BANKRUPTCY - CHAPTER X REORGANIZATION - POWER OF THE TRUSTEE TO SUE IN A FOREIGN JURISDICTION

Authors

Shubrick T. Kothe S.Ed., University of Michigan Law SchoolFollow

Abstract

Plaintiffs, trustees appointed under Chapter X of the Bankruptcy Act, as amended, by the District Court for the Eastern District of Virginia, sued defendants in the District Court for the Southern District of New York to recover corporate assets, alleging a conspiracy to defraud the debtor corporation. Jurisdiction was rested, not upon diversity of citizenship, but upon sections 2 and 102 of the Bankruptcy Act, and certain sections of the Judicial Code, not pertinent here. The district court dismissed the action for want of jurisdiction. On appeal, held, reversed. The reorganization trustee under Chapter X may maintain an action in a federal district court other than the reorganization court to recover assets of the debtor corporation in its district without alleging separate grounds for federal jurisdiction. Austrian v. Williams, (C.C.A. 2d, 1946) 159 F. (2d) 67.

Recommended Citation

Shubrick T. Kothe S.Ed., BANKRUPTCY - CHAPTER X REORGANIZATION - POWER OF THE TRUSTEE TO SUE IN A FOREIGN JURISDICTION, 45 Mich. L. Rev. 906 (1947).
Available at: https://repository.law.umich.edu/mlr/vol45/iss7/8