In re Coddington

Citation118 F. 281
Decision Date31 October 1902
Docket Number185.
PartiesIn re CODDINGTON.
CourtUnited States District Courts. 3th Circuit. United States District Court of Middle District of Pennsylvania

L. P Wedeman, for bankrupt.

George Little, for certain creditors.

ARCHBALD District Judge.

It is objected that the only evidence on the subject of the respondent's insolvency was that which was obtained by calling and cross-examining him, which, it is claimed, the creditors had no right to do. But by section 3d of the bankrupt act it is specially provided that, where a preferential transfer or property while insolvent is charged as the act of bankruptcy relied upon, the person against whom the petition has been filed is required to appear at the hearing with his books, papers, and accounts, and submit to an examination, as well as give testimony as to all matters tending to establish his insolvency, and upon his failure to do so the burden of proving his solvency is thrown upon him. This is a sufficient answer to the objection.

To maintain his solvency, the respondent relies upon certain book accounts, aggregating about $1,800, which, outside of the debt to Boyle, his brother-in-law, to whom he turned over his stock of merchandise, is the amount of his indebtedness. These accounts, he claims, would enable him in time to pay dollar for dollar of all that he owes, but this expectation is hardly warranted by what he has further to say with regard to them. About b one-third-- $600--is what is coming to him from accounts due the firm of Boyle & Coddington, which has been out of business for at least two years, during which time nothing substantial has apparently been collected upon them, which is very fair proof that they are not at present collectible. Of the accounts on his own books, which have been gathering since he has been in business by himself, some are against parties who admittedly have no property, and are simply expected to pay because they are honest. Expectations and reliances such as these are too uncertain to stand as property of value when balancing up the assets and liabilities of an alleged bankrupt. It may be that something could be realized out of them in time by patient and persistent effort, but that does not satisfy the law. It is their value now that is to be taken, and that can be but little, under the circumstances. If they had any real worth it may be well asked why the bankrupt did not turn them over to his brother-in-law and go on with his store instead of transferring...

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9 cases
  • Nicolai-Neppach Co. v. Smith
    • United States
    • Supreme Court of Oregon
    • 23 June 1936
    ...... jury confounded the figures and took the larger figures,. which were not shown by competent evidence to be the fair. market value of the property on the date in question. . . In. Re Coddington (D.C.) 118 F. 281, cited by plaintiff, it. was held that in determining the question of insolvency of an. alleged bankrupt his credits must be estimated at the actual. and not the nominal value where the collectibility is. doubtful. So, in the present case, we think that ......
  • In re Pinto
    • United States
    • United States Bankruptcy Courts. Third Circuit. U.S. Bankruptcy Court — Eastern District of Pennsylvania
    • 30 March 1989
    ...depends in large part upon the collectability of these accounts. 2 COLLIER, supra, ¶ 101.314, at 101-88 to 101-89; and In re Coddington, 118 F. 281 (M.D.Pa.1902). In light of the testimony of Pinto, Jr., and, more reliably, Levin, we have concluded that the accounts receivables of ECP were ......
  • Irving Trust Co. v. Manufacturers Trust Co.
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • 18 January 1934
    ...to the bankrupt himself with which to meet his liabilities within a reasonable time." The term is further clarified in the Coddington Case (D. C.) 118 F. 281, 282, where the court says of the value of book accounts that it is not what "could be realized out of them in time by patient and pe......
  • Plymouth Cordage Co. v. Smith
    • United States
    • Supreme Court of Oklahoma
    • 13 February 1907
    ......Landis, 5 Am. Bankr. Rep. 649, 106 F. 839, 858, 45 C. C. A. 666, 'that. the present market value of the property in question would be. a fair valuation of the same.' See, also, In re. Bloch, 6 Am. Bankr. Rep. 300, 109 F. 790, 48 C. C. A. 650, and In re Coddington (D. C.) 9 Am. Bankr. Rep. 243, 118 F. 281. The intendment of the statute could scarcely. be otherwise, giving the language employed its usual and. natural significance. The difficulty is, and perhaps always. will be, in arriving at the market value. Unless the. commodity has a value quotable ......
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