The Pacific commercial advertiser. [volume] (Honolulu, Hawaiian Islands) 1885-1921, 1902-09-03
CANNOT
INTERFERE
Territorial Court
Judgment Is
Void.
INTERPRETATIONS
BANKRUPTCY LAW
Judge Esies Holds That Only
Federal Court Has Jurisdic.
ton in Such Matters.

Judge Estee laid down an important
rule in bankruptcy cases yesterday in
his decision in the case of S. w. Leder-
er, refusing to dissolve an injunction
restraining the enforcement of execu-
ton obtained in Judge Dickey's court.
Hoffschlaeger & Co. and the Hawaiian
Star Newspaper Association had OBJ
tanned judgments against the bankrupt
within four months prior to the time
of the filing of the petition in involun-
tary bankruptcy, and Judge Estee is
sued an injunction restraining High
Sheriff Brown from enforcing the lien.
In a petition to dissolve the injunc-
ton thus granted it was urged by
Thayer & Hemenway, attorneys for
petitioners, that the Federal Court had
stay proceedings in a State court in
which a suit is pending concerning the
property of the alleged bankrupt, and
before adjudication has been had.
Judge Estee in passing upon the mat
ter said that the object of the bank
ruptcy act is to compel an equal dis
tribution Of the property and to prevent
discrimination in favor of any one cred
itor
THE statute seems too clear to be
misunderstood says Judge Estee in
opinion rendered yesterday; land it is
evidently the meaning and intent of
the bankruptcy law that the bankrupt
~ courts shall have full and complete
jurisdiction and power over the assets
of the bankrupt, wherever they may
be, and while it is true that these re-
orders We're issued before the
hearing upon the petition to declare
Lederer a bankrupt, yet they simply
act as stay to prevent the property
of the bankrupt levied upon under the
being sold and passing into
the hands of strangers until it can be
whether the said Lederer
is a bankrupt; and then the question
of whether the judgments are void as
having been obtained within the re-
passed upon. IF Lederer is adjudged
a bankrupt by this court, and it is ap-
parent that these judgments were OBJ
tanned within the statutory four
months prior to the filing of the petit
ton, the judgments are null and void.
The adjudication will at once vacate
the judgments. and whatever jurisdic-
ton the Territorial court had over the
matter would cease.
1T is not reasonable to suppose that
where, as has been decided many times,
an adjudication of person as a bank
rupt will vacate and render null and
void any judgment obtained against
linn while insofvent within four months
prior to the filing of the petition in
bankruptcy, that the power of this
court is SO limited that it cannot stay
the proceedings of a State court or any
officer thereof pending such deternina-
ton Especially in involuntary
cases Qike the one at baD, there is,
therefore, good reason for giving the
court power to enjoin between the time
of filing of the creditors petition and
the return of the order to show cause,
as there is in these cases no voluntary
surrender of property and the title can
not vest in the assignee until after the
The motion to dissolve
the restraining order is denied, the
said order to be continued in full force
in accordance with the terms thereof. "