Cleminshaw v. International Shirt & Collar Co.

Citations

• 165 F. 797
• 1908 U.S. Dist. LEXIS 184

Syllabus

<p>1. Bankruptcy (§ 293*) — Jurisdiction op Courts — Suit to Establish Lien on Bankrupt’s Property.</p> <p>Under Bankr. Act July 1, 1898. c. 541, § 2, 30 Stat. 545 (U. S. Comp. St. 1901, p. 3420), which vests District Courts as courts of bankruptcy with jurisdiction to “cause the estates of bankrupts to be collected, reduced to money and distributed and determine controversies in relation thereto,” such a court has jurisdiction of a suit in equity to establish a lien upon property of a bankrupt the title to which has passed to his trustee and which is in the possession of such court for administration.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. §§ 410, 411; Dec. Dig. § 293.*</p> <p>Jurisdiction of federal courts in suits relating to bankruptcy, see note to Bailey v. Mosher, 11 C. C. A. 313.]</p> <p>2. Bankruptcy (§ 302*) — Suit Against Trustee — Sufficiency op Bill.</p> <p>A bill against a trustee in bankruptcy of a corporation which alleges facis showing that complainant was induced by the fraudulent representations of the bankrupt, through its officers having apparent authority, to release a mortgage on its property, and offers to restore the consideration received therefor, states a cause of action for equitable relief by a restoration of the lieti, the question of the intervening rights of creditors being one to be determined on the hearing.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. § 456; Dee. Dig. § 302.*]</p>