In re Schuyler Steam Tow-Boat Co.

18 N.Y.S. 89, 43 N.Y. St. Rep. 163
CourtNew York Supreme Court
DecidedFebruary 15, 1892
StatusPublished
Cited by2 cases

This text of 18 N.Y.S. 89 (In re Schuyler Steam Tow-Boat Co.) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Schuyler Steam Tow-Boat Co., 18 N.Y.S. 89, 43 N.Y. St. Rep. 163 (N.Y. Super. Ct. 1892).

Opinion

Putnam, J.

It is settled by the court of appeals in a similar case (In re Christian Jensen Co., 28 N. E. Rep. 667) that the filing of the original petition, and entry of the order thereon appointing Frank B. Sturges receiver ■of the Schuyler Stéam Towing Company, at once vested the title of the property of said corporation in said receiver. He could not act until the giving [90]*90of his hoiid, but on filing such bond his title related back to the date of his appointment. The court held in the case cited that, after the filing of the petition and entry of the order, the title of the property being in the receiver, it was in the custody of the law, and the court had the power to prevent, any interference with it in any action, and its dissipation or removal by writ of replevin or attachment. See, also, Gluck & B. Rec. § 45, note; In re. Berry, 26 Barb, 55; Smith v. Stage Co., 18 Abb. Pr. 420; Atlas Bank v. Nahant Bank, 23 Pick. 480; In re Mallery, (Sup.) 2 N. Y. Supp. 437. In the Jensen Case, supra, the court sustained an order restraining the defendant from proceeding in replevin .or attachment levied upon the property after the filing of the petition and entry of the order appointing a receiver, but before the filing of his bond. There is no dispute about the facts of this case. It is conceded that the petition was filed, and that an order appointing a receiver was granted before any of the libels were filed; and hence, when said libels were in fact filed, the title of the property in question was in the receiver as an officer of the court. The property was in the constructive possession of the court. Hence, if the property in question had been, seized under a process issued from a state court by the defendant, no question would arise as to the power of this court to restrain the defendants from further proceeding.

Can this court also restrain defendants from proceeding in the federal court? I shall be unable to discuss the very many authorities to which I have been cited, but I have examined and considered most of them. I have finally reached the conclusion that this court having, through its receiver, taken possession of the property in question, before the libels of the defendants were filed in the United States court, it' can protect the property so in its possession as against process issued from the federal court as well as from a state court. I think this power is conferred upon this court by section 2423 of the Civil Code. In re Christian Jensen Co., supra. That section confers upon the supreme court in this proceeding the same power that exists in a court of equity to restrain parties from proceeding in other courts, state or national. It is true that the supreme court of the state probably cannot stay proceedings in the federal courts, but it may stay parties in any action in the federal courts from proceeding, at least before judgment therein. See Dinsmore v. Neresheimer, 32 Hun, 206; Dehon v. Foster, 4 Allen, 550; Attorney General v. Insurance Co., 77 N. Y. 272, 277; Vail v. Knapp, 49 Barb. 308, 309; Claflin & Co. v. Hamlin, 62 How. Pr. 284; note to section 111, High, Inj. p. 92; Barry v. Brune, 71 N. Y. 261; People v. Railroad Co., 36 How. Pr. 132.

The above cases establish the doctrine laid down in Dehon v. Posterr supra, in which case the court remarked: “The authority of this court, as a court of chancery, upon a proper case being made, to restrain persons • within its jurisdiction from prosecuting suits either in the courts of this state or of other states or foreign countries, is clear.and indisputable. In the execution of this power courts of equity proceed, not upon any claim of right to interfere with or control the course of proceedings in other tribunals, or to prevent them from adjudicating upon the rights of parties when drawn • in controversy, and duly presented for their determination. But the juris-' diction is founded on the clear authority vested in courts of equity over persons within the limits of their jurisdiction, and amenable to process, to- re-strain them from doing acts which will work an injury to others, and' are-therefore contrary to equity and good conscience. As the decree of the court in such cases is pointed solely at the party, and does: not extend to the tribunal where the suit or proceeding is pending, it is wholly immaterial that.the party is prosecuting his action in the courts of a foreign state or country.”

The granting of an injunction, as asked for by the moving party, does not. at all conflict with the doctrine as laid down in such cases, as that of Riggs [91]*91v. Johnson Co., 6 Wall. 166, and kindred cases, because (1) the injunction asked for herein is not to be directed to the federal court, but to a party to an action therein, to prevent him, as a creditor of the Schuyler Steam Towing Company, from interfering with the property in the constructive possession of the state court through its receiver, and which that court so obtained possession of before the defendant’s libels were filed; and (2) because the state court had obtained jurisdiction—obtained title to the property—before the defendant’s libels were filed. The doctrine is well established in both state and federal courts, as a general rule, that the court which first obtained jurisdiction will retain it to the end. See Riggs v. Johnson Co., 6 Wall. 196; Railroad Co. v. Gomila, 132 U. S. 478, 10 Sup. Ct. Rep. 155; Wallace v. McConnell, 13 Pet. 136-151; Taylor v. Taintor, 16 Wall. 370; Taylor v. Carryl, 20 How. 583; Hagan v. Lucas, 10 Pet. 400; Beaston v. Bank, 12 Pet. 102; Wiswall v. Sampson, 14 How. 52; Williams v. Benedict, 8 How. 109. In my judgment, it makes no difference, as to the right of the receiver to hold the property in question, that he had not taken actual possession at the time the libels were filed. Under the doctrine settled in the Christian Jensen Case, supra, when the libels were filed and the property attached thereunder, the receiver had the actual title. The property was then in the constructive possession of the court.

This case differs from those cited by the defendants, where conflicts have arisen between marshals and sheriffs under execution or attachments, in which those authorities hold that the officer who first takes actual possession will hold the property. In those cases the title of the property was in the debtor. The sheriff or marshal having the execution or attachment did not acquire title to the property until the seizure by him, and hence the one first seizing held it. But in this case, by the order of the supreme court, the title at once vested in the receiver before its seizure by the marshal. When the marshal undertook to take the property it was in the legal custody of the court. Without attempting to discuss the various cases cited by the defendants, I think them different from this in the regard above mentioned. In any event, I feel bound by the holding of the court of appeals in the Jensen Case. There a petition was filed and an order appointing a receiver entered on the 10th, in the morning; and, in the afternoon of the same day, the property was replevied and attached, and afterwards the receiver filed his bond.

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Related

Paxson v. Cunningham
63 F. 132 (First Circuit, 1894)
In re Schuyler's Steam Towboat Co.
19 N.Y.S. 565 (New York Supreme Court, 1892)

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Bluebook (online)
18 N.Y.S. 89, 43 N.Y. St. Rep. 163, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-schuyler-steam-tow-boat-co-nysupct-1892.