In re Prudhomme

24 F. Supp. 155, 1938 U.S. Dist. LEXIS 1884
CourtDistrict Court, W.D. Louisiana
DecidedApril 2, 1938
DocketNo. 5173
StatusPublished
Cited by2 cases

This text of 24 F. Supp. 155 (In re Prudhomme) is published on Counsel Stack Legal Research, covering District Court, W.D. Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In re Prudhomme, 24 F. Supp. 155, 1938 U.S. Dist. LEXIS 1884 (W.D. La. 1938).

Opinion

DAWKINS, District Judge.

The nature and circumstances of this case are fully and correctly stated in the [156]*156report of the Supervising Conciliation Commissioner, which is approved and adopted as the conclusion and finding of this court:

“This proceeding was instituted under Section 75 of the Bankruptcy Act as amended [11 U.S.C.A. § 203], on December 2, 1933. The proceeding was referred by the Court to Harper F. Willis, Conciliation Commissioner in and for the Parish of Natchitoches, Louisiana, for proceedings under Section 75. The applicant in the proceeding is admittedly a lawyer but alleged in his application that he was primarily engaged in farming operations and derived his principal source of income therefrom.
“The debtor scheduled assets consisting of 203 acres of farm property which was ' given a scheduled value of $15,160 and in addition thereto a law library of the scheduled value of $500. Proofs filed before the Conciliation Commissioner reflect an indebtedness of $5,231.11 to Federal Land Bank on February 3rd, 1934, and a debt of $10,000 due to the sisters of the bankrupt, Misses Emmerline, Eulalie and Lillian Prudhomme. The Commissioner received proofs on the two debts mentioned and in addition a proof of L. M. Peters for Clerk’s hire amounting to $150.
“By judgment of this court, dated June 20th, 1934, the claim of $10,000 of the said Misses Emmerline, Eulalie and Lillian Prudhomme, was held to be insufficiently proven and referred back to the Commissioner for further testimony and proof. The record does not disclose that such additional proof was ever offered to the Commissioner and so far as I am able to determine the claim was never allowed.
“Subsequently and on the 8th day of October, 1935, the debtor was adjudged bankrupt under Subsection (s) of Section 75 [11 U.S.C.A. § 203(s) ] and on February 15, 1936, a meeting was held before Harper F. Willis, Conciliation Commissioner, for the purpose of fixing the annual rental and a .memorandum of the fixing is part of the record but for convenience copied herein as follows:
“ ‘Memorandum for File.
“ ‘In re: E. St. Anne Prudhomme, Natchitoches Parish, Louisiana. Loan No. 47573.
“ ‘Rental fixed by agreement between Bank and E. S. Prudhomme, Attorney for E. St. Anne Prudhomme .on Saturday February 15, 1936, before Harper F. Willis, Conciliation Commissioner, at Natchitoches, La. on the following basis:

Acreage to be Average Yield

Crop Cultivated Per acre

Cotton 60 acres 2/5 bale

Corn 32 acres 12 bu.

Hay 4 acres 1-% ton.

Average

Total Average Val.

Yield Per Unit Av. Gr. Val. Rental

24 Bales $60.00 $1440.00 (*4 on

384 bu, .70 268.80 cotton

6 tons $10.00 60.00 and corn y2 on hay)

Rental:

$360.00’

67.20

30.00

$457.20

Total rent payable after harvest of 1936 crops.

“ ‘The above rental has not yet been confirmed by the District Court; also, the rental was fixed with reservation of the rights of the Bank to be heard on petition to dismiss the case which is fixed for February 28, 1936 at Natchitoches, La.

“ ‘W. W. Heard, Attorney.

“ ‘Approved: Harper F. Willis,

Conciliation Commissioner.’

“Due to the ambiguity of the foregoing statement of rentals,.the ambiguity being as to whether it was contemplated that a cash rental or a portion of the crop in kind be considered as rental, this matter was re-opened before Arthur C. Watson, successor to Harper F. Willis, as Conciliation Commissioner for Natchitoches Parish, and a rental of $457.20 was fixed for the year 1936 on a cash basis. The rental actually paid into the hands of the Commissioner for the year 1936 amounted to $119, and for the year 1937 it appears from the answer filed by the debtor in connection with the application to dismiss, same having been filed on February 2, -1938, that a total revenue was received by the debtor from the farm property in the sum of $164.31 though the debtor did not pay the amount into the hands of the Commissioner. To the contrary, he claims that he has made certain repairs on the farm property at a total cost of $185, none of which was authorized by the court. [157]*157From the record of the Conciliation Commissioner it appears that only $2.45 was paid into his hands by the debtor for the year 1937.

IN EE PEUDHOMME 24 F. Sapp. 155

“The testimony clearly shows that for the years 1936 and 1937 and for some years preceding that the debtor has obtained a minimum of $1,000 per annum from the practice of law. His own testimony is to the effect that he received between $1,000 and $1,500 per annum. During the period that his proceeding has been pending under Section 75 nothing has been paid to creditors or deposited in the hands of the Commissioner for distribution except the $2.45 for the year 1937 and the sum of $119 for the year 1936.

“Annexed to the supplemental application of Federal Land Bank to dismiss this proceeding filed herein on December 22, 1937, is a certified copy of a contract entered into between the debtor and one Henry Johnson whereunder the debtor agreed to sell to the said Henry Johnson all of the farm property for a recited consideration of $10,150. It was agreed that this sum should be paid in equal annual installments of $600, beginning October 1st, 1938 through the year 1947, and that when the sum of $6,000 shall have been paid a deed would be executed to the proposed purchaser. Although the debtor is a practicing attorney at law and has represented numerous debtors applying for relief under Section 75 of the Bankruptcy Act in the Parish of Natchitoches, he obtained no authority whatever from the court to enter into a contract to sell the property.

“The application of the Federal Land Bank to dismiss this proceeding is on the following basis:

“(1). That the debtor is not a farmer within the meaning of Section 75.
“(2). That the debtor has failed to pay the annual rental as provided under Section 75.
“(3). That there is no possibility of the debtor rehabilitating himself.
“(4). That the debtor has not conducted his proceedings in good faith.
“(5). That by entering into the contract to sell the property he has abandoned the right to proceed under Section 75.

“Federal Land Bank prays for disclaimer of the property mortgaged to it and dismissal of the proceeding. Trial of the application was held before me on February 28, 1936. At that time considerable evidence was taken for the purpose of showing that the debtor has failed to comply with an order of this Court requiring accounting of crops harvested by him for the crop year 1935. I am unable to say that the debtor did not make an accounting in compliance with the order for the reason that Harper Willis, then Conciliation Commissioner, was at that time away from his office in Natchitoches, Louisiana, and from the mouth of the debtor, it would appear that an accounting was filed with Mr. Willis and the presumption was that it was left in his office.

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Related

In re McGrew
126 F.2d 676 (Third Circuit, 1942)
In re Peters
28 F. Supp. 714 (W.D. Louisiana, 1938)

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Bluebook (online)
24 F. Supp. 155, 1938 U.S. Dist. LEXIS 1884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-re-prudhomme-lawd-1938.