Leo Everett v. William Judson
| Decision Date | 28 April 1913 |
| Docket Number | No. 595,595 |
| Citation | 33 S.Ct. 568,228 U.S. 474,57 L.Ed. 927 |
| Parties | A. LEO EVERETT, as Trustee in Bankruptcy of Alfred M. Judson, Individually and as a Member of the Firm of Judson & Judson, Petitioner, v. WILLIAM D. JUDSON, as Executor of the Last Will and Testament of Alfred M. Judson |
| Court | U.S. Supreme Court |
Mr. Charles K. Beekman for petitioner.
[Argument of Counsel from page 475 intentionally omitted] Messrs. George S. Ludlow and Wilbur L. Ball for respondent.
This case involves the title to the proceeds of certain insurance policies upon the life of Alfred M. Judson, bankrupt, deceased, collected by the trustee in bankruptcy. The executor of Judson's estate brought suit against the trustee in the United States district court for the southern district of New York, asserting title to such funds. The district court ordered that the proceeds of the policies, less their cash surrender value, be paid to the executor (188 Fed. 702); the circuit court of appeals for the second circuit, upon petition to revise, affirmed that order (113 C. C. A. 158, 192 Fed. 834), and the case comes here on certiorari.
A petition in involuntary bankruptcy was filed against the firm of Judson & Judson and its members, Alfred M. Judson being one, on December 17, 1910, and on December 23, 1910, Judson entered a notice of his appearance in the proceedings. On January 9, 1911, the firm and its members were adjudged bankrupts, and on February 9, 1911, Everett qualified as trustee. Judson owned certain life insurance policies at the time of the institution of the bankrupt proceedings, and thereafter and until his death, payable to his executors, administrators, or assigns. So far as this case is concerned, at the time of the filing of the petition in bankruptcy, these policies, with cash surrender values and subject to loans, were as follows: One policy for $5,000, having a cash surrender value of $2,291.49, and subject to a loan of $2,238; another for $1,000, having a cash surrender value of $332.31, and subject to a loan of $322; and another for $10,000, having a cash surrender value of $5,030, and subject to a loan of $5,240. It therefore appears that the cash surrender value of the policies on December 17, 1910, was $63.80.
On January 4, 1911, Judson committed suicide. Notice was served on the trustee that the executor claimed the right, under § 70a of the bankruptcy act, to pay to the trustee the cash surrender value of the policies when ascertained, but the trustee denied such right and also the right of the executor to the balance of the proceeds of the policies. Under agreement, the insurance companies paid to the trustee $8,675.14 upon the policies. The executor asserted title to the difference between the sum realized on the policies and the cash surrender value; namely, $8,611.34. The district court, upon the authority of Burlingham v. Crouse, 104 C. C. A. 227, 181 Fed. 479, held that the proceeds of the policies, over and above the cash surrender value as of the date of the filing of the petition, passed to the executor. The circuit court of appeals affirmed the order of the district court, holding that the time when the interest of the bankrupt...
To continue reading
Request your trial
-
Board of Commerce of Ann Arbor, Mich., v. Security Trust Co.
... ... beginning of the proceedings.' ... In ... Everett v. Judson, 228 U.S. 474, 478, 33 Sup.Ct ... 568, 569, 57 L.Ed. 927, 46 L.R.A. (N.S.) 154, Mr ... ...
-
In re Sattler's, Inc.
...of a bankruptcy petition effected a cleavage; the condition of the estate was assessed as of that date, Everett v. Judson, 228 U.S. 474, 479, 33 S.Ct. 568, 569-70, 57 L.Ed. 927 (1913); see also Andrews v. Partridge, 228 U.S. 479, 33 S.Ct. 570, 57 L.Ed. 929 (1913), and the trustee's avoiding......
-
Brown v. Keefe
...at the date of the petition. Zavelo v. Reeves, 227 U.S. 625, 631, 33 S.Ct. 365, 57 L.Ed. 676, Everett v. Judson, 228 U.S. 474, 479, 33 S.Ct. 568, 57 L.Ed. 927, 46 L.R.A.(N.S.) 154. If the Union Bank at that date had been a going concern, the possibility that it might later become insolvent ......
-
Cunningham v. Comm'r of Banks
...of adjudication is that which the bankrupt owned at the time of the filing of the petition’ (Everett v. Judson, 228 U. S. 474, 479, 33 Sup. Ct. 568, 569, 57 L. Ed. 927, 46 L. R. A. [N. S.] 154), the practical result is the same. If title to the stock passed to the trustee in bankruptcy as o......
-
The Last Dance: Righting the Supreme Court's Greatest Bankruptcy Apostasy.
...date of cleavage between the debtor's pre and postpetition lives has deep roots in bankruptcy jurisprudence. See, e.g., Everett v. Judson, 228 U.S. 474, 479 (1913) ("We think that the purpose of the [bankruptcy] law was to fix the line of cleavage with reference to the condition of the bank......
-
Three Against Two: on the Difference Between Property and Contract and the Example of Deposit Accounts in Bankruptcy
...Brown v. Pyatt (In re Pyatt), 486 F.3d 423, 427 (8th Cir. 2007). 255. National Bankruptcy Act of 1898, § 18(g); Everett v. Judson, 228 U.S. 474 (1913). "[F]or many years prior to 1959 the entry of the adjudication order in voluntary proceedings was essentially a matter of routine, occurring......
-
Not Just Anna Nicole Smith: Cleavage in Bankruptcy
...White, Bankruptcy 18-38 (1992) (explaining the commencement of cases under the various chapters of the Code).8. E.g., Everett v. Judson, 228 U.S. 474, 479 (1913) ("We think that the purpose of the [bankruptcy] law was to fix the line of cleavage with reference to the condition of the bankru......
-
Marketable Title After Bankruptcy
...v. Pursel, 55 Colo. 287, 134 P. 107 (1913). 12. Davis v. Pursel, supra n. 8. 13. C.R.S. 1973, § 38-41-201 et seq. 14. Everett v. Judson, 33 S.Ct. 568, 228 U.S. 474, 57 L.Ed. 927. 15. Bankruptcy Rules, 608, 10-608, 11-55, 12-54, and 13-605. 16. Bankruptcy Act, § 70a (11 U.S.C. 110). 17. Bank......