Harmanson v. Bain
District Court, E.D. Virginia
Action of assumpsit. The Portsmouth Saving Fund Society ceased business as a bank in 1862, in consequence of public invasion. At the close of the war, in the summer of 1S65, it resumed business only for purposes of liquidation, and its directors by resolution authorized its cashier to wind up its affairs as far as possible by setoff. From sales of property the society afterwards derived some funds in greenback currency.
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Action of assumpsit. The Portsmouth Saving Fund Society ceased business as a bank in 1862, in consequence of public invasion. At the close of the war, in the summer of 1S65, it resumed business only for purposes of liquidation, and its directors by resolution authorized its cashier to wind up its affairs as far as possible by setoff. From sales of property the society afterwards derived some funds in greenback currency. With part of these greenback funds it afterwards discounted a promissory note for R. T. Iv. Bain, the defendant, with the understanding that it should be payable in greenback…
1Opinion of the Court
HUGHES, District Judge.
Tke promissory note of tke defendant, kaving been returned by the bankrupt society in its schedules, and not kaving been disputed by the defendant, and the claim of the defendant intended as an offset to it having been proved in bankruptcy by an attorney in fact (whose action, although illegal, will not be disputed by the defendant unless technical use of it be made against him), all this having been done, the bankruptcy court had full jurisdiction, under the unqualified language of section 4772, to adjudicate the mutual rights of the assignee in bankruptcy and the…
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