In re Kootenai Motor Co.

• Decision Date: 31 May 1930
• Docket Number: No. 4082.,4082.
• Citation: 43 F.2d 462
• Parties: In re KOOTENAI MOTOR CO., Inc.
• Court: U.S. District Court — District of Idaho

43 F.2d 462 (1930)

In re KOOTENAI MOTOR CO., Inc.

No. 4082.

District Court, D. Idaho, N. D.

May 31, 1930.

W. D. Gillis, Atty. Gen., of Idaho, and Leon M. Fisk, Asst. Atty. Gen., for petitioners.

E. V. Boughton, of Coeur d'Alene, Idaho, and Lund & Dodds, of Spokane, Wash., for objecting parties.

CAVANAH, District Judge.

The Spokane Merchants' Association, W. E. Chase, doing business as the Chase Engineering Company, Holly-Mason Hardware Company, Colyear Motor Sales Company, and the United States Rubber Company, objected to the application for discharge of the bankrupt, and after a hearing thereon the objections were overruled, and an order of adjudication made. At the time the petition of involuntary bankruptcy was filed, petitioning creditors applied for an order, which was granted, requiring the marshal to take possession of certain property, claimed to be the property of the bankrupt. During the pendency of the proceedings, certain expenses and costs were incurred as marshal's fees, storage, special master, witness, and stenographic fees, in the total sum of $430.13. Thereafter, on April 19, 1930, petitioning creditors, under the rules, made application to the clerk for the taxation of costs, and on April 28, 1930, objection to the allowance of costs was filed by objecting creditors. On May 3, 1930, the clerk taxed $430.13 as costs of petitioning creditors. An appeal was taken from the order of the clerk, which is here for review.

The power to award costs against creditors who file objections in opposition to a bankrupt's discharge is inherent in a District Court of the United States as a court of equity, and may be exercised in proper cases. Bragassa v. St. Louis Cycle et al. (C. C. A.) 107 F. 77; In re Guilbert (D. C.) 154 F. 676. Section 2, clause 18, of the Bankruptcy Act (11 USCA § 11(18), provides that the court may "Tax costs, whenever they are allowed by law, and render judgments therefor against the unsuccessful party, or the successful party for cause, or in part against each of the parties, and against estates, in proceedings in bankruptcy." Generally costs usually abide the event, and are given against the unsuccessful party, and in matters of discharge, the statute authorizes the court to tax costs against the unsuccessful party, or the successful party, or in part against each of the parties, and against estates in bankruptcy proceedings. Under the statute courts have often, where discharges were granted, taxed costs against...