The daily dispatch. [volume] (Richmond [Va.]) 1850-1884, 1875-07-06
United States Supreme Court - Am-
porfant Decision - Limitation Ol
Suits Under the Rnnkrnpt Law.

Suits tn0cr, the bhnRrUps ha"'
WAsH1Soros July 2.-Tte following opin.
ions have BEEN delivered in the Supreme
Court of the United States: .-g-.-..-. ..t
BANKRUPT LAw-ITs PoLICY-LlMITATIoN OF
No. 225.-John +. Bailey, Assignee Of
Benjamin Giorer, a bankrupt appellant. gs.
Huqh Heir, Nathaniel B. Glover, and Ele.
nora Glouer.-Appeal from the Circuit Court
for the Southern District OF Alabama.
This wasa bill in chaneery, brought b!v the
assignee of Benjamin Glover, bankrupt, to
set aside rs fraudulent and void conyeyances
of real estate by the bankrupt to defendants.
Their demurrer to complainant's bin was
sustained because the suit was not brought
within two years from the appointment of
the assignee. This appeal s taken from the
decree of the court dismissing the bill, and
the sole question here is whether on the case
made by the bill this decision of the Circuit
Court was right. The bill makes a very
clear case of fraudulent conspiracy to de-
fraud the only creditor of the bankrupt
named in his petition. The mode of perpe.
tratipg this fraud was by conveying all his
property, of which the bankrupt possessed
large amount beyond what was necessary TO
pay his debts, to Hugh Weir, his father.in-
law, Nathaniel Glover, his son, and Elenora
Glover, his wife. These conyeyaDces were
made without consideration and with intent
to take the benefit of the bankrupt law,
which he did very soon after these trans.
actions, and procured his discharge.
At that time be was indebted to John
A. Winston & Co., in the sum of $4,000 or
$4,000, for which judgment had been OBJ
tanned against him, and his only purpose
was to evade the payment of this debt. The
bill further alleges that said Benjamin Glover,
the bankrupt, and said Elenora Glover and
Nathaniel r. Glover and Hugh Weir, kept
secret their said fraudulent acts, and endea-
vored to conceal them from the knowledge
of the assignee and of the said John A.
Winston s. Co., whereby they were prevent
ed from obtaining any sufficient knowledge
or information thereof until within the last
two years, and even up to the present time
they have not been able TO obtain full and
particular information as to the fraudulent
disposition made by said Benjamin Glover
of large part OF his property. This bill
was filed January 90, 1873, the complainant
appointed assignee December l, 1869,
and the bankrupt received his dis
charge April II, 1870. That W. Jones.
surviving partner OF John A. Winston Il
Co., in December, 1871, filed petition in the
District Court against the bankrupt in order
to have bis discharge set aside tor this fraud,
but before process could be served on Glover
he died. These are the material allegations
Q { the bill, and if true the whole scheme was
q gross fraud, copce aled by the defendants
from the knowledge Of the assignee and from
Winston & Co., against whom the fraud was
perpetrated. 1t also showed that this suit
was brought three years and few weeks
after the complainant became vested with the
right OF an assignee in bankruptcy in the
case Mr.. Justice Miller delivered the opin-
ion of the court, condensed thus:
The policy of the bankrupt law is speedy
as we'll as equal distribution of tue bank
rupt's assets among his creditors, and the
one is almost as important as the other.
Hence the clause limiting the commence
ment of action by and against the assignee
to two years after the right of action accrues
applies to all judicial contests between the
assignee and any person whose interest Is
adverse to his. But though this clause in
terms includes all suit at law or 10 equity,
we are of opinion that the general principle
applies here; that where the action is in.
tended to obtain redress against fraud con-
ceaed by the party, or which from its nature
remains secret, the bar does not begin to run
until the fraud is discovered. Aud we think
this doctrine is equally applicable on princi-
pie and authority to suits at law as well as
in equity. Reversed.