Taaffe v. Central Trust Co.
Court of Appeals for the Seventh Circuit
Appeal from the District Court of the United States for the Eastern Division of the Northern District of Illinois. In the matter of the Rogers Palace Laundry Company, bankrupt. Matthew Taaffe, executor of the estate of Edwin Henning, deceased, sought a lien on funds in the possession of the Central Trust Company of Illinois, trustee of the bankrupt estate. From a decree denying lien, the executor appeals.
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Appeal from the District Court of the United States for the Eastern Division of the Northern District of Illinois. In the matter of the Rogers Palace Laundry Company, bankrupt. Matthew Taaffe, executor of the estate of Edwin Henning, deceased, sought a lien on funds in the possession of the Central Trust Company of Illinois, trustee of the bankrupt estate. From a decree denying lien, the executor appeals. Appellant sought, but was denied, a lien to the extent of $3,384 and interest uponj'imds in appellee’s possession realized from the sale of bankrupt’s property, and which realization was, by…
1Opinion of the CourtEvans, Circuit Judge
(after stating the facts as above). Priority is sought on the theory of subrogation. Having paid $3,384 on the first valid and subsisting mortgage, appellant urges equitable considerations in support of his claim for a lien. He invokes the doctrine of conventional rather than legal subrogation, and disclaims all rights under and by virtue of the trust deed given to secure the $80,000 bond issue.
[1, 2] That appellant could have protected his advance cannot be questioned. That he failed to do so, however, is, we think, equally apparent. Instead of taking an assignment of the first mortgage…
2Cases cited1 opinion
- Murphy v. BaldwinWisconsin Supreme Court · 1915
3Cited by2 opinions
- Buskirk v. State-Planters Bank & Trust Co.West Virginia Supreme Court · 1933
- Jorski Mill & Elevator Co., Inc., and Millers Mutual Insurance Association of Illinois v. Farmers Elevator Mutual Insurance CompanyCourt of Appeals for the Tenth Circuit · 1968