Stern v. American Trust & Savings Bank

Citations

• 195 F. 226
• 1911 U.S. App. LEXIS 4820

Syllabus

<p>1. Bankruptcy (§ 113*)—Expenses op Receiver in Excess op Amount Collected by Him—Liability op Petitioning Creditor.</p> <p>The provision in Bankruptcy Act July 1, 1898, c. 541, § 3e, 30 Stat. 547 (U. S. Comp. St. 1901, p. 3423), that when a petition is filed by one to have another adjudged a bankrupt, and an application is made to take charge of- the property of the bankrupt pending a hearing on the petition, the petitioner shall file a bond conditioned for the payment, in case of the dismissal of the petition, of the costs and expenses occasioned by the taking and detention of the property, protect a receiver in bankruptcy for his outlay in excess of the amount collected by him, but it is only in eases where the proceedings, resulting in a receivership, were instituted improvidently or without reasonable cause or without good faith or the like, that the petitioning creditor is liable for the payment of the excess of the cost of the receivership over the assets.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 150; Dec. Dig. § 113.*]</p> <p>2. Bankruptcy (§ 113*)—Expenses op Receiver in Excess op Amount Collected by Him—Liability op Petitioning Creditor.</p> <p>A creditor, who in good faith instituted a bankruptcy proceeding against a debtor whose property consisted chiefly of a manufacturing plant composed of machinery and fixtures which had been within four months mortgaged for an indebtedness much less than the value of the property, did not act improvidently and was not liable for the receiver's outlay in excess of the amount collected by him.</p> <p>[Ed. Note.—For other cases, see Bankruptcy, Cent. Dig. § 150; Dee. Dig. § 113.*]</p> <p>3. - Bankruptcy (§ 255*)—Trustees—Liability.</p> <p>Where a landlord, on his tenant being adjudged a bankrupt, began negotiations for a new tenant and closed a contract with a new tenant who was ready to take possession at once, inquired of the receiver of the bankrupt whether he would be responsible for rent or