Gazlay v. Williams

Citations

• 210 U.S. 41
• 28 S. Ct. 687
• 52 L. Ed. 950
• 1908 U.S. LEXIS 1494

Syllabus

<p>Where the trustee can only sell a lease subject to the claim of the lessors that the transfer of the bankrupt’s interest in the lease gives a right of reentry under a condition therein, the bankruptcy court has jurisdiction of a proceeding, initiated by the trustee and to which the lessors are parties, to determine the validity of the lessor’s claim and remove the cloud caused by the lessor’s claim.</p> <p>The passage of a lease from the bankrupt to the trustee is by operation of law and not by the act of the bankrupt nor by sale, and a sale by the trustee of the bankrupt’s interest is not forbidden by, nor is it a breach of, a covenant for reentry in case of assignment by the lessee or sale of his interest under execution or other legal process, where, as in this case, there is no covenant against transfer by operation of law. •</p> <p>147 Fed. Rep. 678, affirmed.</p>