Eisenrod

The above named Trustee in Bankruptcy brought an action, designated one “to set aside and avoid fraudulent conveyances made by the bankrupt”, against the appellants, and recovered a money judgment from which this appeal is taken. Appellants present but one contention: that this is not truly an action to set aside fraudulent transfers; rather that it was an action to recover damages for certain tortious acts of the defendants in despoiling the bankrupt corporation. Hence it is said, the action is not one authorized by § 70, sub. e of the Bankruptcy Act to be brought in the above named court ; and as diversity of citizenship is lacking, the court could not entertain it. This claim of want of jurisdiction is the sole specification of error presented.

Appellants base their contention upon (1) the complaint; (2), the instructions to the jury; and (3), the verdict, which was a special one. The evidence is not here but from the sources listed appellants undertake to demonstrate that the action was not one to set aside fraudulent transfers within the meaning of § 70, sub. e. Pointing to the language of subdivision (2) of § 70, sub. e, they note that the action there referred to is one to…