Saraceno's Market, Inc., Alleged Bankrupt v. Haffenreffer & Co., Inc., Creditors

First Circuit

Saraceno's Market, Inc., Alleged Bankrupt v. Haffenreffer & Co., Inc., Creditors

283 F.2d 251, 1960 U.S. App. LEXIS 3557

CourtCourt of Appeals for the First Circuit

DecidedOctober 18, 1960

Docket5669_1

StatusPublished

This text of 283 F.2d 251 (Saraceno's Market, Inc., Alleged Bankrupt v. Haffenreffer & Co., Inc., Creditors) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Saraceno's Market, Inc., Alleged Bankrupt v. Haffenreffer & Co., Inc., Creditors, 283 F.2d 251, 1960 U.S. App. LEXIS 3557 (1st Cir. 1960).

Pincite

Opinion

PER CURIAM.

In this case a debtor who admittedly committed an act of bankruptcy, namely, made a general assignment while owing three creditors more than $500, was petitioned into bankruptcy by said creditors. It pleads that the petition should be dismissed because the assignment was a more profitable way to dispose of the matter, and that the creditors signed the petition only because of poor advice given them by their attorneys, induced by the latters’ dislike of counsel for the as-signee and by a desire to obtain a fee. The district court ordered this special defense stricken.

It may be assumed that in any case counsel hope for a fee. Were we to countenance this novel attempt to avoid bankruptcy proceedings that were admittedly appropriate and warranted, it would mean that in every instance the wisdom *252 of the petitioning creditors and the reasons their counsel advised them to file would be the subject of inquiry. The case presented is a far cry from fraud.

Judgment will be entered affirming the order of the District Court.

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PER CURIAM.

In this case a debtor who admittedly committed an act of bankruptcy, namely, made a general assignment while owing three creditors more than $500, was petitioned into bankruptcy by said creditors. It pleads that the petition should be dismissed because the assignment was a more profitable way to dispose of the matter, and that the creditors signed the petition only because of poor advice given them by their attorneys, induced by the latters’ dislike of counsel for the as-signee and by a desire to obtain a fee. The district court ordered this special defense stricken.

It may be assumed that in any case counsel hope for a fee. Were we to countenance this novel attempt to avoid bankruptcy proceedings that were admittedly appropriate and warranted, it would mean that in every instance the wisdom *252 of the petitioning creditors and the reasons their counsel advised them to file would be the subject of inquiry. The case presented is a far cry from fraud.

Judgment will be entered affirming the order of the District Court.

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Bluebook (online)

283 F.2d 251, 1960 U.S. App. LEXIS 3557, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saracenos-market-inc-alleged-bankrupt-v-haffenreffer-co-inc-ca1-1960.