Peale v. Phipps

55 U.S. 368, 14 L. Ed. 459, 14 How. 368, 1852 U.S. LEXIS 452
CourtSupreme Court of the United States
DecidedFebruary 18, 1853
StatusPublished
Cited by60 cases

This text of 55 U.S. 368 (Peale v. Phipps) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peale v. Phipps, 55 U.S. 368, 14 L. Ed. 459, 14 How. 368, 1852 U.S. LEXIS 452 (1853).

Opinion

Mr. Chief Justice TANEY

delivered the opinion of the court.

This suit was brought by the defendants in error against the plaintiff in the Circuit Court of the United States for the Eastern District of Louisiana.

The proceeding was by petition in the usual form of Louisiana practice. It states that the- plaintiff in error, in the capacity of trustee and assignee of the President, Directors, and Company of the Agricultural Bank of Mississippi, which was located, until the term of its dissolution at Natchez,in the said State, is indebted to the petitioners in the sum. of $34,000, upon the grounds set forth in the petition.

They state that they were the owners of two undivided third parts of a certain lot in Natchez, in the county of Adams, in the State of Mississippi, upon which stands the City Hotel; that they were unlawfully expelled from it by the Agricultural Bank; that they afterwards recovered back the possession by an action of ejectment, in the Circuit Court of the United jStates for the Southern District of Mississippi; and that they are entitled to the sum above mentioned, against the bank, for damages and mesne'proffts while the bank held them out of possession together with, the costs they incurred in the suit to recover it.

They further state, that by the decree of the Circuit Court of Adams County, a court of competent jurisdiction ••in the premises, the charter of the Agricultural Bank was declared forfeited, and the corporation dissolved; and that Peale, the plaintiff in error, was- appointed trustee and assignee of the bank, and is the sole legal répresentative of the corporation; and they aver; that by operation of law all the assets of the corporation are veste'd in him as assignee, and that he became legally liable to the creditors to the extent of the assets which may come to his *373 hands; and that he has assets in his possession, sufficient.to pay ail the debts of the corporation. .

■ The plaintiff in error filed sundry exceptions..and an answer to this petition. His 2d- exception denies the jurisdiction of the court, upon the ground that, as' trustee for the bank, he is not amenable to any other court than the one that appointed him. As we think this exception decisive against* the jurisdiction of the Circuit Court of Louisiana, it is' not necessary in this opinion to set out the other exceptions, or to notice' the claims he set up by the way of answer and reconvention, if his exceptions were overruled.

There is an agreement between the counsel-of the respective parties, which, admits substantially the facts stated in the petition, as respects the possession and recovery of the hotél in the suit in ejectment, and the appointment of plaintiff in error as trustee -upon the forfeiture of the charter of the bank; and also that the defendants had presented' this claim' to the commissioners appointed in Mississippi to audit claims against the bank, and that they had refused to allow it. There are other admissions, in relation to the annual value of the lot and hotel, and the costs and expenses of the suit in' ejectment, and also in relation to other things which are not material to this decision, and need not therefore be particularly stated. The case proceeded; and at the hearing of the exceptions they were all overruled, and a decree was finally passed against Peale as trustee and representative of the President, Directors, and Com? pany of the Agricultural Bank, directing him to pay to the petitioners the sum of $20,058, with interest thereon at the rate of' five per cent, until paid — and that the petitioners have execution therefor, upon the property, assets, goods and chattels, rights and credits of the said President, Directors, and Company of the Agricultural- Bank of Mississippi, then in.the' hands of the said Peale, as trustee, or which might thereafter come to his hands.

It is to revise this judgment that' the present writ of error is brought.

- The power, duties, and responsibilities of the plaintiff in error, as trustee, are regulated by the'laws of Mississippi.

The act of 1843 makes it the duty of every district attorney in the State, whenever he has good reason to believe that any incorporated bank, located in his district, has done any thing that'would work a forfeiture of its. charter, to file an information against the .bank in the Circuit Court of the county in which it is situated; and if, upon the trial, the charter is adjudged to be forfeited, it is made the. duty of the court to appoint one or more trustees to take charge of its books and as *374 sets, and. to. collect the debts..and sell the property of the bank, and apply the proceeds in*the manner which may be directed .by law to the .payment of the debts due from, the corporation. And the.trustee is required .to give bond-and security, to be approved: by the court, far the faithful discharge of this. duty.

The act of'1846 contains. more detailed provisions. on this subject. Among others, it directs the trustee to return, under oath, to the court by which he is> appointed, an inventory of all the- property and evidences of debt which shall have come into his possession.; and is afterwards, under the direction .of the court, to sell the-Same at public auction, and render an account of the sale so made to the court.

The act of 1846 also directs, that at the term at Which judgment. of forfeiture is rendered, the court shall appoint three commissioners to audit claims against the corporation; and it is made their duty to. report their, proceedings to the court at the first term after the expiration, of twelve months allowed for the presentation of claims; at which time 'all exceptions, to the report are to be heard and determined, and the court thereupon required, to direct the distribution of the money in the hands- of the trustee, to be made in the order prescribed by the law.

It- was under these acts of, the legislature of Mississippi, that the. charter of the Agricultural Bank was declared forfeited, and the plaintiff in error appointed trustee. Commissioners also, it appears, were at the samé time appointéd to audit the accounts, Who rejected thiá claim. Upon their refusal to allow it, the defendants in error instituted these’ proceedings in the. Circuit Court' of the' United States'for the. Eastern District of Louisiana.

"We see no ground upon Which the jurisdiction of the court can be. sustained. The plaintiff in error held the assets of the bank as the agent and receiver of the Court of Adams County, and-subject to its order, and-was not authorized to dispose of the assets, or to pay any debts due from the bank, except by the order of the court. He had given a bond for the performance of this duty, and would be liable to an action, if he paid any. claim Without the-authority of, the court from which he received his appointment, and'tó'which he was accountable. The propérty? in legal contemplation, was in the custody of the court of. which he -was the officer, and had been placed there by the laws of Mississippi. And while it thus renfgined in the custody and possession of that court, awaiting its • order and- decision, no other court had a right, to; interfere with, it, or to wrest it from the hands of its agent,-"and thereby put it out. of his power to perforin his duty. The case falls within the.principle -decided by this court in Vaughn v. Northrop, (15 Pet.

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Bluebook (online)
55 U.S. 368, 14 L. Ed. 459, 14 How. 368, 1852 U.S. LEXIS 452, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peale-v-phipps-scotus-1853.