The New York herald. [volume] (New York [N.Y.]) 1840-1920, 1855-01-19
Supreme COurt-Clrcult.
Before Hon. judge Morris.

DECISION ON CASE ARISING OUT OF THE ENGLISH
BANKRUPT LAW.
JAN. 18.-Daniel T. Youngs, Us. Balhasar de Benort
Stackein-MoRRIs, Justice-From the peadings proofs
and admissions of the parties at the trial. find that the
following facts are established:-
Tho plaintiff Daniel T. Youpgs, is assignee of Cafsr
and Cutter, who, having failed in business did the
Sd Of October 1858 make assgnmt Mt for the benefit
their creditors creating the plaintiff In this suit assignee
Caer and Cutter prior to their failure importing
merchants in the city of New York. Of millinery goods
ry DDS at Basle Switzerland Europe. CATER and Cut
ter purchased DDS OF the dcfen can't and made
payment the goods Caller and Cutter should order
from him, in the wing manner:Stackein, when
Ter at New York and draw upon Coats Co. Of Loadon
for the amount Of the invoice hundred and twenty
days sight Caller aud Gutter had made an arrangement
with Coats Co by which Coats Co were to accept
the drafts of Stackeln and draw upon CATER and Cutter
at New York the amount at 30 days sight According
to this busnesswas for time conducted
On the 18th Of August, lS47, Stackelin drew upon
Coats Co for f64 Is. sterling, ut hundred aud
twenty days sight On the 10Th of August 1si7 Coats
l847 Sacseln drew upon Coats Co. for $50 S. sterling
al one hundred and twenty days sight On the asth Of
September, lS47 this draft accepted by Coats Co.
Coats Co. drew upon CATER Cutter for the Of
each said acceptance at ninety days. which drafts we're
ceptances u Coats Co became due. Coats Co. failed
In business and accordingly to the law Of England
W,
Cutter by letter, informed sacken Of tue failure OF
Coats Co and directed Stacseln 10 draw up0a Smith
Cutter, Jr the member Of their firm then in Paris for
the amount OF the acceptances OF Coats Co.. aud also
directed Staekeln upon the collection of the draft to
be drawn upon Smith Cutter Jr, to remit to Smith Cat
ter Jr, at Paris the eptances of Coats Co. Stack
elm h left with his agent in London the accepsnces OF
Coats Co. 20 be attended to- On the 10th OF January
1S4s stsckeln drew upon smith Cutter Jr at PARIS at
ninety days, for 3,437f 37c, which accepted by
purchase of merchandise. And it was then agreed
hat Tho avt rf fhn l,aA ~al
draft. the defendant, Stacseln, should ret arm to
CATER 4 Cutter the acceptances Of Coats Il Co.
due, and paid. On the Beth OF juno, is4s
the agent OF StackeD In London the two
Of Coats Co., Iroved in the bankrupt proceedings
against Coats Co., and subsequently recovered upon
them dividend Of one sh ling upon the pound, from ths
BANKRUPT estate On Nov +, 1915, Caller Cutter at the
city OF New Yorx gave to tbs agent Stakon aud took
up the acceptance OF Smith Cutter Jr two notes. the
ole for SAL % at Is days and the other for SAL To-
payable in 90 days. The agent Of the defendant
that he had not OF the aceeptances of Coats
&c. but would obtain them. CATER Cutter paid these
two notes at maturity s. me time after the payment Of
these two notes. the agent III the defend returned to
Caller Cutter the acceptances OF Coats Co. an IL
was then discovered by Caller Cutter that the accept
and that the dividend bad paid upon them The de-
fndapt before this suit brought rendered to the
plaintiff the amount and nterest received BY him from
the bankrupt estate. The tender refused by thu
plaintii. defendant, as the parties agree, have
Iaid the amount rendered, into court The plain
tiff claims that tie facts that Stackelin proved
the acceptspces Of Coats Co. in bankrup cy aud re.
eeved dividend upon them discharged Cater Cutter
from all liability to Stacken and that Cater Cutter
in ignorance of those facts paid their notes. the assignee
in this action can recover back the amount of such pay
ment.
OPINION.
The only question presented by these facts is did the
defendant, by causing the acceptances Coats Co. to
be presented TO the Court In Bankruptcy and BY recsy
ing the dividend from the estate OF Coats discharge
Caller Cutter from their liability to himf The accep-
tances OF Coats Co. collateral for the
pay nent OF the debt due by CATER Cutter 10 the de-
PENDANT The defendant had right to the ordinary
aDc legal means to collect the colaeras At the tins
he presented the colateras IN the bankrupt proco dngs
CATER Cutter had also d.honored the acceptance OF
Smith Cutter, Jun, and the defendant had legal right
to appreheDd that all he could receive upon his
claim would be what he could scrape together from two
bankrupt estates and he legally jusaa ,Ie in OBJ
tainirg what he could from the Of Coats Co. by
pursuing the which the Law OF England gave him.
DECISION.
The plaintiff Is entitled 10 the paid into Court
Judgment for the defendant with costs, dismissing
plain .ins complaint