The San Francisco call., 1898-05-15
NEVADA BANK HAS
 WON THE CASE
It Will Collect a Large Sum as a Deficiency Judg-
 naent.
Creditors of Linforth, Kellogg q Go. Estopped From Dispuung
 the Claim.

After many years of litigation and lying in the courts awaiting decisions arsu- ments etc. on technical propositions, the matter of proceedings in the case ol James Iinforth, John Bensley ana L. b Renchley. copartners under the firm name of IAnforth, Kellogg & Co.,, was brought to an end yesterday by United States DIS trict Judge de Haven in decision ren- dered from the bench.
 The proceeding was commenced by the assignee in bankruptcy under section 5ooI Revised Statutes of the United States for the purpose of determining the valid ity of the claim filed by E. w. Chapman against the individual assets or Joiln BensIey, who was a copartner ln the firm. The facts of the case are these;
 On November "A, 1875, John Bensley exc cuted to the Nevada Bank of San trah- cisco his pronissory note for SSo,ooo' pay able one year after date with interest The bank assigned the note ana, ana inni noix and he began an action to toreclose lne mortgage The parties afterWard caine together and the assgnees ana I9I,o. induced the court to make an order pro yiding that in any judgment Tor lore closure the plaintiff should WalVe any personal judgment against Benslesd aS pam fo rupt The action never proceeded 10 Judgment and was dismissed on Marcn
 previous to the dismissal Bensley and his creditors and those of the firm had agreed that the court should enter a de cree of final discharge of Bensley Tn the bankruptcy proceedings and direct the assignees to reconvey to him his indiyid- uaI property free from and discharged or said proceedings in bankruptcy, with the understanding that the rights or the ln- dividuaI creditors of Bensley to any prop erty or security that they might hold or be entitled to should not be preJn- diced or affected Bensley agreeing to pay all claims in the same manner and to the same extent as if said bankrupt proceed ings were never entered into.
 In December, 1880, Coffin reaSS1gned to the Nevada Bank the note ani mortgage, and the bank began proceedings against Bensley for foreclosure. On June ,, 1SS2, bank against Bensley for S93, ,759 94 with costs, and the sum of $57 ,152 92 was real ized from the sale of the property, leav- ing a deficiency of S37,727 51, which was docketed as judgment against Bensley. An appeal from the deficiency judgment was entered on the ground that BensIey summons in the action, the court had no jurisdiction to render a personal judg- ment against him for such deficiency.
 The claim was then assigned to Chap man on December I, 1883, and a decree was entered setting aside certain con- veyances of real property alleged to have defrauding his creditors, vacating the former judgment of discharge of Bensley from bankruptcy. and compelling the re- conveyance of all property conveyed to Bensley by the assignees in bankruptcy pursuant to said order.
 In rendering the decision Judge de Haven said: ''In my opinion the firm creditors are stopped by their agreement from disputing the claim now made by Chapman to be. paid out of the individual estate of Bensley, and the effect of the decree was to bring again all of the in- dividual assets of Bensley under the jur- isdiction of this court for administration in the bankruptcy proceedings, but it did not affect the then existing right of Chap man under the agreement to enforce pay ment of his claim against Bensley out of such assets.
 The prayer of the assignees was accord inglV denied.