In re Reed

Citations

• 117 F. 358
• 1902 U.S. Dist. LEXIS 78

Syllabus

<p>1. Bankruptcy — Mortgage — Validity—Stipulation—Sale of Property-Proceeds— Contest in State Court — Setting Aside Stipulation— Authority of Attorney—Good Faith—Laches.</p> <p>According to a stipulation between a trustee in bankruptcy and the attorney for a mortgagee of the bankrupt’s property it was ordered in the federal court that the property be sold, the proceeds deposited in a bank, and that the trustee should sue in a state court to determine as to the validity of the mortgage, and that such determination should be final. After the rendition of a decree for the trustee in the state court the mortgagee moved by a substituted attorney that it be relieved of the stipulation with reference to the finality of the judgment, the mortgagee contending that the previous attorney had had no authority to make it, and that the mortgagee was ignorant thereof. It appeared that the whole matter had been left to the former attorney, and that the mortgagee knew the money when in the bank was there by some arrangement by which it was to be a subject of contest. Held, that the application was of no merit and too late.</p>