Avery v. Cleary

Citations

• 132 U.S. 604
• 10 S. Ct. 220
• 33 L. Ed. 469
• 1890 U.S. LEXIS 1877

Syllabus

<p>On the facts, as stated in the opinion of the court, it is held, that this suit is one between an assignee in bankruptcy and one claiming an adverse interest touching the property which is the subject of controversy, within the meaning of Rev. Stat. § 5057, prescribing a limitation for the commencement of such an action.</p> <p>The omission by a bankrupt to put upon his schedules, or the omission by him or by his administrator to disclose to his assignee in bankruptcy the existence of policies of insurance on his life which had been taken out by him, and had, before the bankruptcy, been assigned to a trustee for the benefit of his daughters, does not amount to a fraudulent concealment of the existence of the policies, so as to take an action against the administrator (who was also guardian of the daughters) to recover from him the amount of insurance paid to him as administrator, out of the operation of the limitation prescribed in Rev. Stat. § 5057.</p> <p>Mere ignorance of the existence of a cause of action by an assignee in bankruptcy does not remove the bar against such action prescribed by a statute of limitation; but, in order to set aside such bar, within the rule as announced in Bailey v. Glover, 21 Wall. 312, there must be no laches on the part of the assignee in coming to the knowledge of the fraud which is the foundation of the suit.</p>