Newman v. Fisher
| Decision Date | 29 January 1873 |
| Parties | AMANDA NEWMAN, By Her Next Friend, L. P. D. Newman v. WILLIAM A. FISHER, Garnishee of The Baltimore County Dairy Association. |
| Court | Maryland Court of Appeals |
Appeal from the Court of Common Pleas of Baltimore City.
The case is stated in the opinion of the court.
The cause was argued before BARTOL, C.J., BOWIE, ALVEY and ROBINSON, JJ.
L P. D. Newman and B. C. Barroll, for the appellant.
The District Court had no jurisdiction to pass upon the application in bankruptcy, its proceedings were coram non judice--and wholly inoperative, null and void. And if this be true, any decree which the court might pass in the premises, could not be set up as a defense by the garnishee against condemnation of funds in his hands, of such association duly attached.
The District Court of the United States, sitting as a court in bankruptcy exercises a limited, statutory, special jurisdiction. In adjudicating a party a bankrupt, the facts giving the court jurisdiction must appear on the face of the record--otherwise its decree is coram non judice and void. It is apparent from the record in the Dairy Association case, that the court had no jurisdiction to adjudicate the Association a bankrupt, because the Act of Congress requires that the petition shall be filed on behalf of the corporation, " by an officer duly authorized by a vote of a majority of the corporators present at any legal meeting called for the purpose." Bankrupt Law, sec 37.
The demurrer in this case admits the fact alleged in the replication that "the said W. F. Fundenberg was not duly authorized to file (the petition) by a vote of the majority," etc. Wherefore the District Court was without jurisdiction to adjudicate the Association a bankrupt; its decree to that effect was null and void.
The plea of "bankruptcy" set up by the garnishee was bad--and judgment on the demurrer ought to have been for the appellant--(the plaintiff below.) Matter of Lady Bryan Mining Co. 2 Abbott, C. C. 527; Gray v Larrimore, 2 Abbott, C. C. 548.
In case of special jurisdiction, the facts giving jurisdiction should appear on the face of the record. Boarman v. Israel, 1 Gill, 381; Taylor v. Bruscup, 27 Md. 226; Mears v. Remare, 33 Md. 250; Armstrong v. Hagerstown, 32 Md. 56; Harris v. Hardeman, 14 How. 338, 343; Williamson v. Berry, 8 How. 540; Thompson v. Tolmie, 2 Pet. 163; Thatcher v. Powell, 6 Wheat. 127; Bank v. Judson, 4 Selden, 259; Starbuck v. Murray, 5 Wend. 158.
William A. Fisher and J. Morrison Harris, for the appellee.
The courts of the United States, although of limited, are not of inferior jurisdiction; they have exclusive and paramount jurisdiction over the subject matter of bankruptcy, and have the exclusive authority to determine the mode of the exercise of such jurisdiction; the proceeding against the bankrupt association in the Bankrupt Court is one " in rem"--and the jurisdiction cannot be controverted in this action by the plaintiffs. McCormick v. Sullivant, 10 Wheat. 192; Shawhan v. Wherrit, 7 How. 627; Raborg v. Hammond, 2 H. & G. 42; Van Nostrand v. Carr, 30 Md. 128; Bankrupt Law, sec. 1-5; Corry v. Ripley, 57 Maine, 69; Bump's Bankruptcy, 244, note b, and cases cited; Taylor v. Carryl, 20 How. 594-5; U.S. v. Booth, 21 How. 506; Freeman v. Howe, 24 How. 450; Brown v. Wallace, 4 G. & J. 495-6.
The fund, being held by the garnishee as assignee under an appointment of the United States Court, cannot be withdrawn from his custody by the act or process of the State Court. Wiswall v. Sampson, 14 How. 65-6; Peale v. Phipps, 14 How. 368; Brown v. Wallace, 4 G. & J. 495-6; U.S. v. Booth, 21 How. 523; Harris v. Dennie, 3 Pet. 292.
The provisions of sec. 37 of the Bankrupt Act are directory merely, and the petition having been filed by the authority of the president and directors, who are competent to do all acts in relation to conducting and closing the business of the corporation, the Bankruptcy Court having jurisdiction over the subject matter, acquired it also over the party; and in fact, the District and Circuit Courts have both decided to exercise and retain jurisdiction in the matter. Bankrupt Law, sec. 37.
An attachment was issued on judgment recovered by the appellant against The Baltimore County Dairy Association, and laid in the hands of the appellee, as garnishee.
The garnishee pleads, that prior to the issuing of the attachment, the Association had been duly declared and adjudged to be a bankrupt by the District Court of the United States for the State of Maryland, and that the funds in question are held by him as assignee in bankruptcy.
To this plea the appellant replies that the Association had been adjudicated a bankrupt by the District Court, upon a petition filed by an officer of said Association, authorized to do so by a vote of the directors, and not by the vote of a majority of the corporators, at a meeting called for that purpose.
To this replication the garnishee demurred, and this appeal is taken from the judgment of the court sustaining the demurrer.
The appellant contends that the District Court had no jurisdiction to adjudicate the...
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