The New York herald., 1871-02-21
B A n x r UP CY.
Construction Upon the Statute OF Limita.
tions--Important Decision by
Judge Blatchtord.

John Sedg,cfcS, Assignee Ia Banl51lDtcy Of John
~. BerriGn and Cornelius A. Eerrian, u.s. Lenru A.
CaSep-Yesterday Judge Diatchrord delivered his
opinion In the above case, In which ne decides that
an assignee IN bankruptcy has right to sue
party owing bankrupts money for services rendered
by them, the compensation being based upon GER
tain profits derlvabie from business The dslendan,
pleaded that tho cause VI action did arise within
two years before the commencement Of ths suit
but the Judge holds that this case does not come
within the secoad section OF the Bankruptcy act
which provides that no suit at law or In equity IL
mainrainable by an assignee appointed under that
act against party claiming an adverse inte-
rest regarding property or rights OF property OF
the bankrupt transferable TO or vested In the asslg-
nee, unless the same be brought within two years
from the cause OF action accrued to the assignee.
Ee bases this decision on the tact that the plaintiff
does not claim an interest adverse to any property
rsl' o. property rspssssSg nsss to the assignee
This Ia bill IN equity to recover from the defend.
ant money alleged to be due to the paintlr on an
asset oi tue banklupts to pay them as salaries for
their services as certain portions OF the nett profits
which should be realized from the business carried
bankrupts were. so employed rs clerks, such
payments to be made as soon after the
sssa@ 81 funds n er sucsns ass'Ss Is a there
the liabilities Of the business and pay such profits.
The agreement provided that bankrupts should have
no interest III tile stock or property of Tie defend
ants business. The bill prays for an account by
the defendant. he having all the books and papers
from which such profits can no ascertancd and lOr
q discovery OF such books and papers aud for the
payment oil. what shall be fOund due on such nc.
counting The defendant pleads to the bill that the
cause OF acUon did not accrue within two years be.
fore the commencement Of the action and tnat the
defendant did not ut any time within two years after
the defendant make any acknowledgment or
promise to csme to any account for or to pay or in
any way satisfy the plaintif III any sum or sums OF
money for or by reason Of anything alleged in the
bill. The plea OF the
sTArCTE OF LIMITATION
10 evidently supposed to be warranted BY the sec.
0nd section OF the Bankruptcy act, which provides
thai no suit at law or in equity shall In any case be
any person claiming an adverse interest," tcnch;ns
any property or rights ana property Of the bank.
rupt transferable 70 or vested In such assignee In
any court whatsoever unless the same shall be
brought within two years from the time the cause OF
either occurred for the assignee. Tis suit does not
ec eDs or The ,o co
contract Tne PLAINTIFF does not cslm an Interest
adverse to the defendant In or touching any properly
to or vested III the plaintH as their assignee; nor
does the defendant claim any interest adverse 70 tina
p ~ ot the any saEn p0pes Or hgs
or title to the debt or contract which the plaintY is
s@ssking see to enforce asainst the detsndap Nor does
oWNRksn1P or on TITLE SN--T sss:sas;rs
70 any specific property. or riaht Of property as
naying passed 70 nun BY virtue OF his appointment,
wnich the DEFENDANT also claims to own. Nor does
the DEFENDANT claim any ownership OF or title TO any
specldC property which belonged to the bankrupts
Inc time taken OF two years applies only 70 such
Controversies Moreover. It applies only to contr0-
verses OF which, BY the same second section, the
Circuit Court OF the district has concurrent iuris
dicuon with the District Court OF the same dsfrct
The Circuit Court OF this district wsud have no uris
diction OF this suit. The plea is Ovcrruled, with
COSTS an0 the defendant Ia allowed 70 answer the
bill within twenty days.
What Constitutes an Act Of Bankruptcy.
Wd0dce ana H0ilin0shed Us. lanes O'HaUoran.-
This 10 case Of involuntary bankruptcy. The
plaintifs. who carry on business In Warren street.
claim that the defendant indebted to them In the
sum OF $3.50 81, and their petition states that he