Lehman v. Spurway

58 F.2d 227, 1932 U.S. App. LEXIS 4692
Court of Appeals for the Fifth Circuit·Decided May 3, 1932·No. 6263·Published·Cited by 11 cases

Opinion

SIBLEY, Circuit Judge.

W. C. Burgert sold to Samuel Cantor three thousand chairs, which Cantor placed in a race track grandstand owned by a corporation in which he was a large stockholder, a majority of the chairs being attached by bolts to the floor. Title was retained by Burgert in the note taken but the paper was not properly attested and recorded. He sued the note in a state court and recovered a money judgment against Cantor. Execution was issued, and was about to be levied on the chairs as the property of Cantor by the appellant Lehman, as sheriff of the state court, when the appellee-H. J. Spurway, as receiver of City National Bank of Miami, Fla., obtained in the federal District Court a permanent injunction forbidding the sheriff and his deputies from seizing, levying upon, or selling any of the ehairs. The receiver claimed the chairs to be fixtures attached to the grandstand upon which the bank had taken a mortgage which the receiver had foreclosed, buying the realty in for the bank. The jurisdiction of the court and the propriety of the in j motion are brought in question by this appeal.

The receiver of a national bank is not an officer of court, but is the representative of the Comptroller and under his control. Ex parte Chetwood, 165 U. S. 443, 458, 17 S. Ct. 385, 41 L. Ed. 782. Although the District Court may be called on to authorize sales and settlements, the assets of the bank are not in the court for administration, thereby drawing to it all disputes over the title to and liens upon them and entitling the court to defend its possession as if they were in the hands of its own receiver. Jurisdiction as a federal court over this controversy can be rested upon no such basis. But it exists under 28 USCA § 41(1) as of a suit of a civil nature brought by an officer of the United States authorized by law to sue. Gibson v. Peters, 150 U. S. 342, 14 S. Ct. 134, 37 L. Ed. 1104; Short v. Hepburn (C. C. A.) 75 F. 113; Myers v. Hettinger (C. C. A.) 94 F. 370; Schofield v. Palmer (C. C.) 134 F. 753.

Yet, without regard to the merits of his title, the receiver cannot obtain relief by injunction against the officer of the state court because of a point not presented in the trial court. 28 USCA § 379 declares: “The writ of injunction shall not be granted by any dourt of the United States to stay proceedings in any court of a State, except in cases where such injunction may be authorized by any law relating to proceedings in bankruptcy.” The winding up of a national bank by the Comptroller we do not regard as proceedings in bankruptcy within the meaning of the section, nor have we been referred to any law in connection therewith which authorizes the use of injunction against proceedings in a state court. In First National Bank v. Colby, 21 Wall. 609, 22 L. Ed. 687, a creditor of an insolvent national bank had some of its property attached by process from a state court. The receiver appointed a few days later did not seek relief in a federal court, but appeared in the state court to object, was. defeated, and appealed ultimately to the Supreme Court of the United States. That court said: “We are of opinion that it was a proper proceeding on the part of the receiver to apply to the court below to discharge the attachment, on proof of the facts presented by him, and the production of his appointment and the decree dissolving the association. * * * That levy was void as against his claim to the property; and, in our judgment, it was error for the court to refuse to discharge it on his application.” In the Chetwood Case, supra, the assets of a failed national bank were in controversy, and a state court had assumed to control some of them, and a federal court had issued injunction against an appeal of the state court proceedings. The section quoted was considered to apply, and to forbid the injunction. Page 460 of 165 U. S., 17 S. Ct. 385. See, also, Baker v. Ault (C. C.) 78 F. 394. The case here is not an attempt to apply the bank’s assets to its debt and thus to usurp the administration of the receiver, but the receiver seeks to prevent an orderly seizure of property claimed to belong to another. We think the receiver of a national bank has *229 no more right to have a federal court enjoin such proceedings in a state court than any other suitor has.

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Lehman v. Spurway, 58 F.2d 227, 1932 U.S. App. LEXIS 4692 (5th Cir. 1932).

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