Royston v. Weis

112 F. 962, 50 C.C.A. 638, 1902 U.S. App. LEXIS 3914
CourtCourt of Appeals for the Fifth Circuit
DecidedJanuary 28, 1902
DocketNo. 1,062
StatusPublished

This text of 112 F. 962 (Royston v. Weis) 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
Royston v. Weis, 112 F. 962, 50 C.C.A. 638, 1902 U.S. App. LEXIS 3914 (5th Cir. 1902).

Opinion

PER CURIAM.

In 1891 the firm of Weis Bros., composed of Robert Weis and Albert Weis, merchants in Galveston, Tex., failed in business. The failure was followed with an assignment in favor of creditors under the Texas statutes, which assignment was in due course administered, and the assets of Weis Bros, consumed, and the affairs of the partnership more or less liquidated and settled, in December, 1899, Albert Weis petitioned individually, and for himself alone, to be adjudged a bankrupt. The facts in question in the pending case were shown by the report of the referee as follows :

“At tlie first, meeting- of tlie creditors of said Albert Weis, bankrupt, bold on December 30th, 1800, tlie bankrupt was duly sworn by the referee, and examined by .Judge Geo. E. Mann, attorney for creditors. The schedule of the bankrupt shows that all property owned by him when the petition was filed is exempt under the laws of Texas, except claims due the < Id firm of Weis Bros., composed of the bankrupt and his brother, Robert Weis, which are estimated at the nominal sum of $300,000, but are shown by the schedule to he barred by limitation, and worthless. On January 5th, 1000, a contest of the schedules was filed by Judge Jlaim, as attorney for several creditors, whose claims "were duly proved on January 20th. January 8th the bankrupt filed his petition for discharge, and the hearing was set for January 2!)th, when the creditors appeared by their attorney, and gave notice of opposition to the discharge. The creditors were given until February 12th to file their specifications. February 5th tlie creditors requested of the referee an examination of the bankrupt, which was overruled, because the bankrupt had been fully examined at the first meeting, and could he again examined on the hearing of the opposition to the discharge. February 10th the specifications in opposition to tlie discharge were filed, and on February 12th the bankrupt filed his answer thereto. February 12th the creditors demanded a .jury, which demand was overruled, and at the request of the creditors’ attorney the question was certified to his honor, Judge Bryant, who also overruled tlie request, holding that a jury trial of the grounds of opposition to the discharge was not allowed by the bankrupt law. February 22d was filed by the creditors a request of the referee to rule on the issues of law presented in the specifications of opposition to the discharge, and asking that Robert Weis, a resident of Galveston, and a member of tlie old firm of Weis Bros., be cited tt> appear as a party. The referee overruled (his request, holding that whether Robert Weis was a necessary party could not he determined until it was ascertained whether there were any assets of Weis Bros., and that all questions of law involved would properly come up 011 the hearing of the opposition to the discharge. The hearing was set for April l(ith, and the parties in interest duly notified. April 7th the creditors filed exceptions to a hearing by the referee under the orders of the judge, because the judge alone could hear the opposition, and because a writ of error from the order of the judge refusing a jury trial was pending. These exceptions were overruled by the referee, and the evidence was heard on April 16th and taken down by a stenographer, and has been duly filed. Having heard the evidence and argument of counsel, the referee overruled all the grounds of opposition. During the progress and at the close of the hearing, the attorney for the creditors asked for an order requiring the bankrupt to jiroduce the hooks of Weis Bros., and to make Robert Weis a party to the bankruptcy proceeding. In this connection the fact is stated that the bankrupt’s schedule B, after giving the exempt property, states as [964]*964follows: ’ ‘Open- accounts, promissory"notes, accepted-drafts, Judgments, ■ as appear in the commercial hooks of Weis Bros., amounting to the sum of about $300,000, as will more fully appear in said commercial hooks, being for goods sold to the several parties by the firm of Weis Bros., the said claims being barred by limitation, and worthless.’ The books referred to have never been filed or produced. The request to require the bankrupt to produce the books was refuséd, because the testimony showed that the bankrupt did not have the hooks in his possession, and that it was at least uncertain whether the books were in Galveston, or could be produced, and, further, because it was clearly shown that all the debts due the old firm of Weis Bros., which failed in- 1891, were barred and worthless, so that the books, if ptoduced, would not be material evidence. The request to make Bobert Weis a party was refused, because the evidence showed that the partnership of Weis Bros, had no assets, and, being without assets, it was not essential to the discharge of Albert Weis that the other member of the partnership should be a party in bankruptcy. Had Weis Bros, any assets to administer, then it would be proper for the partnership, or all members of it, to be brought into the proceeding. Here the partnership had been dissolved about eight years prior to the filing of the petition in bankruptcy, and the evidence showed that it is without assets. The bankrupt, under section 14 of the bankrupt law, is entitled to a discharge, unless he has com•mitted an offense punishable by imprisonment, or, with fraudulent intent to conceal his true financial condition, and in contemplation of bankruptcy, has destroyed, concealed, or failed to keep books of account or records from which his true -condition might be ascertained; and the opposing creditors, on whom the burden of proof rests, have failed to show facts which, under the law, can defeat the discharge. The referee therefore respectfully recommends that the discharge be granted. The creditors duly excepted to the overruling of their grounds of opposition, and to all the referee’s rulings. These conclusions, together with the papers in the cause and the stenographic report of the evidence, are, therefore, certified to Hon. D. E. Bryant, judge of said court, for his action in the premises. J. R. Burnett, Referee in Bankruptcy. Houston, May 10, 1900.”

Exceptions were taken by the creditors to this report, and on the hearing the following order was entered:

“On this 16th day of .Tune, 1900, came on to be heard before the district court, in special session, the application of the said bankrupt for discharge in bankruptcy, together with the specifications, in opposition thereto, of John E. Gale, Lawrence & Co., Geo. M. Ooburn & Co., and other opposing creditors, who are creditors of the firm of Weis Bros., of which bankrupt is a' member, his copartner being Robert Weis, a resident of the city and county of Galveston, state of Texas; and it ai>pearing to the court that Albert Weis has reported in schedule of assets ‘open accounts, promissory notes, accepted drafts, judgments as appear in the commercial books of Weis Bros.*, amounting to the sum of about $300,000, as will more fully appear in said commercial books, being for the goods sold to several parties by the firm of Weis Bros., the said claim being barred by limitation and worthless’; and it appearing that the items of said assets reported by bank*-rupt as worthless have not been itemized, and .that the bankrupt has not scheduled or produced the commercial books of the said firm of Weis Bros..

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Bluebook (online)
112 F. 962, 50 C.C.A. 638, 1902 U.S. App. LEXIS 3914, Counsel Stack Legal Research, https://law.counselstack.com/opinion/royston-v-weis-ca5-1902.