In re Johnston

13 F. Cas. 876, 8 Ben. 191
District Court, S.D. New York·Decided July 15, 1875·No. Case No. 7,421·Published·Cited by 1 cases

Opinion

BLATCHFOED, District Judge.

In this case, which is one in involuntary bankruptcy, a provisional warrant was issued to the marshal on the 21st of December, 1874. On the same day one Newcome was deputed by the marshal to execute the warrant, and took possession thereunder of the property of the bankrupts contained in their stores, being the first floors and basements of two buildings. and the second floor of one of those buildings. At the time Newcome took possession of such property, it consisted’ of a large stock of merchandise, being hats, caps, furs, gloves, umbrellas, parasols, travelling bags, millinery goods, &c., and the fixtures and furniture of the stores, and $79.S1 in cash. The cost of the merchandise was said to be 870,000. The two buildings were occupied in part by other tenants, whose apartments were separated from the apartments of the bankrupts by a board partition, which extended about three-quarters of the distance from the floor to the ceiling of said apartments. .Said stores were also accessible by doors and windows opening upon two streets. Newcome. on the day he so took possession of the property, placed one Poinier in charge of it, to assist him in watching and taking care of it. . Poinier remained in charge of it. with Newcome, until the 19th of February, 1S75. During all that time Poinier faithfully discharged the duty required of him. After taking possession of the property, Newcome employed Poinier and three persons named West, Butler and Draper, to assist him in taking an inventory of the property. New-come and those four persons were so employed on nine days in December and January, Newcome and Poinier being so employed for ten hours on each of said nine days, West for eight hours on each of said nine days, and Butler and Draper for not less than six hours, on an average, on each of said nine days. In addition, Newcome was at the stores of the bankrupts on every day, except eight days, until the 13th of February, while the property was in his possession, including Christmas and Sundays. On each and all of such days, including Christmas and Sundays, Newcome was actually and necessarily employed in giving his personal attention to the proper care of the property of the bankrupts, for two hours of each day. On the 13th of February, Newcome, with the assistance of Poinier, commenced to turn over the property to the assignee in bankruptcy, and to assist the assignee in verifying the inventory of it which Newcome had taken, and was so employed for six days, on each of which Newcome and Poinier were actually and necessarily employed for ten hours. The inventory contained 75 folios, and a copy of it was furnished to the assignee. While the property was in the custody of Newcome, he received various cheques and drafts representing money due to the estate of the bankrupts, which were collected-by the marshal, to the amount of $6,600, and which money was afterwards turned over to the as-signee.

The affairs of the bankrupt estate having been settled, and the property having been returned by the assignee to the bankrupt Johnston, subject to the payment by him to the marshal of the fees of the marshal for his services in the matter, a bill of such fees has been taxed by the clerk, under a special order. Each party appeals.

Item 1. The clerk disallowed a charge for 61 days’ services of Newcome in taking care of the property, from December 21st to February 19th, at $2.50 per day — $152.50. The objections taken to it were, that it was not warranted by the fee bill in force at the time of the taxation, Maj- 28th, 1S75, and that it was, in fact, an item for taking an inventory. The clerk sustained the objections and the marshal appeals. The marshal contended, before the clerk, that the bill should be taxed under the provisions of law and the rules in force at the times the several services were rendered, all of them having been rendered prior to the 12th of April, 1875, when the new general orders in bankruptcy were adopted. For Johnston, it was contended, before the clerk, that the bill should be taxed entirely under the provisions of rule 30 of the new general orders. The clerk ruled that the proceedings in bankruptcy were still pending, and that, therefore, the taxation must be controlled by the provisions of law, and the general orders, in force at the time of the taxation.

Item 2. The bill charged $152.50 for like services of Poinier with those charged for Newcome in item 1. The clerk allowed $115 [878]*878of the item, and disallowed 537.50, such dis-allowance being for 15 days’ services, at 53.50 per day, and being based on the ground that such services were included in items 7 and 8 for taking inventory and verifying inventory. Both parties appeal. The grounds of objection taken to the allowance of any part of the item were those taken to item 1, and, also, that the services were not necessary, and that Poinier rendered no services as keeper.

Item 3. The clerk disallowed a charge of 520 for the services of West, one of 510 for the services of Butler, and one of 510 for the services of Draper. The marshal appeals. The grounds of objection taken to the allowance of any part of this item were those taken above; and, also, that the services were included in the item for taking inventory.

Item 4. The clerk disallowed a charge of 51,100 for custody of property, — being 2% per cent on 55,000. 5135; and 1 Yz per cent on 565,000, 5975. The marshal appeals. The ground of objection taken to the allowance of any part of this item was, that it was not authorized by the new general orders.

Item 5. The clerk allowed 5160 as commissions on money received, being 56,000. as follows: 51,000, at 5 per cent., 550; .54,000, at 2y-2 per cent., 5100; 51.600, at 1 per cent., 510. Johnston appeals. The ground of objection taken to this allowance was, that the charge was not authorized by the law, or by the new general orders.

Item 6. The clerk disallowed a charge of 5352.50, as commissions on the value of the property, at 570.000, as follows: 5500. at 1 per cent., 85; 869,500, at % per cent., 5347.50. “The marshal appeals. The objection to this item was a general one.

Item 7. The clerk allowed 5360 for taking inventory, being 360 hours, at 51 per hour, .lohnston appeals. The ground of objection taken to this item was, that it was subject to a deduction of the amount before allowed to Poinier. The clerk ruled that the time of Poinier included in this item was deducted from his allowance.

Item 8. The clerk allowed 5120 for verifying inventory with assignee, being for 120 hours, at 81 per hour. Johnston appeals. The objection taken to this item was, that it was not provided for by the law or the new general orders. The marshal explained that the item was a more full specification of the personal attention of the marshal in taking care of the property. He referred, probably, to item 9.

Item 9. The clerk allowed 860 for personal attention, for 60 hours, at 81 per hour. Johnston appeals. The objection taken to this item was, that no personal attention had been proved, other than what had been allowed for. The only other allowance for personal attention is what is embraced in some one or more of the foregoing items.

Item 10. The clerk allowed 87.30 for copy of inventory, being for 75 folios, at 10 cents per folio. Johnston appeals. Iso ground of objection to this item was stated.

Item 11. The clerk allowed 84.S2, being 2 per cent, commission on 5241 allowed for disbursements. Johnston appeals. No ground of objection to this item was stated.

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In re Johnston, 13 F. Cas. 876, 8 Ben. 191 (S.D.N.Y. 1875).

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