Kohn v. Ryan

31 F. 636, 1887 U.S. App. LEXIS 2664
CourtU.S. Circuit Court for the Southern District of Iowa
DecidedJune 11, 1887
StatusPublished
Cited by3 cases

This text of 31 F. 636 (Kohn v. Ryan) is published on Counsel Stack Legal Research, covering U.S. Circuit Court for the Southern District of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kohn v. Ryan, 31 F. 636, 1887 U.S. App. LEXIS 2664 (circtsdia 1887).

Opinion

Shiras, J.

On the eighth day of February, 1887, this action was commenced against the defendant Patrick Ryan to recover the sum of $1,914.14 due on account for goods sold. A writ of attachment was sued out, and served by garnishing Michael Ryan, who answers to the writ, setting forth that on the fifth day of February, 1887, Patrick Ryan executed to him a general deed of assignment of his property for the benefit of creditors, under the provisions of the statute of Iowa; that on said fifth day of February he accepted said trust, the deed of assignment having been properly recorded, and filed an inventory of the property in the district court of Guthrie county, Iowa; that several partios,' claiming liens on the assigned property, have brought proceedings for the foreclosure thereof in said state court, where the same are now pending; that said garnishee has in his hands some $6,700, realized from sales of the assigned property, the same being hold by the garnishee subject to the orders of said state court, to be by it distributed as provided [637]*637by law; and that the garnishee has not in his possession, or under his control, any property of the defendant Patrick llyan, save that which came into his hands by virtue of said deed of assignment.

In support of the motion to be discharged, filed by the garnishee, it is argued, first, that the subject-matter of controversy, to-wit, the validity of the assignment, can only bo heard and determined in the court having control of the assignment proceedings, the contention being that the provisions of the statute requiring the assignee to file bond and inventory in the district court of the county, and giving that court full authority over the assignee, in effect confers upon that court exclusive jurisdiction over all questions affecting the assignment. The statute of Iowa does not create the right to make an assignment for the benefit of creditors. It simply recognizes, and in some particulars restricts, this right, and provides the method by which the trust created by the dol'd shall be carried into ofleet. The debtor cannot, under the statute, be compelled to make an assignment , nor can the court, by any order or decree, obtain control over or possession of the debtor’s property. The debtor can, by executing a proper deoil, convey bis property in trust to an assignee, just as by the execution of a will he can transfer the title to bis property, at bis death, to the executor named in his will. In both cases express trusts are created, and by the provisions of the state statutes the state court is clothed with power and authority to supervise and direct the administration of the trusts thus created.

It has never been held that the probate of the will in the proper state court, and the filing of a bond and inventory by the executor, confers upon that court the exclusive jurisdiction of the question of the validity of the will so filed. In Leighton v. Orr, 44 Iowa, 680; Gilruth v. Gilruth, 40 Iowa, 346; and Havelick v. Havelick, 18 Iowa, 414,—it is held by the supreme court of Iowa that the filing and probate of a will in the county or circuit court did not deprive the district court of jurisdiction of an original proceeding to annul and set aside a will; and in Gaines v. Fuentes, 92 U. S. 10, it is held that where, by the statutes of the state, jurisdiction is vested in the state courts to entertain an independent proceeding to test the validity of a will, the United States courts will have like jurisdiction, if the adversary parties are citizens of different states.

If the jurisdiction over estates and wills vested in the probate court of the stales does not oust, the jurisdiction of other courts over the question of the validity of the will, why should the control given to the district court of the state in cases of an assignment deprive all other courts of jurisdiction over cases brought to test the validity of the assignment? Tiie argument in support of the exclusive jurisdiction of the probate court is, in fact, much stronger than in cases of an assignment. Before a will can he probated, notice of the hearing must bo given, and a contest may bo made by parties interested.

Again, independent of statutory authority, a bill in equity will not lie to set aside a will, or annul probate thereof. Broderick’s Will, 21 Wall. 508. In case of an assignment, the statutes of Iowa do not provide for a hearing upon the question of the execution or validity of the [638]*638deed; and to secure a hearing upon these questions it is absolutely necessary that an independent proceeding should be instituted, and, unless the invalidity of the deed is apparent on its face, ordinarily a bill in equity would be the proper mode of attack, especially if the title to realty is involved. The jurisdiction over such independent proceeding, to test the validity of the assignment, is not limited to the court in which the assignee has filed his bond and inventory, but exists in any court, state or federal, of otherwise competent jurisdiction. Van Patten v. Burr, 52 Iowa, 518, 3 N. W. Rep. 524; Adler v. Ecker, 1 McCrary, 256, 2 Fed. Rep. 126; Fleisher v. Greenwald, 20 Fed. Rep. 547; Shelby v. Bacon, 10 How. 56; Borer v. Chapman, 7 Sup. Ct. Rep. 342.

The second proposition submitted in support of the motion is that, admitting that the state court, having statutory control of the assignment proceedings, has not- ipso facto exclusive jurisdiction of the question of the validity of the assignment, nevertheless the assignee and the assigned property are so completely under the control of the state court that a due regard to his position and obligations, and the comity existing between courts of concurrent jurisdiction, require the adoption of the rule that the United States courts will not compel an assignee to respond to a writ of garnishment, as he may thus be subjected to conflicting orders and judgments, and that in fact the assigned propert}1- is practically in the custody of the state court, and that the assignee should not be held to account, upon the process of garnishment, for property, or the proceeds thereof, which he is bound to distribute as directed by the state court.

The general rule that one court will not seek to take possessson of property already within the possession or control of a court of concurrent jurisdiction is too well settled to need discussion. If a state court, through a receiver or administrator appointed by such court, or by levy of a writ issued to the sheriff or other executive officer of the court, has taken possession of property, the United States court will not interfere with such possession. No better illustration of the rule followed by this court on this question can be found than in the case of Senior v. Pierce, ante, 625. It will be remembered, however, that, in cases of assignments, possession of the property is not taken under or by virtue of any order or process of court. The assignee derives title and possession from the -voluntary deed and act of the assignor, and the state court controls the execution of the trust through its control over the assignee.

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Cite This Page — Counsel Stack

Bluebook (online)
31 F. 636, 1887 U.S. App. LEXIS 2664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kohn-v-ryan-circtsdia-1887.