MCCLELLAND
v.
GREENBERG

2d Cir. | 1944-01-27
No. 225
Before SWAN, CLARK, and FRANK, Circuit Judges.
142 F.2d 245 United States Court of Appeals for the Second Circuit (1944)
Cited by 1 case

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Holding

The bankruptcy court lacked summary jurisdiction to entertain a proceeding against the appellant for the recovery of funds, as the appellant had a substantial adverse claim.


Facts & Procedural History

The appellant received $2500, which the trustee in bankruptcy sought to recover. The state court, which had jurisdiction over the accounting proceedin…

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Opinion of the Court
FRANK, Circuit Judge.

See, e. g., May v. Henderson, 268 U.S. 111, 115, 116, 45 S.Ct. 456, 60 L.Ed. 870; Taubel-Scott-Kitzmiller Co. v. Fox, 264 U.S. 426, 44 S.Ct. 396, 68 L.Ed. 770; In re Meiselman, 2 Cir., 105 F. 2d 995, 997.

Appellant by raising other defenses did not waive that defense. In re Bacon, 2 Cir., 210 F. 129, 135; Louisville Trust Co. v. Comingor, 184 U.S. 18, 26, 22 S.Ct. 293, 46 L.Ed. 413.

The reservation in the stipulation of appellee’s “right to reject all such claims” for “further fees * * * including eounsel fees * * *” referred, we think, to appellee’s right to defend against any claims for such further fees which might be asserted in the bankruptcy court. For the stipulation, except as to that reservation, related to the accounting proceedings in the State Court, and, as Sebring had, in the bankruptcy court in 1928, asserted claims with respect to the additional unpaid $1500 counsel fees, the appellee might well have thought it properly cautious to protect the estate from the assertion of that claim in the bankruptcy court.


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