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: 85
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BANK OF COMMERCE & TRUSTS V. M'ARTHUR
property, subject to levy, which could be found by the marshal, was
sold, and the net amount of $163.12 was realized and applied on that
judgment. The sum of $56.81 was realized on the execution issued
on the $80,000 judgment; the net proceeds, $4.99, being applied on
that judgment. Before the institution of the suits in which the two
judgments mentioned were rendered, all the property of the Newton-
McArthur Lumber Company had been put in the hands of a receiver.
By proceedings in the receivership suit, all the property of that com-
pany, with an exception to be stated, was converted into cash, and the
net amount realized, $27,500, was applied on the above-mentioned
$80,000 judgment. The only other assets of that company are two
claims, upon which suits have been brought, and $1,500 cash in the
hands of the receiver. Not more than $7,500 can be realized in any
event on the claims in suit. In a suit instituted in a North Carolina
court by the appellant and other creditors of Adam McArthur, all his
real estate which could be subjected to the payment of his debts was
placed in the hands of a receiver. A judgment in favor of a creditor
other than the appellant constitutes a first lien on that real estate. That
real estate is greatly less in value than the amounts remaining unpaid
on the above-mentioned judgments in favor of the appellant. Adam
McArthur, J. Sprunt Newton, and W. M. Walker are named as de-
fendants. The averments of the bill show that all three of them re-
side in North Carolina, and that there is no one in Florida the service
of process upon whom would bind either of them. Each of them is
wholly insolvent. Formerly, and while the debts on which the appel-
lant recovered judgments in North Carolina were in existence, Adam
McArthur had sundry items of property in Florida. That property
was acquired from him by defendants, who live in Florida, and upon
whom process in this suit has been served. It was so disposed of that
Adam McArthur ceased to have any interest in it. But the disposi-
tions of it were made under such circumstances as to be invalid against
the creditors of such former owner.
 The averments of the bill bring the case within an exception to
the general rule that to maintain a creditors' bill there must first have
been a judgment at law and execution thereon returned unsatisfied in
the jurisdiction in which such bill is filed. A creditor sufficiently shows
that he has no adequate remedy at law, in the jurisdiction in which he
seeks equitable relief, when he discloses the impossibility of obtaining
in that jurisdiction a judgment at law against the debtor, and that the
only remedies at law anywhere available have been exhausted with-
out satisfying the demand asserted. The averments of the bill show
that the appellant had exhausted the legal remedies available to it. It
recovered judgments against the debtors in the only jurisdiction in
which process could be served upon them, and executions on those
judgments have been returned unsatisfied. Because of the absence
from Florida of Adam McArthur, that not being the state of his resi-
dence, an action at law on the North Carolina judgments against him
could not be maintained in Florida, as service on him of process in
such action could not be had. By no action at law could the creditor
have reached and subjected the property in Florida which the debtor
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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/m1/99/: accessed January 19, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.