In re Union Dredging Co.

Citations

• 225 F. 188
• 1915 U.S. Dist. LEXIS 1237

Syllabus

<p>1. Bankruptcy <@=>272—Costs and Fees—Claim for Services.</p> <p>A claim of one employed by the executive committee of a company, three weeks before it filed its petition in bankruptcy, to go to California on behalf of the company and investigate its operations there, with power to take charge of them, and who, after the petition was filed and receivers were appointed of all the bankrupt’s assets, was instructed by the directors to continue his investigations and report, irrespective of the receivership proceedings, and who reported to the directors, was properly disallowed by the referee as a claim for compensation for services rendered in the administration of the bankrupt estate.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 572, 573; Dec. Dig. <@=>272.]</p> <p>2. Bankruptcy <@=482—Costs and Fees—Attorney for Bankrupt.</p> <p>Under Bankr. Act July 1, 1898, c. 541, § 60d, 30 Stat. 502 (Comp. St. 1913, § 9644), providing that if a debtor, in contemplation of the filing of a petition by or against it, pay money to an attorney for services to be rendered, the transaction shall be re-examined by the court, and held valid only to the extent of a reasonable amount, and that any excess may be recovered by the trustee, the petition for a re-examination is a condition precedent.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. §§ 874-S7C, 897; Dee. Dig. <@=>482.]</p> <p>3. Bankruptcy <@=>482—Costs and Fees—Attorney for Trustee.</p> <p>Under Bankr. Act, § 62, providing that expenses incurred by officers in the administration of estates shall be reported in detail and examined by the court, an allowance should not be made to a trustee in bankruptcy for an attorney employed for services for the estate not requiring professional skill, but within the ability of one of ordinary business capacity ; but a proper compensation may be allowed for necessary legal services to a trustee, and where the trustee of a gold dredging company received $63,000