Respondent, a Colombian corporation, contracted with libelant to transport a cargo of rice in its vessel, the Cali. On January 17, 1948, the Cali was wrecked and most of the rice lost. During the month of February the corporation, Compania Colombiana del Caribe, was formed under Colombian law, and on February 25, 1948, respondent's only other vessel, the Alacran (renamed the Caribe) was transferred to it. On March 7, 1948, libelants brought a libel in personam against respondent in the Canal Zone district court and had the court issue a foreign attachment on the Caribe, then steaming through the Panama Canal. After seizure of the Caribe, libelants amended their libel to charge that the transfer of the Caribe to Compania del Caribe was in fraud of libelants' rights. The proctors for Compania del Caribe moved to vacate the attachment. The district court allowed the motion on the grounds that libelants did not have a direct claim against Compania del Caribe and that any claim against it germinating from the alleged fraudulent transfer was a claim in equity, not a maritime claim. On appeal to the court of appeals, held, affirmed. On rehearing, affirmed. Before judgment, a court of admiralty does not have power to reach equitable interests belonging to a respondent. Swift & Co. Packers v. Compania Colombiana del Caribe S.A., (5th Cir. 1949) 175 F. (2d) 513.
Paul E. Anderson S.Ed.,
ADMIRALTY-FOREIGN ATTACHMENT-JURISDICTION OF COURT DEFEATED BY FRAUDULENT TRANSFER,
Mich. L. Rev.
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