Tucker v. Curtin

Citations

• 153 F. 91
• 82 C.C.A. 225
• 1906 U.S. App. LEXIS 4582

Syllabus

<p>1. Judgment — Conobitsiveness—Use of Trust Funds by Bankrupts — Right of Beneficiary to Intervene.</p> <p>A testator directed tliat a fund should, bo held in trust, the income to be paid to a granddaughter during her lile, and appointed his son and grandson “executors and trustees” under the will. They qualified as executors, but not as trustees, and took possession of the trust property. They were also partners in business, and as such borrowed from themselves as executors or trustees a portion of the trust property. To secure the loan they attempted to transfer certain property to themselves as trustees, but on their subsequent adjudication as bankrupts such property was taken into possession by their trustee in bankruptcy. To his application to sell the property they objected on behalf of the beneficiary under the will; but their objection was overruled, and a sale ordered, but without prejudice to a new iietition for an accounting if the beneficiary, “or those who properly represent her,” should be so advised. Sueli a petition was filed by the bankrupts in her behalf, and was denied, after a hearing on the merits. Subsequently the beneficiary herself filed a petition for leave to intervene, which was denied on the grounds of laches and that the prior adjudication was conclusive. Held, that the petitioner, being a minor, was not chargeable with laches, and that the bankrupts, even If considered formal trustees, stood in such peculiar relation to the transactions involved that they were not persons who could “properly represent” her, for which reason she was not concluded by the adjudication on their petition.</p> <p>2. Same — Powers of Court — Setting Aside Prior Orders.</p> <p>The rule relating to the powers of ordinary judicial tribunals, limiting summary proceedings to the term at which judgment is entered, does not apply to proceedings in bankruptcy, in which the court may, at any time before the close of the proceedings, set aside orders previously made.<