Lyon v. Auchincloss & Company - 37 U.S. 234 (1838)
U.S. Supreme Court
Lyon v. Auchincloss & Company, 37 U.S. 12 Pet. 234 234 (1838)
Lyon v. Auchincloss & Company
37 U.S. (12 Pet.) 234
Bail was entered in the district Court of the United States for the Eastern District of Louisiana, for a defendant, against whom a suit was brought on certain promissory notes. The bail having been fixed, proceedings were afterwards commenced against them, and a defense was taken by them on the ground that the plaintiff had made himself a party to a proceeding under the insolvent laws of Louisiana, which the principal had instituted against his creditors, and in which he had failed to obtain the relief allowed by those laws, a judgment having been given against him on his petition in the district court, in which they were instituted, and in the Supreme Court of Louisiana, to which he carried them by appeal. Held that if the benefit of the insolvent laws had been extended to the principal before the bail was fixed by proceedings against the principal, it might have become a question whether they were not discharged under the rule laid down by the court, in the case of Beers v. Haughton, 9 Pet. 329. But as the proceedings of the principal for the benefit of those laws were dismissed on objections of the creditors, both in the District and Supreme Court of Louisiana, the bail can claim no exemption from the obligations of their bond, on account of these proceedings.
This case was argued at the January term, 1837, by Mr. Butler, for the plaintiffs, and by Mr. Key, for the defendants; and was held under advisement until this Court, an examination of the rules of practice established by the District Judge of the United States of the district of Louisiana, having been considered proper. The case is fully stated in the opinion of the Court.