Schwartz v. Irving Trust Co.

The provability of certain landlords’ claims in proceedings under § 77B of the Bankruptcy Act is here drawn in question. The petitioners were lessors of the debtor. Their leases were rejected in a bankruptcy proceeding pending when the reorganization section was adopted. All of the leases contained indemnity covenants similar to that considered in Kuehner v. Irving Trust Co., ante, p. 445. The variant in the present case is the contention that prior to initiation of the 77B proceeding, the petitioners bargained away any valid claims they had against the debtor and its assets. **

In August…