In re Freeman

Citations

• 117 F. 680
• 1902 U.S. Dist. LEXIS 89

Syllabus

<p>1. Bankruptcy—Judgments in State Court—Effect.</p> <p>Judgments obtained by a creditor of a bankrupt in a state court were not final and conclusive prior to tbe expiration of the time to appeal therefrom, either on the federal courts or on the trustee in bankruptcy, either as to the existence or amount of the creditor’s claim.</p> <p>2. Same—Judgments—Accord and Satisfaction</p> <p>Accord and satisfaction may be pleaded as a defense to a judgment, notwithstanding it is a debt of specialty and record.</p> <p>8. Same—Consideration—Enforcement</p> <p>Creditors of a bankrupt recovered judgment in a state court, and thereafter, before the expiration of the time to appeal, and in consideration of the trustee’s promise not to appeal, the creditors agreed to accept in settlement two-thirds of the damages fixed by the judgments, together with the costs, to be paid on the trustee’s settlement with certain transferees of the property in suit. The trustees did not appeal, and, after the time limited to appeal had expired, the creditors repudiated the compromise, and refused to accept a tender of the amount stipulated. Held, that such compromise was not nudum pactum, but that on the expiration of the time to appeal without the trustees appealing, it became executed in part, and a valid accord and satisfaction.</p>