US LAWS, STATUTES and CODES : Chan Robles Virtual Law Library USA Supreme Court Decisions | Resolutions : Chan Robles Virtual Law Library

ChanRobles™ Virtual Law Library™ |™   
Main Index Repository of Laws, Statutes and Codes Latest Philippine Supreme Court Decisions Chan Robles Virtual Law Library Latest Legal Updates Philippine Legal Resources Significant Philippine Legal Resources Worldwide Legal Resources Philippine Supreme Court Decisions United States Legal Resources United States Supreme Court Jurisprudence ChanRobles LawTube - Social Network

ChanRobles Internet Bar Review : DebtKollect Company, Inc. - Debt Collection Firm Intellectual Property Division - Chan Robles Law Firm

Philippine Supreme Court DecisionsChanRobles On-Line Bar Review

google search for chanrobles.comSearch for

SHAPIRO V. WILGUS, 287 U. S. 348 (1932)

Subscribe to Cases that cite 287 U. S. 348 RSS feed for this section

U.S. Supreme Court

Shapiro v. Wilgus, 287 U.S. 348 (1932)

Shapiro v. Wilgus

No. 40

Argued November 10, 1932

Decided December 5, 1932

287 U.S. 348


1. To prevent disruption of his business by suits of hostile creditors and to cause the assets to be nursed for the benefit of all concerned, a debtor in Pennsylvania, where the law permits appointment of a receiver for the business of a corporation but not for that of an individual, caused a corporation to be formed in Delaware and conveyed to it all of his property in exchange for substantially all of it shares and its covenant to assume payment of his debts. Three days later, joined with a simple contract creditor, he sued the corporation in a federal court in Pennsylvania, invoking jurisdiction on the ground of diversity of citizenship, and, with the consent of the corporation, obtained on the same day a decree appointing receivers and enjoining executions and attachments.


(1) That the conveyance and the receivership were fraudulent in law as against nonassenting creditors. P. 287 U. S. 353.

(2) A creditor who, shortly after the decree, brought an action resulting in a judgment against the debtor in a Pennsylvania state court was entitled to an order either for payment out of the assets held by the receivers or for leave to issue execution. P. 287 U. S. 357.

(3) Refusal to grant relief in either of these forms was an abuse of discretion. Id.

2. A conveyance made with intent to hinder and delay creditors, though with no intent to defraud them, is illegal under the Statute of Elizabeth (13 Eliz., c. 5) and under the Uniform Fraudulent Conveyance Act, adopted in Pennsylvania. P. 287 U. S. 354.

3. In any case not covered by the Uniform Fraudulent Conveyance Act, in Pennsylvania, the Statute of Elizabeth is still the governing rule. Id.

4. It is a general rule in the federal courts that a creditor who seeks appointment of receivers must first reduce his claim to judgment and exhaust his remedy at law. P. 287 U. S. 355.

5. Departures from this rule, though allowed in some cases where the defendant acquiesces, are to be jealously watched. P. 287 U. S. 356.

55 F.2d 234 reversed. chanroblesvirtualawlibrary

Page 287 U. S. 349

Certiorari, 286 U.S. 538, to review the affirmance of an order refusing permission to levy an execution from a state court upon property in possession of receivers appointed by the federal court. chanroblesvirtualawlibrary

Page 287 U. S. 351

ChanRobles™ LawTube

google search for Search for

Supreme Court Decisions Philippine Supreme Court DecisionsUS Supreme Court Decisions



Browse By ->> Volume


Browse By ->> Year


  Copyright © ChanRobles Publishing Company | Disclaimer | E-mail Restrictions
ChanRobles™ Virtual Law Library |™