103 N.Y.S. 45 | N.Y. Sup. Ct. | 1906
The bankrupt, Lee, was a broker on the Consolidated Stock and Petroleum Exchange of ISTew York. On May 9, 1901, he committed an act of bankruptcy by making a general assignment for the benefit of his creditors and, within four months thereafter, to wit, on August 27, 1901, a petition in bankruptcy was duly filed. Soon after the making of the general assignment and before the institution of the bankruptcy proceeding, the defendant exchange, claiming to act under its rules and regulations, collected from various members thereof certain sums of money, aggregating $13,287.09, being the balance due by them to Lee on stock transactions on the defendant’s and other exchanges, which moneys, except $258.01 used for expenses and $164.42 still retained, the defendant distributed among the creditors of Lee who were members of the exchange. The trustee in bankruptcy now sues the exchange to recover the moneys so collected. The doctrine has been well established in this country since the case of Hyde v. Woods, 94 U. S. 523, that a rule providing that the proceeds of a de
Judgment accordingly.