In re Fuetl

247 F. 829, 1917 U.S. Dist. LEXIS 883
District Court, D. Connecticut·Decided November 30, 1917·No. No. 4036·Published·Cited by 2 cases

Opinion

THOMAS, District Judge.

This matter is now before the court upon the petition of Philip Weinemann, a creditor, for a review of the special master’s decision denying Weinemann’s claim of a lien upon and first preference of payment out of the proceeds of the sale of a certain liquor license, which was issued -to the bankrupt by the. county commissioners for Middlesex county on Novembei 1, 1915.

Under the statutes of Connecticut, the license issued was the renewal of a former license, and was sold by order of the referee in bankruptcy free from the petitioner’s claimed attachment lien, as well as [830] the claimed attachment-lien of the Connecticut Breweries Company, a Connecticut corporation located at Bridgeport, in Fairfield county.

The facts disclosed by the record and admitted by all parties show that in April, 1915, the bankrupt executed and delivered to Weinemann two promissory notes, one for $1,000, made payable on demand, and the other for $2,000, made payable on May 1, 1915; both bearing interest. No part of the principal and interest due on the first note was paid, and only $300 on the principal of the second note, leaving due to the claimant on the two notes the sum of $2,700, with interest.

In order to recover the balance due on said notes, the petitioner, by mesne process duly issued on the 27th of July, -1915,. brought an action at law, returnable to the superior court for Middlesex county, on the first Tuesday of September, 1915; and on the 29th day of July, 1915, the officer serving the process duly made attachment of the original license under which the bankrupt was then conducting a saloon business. No judgment was ever obtained, and the case was pending at the time of bankruptcy on the docket of the superior court.

By process dated and issued September 25, 1915, the Connecticut Breweries Company brought an action at law against the bankrupt, returnable to the superior court for Fairfield county on the'first Tuesday of November, 1915, to recover the balance due on a certain promissory note which he had executed in its favor under date»of March 12, 1915, and on said September 25, 1915, caused an attachment of the original liquor license to be made to secure payment of any judgment which might be rendered in its favor in said action. '

On June 9, 1916, the company obtained a judgment in said cause for $2,936.36 damages and $34.47 costs, and on June 12, 1916, execution thereon was duly issued and placed in the hands of an officer authorized to make service, who forthwith levied upon the stock and fixtures of the bankrupt’s business, and retained control and possession thereof until directed by the referee in bankruptcy to’ surrender the same to the bankrupt’s trustee.' On July 7, 1916, Fuetl, on his own petition, was duly adjudicated a bankrupt in this court, and subsequent thereto one James J. Fitzpatrick was appointed trustee of his estate.

Upon the order of the referee in bankruptcy, the said license, together with the stock and fixtures of Fuetl’s store, were sold by the trustee, free and clear of all liens or claims of lien of both the petitioner and of the said the Connecticut Breweries Company, at public auction for $3,900, which was more than sufficient to pay the judgment of the Connecticut Breweries Company, with interest.

After the sale of - said license, stock, and fixtures, the company brought its petition to this court, wherein it prayed that the court order all parties having any interest in the matter to appear at some suitable time and place, then and there to show cause why an order should not be "issued by this court directing the trustee to turn over to it, in satisfaction of its judgment, the amount of said judgment, with interest and the costs of execution, on the ground that its attachment lien on said license had existed for a longer period than four months prior to Fuetl’s adjudication in bankruptcy, and because it was the. first valid lien on said license.

[831] The referee in bankruptcy for Middlesex county feeling himself disqualified in the premises, this court appointed Edward M. Yeomans, Esq., referee in bankruptcy for Hartford county, special master to hear and determine the questions presented by said petitioner, and, after due notice and hearing, the special master reported in favor of the allowance of the claim of the Connecticut Breweries Company and against the claimed right of lien of Weinemann.

[1] The controlling question here relates wholly to the purpose and effect of section 2734 of the General Statutes of Connecticut, as finally amended by chapter 36 of the Public Acts of 1915, which amendment took effect on August 1, 1915. The answer to this question will dispose of the incidental question as to' whether Weinemann’s attachment of the license carried with it a valid attachment of the renewal license.

As the law stood before this amendment, all attached liquor licenses were held to respond to execution for the same period of time as was provided in cases of attachment of personal property, and the attachment lien was continued after execution had issued, without the certificate of license being removed from the premises in which it was when attached, until the time the attached license was sold under the execution. All licenses thus sold were also equally valid in the hands of a purchaser at such a sale for the whole of the unexpired term for which the license was originally granted, in the same way as if in the hands of the original licensee, though before such a purchaser could avail himself of the benefit of such a license he must have first complied with all the requirements of law relative to the procuring of an original license from the county commissioners.

The amendment of 1915 is as follows:

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In re Fuetl, 247 F. 829, 1917 U.S. Dist. LEXIS 883 (D. Conn. 1917).

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