Hutchinson v. Otis

Citations

• 115 F. 937
• 53 C.C.A. 419
• 1902 U.S. App. LEXIS 4263

Syllabus

<p>1. Bankruptcy — Review by Appellate Court.</p> <p>The question whether proceedings relating to an adverse claim to a fund in the hands of a trustee in bankruptcy arise strictly on the bankruptcy side of the court, or should be regarded as within the rules governing summary intervening petitions, reserved.</p> <p>2, Same — Proof op Claim — Amendment.</p> <p>A court of bankruptcy may permit the amendment of a proof of claim after the expiration of the year allowed for proving claims, where there was sufficient to amend by in the original proof.</p> <p>5. Same — Relinquishment op Lien Through Mistake — Right to Reinstatement.</p> <p>A nonresident creditor of a bankrupt brought garnishment suits against him in other states within four months prior to the beginning of proceedings in bankruptcy, and obtained judgments, which he collected from the garnishees in the belief that the garnishments were valid. At the time of such payment both he and the garnishees knew of the bankruptcy, but it did not appear that the creditor knew that the bankr ruptcy proceedings were commenced within four months after his garnishments. Thereafter the seat of the bankrupt in a stock exchange was sold, upon the proceeds of which, under the rules of the exchange,, the creditor had a lien for his debt; but in the belief that he had received payment he waived his lien by an informal letter, and the proceeds were paid over by the exchange to the trustee in bankruptcy. The trustee having brought suits against the garnishees, they made demand on the creditor on his bond of indemnity, which he had given them, and he subsequently settled such suits by paying over to the trustee the amounts he had received. He then proved his claim against the estate in bankruptcy, and asked to be restored to his lien on the fund received from the stock exchange. Helé, that having acted apparently under a mistake of fact, by which no one had been prejudiced, he was equitably entitled to such relief.</p> <p>4 Same —