City of Springfield v. Hotel Charles Co.
| Decision Date | 25 June 1936 |
| Docket Number | 3113.,No. 3094,3094 |
| Parties | CITY OF SPRINGFIELD v. HOTEL CHARLES CO. HOTEL CHARLES CO. v. CITY OF SPRINGFIELD. |
| Court | U.S. Court of Appeals — First Circuit |
Raymond D. Houlihan, of Springfield, Mass. (Edward A. McClintock, David B. Hoar, Ignatius M. Hoar, and McClintock, Hoar & Houlihan, all of Springfield, Mass., on the brief), for Hotel Charles Co.
Donald M. Macauley, City Sol., of Springfield, Mass. (Francis I. Gallagher, of Springfield, Mass., on the brief), for City of Springfield.
Before BINGHAM, WILSON, and MORTON, Circuit Judges.
These are cross-appeals in a reorganization proceeding under section 77B of the Bankruptcy Act (11 U.S.C.A. § 207). The principal appeal is that taken by the petitioner, the Hotel Charles Company, from decrees of the District Court refusing to revise taxes assessed by the city of Springfield on the petitioner's real estate, and refusing to hold that a tax deed of the property to the city under which a lien is claimed is invalid. The city, probably as a matter of precaution, has attempted to appeal from rulings of law adverse to certain contentions made by it, although the ultimate decision was in its favor. The case was heard on the pleadings, a stipulation of facts, and an offer of proof by the petitioner, all of which are before us.
The petitioner owns a large hotel building in Springfield, Mass. Its petition for reorganization was duly filed and approved on June 1, 1935, and the usual order of notice to creditors and stockholders was issued and served. The city of Springfield presented a proof of claim for taxes on the petitioner's real estate in that city for the years 1931-1934, inclusive, amounting with interest and costs to $103,676.15. For the unpaid tax of 1931, the property had been sold at tax sale and bought in by the city for the amount of the tax. The assessed values of the property on which the taxes were levied were, for 1931 $742,800, and for each of the other years $721,100. The petitioner contended that these valuations were excessive and not made in accordance with the statutes of Massachusetts which provide that taxes shall be assessed on "fair cash valuation" of property, and that the assessors arbitrarily and unreasonably disregarded the fundamental principle of uniformity in imposing them.
The district judge held that, as there had been no order of liquidation, he had no power under section 64a of the Bankruptcy Act, as amended by Act May 27, 1926, 11 U.S.C.A. § 104 (a), to revise the tax; and that on the petitioner's allegations and offer of proof no case was stated showing arbitrary and unreasonable disregard of the petitioner's rights in violation of the Fourteenth Amendment. He therefore declined to hear or order heard evidence on that question. He also ruled that the assessments and the tax deed were not invalid for misdescription of the property or on other technical grounds. On this last point, accepting as we must, because it is not shown to be clearly wrong, the finding that the descriptions of the property although containing slight errors were sufficient to identify it, it cannot be said that "any errors or irregularities in the proceedings of the collector" were either "substantial or misleading," which is required by the statute in order to warrant setting aside a tax title. Mass.Gen.Laws (Ter.Ed.) c. 60, § 37. The petitioner's technical objections are without merit. City of Fall River v. Conanicut Mills (Mass.) 1 N.E.(2d) 36.
On the question whether the District Court had power under section 64a to revise the taxes, it is settled that the power of state officials to determine and levy taxes must yield to the constitutional power of the federal government to establish what it regards as just rules for liquidation in bankruptcy. New Jersey...
To continue reading
Request your trial
-
In re Nashville White Trucks, Inc.
...(1933); Van Huffel v. Harkelrode, 284 U.S. 225, 228-229, 52 S.Ct. 115, 116, 117, 76 L.Ed. 256 (1931). See also Springfield v. Hotel Charles Co., 84 F.2d 589, 591 (1st Cir. 1936). As the Supreme Court explained in New York v. Irving Trust Co., 288 U.S. at 333, 53 S.Ct. at "If a state desires......
-
In re Lasky
...assessments, a multitude of other cases make it plain that plenary power is present, at least in liquidation cases (Cf. Springfield v. Hotel Charles, 1 Cir., 84 F.2d 589 31 A.B. R.,N.S., 604), even though the facts may not invariably warrant its exercise. Board of Directors of St. Francis L......
-
In re Aero Services, 44420.
...36 F.2d 218; Henderson County v. Wilkins, 4 Cir., 43 F.2d 670; In re Clayton Magazines, 2 Cir., 77 F.2d 852; City of Springfield v. Hotel Charles Co., 1 Cir., 84 F.2d 589; Dickinson v. Riley, 8 Cir., 86 F.2d 385; Board of Directors St. Francis Levee Dist. v. Kurn, 8 Cir., 91 F.2d 118; In re......
-
Town of Agawam v. Connors
...refused to yield its prior and hence exclusive jurisdiction. See also subsequent proceedings at D.C.Mass., 1935, 12 F.Supp 734 and 1 Cir., 1936, 84 F.2d 589. This case would then be authority if bankruptcy preceded the commencement of proceedings to foreclose in the Land Court; and hence th......