Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

MCGRATH v. MANUFACTURERS TRUST CO.

decided: November 7, 1949.

MCGRATH, ATTORNEY GENERAL, AS SUCCESSOR TO THE ALIEN PROPERTY CUSTODIAN
v.
MANUFACTURERS TRUST CO.



CERTIORARI TO THE UNITED STATES COURT OF APPEALS FOR THE SECOND CIRCUIT.

Vinson, Black, Reed, Frankfurter, Jackson, Burton, Minton, McGrath; Douglas and Clark took no part in the consideration or decision of this case.

Author: Burton

[ 338 U.S. Page 242]

 MR. JUSTICE BURTON delivered the opinion of the Court.

Numbers 11 and 15 are cross appeals from Clark v. Manufacturers Trust Co., 169 F.2d 932 (C. A. 2d Cir.).*fn1 Certiorari was granted in No. 11, on petition of the Custodian,*fn2 to resolve a conflict between the judgment below and that in Clark v. Lavino & Co., 175 F.2d 897 (C. A. 3d

[ 338 U.S. Page 243]

     Cir.). The conflict is confined to the Custodian's claim to the allowance of interest, in his favor, in a summary proceeding under § 17 of the Trading with the Enemy Act.*fn3 He claims interest from the date that his Turnover Directive*fn4 was served upon the Manufacturers Trust Company, here referred to as the bank, and computes such interest upon the sum which he ordered turned over. For the reasons hereinafter stated, we agree with the judgment below in its denial of interest. We granted certiorari also on the cross appeal of the bank in No. 15. This was to enable us to re-examine the pleadings and, if they were found to permit it, to consider the bank's claim that the District Court lacked authority to order it to turn over to the Custodian the principal sum in question, in the face of the bank's denial of its indebtedness to the enemy creditor for that sum, its claim of a setoff in excess of the alleged debt, and its claim to a lien upon the proceeds of the debt. We find that the record does not permit us to reach that issue.

February 1, 1946, the Custodian issued his Vesting Order No. 5791, 11 Fed. Reg. 3005, under authority of

[ 338 U.S. Page 244]

     § 5 (b) of the Trading with the Enemy Act,*fn5 vesting himself with the following described "property":

"That certain debt or other obligation owing to Deutsche Reichsbank, by Manufacturers Trust Company, 55 Broad Street, New York, New York, arising out of a dollar account, entitled Reichsbank Direktorium Divisen Abteilung, and any and all rights to demand, enforce and collect the same, . . . ."

January 30, 1947, the Custodian served on the bank his Turnover Directive based upon his Vesting Order and thereby directed that the sum of $25,581.49, "together with all accumulations to and increments thereon, shall forthwith be turned over to the undersigned [the Custodian] to be held, used, administered, liquidated, sold or otherwise dealt with in the interest of and for the benefit of the United States."

October 29, 1947, the Custodian filed in the United States District Court for the Southern District of New York his petition against the bank seeking summary enforcement of his order under § 17 of the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.