In re Claudon

Citation73 F.2d 876
Decision Date30 November 1934
Docket NumberNo. 5202.,5202.
PartiesIn re CLAUDON. CLAUDON v. ILLINOIS STATE SAV. BANK et al.
CourtUnited States Courts of Appeals. United States Court of Appeals (7th Circuit)

Ira J. Covey, Edwin L. Covey, and J. J. Alloy, all of Peoria, Ill., for appellant.

Frank T. Miller and Eugene R. Johnson, both of Peoria, Ill., and Jesse J. Herr, Stephen B. Adsit, Cyril A. Burns, and Harry G. Greenebaum, all of Pontiac, Ill., for appellees.

Before ALSCHULER, FITZHENRY, and ANDERSON, Circuit Judges.

ANDERSON, Circuit Judge.

The original petition to have A. B. Claudon on adjudged a bankrupt was filed December 22, 1927. On that date he was a fugitive from justice and continued as such fugitive until October 28, 1931, when he was apprehended and brought back within the jurisdiction of the bankruptcy court by the sheriff of his county to answer an indictment then pending against him. He was a fugitive from justice nearly four years.

While he was such fugitive, and at a time when the law-enforcing officers knew nothing of his whereabouts, and when his son, the appellant, and other members of his family knew where he was, on January 7, 1931, there was filed by certain attorneys appearing for him a motion to dismiss the original petition. On August 8, 1932, the alleged bankrupt died. The appellant was appointed administrator of his estate, and on October 20, 1933, suggested the death of his father and renewed the motion made for him on January 7, 1931. While this motion was pending, on January 9, 1934, the petitioning creditors asked leave to amend the original petition. The petition to amend contained twelve paragraphs. On January 23, 1934, appellant moved to strike out paragraphs 4 to 12, inclusive, of the petition to amend, and in his motion said: "Said Administrator concedes that the matters and things set forth in said petition, exclusive of the paragraphs sought to be stricken, contain a sufficient showing, under General Order in Bankruptcy No. 11, to permit said petitioning creditors to amend said original involuntary petition, provided the Court has the right to permit the petitioning creditors to amend the same, and allow such amendment to relate back to the date of the filing of the original petition in bankruptcy." The matters set forth in paragraphs 4 to 12, inclusive, were, in part, the matters we have set forth above, and were, as the District Court said, in the main a recital of the proceedings in the cause as shown by the files. They were not only proper to be considered by the court in exercising its discretion in considering the petition to amend; they warranted the allowance of the amendment.

The original petition sought to charge but one act of bankruptcy, and the charging part is as follows: "And Your Petitioners further represent that said A. B. Claudon is insolvent, and that within four months next preceding the date of this petition the said A. B. Claudon committed an act of bankruptcy, in that he did heretofore, to wit, on the 9th day of September, A. D. 1927 permit attachments to be entered in the Circuit Court of Livingston County and levied upon property of the said A. B. Claudon."

The petitioning creditors asked to amend this so as to read as follows: "And your petitioners further represent that the said A. B. Claudon is insolvent and that while insolvent, within four months next preceding the date of this petition, the said A. B. Claudon committed an act of bankruptcy, in that he did, heretofore, to-wit: on the 9th day of September, A. D. 1927 permit attachments to be entered in the Circuit Court of Livingston County, Illinois, and levied upon the property of the said A. B. Claudon; that the said A. B. Claudon, while insolvent, suffered or permitted certain creditors, (naming creditors with the amounts of their respective claims) to obtain through legal proceedings commenced on said date, in the Circuit Court of Livingston County, Illinois, attachment writs, which were duly and regularly issued out of said Court and duly and regularly delivered to J. A. Scarratt, Sheriff of said County, who, on September 13th, 1927, by virtue of said attachment writs, levied on the real estate of the said A. B. Claudon to-wit: (description of real estate); and that the said A. B. Claudon did not vacate or discharge the same, and the lien created thereby, to be vacated or discharged within thirty days from the date of said levies."

The power of the court to permit this amendment to be made and to order that it relate back to the date of the filing of the original petition is questioned in this appeal.

Under Equity Rule 19 (28 USCA § 723), General Order in Bankruptcy 11 (11 USCA § 53), numerous decisions of the Supreme and appellate courts, and the Bankruptcy...

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10 cases
  • In re Alta Title Co.
    • United States
    • U.S. Bankruptcy Court — District of Utah
    • 4 Noviembre 1985
    ... ... 55 BR 137          The court's jurisdiction over an involuntary case is statutory and not dependent upon the accuracy and precision of the averments made in the petition. See In re Claudon, 73 F.2d 876, 878 (7th Cir.1934); 2 COLLIER ON BANKRUPTCY ¶ 18.05, at 22 (14th ed. 1976). The filing of a petition sufficient on its face clearly gives the bankruptcy court jurisdiction over an involuntary case. Canute Steamship Co. v. Pittsburgh Coal Co., 263 U.S. 244, 248, 44 S.Ct. 67, 68, 68 ... ...
  • In re German, 15346
    • United States
    • U.S. District Court — Southern District of Illinois
    • 8 Mayo 1961
    ... ... following section 53, provides in part that "the court may allow amendments to the petition and schedules on application of the petitioner." That Order vests the court with a sound discretion to permit amendment of petitions in bankruptcy to correct omissions therefrom. In re Claudon, 7 Cir., 73 F.2d 876; In re Haskell, 7 Cir., 73 F.2d 879. Amendments to petitions in bankruptcy should be liberally allowed when required in the interest of justice. In re Haskell, supra; In re Seeley Tube & Box Co., 3 Cir., 219 F.2d 389. In the latter case, an implied amendment to a bankruptcy ... ...
  • In re Rogers, 36027.
    • United States
    • U.S. District Court — Eastern District of New York
    • 26 Mayo 1942
    ... ... 9; In re Haskell, 7 Cir., 73 F.2d 879; Kroell v. New York Ambassador, Inc., 2 Cir., 108 F.2d 294; In re Claudon, D.C., 6 F.Supp. 249, affirmed, 7 Cir., 73 F.2d 876; In re Yaeger, D.C., 21 F.Supp. 324; In re Taub, 2 Cir., 98 F.2d 81; In re Keil, D.C., 16 F. Supp. 862, 863 ...         The right to claim an exemption, as to an insurance policy, under the Bankruptcy Act, 11 U.S.C.A. § 1 et seq., was ... ...
  • Kroell v. New York Ambassador
    • United States
    • U.S. Court of Appeals — Second Circuit
    • 18 Diciembre 1939
    ... ... following section 53, or Equity Rule 19, 28 U. S.C.A. following section 723, or again from equity generally — to permit amendments of involuntary proceedings, even to the supplying of jurisdictional averments. In re Haskell, 7 Cir., 73 F.2d 879; In re Claudon, 7 Cir., 73 F.2d 876 (amendment allowed in 1934 of involuntary petition filed in 1927); Fierman v. Frankfort Broom Co., 3 Cir., 69 F.2d 827; In re Yellow Motor Co., 8 Cir., 34 F.2d 118, certiorari denied 280 U.S. 590, 50 S.Ct. 38, 74 L.Ed. 639; In re Plymouth Cordage Co., 8 Cir., 135 F. 1000; ... ...
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