In re Marley-Morse Co.
| Decision Date | 26 April 1921 |
| Docket Number | 2871. |
| Citation | 275 F. 832 |
| Parties | In re MARLEY-MORSE CO. v. KANTER et al. WILSON |
| Court | U.S. Court of Appeals — Seventh Circuit |
Lloyd C. Whitman, of Chicago, Ill., for appellant.
Henry S. Blum, of Chicago, Ill., for appellees.
Before BAKER, ALSCHULER, and EVANS, Circuit Judges.
The controversy is over the allowance to appellees of a general claim against the bankrupt estate for $1,408.18; the asserted impropriety of its allowance being predicated on the contention of unlawful preferential payments to appellees. Upon this issue the referee, after hearing the evidence found that sufficient proof did not appear to warrant the conclusion that bankrupt was insolvent at the time of the payments. But apart from this issue the record discloses facts which unquestionably justified the allowance of appellees' claim.
Bankrupt was in the mail order grocery business. In 1917 it extensively advertised to sell sugar at considerably lower than current prices, as part of a combination order comprising also other goods. Many orders were received, but in November, 1917, the federal authorities controlling the distribution of sugar ordered discontinuance of such advertising and sales. The business immediately dropped off although for a time orders with cash were received, which bankrupt could not then fill. In February its 10 largest creditors, with aggregate claims of about $14,000, of which appellee held $764, entered into agreement with bankrupt for a three months' extension of their claims, and the appointment of a creditors' committee of three, of which a member of appellees' firm was one, who were to exercise a general supervision over the business, and to whom reports were to be made, and it was agreed that, for any goods sold to the bankrupt by any one of these creditors during the term of the agreement, there should be a preferred claim against the assets for the amount thereof.
Appellees were in the wholesale grocery business, and had all along been selling goods to appellant; the sales being frequent and the most usual terms being 30 days. Upon the agreement being made, it continued to sell as theretofore, the sales being almost daily, and sometimes several items in a day, and upon such sales payments were made with more or less regularity sometimes in cash and sometimes through a return of goods. This course of dealing continued into the middle or latter part of March.
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In re Fulghum Const. Corp.
...Bank v. Julian, 383 F.2d 314 (8th Cir.), cert. denied, 389 U.S. 1021, 88 S.Ct. 593, 19 L.Ed.2d 662 (1967); Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921); In re Stewart, 233 F.Supp. 89 (D.Or. 1964). The thrust of these decisions is not only that the enrichment of the ......
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In re Fulghum Const. Co.
...under section 60a. 266 F. at 909-10 (citations omitted). Ignorance of insolvency was not required in Wilson v. Kanter (In re Marley-Morse Co.), 275 F. 832 (7th Cir. 1921). In Marley-Morse the debtor was in the mail-order grocery business. After the debtor had failed to fill orders for sever......
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