In re Burton

4 F. Cas. 863, 9 Ben. 324, 17 Nat. Bank. Reg. 212, 1878 U.S. Dist. LEXIS 118
CourtDistrict Court, S.D. New York
DecidedFebruary 16, 1878
StatusPublished
Cited by1 cases

This text of 4 F. Cas. 863 (In re Burton) is published on Counsel Stack Legal Research, covering District Court, S.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Burton, 4 F. Cas. 863, 9 Ben. 324, 17 Nat. Bank. Reg. 212, 1878 U.S. Dist. LEXIS 118 (S.D.N.Y. 1878).

Opinion

BLATCHFORD, District Judge.

On the 10th of January, 1878, creditors of David G. Burton and George Watson filed in this court a petition in bankruptcy against them. The petition alleges, that, for a period of six months next preceding the date of its filing, Watson resided in the city of New York, and Burton resided at Cumberland, Canada, and that they, as copartners, under the name of Burton & Watson, carried on business in the city of New York, as lumber merchants, for a period of six months next preceding the filing of such petition. An order to show cause was issued on the petition, returnable January 19th, 1878. On such return day separate written consents, signed by each of the debtors, were filed, acknowledging service of the petition and order to show cause, and consenting to an adjudication. The consent of Burton was sworn to and acknowledged in Canada. On such return day, and at the same time with the presentation of such consents, a petition was presented to the court by the Union Bank of Lower Canada, a Canadian corporation, claiming to be a creditor of the copartnership of Burton & Watson, and to have obtained, by proceedings in the supreme court of New York, before the filing of said petition, a lien on property of the said copart-nership within this district, by process of mesne attachment, in a suit against the members of said firm, to recover debts due by said firm to said bank. The petition of the bank sets forth, “that said Burton is now, and for two years last past has been, a resident of said Cumberland, in said Canada.” The bank prays that it may be allowed to intervene and oppose the bankruptcy petition, and that it may be denied and refused on the ground, among others, that both of the debtors are not residents of the United States. A motion is now made to dismiss the bankruptcy petition for want of jurisdiction, on the ground that, when such petition was filed. Burton did not reside within the jurisdiction of the United States. [864]*864The motion is heard on an agreed statement of facts, to the effect, that the debtors are and have been partners, under the name of Burton & Watson, for several years, engaged in manufacturing and selling lumber in Cumberland, Canada, and also for twenty months or so last past in this district; that Watson has resided during the past year in this district; that Burton has, during the past year, and for many years past, resided at Cumberland, Canada, and is not, and never has been, a resident or a citizen of the United States, or domiciled therein, or an inhabitant thereof, except that he has sometimes, within the said twenty months, come within this district to attend to the partnership business, and was so within this district during some part of the month of December last, when he signed and swore to a petition in voluntary bankruptcy, in conjunction with Watson, intended to be filed in this court; that the property attached at the instance of the bank is in this district; and that the question of jurisdiction as affected by residence, domicil, and inhabitancy, is the only question now raised.

Section 5014 of the Revised' Statutes, in regard to voluntary bankruptcy, provides, that, “if any person residing within the jurisdiction of the United States, and owing debts provable in bankruptcy exceeding the sum of three hundred dollars, shall apply by petition addressed to the judge of the judicial district in which such debtor has resided or carried on business for the six months next preceding the time of filing such petition, or for the longest period during such six months, setting forth his place of residence, his inability to pay all his debts in full, his willingness to surrender all his estate and effects for the benefit of his creditors, and his desire to obtain a discharge from his debts, and shall annex to his petition a schedule and inventory and valuation, in compliance with the next two sections, the filing of such petition shall be an act of bankruptcy, and such petitioner shall be adjudged a bankrupt.” Section 5021, in regard to involuntary bankruptcy, provides, that “any person residing and owing debts as aforesaid, who” shall do any one of certain specified acts, “shall be deemed to have committed an act of bankruptcy, and, subject to the conditions hereinafter prescribed, shall be adjudged a bankrupt on the petition, &c.” The expression “residing and owing debts as aforesaid,” in section 5021, plainly means, as set forth in section 5014, “residing within the jurisdiction of the United States, and owing debts provable in bankruptcy exceeding the amount of three hundred dollars.” Equally, under section 5021 and under section 5014, the debtor must reside within the jurisdiction of the United States when the petition in bankruptcy is filed. The construction of section 5021 has always been, that the proper court to which the petition in involuntary bankruptcy is to be presented, is -to be determined by the same test which is prescribed in section 5014 in regard to voluntary bankruptcy. But, in addition to presenting the petition to the proper court, as determined by the prescribed test, that it must be addressed to the judge of the judicial district in which the debtor has resided or carried on business for the six months next preceding the time of filing the petition, or for the longest period during such six months, the debtor must be a person who, at the time the petition is filed, resides within the jurisdiction of the United States, whether the petition be one by a debtor or one against a debtor. The debtor may never have resided in the district where the petition is filed, by or against him, and may not reside in that district when the petition is filed, and that district may be the district in which he has carried on business for the six months next preceding the time of filing the petition, but, in addition, the statute requires that he shall, when the petition is filed, reside within the jurisdiction of the United States.

Section 5014 provides, that the petition in voluntary bankruptcy shall set forth the place of residence of the debtor. Section 5021 contains no such requirement as to the petition in involuntary bankruptcy. By general order No. 32, of April 12th, 1S75, it is provided, that the several forms specified in the schedules annexed to the general orders previously established by the supreme court, “for the several purposes therein,” that is, in the forms, “stated, shall be observed and used, with such alterations as may be necessary to suit the circumstances of any particular case.” Form No. 1 is headed, “Petition by Debtor.” It contains no statement of the place of residence of the debtor, other than what may be found in the words: “The petition of-of the-of-in the county of- and state of-and district aforesaid.” Form No. 54 is headed, “Creditor’s Petition.” It contains no statement of the place of residence of the debtor, nor any statement that he is “of” any place. Each form contains a statement of the period during which the debtor has resided or carried on business in the district. Blanks printed from these forms, and corresponding therewith, have been used in all the bank-mptcy courts, and it is not doubtful that there must be several thousands of petitions on file, in both voluntary and involuntary cases, in the various districts in which the proceedings have been carried to a conclusion, resulting in discharges of bankrupts, and in which the title to large amounts of property has passed, and in which proceedings for composition have been had and carried out, where the petitions wholly fail, in involuntary cases, to state that the debtor resides within the jurisdiction of the United States, and fail, in voluntary cases, to make that statement otherwise than by stating that the debtor is “of” a certain place.

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Cite This Page — Counsel Stack

Bluebook (online)
4 F. Cas. 863, 9 Ben. 324, 17 Nat. Bank. Reg. 212, 1878 U.S. Dist. LEXIS 118, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-burton-nysd-1878.