Derby v. Newton

20 P.2d 439, 142 Or. 427, 1933 Ore. LEXIS 269
CourtOregon Supreme Court
DecidedMarch 21, 1933
StatusPublished
Cited by7 cases

This text of 20 P.2d 439 (Derby v. Newton) is published on Counsel Stack Legal Research, covering Oregon Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Derby v. Newton, 20 P.2d 439, 142 Or. 427, 1933 Ore. LEXIS 269 (Or. 1933).

Opinion

BAILEY, J.

This is an action by plaintiff against defendants W. L. Newton and C. L. McCauley to recover damages for alleged conversion of an automobile. The case was tried before a court without a jury, and from a judgment in favor of the plaintiff the defendants prosecute this appeal.

The only question presented, due to the failure to file a bill of exceptions, is whether or not the plaintiff’s pleadings are sufficient to sustain the judgment. According to the abstract of record, findings of fact in conformance with the allegations of the complaint were made by the trial judge, and filed, but they have not been brought to this court.

The amended complaint, which was filed on January 22, 1930, alleges that on November 1, 1929, Bert Townsend and his wife, Violet Townsend, were adjudicated bankrupts, and that in the same month F. N. Derby was elected and appointed trustee in bankruptcy for them and qualified as such by taking the oath of office and giving the necessary bond. According to the averments of the amended complaint, the said Bert Townsend and Violet Townsend were, at the time *429 they filed their petitions to be declared bankrupts, the owners of the automobile involved in this litigation.

Paragraphs V, VI and VII of the amended complaint are as follows:

(V) “That during all the times herein mentioned and on the 1st day of November, 1929, the plaintiff was the owner, by virtue of said trusteeship, of and entitled to the possession of the following described personal property located in the city of Salem, Marion county, Oregon, to wit: One 1928 Gardner Eight Sedan, Type 95, Serial number G. U. A. 987 and Motor number 22879A.
(VI) “That on or about the — day of November, 1929, the defendants wrongfully and unlawfully took possession of said personal property and converted the same to their own use.
(VII) “That thereafter the plaintiff duly demanded of the defendants possession of said personal property, but the defendants wrongfully failed and refused to surrender possession of the same or any part thereof to the plaintiff ”.

It is then alleged that the automobile at the time of the conversion was worth the sum of $1,200 and that by the conversion thereof the plaintiff has been damaged in the sum of $1,200.

The answer admits the marital status of Bert and Violet Townsend, denied the rest of the amended complaint and sets forth three affirmative defenses. Paragraph I of defendants’ first further and separate answer and defense alleges that during all times mentioned in the pleadings C. L. McCauley “was and now is the duly elected, qualified and acting sheriff of the county of Deschutes, state of Oregon”. The third further and separate answer and defense is to the effect that F. N. Derby, plaintiff herein, did not within *430 ten days after Ms election as trustee file any bond or undertaking for the faithful performance of his duty as such trustee in bankruptcy and that no order had been made extending the time in which such bond or undertaking might be filed. Plaintiff admits the allegations of this defense.

The reply, after admitting that defendant Mc-Cauley was sheriff of Deschutes county, avers that during the early part of November, 1929, and while acting as such sheriff, McCauley took possession of the automobile involved herein by virtue of a writ of attachment issued out of the circuit court of Oregon for Marion county and directed to him as such sheriff, in a certain case then pending in Marion county; and that thereafter and on or about November 14, 1929, said sheriff was, by the attorneys representing the plaintiff in the case in which the writ of attachment had been issued, directed in writing to release said automobile from the attachment. It is then alleged in the reply “that the defendants herein, on or about the fourteenth day of November, 1929, took possession of said automobile and converted the same to their own use, as more fully set out in plaintiff’s complaint”.

It is maintained by the defendants on this appeal that since the reply admits that P. N. Derby did not file his undertaking as trustee in bankruptcy within ten days from his appointment as such trustee, and no order was granted extending the time within which to file such undertaking, he was not qualified as trustee to bring this action. It is not, however, alleged or claimed by the defendants that the plaintiff had not, within 15 days of his appointment, or prior to instituting tMs action, filed the necessary undertaking.

*431 Subdivisions (b) and (k) of § 78,11 U. S. C. A., relating to this subject, provide:

“(b) Trustees, before entering upon the performance of their official duties, and within ten days after their appointment, or within such further time, not to exceed five days, as the court may permit, shall respectively qualify by entering into bond to the United States, with such sureties as shall be approved by the courts, conditioned for the faithful performance of their official duties”.
“ (k) If any referee or trustee shall fail to give bond, as herein provided and within the time limited, he shall be deemed to have declined his appointment, and such failure shall create a vacancy in his office”.

With reference to these requirements, the Circuit Court of Appeals for the Fourth Circuit, in Sharfsin v. United States, 265 Fed. 916, remarked:

“Although the trustee did not give bond, and although the statute provides that the office shall be vacant upon his failure to do so within ten days, he nevertheless remained the de facto trustee, charged with all the official duties of the position, and entitled to enforce all the rights of a trustee against the defendant. These rights and duties could only be ended by the judicial declaration of a vacancy. The principle has been too often decided to require discussion”: Citing numerous cases decided by the United States Supreme Court.

The amended complaint alleges that the plaintiff duly qualified by filing his oath of office, and we must assume, in the absence of a bill of exceptions, that the evidence supported this allegation.

Upon his appointment, the title of the trustee relates back to the day of the adjudication, and since Townsend and his wife were adjudicated bankrupts on November 1, 1929, plaintiff was from that time for *432 ward the owner of the automobile in question: 4 Remington on Bankruptcy (3d Ed.), § 1376; First National Bank v. Wegener, 94 Or. 318 (181 P. 990, 186 P. 41). The plaintiff, after his appointment and qualification as trustee, could sue for damages to the property of the bankrupt estate occurring after adjudication and both before and after his qualification as trustee: Arnold v. Horrigan, 238 Fed. 39; Mueller v. Nugent, 184 U. S. 1 (22 S. Ct. 269, 46 L. Ed. 405); Goodnough v. Galloway, 48 Or. 239 (84 P. 1049).

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Cite This Page — Counsel Stack

Bluebook (online)
20 P.2d 439, 142 Or. 427, 1933 Ore. LEXIS 269, Counsel Stack Legal Research, https://law.counselstack.com/opinion/derby-v-newton-or-1933.