Leadville Coal Co v. McCreery
| Decision Date | 09 November 1891 |
| Citation | 35 L.Ed. 824,141 U.S. 475,12 S.Ct. 28 |
| Parties | LEADVILLE COAL CO. et al. v. MCCREERY et al |
| Court | U.S. Supreme Court |
Bill by the Lake Superior Iron Company against Brown, Bonnell & Co., a corporation organized under the laws of Ohio, for the appointment of a receiver and the sale of its property. Heard below on exceptions to the master's report and on motion to confirm the sale. Decree of confirmation. 44 Fed. Rep. 539. The Leadville Coal Company and Charles S. Worden, creditors, and George M. Ayer and Amy G. Ayer, stockholders, appeal. Affirmed.
STATEMENT BY BREWER, J. The facts in this case are these: On February 21, 1883, a suit was commenced in the circuit court of the United States for the northern district of Ohio, by the Lake Superior Iron Company and others against Brown, Bonnell & Co., a corporation having large and extensive iron-works. A receiver was then appointed, who took possession of the property of the company; and such proceedings were thereafter had that in February, 1886, a decree was entered ascertaining the claims of each creditor who had appeared and proved his claim, 176 in number, and directing a sale of the property. From that decree the defendant appealed to this court. On the hearing of the appeal the decree was affirmed, (Brown v. Iron Co., 134 U. S. 530, 10 Sup. Ct. Rep. 604,) and a mandate sent to the court below directing it to carry the decree into execution. An order of sale was thereafter issued, and the property sold, and purchased by the present appellees, acting as trustees for all the creditors who chose to enter into a proposed new corporation; and into such corporation nearly all the creditors, over 96 per cent. in amount, entered. On the coming in of the report of the master, a decree was entered confirming the sale, (44 Fed. Rep. 539;) from which decree these appellants have taken this appeal. Two of the appellants, the Leadville Coal Company and Charles S. Worden, claimed to have been creditors of Brown, Bonnell & Co., and the other two to have been stockholders in that corporation.
Henry Crawford, for appellants.
C. C. Baldwin and C. D. Hine, for appellees.
The first contention of appellants is that by proper proceedings in the court of common pleas of Mahoning county, Ohio, the corporation defendant, Brown, Bonnell & Co., had been, on July 12, 1889, after the original decree in the circuit court of the United States, and before the hearing of the appeal by this court, judicially dissolved, and one Hallett K. Taylor appointed receiver, and charged with the statutory duties of holding, managing, and disposing of all the corporate assets, and distributing them among creditors; and that thereafter the circuit court of the United States ought not to have proceeded further, but should have turned the property over to such statutory receiver, in order that the property might be distributed under the direction of the state court. The argument is that the judicial decree of dissolution of the corporation, the sole defendant, was equivalent to the death of an individual defendant; and that all subsequent proceedings in reference to the disposition of the property and assets of this deceased defendant must be had according to the laws and in the courts of the state creating the corporation. It is worthy of notice that the case in which the decree of dissolution was entered was not commenced till long after this suit was begun and the receiver had taken possession of the property; that the receiver thus appointed by the state court does not himself come into this court and ask possession of this property; and also that the state court, in its decree of dissolution, expressly recognized the possession of the ...
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...and prove their claims, and to be heard on the questions involved, will be bound by the adjudication. Leadville Coal Co. v. McCreery, 141 U. S. 475, 12 S. Ct. 28, 35 L. Ed. 824; Supreme Tribe of Ben-Hur v. Cauble, supra; Irwin v. Missouri Bridge & Iron Co. (C. C. A.) 19 F.(2d) 300, It is ur......
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...appeal taken from the order of sale and not upon an appeal from the subsequent confirmation. See, e. g., Leadville Coal Co. v. McCreery, 141 U.S. 475, 12 S.Ct. 28, 35 L.Ed. 824 (1891) (separate appeals taken from both orders); Sage v. Central R. R., 96 U.S. 712, 24 L.Ed. 641 (1878) (separat......
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...have allowed separate appeals of the judgment of foreclosure and the order confirming the sale. See Leadville Coal Co. v. McCreery, 141 U.S. 475, 478–79, 12 S.Ct. 28, 35 L.Ed. 824 (1891) (“[W]e cannot fail to observe that the main scope and purpose of this appeal seem to be to relitigate qu......
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An historical analysis of the binding effect of class suits.
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