The Federal Reporter with Key-Number Annotations, Volume 256: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, May-July, 1919. Page: 84
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256 FEDERAL REPORTER
BANK OF COMMERCE & TRUSTS OF RICHMOND, VA., v. McARTHUR
(Circuit Court of Appeals, Fifth Circuit. February 27, 1919.)
1. FRAUDULENT CONVEYANCEs 0=241(5)-REMEDY OF CREDITOR--CONDITIONS
A creditor, to maintain a suit to set aside fraudulent transfers by debt-
or and subject the property, need not have judgment at law and execution
returned unsatisfied in that jurisdiction; he showing that he had ex-
hausted his legal remedies by recovering judgment, on which execution
was returned unsatisfied, In the only jurisdiction in which process could
be served on the debtor.
2. FRAUDULENT CONVEYANCEs =255(3)-SuIT TO AVOID-NECESSARY PARTIES.
Judgment debtor, having no longer any interest in property fraudu-
lently transferred by him, is not a necessary party to suit by judgment
creditor to set aside the transfer and subject the property to the judgment.
Appeal from the District Court of the United States for the South-
ern District of Florida; Rhydon M. Call, Judge.
Suit by the Bank of Commerce & Trusts of Richmond, Va., against
Adam McArthur and others. Bill dismissed (248 Fed. 138), and com-
plainant appeals. Reversed.
E. J. L'Engle and M. H. Long, both of Jacksonville, Fla. (J. Craw-
ford Biggs, of Raleigh, N. C., on the brief), for appellant.
H. L. Anderson, of Jacksonville, Fla., and H. M. Hampton, of Ocala,
Fla., for appellees.
Before WALKER and BATTS, Circuit Judges, and GRUBB, Dis-
WALKER, Circuit Judge. This is an appeal from a decree dismiss-
ing, on motions of the appellees Walter Ray and N. G. Wade, a bill of
complaint filed against them and others by the appellant, Bank of Com-
merce & Trusts of Richmond, Va. The dismissed bill, which was
filed September 29, 1916, disclosed the following, among other, facts:
On or before October 1, 1912, Adam McArthur, J. Sprunt Newton,
and W. M. Walker, by written indorsement, guaranteed $100,000 of
the bonds of the Newton-McArthur Lumber Company, a North Caro-
lina corporation, which bonds became the property of the appellant.
In an action on some of those bonds brought in September, 1913, in
the United States District Court for the Eastern District of North
Carolina by the appellant against Adam McArthur, Newton, and Walk-
er, who reside in North Carolina, judgment was rendered against them
in the sum of $7,082.32. In another action brought in the same court
in March, 1914, by the appellant against the same parties on other
bonds of the same issue, judgment was rendered on June 13, 1914, for
the sum of $80,000, with interest thereon from October 1, 1913. Ex-
ecutions were duly issued on the two judgments. Under the execution
issued on the $7,082.32 judgment, all of Adam McArthur's personal
47For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
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The Federal Reporter with Key-Number Annotations, Volume 256: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, May-July, 1919., legislative document, 1919; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38827/m1/98/: accessed March 24, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.