McNeilly v. Furman

95 A.2d 267
CourtSupreme Court of Delaware
DecidedMarch 3, 1953
Docket32, 1952
StatusPublished
Cited by9 cases

This text of 95 A.2d 267 (McNeilly v. Furman) is published on Counsel Stack Legal Research, covering Supreme Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McNeilly v. Furman, 95 A.2d 267 (Del. 1953).

Opinion

95 A.2d 267 (1953)

McNEILLY et al.
v.
FURMAN et al.

No. 32, 1952.

Supreme Court of Delaware.

March 3, 1953.

Carroll F. Poole, of Wilmington, for appellant.

Daniel J. Layton, Jr., of Georgetown, for Daisey Evans Furman, appellee.

Before SOUTHERLAND, Chief Justice, WOLCOTT, Justice, and SEITZ, Chancellor.

SOUTHERLAND, Chief Justice.

The question presented is whether a right of action for wrongful death belonging to a bankrupt passes to the trustee.

The facts are these:

On July 3, 1950, the husband of Daisey Evans Furman was injured in an automobile accident and died as the result thereof. On January 9, 1951, the widow brought an action in the Superior Court of Sussex County to recover damages for his death. On December 15, 1951, she was adjudicated a bankrupt and appellant McNeilly was appointed trustee.

On March 20, 1952, the trustee filed a motion in the widow's suit to be joined as party plaintiff. (This motion was by consent treated as a motion to substitute the trustee as sole party plaintiff.) It was grounded upon the contention that the widow's right of action formed part of the bankrupt's estate under applicable provisions of the National Bankruptcy Act and that title thereto passed to the trustee upon his appointment. The court below denied the motion. See Del.Super., 90 A.2d 670. The trustee has appealed.

Section 70, sub. a of the National Bankruptcy Act, 11 U.S.C.A. § 110, sub. a, so far as here pertinent, provides as follows:

"The trustee of the estate of a bankrupt and his successor or successors, if any, upon his or their appointment and qualification, shall in turn be vested by operation of law with the title of the bankrupt as of the date of the filing of the petition initiating a proceeding under this title, except insofar as it is to property which is held to be exempt, to all of the following kinds of property wherever located * * * (5) property, including rights of action, which prior to the filing of the petition he could by any means have *268 transferred or which might have been levied upon and sold under judicial process against him, or otherwise seized, impounded, or sequestered: Provided, That rights of action ex delicto for libel, slander, injuries to the person of the bankrupt or of a relative, whether or not resulting in death, seduction, and criminal conversation shall not vest in the trustee unless by the law of the State such rights of action are subject to attachment, execution, garnishment, sequestration, or other judicial process: * * *."

Thus, in respect of all rights of action except those enumerated in the proviso, either assignability or liability to seizure by judicial process is the general test of the trustee's title; the specific actions named in the proviso, however, do not pass to the trustee unless subject to seizure by judicial process.

The trustee contends that a right of action for wrongful death under the applicable Delaware statute is not an action for injuries to the person and is therefore not one of the actions enumerated in the proviso; and further contends that such an action is assignable by its owner and hence passes to the trustee under the general test of title.

The contention of the appellee (the widow)[1] is twofold: (1) that a right of action for wrongful death is included as one of the actions enumerated in the proviso and that such a right is not subject to seizure by judicial process; and (2) that even if not so included it is, in any event, nonassignable and not subject to seizure and hence does not pass to the trustee.

In dealing with these questions the court below confined its attention to the question of assignability or nonassignability of the right of action. The question of the liability of such a right to seizure by judicial process was not considered, presumably because counsel for the trustee made no serious attempt (as he makes no serious attempt here) to argue that it is so subject to seizure. On the authority of the language in Hazzard v. Alexander, 6 W.W.Harr. 212, 36 Del. 212, 173 A. 517, and of other cases, the court below held that the action was not assignable and hence did not pass to the trustee.

As above stated, if the right of action here involved is one within the language of the proviso of clause (5) and is not subject to judicial seizure, it does not pass to the trustee. To these questions we direct our attention.

Our statute creating an action for wrongful death is as follows:

"Whenever death is occasioned by unlawful violence or negligence, and no suit is brought by the party injured to recover damages during his or her life, the widow or widower of any such deceased person, or, if there is no widow or widower, the personal representatives, may maintain an action for and recover damages for the death and loss thus occasioned." 10 Del.C. § 3704(b).

The question to be determined is whether an action for wrongful death under this statute is an action for "injuries to the person of the bankrupt or of a relative, whether or not resulting in death".

The proviso in clause (5), which contains the language with which we are concerned, was inserted in the Bankruptcy Act in 1938. 52 Stat.L. 879. Under the provisions of clause (5) as it existed before the amendment any right of action which was either assignable or subject to seizure by judicial process passed to the trustee. Since an unliquidated claim based on a tort is rarely subject to such seizure, assignability or nonassignability usually furnished the test whether or not the action passed to the trustee. Decisions under the former clause (5) had generally held that actions for personal torts not directly affecting the bankrupt's property were not assignable and did not pass to the trustee. 6 Am.Jur. § 870, and cases cited; 4 Collier on Bankruptcy, 4th Ed., p. 1162. But the decisions were not in accord whether or not a right of action for wrongful death was assignable and hence passed to the trustee. In the *269 cases of In re Burnstine, D.C.E.D.Mich. 1903, 131 F. 828, and In re Fahys, D.C.S.D. N.Y.1937, 18 F.Supp. 529, it was held that such an action under the respective statutes of Michigan and New York is a property right and is assignable, and hence passes to the trustee. On the other hand, in Dent v. Mendenhall, 1925, 139 Miss. 271, 104 So. 82, such an action was held, as a personal action in tort, not to vest in the trustee. Also a right of action for wrongful death under the Pennsylvania statute was held in Marsh v. Western, etc., Ry. Co., 204 Pa. 229, 53 A. 1001, to be nonassignable; and a like holding with respect to the Connecticut statute is found in Carson v. Gore-Meenan Co., D.C.Conn.1916, 229 F. 765, which is cited with approval by Chief Justice Layton in Hazzard v. Alexander, supra.

It is to be noted that the language of the proviso referring to actions for personal injuries speaks of injuries to the person of "a relative" and significantly adds the clause "whether or not resulting in death". This suggests that one of the purposes of the 1938 amendment to clause (5) was to set at rest the conflict in the decisions, above noted, with respect to rights of action for wrongful death. It is true that the Report of the House Committee on the Judiciary on the revision of the National Bankruptcy Act, Report No. 1409, 75th Cong., 1st Sess., does not deal specifically with the language of the proviso of clause (5). It says merely:

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Werth v. Top Bail Surety, Inc.
Superior Court of Delaware, 2022
Kirby v. Guardian Life Insurance Co. of America
2010 NMSC 014 (New Mexico Supreme Court, 2010)
LNC Investments, Inc. v. Democratic Republic of Congo
69 F. Supp. 2d 607 (D. Delaware, 1999)
United Virginia Bank v. McDonald
1 Va. Cir. 283 (Roanoke County Circuit Court, 1982)
Woody's Olympia Lumber, Inc. v. Roney
513 P.2d 849 (Court of Appeals of Washington, 1973)
WOODY'S OLYMPIA LBR., INC. v. Roney
513 P.2d 849 (Court of Appeals of Washington, 1973)
In Re Schmelzer
350 F. Supp. 429 (S.D. Ohio, 1972)
Greene v. Johnston
99 A.2d 627 (Supreme Court of Delaware, 1953)

Cite This Page — Counsel Stack

Bluebook (online)
95 A.2d 267, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcneilly-v-furman-del-1953.