The New York herald., 1874-05-06
UNITED STATES DISTRICT COURT.

Right OF an Attorney to Recover Hfs
Fees from an Assignee In bankruptcy.
Yesterday, in the matter oil Charles C. Rubbel
and Edward A. Chapel, bankrupts. Judge Blatch-
ford rendered the following decision, affecting
the rignt OF an attorney to recover Tor legal SER
vices rendered to an assignee in bankruptcy
DECISION.
On the 18th OF November, 1873, the attorney for
the assignee presented to tins Court petition
setting forth that be had rendered various SER
vices in this matter, as attorney for the said
assignee, as such, In reference to the estate
such services Rss tne sum maj Of me M Vae ~ and
praying Tor an order referring it to the regis
ter In charge OF the case to tax the amount
OF costs, counsel lees and disbursements OF
the said petitioner in and about MS said
services on notice to the assignee. The Court re-
fused to make the order on the ground then stated
in MEMORANDUM Endorsed on the petition, that
the bill 'shoud be made part OF the assgnee's ac-
creditors, ana oe audited as part OF the assgnees
accounts Il an assignee employs an attorney, who
ney therefore should be presented Dy the assignee
as part O his accounts, ar q meeting OF creditors
where the sssgnees accounts are required
TO be presented, as provided by section
27 OF the act. The intention is that the dis
bursements OF the assignee in admInis-
and not yet paid, or whether incurred ana paid,
shall be submitted to the creditors at general
meeting ana audited by the Register as part
OF business OF auditng the accounts OF the as
siQnee, with view to passing the same, under the
power gwen .l to the kegsster BY section Of
the accounts OF assgnees. Under special circum-
stances the Court may properly on due notice to
tute an inquiry into the services rendered to an
assignee by an attorney or counsellor, with view
second general meeting Of creditors; but the
practice II one not to be encouraged.
on the zsth OF February, 1874, the attorney for
the assignee presented to the Court a petition
setting forth, with particuarity, the services ne
had rendered to the assignee IN reference to the
estate, and annexing a bill thereof. stated In
items, and amounting, Tor services ana dlsbuse-
ments TO $3.50 81. The petition states that at the
third meeting OF cledltors-Dut when that was
held is not stated-the petitioner presented his
blil containing ali the items except the last four,
TO tue hegister or taxation ana allowance In open
meeting; that the bill was brought to the
knowledge OF the assignee ana all the creditors
present, and neither the assignee nor any
sequently the Register, without passing on the
bill passed the accounts OF the assignee and dis
charged him: but no order OF distribution had
been made, and he still had in his hands funds or
the estate t. the amount OF about $1,000: that
subsequently, the Register, having doubts as to his
power to pass upon the bill, declined to do so;
that thereafter The said petition or November Is,
1873, was presented to the Court and that the bill
was iully presented for allowance at the third
meeting OF creditors. anu all the creditors and
the assignee had notice thereof and opportunity
TO object. and no objection was made. The petition
prayed Tor an order directing the Register to pass
upon. tax and adjust the bull The assignee con-
sented In writing, that the petition be presented.
Register pass upon, tax, audit and adjust the
Dill: upon notice TO the assignee" and ascertain
Nhu itpoits oh Hhe uOLCe, whether anyLOlnx, AQ0,
II so, now much ought TO be paid thereon by said
assignee out o the assets Of the estate report
ms opinion, with evidence taken. to this Court.
BY the proceedings before the Register, under
TINS order, now returned 10 the Court, IL appears
tne assignee attended before the Register and that
the attorney made proof OF the services he had
rendered and OF their va,ue and that the assignee
introduced no evidence The bill az so proved.
amounts to S556 81. The Register reports that IN
his opinion, the bill so proved should be taxed.
audited and adjusted and paid out OF the assets OF
the estate.
The dniculty have in this matter is that, even
assuming that the presentation OF the bIli that
was presented at the third meeting OF creditors
In the manner in which it was presented was
proper presentation OF 1t and substantial COM
pliance with the proper practice, as herenbefore
stated, yet the bill now presented has four items
added IT, the last four (which seem 10 amount
10 SITS 20l, winch have never been submitted TO
tho creditors Moreover, in the petition OF No
vember Is. 1879 the Dill Ia stated 10
amount to $44l 81. 1t Is now claimed 10 be
1856 81. The only course open Is for
meeting or the creditors to be ordered by the
Court, the assignee TO give, under section H. such
notice thereof 20 all known creditors, by pubica-
ton and otnerw Sc, as u required 10 be gwen by
the Marshal on the first meeting OF creditors, the
notice to state that the special business OF the
meeting is TO audit and pass upon the said bill
stating its general nature and amount as claimed
and the proceedings az the meeting TO be reported
TO the court. Let q proper order In the premises
be prepared by the Register and submitted 10 the