Gage Lumber Co. v. McEldowney

Citations

• 207 F. 255
• 124 C.C.A. 641
• 1913 U.S. App. LEXIS 1619

Syllabus

<p>1. Bankruptcy (§ 140*)—Passing Title.</p> <p>Complainant purchased lumber of specified quantities, dimensions, kinds, and prices per 1,000 feet from the bankrupt, to be manufactured subject to guaranteed freight rates and inspection, the contract providing for an advancement of $30,000 in notes and payment half cash on each invoice as rendered, the balance to apply on payment of the notes given, to continue until the advancement was iiaid, after which the invoices would be paid in full. Held, that title to lumber cut and piled in the yards, of the bankrupt, and intended to be appropriated to the contract at the time bankruptcy intervened, had not passed to complainant, so as to entitle it to recover the value of such lumber from the trustee.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 198, 199. 219, 225; Dec. Dig. § 140.*]</p> <p>2. Bankruptcy (§ 188*)—Sales—Property to be Manufactured—Equitable Lien.</p> <p>Where complainant purchased a quantity of lumber, to be manufactured and shipped to it by the bankrupt, advancing large sums before the lumber was sawed, complainant acquired an equitable lien on lumber piled in the yards of the bankrupt and intended to be applied on complainant’s contract for the balance of advances, etc., which was enforceable as against the bankrupt’s trustee.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 270, 286-289, 291-295; Dec. Dig. § 188.*]</p> <p>3. Bankruptcy (§ 101*)—Filing Petition—Effect—Bankrupt’s Property —Custodia Legis.</p> <p>Filing of a petition in bankruptcy is an assertion of jurisdiction by the bankruptcy court, with a view to determining the status of the bankrupt and a settlement and distribution of his estate; the exclusive jurisdiction -of the bankruptcy court being so far in rem that the estate is regarded as in custodia legis from the filing of the petition.</p> <p>[Ed. Note.—For other eases, see Bankruptcy, Cent. Dig. § 163; Dec. Dig. § 101.*]</p> <p>4. Assignments por Bene