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Morris v. Jones

329 U.S. 545, 67 S. Ct. 451, 91 L. Ed. 488, 168 A.L.R. 656 (1947)

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Morris v. Jones

United States Supreme Court
329 U.S. 545, 67 S. Ct. 451, 91 L. Ed. 488, 168 A.L.R. 656 (1947)

MP

Facts

Chicago Lloyds (Lloyds), an insurance company, was authorized to conduct insurance business in Illinois and in Missouri. Lloyds became insolvent, and an Illinois court appointed an Illinois liquidator for Lloyds, but not before a Missouri creditor filed a claim against Lloyds in a Missouri state court. Before judgment in the Missouri case, the Illinois court fixed a time for filing claims against Lloyds and issued an order staying suits against Lloyds. Thereafter, the Missouri creditor who had received notice of the Illinois stay obtained a judgment against Lloyds—despite the withdrawal of Lloyd’s counsel from the suit because the Illinois liquidation proceeding had vested all property of Lloyds in the Illinois liquidator. The Missouri creditor then filed proof of its claim against Lloyds in the Illinois liquidation proceeding. The Illinois court disallowed the claim, and the Illinois Supreme Court affirmed. The Missouri creditor appealed.

Rule of Law

Issue

Holding and Reasoning (Douglas, J.)

Dissent (Frankfurter, J.)

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