Clay v. Smith - 28 U.S. 411 (1830)
U.S. Supreme Court
Clay v. Smith, 28 U.S. 3 Pet. 411 411 (1830)
Clay v. Smith
28 U.S. (3 Pet.) 411
The plaintiff below, a citizen of the State of Kentucky, instituted a suit against the defendant, a citizen of Louisiana, for the recovery of a debt incurred in 1808, and the defendant pleaded his discharge by the bankrupt law of Louisiana in 1811, under which, according to the provisions of the law, "as well his person as his future effects" were forever discharged "from all the claims of his creditors." Under this law, the plaintiff, whose debt was specified in the list of the defendant's creditors, received a dividend of ten percent on his debt, declared by the assignees of the defendant. Held that the plaintiff, by voluntarily making himself a party to those proceedings, abandoned his extra-territorial immunity from the operation of the bankrupt law of Louisiana, and was bound by that law to the same extent to which the citizens of Louisiana were bound.
The plaintiff in error having died while the cause was held under advisement, the judgment was entered nunc pro tunc, as on the first day of this term.
This case was argued at January term, 1828, by Mr. Livingston, and was held under advisement until this term on the suggestion of counsel and for information upon the law of the State of Louisiana referred to in the opinion of the Court.