Court Opinion

ID: 9652560
Source: CourtListenerOpinion
Date Created: 2023-08-23 17:26:11.40881+00
Date Added: 2024-06-11T18:12:52.371006
License: Public Domain

MANTON, Circuit Judge
(dissenting). The Supreme Court pointed out, when this cause was before it, that the intervening creditors who “joined in the original petition necessarily acquired the status of petitioning creditors as of the date on which the original petition was filed,” and held that they may thereafter avail themselves of its allegations, including those relating to the commission of the act of bankruptcy, as fully as if they had been original petitioners. The consolidation by order of the court before the adjudication classified all the creditors who had intervened'as petitioning creditors under section 64b of the Bankruptcy Act. While it was the right of creditors to thus intervene, we must assume that good reason was shown for such intervention, and that after the grant these creditors were entitled to all the privileges and were burdened with all the obligations of the petitioning creditors referred to under section 64b. The statute is plain in permitting an allowance to be granted by the court to attorneys for the petitioning creditors. The firm of attorneys who represented the interveners are within the meaning of this statute. McCracken v. McLeod, 129 F. 621. The authority cited, although in the District Court, is a well-considered opinion.
The work and services performed by the counsel for the intervening creditors, after they became counsel for the petitioning creditors, was apparently desired, and certainly helpful and fruitful of result. They ably represented the petitioning creditors, contending for the argument in support of the claims that acts of bankruptcy were committed and assisted materially in securing the adjudication. The division of the fee allowed is another matter. But the right to an allowance for such services is plain. In re Southern Steel Co. (D. C.) 169 F. 702; Hall v. Reynolds, 231 F. 946, 146 C. C. A. 142; In re Consolidated Distributors (C. C. A. ) 298 F. 859. Services rendered by attorneys for the class of creditors who have become petitioning creditors, and which are beneficial to the estate, should be compensated for. Because counsel rendered such services, and are entitled to compensation under the act, I cannot agree with the prevailing opinion. Randolph & Randolph v. Scruggs, 190 U. S. 553, 23 S. Ct. 710, 47 L. Ed. 1165.
I dissent.