Watson v. Merrill

Citations

• 136 F. 359
• 69 L.R.A. 719
• 1905 U.S. App. LEXIS 4464

Syllabus

<p>1. Bankruptcy — Rents Accruing after Petition — Provable Claim.</p> <p>Rents which the bankrupt had agreed to pay at times subsequent to the filing of the petition in bankruptcy do not constitute a provable claim under the bankruptcy law of 1898, because they are not a “fixed liability * * * absolutely owing at the time of the filing of the petition against him,” and because they do not constitute an existing demand, but both the existence and the amount of the possible future demand are contingent upon future events, such as default of lessee, re-entry of lessor, and assumption by trustee, so that they neither form the basis of an unliquidated nor of a liquidated provable claim. Act July 1, 1898, c. 541, § 63,, els. “a,” “b,” 30 Stat. 562, 563, 3 U. S. Comp. St. 1901, p. 3447.</p> <p>2. Same — Damages for Breach of Contract to Pay Rents not Provable Claim.</p> <p>Damages for the breach of a contract of the bankrupt to pay rents at times subsequent to the filing of the petition in bankruptcy do not constitute a provable claim, for the same reason that the claim for the rents is not provable.</p> <p>3. Lease — Repossession by Lessor Releases Lessee.</p> <p>The retaking of the premises by the lessor releases the lessee from payment of all subsequently accruing rents unless the contract expressly provides otherwise. . ■.</p> <p>4. Bankruptcy — Trustee—Option to Assume Executory Contracts.</p> <p>The trustee in bankruptcy has the option to assume or renounce the leases and other executory contracts of the bankrupt, as he may deem for the best interest of the estate.</p> <p>5. Same — Adjudication Dissolves No Contracts.</p> <p>An adjudication of bankruptcy absolves the bankrupt from no agreement, terminates no contract, and discharges no liability.</p> <p>6. Same — Adjudication No Breach of Bankrupt’s Lease.</p> <p>An adjudication of bankruptcy in a case in which there was no rent due at the time of the filing of the petition in bankruptcy does not constitute a breach