In re Scott
District Court, N.D. Ohio
Exceptions to the report of a commissioner in bankruptcy. In 1867, Dwight Scott was the sole owner of two propellers, the S. D. Caldwell !and the Ironsides. In June, 1868, both vessels were libeled, at Cleveland, for debts which were liens; and they were sold by order of the district court. Previous to the sale of them, Scott filed a petition in bankruptcy and was adjudged a bankrupt.
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Exceptions to the report of a commissioner in bankruptcy. In 1867, Dwight Scott was the sole owner of two propellers, the S. D. Caldwell !and the Ironsides. In June, 1868, both vessels were libeled, at Cleveland, for debts which were liens; and they were sold by order of the district court. Previous to the sale of them, Scott filed a petition in bankruptcy and was adjudged a bankrupt. After the sale of the vessels, the demands upon which the libels were founded, were paid out of the proceeds, and the balance was paid over to the assignee in bankruptcy. Motions were then made in the…
1Opinion of the Court
SHERMAN, District Judge.
Under the bankrupt law the court is bound to recognize and enforce all valid liens; and the estate of the bankrupt passes to the assignee, subject to all liens that were subsisting upon it or its proceeds. The inquiry is therefore a proper one: What were the valid and subsisting liens, and their order, at the time the proceeds came into the hands of the assignee ?
Prom the character of the claims presented, and the difficult questions of priority arising in the cases, on application of the parties the motions were referred to J. D. Cleveland, Esq., as special…
2Cases cited4 opinions
- Bird v. the Steamboat JosephineNew York Court of Appeals · 1868
- Stewart v. HarryCourt of Appeals of Kentucky · 1867
- Ballard v. WiltshireIndiana Supreme Court · 1867
- Griswold v. OtterSupreme Court of Minnesota · 1867