Source: https://www.legalcrystal.com/case/96369/lincoln-vs-ricketts
Timestamp: 2017-11-22 09:06:54
Document Index: 273902851

Matched Legal Cases: ['§ 64', '§ 64', '§ 64', '§ 15', '§ 64', '§ 64']

Lincoln Vs Ricketts - Citation 96369 - Court Judgment | LegalCrystal
Lincoln Vs. Ricketts - Court Judgment
LegalCrystal Citation legalcrystal.com/96369
Case Number 297 U.S. 373
Respondent Ricketts
.....who, by the laws of the states or the united states, is entitled to priority: provided, that the term 'person' as used in this section shall include corporations, the united states, and the several states and territories of the united states." held that a municipality is a "corporation" and hence a "person" within the meaning of this provision if entitled to priority by the law of its state. pp. 297 u. s. 374 , 297 u. s. 377 . 77 f.2d 425 reversed. certiorari, 296 u.s. 566, to review a judgment denying the city's claim of preference in a bankruptcy case. mr. chief justice hughes delivered the opinion of the court. the city of lincoln, neb., a municipal corporation, sought priority in the payment of its claim against the lincoln trust company,.....
Lincoln v. Ricketts - 297 U.S. 373 (1936)
U.S. Supreme Court Lincoln v. Ricketts, 297 U.S. 373 (1936)
Held that a municipality is a "corporation" and hence a "person" within the meaning of this provision if entitled to priority by the law of its State. Pp. 297 U. S. 374 , 297 U. S. 377 .
In construing the words of an act of Congress, we seek the legislative intent. We give to the words their natural significance unless that leads to an unreasonable result plainly at variance with the evident purpose of the legislation. Ozawa v. United States, 260 U. S. 178 , 180 [argument of counsel -- omitted], 260 U. S. 194 ; Ohio v. Helvering, 292 U. S. 360 , 292 U. S. 370 . Counsel at the bar could suggest no reason for allowing to corporations generally, or to the associations comprehended within the term "corporations" as used in the Bankruptcy Act, the priority given by § 64b(7), when the state law provides for it, and denying that, priority in accordance with state law to a municipal corporation. We can conceive of no reasonable basis for such a discrimination. And, while we may assume that it would be within the power of the Congress to make it, we find no support in the provisions of the act for the view that such a discrimination was intended.
Respondent strongly relies upon our decision in Davis v. Pringle, 268 U. S. 315 . That decision was rendered in 1925, before the amendment of § 64b(7) which defined the term "person" as there used. From an examination of the context, the Court reached the conclusion that the word "person" in the original provision was not intended to include the United States. The Court noted that "[e]lsewhere, in cases of possible doubt, when the Act means the United States, it says the United States." Id., p. 268 U. S. 318 . The Congress then amended § 64b(7) by expressly providing that the term "person" should include the United States. Act of May 27, 1926, § 15, 44 Stat. 662, 666, 667. But that amendment also provided that the term "person" should include "corporations." At the same time, by the amendment
There is a further question, which is one of state law. The preference under § 64b(7) is only in the case of "debts owing to any person who by the laws of the States or the United States is entitled to priority." The further question then is whether the City of Lincoln is entitled to priority under the law of Nebraska. The Circuit Court of Appeals did not determine that question. The court cited its decision as to the status of the City and County of Denver under the laws of Colorado ( Denver v. Stenger, 295 F. 809; compare U.S. Fidelity & Guaranty Co. v. McFerson, 78 Colo. 338, 241 P. 728), and apparently assuming, without deciding, that the law of Nebraska accorded priority to the City of Lincoln, the court proceeded to base its decision in the instant case upon the inapplicability of § 64b(7) to a municipal corporation. The law of Nebraska was not discussed.