In re Castle Beach Apartments
| Decision Date | 19 July 1940 |
| Docket Number | No. 360.,360. |
| Citation | 113 F.2d 762 |
| Parties | In re CASTLE BEACH APARTMENTS, Inc. |
| Court | U.S. Court of Appeals — Second Circuit |
Clark, Gagliardi & Cunningham, of White Plains, N. Y. (Frank M. Gagliardi and Charles T. Murphy, both of White Plains, N. Y., of counsel), for appellants.
Lawrence Wiseman, of New York City, for trustee-appellee.
N. William Welling and Lillian D. Rock, both of New York City, for debtor-appellee.
Before L. HAND, CHASE, and PATTERSON, Circuit Judges.
The debtor owns, as practically its only assets, an apartment house in Mamaroneck, N. Y., known as the Orienta Point Apartments. It purchased the property at a foreclosure sale which was the result of an attempt by a previous owner to reorganize the property in a proceeding under state law in the New York Supreme Court for Westchester County. The debtor, not a party to the proceedings in the state court, bought the property for $500,000 of which it paid $50,000 in cash and on August 1, 1935 gave the appellants a purchase money bond secured by a mortgage upon the apartment building for $450,000. As trustees they hold the bond and mortgage for the benefit of the holders of participating certificates therein.
The debtor having defaulted on the bond and mortgage, the trustees brought a foreclosure action in the state court on March 5, 1940. On the same day the debtor filed its petition for reorganization under Chap. X of the Bankruptcy Act, 11 U.S.C.A. § 501 et seq., in the District Court for the Eastern District of New York. It was duly approved as filed in good faith and the foreclosure action was stayed. The appellants then moved to vacate the order of approval and to have the petition dismissed. This appeal is from the denial of that motion.
Considerable reliance has been placed upon the fact that this property was the subject matter of a previous attempt at reorganization in state court proceedings but that must be put to one side as immaterial since the debtor was not a party and became the owner only as a later purchaser. There has been no state court proceeding for the reorganization of this debtor and, even had there been, that alone would not have been adequate ground for the dismissal of the petition. Brooklyn Trust Co. v. Rembaugh, 2 Cir., 110 F.2d 838.
Nor is it presently enough to secure a dismissal to show that the debtor is insolvent. In re Central Funding Corp., 2 Cir., 75 F.2d 256. That may, indeed, be of great importance ultimately on the...
To continue reading
Request your trial
-
In re Southern Land Title Corporation, 67-135.
...In Re Julius Roehrs Co., 115 F.2d 723 (3rd Cir. 1940); In Re Equity Co. of America, 115 F.2d 570 (7th Cir. 1940); In Re Castle Beach Apts., 113 F.2d 762 (2d Cir. 1940); In Re A. C. Hotel Co., 93 F.2d 841 (7th Cir. 1937); In Re Mortgage Securities Corp., 75 F.2d 261 (2d Cir. 1935); In Re Doy......
-
In re Marine Harbor Properties
...participate in the plan. Nor is the fact of insolvency sufficient to prove that the petition was filed in bad faith. In re Castle Beach Apartments, 2 Cir., 113 F.2d 762; In re Central Funding Corp., 2 Cir., 75 F.2d 256, 261; In re Julius Roehrs Co., 3 Cir., 115 F.2d 723, 724. And this is fu......
-
In re Agregados de Manati, Inc.
...opposition was only one of the factors to be considered in determining the "good faith" of petitioner. See Matter of Castle Beach Apartments, Inc. (C.A. 2d Cir. 1940), 113 F.2d 762; White v. Penelas Mining Co. (C.A. 9th Cir. 1939), 105 F.2d 726; Matter of 263 West 38th Street Corp. (S.D.N.Y......
-
Grubbs v. Pettit
...The petitioner need only demonstrate that there exists a reasonable possibility of successful reorganization. Matter of Castle Beach Apartments, Inc., 2 Cir., 1940, 113 F.2d 762; Matter of Julius Roehrs Co., 3 Cir., 1940, 115 F.2d 723; 6 Collier, Bankruptcy (14th Ed.), § 6.09, pp. 1779-1780......
-
The Objective and Jurisdictional Origins of Chapter 11's Good Faith Filing Requirement.
...faith) (citing 6 COLLIER ON BANKRUPTCY [section] 6.07 at 1019 (James Wm. Moore ed. 14th ed. 1978)); see In re Castle Beach Apartments, 113 F.2d 762, 763 (2d Cir. 1940) ("We cannot surely say that the attempt to reorganise [under Chapter X] is so hopeless that good faith is absent"); In re P......