Van Heukelom v. Black Hawk Hotels Corp.

270 N.W. 401, 222 Iowa 1033
CourtSupreme Court of Iowa
DecidedNovember 24, 1936
DocketNo. 43451.
StatusPublished
Cited by12 cases

This text of 270 N.W. 401 (Van Heukelom v. Black Hawk Hotels Corp.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Van Heukelom v. Black Hawk Hotels Corp., 270 N.W. 401, 222 Iowa 1033 (iowa 1936).

Opinion

Kintzinger, J.

Plaintiffs’ intestate received injuries resulting in his death as a result of falling into an elevator shaft at the Hotel Fort Des Moines, at Des Moines, on February 5, 1935. This action was commenced by the administrators of his estate in the district court of Polk county on April 24, 1935.

In count two of their petition, plaintiffs allege that the injuries and death resulted from the negligence generally of the defendant hotel company, and ask to recover under the doctrine of res ipsa loquitur.

On April 2, 1935, an involuntary petition in bankruptcy was filed against the defendant in the Davenport Division of the United States District Court for the purpose of effecting a reorganization of the defendant company under the provisions of section 77B, chap. VIII, of the Acts of Congress relating to bankruptcy (11 U. S. C. A. sec. 207). The petition was approved on the same day, and all creditors and others were, by order of that court, enjoined and restrained from instituting or prosecuting any action at law or equity against the Black Hawk Hotels Corporation in any court of law or equity during the pendency of the bankruptcy proceedings in federal court, and all claims were ordered filed with the special master by June 1, 1935.

On May 15, 1935, the defendant appellant filed an answer, and plea in abatement. In its plea in abatement appellant asked that the action be dismissed or that the same be held in abeyance pending termination of the bankruptcy proceedings.

On July 17, 1935, appellees filed a motion to strike defendant’s plea in abatement.- This motion was sustained.

On July 25, 1935, appellant filed a motion to strike certain parts of count two of plaintiffs’ petition because it failed to al *1035 lege the specific acts of negligence sued on, and because it failed to state the names of the persons or employees of the defendant whose negligence is complained of. In this motion to strike, appellant also embodied a motion for a more specific statement.

Appellant’s motion to strike certain parts of the petition, and to make the same more specific was overruled. Defendant appeals from both rulings.

The only questions involved in this appeal, therefore, relate to the rulings of the court on the pleadings.

I. Appellant contends that the court erred in sustaining appellees’ motion to strike appellant’s plea in abatement. The cause of action set out in petition filed against the defendant hotel company is based upon the negligence generally of the employees of the defendant company, as a result of which plaintiffs’ intestate fell into defendant’s elevator shaft in the Hotel Fort Des Moines on February 5, 1935, and received injuries resulting in his death.

Appellant contends that under section 77B of the Bankruptcy Act, the United States District Court in which such proceedings were commenced may enjoin or stay the commencement or continuance of all suits against the debtor in law or equity, until- final termination of the bankruptcy proceedings; and that the powers of the Federal Court under section 77B in bankruptcy proceedings have been enlarged, so that now all actions or claims against the bankrupt are provable solely in the bankruptcy proceedings, with power in that court to stay all proceedings against the bankrupt in other courts.

It may be conceded that prior to the adoption -of section 77B of the amendment to the Bankruptcy Act, a claim based upon a tort and not reduced to judgment at the time the petition in bankruptcy is filed is not a provable claim, and that a tort action in damages for a wrongful death may be prosecuted in the state courts to final judgment. Stalick v. Slack, (C. C. A.) 269 Fed. 123; Schall v. Camors, 251 U. S. 239, 40 S. Ct. 135, 64 L. Ed. 247. The original act only authorized the prosecution of claims in state courts where a discharge in bankruptcy would not be a release. It has, therefore, been uniformly held that actions based upon claims for torts were not dischargeable in bankruptcy. In re Natow Bros., (D. C.) 283 Fed. 522; In re Warnock (D. C.) 239 Fed. 779; Schall v. Camors, 251 U. S. 239, 40 S. Ct. 135, 64 L. Ed. 247; In re New York Tunnel Co., (C. C. A.) 159 Fed 688.

*1036 Appellant contends that under the new act known as section 77B relating to the reorganization of bankrupt corporations, the federal court in which such proceedings are pending now has an enlarged power under which it can stay all proceedings, including actions in tort commenced against the bankrupt in the state courts.

Appellees contend, however, that a ruling upon this point is unnecessary here because that part of the appeal relating to the ruling on the plea in abatement has now become moot, and in support of its contention, appellees have filed in the lower court a duly certified and exemplified copy of the order of the United States District Court, dated January 11, 1936, in which the bankruptcy proceedings were pending, showing the termination of said bankruptcy proceedings, and the release and discharge of the Black Hawk Hotels Corporation from all its claims, debts and liabilities, excepting such debts as are by law excepted from the operation of a discharge in bankruptcy; said order also provides :

“That all creditors of, claimants against and stockholders of, the debtor wherever situated * * * are hereby * * * enjoined from pursuing or attempting to pursue, or commencing any suits or other proceedings at law, in equity or otherwise, against said new corporations, Blackhawk-Perry Corporation and Blackhawk Hotels Company, or any of the assets or property transferred by the debtor to said new corporations, directly or indirectly, * * * based upon, any right, claim or interest which any such * * * claimant * * * may have had * * * against, said debtor * * #
“That the proceedings in this court entitled, ‘In the matter of Black Hawk Hotels Corporation, debtor’, Case No. 6489, be and the same is hereby terminated and finally closed. (Sgd.) Chas. A. Dewey, Judge.”

On October 1, 1936, however, and after the rulings herein-above were entered in the lower court, the United States District Court, in which said bankruptcy proceedings were pending, entered an order modifying the final order hereinabove referred to, and appellees filed a duly certified and exemplified copy thereof in the lower court. Said order provides substantially as follows:

“Be it remembered, that * * * on this 26th day of Sep tern *1037 ber, 1936, upon the application to * * *

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Bluebook (online)
270 N.W. 401, 222 Iowa 1033, Counsel Stack Legal Research, https://law.counselstack.com/opinion/van-heukelom-v-black-hawk-hotels-corp-iowa-1936.