In re Community Stores of Iowa, Inc.

• Decision Date: 31 July 1922
• Docket Number: 1238.
• Parties: In re COMMUNITY STORES OF IOWA, Inc. Petition of JANSSEN, Sheriff.
• Court: U.S. District Court — Northern District of Iowa

282 F. 328

In re COMMUNITY STORES OF IOWA, Inc. Petition of JANSSEN, Sheriff.

No. 1238.

United States District Court, N.D. Iowa, Central Division.

July 31, 1922

Buck &amp Kirkpatrick, of Spencer, Iowa, for petitioning creditors.

Salinger Reynolds, Meyers & Cooney, of Carroll, Iowa, for Janssen.

SCOTT District Judge.

The above-entitled matter comes before the court upon the petition for review of Henry V. Janssen, sheriff of Carroll county, Iowa, of an order made and entered on the 20th day of December, 1921, by John M. Schaupp, Jr., referee in bankruptcy, by the terms of which the referee on summary proceedings ordered said sheriff to turn over to the trustee of said Community Stores of Iowa, $1,742.85 held by said sheriff as receipts from the sale of property sold on execution under a judgment rendered in the District Court of Iowa, in and for Carroll county in an action by Kerwin &amp Schiltz against the bankrupt. The action was commenced on the 18th day of December, 1920, and a writ of attachment issued in aid thereof and levy made on the same date upon a stock of merchandise. The defendant was defaulted on January 13, 1921, and on January 19th formal judgment entered against the defendant and directing sale of the attached property. On January 18th, the day before final judgment was entered, an involuntary petition in bankruptcy was filed against the Community Stores of Iowa, and on February 7th adjudication in bankruptcy was entered.

A show cause order was issued and served upon the sheriff requiring him to appear and show cause why he should not turn over to the trustee the proceeds of the sale then in his hands. The sheriff appeared and filed a plea questioning the jurisdiction of the referee and alleging the solvency of the bankrupt at the time of the levy of the writ of attachment, and claiming the right to a trial in a plenary suit. No further cause was shown by the sheriff as respondent to the show cause order, and a hearing was had upon the issue thus joined. No evidence was offered tending to show solvency of the bankrupt at the time of the levy of the writ of attachment, and the order petitioned from was entered. The sheriff within the proper time petitioned for a review of said order, and upon such petition the matter was on the 20th day of June, 1922, submitted.

Now on this 31st day of July, 1922, said matter having been taken under advisement, comes on for final determination. It...