In re Friedman
| Decision Date | 20 April 1956 |
| Docket Number | Docket 23911.,No. 294,294 |
| Citation | 232 F.2d 151 |
| Parties | Matter of William FRIEDMAN doing business under the name and style of Faultless Press, Bankrupt. BRANDT & BRANDT PRINTERS, Inc., Appellant, v. David Charles KLEIN, Trustee of the above Bankrupt, Appellee. |
| Court | U.S. Court of Appeals — Second Circuit |
Gronich, Herbsman & Aleyner, New York City (Sydney Basil Levy, Robert I. Ruback, New York City, of counsel), for appellant.
Bergerman & Hourwich, New York City (Joseph Calderon, New York City, of counsel), for appellee.
Before FRANK, MEDINA and WATERMAN, Circuit Judges.
Sufficient explanatory background facts appear in our opinion in Brandt & Brandt Printers, Inc., v. Klein, 2 Cir., 1955, 220 F.2d 935, 938, where we held that appellant Brandt was in partnership with the bankrupt and that assets of the partnership held by the trustee in bankruptcy "must be turned over to appellant which must then settle the partnership business expeditiously and, after paying partnership liabilities, account to appellee for any amount due to Friedman's the bankrupt's estate under Section 71 of the New York Partnership Law." We then remanded the cause for disposition below consistent with this opinion.
After remand the appellant moved the referee for an order directing the trustee to so turn over the partnership assets to it. The trustee answered alleging that receiver, trustee, and their counsel had rendered services which had been of benefit to the estate and its creditors, and the partnership assets should be subjected to charges for those services. The trustee also presented an order to the referee to fix compensation for these alleged services. The referee granted appellant's motion and issued his order thereon. He denied the trustee's petition because he held the proposed order to be in direct contravention of our above finding. The trustee filed a petition to review both of these acts of the referee.
The District Judge reversed the referee and remanded the cause to him to fix the expenses and compensation of the receiver, the trustee, and their attorneys, and pay the same out of the funds in the trustee's hands before turning over to appellants the partnership assets pursuant to our former mandate.
We reverse the District Judge.
The assets of Brandt & Brandt Printers, Inc. and William Friedman, the co-partnership, are not part of the bankrupt estate of Friedman and cannot be administered in the present bankruptcy proceedings, Brandt & Brandt Printers, Inc., v. Klein, supra. Likewise, they cannot be charged with compensation of the receiver, the trustee, or their attorneys.
As we stated in Guerin v. Weil, Gotshal & Manges, 2 Cir., 1952, 205 F.2d 302, 304:
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In re Electric Machinery Enterprises, Inc.
...can be had unless a tangible benefit has been conferred on the estate to the advantage of the creditors as a whole."); In re Friedman, 232 F.2d 151 (2d Cir.1956); In re Solar Mfg. Corp., 206 F.2d 780, 781 (3d Cir.1953) (the work of attorneys for creditors "must be at the expense of their cl......
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Matter of DeLancey
...in bankruptcy and their counsel are allowable only as authorized by the Bankruptcy Code. Brandt & Brandt Printers, Inc. v. Klein (In re Friedman d/b/a Faultless Press), 232 F.2d 151 (2nd Cir. 1956); Guerin v. Weil, Gotshal & Manges, 205 F.2d 302 (2nd Cir.1952); Lane v. Haytian Corp., 117 F.......
- Klein v. Kindt, 90-2051
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Saper v. John Viviane & Son, Inc.
... ... Our decisions quite properly reflect a strong reluctance to allow the assessment of any fees and costs in bankruptcy proceedings which are not expressly authorized by the Act, or that are not well established by judicial precedent. See, e. g., In re Friedman, 2 Cir., 1956, 232 F.2d 151, certiorari denied Klein v. Brandt & Brandt Printers, Inc., 1956, 352 U.S. 835, 77 S.Ct. 53, 1 L.Ed. 2d 54; Guerin v. Weil, Gotshal & Manges, 2 Cir., 1953, 205 F.2d 302. The policy of the Bankruptcy Act is best served by a conscious effort to reduce expenses of ... ...