Duff v. Hopkins

33 F. 599, 1887 U.S. Dist. LEXIS 132
CourtDistrict Court, W.D. Pennsylvania
DecidedNovember 7, 1887
StatusPublished
Cited by3 cases

This text of 33 F. 599 (Duff v. Hopkins) is published on Counsel Stack Legal Research, covering District Court, W.D. Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Duff v. Hopkins, 33 F. 599, 1887 U.S. Dist. LEXIS 132 (W.D. Pa. 1887).

Opinion

Acheson, J.

This is a suit in equity, brought'hy Levi Bird Duff, assignee in bankruptcy of Carrier & Baum, against Albert C. Hopkins. The case is complicated, and, for the proper understanding of it, a somewhat lengthy recital of facts is necessary.

John Carrier and Andrew F. Baum were adjudicated bankrupts by the district court of the United States for the Western district of Pennsylvania in June, 1874, and, in the following September, assignees of their estates -were appointed. Each of the bankrupts, at the commencement of the proceedings in bankruptcy, was the owner of the undivided one-third of four tracts of land, viz: Warrant No. 13, situated partly in Jefferson county and partly in Clearfield county, and Warrant Nos. 1988, 2009, and 3592, situated in the latter county, all in said district; but the titles to this real estate passed to the assignees incumbered by several judgments, which the First National Bank of Wellsville, Ohio, had obtained in the United States circuit court for said district against the bankrupts, respectively, and other judgments in the same court against the bankrupts, which were subsequently assigned to the bank. After the adjudication, under the leave of the bankrupt court, writs of scire facias to revive all said judgments were issued, with notice to Richard Arthurs, the then sole assignee of the bankrupts, and judgments of revival were entered in the circuit court in the years 1878 and 1879. With like leave executions against John Carrier were then issued out of the circuit court, and the marshal levied upon and sold to James'W. Reilly, the president of the bank, the Carrier interest, or undivided one-third, in said four tracts of land, and by his deed, dated August 25, and acknowledged in open court August 26, 1879, the marshal conveyed the same to said Reilly, who bought in trust for the bank. The bank also acquired tax titles to said lands after the adjudication in bankruptcy. The office of assignee having become vacant on April 12, 1880, by the resignation of Richard Arthurs, Levi Bird Duff, on that day, was appointed the assignee in bankruptcy. On January 5, 1882, the assignee last named filed a bill in equity in the circuit court of the United States [601]*601for said district, to No. 11 May term, 1882, against the bank and other defendants, charging lliat some of the aforesaid judgments were without consideration, and ail of them were fraudulently entered originally; that Arthurs, the assignee at the time the judgments were revived, was ignorant of their collusive character, and of the defenses thereto; and praying that said judgments and the revivals thereof, and executions thereon, and the title acquired by the marshal’s sale, and also said tax titles, be declared null and void. The bank filed an answer in denial of the materia] allegations of the bill. Pending the taking of testimony in that suit, on November 28, 1888, the assignee in bankruptcy transmitted to the bank an unsigned paper'containing terms of settlement, of which the following is a copy:

“Liquidate judgments of Wolls'oille Bank v. Baum, and against Carrier, at $45,000 by amicable sai. fa. to revive, with a stay on j for 6 months and l; for one year. This to be in full of all claims of said bank against Carrier & Baum, as a firm, and against John Carrier and A. Baum, individually, and upon payment of these judgments the bank to surrender all claims which they bold against said parties as a firm or individually, whether by transfer by Smith & McGroggor, or otherwise, and for taxes or charges paid on their lands. The bank also to transfer to the assignee of Carrier & Baum tlie judgments it holds against Robert Osborn on the same paper they have judgment against Baum. The assignment to be made on the payment of the Baum judgments to the bank by the assignee. The bank also to convey to the assignee the Carrier title acquired by sale of U. S. marshal. Also the tax titles it holds on Carrier & Baum lands in Clearfield county. Also all interest that may be held by McLean, or those claiming under him, (except A. F. Baiun and wife,) in the Carrier & Baum lands, (excepting the of 2009.) Also to transfer its interest in Osborn’s land, acquired by deed from U. B. marshal, viz., McGhea & McG-ary lands, Osborn tract, Garrison tract, and Mason tract, purchased in common with the Pittsburgh Savings Bank. The bank also to discontinue its suits against tlie assignee in Clearfield county, the assignee agreeing that, in the ejectment case all costs, including the receiver’s expenses, shall be paid out of the fund in the receiver’s hands, and that upon the division of the fund thereafter the Carrier & Baum •§■ shall belong to the assignee, and he shall take thereout sufficient to pay the costs in the two partition cases brought by the bank, (amount not known, but small, certainly not exceeding $100,) and be shall also take out of said two-thirds belonging to Carrier & Baum a sufficient sum to pay the purchase money yet due on tract No. 13, viz., $3,511.35, and the remainder of said Carrier & Baiun share shall bo paid to the Weilsville Bank and be a credit on their debt of $45,000, they to have the option to credit it on any one of their judgments. The assignee to discontinue, or have dismissed at his costs, the bill against said bank, and others, now pending in the U. S. court. This settlement to be submitted to and approved by tlie district court of tlie United States, Western district. The bank io give the assignee notice on Friday evening, November 80th, of their acceptance or refusal of this settlement. ”

The minute-book of the bank, under date of November 30, 1883, shows a meeting of the board of directors, at which eight members were present, and contains the following entry:

“W. M. Hamilton submitted a statement furnished by Col. Buff, giving an outline of the basis of settlement of the claims against Carrier & Baum, etc., [602]*602(see statement on file,) to which all the members present gave their hearty assent.”

The parol testimony shows that the “statement ” referred to in the said minute was the above-quoted paper, or a copy thereof. On the date last mentioned Mr. Reilly, the president of the bank, sent the following telegram to the bank’s counsel at Pittsburgh:

“Wellsville, Onio, November 30, 1883.
“To Brown & Lambie, Attys., Fifth Ave., Pitts., Pa.: Our board have agreed to accept the proposition of L. B. Duff, assignee of Carrier & Baum.
“J. W. Reilly, Prest.”

The contents of this telegram were communicated to the assignee by Brown & Lambie the same day, or soon thereafter.

The bank on February 27,1882, had brought an action of ejectment in the court of common pleas of Clearfield county for the tract No. 2,009 against the Sandy Lick Gas-Coal & Coke Company (which was engaged in mining coal therefrom) and others; and in that suit a receiver had been appointed to collect the royalties payable on the mining operations. On December 6,1883, under an order of that court, entered pursuant to an arrangement between the assignee in bankruptcy and the attorney of record of the bank acting by its instructions, the sum of $3,686.07 (the one-third or Carrier’s- share) of the net fund in the receiver’s hands was paid to the bank, and the like sum of $3,686.07 was paid to L. B. Duff, as assignee of Baum.

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Cite This Page — Counsel Stack

Bluebook (online)
33 F. 599, 1887 U.S. Dist. LEXIS 132, Counsel Stack Legal Research, https://law.counselstack.com/opinion/duff-v-hopkins-pawd-1887.