In re Shea

Citations

• 126 F. 153
• 61 C.C.A. 219
• 1903 U.S. App. LEXIS 4297

Syllabus

<p>1. Bankruptcy — Setting Aside Sale — Value op Property — Necessity op Finding.</p> <p>Where an equity belonging to a bankrupt is appraised and sold for $500, and afterwards, on application of creditors to be let in to bid, the sale is set aside on condition that they agree to pay $1,500, which they do, the court’s failure to find that the equity was worth more than $500 is immaterial to the validity of the decree in view of the presumption that it acted rightly.</p> <p>2. Same — Discretion.</p> <p>Under Bankr. Act 1898, § 2 (Act July 1, 1898, c. 541, 30 Stat. 544 [U. S. Comp. St. 1901, p. 3418]), investing bankuptey courts with such jurisdiction at law and equity as will enable them to cause bankrupts’ estates to be collected and distributed, on it appearing that would-be bidders were, without fault on their part, prevented from bidding at a sale of a bankrupt’s estate, though having notified the trustee of their desire to bid, such a court has discretion to set aside such sale on their agreeing to bid three times the amount realized; though the sale was for the full amount of the appraisal.</p> <p>8. Same — Occasion for Exercise — Loss of Opportunity to Bid.</p> <p>Discretion to set aside a sale of a bankrupt’s estate may properly be exercised where would-be bidders, though having seasonably notified the trustee of their intention to bid, are, without fault on their part, prevented from doing so, whether through the intention or inadvertence of the officer conducting the sale or by accident; and this though such bidders had not offered any specific sum for the property.</p> <p>4 Same — Review.</p> <p>According to the practice in the federal courts, an appellate tribunal is precluded from revising the exercise of discretion in setting aside a judicial sale by a court having equitable jurisdiction, unless there is an abuse of power, or the case is otherwise extreme.</p> <p>6. Same — Refusal to Confirm Sale.</p> <p>Under Bankr. Act 1898, § 70b (Act July 1, 1898, c.