John Hancock Mut Life Ins Co v. Bartels, No. 33
| Court | United States Supreme Court |
| Writing for the Court | HUGHES |
| Citation | 60 S.Ct. 221,308 U.S. 180,84 L.Ed. 176 |
| Docket Number | No. 33 |
| Decision Date | 04 December 1939 |
| Parties | JOHN HANCOCK MUT. LIFE INS. CO. v. BARTELS |
v.
BARTELS.
Page 181
Messrs. L. M. Bickett, of San Antonio, Tex., and John H. Bickett, Jr., of Dallas, Tex., for petitioner.
Messrs. T. E. Mosheim, of Seguin, Tex., Elmer McClain, of Lima, Ohio, and Wm. Lemke, of Fargo, N.D., for respondent.
Mr. Chief Justice HUGHES delivered the opinion of the Court.
In this proceeding brought by a farmer under Section 75 of the Bankruptcy Act, 11 U.S.C.A. § 203, the District Court dismissed the debtor's petition. The Circuit Court of Appeals held that this action was contrary to the requirements of the statute and directed the proceeding to be reinstated. 5 Cir., 100 F.2d 813. Because of conflict in the rulings of the Court of Appeals of the Fifth Circuit, due to the differing views of the judges composing the court in the cases cited,1 and because of the importance of the question, we granted certiorari, 307 U.S. 617, 59 S.Ct. 794, 83 L.Ed. 1498, April 24, 1939.
Respondent Bartels presented his petition to the District Court on December 2, 1937, asking that he be afforded an opportunity to effect a composition or exten-
Page 182
sion of time to pay his debts under Section 75. The court referred the matter to a conciliation commissioner, directing the debtor to appear before the commissioner and to submit to such orders as might be made in proceedings under that section. A meeting of the creditors was held on December 21, 1937, at which the debtor was present and was examined. It appeared that his debts amounted to about $10,000 of which about $8,000 (including interest and attorney's fees) was owing to the John Hancock Mutual Life Insurance Company and was secured by a lien upon his home. As the debtor was unable to obtain an agreement with a majority of his creditors in number and amount, he notified the commissioner that he would apply to be adjudged a bankrupt under subsection § of Section 75, 11 U.S.C.A. § 203, sub. s. That application was filed on January 10, 1938. The debtor asked that 'his property be appraised', that 'his exemption be set aside to him' and that he be permitted 'to retain possession of his property under the supervision of the court'. On the same day, the District Judge entered an order adjudging the debtor a bankrupt and requiring further proceedings before the commissioner acting as referee under subsection s.
On March 23, 1938, the John Hancock Company moved to set aside the adjudication and to dismiss the debtor's petition on the ground that the debtor was not entitled to avail himself of the provisions of subsection (s); that he had not presented any feasible plan for a composition and extension of his debts, and that his petition 'was not filed in good faith' or 'with and hope or expectation of working out his debts and paying up his delinquencies but apparently for the sole purpose of hindering and delaying his creditors'. The Company also alleged that at the fair market value of the real property held by it as security there was no equity for the debtor and that the Company would suffer irreparable loss unless the adjudication was set aside and the proceeding dismissed.
Page 183
The debtor denied these allegations and alleged that the land on which the Company had a lien was worth unimproved more than $7,000 and that the improvements were worth $6,000 and that he thus had a large equity which would be lost to him unless he obtained the benefits sought under the applicable law.
At the hearing of the motion on April 5, 1938, the court received the evidence previously taken before the commissioner and additional testimony. Thereupon the motion was granted. The District Judge said in his opinion that the debtor had not made any proposal which could be construed as a 'good faith offer for an extension or composition' and hence the debtor was not entitled to be adjudged a bankrupt under subsection s. The District Judge observed that the evidence was conflicting as to the value of the land (100 acres); that, separating the land from its improvements, certain of the debtor's witnesses placed its value at $70 an acre and the improvements at $5,000 or $6,000, while witnesses for the creditor valued the land at about $40 an acre and the improvements at about $2,000. He thought that there was no reasonable probability of the property being sold for enough to give any substantial equity to the debtor and accordingly found that there was no reasonable probability of the debtor's financial rehabilitation. In that view the District Judge concluded 'that the order adjudicating the debtor a bankrupt under subsection (s) was improperly entered and should be set...
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In re Victory Const. Co., Inc., Bankruptcy No. LA-80-07936-RO
...creditors sections (a)-(r), and failing this, to ask for the other relief afforded by subsection (s). John Hancock Ins. Co. v. Bartels, 308 U.S. 180 at 185-187, 60 S.Ct. 221 at 223-224, 84 L.Ed. 176 (1939). The scheme of the statute was to provide an orderly procedure to give whatever relie......
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Gifford, Matter of, No. 81-1174
...See Wright v. Vinton Branch of the Mountain Bank of Roanoke, 300 U.S. 440, 57 S.Ct. 556, 81 L.Ed. 736; John Hancock Ins. Co. v. Bartels, 308 U.S. 180, 184 n.3, 60 S.Ct. 221, 223 n.3, 84 L.Ed. 176; Wright v. Union Central Life Ins. Co., 311 U.S. 273, 61 S.Ct. 196, 85 L.Ed. 184; Helvering v. ......
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Lowry v. Baltimore & Ohio R. Co., No. 81-1976
...249 (1941). 2 See Commissioner of Internal Revenue v. Textile Mills Corp., 117 F.2d at 70 (referring to John Hancock Ins. Co. v. Bartels, 308 U.S. 180, 60 S.Ct. 221, 84 L.Ed. 176 3 Lang's Estate v. Commissioner of Internal Revenue, 97 F.2d 867, 869 (9th Cir.1938). 4 Western Pac. R.R. Corp. ......
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Western Pac. RR Corp. v. Western Pac. R. Co., No. 12506.
...of the court such as the Supreme Court describes as occurring in the Fifth Circuit in John Hancock Mut. Life Ins. Co. v. Bartels, 308 U.S. 180, 181, 60 S.Ct. 221, 84 L.Ed. 176.314 U.S. at page 334, 62 S.Ct. at page 277, in affirming the Third Circuit and overruling our decision in Lang's Es......
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In re Victory Const. Co., Inc., Bankruptcy No. LA-80-07936-RO
...creditors sections (a)-(r), and failing this, to ask for the other relief afforded by subsection (s). John Hancock Ins. Co. v. Bartels, 308 U.S. 180 at 185-187, 60 S.Ct. 221 at 223-224, 84 L.Ed. 176 (1939). The scheme of the statute was to provide an orderly procedure to give whatever relie......
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Gifford, Matter of, No. 81-1174
...See Wright v. Vinton Branch of the Mountain Bank of Roanoke, 300 U.S. 440, 57 S.Ct. 556, 81 L.Ed. 736; John Hancock Ins. Co. v. Bartels, 308 U.S. 180, 184 n.3, 60 S.Ct. 221, 223 n.3, 84 L.Ed. 176; Wright v. Union Central Life Ins. Co., 311 U.S. 273, 61 S.Ct. 196, 85 L.Ed. 184; Helvering v. ......
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Lowry v. Baltimore & Ohio R. Co., No. 81-1976
...249 (1941). 2 See Commissioner of Internal Revenue v. Textile Mills Corp., 117 F.2d at 70 (referring to John Hancock Ins. Co. v. Bartels, 308 U.S. 180, 60 S.Ct. 221, 84 L.Ed. 176 3 Lang's Estate v. Commissioner of Internal Revenue, 97 F.2d 867, 869 (9th Cir.1938). 4 Western Pac. R.R. Corp. ......
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Western Pac. RR Corp. v. Western Pac. R. Co., No. 12506.
...of the court such as the Supreme Court describes as occurring in the Fifth Circuit in John Hancock Mut. Life Ins. Co. v. Bartels, 308 U.S. 180, 181, 60 S.Ct. 221, 84 L.Ed. 176.314 U.S. at page 334, 62 S.Ct. at page 277, in affirming the Third Circuit and overruling our decision in Lang's Es......
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The Objective and Jurisdictional Origins of Chapter 11's Good Faith Filing Requirement.
...the debtor's "assertion that he is a farmer within the meaning of the Act.") (citing John Hancock Mut. Life Ins. Co. v. Bartels, 308 U.S. 180 (1939)); In re Jordan, 48 F. Supp. at 892 (finding Section 75 "was adopted for the relief of farmers, not for the relief of farms, nor......