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VALLELY V. NORTHERN FIRE & MARINE INS. CO., 254 U. S. 348 (1920)

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U.S. Supreme Court

Vallely v. Northern Fire & Marine Ins. Co., 254 U.S. 348 (1920)

Vallely v. Northern Fire & Marine Insurance Company

No. 96

Submitted November 17, 1920

Decided December 13, 1920

254 U.S. 348

Syllabus

1. A petition to revise in matter of law under § 24b of the Bankruptcy Act is the proper remedy to review an order of an inferior court of bankruptcy vacating an adjudication and dismissing the bankruptcy proceeding for want of jurisdiction upon the motion of the bankrupt after the expiration of the time for appeal, he having neither contested the involuntary petition against him nor appealed from the adjudication. P. 254 U. S. 352.

2. Where it appears from the averments of a petition in involuntary bankruptcy that the person proceeded against is an insurance corporation, and therefore within the exceptions of § 4b of the Bankruptcy chanroblesvirtualawlibrary

Page 254 U. S. 349

Act, as amended in 1910, the court of bankruptcy is without jurisdiction, and its adjudication, rendered upon due service of process and default, and not appealed from, should be vacated, and the proceeding dismissed upon the motion of the company, even after the time for appeal has expired. P. 254 U. S. 352.

3. Where an insurance corporation adjudged bankrupt in an involuntary proceeding after the passage of the Act of 1910, upon due service of process and default, does not appeal from the adjudication, but acquiesces therein and aids the trustee in the performance of his duties in administering the estate, it is not estopped from thereafter questioning the validity of the adjudication and the power of the court and the trustee to proceed. Id.

The case is stated in the opinion.





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