Court Opinion

ID: 9639490
Source: CourtListenerOpinion
Date Created: 2023-08-22 16:20:13.927135+00
Date Added: 2024-06-11T17:16:25.559896
License: Public Domain

On Petition for Rehearing,
MOORMAN, Circuit Judge,
Consideration of the petition for rehearing convinces the court that it was error to affirm so much of the decree below as allowed a recovery of management, contracting, and engineering fees paid to the appellant and its predecessor prior to December, 1922, the earliest date, as found by the court, of the insolvency of the railway company. The recovery is sought on behalf of the creditors of the railway company. There was no showing that the payments prior to the insolvency of the company were made with the intent to hinder, delay, or defraud the company’s creditors. The reasons that impelled us to limit the recovery of dividends to such payments as were made after the date of insolvency require a like limitation in the recovery of contracting, management, and engineering fees. The affirmance is accordingly set aside, and the decree is modified by eliminating therefrom such parts of the awards therein as represent payments of contracting, management? and engineering fees made prior December of 1922, and as so modified is affirmed .