Pusey & Jones Co. v. Hanssen - 261 U.S. 491 (1923)


U.S. Supreme Court

Pusey & Jones Co. v. Hanssen, 261 U.S. 491 (1923)

Pusey & Jones Co. v. Hanssen

No. 431

Argued February 27, 1923

Decided April 9, 1923

261 U.S. 491

Syllabus

1. In the absence of a statute, a suit for a receiver of an insolvent corporation cannot be maintained in the district court by an unsecured simple contract creditor. P. 261 U. S. 497.

2. A remedial right to proceed in a federal court in equity cannot be enlarged by a state statute. P. 261 U. S. 497.

3. Section 3883 of the Revised Code of Delaware, 1915, empowering the Chancellor to appoint a receiver for an insolvent corporation "on the application and for the benefit of any creditor," etc., does not confer upon the creditor a substantive right but merely provides a new remedy, which cannot affect proceedings of the federal courts in equity. P. 261 U. S. 498.

4. A decree confirming and continuing a receivership of a corporation, entered without equity jurisdiction on the application of a simple unsecured contract creditor, could not be cured by the mere intervention afterwards of another party claiming to be a creditor with a mortgage lien on the corporation's property. P. 261 U. S. 501.

279 F. 488 reversed.

Certiorari to a decree of the circuit court of appeals affirming a decree of the district court confirming and continuing a receivership.

Page 261 U. S. 494



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