Yates American Mach. Co. v. Jury
| Citation | 56 F.2d 831 |
| Decision Date | 26 February 1932 |
| Docket Number | No. 4686.,4686. |
| Parties | YATES AMERICAN MACH. CO. v. JURY. |
| Court | United States Courts of Appeals. United States Court of Appeals (3rd Circuit) |
Donald K. Royal and Rosenberg & Rosenberg, all of Harrisburg, Pa., for appellant.
Frank E. Tressler, of New Bloomfield, Pa., for appellee.
Before BUFFINGTON, WOOLLEY, and THOMPSON, Circuit Judges.
In this case it appears the Newport Planing Mill Company (hereafter called Newport) was duly adjudged bankrupt in the court below, and the planing mill it was operating came into the possession of its trustee. Thereafter the Yates American Machine Company (hereafter called Yates) presented a petition alleging certain machines owned by it had been delivered to Newport on lease, and alleged the same "were delivered subject and pursuant to the conditions of the said leases and are and remain the absolute property of your petitioner, who is entitled to the immediate possession of same." The petition further alleged the machines were in possession of the trustee in bankruptcy, that demand had been made on him for the same and he had refused to deliver, and prayed the trustee be directed to deliver. The trustee made answer, inter alia, that the machinery was "affixed to the realty of the bankrupt and became a part thereof and could not be severed wholly or in any portion without material injury to the freehold." After hearing, the referee made an order, which, after directing that a certain particular machine, with which we are not here concerned, be delivered to the claimant, held that the "rules on the trustee to show cause why certain machinery should not be surrendered to the petitioner as its property are denied." After hearing, the court below affirmed the referee's order; whereupon Yates took this appeal.
While a number of other questions have been discussed before us as to certain alleged rights of Yates as against a subsequent mortgage of Newport's plant, the basic question involved in this appeal is not as to the rights of the said mortgagee, but what are those of the trustee as representing all creditors as against Yates claiming reclamation. To that appealed question we address ourselves.
Now it is clear that, on bankruptcy, the trustee coming into possession of a bankrupt property stands in the position of an execution creditor of the bankrupt. In this case the machines in question were installed in Newport's planing mill and were used for several years, and in Christian v. Dripps, 28 Pa. 271 it...
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...729; In re Jacob F. Thaler & Co., D.C., 1 F.2d 461 (under an earlier Act); In re Smith, D.C., 19 F.Supp. 595; cf. Yates American Machine Co. v. Jury, 3 Cir., 56 F.2d 831, certiorari denied, 287 U.S. 615, 53 S.Ct. 17, 77 L.Ed. 8 55 C.J. § 1268, p. 1259; The Time of Conditional Sales Contract......
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...secured creditor has succeeded in a reclamation proceeding, the trustee is the proper party to appeal in opposition. Yates American Mach. Co. v. Jury, 3 Cir., 56 F.2d 831, certiorari denied 287 U.S. 615, 53 S. Ct. 17, 77 L.Ed. 534. Possibly in some instances it might be to the benefit of ot......