In re Sheridan
District Court, E.D. Pennsylvania
In Bankruptcy. The referee in bankruptcy found that a pledge of personal property by the bankrupt to one of his creditors was an unlawful preference under the bankruptcy act, and made an order requiring the creditor, who had sold the goods pledged, to pay over the proceeds to the trustee in bankruptcy. The case is now before the court on the creditor’s exceptions to such decision of the referee.
1Opinion of the Court
McPHEBSON, District Judge.
The exceptant relies on Ex parte Potts, Fed. Cas. No. 11,344, but an examination of that case will show that the decision was upon a different state of facts. One question there was whether a pledge actually made was fraudulent; and it appeared that the alleged bankrupts, when they were admittedly solvent, had assigned to a creditor, as collateral security for advances, several policies of insurance and bills of lading upon a vessel and cargo then at sea. Under such circumstances, it was correctly held that the transfer was not in fraud of creditors. The assignment…
2Cited by16 opinions
- In re Great Western Mfg. Co.Court of Appeals for the Eighth Circuit · 1907
- Citizens State Bank v. First National BankSupreme Court of Kansas · 1916
- Hayes v. GibsonCourt of Appeals for the Third Circuit · 1922
- In re BaconCourt of Appeals for the Second Circuit · 1913
- Tilt v. Citizens' Trust Co.District Court, D. New Jersey · 1911
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