Peterson v. Baker

168 F.2d 684, 1948 U.S. App. LEXIS 3012
CourtCourt of Appeals for the Eighth Circuit
DecidedJune 9, 1948
DocketNo. 13690
StatusPublished
Cited by1 cases

This text of 168 F.2d 684 (Peterson v. Baker) 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
Peterson v. Baker, 168 F.2d 684, 1948 U.S. App. LEXIS 3012 (8th Cir. 1948).

Opinion

COLLET, Circuit Judge.

This appeal is from an order of the District Court dismissing a proceeding brought by Farmer-Debtors under the Frazier-Lemke Act. 11 U.S.C.A. 203. A statement of the proceedings prior to the present appeal is necessary to an understanding of the issues now before this court.

Gilbert Peterson'and Mary Peterson were the owners of two tracts of land, one comprising 120 acres, the other 80 acres. On February 28, 1929, they placed a mortgage on the 80 to secure a note for $7500.00 to the Federal Land Bank of Omaha. Prior to February, 1939, the John Hancock Mutual Life Insurance Co. had instituted foreclosure proceedings on a mortgage it held on the 120-acre tract. On February 27, 1939, Mary Peterson as the owner of both tracts filed a petition under Sec. 75, subs, a to r, of the Frazier-Lemke Act seeking a composition with her creditors. Both tracts were listed in the petition. Failing to secure a composition with her creditors, she filed an amended petition in bankruptcy under Sec. 75, sub. s, praying that she be adjudged a bankrupt, that her property be appraised, that her exemptions be set aside to her, that she be allowed to retain possession and that all proceeding for the enforcement of the mortgages be stayed. The amended petition was referred to the Conciliation Commissioner who made an order adjudging her a bankrupt, setting aside her exemptions and providing that a hearing be had at which creditors might appear and show cause why an order should not be entered staying all proceedings and continuing her in possession. The John Hancock Mutual Life Insurance Co. filed objections to the granting of a stay of proceedings as to the 120-acre tract, asserting among other things that the 120-acre tract should be rejected from the proceedings on the ground that the indebtedness was greatly in excess of the value of the land and hence its inclusion in the proceedings would only be a burdensome asset in the administration of the bankrupt estate. The Conciliation Commissioner sustained this objection, the District Court affirmed, apparently following this court’s decisions in Cowherd v. Phoenix Joint Stock Land Bank, 8 Cir., 99 F.2d 225, and Bender v. Federal Farm Mortgage Corporation, 8 Cir., 99 F.2d 252. Those cases having been reversed by the Supreme Court in John Hancock Mutual Life Ins. Co. v. Bartels, 308 U.S. 180, 60 S.Ct. 221, 84 L.Ed. 176, upon appeal from the District Court’s order, we reversed. Peterson v. John Hancock Mut. Life Ins. Co., 8 Cir., 116 F.2d 148. Thereafter, on January 13, 1941, the stay order was entered putting debtor in possession of both tracts for a period of three years from March 1, 1941, and fixing the rents. The first semi-annual rental payment was made. All of the second was not. The Conciliation Commissioner ordered liquidation of the assets of the estate and the termination of the stay order. The District Court affirmed, specifically finding that the failure of the debtor to pay the rent was contumacious, hut allowing her a reasonable time to redeem the property by paying the appraised value thereof. On appeal this court reversed. Peterson v. John Hancock Mut. Life Ins. Co., 8 Cir., 137 F.2d 396. On October 4, 1943, the Conciliation Commissioner fixed the rents on the 120-acre tract for the years 1942 and 1943, gave debt- or credit on the 1942 rent for $150.00 she had paid some time during 1942, and ordered her to pay the remainder of the 1942 rent within 30 days. On appeal to the District Court, that court affirmed. On her appeal from the District Court, this court affirmed. Peterson v. John Hancock Mut. Life Ins. Co., 8 Cir., 143 F.2d 869.

While the present record is aggravatingly deficient in many particulars, it may be gleaned therefrom that the debtor paid no rent on either tract after 1942. On January 25, 1944, the debtor made application for a reappraisal of her land including the 80-acre tract. A reappraisal was made and confirmed, and an order entered giving her [686]*686time within which to redeem. Some time subsequent to January, 1944, and prior to July 27, 1944, a Trustee was appointed to take charge of the estate. On the latter date an order was entered authorizing and directing the Trustee to sell the real estate. The debtor filed a petition for review of the order. On September 12, 1944, the District Court approved the order of sale and on September 20,1944, the debtor served notice of appeal from the order of confirmation. On October 17, 1944, the District Court set aside its order of September 12 directing the sale of the real estate by the Trustee. It appears from a reference thereto in an order of the Conciliation Commissioner that the 'District Court entered an order on December 15, 1944, to the same effect as the order of September 12, 1944, which, as stated, directed the sale of the real estate by the Trustee, and that the debt- or appealed from the December 15, 1944, order. It does not appear that anything was done to carry out the December 15th order until March 1, 1945, when the Conciliation Commissioner made an order designed to put the Trustee in possession of all the debtor’s real estate. On the same date, March 1, 1945,-the Federal Land Bank of Omaha filed an application with the Conciliation Commissioner to be allowed to proceed with the foreclosure of its mortgage on the 80-acre tract. It does not appear that any -action was taken on this application. On April 27, 1945, the District Court made an order directing the United States Marshal to put the Trustee in possession of both tracts. It appears that in the order of April 27, 1945, the District Court stated that “ * * * the Bankrupt has since the year 1942 neglected and refused to pay any rentals and claims she is not required under the law to pay any rentals and that she will not pay rentals and will not surrender the real estate * * * that the Bankrupt has refused to obey the Orders of the Commissioner to pay rents due. On the contrary, she has sold the crops which were a part of the rentals and commingled the proceeds with her own money and has converted such proceeds from the sale of the crops, which she should have paid to the Commissioner, for her own use and purpose and refused to pay the same to the Commissioner.”

On May 14, 1945, Mary Peterson, the debtor, her husband Gilbert Peterson, the Federal Land Bank of Omaha, the John Hancock Mutual Life Insurance Co., and the Trustee appointed to sell the real estate all joined in a stipulation of settlement of the entire bankruptcy proceedings. By that stipulation it was agreed: that the Federal Land Bank of Omaha and the John Hancock Mutual Life Insurance Co. were the only creditors of the debtor; that “all parties interested in the * * * cause [were] desirous of settling same without further litigation and expense”; that debtor and her husband Gilbert Peterson would execute a general warranty deed conveying the 120-acre tract to the John Hancock Mutual Life Insurance Co. and give immediate possession thereof; that the Trustee was to pay to the John Hancock Mutual Life Insurance Co.

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168 F.2d 684, 1948 U.S. App. LEXIS 3012, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peterson-v-baker-ca8-1948.