Saks v. B. H. Stinemetz & Son Co.

293 F. 1005, 54 App. D.C. 38, 1923 U.S. App. LEXIS 1710
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 3, 1923
DocketNo. 3942
StatusPublished
Cited by4 cases

This text of 293 F. 1005 (Saks v. B. H. Stinemetz & Son Co.) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Saks v. B. H. Stinemetz & Son Co., 293 F. 1005, 54 App. D.C. 38, 1923 U.S. App. LEXIS 1710 (D.C. Cir. 1923).

Opinion

ROBB, Associate Justice.

This is a writ of error to the municipal court of the District of Columbia and involves a decision of that court dismissing plaintiff in error’s complaint, instituted to recover possession of premises leased by him to the defendant in error. The parties will be referred to here as plaintiff and defendant.

According to the averments of the original complaint, filed September 2, 1922, plaintiff leased to the defendant for a term of years premises known as Nos. 1201, 1201%, and 1203 F Street Northwest, in the city of Washington, at an annual rental of $18,000 payable monthly in advance, the eleventh clause of the lease being in part as follows:

“And if tbe tenant, its successors or assigns, shall become insolvent, or if proceedings in bankruptcy shall be instituted by or against it, or if it shall compound its debts or assign over its estate or effects for the payment thereof,, or if any execution or attachment shall issue against it or any of its effects whatsoever, whereupon the demised premises shall be taken or attempted to be taken, or if a receiver shall be appointed of its property, or if this lease shall, by operation of law from any cause whatsoever, devolve upon or pass to any person or corporation other than the tenant and persons and corporations to whom, with the consent of the landlord, his heirs and assigns, indorsed thereon, the same may be assigned by the tenant, then in each of such cases it shall and may be lawful for the landlord, his heirs or assigns, at his or their election into and upon the said demised premises or property, or any part thereof, in the nanie of the whole, to enter, and the same to have, hold, possess, and enjoy as of his former estate, discharged from these presents, and the demise intended to be hereby made as aforesaid, anything herein contained to the contrary thereof in any wise notwithstanding;”

On August 14, 1922, proceedings to adjudge the defendant a bankrupt were instituted in the Supreme Court of the District of Columbia, and concurrently therewith there was filed a petition for the appointment of a receiver of the assets. On the same day the defendant filed its answer, and, while not admitting any of the allegations of the peti[1007]*1007tion for bankruptcy, interposed no objection to the appointment of a receiver for the preservation of its assets. Accordingly, on the same day, the court appointed a receiver, who, on the day following', petition' ed and obtained from the court authority to conduct the business of the defendant. Thereupon the plaintiff, in a written communication, notified the defendant that he elected to terminate the lease.

The receiver was not made a party to the suit to recover possession. The defendant filed a plea challenging the jurisdiction of the court; the contention being that, through the bankruptcy proceeding, the Supreme Court of the District, holding a bankruptcy court, “assumed jurisdiction and took possession of defendant company’s assets and property.” Defendant also filed a motion to dismiss, upon substantially the same ground.

Before the court had passed upon these motions, or on October 23, 1922, plaintiff, by leave of court, filed a supplemental complaint, with exhibits, from which complaints and exhibits the following appears: On September 11, 1922, defendant filed its petition in the bankruptcy proceeding, setting forth that a 40 per cent, composition of all its debts had been submitted to its creditors, and had been accepted by a majority in number and amount of all proven claims and those which might be allowed. Defendant averred its readiness to pay the necessary amount, and prayed a reference to the receiver in bankruptcy for the purpose of consummating the composition. The reference was made, and the bankruptcy proceeding stayed. Thereafter the referee filed his report, showing that the offer of composition had been accepted. Upon the prayer of the defendant, a depository was named, for the purpose of carrying out the composition. Subsequently, or on October 5, 1922, defendant petitioned the court to confirm the composition and the matter came on for hearing on October 18th following, when the court, after reciting what had taken place, confirmed the composition in the following terms:

“The court being satisfied in all oí the particulars specified in section 12b of the Bankruptcy Act, it is this 18th day of October, 1922, ordered that said composition be and the same hereby is in all things confirmed.”

Upon the filing of plaintiff’s supplemental complaint, in which the averments of the original complaint were reaffirmed, a summons issued to the defendant. Thereupon defendant filed a plea challenging the jurisdiction of the court upon the ground of the pendency of the bankruptcy proceeding. By agreement of counsel, the case was heard upon defendant’s several pleas and motion to dismiss. The court overruled the plea to the jurisdiction, but sustained defendant’s motion •fr'» rJícmioci nr\A rVloín+í-ff pvpprifiafl

The defendant first suggests that the writ of error should be dismissed because of plaintiff’s failure to include “in the record a bill. of exceptions,” and for failure to include in the brief an assignment of errors. Since the questions involved sufficiently appear from the pleadings and proceedings of record, a bill of exceptions was unnecessary. Evans v. Humphreys, 9 App. D. C. 392; Clinton v. Mo. Pac. Ry., 122 U. S. 469, 7 Sup. Ct. 1268, 30 L. Ed. 1214; Moline Plow Co. v. Webb, 141 U. S. 616, 623, 12 Sup. Ct. 100, 35 L. Ed. 879. In [1008]*1008plaintiff’s brief he has assigned as error the action of the court “in granting the defendant’s motion to dismiss and dismissing plaintiff’s complaints.” In the circumstances of the case, this was sufficient. But one ground was urged by the defendant, namely, the pendency of the bankruptcy proceeding, and the order of the court simply sustained the motion, so that defendant was fully apprised of the character and scope-of the error assigned.

The supplemental complaint, upon which a summons issued, as already noted, was in substance and effect a new complaint, and was so treated by the parties and the court below. The status of the parties, therefore, at the time of the filing of this supplemental complaint, is determinative of the question whether the receiver should have been made a party to the proceeding. As we have seen, the composition had been accepted by the creditors and confirmed by the court prior to the filing of this complaint. Such compositions in bankruptcy are authorized by the Bankruptcy Act of 1898 (30 Stat. 544), and under section 70f of that act (Comp. St. § 9654) it is provided that, upon confirmation of a composition offered by a bankrupt, title to his property shall thereupon revest in him. By section 21g of the act (Comp. St. '§ 9605) it is further provided that a certified copy of the order of confirmation shall constitute evidence of the reinvesting of the title, and, when recorded, shall impart the same notice as a recorded deed from the trustee to the bankrupt. In Cumberland Glass Co. v. De Witt, 237 U. S. 447, 35 Sup. Ct. 636, 59 L. Ed. 1048, the court said:

“The order of confirmation becomes in effect a discharge, and is pleaded in bar with like effect.

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Bluebook (online)
293 F. 1005, 54 App. D.C. 38, 1923 U.S. App. LEXIS 1710, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saks-v-b-h-stinemetz-son-co-cadc-1923.