In the Matter of Orval Wyse, D/B/A Wyse Brothers Turkey Farm, Bankrupt. Archbold Seed & Grain Company v. Willard A. MacK Trustee in Bankruptcy

322 F.2d 798, 25 Ohio Op. 2d 291, 1963 U.S. App. LEXIS 4113
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 27, 1963
Docket15217
StatusPublished

This text of 322 F.2d 798 (In the Matter of Orval Wyse, D/B/A Wyse Brothers Turkey Farm, Bankrupt. Archbold Seed & Grain Company v. Willard A. MacK Trustee in Bankruptcy) 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
In the Matter of Orval Wyse, D/B/A Wyse Brothers Turkey Farm, Bankrupt. Archbold Seed & Grain Company v. Willard A. MacK Trustee in Bankruptcy, 322 F.2d 798, 25 Ohio Op. 2d 291, 1963 U.S. App. LEXIS 4113 (6th Cir. 1963).

Opinion

FOX, District Judge.

Between October 7, 1959, and December 17, 1959, the Receiver of the bankrupt, Mr. Wyse, pursuant to an order of the court, sold 100,000 turkeys for $376,100.34. This sum was subsequently turned over to the Trustee in Bankruptcy.

On February 8, 1960, an order was issued by the Bankruptcy Court to Archbold Seed and Grain Company (hereinafter referred to as “Archbold”), directing it to set up any claims it had to this fund, on or before February 19, 1960, or be forever barred from asserting its claim. Archbold did not set up any claim, and pursuant to the hearing held on February 19, at which the President of Archbold was present, an order was entered February 23, 1960, that Archbold had no claim or interest in the fund.

On March 2, 1960, Archbold filed a motion to vacate the order of February 23, 1960, and for leave to answer. This motion was overruled by an order dated May 17, 1960. Upon petition for review of this order, the same was approved and adopted by the District Court and affirmed on appeal by the Circuit Court of Appeals for the Sixth Circuit. In the Matter of Orval Wyse, 296 F.2d 214 (1961).

On December 15, 1961, Archbold filed a petition for a review of the Referee’s order of February 23, 1960, which had barred Archbold from asserting any interest in the fund held by the Trustee. This petition was dismissed by order entered March 27, 1962, and the present petition for review of that order was filed by Archbold on April 3, 1962.

On September 25, 1962, the District Court entered its order dismissing the petition filed April 3, 1962. Archbold appeals.

The appeal raises three issues:

(1) Has the issue of whether or not there existed a partnership between Archbold and Wyse been fully litigated as far as Archbold is concerned ?
(2) Was the petition for review filed December 15, 1961 timely ? within 11 U.S.C. § 67, sub. c, § 39, sub. c of the Bankruptcy Act?
(3) Was the failure of the appellant to file an answer at the hearing on February 19, 1960, excusable neglect so that the order of February 23, 1960 should be set aside and Arch-bold allowed to answer?

The answer to issue number one may dispose of the total appeal, since it is the sole objective of Archbold on this appeal to secure an opportunity to persuade the Referee that a partnership existed between Archbold and Wyse and that the fund in the control of the Trustee should be applied to the debts of the partnership and not the debts of Mr. Wyse individually.

To the extent that the fund is not applied to pay the claim of A. E. Staley Manufacturing Co. (hereinafter called “Staley”), appellant Archbold is liable to Staley under a note executed from Arch-bold to Staley.

At the March 18, 1960 hearing on the motion for leave to file an answer, the attorney for Archbold made the following statement:

“ * * * It was our thought or feeling, your Honor, that this motion did not raise any new factual issues, that it simply was putting on record the position of Archbold.
* * -* ■ * * *
“I did not think it would be necessary to burden this Court with an oral hearing on a motion of this character. It was our notion that this whole matter would just be allowed to pend, pending the determination of the rights of Staley, because the prayer for relief in the an *800 swer of course, goes to the merits of this whole controversy.
“It’s our feeling that this matter should be decided at the same time as the determination is made on the claim filed by Staley Manufacturing Company.
“It would be a rather waste of the Court’s time and the time of counsel to litigate all over again exactly the identical factual issues, the factual questions in this matter, as we have already had litigated in this connection with the claim made by Staley.” (Tr. pages 237-8)

Counsel stressed at this time that the answer sought to be filed raised no new factual issues; that the same issues of partnership between Archbold and Wyse were involved in the claim by Staley against the fund. Archbold at that time seemed satisfied that the partnership issue was properly litigated and that only Archbold’s position need be formally stated by the filing of an answer.

Archbold’s position was further clarified at the same hearing.

“Mr. Gosline (Attorney for the Trustee): Your Honor, it sounds as if we are getting on to the motion for leave to file, or the motion to vacate the order, really.
“The Court: Yes.
“Mr. Gosline: And I would like to .address a question to Mr. Spitzer (attorney for Archbold), if I may.
“The Court: You may, sir.
“Mr. Gosline: Are you planning to ■present any evidence in support of that?
“Mr. Spitzer: No.
“Mr. Gosline: Are you submit-
ting it or what ?
“Mr. Spitzer: Submitting it on •the record developed, the testimony .and the documents introduced in evidence at the hearing on February 25 and February 26 in this Court, plus the pleadings on file in this case.
“I thought I covered that, Mr. Gosline, that we were not requesting a separate factual determination, because there are no separate factual issues to try, Your Honor.
“This is simply a statement of Archbold’s position with i-egard to the matter that has been under examination, because of the application filed by A. E. Staley, that the entire fund be paid over to it as a creditor of the partnership. (Emphasis supplied)
“Mr. Gosline: Then you are asking that all the prior evidence be considered in support of your motion, without putting any of it back in evidence today?
“Mr. Spitzer: I am not quite sure I follow your point, Mr. Gosline. All I can say is repeat what I said, that Archbold is a party to these whole proceedings, and on the basis of the evidence that has been introduced already, Archbold wishes to state its position in the matter; namely, that the fund should be paid to Staley.
“This is not a separate proceeding. It isn’t a question of taking all the evidence in the other Hearing and putting it in this.
“This simply is a matter of Arch-bold appearing as a party in the proceeding and stating its position.
“We do not wish to introduce separate, additional evidence.
“Mr. Gosline: Well, Archbold didn’t introduce any evidence before.
“Mr. Spitzer: This is correct.
“Mr.

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322 F.2d 798, 25 Ohio Op. 2d 291, 1963 U.S. App. LEXIS 4113, Counsel Stack Legal Research, https://law.counselstack.com/opinion/in-the-matter-of-orval-wyse-dba-wyse-brothers-turkey-farm-bankrupt-ca6-1963.