Hays v. Wagner

150 F. 533, 15 Ohio F. Dec. 542, 1907 U.S. App. LEXIS 4114
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 11, 1907
DocketNo. 1,542
StatusPublished
Cited by3 cases

This text of 150 F. 533 (Hays v. Wagner) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Hays v. Wagner, 150 F. 533, 15 Ohio F. Dec. 542, 1907 U.S. App. LEXIS 4114 (6th Cir. 1907).

Opinion

RICHARDS, Circuit Judge.

This is an appeal from an order made December 26, 1905, adjudicating the appellant a bankrupt. The case came here first an a transcript containing an entry of adjudication of; the date of July 14, 1905. This transcript was returned with a writ of certiorari, suggesting a diminution of the-record and directing its, correction and return. When the case reached the lower court, the appellant (respondent below) made a motion for a nunc pro tunc entry setting aside the entry of adjudication of July 14, 1905, and entering, such order and judgment as of the date of December 26, 1905, when the same was made. This motion was granted, the nunc pro tunc order prayed for made, and, at the same time, on motion of the petitioners below, an additional nunc pro tunc entry was made, as follows:

“It appearing to the court that, since the filing of the petition herein, one of said petitioners, to .wit, Harry G. Wagner, has been adjudged a bankrupt, and J. D. Barnes, of Sidney, Ohio, has been duly appointed as his trustee in bankruptcy, and that the bankrupt court has ordered and directed that said J. D. Barnes, as such trustee, come into this case, and prosecute the same, it is therefore ordered by the court that the said J. D. Barnes, trustee in bankruptcy of Harry G. Wagner, be, and is. hereby substituted as petitioning creditor for and instead of said Harry G. Wagner, but that this action may proceed under the same title as heretofore. (To which order of the court the said Hays excepts.)
“It further appearing to the court that there was filed in this case, on or about the 31st day of January, 1900, a certain paper purporting to be all the evidence taken and considered by the court, upon the hearing of this cause, but that the same did not so contain all of said evidence, and was filed without the authority of the court. It is therefore ordered and adjudged by the court that said alleged statement of evidence be, and is, stricken from the record and files of this ease, and that another and complete statement, which has been agreed to between the parties and approved by the court, be substituted therefor and ordered filed as of the said date.
“Tayler, J.
“May 28. 1906.”

The complete statement of evidence substituted in accordance with this order reads as follows;

“At the hearing of this cause before Judge Tayler, counsel for defendant admitted in open court that the answer of defendant, ‘denying that Harry G. Wagner had a provable claim,’ related solely to the fact that he (Wagner) had been adjudged a bankrupt since the petition in this cause was filed, and: while he (Wagner) did have the claim, as set forth in the petition at the timé said petition was filed, his right and ownership therein had all passed to his trustee in bankruptcy. Thereupon counsel for petitioners admitted the bankruptcy alleged, and that J. D. Barnes, of Sidney, Ohio, is his trustee in bankruptcy, and said J. D. Barnes as siich trustee was thereafter, upon his own application made in pursuance of the order of the bankrupt court, by order of this court, substituted as petitioning creditor as and for said Harry G. Wagner. On the issue joined on the intervening petition of George S. Haydock, trustee of the Decatur Buggy Company, the president of said company, Harry G. Blwood, testified as follows, to wit; O. L. Hays and Edward Fliekinger kpew all about the financial condition of the Decatur Buggy Company, and were both liable upon consideration of its paper, and suggested to me "a plan to unload the indebtedness, upon other parties, and Hays suggested that we do so by increasing the stock from sixty thousand dollars ($60,000) to one hundred thousand- dollars ($100,000), then bond the plant for one hundred thoil-sand dollars ($.100.000), and he (Hays) could sell the bonds and pay off the debts upon which he was liable; and thereupon, at his request, I took the necessary steps to authorize the increase, and did procure such authority, and then called a meeting of the stockholders, which O. L. Hays and Edward Flick-inger attended, at which time they each and myself subscribed ten thousand [535]*535dollars ($10,000) to the increase of the capital stock of said the Decatur Buggy Company, but O. L. Hays was not able to place the bonds, and the scheme failed, and O. L. Hays never paid any part of said subscription. That O. L. Hays was in no way deceived, or induced by me or any other officer, of the Decatur Buggy Company, to make said subscription. He knew the true, condition of the company, and this was his scheme, to get out from under the paper of the company that he was personally liable upon. That said the,Decatur Buggy Company is now bankrupt, and its total assets are less lhan $100,000, and its liabilities are more than $500,000. That George S, Haydock is trustee in bankruptcy of said company. This was all the evidence offered by the petitioners. The foregoing are all the facts or evidence which were before the court when the said O. D. Ilays was adjudged bankrupt.”

The appellant objects to the additional nunc pro tunc entry thus made upon motion oí the petitioners, insisting the court below could find no authority in the writ for such action. We think, if it was necessary, in order to show just wliat was done on December 26, 1905, when the order of adjudication was made, to make this additional nunc pro tunc entry, the court was warranted in doing so, and at the same time it had a right to correct the record by striking from it the paper purporting to contain all the evidence taken at the time of the adjudication, which was filed without its authority, and inserting a complete statement thereof. The writ directed the court below to correct and complete the record, and we must accept the record as it now stands as correct and complete.

The appellant contends that, in view of his' answer alleging his creditors numbered more than 12, three or more having provable claims must have joined in the petition, and it clearly appears there were not that number. Three alleged creditors joined in the petition, Harry G. Wagner, the First National Bank of Vandalia, Ill., and the Hayden-Clinton National Bank, of Columbus, Ohio. Subsequently, by an intervening petition, George S. Haydock, trustee of the Decatur Buggy Company, joined in the application. Wagner’s claim was based on a note on which Hays was indorser. The claim of the First National Bank of Vandalia, Ill., was of a similar nature. That of the Hayden-Clinton National Bank, of Columbus, Ohio, was on a note of which Hays was maker. While the claim of Haydock, trustee, was founded upon an alleged subscription to the capital stock of the Decatur Buggy Company.

It is contended that Wagner did not have a provable claim, because he became a bankrupt on January 3, 1905, when he ceased to have any claim. We think the substitution of his trustee cured this objection.

The claim of the First National Bank of Vandalia, Ill., is thus stated in the petition:

“The said Otho D. Hays is indebted to your said petitioner, the First National Bank of Vandalia, Ill., in the sum of $847.72, on a certain promissory note of which the following is a copy, with the indorsements thereon, viz.:
“ ‘$847.72. Gallon, O., Feb. 5tlx, 1904.
“‘Four months after date we promise to pay to the order of The First National Bank, Vandalia, Ill., eight hundred forty-seven 72-100 dollars at Citizens’ National Bank.
“ ‘Value received.

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Bluebook (online)
150 F. 533, 15 Ohio F. Dec. 542, 1907 U.S. App. LEXIS 4114, Counsel Stack Legal Research, https://law.counselstack.com/opinion/hays-v-wagner-ca6-1907.