In re Jayne

28 F. 419, 1886 U.S. Dist. LEXIS 121
CourtDistrict Court, S.D. New York
DecidedJune 26, 1886
StatusPublished
Cited by2 cases

This text of 28 F. 419 (In re Jayne) 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 Jayne, 28 F. 419, 1886 U.S. Dist. LEXIS 121 (S.D.N.Y. 1886).

Opinion

Brown, J.

Upon examination, I am satisfied that I have -no jurisdiction to entertain a summary petition by Mr. Jayne, as informer, to adjudicate upon his rights, as against the United States, under the act of 1867. If the petition were based upon the act of 1874, to recover a suitable compensation, this court would have jurisdiction to determine the matter by petition, if the case were brought within section 6 of that act. But the claim in this cas6 is to a moiety of the proceeds recovered under section 1 of the act of March 2, 1867. Under that act there is no authority in this court to examine informers’ claims in a summary way by petition, nor, so far as I know, was there any such authority until the act of June 22,1874, except as an incident to some suit, resulting from the informer’s efforts, and while the court was in custody of the proceeds collected in that cause. In the case of U. S. v. George, 6 Blatchf. 37, the proceeds of the judgment had been paid into court, and awaited the order of the court; and such was the fact in all the cases there referred to. Such is not the case here. There is no fund in the custody of the court, or under its control, in the suit brought by the procurement of the informer. That suit was a suit in personam, and resulted, in 1872, in a judgment of about $100,000 in favor of the United States. Nothing has ever been collected in that suit itself. There is no money in the court to the credit of that cause, and none is likely to be. The United States proved its demands as a creditor against the bankrupt’s estate, and the only money that the United States will receive will be received simply as a creditor of the bankrupts, upon a distribution and payment by the assignee in bankruptcy, if any such payment should be ordered and made. The informer has no claim against the bankrupts, nor any demand affecting the amount of the bankrupts’ assets, or the amount to be distributed by the assignee; and hence no claim of which the court can take cognizance by petition in bankruptcy. He has nothing but a claim against the United States, a creditor of the bankrupts, and there is no jurisdiction in this court to entertain, by petition, a mere claim of one creditor against another creditor entitled to a distribution in bankruptcy. [421]*421Any decision I might make of the question on which a decision is desired, namely, whether the informer has a right to payment from the United States, under the moiety act of 1867, as an interest vested in him prior to the repeal of the act of 1874, would be binding.upon neither party, and the petition should therefore be dismissed.

Upon a subsequent petition under the act of 1874, the following decision was rendered:

The petitioner asks that this court shall take proceedings under section 6 of the act of June 22, 1874, (Supp. Rev. St. 78,) to examine his claim, as an informer, upon certain funds collected by the United States from Vetterlein & Co., under a payment and distribution by the assignee in bankruptcy upon a judgment for violating the revenue laws, obtained, in 1872, in consequence of his information, and which judgment was proved as a claim in bankruptcy. The petitioner alleges that he alone gave the first actual information of the fraud upon which the claim of the government against the bankrupts was based. But it appears that a few weeks afterwards, and on or about the first of August, 1869, a written claim was filed with the secretary of the treasury for an informer’s share, which was signed by the petitioner and three other persons. Upon a claim of the latter to compensation as informers, recently made upon the secretary of the treasury, since the hearing on the previous petition, in respect to a considerable sum recently paid into the treasury by the assignee in bankruptcy, the question, as between the petitioner alone and the other informers as alleged joint claimants, was submitted by the secretary of the treasury to the court of claims for decision, under section 2 of the act of March 8,1888, or of section 1063 of the Bevised Statutes. The petitioner thereupon filed his petition in the court of claims, praying that he be declared the sole informer, and alone entitled to compensation as such. That court subsequently decided, upon careful consideration, against the petitioner’s exclusive claim, and held that all the four, including the "petitioner, were entitled to compensation jointly.

As this was an adjudication upon the very question now sought to be presented to this court, it is manifestly res adjndicata, provided the court of claims had jurisdiction of the cause. The petitioner’s counsel now urge that the proceeding before the court of claims was coram non judice, because, under the sixth section of the act of June 22, 1874, above referred to, it is declared that “no payment shall be made to any person furnishing information in any case wherein judicial proceedings shall have been instituted, unless his claim for compensation shall have been established to the satisfaction of-the court or judge having cognizance of such proceeding, and the ¡value of his services duly certified by said judge or court for the .informa[422]*422tion of the secretary of the treasury;” and because no such proceedings were ever taken, prior to the proceedings before the secretary and the court of claims, or at any time, in the district court of this district, which was the court in which the judgment against Vetter-lein & Co. was obtained.

This application is not entitled to consideration beyond the strictest legal right, after the petitioner has made his application to the secretary of the treasury, has once obtained an award, and afterwards filed his petition in the court of claims, and obtained a careful and well-considered adjudication on the merits, without any intimation of any doubt of the jurisdiction either of the secretary, or of that court, to proceed with the matter independently of section 6 of the act of 1874. The petitioner’s petition to the court of. claims sets out fully all the facts upon which he now relies, and there is neither protest nor objection to the jurisdiction of that court to determine the question upon its merits. There is no fact that was not as well known to the petitioner then as now, nor is there anything new in his application to this court. If objection to the want of jurisdiction could be waived, the petitioner’s acts in this case certainly amount to such a waiver. Upon the argument I had regarded that application as somewhat in the nature of a proceeding in rem, to obtain a share of the fund in specie to which the informer was by law entitled. If such were the true nature of the proceeding under the existing law, in order that an adjudication should be binding tbe court that made the adjudication must have jurisdiction of the subject-matter, as well as of the applicant; and I regarded the petitioner, therefore, as perhaps legally entitled to dispute the jurisdiction of the court of claims over the subject-matter, notwithstanding his voluntary submission of the matter to them, and that no question of jurisdiction was there raised.

Under the former law (section 3090) there was doubtless some ground for this view, as that section provides that “the residue of the proceeds should be distributed in the manner following, to-wit: One-fourth to the person giving the information,” etc. In section 3689, also, which provides for permanent appropriations, the phrase used is “distributive shares of fines, penalties, and forfeitures under the customs laws,” indicating that the informer has a proprietary interest therein after “the proceeds” have been paid into the treasury.

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Related

In re Ghazal
163 F. 602 (E.D. New York, 1908)
In re Vetterlein
28 F. Cas. 1172 (S.D. New York, 1875)

Cite This Page — Counsel Stack

Bluebook (online)
28 F. 419, 1886 U.S. Dist. LEXIS 121, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-jayne-nysd-1886.