United States ex rel. Paleais v. Moore

287 F. 879, 1923 U.S. Dist. LEXIS 1759
CourtDistrict Court, E.D. New York
DecidedApril 23, 1923
StatusPublished
Cited by1 cases

This text of 287 F. 879 (United States ex rel. Paleais v. Moore) is published on Counsel Stack Legal Research, covering District Court, E.D. New York primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
United States ex rel. Paleais v. Moore, 287 F. 879, 1923 U.S. Dist. LEXIS 1759 (E.D.N.Y. 1923).

Opinion

CAMPBELL, District Judge.

The relator asks for his discharge on a writ of habeas corpus issued herein. Relator is now imprisoned on an order committing him for contempt in a proceeding in bankruptcy, and it may be well to briefly state the steps taken leading up to the making of said order.

On July 21, 1922, an involuntary petition in bankruptcy was filed against the relator, and. James Gray was appointed as receiver in said bankruptcy proceedings and qualified as such. On August 12, 1922, the relator was adjudged an involuntary bankrupt;

On August 24, 1922, upon the petition of said receiver, an order to show cause was issued, requiring the relator to show cause in person before the District Court why an order, should not be made, ordering [880]*880and directing him to deliver forthwith to the said receiver in bankruptcy all the relator’s books of account by him kept in the course and conduct of his business, consisting of bill books, cash book, ledger, bills, etc., and why in the alternative, such other and further relief as to the said District Court should seem just and proper in the premises should not be granted.

The relator opposed the granting of the said application, and filed an affidavit in and by which he alleged that said books and papers had been stolen and had not been returned. The matter was referred to a special commissioner, to take testimony and report, with his opinion thereon.

The special commissioner made and filed his report, in which he reported that the relator had not satisfactorily accounted for the disappearance of his books and records, and was therefore in the same position as if he had ignored the demand of the receiver, and that an order should be entered directing him to turn over to the said receiver his books and records.

On October 3, 1922, on notice to the relator, he having appeared by counsel and opposed, an order was made by this court, by Hon. Edwin L. Garvin, District Judge, in all respects confirming the said report of said special commissioner and ordering the relator, on or before 4 p. m., October 6, 1922, to turn over to the receiver his cash book, ledger, check book, bill books, note books, canceled vouchers, and unpaid bills.

On October 4, 1922, the relator filed in the office of the clerk of the United States Circuit Court of Appeals for the Second Circuit a petition to revise said order of October 3, 1922, and after consideration of said petition the said Circuit Court of Appeals affirmed* said order. Lewis H. Saper was appointed trustee of the assets ánd effects of the above-named relator, bankrupt, and duly qualified as such trustee.

The relator did not obey the aforesaid order, and turn over said books and papers to the said .receiver, nor did he turn them over to said trustee, and on March 8, 1923, the said trustee filed a petition, on which an order was granted, directed to the relator, requiring him to appear and show cause why he should not be punished for contempt.

To said petition relator filed an answer repeating the allegation that said books and papers had been stolen from him and were missing, and that his inability to comply with said order was due to this alone, and not to any willful, intentional, or contumacious refusal on his part to comply with said order, and also opposed on the ground that the application to punish for contempt was by petition of the trustee, and not the receiver, whereas, the order of October 3, 1922, directed that the books and papers be turned over to the receiver, and not to the trustee, and that said receiver had in the interval been superseded by the trustee, and on the further ground that the petition of the trustee did not show that any injury had been caused by relator’s alleged inability to turn over said books and papers.

On the return of said order to show cause the relator appeared by counsel and opposed the granting of the order to punish the relator for contempt on all the grounds set forth in his said answer. On March 17, 1923, Hon. Edwin L. Garvin, District Judge, granted said motion, and in a memorandum thereafter filed said, among other things:

[881]*881“Injury has undoubtedly been sustained by the estate through the failure to ‘ obey the order of the court.”

On March 22, 1923, the said court, by Hon. Edwin E. Garvin, District Judge, made an order granting said motion and ordering, adjudging and decreeing that the relator was guilty of contempt of this court and that he be forthwith committed to the Raymond Street jail, located in the borough of Brooklyn, countv of Kings, state of New York, Eastern district of New York, to be there confined and detained as punishment for his contempt in failure to comply with the terms of the order of this court, and it was further ordered that he be detained in said jail until he should have purged himself of such contempt, or until the further order of this court, and in said order it was further provided that the relator might purge himself of said contempt by forthwith turning over the books and papers, therein specified, called for by said order of October 3, 1922, to his trustee in bankruptcy.

The relator was taken into custody by the marshal and confined in jail, and relator then made a motion before the Supreme Court of the United States for leave to file a petition for a writ of habeas corpus, but said motion was denied, without prejudice to an application to the District Court. Relator then sued out a writ of habeas corpus in the District Court, to which the marshal has made return that relator is held under said order of March 22, 1923.

The relator asks for his discharge on the alleged grounds that the order of commitment is void, and that the court was without jurisdiction to make the same, and separatelv states and specifies the grounds of his objections by the letters (a), (b), (c), (d), (e), and (f), and I will consider them in their order.

Specifications (a) and (b) may be considered as one because they in effect allege that, the order to turn over having directed the turning-over to be to. the receiver, there could be no contempt on the part of the relator in not having turned over to the trustée, and that the trustee was not the proper person to move to punish for contempt, because he was^not a person aggrieved. Ajt first glance there seems to be some merit to this contention, but on a careful consideration thereof the matter appears in a different light.

Undoubtedly, if the relator had at any time after the making of the order of October 3, 1922, turned over the books and papers to the receiver, he would have complied therewith, and, had he turned over the said books and papers to said receiver, it would have been for the benefit of the trustee. The receiver never had any title to the property of the bankrupt; he was merely entitled to the custody of the bankrupt’s property as the representative of the court. In re Kleinhaus (D. C.) 113 Fed. 107. His duty was to hold the same until the trustee was appointed, because the order to turn over was made after the relator was adjudged a bankrupt, and it was then .only necessary to ap- ' point a trustee.

The trustee, on his appointment, took the title to all the assets and effects of the bankrupt, relator, which relator had on the day he was adjudged a bankrupt, which long antedated the date of the order to [882]*882turn over; therefore the order to turn over to the receiver was in real ity for the benefit of the trustee.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

In re Centrone Coal Co.
6 F. Supp. 628 (E.D. New York, 1934)

Cite This Page — Counsel Stack

Bluebook (online)
287 F. 879, 1923 U.S. Dist. LEXIS 1759, Counsel Stack Legal Research, https://law.counselstack.com/opinion/united-states-ex-rel-paleais-v-moore-nyed-1923.