In re Janes

• Decision Date: 06 December 1904
• Docket Number: 52.
• Citation: 133 F. 912
• Parties: In re JANES et al.
• Court: U.S. Court of Appeals — Second Circuit

133 F. 912

In re JANES et al.

No. 52.

United States Court of Appeals, Second Circuit.

December 6, 1904

This cause comes here upon petition to review an order of the District Court, Western District of New York, affirming a ruling of the referee to the effect that the creditors of the bankrupt partnership shall share with the creditors of the individual partners in the estates of such individual partners.The relevant provisions of the bankrupt act are (section 5):

'(f) The net proceeds of the partnership property shall be appropriated to the payment of the partnership debts, and the net proceeds of the individual estate of each partner to the payment of his individual debts.Should any surplus remain of the property of any partner after paying his individual debts, such surplus shall be added to the partnership assets and be applied to the payment of the partnership debts.Should any surplus of the partnership property remain after the paying the partnership debts, such surplus shall be added to the assets of the individual partners in the proportion of their respective interests in the partnership.

'(g)The court may permit the proof of the claim of the partnership estate against the individual estates, and vice versa, and may marshal the assets of the partnership estate and individual estates so as to prevent preferences and secure the equitable distribution of the property of the several estates.

'(h) In the event of one or more but not all of the members of a partnership being adjudged bankrupt, the partnership property shall not be administered in bankruptcy, unless by consent of the partner or partners not adjudged bankrupt; but such partner or partners not adjudged bankrupt shall settle the partnership business as expeditiously as its nature will permit, and account for the interest of the partner or partners adjudged bankrupt.'

ActJuly 1, 1898, c. 541, 30 Stat. 548 (U.S. Comp. St. 1901, p 3424).

V. H Riordan, for petitioner.

Frank M. Loomis, for trustee.

Before WALLACE, LACOMBE, and TOWNSEND, Circuit Judges.

LACOMBE Circuit Judge(after stating the facts).

The bankrupts were adjudicated such on February 13, 1904, and a trustee appointed, who proceeded to sell all the assets of the copartnership and individual estates.The individual estate of H. S. Janes produced $15.50, the individual estate of Ezra S. Janes produced $6,155.06, and the firm assets sold for $10.Whether the last-named sum was ever...