UNITED STATES SUPREME COURT DECISIONS ON-LINE

An unincorporated association was authorized by Illinois to transact an insurance business there and in other States. It qualified to do business in Missouri. Petitioner sued the association in a Missouri court. Subsequently, but before judgment was obtained in Missouri, an Illinois court appointed a liquidator for the association, and issued an order staying suits against it. All assets of the association vested in the liquidator. With notice of the stay order, petitioner continued to prosecute the Missouri suit, but counsel for the association withdrew, and did not defend it. Petitioner obtained a judgment against the association in Missouri, and filed a copy as proof of his claim in the Illinois proceedings. An order disallowing the claim was sustained by the Supreme Court of Illinois. An appeal was taken to this Court.

Held:

1. The question whether full faith and credit should have been given the Missouri judgment does not present a ground for appeal, but certiorari is granted under Judicial Code § 237(c). P. 329 U. S. 547. clubjuris

Page 329 U. S. 546

2. Under the Full Faith and Credit Clause of the Constitution (Art. IV, § 1) and R.S. § 905, the nature and amount of petitioner' claim was conclusively determined by the Missouri judgment, and may not be relitigated in the Illinois proceedings, it not appearing that the Missouri court lacked jurisdiction over either the parties or the subject matter. Pp. 329 U. S. 550-554.

3. The establishment of the existence and amount of a claim against the debtor in no way disturbs the possession of the liquidation court, in no way affects title to the property, and does not necessarily involve a determination of what priority the claim should have. Pp. 329 U. S. 549, 329 U. S. 554.

391 Ill. 492, 63 N.E.2d 479, reversed.

Petitioner obtained a judgment in Missouri against an Illinois association for which a liquidator had been appointed in Illinois after the suit was brought, and filed a copy as proof of his claim in the Illinois proceedings. The Supreme Court of Illinois affirmed an order disallowing the claim. 391 Ill. 492, 63 N.E.2d 479. An appeal to this Court was treated as a petition for certiorari, and certiorari was granted under Judicial Code § 237(c). Reversed, p. 329 U. S. 554.