In re Lenoir-Cross & Co.

• Decision Date: 20 July 1915
• Docket Number: 1604.
• Citation: 226 F. 227
• Parties: In re LENOIR-CROSS & CO.
• Court: U.S. District Court — Eastern District of Tennessee

226 F. 227

In re LENOIR-CROSS & CO.

No. 1604.

United States District Court, E.D. Tennessee, Northern Division.

July 20, 1915

Jno. A Duncan, of Lenoir City, Tenn., and S. P. Dannel, of Loudon Tenn., for bankrupts.

SANFORD District Judge.

The petition in bankruptcy was filed by Hugh Cross and Rufus Lenoir, alleging that they and one Will Lenoir had been partners under the firm name of Lenoir-Cross & Co. The petition follows official form No. 2 for a partnership petition, and prays merely, in accordance with said form that the said firm may be adjudged bankrupt. Notice of the filing of said petition was given to Will Lenoir, in accordance with the 8th General Order in Bankruptcy, and he has appeared and filed an answer in which he admits the allegations of the petition, but insists that he has paid to all creditors one-third of the firm debts and has been released by them from liability, and that he should not be declared a bankrupt or required to participate in the bankruptcy proceedings.

In this state of the record it is entirely clear that the petitioners are entitled to an adjudication of the firm as a bankrupt.

I am of opinion, however, that there is no prayer in the petition for an adjudication of the petitioners individually, and that the adjudication should hence be limited to that of the firm. The prevailing opinion appears to be that official form No. 2 is not to be literally followed where an adjudication is desired of the petitioning partners as individuals as well as the firm, but that in such case there should at least be inserted in the prayer of the petition a request for an adjudication of the petitioning partners as well as of the firm. Coll Bank'cy (10th Ed.) 157; Hagar & Alex. Bank'cy Forms, p. 23. And see Re Wing Wick (D.C.) 13 Am.Bank.Rep. 757.

As there is no allegation of any act of bankruptcy committed by Will Lenoir individually, there is obviously no ground for adjudicating him a bankrupt. However, it appears generally that upon an adjudication of bankruptcy against a firm the non-joining partner may be required to file a schedule of his debts and an inventory of his property, in accordance with the concluding clause of the 8th General Order in Bankruptcy. And see, generally, as to the administration of the assets of a non-joining partner: Francis v. McNeal, 228 U.S 695, 33 Sup.Ct. 701, 57 L.Ed. 1029; Vaccaro v. Security Bank (6th Circ.) 103 F. 436, 43 C.C.A. 279; Dickas...