Merit Clothing Company v. Dave L. Madray

Fifth Circuit

Merit Clothing Company v. Dave L. Madray

295 F.2d 429, 1961 U.S. App. LEXIS 3384

CourtCourt of Appeals for the Fifth Circuit

DecidedOctober 24, 1961

Docket19091

StatusPublished

This text of 295 F.2d 429 (Merit Clothing Company v. Dave L. Madray) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Merit Clothing Company v. Dave L. Madray, 295 F.2d 429, 1961 U.S. App. LEXIS 3384 (5th Cir. 1961).

Pincite

Opinion

PER CURIAM.

Over the objections of another creditor (the appellant here), the Referee, sustained thereafter by the District Court, allowed the filing of a proof of claim by an accommodation indorser on the bankrupt’s note payable to the principal creditor (a bank). The note was paid off by the indorser subsequent to the filing of the petition for bankruptcy. No proof of claim had been, or ever was, filed by the principal creditor. By a timely amendment supported by a detailed affidavit of the principal creditor, it was shown that on payment the note was thereupon assigned so that the indorser became subrogated to the rights of the principal creditor. This satisfied General Order 21(3) which permits such post-bankruptcy assignee to file proof of claim in his own name when it is supported by affidavit of the assignor. 3 Collier, Bankruptcy §§ 57.06, 57.11(1956).

Affirmed.

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PER CURIAM.

Over the objections of another creditor (the appellant here), the Referee, sustained thereafter by the District Court, allowed the filing of a proof of claim by an accommodation indorser on the bankrupt’s note payable to the principal creditor (a bank). The note was paid off by the indorser subsequent to the filing of the petition for bankruptcy. No proof of claim had been, or ever was, filed by the principal creditor. By a timely amendment supported by a detailed affidavit of the principal creditor, it was shown that on payment the note was thereupon assigned so that the indorser became subrogated to the rights of the principal creditor. This satisfied General Order 21(3) which permits such post-bankruptcy assignee to file proof of claim in his own name when it is supported by affidavit of the assignor. 3 Collier, Bankruptcy §§ 57.06, 57.11(1956).

Affirmed.

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Bluebook (online)

295 F.2d 429, 1961 U.S. App. LEXIS 3384, Counsel Stack Legal Research, https://law.counselstack.com/opinion/merit-clothing-company-v-dave-l-madray-ca5-1961.