Lowenstein v. Henry McShane Mfg. Co.

Citations

• 130 F. 1007
• 1904 U.S. Dist. LEXIS 286

Syllabus

<p>1. Bankruptcy — Involuntary Proceedings — Good Faith of Petitioners.</p> <p>Where very few of the large number of creditors of a corporation having a large estate, which is in the hands of state receivers, join in a petition in bankruptcy against it, one of them being a company engaged in buying the assets of insolvents, which was not originally a creditor, but purchased claims against the corporation, in some cases paying par for them, and the good faith of others is open to question, the court is justified in resolving all doubtful questions both of fact and law against the petitioners.</p> <p>2. Same — Acts of Bankruptcy — Appointment of Receivers.</p> <p>A corporation for whose property receivers have been appointed by a state court on a bill filed by creditors alleging insolvency, which it confessed, has committed an act of bankruptcy, under Bankr. Act, § 3a, cl. 4, as amended by Act Feb. 5, 1903, c. 487, § 2, 32 Stat 797 [U. S. Comp. St Supp. 1903, p. 410],</p> <p>3. Same — Petitioners—Estoppel.</p> <p>Creditors of a corporation who intervened in a suit against it in a state court and assisted in having receivers appointed, and participated in such proceedings, while large sums were expended and sales of property negotiated by the receivers, are estopped to subsequently file a petition in bankruptcy based on the appointment of the receivers as an act of bankruptcy.</p> <p>4. Same — Contract by Petitioner to Sell Claim.</p> <p>Where a creditor contracted to sell his claim, but, as a condition, agreed to first join in a petition in bankruptcy against the debtor, which he did, transferring and receiving payment for the claim immediately afterward, the claim must be considered as having been owned by the purchaser when the petition was filed.</p>