Louisiana Nat. Life Assur. Soc. v. Segen

Citation196 F. 903
Decision Date19 April 1912
Docket Number1,583.
PartiesLOUISIANA NAT. LIFE ASSUR. SOCIETY et al. v. SEGEN.
CourtUnited States District Courts. 5th Circuit. United States District Court (Eastern District of Louisiana)

On Application for New Trial, April 19, 1912.

Gustave Lemle, T. Catesby Jones, and Ernest T. Florance, for plaintiffs.

Soule &amp Richardson, for defendant.

FOSTER District Judge.

In this matter it is apparent that, unless defendant's open accounts, about $17,500 called good and $9,300 called doubtful, and estimated by him as aggregating in value $16,332.85, are considered as good assets, the defendant is insolvent, and was so at the date the petition was filed against him. If he was insolvent then, he has undoubtedly committed acts of bankruptcy in confessing judgment and in mortgaging his property.

It appears that the defendant is a peddler of jewelry, and that he sells same on the installment plan, usually to people who have no assets except their salaries. It is a reasonable inference from the testimony taken that a great majority of these parties are execution proof, though they are doubtless honest, and may eventually pay their debts in full. Therefore these open accounts should not be considered in estimating the defendant's resources. In considering assets in relation to liabilities, to determine solvence vel non, the assets ought to be such as a creditor of the alleged bankrupt could realize on if he obtained a judgment against him in the ordinary course of judicial procedure. In re Coddington (D.C.) 118 F. 281.

It is urged by the defendant that most small traders sell to people of no financial resources, and, if their open accounts are not to be considered good assets, they would be continually in danger of being proceeded against for involuntary bankruptcy. This, of course, would not be true if they did not commit acts of bankruptcy, and in this case I do not find the argument persuasive.

Such being the case, there will be a decree adjudicating the defendant a bankrupt.

On Application for New Trial.

Counsel for defendant has pressed his application for a new trial and a reversal of the order herein with great force and earnestness, and I have endeavored to give the entire matter careful reconsideration. The evidence establishes to my satisfaction that the debtor mortgaged his property with intent to hinder and delay his creditors, and the burden of proving his solvency is therefore on him. His liabilities are approximately $21,900. He has shown with reasonable certainty that he had assets, the fair valuation of which is as follows: Real estate, $6,500; merchandise, $6,679; furniture and other movables, part of which is exempt, $1,850-- a total of $15,029. This would leave a balance on the side of insolvency of...

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6 cases
  • In re Wrt Energy Corp., Bankruptcy No. 96-50212.
    • United States
    • United States Bankruptcy Courts. Fifth Circuit. U.S. Bankruptcy Court — Western District of Louisiana
    • August 24, 2001
    ...for payment of debts, within a reasonable period of time"; discussing discounting of accounts receivable); Louisiana Nat. Life Assur. Society v. Segen, 196 F. 903, 905 (E.D.La.1912)(same). Additionally, contingent assets or liabilities should be included as part of the balance sheet insolve......
  • Irving Trust Co. v. Manufacturers Trust Co.
    • United States
    • United States District Courts. 2nd Circuit. United States District Courts. 2nd Circuit. Southern District of New York
    • January 18, 1934
    ...with the valuation of choses in action, there have been other definitions; but they come down to the same thing. In the Segen Case (D. C.) 196 F. 903, 905, for example, which concerned accounts receivable of an installment house, the court said that the valuation should be "such as would be......
  • In re Wellesley
    • United States
    • United States District Courts. 9th Circuit. United States District Courts. 9th Circuit. Northern District of California
    • December 1, 1917
    ......503, 156 F. 638;. Louisiana Nat. Life Assurance Soc. v. Segen (D.C. Ala.) 28 ......
  • Hale v. Lange
    • United States
    • Court of Appeals of Texas
    • July 10, 1928
    ...is made in the following cases: In re Hines (D. C.) 144 F. 142; In re Matter of Kobre et al. (D. C.) 224 F. 106; La. Nat. Life Assur. Soc. v. Segen (D. C.) 196 F. 903. If the property had not been sold prior to the bankruptcy proceedings, the institution of such proceedings within four mont......
  • Request a trial to view additional results

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