Tyler v. Jones County Bank

• Decision Date: 04 March 1949
• Docket Number: No. 32363.,32363.
• Citation: 52 S.E.2d 547
• Court: Georgia Court of Appeals
• Parties: TYLER . v. JONES COUNTY BANK.

52 S.E.2d 547

TYLER .

v.JONES COUNTY BANK.

No. 32363.

Court of Appeals of Georgia,

Division No. 1.

March 4, 1949.

Syllabus by the Court.

Under the evidence, the trial judge, sitting without a jury, was authorized to find that the plaintiff's debt was not duly scheduled in the bankruptcy proceedings, nor did the plaintiff have notice or actual knowledge thereof within the time required by law; and, consequently, the defendant's discharge in bankruptcy did not operate against the plaintiff's debt.

The judgment in favor of the plaintiff was authorized under the law and the evidence, and the trial judge did not err in overruling the defendant's motion for a new trial.

Error from Superior Court, Bibb County; Mallory C. Atkinson, Judge.

Action by Jones County Bank against M. O. Kitchens and M. D. Tyler on promissory notes. To review an adverse judgment, defendant Tyler brings error.

Judgment affirmed.

Roy B. Rhodenhiscr, Jr., of Macon, for plaintiff in error.

Jno. R. L. Smith, of Macon, for defendant in error.

SUTTON, Chief Judge.

Jones County Bank sued M. O. Kitchens and M. D. Tyler, in Bibb County Superior Court, on a series of promissory notes, dated January 16, 1946. The defendant Tyler filed a plea of bankruptcy.

The case was tried before the Judge of the Superior Court, without the intervention of a jury; and the plaintiff made out a prima facie case by introducing in evidence the notes sued on. These notes were signed by M. O. Kitchens and M. D. Tyler and were made payable to Jones County Bank. The defendant introduced in evidence a certified copy of his discharge in bankruptcy, showing that he was adjudged a bankrupt, on March 29, 1946, in the U. S. District Court, Macon, Georgia, and that he was granted a discharge on June 21, 1946. The plaintiff bank then proved by a certified copy of the schedules of the bankruptcy petition filed by M. D. Tyler that the Jones County Bank was not named in the bankruptcy schedules. "Haddock Bank, Haddock, Georgia" was listed in the schedule.

The Referee in bankruptcy in Macon, Georgia, as a witness for the defendant, testified that he mailed notices to all of the creditors listed in the bankruptcy schedules of M. D. Tyler, including the Bank of Haddock at Haddock, Georgia, and that none of them had been returned to him, though they were mailed in regular United States envelopes bearing his return address; that a notice of the first meeting of creditors was published in the Macon News and subsequent notices were published relating to the granting of the discharge to M. D. Tyler.

G. A. Smith, the president of Jones County Bank, testified as to the balance due on the notes sued on; that he did not know that M. D. Tyler had gone in bankruptcy, until April 2, 1947, when M. O. Kitchens made a payment on said notes and informed him of this fact; that he alone was authorized to open the bank's mail and that he never received any notice of M. D. Tyler's bankruptcy from the Referee; that Haddock, Georgia, is a town of only a few hundred people and he received his mail at a post office box there, and that he presumed that a letter addressed to the Bank of Haddock at Haddock, Georgia, would be placed in his box; that the Jones County Bank was the only bank in Haddock, Georgia; that they received both the Macon Telegraph and the Macon News in Haddock, Georgia.

The trial judge rendered a judgment in favor of the plaintiff. The defendant Tyler made a motion for a new trial, which was overruled; and he excepted.

1. "A prima facie defense to a suit against a bankrupt on a debt existing at the time of filing the petition in bankruptcy is made out by the introduction in evidence of the order of discharge in bankruptcy, the burden being then cast upon the plaintiff to show that because of the nature of the claim, failure to give notice, or other statutory reason, the debt sued upon was by law excepted from the operation of the discharge." Bell v. Georgia Chemical Works, 33 Ga.App. 286, 287, 125 S.E. 871; Kreitlein v. Ferger, 238 U.S. 21(1), 35 S.Ct. 685, 59 L.Ed. 1184, 1186; Coppedge v. Aycock Mortgage & Bond Corp, 51 Ga.App. 248, 179 S.E. 909.

2. "A discharge in bankruptcy shall release a bankrupt from all of his provable debts, * * * except such as * * * have not been duly scheduled in time for proof and allowance, with the name of the creditor, if known to the bankrupt, unless such creditor had notice or actual knowledge of the proceedings in bankruptcy." 11 U.S.C.A. § 35. Hence, "a discharge in bankruptcy results either from the proper and timely scheduling of the debt, though the creditor had neither notice nor actual knowledge of the proceedings in bankruptcy (Beck & Gregg Hardware Co. v. Crum, 127 Ga. 94(3), 95, 96, 56 S.E. 242; Marshall v. English-American Loan & Trust Co, 127 Ga. 376 (3), 377..56 S.E. 449; Travis v. Sams, 23 Ga.App. 713, 714 (2), 99 S.E. 239; Bank of LaFayette v. Phipps, 24 Ga.App. 613 (1), 101 S.E. 696), or, in the absence of such proper and timely scheduling, if the creditor 'had notice or actual knowledge of the proceedings in bankruptcy.' Peterson v. Calhoun, 137 Ga. 799, 74 S.E. 519; Brooks v. Pitts, 24 Ga.App. 386 (2), 100 S.E. 776; Bank of Wrightsville v. Four Seasons, 21 Ga.App. 453, 94 S.E. 649." But the schedule should be filed, or the notice or actual knowledge received within the time required by law, in order for either to work a discharge; and the time required in this respect was formerly within one year after the bankruptcy adjudication, Bankruptcy Act of July 1, 1898, § 57, sub. n, Act of May 27, 1926, § 13, but now is "within six months after the first date set for the first...