Riley v. First National Bank

Citations

• 81 Md. 14
• 31 A. 585
• 1895 Md. LEXIS 37

Syllabus

<p>Equity Practice — Dismissing Parties to the Suit — Estoppel by Decree —Insolvency—Assignment for Benefit of Creditors — Attaching Creditors.</p> <p>After certain persons have been made parties, plaintiff and defendant, in an equity suit, by order of the Court, upon a petition of the plaintiff alleging that they were necessary parties, and subsequent proceedings have been had in the cause, the solicitor of the plaintiff has no authority'to file an order with the Clerk directing the dismissal of the bill as to said plaintiffs or defendants, without having previously obtained the sanction of the Court.</p> <p>And when the bill has been so dismissed, without an order of Court, as to said parties, who were fully advised as to the character of the controversy, they are nevertheless bound by the decree finally passed in the cause.</p> <p>After A. had executed an assignment for the benefit of creditors, the appellants, creditors of A., sued out attachments on original process. Subsequently a bill in equity was filed to declare the assignment void for fraud, and for the appointment of a receiver. Upon an order Of the Court the appellants were made parties to the cause. A. was afterwards adjudicated an insolvent, and his trustee in insolvency was also made a party, and claimed the entire assets. After the demurrers to the bill were overruled and some of the defendants had answered, the appellants and other creditors who had sued out attachments against A. were dismissed from the suit by order of the solicitor of the plaintiff, who continued the suit in the name of other ' creditors. The Equity Court finally decreed that the assignment was not fraudulent in fact or in law, but that the title of the trustees under it yielded to the superior title of the trustee in insolvency, to whom the assets of A. were transferred. In the Insolvent Court an account was stated distributing the assets among all the creditors of A .pro rata. Appellants excepted on the ground that the assignm