In re Denson

Citations

• 195 F. 854
• 1912 U.S. Dist. LEXIS 1691

Syllabus

<p>1. Bankruptcy (§ 177*)—Fraudulent Sales by Bankrupt—Right of Trustee.</p> <p>A fraudulent sale by a bankrupt after the filing of tbe petition in bankruptcy made to the agent of the buyer is voidable at the option of the trustee by an appropriate proceeding where the agent had knowledge of facts, charging him with knowledge of the fraud.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 261-263; Dec. Dig. § 177.*]</p> <p>2. Bankruptcy (§ 288*)—Bankruptcy Court—Fraudulent Transfer of . Property by Bankrupt—Recovery—Jurisdiction.</p> <p>Where a bankrupt after the filing of the petition in bankruptcy sold goods in his possession through a bailee to one chargeable with knowledge of the fraudulent transaction, the bankruptcy court has jurisdiction by summary proceeding to compel the restoration of the property or the proceeds thereof to the trustee.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 447; Dec. Dig. § 288.*</p> <p>Jurisdiction of federal courts in suits relating to bankruptcy, see note to Bailey v. Mosher, 11 C. C. A. 313.]</p> <p>3. Bankruptcy (§ 186*)—Fraudulent Sales—Measure of Damages.</p> <p>Where a bankrupt after the filing of the petition in bankruptcy sold merchandise in his possession through a bailee to a buyer chargeable with knowledge of the facts, the bankruptcy court properly required the buyer to restore to the trustee the value of the goods as invoiced instead of the price the buyer paid; the evidence as to value being conflicting, and the bankrupt testifying that the goods were new and worth the invoice price.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 285, 319; Dec. Dig. § 186.*]</p> <p>4. Bankruptcy (§ 288*)—Fraudulent Sales—Liability of Agent.</p> <p>Where a bankrupt after the filing of the petition in bankruptcy sold merchandise in his possession through a bailee to an agent, who surrendered possession to his principal, the bankruptcy court in summary proceedings against the agent and