In re Burton Bros. Mfg. Co.

• Decision Date: 16 January 1905
• Docket Number: 472.
• Citation: 134 F. 157
• Parties: In re BURTON BROS. MFG. CO.
• Court: U.S. District Court — Northern District of Iowa

134 F. 157

In re BURTON BROS. MFG. CO.

No. 472.

United States District Court, N.D. Iowa, Cedar Rapids Division.

January 16, 1905

Crosby & Fordyce, for petitioners.

On petition of Stanley Zbanek and Frank Robins for review of orders of referee denying to each of them priority of payment of their respective claims from the bankrupt estate.

The Burton Bros. Manufacturing Company was adjudged bankrupt by this court upon a petition filed August 20, 1904. Each of the petitioners filed a claim against that estate upon a judgment not exceeding $100 in his favor against the bankrupt dated June 18, 1904, when it was insolvent. The proof of each claim shows that the judgment was upon a debt due the petitioners respectively, from the bankrupt, for labor performed within 90 days next preceding the date of the judgment; that an execution was issued on each judgment June 18, 1904, and placed in the hands of an officer, who on the same day levied the executions separately upon certain property of the bankrupt; that $20 of the claim of Zbanek was earned within three months next preceding the filing of the petition in bankruptcy; that the remainder of such claim, and all of the Robins claim, was earned more than three months before the filing of such petition. The referee allowed the petitioner Zbanek priority of payment as to $20 of his claim, and refused to so allow the remainder thereof, or any of the Robins claim. Each of the petitioners ask that the orders of the referee be reversed, and that he be allowed priority of payment of his entire claim.

REED District Judge.

The petitioners base their right to priority of payment of their respective claims from the bankrupt estate upon sections 4019, 4020, 4021, and 4022 of the Code of Iowa of 1897, which are as follows 'Sec. 4019. When the property of any company corporation, firm or person shall be seized upon by any process of any court, or placed in the hands of a receiver trustee or assignee for the purpose of paying or securing the payment of the debts of such company, corporation, firm or person, the debts owing to employes for labor performed within the ninety days next preceding the seizure or transfer of such property, to an amount not exceeding one hundred dollars to each person, shall be a preferred debt and paid in full. * * *

'Sec. 4020. Any employe desiring to enforce his claim for wages at any time after seizure of the property under execution or writ of attachment and before sale thereof is ordered, shall present to the officer levying on such property or to such receiver, trustee or assignee, or to the court having custody of such property, or from which such process issued, a statement under oath, showing the amount due after allowing all just credits and set-offs, and the kind of work for which such wages are due, and when performed. * * *

'Sec. 4021. (Provides for a contest of the labor claims.)

'Sec. 4022. Claims of employes for labor, if not contested, or if allowed after contest, shall have priority over all claims against or liens upon such property, except prior mechanics' liens for labor in opening or developing coal mines as allowed by law.'

These sections give the right and prescribe the terms upon which a wage-earning employe may have priority of payment of a debt owing to him by his employer for labor to the amount of $100 from the property of such employer. The right so given is statutory, and while the statute should be liberally construed so as to effect...