Source: http://www.law.cornell.edu/supremecourt/text/235/584
Timestamp: 2013-05-24 20:07:53
Document Index: 560637328

Matched Legal Cases: ['§ 70', '§ 9654', '§ 8', '§ 8', '§ 70', '§ 8', '§ 70']

JAMES M. HULL, Jr., Trustee, v. MRS. M. J. DICKS. | Supreme Court | LII / Legal Information Institute
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235 U.S. 584 (35 S.Ct. 152, 59 L.Ed. 372)
JAMES M. HULL, Jr., Trustee, v. MRS. M. J. DICKS.
Argued: November 12, 1914.
[HTML] Mr. William H. Barrett for James M. Hull, Jr., trustee.
'Where a resident citizen of Georgia has been duly adjudicated a bankrupt and dies after such adjudication, and after the appointment, qualification, and partial administration of the trustee, is the estate vested in the trustee under § 70 of the bankruptcy law of 1898 30 Stat. at L. 565, chap. 541, Comp. Stat. 1913, § 9654 chargeable under § 8 of the same law, or otherwise, with the allowance for a year's support of the widow and minor children, as provided in the laws of Georgia?' Counsel for the appellant contends that this question should be answered in the negative. He insists that § 8
of the bankruptcy act does not create a right, but, as in this case, merely preserves the right, given by the state law, to have a year's support 'out of the estate' left by the husband and father. It was then argued that as the title to the property had vested in the trustee before the death of the bankrupt, Dicks did not die 'leaving an estate,' and there was, therefore, no estate out of which, under the Code of Georgia, the year's support could be set apart.
This reasoning would be applicable if the widow and children were asserting rights of inheritance under the statute of distribution. Moreover, there would be no answer to the argument advanced if the title, which vested in the trustee, was in its nature like that which would have been acquired if Dicks in his lifetime had made a deed of assignment to the trustee. But such is not the case. For, construing the statute as a whole, it will be seen that while § 70
of the bankruptcy act vested title in the trustee primarily for the benefit of the creditors, there was no exception in favor of the bankrupt himself, and the transfer was also subject to a condition in favor of his family if he died before the proceedings ended. If the bankrupt elected to claim a homestead, the exempt property, even though it had passed to the trustee, would, after identification and appraisal, be turned back into his possession. Chicago, B. & Q. R. Co. v. Hall, 229 U. S. 515, 57 L. ed. 1309, 33 Sup. Ct. Rep. 885. The trustee's title was also subject to the condition that if the bankrupt died during the pendency of the proceedings, the widow and children would be entitled to receive the allowance given them by the laws of the state of his residence. This latter limitation on the trustee's title was in connection with legislation on the subject of abatement.
The right to the year's support accrued at the date of the bankrupt's death, and could be enforced out of property remaining in the hands of the trustee,and then only after the allowance had been duly made in proceedings where he, as representative of the creditor, had the right to be heard.
There has been some conflict in the decisions dealing with the subject (Re McKenzie, 73 C. C. A. 483, 142 Fed. 3846; Re Slack, 111 Fed. 523; Re Newton, 122 Fed. 103; Re Seabolt, 113 Fed. 767; Re Parschen, 119 Fed. 976; Thomas v. Woods, 26 L.R.A.(N.S.) 1180, 97 C. C. A. 535, 173 Fed. 586, 19 Ann. Cas. 1080; vacated, 101 C. C. A. 664, 178 Fed. 1005), but the foregoing considerations require that the question of the Circuit Court of Appeals should be answered, Yes.
'§ 8. Death or insanity of bankrupts.a. The death or insanity of a bankrupt shall not abate the proceedings, but the same shall be conducted and concluded in the same manner, so far as possible, as though he had not died or become insane: Provided, That in case of death the widow and children shall be entitled to all rights of dower and allowance fixed by the laws of the state of the bankrupt's residence.'
'§ 70. Title to property.a. The trustee of the estate of a bankrupt, upon his appointment and qualification . . . shall . . . be vested by operation of law with the title of the bankrupt, as of the date he was adjudged a bankrupt, except in so far as it is to property which is exempt, . . .'