Whitney v. Wenman

Citations

• 140 F. 959

Syllabus

<p>1. Bankruptcy — Nature of Proceedings in Administration of Estate— Persons Bound.</p> <p>While an adjudication of bankruptcy in an involuntary proceeding is a judgment in rem, in the sense that it determines the status of the bankrupt, the ordinary proceedings taken in a bankruptcy proceeding are not proceedings in rem, and do not bind persons who are not parties thereto. '</p> <p>2. Same — Suit by Trustee — Res Judicata.</p> <p>An order of a court of bankruptcy, passing the accounts of receivers of a bankrupt estate in which they have credited themselves with property surrendered to third persons who claimed the same, is not an adjudication of the right of such persons to the property, nor of the question of their liability therefor to the trustee of the bankrupt estate, which will bar a suit by him to recover the same.</p> <p>3. Warehousemen — Warehouse Receipts — Rights of Bona Fide Transferee.</p> <p>Warehouse receipts are only quasi negotiable instruments, and the fact that a person takes a transfer of them in good faith gives him no right to the property on which they purport to be issued as against the real owner, if it was not in fact in the custody or possession of the warehousemen when the receipts were issued.</p> <p>4. Bankruptcy — Suit by Trustee — Estoppel.</p> <p>• The fact that a trustee in bankruptcy consented to an order discharging receivers of the estate does not estop him from maintaining a suit against third persons to recover for property transferred to them by such receivers.</p>