The Birmingham age-herald., 1909-05-23
WIDE INTEREST IN
 HUNDLEY DECISION Why Fee Was Not Allowed
 Percy 6 sennerS APPORTIONMENT OF S5OOO Court Holds Attorneys Cannot Claim Pay For Representing Creditors
 In Addition to Receivers
 and Trustees.
APPORTIONMENT OF S5OOO

In view of the wide interest in the re- cent decision of Judge Oscar R. Hundley in the matter of apportioning the 5000 fee allowed attorneys for the petitioning cred itors fin the Southern Steel company bank ruptcy proceedings, the opinion Is this morning @brinted in full by The Age-Her- aid. The special interest aroused in the matter came about because no part of the 5000 was allowed Percy & Benners but was apportioned among Ward & Rudulph, Lee J. Marx. Powell G Blackburn and A. Leo Oberdorfer
 In brief the court holds that Percy 6 Benners were not entitled to fee for rep resenting the creditors because they had already drawn S60O0 as fees for represent ing the receivers, and were entitled to and would receive fees as attorneys for the 1 trustees. In other words, the court holds that attorneys cannot receive fees in three different relations in the same bank l ruptcy case. The opinion in full is as l follows:
 l In To Southern Steel company, bank rupt. District court N. D. Alabama. i s. D.. May 1S 1908.
 1 No. 79T7. Inbankruptcy.
 1. ankruptcy-Attorney Fee-In the administration of an estate in bankruptcy the law permits the allowance of one reasonable attorneys fee for services act ] ually rendered to petitioning creditors in l involuntary cases.
 1 9 Same-Amount of Such Fee-The amount to be fixed for such attorneys fee must. be reasonable and be determined upon the evidence of the service per formed and It's value.
 B. Same-When Two Petitions Filed, to Whom Payable-Where there are two sets of petitioning creditors and separate pe- titions In involuntary bankruptcy filed in behalf of both and the averment of the act of bankruptcy made in the first pe- tition cannot be sustained as mater of law, while the averment of bankruptcy in the second petition can be and is sus- tained, the one attorneys fee allowed for petitoning creditors must be allowed to the attorneys for the creditors upon whose averment of bankruptcy the adjudication is made.
 4. Same-Attorney's Fee-Attorneys who represent one of the parties to litigated questions of law and fact pending be- tween two sets of petitioning creditors |. are not entitled to receive fees as at torneys for such creditors and also as attorneys for the receiver of the bank, rupt estate, such dual employment be. ing inconsistent.
 5. Same-Attorneys Cannot Receive Fees in Three Different Relations in the Same Bankruptcy Case-Whereea eattorneys appeared as counsel for one set of peti- tioning creditors and shortly afterward become attorneys for the receiver in bankruptcy and also later for the trus- tee in bankruptcy and receive fees as att torneys in the two latter capacities. 1t is a termination of their employment and service as attorneys for the petitioning creditors. and they are not entitled to re- ceive fees in all three capacities.
 6. Same-Authority of Agent to Commit Act of Bankruptcy for Corporation Where a corporation, by resolution of It's directors, delegates to an attorney plen- ary authority to exercise his discretion looking to the appointment of temporary receivers for the corporation in bank ruptcy proceedings, and such agent acts thereon and writes a letter in the name of the corporation, which, if done by the corporation, would be act of bank ruptcy, an adjudication cannot be had upon such letter, since 1t is not such an unqualified admission by the corporation as is required by the statute.
 '. Same-Act of Bankruptcy by Officer for Corporation-An officer of a corpora ton, in the absence of proof that it is the l act of the corporation, cannot by letter on his own initiative commit an act of bank ruptcy for the corporation.
 Syllabus by the court
 On review of decree of referee in bank ruptcy fixing attorneys fees for peti- ] tioning creditors.
 Campbell & Johnston, attorneys for trustees of the bankrupt.
 Percy & Benners, attorneys for the first l petltioning creditors.
 Ward 6 Rudulph. Lee J. Marx. Powell 1 & Blackburn and A. Leo Oberdorfer, at torneys for the second petitioning cred l itors.
 Hundley District Judge: On the 25th 1 day of October 190T petition on be- half of certain creditors named therein was filed fin this court praying that l the Southern Steel company be adjudged l a bankrupt In that petition, which is l designated asethe petition of the first l petitioning creditors, Messrs. Percy & ! Benners appeared as counsel for peti- 1 tioners. At the same time there was presented to me another petition for other 1 creditors seeking to have the same cor l poration adjudged a bankrupt, and for | these creditors, who are designated as the second petitionins creditors. Messrs. l Ward & Rudulph, Lee J. Marx Powell &, Blackburn and A. Leo Oberdorfer ap- ] peared as counsel. The referee in fixing | the amount of compensation for the att | torneys for the various petitioning cred 1 itors fixed the amount of $25O0 for the | attorneys for the first pettioning cred 1 itors and $2600 for the attorneys for the ] second petitioning creditors making a | total of 5000 for all the attorneys for the petitioning creditors. The action of the referee is here presented for review l on petitions filed by Percy & Benners, | E;nH z53z I4117 kzzz E Dn&TTIM