Bryan v. Bernheimer

Citations

• 181 U.S. 188
• 21 S. Ct. 557
• 45 L. Ed. 814
• 1901 U.S. LEXIS 1357

Syllabus

<p>A bankrupt, nine days before the filing of a petition in bankruptcy against him, made a general assignment for the benefit of his creditors which was an act of bankruptcy. After the filing of the petition in bankruptcy, the assignee sold the property. After the adjudication in bankruptcy, ■ and before the appointment of a trustee, the petitioning creditors applied to the District Co'urt for an order to the marshal to take possession of the property, alleging that this was necessary for the interest of the bankrupt’s creditors. The court ordered that the marshal take possession, ■ and that notice bo given to the purchaser to appear in ten days and propound his claim to the property, or, failing to do so, be decreed to have no right in it. The purchaser came in, and propounded a claim, stating that he bought.the property for cash in good faith of the assignee, submitted his claim to the court, asked for such orders as might be necessary for his protection, and prayed that the creditors he remitted to their claim against the assignee for the price, or the price be ordered to be paid by the assignee into court and paid over to the purchaser, who thereupon offered to rescind the purchase and waive all further claim to the property. Held, that the purchaser had no title in the property superior to the bankrupt’s estate, and that the equities between him and the creditors ■ should be determined by the District Court, bringing in the assignee if necessary.</p>