Brookheim v. Greenbaum
| Decision Date | 08 June 1915 |
| Docket Number | 245. |
| Citation | 225 F. 763 |
| Parties | BROOKHEIM v. GREENBAUM. |
| Court | U.S. Court of Appeals — Second Circuit |
Lesser Bros., of New York City (William Lesser and James B Stephens, both of New York City, of counsel), for appellant.
Wesselman & Kraus, of New York City (Bertram L. Kraus, of New York City, of counsel), for appellee.
Before LACOMBE, COXE, and WARD, Circuit Judges.
The facts are all stated by Judge Learned Hand in his opinion and need not be repeated here. The situation is somewhat sui generis in the fact that the bankrupt, Garthe, who was a butcher and dealer in sausages, did a large business during the time in question and was most of the time in financial difficulties owing to the slipshod manner in which he transacted his business. He kept no complete books, was always borrowing and requesting Greenbaum to indorse his checks, so that he could get them cashed. He was continually complaining of poor collections but managed to keep his head above water until his final bankruptcy. He had had many dealings with the defendant Greenbaum who was his friend and at the time in question he owed Greenbaum $1,200 on a note dated May 6, 1909, for money borrowed some time previous. This note had been allowed to run for about 20 months. If this were a case in which the parties had conducted their business according to ordinary methods, we should find in all probability that a case of preference was made out, but it is not such a case. These parties had been dealing with each other for many years and always in about the same slovenly way. The bankrupt...
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