T. E. Hill Co. v. Contractors' Supply & Equipment Co.

94 N.E. 544, 249 Ill. 304
Illinois Supreme Court·Decided February 25, 1911·Published·Cited by 11 cases

Opinion

Mr. Justice Carter

delivered the opinion of the court:

This is an action instituted in the circuit court of Cook county by the plaintiff in error for the use of its assignee, against the defendant in error, for the alleged wrongful seizure of the property of plaintiff in error through a receiver appointed by the United States District Court for the Northern District of Illinois, upon the application of defendant in error, in bankruptcy proceedings instituted by it. On the trial in the circuit court before a jury a verdict was rendered in favor of plaintiff in error, and judgment was entered thereon. The case was taken to the Appellate Court for the First District by writ of error, and that court reversed the circuit court with a finding of facts that defendant in error did not act “maliciously and without probable cause” in prosecuting the bankruptcy proceedings. The cause has been brought here by petition for certiorari.

After the bankruptcy proceedings had been instituted in the district court, pending a hearing whether the plaintiff in error was or was not a corporation “principally engaged in manufacturing, trading, printing, publishing, mining or mercantile pursuits,” as required by the Bankruptcy act, (section 4b,) a receiver was appointed in accordance with the provision of section 3c and a bond given. The plaintiff in error was a corporation engaged in building concrete arches, bridges and other structures. The district court decided that it did not come withip the specified classes of corporations subject to be declared bankrupt under the act and dismissed the petition. This ruling was affirmed by the United States Circuit Court of Appeals in In re Hill Co. 148 Fed. Rep. 832. A writ of certiorari was denied by the United States Supreme Court in that case.

The principal contention of plaintiff in error is, that the district court having dismissed the petition and having held that the T. E. Hill Company was not amenable to the Bankruptcy act, such action was an “adjudication of that court that it did not have, and never had had, jurisdiction over the plaintiff in error or its property.” Defendant in error contends that in deciding this question this court ought to take into consideration the fact that at about the same time the decision was handed down by the United States Circuit Court of Appeals in the seventh district in In re Hill Co. supra, holding that it was not a corporation that could be adjudged a bankrupt, the same kind of corporation was held subject to the Bankruptcy act by the Circuit Court of Appeals in the eighth district in In re First Nat. Bank of Belle Fourche, 152 Fed. Rep. 64, and that later, in Friday v. Hall & Kaul Co. 216 U. S. 449, the Supreme Court made a like ruling. We are disposed to hold that these later decisions camiot be considered in deciding whether or not the district court had jurisdiction in the T. E. Hill Company bankruptcy proceedings. If the district court was without authority to decide, whether or not it had juris'diction of the subject matter involved in said proceedings, then there is force in the contention of plaintiff in error on this point. Some authority must decide whether or not a corporation or person is subject to the provisions of the Bankruptcy act.' The petition filed in the United States District Court, to declare the plaintiff in error a bankrupt is conceded to have been in conformity with the statute and rules of the United States Circuit Court in such matters, as was also the petition for the appointment of a receiver. There is nothing to' show in any of these papers that the T. E. Hill Company was not included within that class of corporations which could be declared bankrupt under the Bankruptcy act. We deem, however, the turning point of the controversy here to be whether the Bankruptcy act gave jurisdiction to the United States District Courts to decide the question as to whether a particular person or corporation could be declared a bankrupt under the act.

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T. E. Hill Co. v. Contractors' Supply & Equipment Co., 94 N.E. 544, 249 Ill. 304 (Ill. 1911).

94 N.E. 544 (T. E. Hill Co. v. Contractors' Supply & Equipment Co.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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