1. A seaman filed a libel against a cargo of coal, to enforce a lien for his wages upon freight money alleged to be due from E. & M. on the cargo. The cargo was seized under the process, and was claimed by the C. S. Co., but the only answer put in, was one by E. & M.:
Held. That the practice was irregu. lar, but the irregularity would not be noticed, as no objection had been taken to it. Conley v. The Freight of the G. C. Burras,
1. On the petition and schedules of one member of a copartnership, an adjudi- 6. cation of bankruptcy of the firm was made. It appeared that neither of the other members of the firm had con- sented to the adjudication of bank- ruptcy, and that they had no place of business within, and resided out of, the District where the petition was filed:
Held, That the adjudication as to the other members of the firm was er- roneous, as the Court was without jurisdiction as against them, and that as to them such adjudication must be vacated, but should be allowed to
A suit for assault and battery, having been commenced against the bank- rupts prior to the commencement of the proceedings in bankruptcy, was continued to judgment before the ad- judication, no leave of the bankruptcy Court having been obtained:
Held. That, as the claim was not provable until the judgment was ob- tained, it was not necessary to obtain such leave.
On the petition of a creditor, showing that he and the assignee objected to the claim of B., another creditor, an order was made referring it to a ref eree to examine into the facts. Before any evidence was taken before the referee, the assignee appeared before the referee and objected to the pro- ceedings, on the ground that, since the assignee was elected, B. had made proof of his claim in form satisfactory to the register, and that the proof had been delivered to the assignee, and registered by him, and that, since the election of the assignee, the petition
7. If a trustee, who has been appointed under the 43d section of the bank- ruptcy Act, call a second general meet- ing of the creditors, the fees of the register incident to such meeting are not chargeable against the estate. Hinsdale & Dougherty's Case, 231
8. A petition in involuntary bankruptcy was filed against a firm, an injunction preventing them from parting with any of their property was issued, and a warrant of arrest under the 40th section of the Act was issued against one of the firm. The bankrupts em- ployed attorneys, who applied for a discharge of the arrest, and attended on a reference to ascertain the facts, which resulted in the discharge of the warrant. An adjudication being had, the attorneys prepared the schedule and inventory required by the 41st section. Thereafter they applied by petition to be paid for such services out of the estate:
Held, That, under the circumstances, a moderate compensation for such serv- ices would be allowed them.
The proper practice, in such a case, is for the bankrupts to apply to the Court in the first instance for leave to employ counsel. Mansfield's Case, 284
9. Where an order for the examination of a bankrupt is issued at the instance of a creditor who has duly proved his debt, the bankrupt cannot refuse to be sworn under the order, by reason of his claiming that he has an offset which extinguishes the creditor's debt, and desires to file a petition for the re- examination of the claim. Kingsley's Case,
10. A bankrupt's petition, which was filed in February, 1868, alleged only that he "had a place of business in New York." In February, 1873, he
asked to file an amended petition, in which the words, "and has there car- ried on business of his own," were added:
Held, That the amendment could not be allowed, but that the application to amend might be renewed, on an af- fidavit showing the facts and the reasons why the amendment was not asked for sooner. Wood's Case, 339
11. N., having borrowed money of his mother-in-law, gave her his notes for it, and, as security for them, procured a policy of insurance on his life to the amount of $4,000, for her benefit, and paid the premiums on it up to the date of his bankruptcy. On a sur- render of the policy, she would be entitled, in its stead, to a paid up policy for $158. The cash value of the policy, at the date of the bank- ruptcy, if surrendered, was $13 13. The mother-in-law proved her debt, to the amount of $3,450, setting forth the security:
Held, That, in order to ascertain the amount on which she was entitled to dividends from the estate, the cash value of the policy, if surrendered, viz., $13 13, should be deducted from the amount of the debt, as proved. Newland's Case,
12. A firm was adjudged bankrupt, on petition of creditors, without oppo- sition, the warrant was delivered to the marshal, a meeting of creditors was held, and an assignee chosen, who entered on his duties. Thereafter, one of the creditors applied to set aside all the proceedings as irregular, under the 16th General Order, because he had, previous to the filing of this petition against the bankrupts, filed a petition against them in another Dis- trict;
Held, That the proceedings in this Court were regular, notwithstanding the prior filing of the other petition, and that there was no ground for set- ting them aside. Harris & Co.'s Case,
13. In a proceeding in involuntary bankruptcy, the marshal returned to the warrant that he had sent notices to the creditors named on a schedule delivered to him by the attorney for the petitioning creditor:
$7,500 per annum, payable monthly. On the 1st of May, 1872, they owed $1,875 for the rent, and the landlord commenced proceedings to dispossess them. On the 6th of May a petition in involuntary bankruptcy against M., B. & C. was filed, and an injunction was issued restraining the debtors and all other persons from interfering with the debtors' property, which was served on the landlord. A warrant of dispossession was issued in those proceedings, but was not executed, and on the 20th of May a formal in- junction was served on the landlord, ordering him to refrain from any in- terference with the property of the bankrupts, except to preserve the same. The marshal, on May 6th, took possession, under the warrant, of the bankrupts' stock of goods, on premises in question. On May 22d, 1872, the landlord applied to the bankruptcy Court for a modification of the injunction, so as to allow of the execution of the warrant of disposses- sion. The application was denied. No application was made to the Court to order the removal of the goods from the premises, but the marshal was ap plied to to give up the premises, and also to pay rent, but he refused to do either. He remained in possession of the premises till December 13th, 1872. The landlord now applied to be paid rent of the premises at the rate of $7,500 for the whole period, stating that he had had an offer of that sum for the premises, for the unexpired term of the lease, and that the premises were worth that sum :
Held, That the landlord was not en- titled to claim rent at the rate of $7,500 for the period, but was entitled to a reasonable compensation for the use and occupation of the premises. Metz's Case,
See BANKRUPTCY, 18. MORTGAGE, 2.
The firm of M., B. & C. hired prem ises in New York city, at a rent of
1. The ship P. fell in with the brig M. about 175 miles from New York. The brig had lost her masts, but had rig- ged jury masts, and was making pro- gress towards New York, her destina- tion. The P. took her in tow and towed her till near Sandy Hook, when a tug took her to New York, where she arrived five days after she was taken in tow. Part of her chain hav- ing been left on board of the P., was demanded of her, but the master of the P. refused to give it up, saying they should hold it till the salvage was settled. The value of the brig, freight and cargo, was $18,500:
Held, That the service was not tow- age merely, but salvage; that $2,250 was a proper amount to be awarded, and that the libellants should not re- cover costs because of the refusal to deliver up the chain, such costs to be paid by the owners, unless the refusal was shown to have been without the knowledge of the owners, and, in that case, by the master. The Minnie Miller,
2. A brig, dismasted and in distress, was fallen in with at sea, by a pilot boat. The master of the brig had been hurt and was confined to his bed. Her owner was on board. The pilots boarded her and demanded $5,000, to tow her into port. This was refused, and they came down to $2,500, threat- ening to leave the brig if an agree- ment to pay that sum was not made. The master and owner thereupon agreed to pay them the $2,500, and the pilot boat took hold of the brig, and after nine days towing, brought her in safety into the port of New York. The brig and her cargo were worth $3,800.
Held, That, considering the value of the property, the agreement, under the circumstances, was an inequitable one, and would not be enforced;
That $1,500 was as liberal a reward as could be awarded to the salvors;
That costs would be awarded to them, because the claimants offered no particular sum before suit brought. The Wexford,
3. The brig A. came into collision with
Sandy Hook, at night, in a thick fog, when it was blowing hard. She re- ceived injuries, which led her master and crew to think she was about to sink, and they left her and got on board the other vessel. The next morning, about 7 A. M., the fog cleared off, and the master of the A. saw her about eleven miles off, but made no effort to return to her. The bark W. S., bound to New York, came to the A., and put on board of her a mate and one man, who got sail on her, and proceeded towards New York, taking a pilot about 10 A. M., and a tug about 11 A. M, which for the agreed sum of $600, towed the A. to New York, reaching the dock about 9 P. M. The A. was worth $3,500, her freight amounted to $1,500, and her cargo was worth $25,589, making in all $30,589. The master of the W. S. was sailing her under an agreement with her owners, to make this voyage on shares, he to navigate her, victual and man her, and pay half her port charges, and to receive half the earn- ings:
Held, That, whether this was strict- ly a case of derelict or not, it was the case of a vessel abandoned at sea, where no evidence was given of an intention on the part of her master to return to her, and the awards, which have been given in cases of derelict, might well be looked to, as affording some guide to the judgment;
That $6,000 was a proper sum to be awarded as salvage, from which should be deducted the $600 paid to the tug by the claimants;
That the master, by reason of the agreement between him and the own- ers, should receive $500 more than otherwise would have been his share, and that the award be apportioned as follows:
To the Master of the W. S.....$2,300 Owners 46 Mate "
another vessel, about 50 miles from 1. A libel was filed against a cargo of
coal on board of a canal-boat and against her master, to enforce a lien for seaman's wages, upon freight money alleged to be due from E. & M. on the cargo. It appeared that E. & M. had chartered the boat of her master for a specified rate, and that, before the commencement of the ac- tion, and without notice of the libel- lant's demand, they had paid to the master all the money due from them under the charter. It also appeared that the cargo was shipped by the C. S. Co. under an agreement with E. & M. for freight payable to E. & M., which was due and unpaid at the fil- ing of the libel:
Held, That it was not necessary to determine whether the libellant could maintain an action to charge the charter money payable by E. & M. with a lien for wages, as such charter money had been paid over to the mas- ter without notice before the com- mencement of the suit;
That the freight money due from the C. S. Co. to E. & M. could not be held, because the libellant had not in his libel sought to charge it;
That the libellant was entitled to a decree against the master. Conley v. The Freight of the G. C. Barras, 12
2. A vessel was run on a reef in a well- known channel, where there was plenty of room, and was lost. The master was a man of experience in the waters, and accounted for the occur- rence by his chronometer being wrong. The sailors brought suit against the owner of the vessel, to re- cover wages for the whole voyage, alleging that the voyage was broken up by fault of the owner:
Held, That, as it did not appear that the accident was the result of negligence, or incompetency of the master, or that, when the vessel sailed, the chronometer was not a proper one in good order, it could not be held that the voyage was broken up by fault, fraud or neglect of the owner. Hill v. Murray,
3. A seaman signed articles in New York, on board a British vessel, for a voyage to Dunkirk, at $40 a month. At the time, it was stated to him that the voyage would end in New York. On the arrival of the vessel at Dun- BT. VOL. VI.-39
A seaman, who had shipped in New York for a voyage to New Orleans and back, after the vessel had started on her return voyage from New Orleans fell from the yard and broke his arm. The owners of the steamer sent him at once to a hospital, paying his wages till the date of his leaving the ship, and afterwards brought him to New York, The seaman having filed a libel to recover wages for the rest of the voyage, and damages for the injury, the owners of the vessel paid the amount of the wages into Court, which the libellant drew out.
Held, that the 1:bellant was entitled to the wages for the rest of the voy- age, and as there was no proof or allegation of a tender of the amount, he was entitled to a decree for his costs. The Cortes, 288
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