In re Norcor Mfg. Co., 16633.
| Decision Date | 30 January 1941 |
| Docket Number | No. 16633.,16633. |
| Citation | 36 F. Supp. 978 |
| Parties | In re NORCOR MFG. CO. |
| Court | U.S. District Court — Eastern District of Wisconsin |
Seymour Cohen, of Chicago, Ill., for J. J. Schmitt, creditor.
W. B. Surplice, of Green Bay, Wis., for debtor trustee.
J. E. McCarthy, of Marinette, Wis., for Norcor Holding Co.
Proceedings were commenced against debtor in this court under Section 77B of the Bankruptcy Act, 11 U.S.C.A. § 207, by a creditors' petition filed on October 22, 1935. On December 26, 1936, this court referred to W. L. Evans, as special master, the question of solvency or insolvency of the debtor corporation, and also for a determination of various claims and interests of creditors, bondholders, and stockholders. On February 9, 1937, the special master filed his report, finding that the debtor corporation was insolvent on October 22, 1935, the date of the filing of the creditors' petition, and this report was approved by the court. One of the claims considered by the special master was that of Joseph J. Schmitt. This claim was based upon a written contract entered into by the debtor corporation under date of June 3, 1929, under which certain royalties were to be paid to Schmitt upon chairs to be manufactured by the debtor.
Prior to the proceedings in this court, there was a receivership in the State court. The special master made an allowance of $36,651.98 for Schmitt's claim antedating the State receivership, and for $22,268.56 for his claim which accrued during the receivership. Although not directed to do so, the special master computed interest upon each of said claims up to February 10, 1937. The reason for this date being chosen is unknown. The special master did not file his report in this court until July 9, 1938. Thereafter this court, by order dated January 17, 1939, sustained in part and reversed in part the special master's report as to the Schmitt claim. Upon appeal to the U. S. Circuit Court of Appeals, the master's allowance of the claim was sustained. In re Norcor Mfg. Co., 7 Cir., 109 F.2d 407. Nothing was said in this opinion about the computation of interest which had been made by the special master, and it is apparent that no consideration was given thereto.
This court has ordered and there has been made an appraisal by the American Appraisal Company, and an audit by Ernst and Ernst. It appears from the reports of said concerns, on file herein, that the debtor is no longer insolvent. A plan of reorganization has been proposed which contemplates the payment of the Schmitt claim in full, together with interest. However, Schmitt now claims that when the master's report as to his claim was finally confirmed, it became a judgment, and that he is entitled to interest upon interest. The total face value of his claim was allowed at $58,920.54; interest computed thereon up to February 10, 1937, amounts to $11,411.04. The total of said principal and interest thus computed amounts to $70,331.58. Schmitt now asks that he be allowed interest upon that sum from February 10, 1937, to the date of payment, and claims he is justified in asking for compound interest.
The debtor and trustee, however, contend that Schmitt should be allowed the principal of his claim, plus 6% interest down to the date that same is paid....
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In re Dow Corning Corp.
...(repealed).1 The effect of § 63 was to "stop, or at least suspend, interest as of the date of filing the petition." In re Norcor Mfg. Co., 36 F.Supp. 978, 979 (E.D.Wis.1941). See also, e.g., In re Rhine, 213 F.Supp. 527, 540 (D.Colo.1963) ("Section 63 . . . provides for a cut off of interes......
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In re Dow Corning Corp.
...309 (D.Ariz.1969) (referring to rate of interest in an Arizona statute as "the Arizona legal rate of interest"); In re Norcor Mfg. Co., 36 F.Supp. 978, 980 (E.D.Wis. 1941) (equating "the legal rate" with a Wisconsin statutory rate); Rollins v. Repper, 69 F.Supp. 976, 979 (E.D.Mich.1947) (re......
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Littleton v. Kincaid
...261, 34 S.Ct. 502, 58 L.Ed. 949; Miles Corp. v. Lindell, 8 Cir., 107 F.2d 729; In re Hopkins, D.C.R.I., 15 F.2d 206; In re Norcor Mfg. Co., D.C., E.D.Wis., 36 F.Supp. 978; Brown v. Leo, 2 Cir., 34 F.2d It is held under certain circumstances that interest is not payable on funds in custodia ......
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In re Metropolitan Metals, Inc.
...¶ 63.16 at 1859 (14th ed.1975). (The accrual of postpetition interest is suspended subject to reinstatement. In re Norcor Mfg. Co., 36 F.Supp. 978 (E.D.Wis.1941)). Where permitted, no separate request for interest is required or desired. To hold otherwise would invite an endless stream of a......