Foust v. Munson S. S. Lines, 299 U.S. 77 (1936)
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U.S. Supreme Court FOUST v. MUNSON S. S. LINES, 299 U.S. 77 (1936)
[Page 299 U.S. 77, 79]
the United States court for the Southern District of New York against the Munson Steamship Lines. His complaint alleges that, February 27, 1930, while deceased was at work for defendant as seaman on its steamship Mundelta, his death was caused by defendant's negligence and, for the benefit of petitioner as surviving father, prays damages in the sum of $15, 000. Defendant's answer denies the negligence charged against it and alleges decedent's death was caused by risks assumed and his own negligence.
June 11, 1934, defendant filed its petition for reorganization under section 77B of the Bankruptcy Act. [Footnote 2] The petition did not refer to the administrator's claim or to the action brought for its enforcement. Two days after it was filed, the court entered a decree that approved the petition as properly filed, declared the debtor unable to meet its debts as they mature, determined it required relief under section 77B, appointed trustees to take and operate its property and, inter alia, enjoined the institution or prosecution of any action at law against the debtor.
[Page 299 U.S. 77, 88]
proceeding under section 77B (11 U.S.C.A. 207). Injunction against that method of establishing the debtor's liability, if any there is, ought not to stand.
REVERSED.
Mr. Justice STONE took no part in the consideration or decision of this case. Footnotes
Footnote 1 'In case of the death of any seaman as a result of any ... personal injury (suffered in the course of his employment) the personal representative of such seaman may maintain an action for damages at law with the right of trial by jury. ... Jurisdiction in such actions shall be under the court of the district in which the defendant employer resides or in which his principal office is located.' 46 U.S.C. 688 (46 U.S.C.A . 688); Panama R. Co. v. Johnson, 264 U.S. 375, 391, 44 S.Ct. 391, 395; Lindgren v. United States, 281 U.S. 38, 40, 50 S.Ct. 207, 208.
Footnote 2 Added by Section 1, Act of June 7, 1934, 48 Stat. 912, 11 U.S.C. 207 (11 U.S.C.A. 207).
Footnote 3 'No policy of insurance against loss or damage resulting from accident to or injury suffered by an employee ... shall be issued or delivered in this state ... unless there shall be contained within such policy a provision that the insolvency or bankruptcy of the person insured shall not release the insurance carrier ... and stating that in case execution against the insured is returned unsatisfied ... because of such insolvency or bankruptcy, then an action may be maintained by the injured person, or his or her personal representative,' against the insurer for the amount of the judgment not exceeding the amount of the policy.
Footnote 4 11 U.S.C. 103 (11 U.S.C.A. 103).
Footnote 5 These subdivisions relate to claims: (g) Of creditors who have received preferences; (i) secured by individual undertaking of another; (j) based on debts owing the United States, a state, etc., as a penalty or forfeiture; and (m) of any estate being administered in bankruptcy. 11 U.S.C. 93 (11 U.S.C.A. 93(g, i, j, m).
Footnote 6 These declare: (a) That the trustee succeeds to the bankrupt's title as of date of adjudication; and (e) may avoid any transfer which any creditor of bankrupt might have avoided. 11 U.S.C. 110 (11 U.S.C.A. 110(a, e).
Footnote 7 11 U.S.C. 29 (11 U.S.C.A. 29).
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