NATIONAL BANK
v.
WARREN

U.S. | 1877-10-01
96 U.S. 539 Supreme Court of the United States (1877) Caution
Also reported at: 24 L. Ed. 640 · 1877 U.S. LEXIS 1694 · SCDB 1877-114
Cited by 7 cases

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Synopsis

The Supreme Court held that a debtor's mere failure to resist judicial proceedings against him does not constitute giving a preference under the Bankruptcy Act, and that a creditor's judgment and execution are not avoided merely because the debtor did not file a bankruptcy petition or because the creditor was aware of the debtor's insolvency. The Court reversed the Circuit Court's decree and affirmed the District Court's dismissal of the debtor's complaint challenging the creditor's judgment.

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Opinion of the Court
Mr. Justice Hunt,

Mr. Justice Hunt,

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

This action goes upon the theory that the mere non-resistance of a debtor to judicial proceedings against him, when the debt is due and there is no valid defence to it,-is the suffering and giving a preference under the Bankrupt Act. This theory is expressly repudiated in the .case of Wilson v. City Bank, 17 Wall. 473. It is also held-in that case that the facts that the debtor does not hiinself file the petition in bankruptcy under such circumstances, and that the creditor was aware of the insolvency of the debtor, do not avoid the judgment and execution. In the present case, there is hot proven a single fact or •circumstance tending to show a concurrence or aid on the part of the debtors in obtaining the judgment or securing the payment of the debt. Their only effort was to obtain delay, apparently in the hope of • relief from the • embarrassments which finally overwhelmed them.

The decree of the Circuit Court must be reversed, and that of the District Court, dismissing the bill with costs, affirmed; and it is

So ordered.

Cases With Similar Vibessemantic neighbors from the corpus

Citator

Cited By

  • Wilson v. Nelson, 183 U.S. 191 (U.S. 1901)
    …in bankruptcy are commenced and of that which they have collusively with some of their creditors attempted to withdraw from ratable distribution with intent to prefer some creditors over others.” Similar views prevailed in National Bank v. Warren, 96 U. S. 539, where'it was held that the mere non-resistance of a debtor to judicial proceedings in which a judgment was rendered against him, when the debt was due and there was no valid defence to it, it is not the suffering and giving a preference under thebd…
    1 / 2
  • Erie Coal & Coke Corp. v. United States, 266 U.S. 518 (U.S. 1925)
    …re is no reason why it should not apply to contracts made in pursuance of the later act. It must be held that, because of the failure to make and sign a written contract as required by § 3744, the United States was not bound. Clark v. United States, 96 U. S. 539, 541; South Boston Iron Co. v. United States, 118 U. S. 37, 42; St. Louis Hay & Grain Co. v. United States, 191 U. S. 159, 163. And see Monroe v. United States, 184 U. S. 524, 527; United States v. New York & Porto Rico S. S. Co., 239 U. S. 88, 92;…
  • Reed v. McIntyre, 98 U.S. 507 (U.S. 1878)

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