In re Youdelman-Walsh Foundry Co.
| Decision Date | 26 January 1909 |
| Citation | 166 F. 381 |
| Parties | In re YOUDELMAN-WALSH FOUNDRY CO. |
| Court | U.S. District Court — Eastern District of New York |
Armstrong Brown & Boland (Pierre M. Brown, of counsel), for petitioner.
McKeen Brewster & Morgan, for receiver and trustee.
The petition in bankruptcy was filed upon the 16th day of September, 1908, and a receiver appointed. The bankrupt had been in possession of the property for a portion of a year under a lease by which the rent was payable in advance upon the 1st day of each month, and in addition the lease contained a proviso that the lessee, who is now the bankrupt should pay all taxes and water rates accruing upon the property within 30 days after they became due. It appears that the receiver continued in possession until the 25th day of November, 1908, when a sale was had. The trustee has since given up the lease and surrendered the property, and the surrender has been accepted by the landlord. The taxes for the year 1908, payable, not in advance, but for the current year, became a lien on October 5, 1908, and hence during the occupation by the receiver. The water rates became due to the city on September 25, 1908, were not in advance, and were to be paid by the tenant by October 25th. The landlord has now made an application to have the receiver pay him the reasonable value of the use of the premises for the period of his occupation, and at the same time to pay the water rates and taxes which have accrued, amounting in the case of the water rates to $272.12, and taxes to $325.69.
The receiver contends that he is not liable for rent prior to the 1st of October, inasmuch as he insists that the landlord has a provable claim against the bankrupt estate for his rent for the month of September, and that the receiver is entitled to the benefit thereof for the portion of that month in which he was in possession of the premises. This contention seems to be justified by some authorities; but this court has held in a number of instances that if the receiver is actually in possession, for the purpose of preserving the estate, during a certain number of days, he should pay, as part of the expenses of maintaining the estate, the pro rata rent, at a reasonable value, for that time, and in the same way this court has held in a number of instances that the receiver is entitled to the benefit of being compelled to pay only a reasonable value for the property, if the rental...
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... ... Lippner Auto Co., 150 Tenn. 482, 265 ... S.W. 988; In re Frazier, 117 F. 946; Title 11, ... U.S.C. A., sec. 104; In re Youdleman-Walsh Foundry ... Co., 166 F. 381; In the Matter of Automobile Co., ... Bankrupt, 24 American Bankruptcy Reports (N. S.) 594, l ... c. 596; Collier on ... ...
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In re Universal Medical Services, Inc.
...A. Pre-Celian Decisions In 1909 the Second Circuit adopted the position which is contra to Celian. In the case of In re Youdelman-Walsh Foundry Co., 166 F. 381 (2d Cir. 1909), a petition in bankruptcy had been filed on September 16th, with a receiver being appointed and occupying the bankru......
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In re Buttonwood Securities, Inc., Civ. A. No. 71-391-N.
...of the expenses of maintaining the estate, the pro rata rent, at a reasonable value, for that time, . . . ." In re Youdelman-Walsh Foundry Co., 166 F. 381, 382 (E.D.N.Y. 1909). This rule was confirmed by the Second Circuit Court of Appeals in In re Sherwoods, Inc., 210 F. 754 In a 1923 case......
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In re North Atlantic & Gulf Steamship Company
...of occupancy by the court's officer". Collier on Bankruptcy (14th ed.) Vol. 3, p. 1507. I will therefore follow In re Youdelman-Walsh Foundry Co., D.C.E.D.N.Y., 166 F. 381, and Matter of Preisler, 7 Cir., 13 F.2d 116, and hold that the trustee's liability commences on an apportioned basis o......