Stevens v. Nave-McCord Mercantile Co.

150 F. 71, 80 C.C.A. 25, 1906 U.S. App. LEXIS 4526
CourtCourt of Appeals for the Eighth Circuit
DecidedNovember 5, 1906
DocketNo. 2,278
StatusPublished
Cited by51 cases

This text of 150 F. 71 (Stevens v. Nave-McCord Mercantile Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Stevens v. Nave-McCord Mercantile Co., 150 F. 71, 80 C.C.A. 25, 1906 U.S. App. LEXIS 4526 (8th Cir. 1906).

Opinion

SANBORN, Circuit Judge,

after stating the case as above, deliv- < ered the opinion of the court.

[73]*73The appellees move to dismiss the appeal because the order oí dismissal was not a final decision, because it was not reviewable by appeal but by petition to revise, and because the appeal was joint and Fowler and Deardorff had no right of review thereby.

A decision which finally determines the rights of parties to secure in that suit the relief they seek is a “final decision,” within the meaning of that term in the act creating the Circuit Courts of Appeals, although it is not a decision of the merits of the case and does not bar another suit or proceeding for the same cause. It is a final adjudication of the particular case, and that is sufficient to vest in the defeated parties the right of review. Act March 3, 1891, c. 517, § 6, 26 Stat. 828, 1 U. S. Comp. St. 1901, p. 549; Central Transp. Co. v. Pullman’s Car Co., 139 U. S. 24, 38-40, 11 Sup. Ct. 478, 35 L. Ed. 55; Meehan v. Valentine, 145 U. S. 611, 614, 618, 12 Sup. Ct. 972, 36 L. Ed. 835; The Three Friends, 166 U. S. 1, 5, 49, 17 Sup. Ct. 495, 41 L. Ed. 897. The order of dismissal was of this nature, and it was therefore a final decision.

The order of dismissal presented questions of law only, and these were reviewable by petition for revision under section 24b of the bankruptcy law. Act July 1, 1898, c. 541, 30 Stat. 553, 3 U. S. Comp. St. 1901, p. 3432; Plymouth Cordage Co. v. Smith, 194 U. S. 311, 24 Sup. Ct. 725, 48 L. Ed. 992; In re Plymouth Cordage Co., 135 Fed. 1000, 68 C. C. A. 434. But it was a “judgment refusing to adjudge the defendant a bankrupt” and was also appealable by the express provisions of section 25a. C. C. Taft Co. v. Century Sav. Bank. 141 Bed. 369, 370, 72 C. C. A. 671; In re Holmes (C. C. A. 8th Cir.) 142 Fed. 391, 392; In re McKenzie (C. C. A. 8th Cir.), 142 Fed. 383, 385; Dodge v. Norlin, 133 Fed. 363, 367, 66 C. C. A. 425, 429. The argument that this order was not a judgment because it was an order of dismissal relies too implicitly on a difference of names and lacks support by a difference in substance and effect. The dismissal of the petition is the act prescribed by the bankruptcy law to evidence a “judgment refusing to adjudge the defendant a bankrupt.” Section 18d, section 18c, and section 18g (30 Stat. 551 [U. S. Comp. St. 1901, p. 3429]) each require the court in the cases there specified to “make the adjudication or dismiss the petition.” The petitioners set forth the act of bankruptcy and prayed for an adjudication. The court refused to make the adjudication and in conformity with the provision of the bankruptcy law dismissed the petition. The order of dismissal was the judgment refusing to make the adjudication prescribed by the law, and it was appealable by the express terms of the act of Congress.

It is contended that the appeal should he dismissed because Fowler and Deardorff were not jointly iilterested with Martha Stevens in. the order of dismissal, and because they were separately interested in the order which refused to permit them to join in her petition only white she alone was interested in the order of dismissal. But a proceeding in bankruptcy is a proceeding in equity. Upon an appeal from a final decision in equity, all the anterior rulings in the progress of the cause are reviewable. All the parties interested [74]*74in the proceedings must be made parties to the appeal and must be given notice of its pendency and hearing. None of the rulings or orders preceding the judgment of dismissal of the petition were appealable in this case, and every party interested in the foregoing rulings had a right to appeal from the final decision and by means of that appeal to review the previous rulings. The ultimate relief which Fowler and Deardorff sought was that which Martha Stevens prayed, an adjudication of Stevens a bankrupt, and the refusal of the court to permit them to join in her petition and the dismissal of the latter were embodied in the same order. The three petitioners were thus jointly interested in, and aggrieved by, this final decision which refused to adjudge Stevens a bankrupt, and they lawfully challenged it by their joint appeal. The motion to dismiss the appeal is denied.

The debtor, Stevens, was insolvent and had 48 creditors. He conveyed all his property to a trustee for the use of 47 of these creditors.with the intent that they hould receive therefrom a payment of part of their claims, and that the 48th creditor, his wife, should receive nothing. The 47 creditors and their trustee, with knowledge that this preference was intended, accepted the transfer and received therefrom payments of 50 per cent, of their claims. Within four months after the assignment the 48th creditor filed her petition for an adjudication of .Stevens a bankrupt and set forth the foregoing facts. If the 47 creditors who had received the preference ought not to be counted against the petitioner, there were less than 12 other creditors, her petition stated facts sufficient to warrant the adjudication she sought, and, whether Fowler and Deardorff should have been permitted to join her in her petition or not, its dismissal was error. Since a decision of this question in favor of the appellants will dis-' pose of this case and render all other issues immaterial, it will be first considered.

The argument, in support of the contention that creditors who have secured a voidable preference must be counted in computing the number of creditors that must join in the petition, is that such parties have provable claims, and that every one who has a provable claim, and who is not excluded by section 59e (30 Stat. 562, 3 U. S. Comp. St. 1901, p. 3445), is a countable creditor under the bankruptcy law of 1898. It is that section 59b provides that “three or more creditors who have provable claims against any person * * * or if all of the creditors of such person are less than twelve in number, then one of such creditors * * * may file a petition to have him adjudged a bankrupt”; that section 1, subd. 9 (30 Stat. 544 [U. S. Comp. St. 1901, p. 3419]), declares that ‘creditor’ shall .include any one who owns a demand or claim provable in bankruptcy”; that section 59f authorizes “creditors other than original petitioners” to be heard in opposition to the prayer of the petition”; that section 18b (30 Stat. 551 [U. S. Comp. St. 1901, p. 3429]) allows “the btCiiklupt or any creditor” to appear and plead to the petition; that section 57d (30 Stat. 560 [U. S. Comp. St. 1901, p. 3443]) provides that “claims which have been duly proved shall be allowed * * * [75]

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Bluebook (online)
150 F. 71, 80 C.C.A. 25, 1906 U.S. App. LEXIS 4526, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stevens-v-nave-mccord-mercantile-co-ca8-1906.