Ellis v. L. Hays Saddlery & Leather Co.

Citations

• 65 Kan. 174
• 69 P. 165
• 1902 Kan. LEXIS 33

Syllabus

<p>SYLLABUS BY THE COURT.</p> <p>Insolvent Debtor — National Bankruptcy Act — Chattel Mortgage — Injunction. The national bankruptcy act of 1898 went into effect on July 1 of that year, but its operation was suspended so that involuntary proceedings against a debtor could not be commenced until November 1. In August, 1898, a failing merchant gave a chattel mortgage on his stock of goods to secure a debt owing to the mortgagee, and the latter took possession. A general unsecured creditor (the plaintiff) then brought suit to enjoin a removal of the goods or their- sale, alleging that the mortgage was executed in fraud of the bankrupt law, and praying that: the property be held in statu quo until November 1, when proceedings in bankruptcy, which plaintiff alleged it intended to file against its debtor, could be made available. Held, that no cause of action for equitable relief was stated in the petition, and that a decree granting an injunction must be reversed.</p>