Schwarz v. JEFFERSON LOAN COMPANY, 15758.
| Decision Date | 18 December 1957 |
| Docket Number | No. 15758.,15758. |
| Citation | 250 F.2d 218 |
| Parties | Thomas Rowe SCHWARZ, Custodial Receiver of Jefferson Loan Company, Inc., Bankrupt, Appellant, v. JEFFERSON LOAN COMPANY, Inc., Appellee. |
| Court | U.S. Court of Appeals — Eighth Circuit |
Thomas Rowe Schwarz, pro se.
Forrest M. Hemker, St. Louis, Mo. (Edward L. Wiese, St. Louis, Mo., on the brief), for appellee.
Before SANBORN, JOHNSEN and VOGEL, Circuit Judges.
This is an appeal from an order of the District Court, entered November 30, 1956, confirming an order of the Referee in Bankruptcy, filed June 26, 1956, denying the application of the appellant, Thomas Rowe Schwarz, as custodial receiver, for compensation in the amount of $1,485.74.
The facts are not in dispute, and the question for decision is whether, under the Bankruptcy Act, the appellant was entitled to the compensation which was denied him.
Schwarz was, on March 14, 1952, appointed by the District Court temporary receiver in an involuntary bankruptcy proceeding against the Jefferson Loan Company, Inc., debtor. The debtor was a finance company, the business of which consisted of making loans, financing accounts receivable for mercantile establishments, discounting notes, and making collections on the paper held by it. On December 9, 1952, while the involuntary proceeding was pending, the debtor filed a petition for an arrangement under Chapter XI of the Bankruptcy Act (11 U.S.C.A. §§ 701 et seq.). The bankruptcy proceedings were stayed. A modified plan of arrangement was filed April 29, 1953, which was confirmed May 22, 1953. As required by 11 U.S.C.A. § 737(1), the Referee on May 12, 1953, appointed Schwarz as custodial receiver or disbursing agent to receive and distribute the moneys to be deposited with him by the debtor under the proposed arrangement plan, and ordered that his compensation as such be the maximum allowed by § 76, sub. a(1) of Title 11 U.S.C.A.
On March 29, 1954, Schwarz petitioned the court for the allowance of $5,000 as compensation as receiver in bankruptcy. In his petition he stated that, pursuant to the plan of arrangement, the creditors of the debtor had been paid $270,480.62, and that its debenture holders had received preferred stock of the debtor. He further stated that his allowable compensation under 11 U.S.C.A. § 76, sub. a(3) would be $7,249.52 if it was determined that he was an operating receiver, and would be $3,624.78 under § 76, sub. a(2) if it was concluded that he was a receiver with full powers.
On April 30, 1954, the Referee determined that Schwartz as receiver had theretofore filed his report and a supplemental final report of March 29, 1954, showing that he had collected during the period of receivership $149,314.79, had disbursed $119,004.70, and had on hand, after deduction of certain authorized expenditures and a small bookkeeping error, $28,467.87. The Referee ordered: (1) that the receiver's reports be approved; (2) that Schwartz be allowed $3,385.58 for his services as receiver; (3) that Schwarz as receiver turn over to Schwarz as custodial receiver the balance of $28,467.87; and (4) that upon the filing of the latter's receipt for this cash balance and the debtor's receipt for all assets theretofore delivered to it, the receiver be discharged of his trust. The basis for the Referee's allowance of compensation to Schwarz as receiver was that he was not an operating receiver compensable under § 76, sub. a(3) of Title 11 U.S.C.A., but was a receiver with full powers and compensable under § 76, sub. a(2), and that the total amount upon which his compensation was to be computed (including $185,000 paid to him by the debtor to carry out the plan of arrangement) was $324,558.19. In his memorandum with respect to the application of the receiver, the Referee said:
To continue reading
Request your trial