Gifford v. Helms
| Decision Date | 01 October 1878 |
| Citation | 98 U.S. 248,25 L.Ed. 57 |
| Parties | GIFFORD v. HELMS |
| Court | U.S. Supreme Court |
APPEAL from the Circuit Court of the United States for the Middle District of Tennessee.
The facts are stated in the opinion of the court.
Mr. Montgomery Blair for the appellants.
Mr. C. W. Hornor, contra.
District courts, though constituted courts of bankruptcy, do not possess the power under the twenty-fifth section of the Bankrupt Act to order, in a aummary way, the sale of an estate, real or personal, although the same is claimed by the assignee, even though the title to the same is in dispute, if it also appears that the estate in question is in the actual possession of a third person, holding the same as owner, and claiming absolute title to and dominion over the same as his own property, whether derived from the debtor before he was adjudged bankrupt, or from some former owner. Knight v. Cheney, 5 Nat. Bank. Reg. 305.
Courts of bankruptcy may exercise many of the powers conferred by the first section of the Bankrupt Act in a summary way, as well in vacation as in term time, first giving notice to the party opposed in interest to the prayer of the petition, as in a rule to show cause in an action at law or in a suit in equity without service of process, the rule being that in such a proceeding neither party is entitled to a trial by jury, and that the only remedy for error is to seek a review under the first clause of the second section of the same act. Smith v. Mason, 14 Wall. 431.
Power to revise cases and questions which arise in the district courts in such proceedings is conferred upon the circuit courts by that clause of sect. 2, but it is settled law that the power so conferred does not extend to any case where special provision for the revision of the case is otherewise made. Morgan v. Thornhill, 11 id. 74.
Two trust-deeds were executed by the debtor of the complainant in his lifetime,—one to each of the two trustees named in the bill of complaint; the first embracing several tracts of land which were conveyed to secure his creditors, and the second consisting of an interest in a tract of two hundred acres, arising from a verbal contract to purchase the same, and an advance of $7,000 in part payment of the stipulated consideration, in respect to which the party who agreed to purchase the same, not being able to pay the balance, determined to abandon the contract and assert a lien upon the tract for the amount paid.
Twenty-nine hundred dollars of the amount paid for the tract by the debtor was the money of his wife, which she derived from the estate of her father, and which, by agreement between her and her husband, made while the money was still in the hands of the executor, he was allowed to apply towards paying for the land, the stipulation between them being that in taking title to the land such an interest in the same should be conveyed to her in her own separate right as would be proportionate to the amount of her money applied to the payment of the consideration.
Abundant evidence to substantiate those facts is found in the record; and it also appears that the debtor of the complainant, on the 10th of June, 1867, conveyed to his son all of his equitable interest in the several properties previously transferred to the before-mentioned parties, together with whatever interest he owned in the turnpike therein described, which was not included in either of said trust-deeds. Proof of that conveyance is placed beyond doubt; but it is equally clear that the chief object of the same was to secure the repayment to his mother of the money belonging to her which the father used and applied towards paying for the prior-described tract of land, the son becoming bound to her for that amount under the agreement.
Eight months and a half later, to wit, on the 28th of February, 1868, the said debtor of the complainant filed his petition in bankruptcy, and in the month of February of the succeeding year received his discharge. On the 6th of May next, after the petition in bankruptcy was filed, the assignee of the estate was appointed, and due conveyance of all the assets of the bankrupt was made to him, as required by law. Schedules of the bankrupt's liabilities were duly filed, but they did not mention the name of the original complainant as a creditor.
Allegations to the effect that the complainant proved debts to the amount of $4,500 are contained in the bill of complaint, which was filed Aug. 31, 1871, and the record shows that his own deposition given in the cause affirms the allegation; but the answer of the respondents denies the fact alleged, and the deposition of the bankrupt fully supports the averment of the answer.
Service was made; and the respondents appeared and demurred to the bill of complaint, and they subsequently filed an answer setting up several defences, including most or all of the causes shown in support of the demurrer. Hearing was had; and the court the district judge presiding—overruled the demurrer to the bill of complaint. Proofs were subsequently taken; and the parties having been again heard, the court—the circuit justice presiding—entered the final decree as to the merits in favor of the complainant, from which the respondents appealed.
Since the suit was commenced new parties have been made, in consequence of the death of the complainant and the principal respondent, but the questions to be decided are unaffiected by that circumstance.
Three of the errors assigned were fully discussed at the bar. They are as follows: 1. That the court erred in...
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... ... Wood v. Bailey, 21 Wall. [88 U.S.] 640 [22 L.Ed. 689]; Wiswall v. Campbell, 93 U.S. [3 Otto] 347 [23 L.Ed. 923]; Gifford v. Helms, 98 U.S. [8 Otto] 248 [25 L.Ed. 57]; Upton v. McLaughlin, 105 U.S. [15 Otto] 640 [26 L.Ed. 1197]. We are of opinion, therefore, that the ... ...
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Coryell v. Klehm
...passed to Grant by the assignee's deed, and until it became a complete bar. Greene v. Taylor, 132 U. S. 415, 10 Sup. Ct. 138;Gifford v. Helms, 98 U. S. 248;Bank v. Jenkins, 104 Ill. 143. The contention of appellee is that when, in 1875, Hancock, the assignee, filed his petition for the sale......
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...persons touching the property rights of property of the bankrupt transferable to or vested in the assignee.' See also Gifford v. Helms, 98 U.S. 248, 252, 25 L.Ed. 57; Jenkins v. International Bank, 106 U.S. 571, 575, 2 S.Ct. 1, 4, 27 L.Ed. 304. The inference seems clear from this that suits......
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