Bank v. Sherman - 101 U.S. 403 (1879)
U.S. Supreme Court
Bank v. Sherman, 101 U.S. 403 (1879)
Bank v. Sherman
101 U.S. 403
On the 23d of February, 1876, certain creditors filed their petition in the District Court of the United States, praying that A. should be declared a bankrupt. On the 9th of March, he appeared, and leave was given them to amend their petition, by adding new causes of bankruptcy or otherwise. On the 16th of April, he filed his answer, denying that the aggregate of the claims of the petitioners amounted to one-third of the debts provable against him. Time was thereupon allowed for other creditors to unite with the petitioners, and the previous leave to amend the petition was continued. On the 22d of that month, one B. was permitted to unite with the petitioning creditors, and their petition was amended by alleging that A, within six months before the petition was filed committed, by the nonpayment of his commercial paper, an act of bankruptcy. The amount of A's debts then represented was sufficient, and upon the alleged act of bankruptcy set forth in the amended petition, A. was duly declared a bankrupt. On the 12th of July, 1875, an assignment was made to C. as assignee which included all the property and effects of every kind in which A. "was interested or entitled to have" on the 23d of February, 1875. C. filed, July 7, 1877, his bill to reach certain securities which had been transferred by A. on or about March 20, 1875.
1. That the continuity of the proceedings in bankruptcy was unbroken, and that the assignment was operative, according to its terms, although the act upon which the adjudication was had was first alleged in said amendment to the petition.
2. That C.'s suit was not barred by the statute of limitations.
The facts are stated in the opinion of the Court.