In re Berry
District Court, S.D. New York
In Bankruptcy. On report of referee granting discharge. In this case objections were made to the discharge of the bankrupts, who were a firm of stockbrokers in the city of New York. It was found by the referee that they had pledged as security for loans to the firm, made by the Hanover National Bank and the Consolidated National Bank, certain stock certificates, which' were the property of their customers, who had not authorized the pledge.
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In Bankruptcy. On report of referee granting discharge. In this case objections were made to the discharge of the bankrupts, who were a firm of stockbrokers in the city of New York. It was found by the referee that they had pledged as security for loans to the firm, made by the Hanover National Bank and the Consolidated National Bank, certain stock certificates, which' were the property of their customers, who had not authorized the pledge. Of these certificates for 300 shares of Columbus & Hocking coal and iron stock had been sent to the firm for sale by a customer who had no account with…
1Opinion of the Court
HOLT, District Judge.
I think that the bankrupts should be granted their discharge in this case, but on somewhat different grounds from those .stated by the referee in his report. I think that the customers’ stock pledged was not the bankrupts’ property, and that its transfer was not with intent to hinder, delay, and defraud the bankrupts’ creditors, within the meaning of the provision of the bankrupt act relating to the grounds for opposing a bankrupt’s discharge. The stock was the customers’ property. If the bankrupts had what is called a special property in it, in the way of a lien upon it,…
2Cited by1 opinion
- Kolesinski v. MasheyCourt of Appeals for the Second Circuit · 1942