The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918. Page: 997
The following text was automatically extracted from the image on this page using optical character recognition software:
IN RE GRAFF
prior lien until after it was foreclosed. Long before that foreclosure
the trustee in that deed of trust was made a party defendant to a
suit for the foreclosure of the prior lien, which suit was dismissed
following the transfer of the note secured and the extension of the
time for payment of it by the transferee. It was not made to appear
that the prior lienholder was in any way responsible for the trustee's
failure to notify the creditor secured by the junior deed of trust of
the institution and pendency of the suit which constituted notice to
a defendant served with process in it of the existence of the prior lien.
There was a failure to prove a state of facts justifying the conclusion
that the title acquired by the prior lienholder under the foreclosure
proceedings was other than an indefeasible and absolute one, leaving
no right of redemption in a creditor secured by a junior lien. Carite
v. Trotot, 105 U. S. 751, 26 L. Ed. 1223.
It follows that the decree appealed from was erroneous. It is re-
versed, and the cause is remanded for further proceedings not incon-
sistent with this opinion.
In re GRAFF et al.
(Circuit Court of Appeals, Second Circuit. January 16, 1918.)
1. BANKRUPTCY 4=372-REOPENING PROCEEDING-DISCRETION OF COURT.
Under Bankruptcy Act July 1, 1808, c. 541, 2, subd. 8, 30 Stat. 545
(Comp. St. 1916, 9580), authorizing the court to reopen bankruptcy pro-
ceedings whenever it appears that they were closed before being fully
administered, a motion to reopen is addressed to the sound discretion
of the court.
2. BANKRUPTCY 0"372--REOPENING PROCEEDINGS---APPLICATION.
Under Bankruptcy Act, 2, subd. 8, an application to reopen proceedings
should be made by the creditors, as the result of a reopening is the elec-
tion of another trustee, a matter in which the creditors alone can act in
the first instance at any rate.
3. BANKRUPTCY e=372-REOPENING PROCEEDINGS-PETITION.
Proceedings upon petition to reopen need not be of a technical nature,
nor of any special formality; but there must be, not only a reasonable
prospect of unadministered assets, but also evidence that creditors or
other parties in interest, who would and should be benefited by its success.
are making the application.
4. BANKRUPTCY :44--PETITION TO REVIS---SCOPE.
Whether the trial court properly denied an application to reopen pro-
ceedings in bankruptcy is reviewable on petition to revise, which brings
up only matters of law; for, as the application is one addressed to the
sound discretion of the court, review by an appellate court is limited to
considering whether there was an abuse.
5. BANKRUPTCY 3 .72-REOPENING PROCEEDINGs-CREDITORS---EVIDENCE.
On application to reopen proceedings, evidence hel to warrant a find-
ing that petitioner's testator was not a creditor, and hence an application
was properly denied.
,For other cases see same topic & KEY-NUMBER in all Key-Numbered Digests & Indexes
Here’s what’s next.
This document can be searched. Note: Results may vary based on the legibility of text within the document.
Tools / Downloads
Get a copy of this page or view the extracted text.
Citing and Sharing
Basic information for referencing this web page. We also provide extended guidance on usage rights, references, copying or embedding.
Reference the current page of this Legislative Document.
The Federal Reporter with Key-Number Annotations, Volume 250: Cases Argued and Determined in the Circuit Courts of Appeals and District Courts of the United States, August-October, 1918., legislative document, 1918; Saint Paul, Minnesota. (digital.library.unt.edu/ark:/67531/metadc38821/m1/1012/: accessed April 25, 2018), University of North Texas Libraries, Digital Library, digital.library.unt.edu; crediting UNT Libraries Government Documents Department.