McClyman v. Hamilton

180 F.2d 965, 1950 U.S. App. LEXIS 3534
CourtCourt of Appeals for the Ninth Circuit
DecidedMarch 28, 1950
Docket12183
StatusPublished
Cited by3 cases

This text of 180 F.2d 965 (McClyman v. Hamilton) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
McClyman v. Hamilton, 180 F.2d 965, 1950 U.S. App. LEXIS 3534 (9th Cir. 1950).

Opinion

STEPHENS, Circuit Judge.

The appellants, as creditors of the alleged bankrupts, filed their involuntary petition in bankruptcy to have declared bankrupt appellee Hamilton and the partnership known as Brunson & Bunch. The case is here on appeal from a judgment of the United States district court dismissing the petition as to Hamilton “both as a member of the partnership of Brunson & Bunch [holding he was not a partner] and individually.” •

It is alleged in the petition that Hamilton is a general partner of Brunson & Bunch; that Hamilton and the firm each are insolvent ; that the petitioners’ claims arose out of. loans to Hamilton and the partnership and are unsecured and fixed as to liability and liquidated as to amount; and that Hamilton and the partnership each had committed several specified acts of bankruptcy, several under 11 U.S.C.A. § 21, sub. a (2) and one under 11 U.S.C.A. § 21, sub. a (1).

Separate orders of general reference as to Hamilton individually and as to the partnership were issued. The partnership *967 failed to plead and was adjudged a bankrupt by default prior to the entry of the judgment , here appealed from. Hamilton “for himself alone and none other” responded to the petition by answer and controverted each of the above allegations. His demand for a jury trial caused the referee to refer the matter to the district court sitting in bankruptcy. Following a subsequent waiver of jury, the district court retained the matter for limited purposes stating at various times throughout the trial proceedings variations of the following: “All we are interested in is to find out or to determine whether there is an insolvency in the case and whether Mr. Hamilton is a member of the partnership that is insolvent. * * * if I make a finding that Mr. Hamilton is not a member of the partnership then the litigation ends (as to Hamilton), and if he is, then it goes back to the Referee in Bankruptcy for further proceedings * *

The district court found that appellants had failed to sustain their burden of showing that Hamilton was a general partner in such firm and that there was no evidence of acts of estoppel which would warrant the court to declare Hamilton to be a partner. The court also found that the evidence failed to show Hamilton’s individual insolvency and that appellants were not creditors of, nor did they have claims fixed as to liability and liquidated as to amount as against, Hamilton.

Appellants on this appeal contend that the district court erred in excluding certain evidence [going to Hamilton’s status as a partner], in making a certain finding [that Hamilton was not indebted to appellants], in directing the court reporter not to record certain statements of the court, and in so conducting itself as to prevent a fair trial.

As to LllC alleged improper exclusion of evidence, appellants have not complied with our Rule 20, the pertinent part of which we quote: “When the error alleged is to the admission or rejection of evidence the specification shall quote the grounds urged at the trial for the objection and the full substance of the evidence admitted or rejected, and refer to the page number in the printed or typewritten transcript where the same may be found.” Compare Muyres v. United States, 9 Cir., 1937, 89 F.2d 783; Century Indemnity Co. v. Nelson, 9 Cir., 1937, 90 F.2d 644; Sampsell v. Anches, 9 Cir., 1940, 108 F.2d 945; Chapman Bros. Co. v. Security-First National Bank, 9 Cir., 1940, 111 F.2d 86; Hemphill Schools v. Commissioner of Internal Revenue, 9 Cir., 1943, 137 F.2d 961. Appellants have chosen to quote in their brief some but apparently not all of the colloquy between court and counsel during the trial and have stated none of the evidence. It does not help matters to overlook these technical deficiencies for the designated part of the reporter’s transcript of the proceedings contains none of the evidence and hence nothing from which we can determine the merits of the assigned error.

In the circumstances we would be justified in accepting the trial court’s findings [including the finding which is the subject of appellants’ second contention] as correct unless there are reasons of some other nature for not doing so. See Bernards v. Johnson, 9 Cir., 1939, 103 F.2d 567; Dombrowski v. Beu, 9 Cir., 1940, 114 F.2d 91; Cole v. Home Owners’ Loan Corp., 9 Cir., 1942, 128 F.2d 803; Boyle v. United States, 9 Cir., 1945, 149 F.2d 201. Flowever, we have checked our conclusions, as will later appear in this opinion, with the entire reporter’s transcript.

It must be noted that the court early announced that evidence would be strictly limited to proof of Hamilton’s status and the firm’s solvency as mentioned above, and such announcement was adhered to throughout the proceedings. Notwithstanding, fact issues outside the scope of such issues were determined.

We hold that such fact determinations, to-wit, that Hamilton was not insolvent either at the time the alleged acts of bankruptcy were committed or at the time the instant petition was filed; "that Hamilton is not indebted to appellants or any of them; that appellants or any of them did not have claims fixed as to liability and liquidated as to amount as against *968 Hamilton; wefe improperly made in the circumstances obtaining here because such findings are not within the scope of the trial as delimited by the court. However, our conclusion does not mean that appellants suffered any prejudice whatsoever because of such findings: Upon their petition, the vital and initial issue as to Hamilton is whether he is a general partner in the firm of Brunson & Bunch. If he is not, the proceedings as to him must end. There is nothing in the Bankruptcy Act which authorizes, in involuntary proceedings, the joinder in a single petition of alleged bankrupts who are not related by actual partnership. ' See Hotel Halcyon Corporation v. Acme Supply Co., 5 Cir., 1929, 36 F.2d 353; Remington on Bankruptcy (4th ed.), Vol. 1, § 340, p. 460. And, the finding that there was no evidence of acts of estoppel which would warrant the court to declare Hamilton to be a partner cannot be relevant to any issue in the proceedings. See In re Kaplan, 7 Cir., 1916, 234 F. 866; In re C. F. Beckwith & Co., D.C.M.D.Pa.1904, 130 F. 475, 476; In re Pinson & Co., D.C.N.D. Ala.1910, 180 F. 787, 789; In re Ganaposki, D.C.M.D.Pa.1939, 27 F.Supp. 41, 42; Tatum v. Acadian Production Corp., D.C.E.D.La.1940, 35 F.Supp. 40, 45; and the cases cited therein.-

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Bluebook (online)
180 F.2d 965, 1950 U.S. App. LEXIS 3534, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mcclyman-v-hamilton-ca9-1950.