognize the debt of the complainant. The allegation to give this court jurisdiction is that a fraudulent conspiracy existed between the car company and a creditor, by which the state court was imposed upon, and possession of the res acquired by this fraud. To entertain this suit not only involves a review of the judgment of the district court of the state, but is a direct interference with property in custodia le gis, by authority of a court having jurisdiction over the parties thereto and the subject-matter of the controversy. Such interference cannot he tolerated. After a court of competent jurisdiction, having possession of the res, has let go its hold, a suit could be brought in another court of concurrent jurisdiction, in which it might he the duty of the court, if fraud was alleged and proven in obtaining a decree, to prevent the parties who obtained it, and who are before the court, and claim the property by virtue of a sale with knowledge of the fraud, from appropriating the property. Sahlgard v. Kennedy, 2 Fed. Rep. 295, cited by complainant’s counsel, and decided in this court, was of that character; also Johnson v. Waters, 111 U. S. 640; S. C. 4 Sup. Ct. Rep. 619. In Barrow v. Hunton, 99 U. S. 80, jurisdiction was sustained
Demurrer sustained, and bill dismissed.
Concurring Opinion
I concur in this opinion.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.