H. B. Claflin Co. v. Furtick

Citations

• 119 F. 429
• 1902 U.S. App. LEXIS 5283

Syllabus

<p>1. Foreclosure of Chattel Mortgage—Temporary Receivership—Power of Court.</p> <p>A federal court of equity has power, on a preliminary application, without notice, in a suit to foreclose a chattel mortgage, to take the mortgaged property into its custody through the marshal or a receiver for the purpose of preserving the status quo, where, in the exercise of its discretion, it deems such action necessary to protect the rights of the parties.</p> <p>2. Same—Review of Orders in Same Court.</p> <p>A federal judge, on the return to a rule on a defendant in a foreclosure suit to show cause why a receiver should not be appointed and an injunction granted, cannot review the action of another judge, sitting in the same court, in appointing a temporary receiver and entering a restraining order pending the hearing .on such rule.</p> <p>8 Same—Parties—Mortgage to Trustee.</p> <p>Where a chattel mortgage securing a single debt is taken to a third person named as a trustee, he is merely an agent of the creditor, and the latter may maintain a suit to foreclose in his own name.</p> <p>A Same—Jurisdiction in Equity—Statutory Remedy.</p> <p>A federal court of equity is not without jurisdiction of a suit to foreclose a chattel mortgage because the mortgagee had the right under the state statute to take possession of and sell the property on condition broken.</p> <p>5. Same—Appointment of Receiver—Grounds.</p> <p>A chattel mortgage on a stock of goods gave the mortgagee the right of possession through a cashier, to be appointed by the trustee to whom the mortgage was executed, who was to receive the proceeds of all sales, and, after deducting sufficient to pay current expenses, to apply the remainder on the mortgage debt. The mortgagor made a tender of the amount he claimed to be due on the mortgage, and on its refusal discharged the cashier and took possession of the stock. By operation of law also the mortgagee was entitled to possession on a breach of the conditions of the mortg