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Full-Text Articles in Bankruptcy Law

Bankruptcy - Right Of Trustee Against Claimant Of Vendor's Lien, Michigan Law Review Feb 1941

Bankruptcy - Right Of Trustee Against Claimant Of Vendor's Lien, Michigan Law Review

Michigan Law Review

More than four months before bankruptcy the vendor sold an automobile truck to the bankrupt grocer under an unrecorded conditional sales contract, and a part of the purchase money, represented by an installment note, is still owing. The appellant was assigned the contract and note before the first installment became due. The truck was turned over to the trustee in bankruptcy, who sold it and holds the proceeds. Appellant filed a claim in bankruptcy asserting a statutory purchase money lien. Held, that the lien of the vendor prevails over the trustee. Commercial Credit Co. v. Davidson, (C. C. …


Contracts - Sales - Effect Of Reasonable Belief In Buyer's Insolvency On Seller's Duty To Perform, W. Wallace Kent Nov 1940

Contracts - Sales - Effect Of Reasonable Belief In Buyer's Insolvency On Seller's Duty To Perform, W. Wallace Kent

Michigan Law Review

The plaintiff ordered goods from the defendant, for immediate delivery, terms $1,500 down, balance covered by notes of three and six months. The check given for the down payment was dishonored because of insufficient funds but was subsequently honored. On investigation the defendant discovered that there were unpaid judgments outstanding against the plaintiff, some of which were upwards of three years old. Inferring that the plaintiff was insolvent, the defendant refused to deliver the goods unless cash was paid therefor and when plaintiff refused this offer defendant attempted to return the down payment. Held, plaintiff's affairs were in such …


Bankruptcy - Corporate Reorganization - Validity Of Process Outside Territorial Confines Of Federal District Court, Edmund O'Hare Jun 1939

Bankruptcy - Corporate Reorganization - Validity Of Process Outside Territorial Confines Of Federal District Court, Edmund O'Hare

Michigan Law Review

Debtor corporation had contracted with defendant, operator of a retail store, whereby defendant agreed to sell debtor's products exclusively and to buy all of his supplies from debtor. While debtor was in the course of section 77 B reorganization proceedings, defendant refused to continue to comply with the contract, Defendant resided and did business in the same state and federal judicial circuit in which the reorganization court was located, but not within the territorial confines of the court, nor was process served upon defendant within the court's territorial jurisdiction. Debtor moved for specific performance of the contract. Held, debtor's …


Contracts - Consideration - The Rule Of Foakes V. Beer Discarded, Arthur A. Greene Jr. Mar 1939

Contracts - Consideration - The Rule Of Foakes V. Beer Discarded, Arthur A. Greene Jr.

Michigan Law Review

In an action on a promissory note, by an indorsee who was not a holder in due course, the defendant pleaded the following facts. In 1930 the payee held the promissory note of the defendant, who was known to be hopelessly insolvent. An agreement was thereupon made and executed between the payee, the plaintiff and defendant, whereby the plaintiff agreed to purchase the note from the payee in exchange for his automobile. The defendant in turn agreed to turn over to the plaintiff certain livestock or produce, to pay a certain balance in cash, and also to pay the license …


Contracts - Third Party Beneficiary - Right Of Promisor To Set Off Claim Againt Promisee In A Suit By Beneficiary, Arthur A. Greene Jr. Mar 1939

Contracts - Third Party Beneficiary - Right Of Promisor To Set Off Claim Againt Promisee In A Suit By Beneficiary, Arthur A. Greene Jr.

Michigan Law Review

A and B mortgaged real estate to the plaintiff to secure their notes aggregating $9,000. Six months later A and B exchanged this property to the defendant for certain real estate owned by her. By the deed the defendant assumed the mortgage indebtedness owed to the plaintiff. As a further consideration for the exchange, A and B executed a note for $13,050 to the defendant. The plaintiff instituted this action against A and B, seeking to recover the balance, and by amended petition joined the defendant. The defendant claimed the right of set-off on the uncollected judgment against A …


Executors And Administrators -- Quasi-Contract Liability Of Decedent's Estate -- Administrative Expenses As A Prior Charge On The Estate, Ralph Winkler Nov 1937

Executors And Administrators -- Quasi-Contract Liability Of Decedent's Estate -- Administrative Expenses As A Prior Charge On The Estate, Ralph Winkler

Michigan Law Review

After the supply of feed for the decedent's livestock had been depleted and before the appointment of an administrator, the plaintiff furnished some grain at the request of the decedent's daughter and son-in-law, no other parties attempting to assist in any way. It was understood that the plaintiff would look to the estate for payment. In an action of contract against the administrator in his representative capacity for the value of the grain the court held that the plaintiff had a valid claim in quasi-contract against the estate, basing the decision upon "broad considerations of policy." Since the estate was …


Contracts-Fraud-Rescission For Non-Disclosure Of Insolvency, Sheridan Morgan Apr 1936

Contracts-Fraud-Rescission For Non-Disclosure Of Insolvency, Sheridan Morgan

Michigan Law Review

Modern decisions have provided an important device for the protection of creditors through extension of the duty of disclosure by persons in extreme financial distress. The remedy chiefly used is rescission, which can be secured on the ground of "fraud," with restitution of property transferred in ignorance of the purchaser's distressed condition. The "fraud" need not consist of express misrepresentation of fact, though express misrepresentation often appears as an independent ground leading to the same result. The commercial importance of the remedies thus developed seems to justify consideration both of their practical consequences and of the theories on which relief …


Assignments - Effect Of Assignment Of Contract By Receiver Of Liquidating Insolvent Corporation Dec 1935

Assignments - Effect Of Assignment Of Contract By Receiver Of Liquidating Insolvent Corporation

Michigan Law Review

The Chicago Tribune contracted to furnish the Washington Post with four comics and two features at a stipulated price per week. The Post went into the hands of a receiver who continued the contract and eventually assigned it to the Washington Post Publishing Company, plaintiff, along with "all assets of said company [the Post] of every kind, character, and description, except cash." The Post then went out of existence. The plaintiff, assignee, sued to enforce the contract, tendering payment in cash. Held, that the contract was assignable, that there had been a valid assignment, and that the contract remained …


Evasion Of Mortgage Moratoria By Prosecution Of Personal Remedies, Gordon B. Wheeler, Edgar N. Durfee May 1935

Evasion Of Mortgage Moratoria By Prosecution Of Personal Remedies, Gordon B. Wheeler, Edgar N. Durfee

Michigan Law Review

For reasons political, social and economic which have never been fully analyzed, the moratory legislation of the last five years has shown special favor to the debtor whose obligation is secured by mortgage of land, and this legislation is faintly echoed in moratory decisions which have no direct statutory foundation. Granted that contracts have sometimes received similar treatment, that banks and insurance companies have also enjoyed indulgence, and that the new chapters of the Bankruptcy Act extend asylum to all and sundry, yet the mortgage is so far favored that the word "moratorium" brings to mind this case before all …


Contracts - Fraud - Implied Representation Of Solvency Jan 1934

Contracts - Fraud - Implied Representation Of Solvency

Michigan Law Review

Defendant, a wholesale grocer, had been losing steadily for months by selling below cost, and had assets of $83,000 against liabilities of $140,000 on Nov. 21, 1929. On that date he accepted a 90-day trade acceptance drawn by claimant for cases of tomato paste which he had ordered, and which claimant now seeks to reclaim on the ground of fraud. On December 3 defendant obtained the goods, and the next day went into involuntary bankruptcy. Held, that the buyer's promise to pay implies belief in reasonable ability to pay, and that concealment of belief to the contrary is fraud …


Bankruptcy - Claims Against Bankrupt Indorsers Feb 1932

Bankruptcy - Claims Against Bankrupt Indorsers

Michigan Law Review

Bankrupts were indorsers of promissory notes payable to claimants. None of these notes was due before the filing of the petition in bankruptcy and some of them did not mature within the year following adjudication during which proof of claims may be made. The court of appeals for the sixth circuit held that claimants could not prove on the indorsements because their claims were contingent. Held, that the claim was one "founded upon a contract express or implied," and provable even though not due until after the year allowed for proof of claims, the requirement of presentment and notice …


Sales--Distinction Between Conditional Sale And Chattel Mortgage-Michigan Rule Jun 1931

Sales--Distinction Between Conditional Sale And Chattel Mortgage-Michigan Rule

Michigan Law Review

The petitioner sold a truck under an unrecorded contract which provided that title was to remain in him until the buyer made full payment, and that in event of default the whole sum was to become due immediately with the right of reclamation. The buyer subsequently went into bankruptcy and the seller petitioned for reclamation of the truck from the trustee. Held, that since the contract under the Michigan rule constituted a chattel mortgage so that failure to record it made it ineffective against creditors, the petition should be denied. In re Central States Freight Corporation (E. D. Mich. …


Contracts-Liability Of Purchaser At Forclosure Sale For Obligations Of Forclosed Railroad Apr 1931

Contracts-Liability Of Purchaser At Forclosure Sale For Obligations Of Forclosed Railroad

Michigan Law Review

The BN Company executed a mortgage on certain railroad properties as security for a bond issue of the Company. Thereafter the Lehigh Company leased the mortgaged property for a term of 999 years. The lease stipulated that "all its covenants are to apply to the parties hereto, and to the several successors and assigns * * * of the parties or their properties." The lessee covenanted therein to indorse a guaranty of payment on the bonds of the BN Company. and did so indorse. Subsequently a mortgage executed by Lehigh prior to the lease with the BN Company, but which …


Landlord And Tenant-Contracts-Bankruptcy Nov 1929

Landlord And Tenant-Contracts-Bankruptcy

Indiana Law Journal

Recent Case Notes


Recent Important Decisions Jun 1916

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions; Book Reviews, Edwin C. Goddard, John R. Rood May 1916

Recent Important Decisions; Book Reviews, Edwin C. Goddard, John R. Rood

Michigan Law Review

A collection of recent important court decisions and book reviews.


Recent Important Decisions Mar 1916

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Nov 1915

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions May 1915

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Mar 1915

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Feb 1915

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Nov 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Jun 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions May 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Apr 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Mar 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Jan 1914

Recent Important Decisions

Michigan Law Review

A collection of recent important court decisions.


Recent Important Decisions Apr 1913

Recent Important Decisions

Michigan Law Review

Bankruptcy - Jurisdiction Depending on Principal Place of Business, Residence or Domicile - B, a domiciled resident of New York, employed by an express company in New York City in the capacity of a rate clerk, moved to New Jersey in igo8 for the purpose of acquiring a residence which would give the courts of that state jurisdiction of a contemplated divorce proceeding against his wife. He retained his position with the express company in New York, and in 1911 he secured a divorce in New York, the sole ground of jurisdiction of the New York court being that the …


Recent Important Decisions Mar 1913

Recent Important Decisions

Michigan Law Review

Bankruptcy - Judgment for Breach of Promis, Aggravated by Seduction, Not Dischargeable - Petitioner 'had secured a judgment against the bankrupt for the breach of a promise to marry, seduction under such promise having been pleaded in aggravation of damages; the common law rule prevails in New York and a woman may not maintain an action for her own seduction. The District Court (196 Fed. 571), viewing this as a judgment grounded solely in contract, and not in tort as "for -will-ful and malicious injury to the person or property of another," or for "seduction of an unmarried female," held …


Recent Important Decisions, Michigan Law Review May 1912

Recent Important Decisions, Michigan Law Review

Michigan Law Review

Bankruptcy--Actos of Bankruptcy--Partnership Preferences; Bankruptcy--constitutional Protection Afforded by the Fourth and Fifth Amendments to the Constitution; Bankruptcy--Interest--When Payable After Date of Filing Petition and up to date of Payment; Banks and Banking--Payment of Check to Wrong Person--Estoppel; Bills and Notes--Construction of Instrument--Negotiable Notes; bills and Notes--Indorsers--Notice of Dishonor by Telephone--Sufficiency; constitutional Law--Due Process of Law--Criminal Insane; electricity--Interfering Currents; Equity--Injunction Against Unfair Competition; Fishery--In Gross or Appurtenant; Homestead--Abandonment--Removal From State; Insanity--Court Cannot Interfere if Defendant has Refused to Set it up as a Defense at the Trial; Insurance--Foreign Insurance Companies--Liability on Losses Occurring After Dissolution; Libel and Slander--Qualified Privilege--Priest and Congregation; …