In re Huguenot Pub. Co.

• Decision Date: 13 April 1936
• Docket Number: No. 342.,342.
• Citation: 83 F.2d 258
• Parties: In re HUGUENOT PUB. CO., Inc. TAYLOR v. FOLSOM.
• Court: U.S. Court of Appeals — Second Circuit

83 F.2d 258 (1936)

In re HUGUENOT PUB. CO., Inc.

TAYLOR v. FOLSOM.

No. 342.

Circuit Court of Appeals, Second Circuit.

April 13, 1936.

Alexander & Schwach, of New York City (Jacob J. Alexander, of New York City, of counsel), for respondent-appellant.

Samuel J. Siegel, of New York City, for petitioner-appellee.

Before L. HAND, SWAN, and AUGUSTUS N. HAND, Circuit Judges.

AUGUSTUS N. HAND, Circuit Judge.

Folsom, a purchaser at a sale of the bankrupt estate of Huguenot Publishing Company, Inc., appeals from an order of the District Court directing him to pay $10,231.06 to the trustee in order to make good the loss to the estate because he had failed to take title and the property had been sold subsequently at a lower price.

Some time after the adjudication in bankruptcy, the referee ordered a sale at auction of chattels of the estate and appointed an auctioneer. The assets had been appraised at $3,544.10. On March 19, 1935, a public sale at auction was had pursuant to the above authorization, and Folsom bid in the assets for the sum of $15,000, made a deposit with the auctioneer of the sum of $500, and signed a contract with the trustee agreeing to pay the balance of $14,500 on or before April 5, 1935. He failed to make the payment, and on April 15, 1935, was notified in writing by the attorney for the trustee that the latter would hold him liable for all damage sustained by reason of his failure to comply with the terms of the contract of purchase. After the default of the purchaser, the sale was readvertised as upon the original order of sale and a ten days' notice sent to the creditors. Notice was given at the auction that it was being held to resell the assets for the account of Folsom and that he would be held for any deficiency which might result, but no order confirming the first sale or ordering a second was obtained. On the resale the assets brought a net amount of $4,268.94, and the trustee, though having obtained no order confirming the original sale or directing a new sale for the account of the original purchase, sought to treat the notice of his attorney as the equivalent of such an order and thereafter obtained the order now appealed from which adjudged Folsom liable for the difference, and ordered him to pay it.

When a purchaser at a judicial sale has defaulted, the vendor may either obtain an order confirming the sale and directing the purchaser to complete, or, if he prefers, may obtain an order directing a resale at the...