Case ID: us_28/html/0411-01.html
Source: Caselaw Access Project
Author: {"author": "Mr Justice Johnson", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

John Clay, Plaintiff in Error vs. Abraham Smith.
    The plaintiff below,' a citizen of the Atate 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 for ever'discharged “ from nil 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 per cent on hi9 debt, declared, by the assignees of the defendant. Held, that the plaintiff, by voluntarily, making himself .a. parly to those proceedings, abandoned h(s extraterritorial 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 cau.se was held under advisement, the-judgment was entered nunc pro tunc, as en the first day of .this term.
    ERROR to. the district court of the eastern district of Louisiana.
    This-cese was argued at January term 1828, by Mr Livingston,.and was held under advisement until this t&m; on .the. suggestion of counsel, and for information upon the law of the state'of Louisiana, referred to in . the opinion of the court.
   Mr Justice Johnson

delivered the opinion of the Court;

This case comes up from the Louisiana district, by" writ of error, to reverse a judgment obtained ,there by Smith vs. Clay.

Smith, is a citizen of Kentucky; and Clay, of Louisiana; and the action was brought td recover a debt incurred in the year 1808.

Clay?s defence rests upon the validity of a discharge obtained in a court of the state, under a law?of- the state, in the year 1811. The plea sets out his petition to the court ; his surrender of his .effects; the schedule of his debts, in which Smith’s debt is specified, as also the payment to hirn of ten per cent, the ^dividend declared by the assignees of the bankrupt; and the judgment of the court, rendered in pursuance of the consent of more than a majority of his creditors in number and amount, that he be discharged, “as well his person as his future effects, from' all the claims of his creditors.” The language of the plea is, “ upon which said petition, the usual proceedings being had thereon, the said plaintiff and other creditors, and said defendant being parlies thereto, the said Supreme court by their final decree pronounced, in the premises, on the 15th of June *1811, declared the sáid defendant, as well his person as his subsequently acquired property and effects, for ever.released from all claims, debts, and demands,” &c. previously due.

This plea is demurred to, and thus the. question is raised, whether Smith, by voluntarily making himself party to such proceedings, has not abandoned his extra-territorial immunity from the operation of the bankrupt laws of Louisiana.

We are of opinion that he did; and was bound by the decision of the state cc art to the same extent to which the citizens of that state were bound.

Judgment reversed.

Case remanded, with instructions to enter judgment for defendant there. And in consequence of the death of Clay, while thé cause was held under.advisement, tha.t it be entered, nunc pro tunc, as on the first day of this term.

This cause came on to be heard on the transcript of the record from the district cour,t of the United States for the district of Louisiana, and Was argued hy counsel j on consideration whereof, it is ordered and adjudged by this court, that the judgment of the said district court in this cause be* and the same is hereby reversed, and that the cause be, and thé same is remanded to the said district court, with instructions to the said court to enter judgment for John Clay, the defendant in said court. And it is further ordered by the court,' that in consequence of the death of the said Clay, -while this cause was held under advisement, that judgment' be entered, nunc pro tunc, as on the first day of this term.