First International Bank v. Lee

141 N.W. 716, 25 N.D. 197, 1913 N.D. LEXIS 114
North Dakota Supreme Court·Decided April 23, 1913·Published·Cited by 10 cases

Opinion

Bruce, J.

(after stating the facts as above). The defense of bankruptcy proceedings or of a discharge in bankruptcy is personal to the bankrupt. 5 Cyc. 405; Palmer v. Merrill, 57 Me. 26 ; Moyer v. Dewey, 103 U. S. 301, 26 L. ed. 394 ; Re Burton, 29 Fed. 637. There is nothing in the record that tends to show that the principal debtor ever sought to avoid the attachment proceedings in this case by pleading the proceedings in bankruptcy. It is true he alleges that the principal defendant filed a petition in bankruptcy on the 17th day of January, 1905, and in such proceedings claimed as exempt the identical property for the value of which said action has been instituted, and that in the schedule of property and petition of the said Schuler is listed the claim of the plaintiff, for which claim the plaintiff subsequently secured judgment against the said John Schuler, and that the plaintiff listed and filed in said bankruptcy court the claim for which the said judgment was procured against said John Schuler, and on the 17th day of February, 1905, appeared in said bankruptcy court and proved said claim before Guy L. Wallace, referee in bankruptcy, and that on the 10th day of May, 1905, the property involved in this action was set over by said bankruptcy court to the said John Schuler as and for his exemptions. In the case of Burcell v. Goldstein, 23 N. D. 257, 136 N. W. 243, however, we held that § 67 — f of the Federal bankruptcy act of 1898 (act of July 1, 1898, chap. 541, 30 Stat. at L. 565, U. S. Comp. Stat. 1901, p. 3450) only avoids liens upon property which passes to the trustee in bankruptcy, and over which the bankruptcy court could and has assumed jurisdiction. We further held that, by setting aside the property as exempt, such court will be held to have disclaimed any intention of assuming or of having ever assumed jurisdiction over it, and that it cannot be said to have passed at any time to the trastee in bankruptcy; nor would the fact that on account of such adjudication in bankruptcy a personal judgment cannot be rendered against the defendant in a district court, alter the case or preclude the foreclosure of the lien, as the jurisdiction of the district court is in rem, and not in personam. Under that case and the numerous [202] authorities cited therein, the discovery of the bankruptcy proceedings was a discovery of evidence which was absolutely immaterial, and, even though due diligence in its procurement was shown — which is not the fact, as the petition merely alleges a conclusion of law — no new trial could have been properly based thereon.

This leads us to a consideration of the question as to whether the trial court erred in excluding from the evidence Exhibit A, which is a claim of exemptions served by the wife of the principal defendant, one Katie Schuler, on the 29th day of July, 1905, and something over seven months after the notice of the levy of attachment. The defendant argues that this evidence was competent and material in spite of the fact that § 7124, Rev. Codes 1905, requires such claims to be served within three days after notice of the levy. He states that Katie Schuler had supposed that her husband,' John Schuler, had made claims for his exemptions, — in fact, that she had been so informed by him, and that she did not learn the contrary until the 27th day of July, 1905. He argues that by the statute (§ 7122) the wife is not limited to the three-day period, and may, in case her husband fails to assert the right, serve her claim on behalf of herself and her family within a reasonable time thereafter. He claims that under the peculiar circumstances disclosed by the affidavits, she acted within such reasonable time. He also maintains that in so far as the claim of exemption filed by the original defendant, John Schuler, is concerned, that the statute merely requires that the same shall be served within three days after notice from the officer which is required to be given by § 7124, and that there is no evidence on the trial that that notice had ever been given.

Free access — add to your briefcase to read the full text and ask questions with AI

First International Bank v. Lee, 141 N.W. 716, 25 N.D. 197, 1913 N.D. LEXIS 114 (N.D. 1913).

141 N.W. 716 (First International Bank v. Lee) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Fandrich v. D & S Hydraulics Co. (In Re Fandrich)
63 B.R. 250 (D. North Dakota, 1986)
Albrecht v. Albrecht
99 N.W.2d 229 (North Dakota Supreme Court, 1959)
Fidelity Union Casualty Co. v. Hanson
44 S.W.2d 985 (Texas Commission of Appeals, 1932)
Ellis v. Fiske
60 N.D. 142 (North Dakota Supreme Court, 1930)
O'Hare v. Bismarck Bank
178 N.W. 1017 (North Dakota Supreme Court, 1920)
Mennell v. Wells
149 P. 954 (Montana Supreme Court, 1915)
Healy v. Bismarck Bank
153 N.W. 392 (North Dakota Supreme Court, 1915)
Mandan Mercantile Co. v. Sexton
151 N.W. 780 (North Dakota Supreme Court, 1915)