In re State Bank
| Decision Date | 25 May 1894 |
| Docket Number | 8802 |
| Citation | 59 N.W. 315,57 Minn. 361 |
| Parties | In re State Bank, Insolvent |
| Court | Minnesota Supreme Court |
Argued May 21, 1894
Appeal by George H. Fletcher former assignee of the insolvent State Bank of Minneapolis, from an order of the District Court of Hennepin County, Henry G. Hicks and Charles M. Pond, JJ made November 25, 1893, allowing in part and disallowing the residue of his final account as such assignee.
On June 27, 1893, the State Bank made an assignment of its property under Laws 1881, ch. 148, as amended to George H. Fletcher in trust for its creditors. He accepted the trust, gave bond and discharged the duties of that office until August 12, 1893 when he resigned. His resignation was accepted at once and he was ordered to turn over to his successor all property and money in his hands. On August 17, 1893, William J. Hahn was appointed in his stead and accepted the trust. Fletcher filed his final account as assignee on August 23, 1893, and obtained an order that W. J. Hahn his successor and all parties interested show cause, if any they had, on September 23, 1893, why his report and account should not be approved and allowed. Notice of the hearing was ordered to be given by mailing a printed copy of the order to all creditors named in the schedule of liabilities of the bank. About one hundred and fifty of the creditors by their attorney appeared and filed a verified statement of facts and objections to the account and various items thereof. The hearing was adjourned from time to time until November 25, 1893, when the report and account and the objections thereto were heard before Judges Henry G. Hicks and Charles M. Pond sitting together at Special Term. Oral evidence was heard by them and reduced to writing, signed and verified by the witnesses and filed with the clerk. The judges also in passing upon items of the account considered and acted upon facts observed by them in directing the assignee, an officer of the court, acting under its authority.
The court allowed for postage, rent, stamped envelopes, printing notices, clerk hire, sheriff's and clerk's fees, but rejected traveling expenses, stenographer's charges and copying. Fletcher reported that he had received from the insolvent and collected on claims a total of $ 8,643.14 and had on August 22, 1893, paid $ 5,000 thereof to Hahn his successor, but had retained the residue to cover his charges attorney's fees and disbursements. He claimed $ 1,500 for his services and $ 1,080 for his attorney's fees and $ 851.38 for disbursements. The court, citing In re Shotwell, 49 Minn. 170, reduced the assignee's fees to the percentage allowed by Laws 1889, ch. 30, § 8, on moneys actually collected, viz. to $ 368.62, and reduced the attorney's fees to $ 400, and the disbursements to $ 412.44. The two Judges disagreed upon some of the items and the order was consequently signed only by Hicks, the Judge senior in office. Laws 1881 (Ex. Sess.) ch. 84, § 3. Fletcher was indebted to the bank at the time of its assignment, on his notes to it over $ 5,000 and in view of this fact the order provided that; "The balance of the funds belonging to the estate of the insolvent bank now in the hands of the said George H. Fletcher be, within five days after notice of this order, paid over to William J. Hahn Esq., the present assignee of said insolvent bank, and that until such payment is made in conformity with this order, no allowance whatever will be made to the said George H. Fletcher for his fees, disbursements and expenses incurred while acting as such assignee as aforesaid." Fletcher appeals from the order, assuming it to be final, not interlocutory. 1878 G. S. ch. 86, § 8, subd. 6.
Order affirmed.
J. F. McGee, for appellant.
John W. Arctander, for respondents.
Mitchell, J. Buck, J., absent, sick, took no part.
The short facts are that on June 27th the State Bank of Minneapolis, being insolvent, made an assignment for the benefit of its creditors to one Fletcher, a stockholder and director of the bank, and a debtor to it in the sum of over $ 5,000, of which $ 1,500 was overdue. Fletcher entered upon the duties of his office, as assignee, June 30th. On August 12th he resigned, and on August 17th the court made an...
To continue reading
Request your trial