Drake v. Rollo
U.S. Circuit Court for the Northern District of Illnois
This was a bill to establish a set-off, filed by John B. Drake against William E. Itollo, assignee of the Merchants’ Insurance Company. On the 1st of June, 18G9, the complainant borrowed of the insurance company the sum of 875.000, one-third of which was payable June 1st, 1872, and the remainder June 1st, 1874, to secure which he gave his notes and mortgage on certain real estate in Chicago.
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This was a bill to establish a set-off, filed by John B. Drake against William E. Itollo, assignee of the Merchants’ Insurance Company. On the 1st of June, 18G9, the complainant borrowed of the insurance company the sum of 875.000, one-third of which was payable June 1st, 1872, and the remainder June 1st, 1874, to secure which he gave his notes and mortgage on certain real estate in Chicago. Subsequently he took several policies of insurance from the company, amounting to $17,000. upon which there was a total loss by the Chicago fire of October 9th, 1871. His claims under the policies were…
1Opinion of the Court
DRUMMOND, Circuit Judge.
The only question in the ease is, whether the set-off can be allowed; and we are of the opinion that the plaintiff is entitled to the set-off he claims. It depends upon the 20th section of the bankrupt law. That section is as follows: “That, in all cases of mutual debts or mutual credits between the parties, the account between them shall be stated, and one debt set off against the other, and the balance only shall be allowed or paid; but no set-off shall be allowed of a claim in its nature not provable against the estate: provided, that no set-off shall be allowed in…
2Cited by1 opinion
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