Case ID: f_175/html/0309-01.html
Source: Caselaw Access Project
Author: {"author": "HOLT, District Judge.", "license": "Public Domain", "url": "https://static.case.law/"}
Date Created: 2024-08-24T03:29:51.129683

In re LEEDS & CATLIN CO.
    (District Court, S. D. New York.
    October 6, 1909.)
    1. Bankbtu’tcy (8 18%, Now, vol. 8, Key No. Series)—Ptesronsru Litigation-Proceedings—Stay.
    Where defendant in a suit for infringement of a patent was declared a bankrupt after tbe entry of an interlocutory judgment against it and the direction of an accounting before a master, an application for a stay of proceedings before the master on behalf of the bankrupt, would be denied.
    
      2. Bankruptcy (§ 150*)—Pending Litigation—Appearance by Receiver and Trustee—Discretion.
    Where- defendant in a suit for patent infringement was adjudicated’ a bankrupt after the entry of an interlocutory judgment,- whether the bankrupt’s receiver or trustee, when. appointed, should appear or take any action in the patent suit, was within his discretion ; the plaintiff not being entitled to an order directing them to appear therein.
    [Ed. Note.—Eor other eases,'see Bankruptcy, Dec. Dig. § 156.*]
    3. Bankruptcy (§ 18%,* New, vol. 8, Key No. Series)—Pending Litigation-Accounting by Receiver.
    Where defendant in a suit for patent infringement--became a bankrupt after the entry of an .interlocutory judgment, defendant’s receiver in bankruptcy would not be directed to furnish the accounting directed by the decree in -the patent suit. > •
    4. Bankruptcy (§ 18%,* New,' vol. 8, Key Nó. Series)—Distribution op' Assets—Stay. ■ •
    Where, after an interlocutory judgment in a suit for patent infringement, the defendant was declared a bankrupt, the receiver and trustee would not be ordered to refrain from distributing any of the assets of the bankrupt until the approval of the master’s report in the patent suit, but .an order-would be entered directing the-receiver or trustee not to declare any dividend without previous notice to the complainant’s attorneys in such suit, who might thereupon apply to the referee for a stay.
    5. .Bankruptcy (§ 18%,* New, vol. 8,- Key No. Series)—Penbing Litigation-Accounting—Intervention.
    • Where a defendant in a suit for patent infringement became a bankrupt after judgment pending an accounting, complainant in that proceeding was not entitled to an order restraining all'parties in the bankruptcy proceedings from interfering with the accounting, since, if any one désired to make-’any application in the patent case, they might make it in the case pending in the CSrbuit Court. ■
    In the- matter of the' Deeds & Catlin Company, bankrupt. On. motion for directions to the receiver and trustee.
    Denied.
    Claude W. Gould, for bankrupt.
    Philip Mauro, Elisha K. Camp, and C. A. L. Massie, for American Graphophone Company.
    
      
      For other cases see same topic & § number in Dee. & Am. Digs. 1907 to date, & Rep'r Indexes
    
   HOLT, District Judge.

I .havé consulted with Judge Dacombe -in 'this matter, and entirely concur in his geñeral view, as expressed in his memorandum in the motion before him. 174 Fed. 158. The motion in this matter made in behalf of the bankrupt to stay proceedings' before Mr. Shields is denied.. The motion made in behalf of the' American Graphophone Company for an order directing the receiver, and the trustee, when appointed, to. enter an appearance in the patent suit, is denied.’ The receiver, or the trustee, when appointed, is at liberty to take,” or abstain from taking,-any action in that case as he may be advised. The motion to- direct the- receiver to. furnish the ac- ' counting directed by the decree-, of the Circuit Court is denied. • The motion to direct the receiver, and the trustee, when appointed', not to distribute any of the assets’of the bankrupt until the coming in and approval of the master’s report in the patent suit is denied; but an order may be entered directing the receiver', or the trustee, when appointed, ' not to declare .any dividend in this casé without previous notice to the' •complainant’s attorneys in-the patent.suit, who may thereupon make such application to the referee in charge of the bankruptcy proceedings as it may be advised, and the motion restraining all parties in the bankruptcy proceedings from in any wise interfering in said patent accounting is denied. If any party wishes to make any application in the.patent case, they may make it in the case in the Circuit Court. 
      
      For o.th’er cases se.e same topic & § number in Dec.'& Am. Digs. 1907 to date, & Rep’r Indexes