Hadden v. Dooley

• Decision Date: 12 May 1896
• Parties: HADDEN et al. v. DOOLEY et al.
• Court: U.S. Court of Appeals — Second Circuit

74 F. 429

HADDEN et al. v. DOOLEY et al.

United States Court of Appeals, Second Circuit.

May 12, 1896

Edward Winslow Paige, for appellants.

H. K Twombley, for appellees.

Before WALLACE and SHIPMAN, Circuit Judges.

SHIPMAN Circuit Judge.

This is an appeal from an order of the circuit court of the United States for the Southern district of New York, dated December 12, 1895, which denied a motion to dissolve an injunction pendente lite, and continued it until the further order of the court. The original order restrained, pendente lite, the sheriff of Kings county from selling the property of the Natchaug Silk Company in his possession as sheriff upon executions against said company in favor of John A. Pangburn or Michael F. Dooley, as receiver, and restrained Pangburn and Dooley from further proceedings at law against the property of said silk company in the state of New York.

An outline of the facts is as follows: On April 23, 1895, the Natchaug Silk Company, a Connecticut corporation, hereinafter called the 'Silk Company,' owed the First National Bank of Williamantic, a national banking association hereinafter called the 'Bank,' located in Connecticut, over $300,000, and was entirely insolvent. In consequence of this indebtedness the bank suspended, and Michael F. Dooley was appointed its receiver on April 26 1895, by the comptroller of the currency. On April 23, 1895 J. D. Chaffee, as president and general manager of the silk company, in consideration of and to reduce this indebtedness, sold to the bank 107 cases of manufactured silk, the value of which cannot be accurately ascertained from the affidavits, but which is said to be about $20,000. They were then, or had been, shipped in New York City, where they were subsequently taken by Dooley into his possession, and removed to Brooklyn. On May 8, 1895, he, as receiver, attached the goods by an attachment which was subsequently dissolved. On May 30, 1895, he sold and assigned to Pangburn, who is a resident of the state of New York, notes of the silk company, not paid by this transfer, amounting to about $67,000, for the nominal consideration of $200, which sale Dooley made by virtue of an order of the circuit court of the Southern district of New York, with the approval of the comptroller of the currency, for the purpose of enabling a suit to be brought in the state of New York, by a resident of that state, in his own name, against the silk company, a foreign corporation. Pangburn did bring suit on said notes against the silk company on June 1, 1895, in the proper state court, obtained judgment for the full amount thereof, and an execution, which was levied by the sheriff of Kings county upon these cases of silk. The sale was stopped by this...