United States Supreme Court Cases & Opinions

U.S. Supreme Court

Straton v. New, 283 U.S. 318 (1931)

Straton v. New

No. 137

Argued March 3, 1931

Decided April 20, 1931

283 U.S. 318

Syllabus

1. Where creditors have obtained and docketed judgments constituting liens on the real estate of their debtor, and have instituted a creditors' suit in a state court to marshal the liens and enforce them by a sale of the real estate, the bankruptcy of the debtor, occurring more than four months after the institution of the creditors' suit, does not oust the state court of jurisdiction, nor vest in the court of bankruptcy power to enjoin further proceedings in the state court. Pp. 283 U. S. 320, 283 U. S. 323.

2. The state court proceeding described in the certificate in this case, when examined with the West Virginia statutes upon which it is based, is found to be a suit by a judgment creditor for the enforcement of the lien of his judgment on the debtor's real estate,

Page 283 U. S. 319

in which all liens of creditors on such real estate are ascertained and marshalled and the realty sold for their satisfaction. It is not of the class of proceedings under state insolvency laws which are suspended by the federal Bankruptcy Law. P. 283 U. S. 327.

Response to a question certified, upon an appeal to the court below from an order of the district court, in bankruptcy. The order enjoined commissioners of a West Virginia court from selling certain real estate pursuant to its decree.