Spellman v. Sullivian

61 F.2d 787, 1932 U.S. App. LEXIS 4413
CourtCourt of Appeals for the Second Circuit
DecidedNovember 7, 1932
DocketNo. 36
StatusPublished
Cited by9 cases

This text of 61 F.2d 787 (Spellman v. Sullivian) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Spellman v. Sullivian, 61 F.2d 787, 1932 U.S. App. LEXIS 4413 (2d Cir. 1932).

Opinion

MANTON, Circuit Judge.

The appellee Spellman is a judgment creditor of the appellant Sullivian, having recovered a judgment at law for professional services on February 28,1930. In 1917, Sul-livian became the beneficiary, with a life interest, in the income of a trust fund of $50,-000, settled for her benefit. She married the settlor of this fund, and he later, in his will, gave her for life the income from a trust fund of $200,000 in lieu of dower. The Bankers’ Trust Company is trustee for these two trust funds, whieh yield this appellant an income in excess of $12,500 per year. The'appellant Sullivian has since remarried.

On March 13, 1930, execution was issued on the judgment at law and returned wholly unsatisfied. The appellant Sullivian defended the law action, being present at the trial, and shortly thereafter departed to Europe, where she remained during the time the rest of the proceedings followed. Judgment being unsatisfied, a bill in equity was filed to subject the income of the trusts administered in the Southern district of New York to the claim of the judgment.

On June 18, 1930, an order was obtained by the appellee Spellman, requiring the appellant Sullivian to appear before August 18, 1930, and requiring the publication of this order as a substitute for personal service. On September 20, 1930, Sullivian appeared specially by counsel and moved to vacate the order of publication, on the ground that this was not a proper ease for service by publication under section 57 of the Judicial Code (28 USCA § 118). This motion was denied. On October 28, 1930, the appellants served an answer reserving her rights to ob ject to the service by publication on appeal. This answer was filed December 26,1930'. On December 16th and 23d, a motion was made to impound, the income of the trust. District Judge Woolsey, although not requested by the appellee and over the objections of the appellants, having denied the motion, ordered “that the trial of this action be preferred and the case set for trial peremptorily for February 2, 1931, and the Clerk of this Court is directed to place the same as a preferred case peremptorily as against all parties at the head of the calendar for February 2, 1931.” On December 17, 1930, an order was made directing service of a subpoena on the appellant by serving a copy on her attorney in New York City. This apparently was for the purpose of supplying alternative service if service by publication should later be held void. The subpoena was served December 31, 1930.

On January 8, 1931, the appellant Sulli-vian moved for a commission to take her testimony by deposition in Italy. This motion was heard, and an. affidavit in support thereof stated, properly, that ninety days had not elapsed since issue was joined, and that the appellant was ill in Europe and her testimony was necessary on the issue of fact raised by the pleadings. An affidavit in opposition asserted that the appellee would be prejudiced if the commission were granted, since the trial had been set for February 2, 1931. It was suggested that, if the order be granted, it should be only upon condition that it be returned before the date set for trial. The motion came on before another District Judge, who referred it to the District Judge who peremptorily ordered the ease tried on February 2,1931. This District Judge heard the motion and denied the same unconditionally. On January 19, 1931, the appellant Sullivian served a notice in answer to the subpoena served December 31, 1930, in whieh she alleged that she questioned the propriety of the service of the subprana. On February 2,1931, when the cause came on to be heard, an application was made to the District Judge presiding for a continuance until the appellant’s testimony might be had either by her presence in court or by a commission to be issued therefor.' But the judge presiding felt obliged, in view of the peremptory setting of the case for trial, to deny the application for a continuance. Thereupon counsel for the appellant Sullivian stated that he could do ndthing further, and the decree was entered by default. On May 8, 1931, after the decree was entered, appellants moved for a new trial and to open the default, but this motion was denied. This appeal was then allowed.

For the reasons sufficiently stated by Judge Patterson in Spellman v. Sullivian (D. C.) 43 F.(2d) 762, we think that process was properly served under the order entered, pursuant to section 57 of the Judicial Code (28 USCA § 118). The Real Property Law of the state of New York (Consol. Laws, c. 50.) § 98, provides that: “Where a trust is created to receive the rents and profits of real property, and no valid direction for accumulation is given, the surplus of such rents and profits, beyond the sum necessary for the education and support of the beneficiary, shall be liable to the claims of his creditors in the [789]*789same manner as other personal property, which can not be reached by execution.”

Appellee proceeded under this statute. Section 57 of the Judicial Code (28 USCA § 318) authorizes service by publication in the ease of an absent defendant to enforce liens or claims to property within the jurisdiction and confers limited jurisdiction quasi in rem. Here the property against which the lien was asserted was within the territorial limits of the District Court, and the appellee was asserting rights in personam against an absent defendant connected with property within the district. The court properly held this to be a judgment creditor’s bill to enforce a claim against the income from the trust and that it warranted service upon the absent judgment debtor by publication. It was properly held that section 57 might be invoked for substituted service by publication even though the lien or claim was not preexisting before the commencement of the suit. The ease of Vidal v. South American Securities Co., 276 F. 855 (C. C. A. 2), did not involve the adoption of this principle. That was a suit in personam against an absent defendant; some of the securities concerned in the joint adventure being located in the district, and the court held that such suit was not brought to enforce a lien or claim to the property and dismissed the bill. It referred to the fact that the plaintiff there had not reduced his claim to judgment, but was a general creditor. See Wilson v. Beard, 26 F.(2d) 860 (C. C. A. 2). The statute is limited to suits to enforce a lien or claim on property within the district or to remove a lien, claim, or incumbrance on such property. Such is the basis of the appellee’s suit.

The order peremptorily directing the trial of the ease on February 2,1931, as well as the order denying the request for a commission to take appellant Sullivian’s testimony by deposition or written interrogatories are here for review. We think both orders were improperly entered. Supreme Court Equity Rule 56 (28 USCA § 723) provides: “After the time has elapsed for taking and filing depositions under these rules, the ease shall be placed on the trial calendar.”

Equity Rule 47 (28 USCA § 723) provides that depositions of the plaintiff shall be taken and filed within sixty days from the time the cause is at issue, and the defendant’s within thirty days from the expiration of the time for the filing of the plaintiff’s depositions, and rebutting depositions by either party within twenty days after the time for taking original depositions expires.

The cause is at issue when the answer is filed. Knaggs v. Cleveland-Cliffs Iron Co., 287 F. 314 (C. C. A. 6). The answer was filed here December 26, 1930, and notice in answer to the subpoena served December 31, 1930, was served January 19', 1931.

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Cite This Page — Counsel Stack

Bluebook (online)
61 F.2d 787, 1932 U.S. App. LEXIS 4413, Counsel Stack Legal Research, https://law.counselstack.com/opinion/spellman-v-sullivian-ca2-1932.