Pusey & Jones Co. v. Hanssen, 261 U.S. 491 (1923)

Pusey & Jones Co. v. Hanssen

No. 431

Argued February 27, 1923
Decided April 9, 1923
261 U.S. 491

CERTIORARI TO THE CIRCUIT COURT OF APPEALS

FOR THE THIRD CIRCUIT

Syllabus

1. In the absence of a statute, a suit for a receiver of an insolvent corporation cannot be maintained in the district court by an unsecured simple contract creditor. P. 497.

2. A remedial right to proceed in a federal court in equity cannot be enlarged by a state statute. P. 497.

3. Section 3883 of the Revised Code of Delaware, 1915, empowering the Chancellor to appoint a receiver for an insolvent corporation "on the application and for the benefit of any creditor," etc., does not confer upon the creditor a substantive right but merely provides a new remedy, which cannot affect proceedings of the federal courts in equity. P. 498.

4. A decree confirming and continuing a receivership of a corporation, entered without equity jurisdiction on the application of a simple unsecured contract creditor, could not be cured by the mere intervention afterwards of another party claiming to be a creditor with a mortgage lien on the corporation’s property. P. 501.

279 F. 488 reversed.

Certiorari to a decree of the circuit court of appeals affirming a decree of the district court confirming and continuing a receivership.