UNITED STATES SUPREME COURT DECISIONS ON-LINE

Congress has the right to establish a uniform system of bankruptcy throughout the United States, and having given jurisdiction to a particular court to administer the property, that court may, in some proper way, call upon all parties interested to appear and assert their rights.

The bankruptcy court, or its referee, in which the bankruptcy proceedings are pending, has jurisdiction under § 60d of the Bankruptcy Act to reexamine, on petition of the trustee, the validity of a payment or transfer made by the bankrupt in contemplation of bankruptcy to an attorney for legal services to be rendered by him, and to ascertain and adjudge what is a reasonable amount to be allowed for such services and to direct repayment of any excess to the trustee, and if the attorney is a nonresident of the district, an order directing him to show cause or a citation or notice of the proposed hearing may be served without the district.

Jurisdiction to reexamine such a transfer was not conferred upon any state court.

The trustee may not maintain a plenary suit instituted in the district court where the bankruptcy proceeding is pending against such attorney upon service of process made on such attorney, if he is a nonresident of that district, outside of the district.

The facts are stated in the opinion. clubjuris

Page 210 U. S. 247