In re Regealed Ice Co.

Citations

• 191 F. 931
• 1911 U.S. Dist. LEXIS 133

Syllabus

<p>1. Bankruptcy (§ 140*) — Ownership of Property — Contract for Building of Machines — Reservation of Title,</p> <p>Bankrupt, an ice company, contracted with another corporation for the building and installing by the latter of the machinery for an ice plant, including an engine, to be paid for in three installments, the last when the work was completed and the machinery met certain tests, and the contractor to retain title to all of the property, which was to be considered personalty, until payment of the full price. Thereafter the con- . tractor contracted with petitioner to make and furnish the engine and other machinery on terms similar to those of the main contract, petitioner retaining title until full payment with right of removal in ease of default. Before petitioner installed the engine, it notified bankrupt of the terms of the contract, and that but one-third of the purchase price had been paid. At that time bankrupt had made two of the three payments on the plant. The' contractor gave petitioner an order on the bankrupt for the remainder due on the engine, which was accepted, but not paid. Bankrupt never made the third payment on the plant, claiming that it did not meet the required tests. Held, that although the order and acceptance did not work a novation, and assuming that bankrupt was justified in refusing to make further payment to the contractor, it did not acquire title to the engine, which it permitted to be installed with full knowledge of petitioner’s rights reserved by its contract, and that petitioner was entitled to reclaim it from the trustee in bankruptcy; it appearing that it could be removed without injury to the other property.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Cent. Dig. §§ 198, 199, 219. 221, 225; Dec. Dig. § 140.*]</p> <p>2. Estoppel (§ 75*) — Equitable Estoppel — Grounds.</p> <p>Under the facts shown, petitioner was not estopped to claim title as against the bankrupt, which’under its own contract did not acquire ti