after stating the case, delivered the opinion of the court.
No appearance has been made for the appellees in this court, and we should be at a loss to know the grounds for the decision *204 of the Circuit Court were it not for the opinion of District Judge Boarman, before whоm the case was heard, 39 Fed. Rep. 865, which gives his reasons for entering the decree of dismissal.
It may be premised that no objection arises on account of th¿ amount in controversy in either suit, for at the time these suits were brought the Circuit Court had jurisdiction where such amount exceeded the sum of five hundred dollars. Rev'. Stat. § 629. Nor can there be any doubt of the jurisdiction of this court over the appeals of either appellant, treating them as seрarately appealing, because the case in the trial court involved the question of the jurisdiction of that court. 25 Stat. 693, act of February 25, 1889, c. 236. The decision of the Circuit Court was to the effect-that no relief could be,had in equity, because under the practice prescribed in that State there was a remedy by an action at law. We quote from the opinion:
“ If it be true that Cohn, notwithstanding said purchases, transfers, etc., were ostensibly-made by Mrs. Steinhardt, and the title of record-is in her-name, is the real owner of the property no\v sought to be subjected to the payment of .Cohn’s debts, the complainants have a well-known and ■ adequate remedy at law to makе the property liable for their claims. -
“ The issues made up by the pleadings and evidence involve fundamentally the title to, or the real ownership of, the property in question. The complainants charge that Cohn, in fact and law, is the owner thereof. The defendants deny his ownership, and contend that the sales were real sales to Mrs. Steinhardt. Such issues are not determinable in this court in equity proceedings. ... In the view and purpose of complainants’ charges, Cohn now owns the property, and they have not presented or sought to present such' an action as should be heard in equity, and it is ordered that their suit be dismissed.” .
We are unable to concur in these views. It is well sеttled that the jurisdiction of the Federal courts, sitting as courts of equity, is neither enlarged nor diminished by state legislation. Though by it all differences in forms of action be abolished;
*205
though all remedies be administered in a single action at law ; аnd, so far at least as form is concerned, all distinction between equity and law be ended, yet the jurisdiction of the Federal court, sitting as a court of equity, remains unchanged. Thus, in
Payne
v.
Hook,
So, conceding it to be true, as stated by the learned judge, *206 that the full relief sought in this suit could be obtained in the state cоurts in an action at law, it does not follow that the Federal court-,, sitting as a court of equity, is without jurisdiction. The inquiry rather is, whether by the principles of common law and equity, as distinguished and defined in this and the mother country at the time of the adoption of the Constitution of the United States, the relief here sought was one obtainable in a court of law, or one which only a court of equity was fully competent to give.
In order to determine this question, a further statement is necessarjr of the facts disclosed in and the exact relief sought by these, bills. After the allegations in respect to the judgments, the bills aver that in 1819 and 1880 the defendants entered into a conspiracy to defraud and despoil the creditors of Simon Cohn;-that he proceeded to carry out this scheme by purchasing frorii plaintiffs and others a large amount of goods, on credit, and selling them for cash at a great sacrifice, and these moneys hе had so placed as to be beyond the reach of his creditors. The means by which these goods were received and disposed of are stated at some length. Further, and, as is alleged, in carrying out this scheme, he fraudulеntly procured his wife- to institute a suit for moneys, Avhen none was due from him to her, and he not defending, to recover a judgment for' $4000 ■ as her separate .estate, by which any property in his name could be sold and the title transferred tо his wife. Also, he executed a mortgage for $5800 on certain real estate, to wit, six lots in the town of Providence and a fine brick storehouse thereon, in favor of his brother, a mortgage-which was in fact without any consideration. Thereafter, his brother foreclosed such mortgage, and on foreclosure the property was purchased in the name of Mrs. Steinhardt, Simon Cohn’s mother-in-law. Other property described was purchased in the name of Mrs. Steinhardt, although the money paid therefor was furnished by Cohn, and was part of that realized from the .cash sales heretofore mentioned. All his property had in fact been placed in the name of Mrs. Steinhardt, and he was carrying on business ostensibly in her name, though all the while the real owner. The prayer of the bills is, that *207 the judgment in favor of the wife be set aside as fraudulent; that the defendant, Simon Cohn, be declared the real owner of the properties described ; and that they be taken possession of by a receiver, and sold to satisfy the judgments.
It will be seen from this statement that these bills were substantially creditors’ bills, to subject property — in fact, the property of the defendаnt, but. fraudulently standing in the name of a third party—to the payment of those judgments, and to remove a fraudulent judgment which might stand as .a cloud upon the title of the debtor. Such suits have always been recognized as within the jurisdiction of equity. In 2 Beach on Modern Equity Jurisprudence, § 883, it is said: “ A court of equity will aid a judgment creditor to reach the property of his debtor by removing fraudulent judgments or conveyances" or transfers which defeat his legal remedy at law.” See also 3 Pomeroy’s Eq. Juris., § 1415;
Dockray
v. Mason, 48 Maine, 178 ;
Edgell
v.
Haywood,
3 Atk. 352, 357;
Burroughs
v.
Elton,
11 Ves. 29, 33;
Hendricks
v.
Robinson,
It was further held by the Circuit Court, as appears from the opinion referred to, that Wood and Lee were not entitled to relief by reason of the Newman judgment, on the further ground that Newman and Stockman, being citizens of Louisiana, could not have sued in the Federal court; and that Wood and Lee, their assignees, were equally disabled. This, by reason of that clаuse in the first section of the act of March 3, 1875, 18 Stat. 470, c. 137, conferring jurisdiction on the Circuit Courts, (which statute was in force at the time oh the commencement of this suit,) which reads as follows: “ Nor shall any Circuit or District court have cognizance of any suit founded on contract in favor of an assignee, unless a suit might have been prosecuted in such court to recover thereon - if no assigmnent had been made, except in cases of promissory notеs negotiable by the law merchant and bills of exchange.”
*208
This question has been settled adversely to the appellants, and in accord with the ruling of the Circuit Court, by the case of
Walker
v. Powers,
■ It may be that, when the appellants obtain the relief they seek in respect to the judgments rendered in their own favor in the Federal court, and the property of the defendants has been sold by a receiver or. otherwise, the owners of this Newman judgment may intervene in the case and apply for a share of the funds.
Payne
v.
Hook,
The act of February 25, 1889, which gives this court jurisdiction, 25 Stat. 693, c. 236, provides that “ in cases where the decree or judgment does not exceed the sum of five thousand dollars, the Supreme Court shall not review any question raised upon the recоrd, except such question of jurisdiction.” It follows, therefore, that in this case our inquiry must stop with that question of jurisdiction, which we have thus determined.
The decree of the Circuit Ccfurt dismissing these bills for want of jurisdiction must be reversed, and the consolidated case will be remanded to that courtfor fwrther proceedings i/n accordance with law.
