C. S. Morey Mercantile Co. v. Schiffer

Citations

• 114 F. 447
• 52 C.C.A. 249
• 1902 U.S. App. LEXIS 4109

Syllabus

<p>L Bankruptcy — Payments on Account Current — Preferences.</p> <p>The receipt by a creditor of payments upon an account current in the usual course of business, which are followed by new credits for property delivered to the debtor, which becomes a part of his estate, for which the creditor is not paid, and which equals or exceeds in amount and value the payments, does not constitute a preference, under section 00a, and does not require the creditor to surrender such payments, as a condition of the allowance of his claim, under section 57g of the bankrupt act of 1898.</p> <p>2. Same— Creditor's Claim on Account Current not Divisible.</p> <p>The claim of a creditor for a balance due upon an account current with the bankrupt is one single claim, and in determining its allowance, and the existence of alleged preferences arising out of the acts it evidences, it must bo so considered. It may not be divided into its items or into separate claims for that purpose.</p> <p>8. Sake — ¡Surrender of Preferences — 2Tew Credits.</p> <p>A creditor who comes within the provisions of section 60c of the bankrupt act may set off, the amount of his new credits therein mentioned against the amount he would otherwise he required by section 57g to surrender before proving his claim, although he did not have reasonable cause to believe that the transfer of the property to him was intended as a preference, and although the property so transferred is not recoverable by the trustee under section 60b.</p> <p>(Syllabus by the Court.)</p>