Wilson v. Pennsylvania Trust Co.

• Decision Date: 25 April 1902
• Docket Number: 37.
• Citation: 114 F. 742
• Parties: WILSON v. PENNSYLVANIA TRUST CO.
• Court: U.S. Court of Appeals — Third Circuit

114 F. 742

WILSON v. PENNSYLVANIA TRUST CO.

No. 37.

United States Court of Appeals, Third Circuit.

April 25, 1902

Elias P. Smithers, for appellant.

W. A Way, for appellee.

Before ACHESON, DALLAS, and GRAY, Circuit Judges.

ACHESON Circuit Judge.

This is an appeal by Albert H. Wilson, a creditor of Speer C. Nelson a bankrupt, from a decree of the district court, sitting in bankruptcy, disallowing in part the claim of this creditor. The material facts are these: By a written lease dated January 26, 1900, Wilson demised to Nelson a lot of ground and building thereon erected for a term of five years from April 1, 1900, at an annual rent of $1,200, payable in monthly installments of $100 each, the tenant also to pay the water tax; the lessee stipulating it, if he should 'become a bankrupt,' the whole rent for the whole term 'shall be taken to be due and payable forthwith. ' On January 4, 1901, Nelson filed his petition in bankruptcy, and was adjudged a bankrupt. On January 5, 1901, the court made an order restraining Wilson from making a distress for rent. On January 28, 1901, Wilson filed a proof of debt under said lease for $1,215, being the rent for one year, from October 1, 1900, to October 1, 1901 and $15 water tax, which sum or debt of $1,215 he claimed had priority over general debts, and was payable in full out of the bankrupt's estate. On February 14, 1901, the trustee in bankruptcy notified Wilson that the lease would be surrendered and the premises vacated on February 28, 1901 but Wilson refused to accept such surrender. Afterwards, under an amicable arrangement entered into without prejudice to the right of either party, the premises were occupied by a third person until October 1, 1901. On the day last Mentioned-- october 1, 1901-Wilson accepted a surrender of the lease, and his tenant has since occupied the premises. The fund for distribution arose from the sale by the trustee of goods belonging to the bankrupt which were on the leased premises at the time of the filing of the petition in bankruptcy. The court allowed the claimant out of the fund, as a preferred debt, the sum of $300 for three months' rent due and payable when the petition in bankruptcy was filed, and the further sum of $200 as compensation, at the rental rate, for the period of two months the trustee in bankruptcy had occupied the premises; but disallowed the rest of the claim. The court, however, adjudged that the...