In re Hadden Rodee Co.

• Decision Date: 28 November 1904
• Parties: In re HADDEN RODEE CO.
• Court: U.S. District Court — Eastern District of Wisconsin

135 F. 886

In re HADDEN RODEE CO.

United States District Court, E.D. Wisconsin.

November 28, 1904

Bloodgood Kemper & Bloodgood, for petitioner.

W. A Hayes and Turner, Pease & Turner, for trustee.

On review of the order of the referee taking jurisdiction of a controversy presented on behalf of the Merchants' &amp Miners' Bank, as petitioner, claiming ownership of certain shares of mining stock by purchase for the bank through the bankrupt; such shares being in the hands of the secretary of the mining company for delivery to the owner. It is alleged that such secretary refuses to deliver possession without consent of the trustee in bankruptcy, who claims title or interest therein for the estate; and the relief sought is, in effect, determination of the ownership as between the petitioner and the trustee. The trustee raises objection that such controversy is not within the bankruptcy jurisdiction.

SEAMAN District Judge (after stating the facts).

The question of jurisdiction thus presented impresses me as free from difficulty, under the entire line of decisions by the Supreme Court in reference to the bankruptcy jurisdiction conferred by the present act, from Bardes v. Hawarden Bank, 178 U.S. 524, 20 Sup.Ct. 1000, 44 L.Ed. 1175, to Hewit v. Berlin Mach. Works, 194 U.S. 296, 24 Sup.Ct. 690, 48 L.Ed. 986, inclusive. The subject-matter of the petition is the title to or interest in property claimed by the trustee as part of the estate, and 'controversies in relation thereto, except as herein otherwise provided,' are expressly declared by Bankr. Act July 1 1898, c. 541, Sec. 2, subd. 7, 30 Stat. 545 (U.S.Comp.St. 1901, p. 3420), to be within the jurisdiction of courts of bankruptcy. As this is not a plenary suit, within the exceptions found in section 23 (30 Stat. 552 (U.S.Comp.St. 1901, p. 3431)), and the subject-matter is plainly cognizable in bankruptcy, the only inquiry is whether the adverse claimants as well are subject to the bankruptcy jurisdiction. Can this be doubted, when the one party is the trustee of the estate in bankruptcy, and the other voluntarily submits the controversy to the court for settlement? Surely the trustee, as the hand of the court in such matter, cannot withhold submission, if the consent of the adverse claimant confers jurisdiction for its determination. The authorities referred to concur in upholding jurisdiction in the bankruptcy court to that end when such consent plainly...