JENKINS
v.
INTERNATIONAL BANK OF CHICAGO

U.S. | 1888-05-14
No. 254
127 U.S. 484 Supreme Court of the United States (1888) Positive Treatment
Also reported at: 32 L. Ed. 189 · 8 S. Ct. 1196 · 1888 U.S. LEXIS 2011 · SCDB 1887-268
Cited by 17 cases

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Synopsis

In this bankruptcy case, the Supreme Court held that a supplemental bill filed by a creditor more than two years after a bankruptcy assignment did not constitute a new suit barred by the two-year limitations period under Section 5057 of the Revised Statutes, because the supplemental bill merely presented new evidence (a prior decree from another suit) in support of the original cause of action rather than asserting a separate and distinct claim. The Court affirmed that the statute of limitations does not apply when a creditor presents additional conclusive evidence of an existing debt that remained unchanged despite the change in evidentiary form.


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Opinion of the Court
Me. Justice Matthews,

Mr. Justice Matthews,

after stating the case, delivered the.. opinion of the court.

Section 5057 of the Kevised Statutes provides that “ ho suit, -either at law or in equity, shall be maintainable in any court between an assignee in bankruptcy and a person claiming an adverse interest, touching any property or rights of property transferable to or vested in such assignee, unless brought within two years from the time when the cause of action accrued for or against such assignee. And this provision shall not in any case revive a right of action barred at the time when an assignee is appointed.”

Tt is contended by the plaintiff in error that the Supreme .Court of Illinois erred.in giving effect in this suit to the decree of February 2’S, 1878, in the Wilshire suit as set up by the International Bank in its supplemental bill filed herein November 26, 1883, more than two years after July 31, 1878, when the assignee in bankruptcy succeeded to the title of the bankrupt Walker. This contention is based upon the proposition that the filing of that supplemental bill in this proceeding was the commencement of á new suit against the assignee in bankruptcy by a person claiming an adverse interest touching rights of property vested in him. . This is the only federal question presented by the record.

In support of this proposition, it is argued on behalf of the plaintiff in error that the supplemental bill set out, and sought a recovery upon, a cause of action distinct from that stated in the original bill. The original bill prayed for a decree against Walker upon his notes held by the bank, and for the satisfaction thereof a sale of the property held as security therefor. During the pendency of that bill precisely the same matters were put in issue in the Wilshire suit between Walker and the bank, .and in that suit a decree was rendered finding the amount due. That decree in the Wilshire suit stands unreversed, and operates as an estoppel by way' of res adjudicarla between the parties. By way of proof or in pleading, it 'would be good as a bar in any subsequent suit between the same parties upon the same issues. Having been rendered after the institution of the present.suit, it was competent for the complainant to bring it forward, by a supplemental bill as conclusive evidence of the amount due for which it was entitled to take a decree, and as a complete answer to. the defence set up by the plaintiff in error as the-assignee of the bankrupt to the relief prayed for in the original bill, and to the relief sought by the cross-bill. It was strictly new matter arising after the filing of the bill, properly set up by way of supplemental bill, in support of the relief originally prayed for. It can in no sense be considered as a new cause of action. It was not a bill to enforce the decree, nor tyas the complainant-obliged to rely upon it as the sole ground of recovery, on the ground that the original cause of action had become merged in it. If the notes were merged in the decree, it was simply a change in the nature of the evidence to support the complainant’s title to relief; the indebtedness remained the same, and the equity of the complainant to a foreclosure and sale of the securities remained unchanged. The statute of limitations, therefore, invoked by the plaintiff in error has no application.

This being the only federal question arising upon the record, and having, in our opinion, been decided correctly by the Supreme Court of Illinois, it is not within our province to consider any other question in the case.

The judgment of the Supreme Court of Illinois is, therefore, affirmed. .


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Citator

Cited By

  • …to the Government’s original cause of action. - In every substantial sensé those facts were material. Strictly speaking, they may have constituted new matter, but they did not present a new cause of action. Jenkins v. International Bank of Chicago, 127 U. S. 484. They grew out of and were connected with the same transaction from which this litigation arose, and were germane to the object of the suit. That object was to restrain the defendants [*276] from constructing and maintaining dams, reservoirs, canals…
  • McKENNA v. Simpson, 129 U.S. 506 (U.S. 1889)
    …y, 111 U. S. 138, the effect to be given tp/a sale of property under an order of the District Court "in bankruptcy was in question, the authority of the court to direct a sale free from encumbrances being denied. Jenkins v. National Bank of Chicago; 127 U. S. 484, involved a question as to the authority of the assignee in bankruptcy to institute a suit touching any property or rights of property vested in him after the expiration of two years from the time when the cause of action accrued. The decision of t…
  • Hartford Life Ins. Co. v. Johnson, 249 U.S. 490 (U.S. 1919)

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