In re Stewart

Citations

• 179 F. 222
• 102 C.C.A. 348
• 1910 U.S. App. LEXIS 4629

Syllabus

<p>1. Bankruptcy (§ 293*) — Jurisdiction of Court — Accounting by Assignee for Benefit of Creditors — Power to Make Summary Order for Surrender of Property.</p> <p>A general assignment for the benefit of creditors under a state law does not constitute the grantee an assignee for value, but merely makes him the agent of the assignor for the distribution of the proceeds of the property, and being such agent his possession is that of his principal, and, as to property or its proceeds remaining in his possession after the bankruptcy of the assignor, 'he does not hold adversely to the latter’s trustee by the mere fact of such- possession; and where he voluntarily, or in obedience to an order of the state court without objection, submits his account to the bankruptcy court, such court has jurisdiction to settle his accounts and to make a summary order requiring him to turn over such property or funds .to the trustee, notwithstanding his claim to credits on account of commissions, extra services, and bills for legal services and expenses incurred but not paid. As to sums which have been actually paid out by him, however, the court may properly remit the trustee to a plenary action for their recovery.</p> <p>[Ed. Note. — For other cases, see Bankruptcy, Dec. Dig. § 293.*]</p> <p>2. Bankruptcy (§ 484*) — Assignee for Benefit of Creditors — Services and Expenses Incurred After Bankruptcy.</p> <p>Where an assignee for the benefit of creditors retained possession of the property for some years after the filing of a petition in bankruptcy against the assignor and until final adjudication and the appointment of a trustee, no receiver having been appointed, be may not improperly be treated as to the settlement of his accounts as a quasi receiver and allowed compensation for such services and disbursements as benefited the estate, but his right to commissions should be determined by the bankruptcy act ratber than the state statute.</p> <p>[Ed. Note. — For other cases, see Bankruptc