DeMuth v. Faw

Citations

• 103 Wash. 279

Syllabus

<p>Bankruptcy — Jurisdiction — Insolvent Corporation — Claims Against Stockholders. After appointment of a trustee in bankruptcy for an insolvent corporation, creditors making claim against stockholders on their unpaid stock subscriptions must wage their causes in the bankruptcy proceeding, the Federal courts being vested with exclusive jurisdiction, and the trustee being charged with the duty of reducing unpaid stock subscriptions, if necessary, for the benefit of creditors.</p> <p>Same — Rights of Creditors — Claims. Creditors must file their claims with the trustee, and seek protection by appeal to the refereé, rather than prosecute independent actions because of dissatisfaction with the trustee’s acts.</p> <p>Courts — Jurisdiction—Relief. Where the state court had no jurisdiction of claims against a bankrupt, it must dismiss the cause without attempting to determine the merits which were exclusively within the jurisdiction of the Federal court.</p>