Link v. Boeshans

151 F.2d 322, 1945 U.S. App. LEXIS 3327
CourtCourt of Appeals for the Eighth Circuit
DecidedSeptember 24, 1945
DocketNa. 13063
StatusPublished
Cited by5 cases

This text of 151 F.2d 322 (Link v. Boeshans) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Link v. Boeshans, 151 F.2d 322, 1945 U.S. App. LEXIS 3327 (8th Cir. 1945).

Opinion

MILLER, District Judge.

The appellants are creditors of appellee and this is an appeal from an order of the district court approving and confirming orders of the conciliation commissioner, acting as referee, dated respectively March 11, May 22, June 5, July 11, and August 5, 1944, entered in a proceeding under Section 75, sub. s, of the Bankruptcy Act, 11 U.S.C.A. Section 203, sub. s.

The original petition for extension and compromise was filed by the appellee on January 21, 1944, and upon failing to obtain the required majority necessary to have the offer of extension and compromise accepted by the creditors and ap[323]*323proved by the court an amended petition was filed, and appellee was adjudged a bankrupt on April 20, 1944.

The order of March 11, 1944, authorized appellee to execute a lien upon crops to be grown in 1944 to secure the repayment of money borrowed for the planting, cultivating and harvesting of the crops.

The order of May 22, 1944, authorized the bankrupt to file and prosecute a suit in a State court against the sheriff of Mercer County, North Dakota, for the recovery of certain personal property, or its value, which the sheriff had seized under process from a State court.

The order of June 5, 1944, approved the appraisal, fixed rentals, set aside exemptions and allowed the bankrupt to retain possession of the property, and recites that the interest owned by the bankrupt in certain land “is a freehold estate as defined by Section 539 [5309] of the 1913 Compiled Laws and in my opinion as long as it is a freehold estate the debtor can claim a homestead exemption as to 160 acres and the bankrupt would have to pay rent on the other real estate.”

The testimony upon which the last mentioned order is based was heard on May 22, 1944. The bankrupt was present in person and by his attorney of record. Likewise, the appellants appeared by their attorney of record and introduced witnesses, and certain other creditors appeared by another attorney.

On July 6, 1944, the bankrupt filed an amended schedule, which was approved by the referee.

By the order of July 11, 1944, the referee set aside as exempt 160 acres of the land as the homestead of the bankrupt. Also, the claim of the bankrupt against the sheriff of Mercer County, North Dakota for $600 was set aside as an additional personal exemption.

The order further recites that the bankrupt had deposited $200 with the court, being the appraised value of the lease or interest of the bankrupt in all the real property. At the request of the bankrupt the court set a date for a hearing to determine the value of the interest owned by the bankrupt in the real property, exclusive of his homestead. The hearing, rather than a reappraisal of the interest of the bankrupt was ordered by the court under Section 75, sub. s(3), of the Act. 11 U.S.C.A. § 203, sub. s(3).

At this hearing the bankrupt appeared in person and by his attorney and appellants appeared by their attorney. The testimony of witnesses, including one of the appellants, as to the market value of the interest owned by the bankrupt in the land other than the homestead, was heard by the referee, and on August 5, 1944, the order fixing the value of the interest of the bankrupt in the land at $1,247 and directing that the bankrupt should be given 60 days from that date in which to pay into court the balance of $1,047 for the redemption of the land was entered.

The land involved, including the homestead, was owned formerly by Joseph Boeshans, who on June 19, 1939, conveyed the same to the children of Henry J. Boeshans, the bankrupt. The record reflects that the bankrupt had agreed to contribute to the support of Joseph Boeshans, and it was provided in the conveyance that the real estate should be possessed by the said Henry J. Boeshans, who should have the use of the land as long as he should live and after his death such use and possession should pass to his children. The agreement further provided that any of the children of the bankrupt upon arriving at their majority might receive the value of his or her share and interest in the property by either receiving the value at the time of majority or the same might be left to be divided and distributed after the death of the bankrupt, Henry J. Boeshans.

The interest of the bankrupt in the land was a chattel real. He had a diminishing possessory right to the land for life, depending upon the exercise by his children of their option to take possession of their interest upon reaching their majority.

On October 10, 1944, the appellants filed what they designated as a “Petition for Review and Exceptions and Objections to Orders” of the conciliation commissioner as acting referee.

Upon receipt of the petition by the referee, the record was certified to the District Judge who entered the order appealed from on December 28, 1944.

The appellants on oral argument contended that at the time the order of July 11, 1944, allowing a hearing on the petition of appellee for redemption and for fixing the value of the interest of appellee in the real [324]*324property was entered that there had been no appraisal as required by the Act.

The record reflects that on June 5, 1944, the conciliation commissioner after a hearing at which appellants appeared by their attorney and one of them testified, entered an order approving the appraisal, fixing the rental to be paid by appellee and permitting him to retain possession of the property. It was during this hearing that evidence was adduced showing the interest of the appellee in the real property, and after such interest had been definitely determined the conciliation commissioner, acting as referee, in the exercise of his discretion decided that the value of such interest could be determined more accurately by a hearing than by a reappraisal. Such action was in accordance with the plain provisions of Section 75, sub. s(3), of the Act, 11 U.S.C.A. § 203, sub. s(3).

The appellants also contend that the conciliation commissioner, acting as referee, in fixing the value of appellee’s interest in the real property at $1,247 flagrantly disregarded the evidence.

The value of this interest as shown by the testimony of the witnesses ranged from $500 to $3,000.

Value is a fact to be determined like any other question in dispute upon a consideration and weighing of evidence of all elements and factors affecting it. In this case the testimony covered a broad field, including topography and fertility of the land; its state of cultivation; its reasonable rental value; the kind of crops produced in the past and the nature and value of the crops that reasonably might be expected to be produced during the continuance of the interest and possession of the bankrupt; the kind and condition of the fences and improvements and the reasonable cost of necessary repairs to the improvements and replacements; the amount of the yearly taxes and other necessary expenses.

The findings of the conciliation commissioner, acting as referee, incorporated in the order disclose that he took into consideration all of these matters in determining the value of the interest owned by the bankrupt. He considered the opinions of the witnesses who testified that the interest was worth $3,000, but was not required to blindly accept that figure any more than he was required to accept the opinions that fixed the value at $500.

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151 F.2d 322, 1945 U.S. App. LEXIS 3327, Counsel Stack Legal Research, https://law.counselstack.com/opinion/link-v-boeshans-ca8-1945.