Brown v. O’keefe, 300 U.S. 598 (1937)

Please note: this case begins in mid-page. It therefore shares a citation with the last page of the previous case. If you are attempting to follow a link to the last page of 300 U.S. 588, click here.

Brown v. O’Keefe

No. 575

Argued March 8, 1937
Decided March 29, 1937
300 U.S. 598

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE THIRD CIRCUIT

Syllabus

1. Shares of national bank stock, scheduled by their registered owner in his voluntary petition in bankruptcy, were disclaimed by the trustee as burdensome assets, by direction of the court. Held that, notwithstanding the adjudication of bankruptcy, their ownership remained in the bankrupt, continuously, or by relation, from the date of filing the petition. P. 602.

2. The statutory liability of a shareholder in a national bank in course of voluntary liquidation (12 U.S.C. 181, 182), is enforceable by a creditor or creditors suing for themselves and for others similarly situated. P. 603.

3. An assessment by the Comptroller is not a condition precedent, in cases of voluntary liquidation, to proceedings by creditors. P. 604.

4. Creditors of a national bank which is in course of voluntary liquidation and known to be insolvent, may enforce the statutory liability of a bankrupt shareholder by filing their claims in the court of bankruptcy. That court has authority to liquidate, or to direct the liquidation of, such claims when, as in this case, their amount is susceptible of prompt ascertainment. P. 604.

5. The liability of the shareholder of a national bank to creditors, though statutory, is a liability upon quasi or implied contract, in kind provable and dischargeable in bankruptcy. P. 606.

85 F.2d 885 reversed.

Certiorari, 299 U.S. 539, to review the affirmance of a judgment against a shareholder of a national bank in a suit by the Receiver of the bank based on a Comptroller assessment. The shareholder interposed a discharge in bankruptcy.